EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
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EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
(Senate - March 18, 1999)
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EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
The Senate continued with the consideration of the bill.
Mr. STEVENS. Mr. President, I ask unanimous consent that the matter
of the order governing the amendment of the Senator from Texas be set
aside so that I may offer an amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 80
(Purpose: To defer section 8 assistance for expiring contracts until
October 1, 1999)
Mr. STEVENS. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Alaska [Mr. Stevens] proposes an amendment
numbered 80.
Inset on page 43, after line 15:
``PUBLIC AND INDIAN HOUSING
``HOUSING CERTIFICATE FUND
``(DEFERRAL)
``Of the funds made available under this heading in Public
Law 105-276 for use in connection with expiring or
terminating section 8 contracts, $350,000,000 shall not
become available until October 1, 1999.''.
On page 42, strike beginning with line 10 through the end
of line 21.
Mr. STEVENS. Mr. President, this is an amendment that deals with the
provision in the bill that was reported from the committee that
deferred spending from the temporary assistance to needy families
account.
This will defer, instead, monies from the section 8 fund of HUD.
There is approximately $1.2 billion in that account. This will defer
for 1 year the use of $350 million in that account. It replaces the
TANF amendment in the bill. Under that amendment, we deferred until
2001 the availability of funds which are transferred to the States.
Because of the misunderstanding about that fund, I want to explain
why we use that fund in the first place. I am once again alarmed over
the misinformation that has been spread by some people in that entity,
that agency, to try and make it look like somehow or other we took
monies away from States or any specific State.
In the first place, these grant awards are made quarterly. Actual
cash outlays are made, but they are not transferred to the States until
the States make expenditures in their TANF programs, the Temporary
Assistance to Needy Families. In other words, the States first make the
payments, and we pay it back. Some people, in the House in particular,
have said this a way that the States can use this money for a piggy
bank. In no way can they take this money and put it into another bank
account and draw interest on it if they comply with the law. That is
one report I have heard--that we are preventing States from taking the
money to put it into their own accounts.
We checked and we found that there was between $3 billion and $3.5
billion at the close of fiscal year 1998 in this fund. There are two
quarters that have not even been distributed yet of this fiscal year
1999. And it is clear that the States have spent some money, and there
is plenty of money to meet the States' expenditures and their requests
for reimbursement of those expenditures. But this is not a fund that
the States can come to willy-nilly and transfer the funds to their
accounts.
Secondly, Mr. President, we deferred this money from obligation in
this fiscal year--really until 2001, October 1, 2001.
The States would not--the bill that was reported from the committee--
lose any of their funds. We, pursuant to the entitlement that was
authorized, agreed that Federal funds, taxpayers' funds, in the amount
of $16.5 billion, from 1997 through 2002, would be placed in this
account, to be available to reimburse States for the expenditures they
made for Assistance to Needy Families.
Nothing in what the Appropriations Committee did harmed that program
at all. But because by October 1 another $16.5 billion would have been
added to $3 billion to $3.5 billion in that account--and there has
never been a drawdown at the rate that would make those funds needed
within that period of time.
This is not a rainy day fund. We have been told that some people have
said that States take these monies and put them in a rainy day fund to
use at a later date. But the law says they can only get them to
reimburse expenditures. If the administration is allowing this fund to
be used as a rainy day account or a piggy bank account, it is wrong.
We have had so many calls from so many States, including my own. And
I see the Senator from New York is here, and I know that they have been
besieged because of their population base. Of course, they are eligible
for more money from this account, more than anyone other than
California. But it depends on how much they spend before they can get
it back.
We made the decision to offset this bill. This is the first time we
have offset totally a supplemental emergency bill. I have said to our
committee, we ought to offset emergency funds with prior appropriated
emergency funds and nonemergency funds with nonemergency prior
appropriated funds. I think we are going to have a little discussion
about that here on the floor.
But clearly what we have done, Mr. President, is we have used this
bill to reprogram prior appropriated funds. These funds that were
appropriated to the TANF account are sitting there waiting for the
States to spend money and then come and ask for it to be repaid. The
process is so rapid that the administration has not paid the first two
quarters of this year yet. So this is not something we have interfered
with by deferring money until the second fiscal year. Because, as I
said, this account would get $16.5 billion credited to it on October 1.
What we have done is, in order to avoid this controversy--and we do
not need a controversy on this bill. We need to get it done. This bill,
in my opinion, is a very important bill. It will provide money for
assistance because of a great natural disaster in a neighboring country
in this hemisphere. The President asked us to declare that an
emergency. We have taken the declaration of emergency through as far as
the outlay categories are concerned, because it is very difficult to
score under the budget process outlays that come from emergency
accounts.
We have not taken an emergency declaration through on those things
that we believe are nonemergency in terms of the authorization process.
So by that I mean, I fail to understand how we should extend the
concept of emergency appropriations to natural disasters off our
shores. We should be able to find the money, if we want to be good
humanitarian members of this hemisphere, to assist our neighbors.
I believe we should assist them. But I do not believe we should use
the laws that were intended to demand taxpayers' funds immediately to
meet natural disasters or declared emergencies by the President of the
United States within the boundaries of our United States.
So Mr. President, I offer this amendment in the spirit of compromise,
to try and take away this battle that I saw coming over the use of TANF
funds. No one supports the concepts of this Temporary Assistance to
Needy Families. We all know it replaced the old Aid to Families with
Dependent Children, the AFDC program, that assisted so many States,
including mine for so many years.
But this now is a block grant program that works in conjunction with
the welfare-to-work concepts, and that is very vital for the States. We
know that. And I think the fear that was engendered in those States
that somehow or other we might not keep the commitment that was made,
that if they make those expenditures we would repay them according to
the formula under the law that was passed in 1996, the Welfare Reform
Act, is unfortunate and wrong.
I hope that someone in the administration is listening. One of these
days I will find some way to tweak the nose of the people who keep
doing this, because they did it in the terms of border guards last
week, and now they are doing it in terms of the States themselves in
terms of the comments that have been made that somehow or other we were
taking money that the States were entitled to; we were deferring money
that they were entitled to,
[[Page
S2899]]
which they would never get under the process of the law anyway until
the time we deferred the expenditures.
As a matter of fact, some people on this side of the aisle have
argued with me to say this is not a full offset because I know that I
am offsetting the expenditures under this bill against a fund that
would never be expended this year. That is partially true. That is why
we have declared an emergency, as far as the outlays, and we have
admitted that, and we have said that is the only way we can do it. But
we need to do it. I hope, in particular, my new friend from New York
will understand that we are doing this to meet his objections and
others, and we do so in the spirit of compromise.
Thank you, Mr. President.
Mr. SCHUMER addressed the Chair.
The PRESIDING OFFICER. The Senator from New York.
Mr. SCHUMER. Thank you, Mr. President.
First, I want to, on behalf of Senator Moynihan and myself, thank
Chairman Stevens, as well as Senator Byrd, for their assistance in
removing the $350 million offset from the TANF, Temporary Assistance
for Needy Families, account, which would have deferred the funds until
2002.
Mr. President, I and many others in New York feared that this offset
set us off on the wrong course, that it would run counter to the
intention of the welfare reform bill which allowed States to set aside
TANF funds for use at a later date when welfare rolls would rise, such
as during a future recession.
My State, as the chairman knows, was particularly affected. The State
was the source of nearly a quarter, about $80 million, of the $350
million that was offset. So I am pleased that the alternative offset
would shift some HUD funds from one fiscal year to the next, funds that
never would have been used. We have checked with both the
administration as well as our side on Housing and on Banking and on
Appropriations, and they agree with that.
I say to the chairman that I appreciate very much the spirit of
compromise in which this was offered. I understand his view and I will
bring that message back to our State. The people of New York will now
be breathing a sigh of relief that this has been replaced.
I also thank the Senator from Pennsylvania, Mr. Santorum, who worked
with me on this. He found his State in a similar position as ours. At
least for my first foray into the Senate legislative process, it has
been a bipartisan and productive effort. For that, I very much thank
the chairman for his understanding of our needs and yield back the
remainder of my time.
Mr. STEVENS. Mr. President, I am going to ask for adoption of the
amendment but I will not move to reconsider because there may be some
who want to discuss this, too. I will make a motion to reconsider this
later today. May I reserve the right to make that later today?
The PRESIDING OFFICER. That motion can be made today or any of the
next 2 following days.
Mr. STEVENS. I shall make it this afternoon, and I ask for the
adoption of the amendment.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 80) was agreed to.
Amendment No. 81
(Purpose: To set forth restrictions on deployment of United States
Armed Forces in Kosovo)
Mrs. HUTCHISON. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Texas [Mrs. Hutchison] proposes an
amendment numbered 81.
Mr. STEVENS. Mr. President, I ask unanimous consent reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 58, between lines 15 and 16, insert the following:
TITLE ____ RESTRICTIONS ON DEPLOYMENT OF UNITED STATES ARMED FORCES IN
KOSOVO
SEC. ____01. SHORT TITLE.
This title may be cited as the ``____________ Act of
1999''.
SEC. ____02. DEFINITION.
In this title, the term ``Yugoslavia'' means the so-called
Federal Republic of Yugoslavia (Serbia and Montenegro).
SEC. ____03. FUNDING LIMITATION.
(a) Limitation.--None of the funds appropriated or
otherwise made available to the Department of Defense,
including funds appropriated for fiscal year 1999 and prior
fiscal years, may be obligated or expended for any deployment
of ground forces of the Armed Forces of the United States to
Kosovo unless and until--
(1) the parties to the conflict in Kosovo have signed an
agreement for the establishment of peace in Kosovo;
(2) the President has transmitted to Congress the report
provided for under section 8115 of Public Law 105-262 (112
Stat. 2327); and
(3) the President has transmitted to the Speaker of the
House of Representatives and the President pro tempore of the
Senate a report containing--
(A) a certification--
(i) that deployment of the Armed Forces of the United
States to Kosovo is in the national security interests of the
United States;
(ii) that--
(I) the President will submit to Congress an amended budget
for the Department of Defense for fiscal year 2000 not later
than 60 days after the commencement of the deployment of the
Armed Forces of the United States to Kosovo that includes an
amount sufficient for such deployment; and
(II) such amended budget will provide for an increase in
the total amount for the major functional budget category 050
(relating to National Defense) for fiscal year 2000 by at
least the total amount proposed for the deployment of the
Armed Forces of the United States to Kosovo (as compared to
the amount provided for fiscal year 2000 for major functional
budget category 050 (relating to National Defense) in the
budget that the President submitted to Congress February 1,
1999); and
(iii) that--
(I) not later than 120 days after the commencement of the
deployment of the Armed Forces of the United States to
Kosovo, forces of the Armed Forces of the United States will
be withdrawn from on-going military operations in locations
where maintaining the current level of the Armed Forces of
the United States (as of the date of certification) is no
longer considered vital to the national security interests of
the United States; and
(II) each such withdrawal will be undertaken only after
consultation with the Majority Leader of the Senate, the
Minority Leader of the Senate, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives;
(B) an explanation of the reasons why the deployment of the
Armed Forces of the United States to Kosovo is in the
national security interests of the United States;
(C) the total number of the United States military
personnel that are to be deployed in Kosovo and the number of
personnel to be committed to the direct support of the
international peacekeeping operation in Kosovo, including
ground troops, air support, logistics support, and
intelligence support;
(D) the percentage that the total number of personnel of
the United States Armed Forces specified in subparagraph (C)
bears to the total number of the military personnel of all
NATO nations participating in the international peacekeeping
operation in Kosovo;
(E) a description of the responsibilities of the United
States military force participating in the international
peacekeeping operation to enforce any provision of the Kosovo
peace agreement; and
(F) a clear identification of the benchmarks for the
withdrawal of the Armed Forces of the United States from
Kosovo, together with a description of those benchmarks and
the estimated dates by which those benchmarks can and will be
achieved.
(b) Consultation.--
(1) In general.--Prior to the conduct of any air operations
by the Armed Forces of the United States against Yugoslavia,
the President shall consult with the joint congressional
leadership and the chairmen and ranking minority members of
the appropriate congressional committees with respect to
those operations.
(2) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Appropriations, the Committee on Armed
Services, the Committee on International Relations, and the
Permanent Select Committee on Intelligence of the House of
Representatives; and
(ii) the Committee on Appropriations, the Committee on
Armed Services, the Committee on Foreign Relations, and the
Select Committee on Intelligence of the Senate.
(B) Joint congressional leadership.--The term ``joint
congressional leadership'' means--
(i) the Speaker of the House of Representatives and the
Majority Leader and the Minority Leader of the House of
Representatives; and
(ii) the Majority Leader and the Minority Leader of the
Senate.
SEC. ____04. REPORT ON PROGRESS TOWARD MEETING BENCHMARKS.
Thirty days after the date of enactment of this Act, and
every 60 days thereafter, the President shall submit to
Congress a detailed report on the benchmarks that are
established to measure progress and determine the withdrawal
of the Armed Forces of the United States from Kosovo. Each
report shall include--
[[Page
S2900]]
(1) a detailed description of the benchmarks for the
withdrawal of the Armed Forces from Kosovo;
(2) the objective criteria for evaluating successful
achievement of the benchmarks;
(3) an analysis of the progress made in achieving the
benchmarks;
(4) a comparison of the current status on achieving the
benchmarks with the progress described in the last report
submitted under this section;
(5) the specific responsibilities assigned to the
implementation force in assisting in the achievement of the
benchmarks;
(6) the estimated timetable for achieving the benchmarks;
and
(7) the status of plans and preparations for withdrawal of
the implementing force once the objective criteria for
achieving the benchmarks have been met.
SEC. ____05. STATUTORY CONSTRUCTION.
Nothing in this title restricts the authority of the
President to protect the lives of United States citizens.
Mr. STEVENS. Mr. President, I ask unanimous consent the amendment now
be laid aside and no call for regular order, except one made by myself
or the mover of the amendment, the Senator from Texas, serve to bring
back the pending amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. STEVENS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendments Nos. 82 Through 88, En Bloc
Mr. STEVENS. Mr. President, I have a package of amendments that have
been cleared and I would like to say for the record what they are. They
are:
An amendment by Senator McCain to extend the Aviation Insurance
Program through May 31, 1999.
An amendment by Senator Grassley providing $1.4 million to expedite
adjudication of civil monetary penalties by the Health and Human
Services Appeal Board. It also provides for an offset for that amount
of $1.4 million.
We have Senator Shelby's amendment which makes a technical correction
to title IV.
We have an amendment by Senator Byrd making a technical correction to
the Emergency Steel Loan Guarantee Program in the bill.
An amendment by Senator Frist and Senator Thompson providing $3.2
million for repairs to Jackson, TN, Army aviation facility damaged by a
tornado in January. It also provides for an offset in the same amount.
An amendment by myself for a technical correction to the current
year, 1999's Commerce-Justice-State bill, and provides for rules on the
taking of Beluga whales.
I send these amendments to the desk and ask unanimous consent that
they be considered en bloc.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report.
The bill clerk read as follows:
The Senator from Alaska [Mr. Stevens], for himself, Mr.
McCain, Mr. Grassley, Mr. Shelby, Mr. Byrd, Mr. Frist and Mr.
Thompson, proposes amendments numbered 82 through 88, en
bloc, as follows:
AMENDMENT NO. 82
(Purpose: To extend the aviation insurance program through May 31,
1999)
At the appropriate place, insert the following:
SEC. 17. EXTENSION OF AVIATION INSURANCE PROGRAM.
Section 44310 of title 49, United States Code, is amended
by striking ``March 31, 1999.'' and inserting ``May 31,
1999.''.
____
AMENDMENT NO. 83
(Purpose: Expediting adjudication of civil monetary penalties by the
Department of Health and Human Services Appeals Board)
On page 29, insert after line 10:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office of the Secretary
General Departmental Management
For an additional amount for `'general departmental
management'', $1,400,000, to reduce the backlog of pending
nursing home appeals before the Departmental Appeals Board.
On page 42, line 8, strike $3,116,076,000 and insert
$3,114,676,000
On page 42, line 9, strike $164,933,000 and insert
$163,533,000.
Mr. GRASSLEY. Mr. President, I am offering this amendment to speed up
adjudication, by the appeals board of the Department of Health and
Human Services, of appeals from nursing facilities of civil monetary
penalties levied by the Health Care Financing Administration (HCFA) for
violations of standards established pursuant to the Nursing Home Reform
Act of 1987. Currently, there is a substantial backlog of some 701 such
cases. Delay in final adjudication of such cases subverts the purpose
and effect of civil monetary penalties, delaying corrective action, and
improvements in the quality of care offered by nursing facilities.
Delays in adjudication of these cases also burdens nursing facilities
through additional legal fees and the perpetuation of uncertainty
caused by unresolved disputes.
The number of such cases filed each year by nursing facilities has
increased each year since 1995, the year when regulations for the
Nursing Home Reform Act's enforcement standards went into effect.
Currently, as I noted earlier in my statement, there are 701 such cases
pending.
Mr. President, the steady increase in appeals of civil monetary
penalties since 1995 shows the effect of increased use, by the States
and HCFA, of the enforcement regulations which went into effect in
1995. Nevertheless, in hearings I held in the Special Committee on
Aging last July, the General Accounting Office reported that nursing
facilities providing poor quality of care regularly escaped sanctions
which could cause care to be improved. The pattern seemed to be that a
facility would be sanctioned for poor quality of care, be required to
attest in writing through a plan of correction that steps had been
taken to improve care, and then be found deficient on the next visit
from State officials. This pattern often continued for long periods of
time. And when sanctions such as civil monetary penalties were levied
by HCFA, the sanctioned facilities would appeal, causing lengthy delays
in final resolution of the case.
One week before my July hearings, President Clinton launched a
variety of new initiatives designed to improve the quality of care in
nursing facilities. Among those new initiatives was one designed to
eliminate paper compliance with quality standards and to proceed more
quickly to sanctions for those homes with a history of poor care.
The upshot of oversight by the Special Committee on Aging and the
Presidential initiatives is that there has been a substantial increase
thus far in 1999 of appeals of civil monetary penalties by nursing
facilities.
Certainly, facilities have the right to appeal sanctions levied by
HCFA. But it is also important that appeals be heard and resolved in a
reasonable amount of time. Delay subverts improvement in the quality of
care in nursing facilities as real deficiencies go uncorrected. Delay
also slows the development of precedents which would clarify
outstanding issues. Slow development of such precedents encourages
facilities and their legal representatives to file appeals because
guidance as to the worthiness of an appeal is lacking. And, as the body
of precedents becomes more complete, adjudication of cases becomes
speedier.
The root problem has been that the departmental appeals board does
not have sufficient resources to keep up with the increase in new
cases, to say nothing of working off the current backlog of cases. I am
given to understand that, at the present time about 25 new cases are
filed with the appeals board each week. As will be clear from the table
I am attaching to my statement, the number of cases decided each year
has averaged around 23 for the last 3 years. Clearly, the board is
swamped and needs help.
The President's budget for fiscal year 2000 proposes $2.8 million for
the board. Were the Congress to provide those funds, it will certainly
take time for the appeals board to gear up and begin to speed up
adjudication of appeals.We can't wait to begin addressing this problem,
Mr. President. The amendment I offer would provide $1.4 million to be
made available through the supplemental appropriation we are now
considering. I have not proposed to provide the full $2.8 million the
President's budget proposes for the next fiscal year because the
appeals board could not effectively spend that amount in what remains
of the fiscal year. Therefore, I have essentially prorated that amount
over the time remaining in this fiscal year.
amendment no. 84
At the appropriate place in the bill, insert:
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S2901]]
Sec. . Title 49 Recodification Correction.--Effective
December 31, 1998, section 4(k) of the Act of July 5, 1994
(Public Law 103-272, 108 Stat. 1370), as amended by section
7(a)(3)(D) of the Act of October 31, 1994 (Public Law 103-
429, 108 Stat. 4329), is repealed.
amendment no. 85
(Purpose: To make a technical correction)
On page 16, strike beginning with line 12 through page 23,
line 8, and insert the following:
Emergency Steel Loan Guarantee Program. (a) Short Title.--
This section may be cited as the ``Emergency Steel Loan
Guarantee Act of 1999''.
(b) Congressional Findings.--Congress finds that--
(1) the United States steel industry has been severely
harmed by a record surge of more than 40,000,000 tons of
steel imports into the United States in 1998, caused by the
world financial crisis;
(2) this surge in imports resulted in the loss of more than
10,000 steel worker jobs in 1998, and was the imminent cause
of 3 bankruptcies by medium-sized steel companies, Acme
Steel, Laclede Steel, and Geneva Steel;
(3) the crisis also forced almost all United States steel
companies into--
(A) reduced volume, lower prices, and financial losses; and
(B) an inability to obtain credit for continued operations
and reinvestment in facilities;
(4) the crisis also has affected the willingness of private
banks and investment institutions to make loans to the U.S.
steel industry for continued operation and reinvestment in
facilities;
(5) these steel bankruptcies, job losses, and financial
losses are also having serious negative effects on the tax
base of cities, counties, and States, and on the essential
health, education, and municipal services that these
government entities provide to their citizens; and
(6) a strong steel industry is necessary to the adequate
defense preparedness of the United States in order to have
sufficient steel available to build the ships, tanks, planes,
and armaments necessary for the national defense.
(c) Definitions.--For purposes of this section--
(1) the term ``Board'' means the Loan Guarantee Board
established under subsection (e);
(2) the term ``Program'' means the Emergency Steel
Guaranteed Loan Program established under subsection (d); and
(3) the term ``qualified steel company'' means any company
that--
(A) is incorporated under the laws of any State;
(B) is engaged in the production and manufacture of a
product defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and billets,
plates, flat-rolled steel, sections and structural products,
bars, rail type products, pipe and tube, and wire rod; and
(C) has experienced layoffs, production losses, or
financial losses since the beginning of the steel import
crisis, after January 1, 1998.
(d) Establishment of Emergency Steel Guaranteed Loan
Program.--There is established the Emergency Steel Guaranteed
Loan Program, to be administered by the Board, the purpose of
which is to provide loan guarantees to qualified steel
companies in accordance with this section.
(e) Loan Guarantee Board Membership.--There is established
a Loan Guarantee Board, which shall be composed of--
(1) the Secretary of Commerce, who shall serve as Chairman
of the Board;
(2) the Secretary of Labor; and
(3) the Secretary of the Treasury.
(f) Loan Guarantee Program.--
(1) Authority.--The Program may guarantee loans provided to
qualified steel companies by private banking and investment
institutions in accordance with the procedures, rules, and
regulations established by the Board.
(2) Total guarantee limit.--The aggregate amount of loans
guaranteed and outstanding at any 1 time under this section
may not exceed $1,000,000,000.
(3) Individual guarantee limit.--The aggregate amount of
loans guaranteed under this section with respect to a single
qualified steel company may not exceed $250,000,000.
(4) Minimum guarantee amount.--No single loan in an amount
that is less than $25,000,000 may be guaranteed under this
section.
(5) Timelines.--The Board shall approve or deny each
application for a guarantee under this section as soon as
possible after receipt of such application.
(6) Additional costs.--For the additional cost of the loans
guaranteed under this subsection, including the costs of
modifying the loans as defined in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a), there is
appropriated $140,000,000 to remain available until expended.
(g) Requirements for Loan Guarantees.--A loan guarantee may
be issued under this section upon application to the Board by
a qualified steel company pursuant to an agreement to provide
a loan to that qualified steel company by a private bank or
investment company, if the Board determines that--
(1) credit is not otherwise available to that company under
reasonable terms or conditions sufficient to meet its
financing needs, as reflected in the financial and business
plans of that company;
(2) the prospective earning power of that company, together
with the character and value of the security pledged, furnish
reasonable assurance of repayment of the loan to be
guaranteed in accordance with its terms;
(3) the loan to be guaranteed bears interest at a rate
determined by the Board to be reasonable, taking into account
the current average yield on outstanding obligations of the
United States with remaining periods of maturity comparable
to the maturity of such loan; and
(4) the company has agreed to an audit by the General
Accounting Office, prior to the issuance of the loan
guarantee and annually while any such guaranteed loan is
outstanding.
(h) Terms and Conditions of Loan Guarantees.--
(1) Loan duration.--All loans guaranteed under this section
shall be payable in full not later than December 31, 2005,
and the terms and conditions of each such loan shall provide
that the loan may not be amended, or any provision thereof
waived, without the consent of the Board.
(2) Loan security.--Any commitment to issue a loan
guarantee under this section shall contain such affirmative
and negative covenants and other protective provisions that
the Board determines are appropriate. The Board shall require
security for the loans to be guaranteed under this section at
the time at which the commitment is made.
(3) Fees.--A qualified steel company receiving a guarantee
under this section shall pay a fee in an amount equal to 0.5
percent of the outstanding principal balance of the
guaranteed loan to the Department of the Treasury.
(i) Reports to Congress.--The Secretary of Commerce shall
submit to Congress annually, a full report of the activities
of the Board under this section during fiscal years 1999 and
2000, and annually thereafter, during such period as any loan
guaranteed under this section is outstanding.
(j) Salaries and Administrative Expenses.--For necessary
expenses to administer the Program, $5,000,000 is
appropriated to the Department of Commerce, to remain
available until expended, which may be transferred to the
Office of the Assistant Secretary for Trade Development of
the International Trade Administration.
(k) Termination of Guarantee Authority.--The authority of
the Board to make commitments to guarantee any loan under
this section shall terminate on December 31, 2001.
(l) Regulatory Action.--The Board shall issue such final
procedures, rules, and regulations as may be necessary to
carry out this section not later than 60 days after the date
of enactment of this Act.
(m) Emergency Designation.--The entire amount made
available to carry out this section--
(1) is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(A)); and
(2) shall be available only to the extent that an official
budget request that includes designation of the entire amount
of the request as an emergency requirement (as defined in the
Balanced Budget and Emergency Deficit Control Act of 1985) is
transmitted by the President to Congress.
AMENDMENT NO. 86
(Purpose: To increase, with a rescission, the supplemental
appropriations for fiscal year 1999 for military construction for the
Army National Guard)
On page 30, line 1, strike ``$11,300,000'' and insert
``$14,500,000''.
On page 43, line 12, strike ``$11,300,000'' and insert
``$14,500,000''.
amendment no. 87
At the appropriate place in the bill, insert:
Sec. . Notwithstanding any other provision of law, the
taking of a Cook Inlet beluga whale under the exemption
provided in section 101(b) of the Marine Mammal Protection
Act (16 U.S.C. 1371(a)) between the date of the enactment of
this Act and October 1, 2000 shall be considered a violation
of such Act unless such taking occurs pursuant to a
cooperative agreement between the National Marine Fisheries
Service and Cook Inlet Marine Mammal Commission.
amendment no. 88
At the appropriate place in the bill, insert:
Sec. . Funds provided in the Department of Commerce,
Justice and State, the Judiciary, and Related Agencies
Appropriations Act, 1999 (P.L. 105-277, Division A, Section
101(b)) for the construction of correctional facility in
Barrow, Alaska shall be made available to the North Slope
Borough.
The PRESIDING OFFICER. Without objection, the amendments are agreed
to en bloc.
The amendments (Nos. 82 through 88) were agreed to.
Mr. STEVENS. Mr. President, the Senator from Arkansas, Mr.
Hutchinson, is here and he will offer an amendment. After he has
presented his amendment, I state to the Senator it will be my intention
to move to table his amendment.
I ask unanimous consent that the vote on that motion to table and the
vote on the motion to table the Harkin amendment occur at 2:30.
[[Page
S2902]]
Mr. HARKIN. Torricelli.
Mr. STEVENS. Torricelli/Harkin amendment occur at 2:30.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I thank the Chair.
Mr. HUTCHINSON addressed the Chair.
The PRESIDING OFFICER. The Senator from Arkansas.
Amendment No. 89
(Purpose: To require prior congressional approval before the United
States supports the admission of the People's Republic of China into
the World Trade Organization)
Mr. HUTCHINSON. I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
The Senator from Arkansas [Mr. Hutchinson] proposes an
amendment numbered 89.
Mr. HUTCHINSON. Mr. President, I ask unanimous consent that reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the appropriate place, insert the following new section:
SEC. ____. PRIOR CONGRESSIONAL APPROVAL FOR SUPPORTING
ADMISSION OF CHINA INTO THE WTO.
(a) In General.--Notwithstanding any other provision of
law, the United States may not support the admission of the
People's Republic of China as a member of the World Trade
Organization unless a provision of law is passed by both
Houses of Congress and enacted into law after the enactment
of this Act that specifically allows the United States to
support such admission.
(b) Procedures for Congressional Approval of United States
Support for Admission of China Into the WTO.--
(1) Notification of congress.--The President shall notify
the Congress in writing if the President determines that the
United States should support the admission of the People's
Republic of China into the World Trade Organization.
(2) Support of china's admission into the wto.--The United
States may support the admission of the People's Republic of
China into the World Trade Organization if a joint resolution
is enacted into law under subsection (c) and the Congress
adopts and transmits the joint resolution to the President
before the end of the 90-day period (excluding any day
described in section 154(b) of the Trade Act of 1974),
beginning on the date on which the Congress receives the
notification referred to in paragraph (1).
(c) Joint Resolution.--
(1) Joint resolution.--For purposes of this section, the
term ``joint resolution'' means only a joint resolution of
the 2 Houses of Congress, the matter after the resolving
clause of which is as follows: ``That the Congress approves
the support of the United States for the admission of the
People's Republic of China into the World Trade
Organization.''.
(2) Procedures.--
(A) In general.--A joint resolution may be introduced at
any time on or after the date on which the Congress receives
the notification referred to in subsection (b)(1), and before
the end of the 90-day period referred to in subsection
(b)(2). A joint resolution may be introduced in either House
of the Congress by any member of such House.
(B) Application of section 152.--Subject to the provisions
of this subsection, the provisions of subsections (b), (d),
(e), and (f) of section 152 of the Trade Act of 1974 (19
U.S.C. 2192(b), (d), (e), and (f)) apply to a joint
resolution under this section to the same extent as such
provisions apply to resolutions under section 152.
(C) Discharge of committee.--If the committee of either
House to which a joint resolution has been referred has not
reported it by the close of the 45th day after its
introduction (excluding any day described in section 154(b)
of the Trade Act of 1974), such committee shall be
automatically discharged from further consideration of the
joint resolution and it shall be placed on the appropriate
calendar.
(D) Consideration by appropriate committee.--It is not in
order for--
(i) the Senate to consider any joint resolution unless it
has been reported by the Committee on Finance or the
committee has been discharged under subparagraph (C); or
(ii) the House of Representatives to consider any joint
resolution unless it has been reported by the Committee on
Ways and Means or the committee has been discharged under
subparagraph (C).
(E) Consideration in the house.--A motion in the House of
Representatives to proceed to the consideration of a joint
resolution may only be made on the second legislative day
after the calendar day on which the Member making the motion
announces to the House his or her intention to do so.
(3) Consideration of second resolution not in order.--It
shall not be in order in either the House of Representatives
or the Senate to consider a joint resolution (other than a
joint resolution received from the other House), if that
House has previously adopted a joint resolution under this
section.
Mr. HARKIN. Mr. President, parliamentary inquiry, if I might.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. HARKIN. I am just trying to find out from the Senator, is there a
time allotment or not?
Mr. STEVENS. When the Senator finishes, I will make a motion to
table. It should be about 1 o'clock.
Mr. HARKIN. I just didn't know----
Mr. STEVENS. Mr. President, we have not asked for a time limitation
on the Senator making his presentation, but he knows that as soon as he
finishes, I will make a motion to table.
Mr. HARKIN. The Senator is going to table both at 2:30?
Mr. STEVENS. Mr. President, I will make a motion to table the
amendment of the Senator from Arkansas, and after the Senator from
Iowa, I will make a motion, but I got unanimous consent that those
votes occur at 2:30.
Mr. HARKIN. That is fine with me. I just wanted to make sure.
Mr. BAUCUS. Mr. President, who has the floor?
Mr. STEVENS. The Senator from Arkansas has the floor.
The PRESIDING OFFICER. The Senator from Arkansas has the floor.
Mr. BAUCUS. Mr. President, will the Senator yield for a question--for
a parliamentary inquiry?
Mr. HUTCHINSON. I will be glad to yield.
Mr. BAUCUS. I understand the distinguished Senator from Alaska is
saying he is going to move to table. I would like to speak on the
amendment, but the Senator is moving to table as soon as the Senator is
finished.
Mr. STEVENS. Mr. President, I would be pleased if the Senator would
agree to try to reach a time agreement on that, because we have other
Senators wishing to offer amendments this afternoon also.
Mr. President, may I ask the Senator, first, that the Senator yield
to me? I apologize.
Mr. HUTCHINSON. I will be glad to yield to the distinguished
chairman.
Mr. STEVENS. How much time would the Senator like to have?
Mr. HUTCHINSON. I think for my presentation I probably only need 15
minutes. If there are those who speak against the amendment, I would
like to yield proportionally then.
Mr. STEVENS. Mr. President, if I still have the floor, how much time
does the Senator from Montana seek?
Mr. BAUCUS. I was thinking of 10, 15 minutes.
Mr. STEVENS. Could we have an agreement that there be 30 minutes on
this amendment? Is the Senator from Montana speaking against the
amendment?
Mr. BAUCUS. I am speaking against the amendment.
The PRESIDING OFFICER. Is there objection?
Mr. BAUCUS. Mr. President, reserving the right to object----
Mr. STEVENS. I am seeking a limitation of 30 minutes on the
amendment, that the time following that time to be--I will make a
motion to table, only a motion to table be in order.
The PRESIDING OFFICER. Is there objection? Without objection----
Mr. STEVENS. Mr. President, I am informed that Senators Roth and
Moynihan wish to speak, and I ask unanimous consent that the time be
expanded to 40 minutes to be followed only by a motion to table offered
by me.
Mr. HUTCHINSON. Reserving the right to object.
Mr. STEVENS. Forty-five minutes. The Senator wants to close.
Mr. HUTCHINSON. I suspect the others the Senator mentioned are going
to speak in opposition. There are some who might want to speak in
favor. If we are going to extend the time afforded Senators who want to
speak against, I think we might have trouble extending the time with
that restriction.
Mr. STEVENS. Mr. President, I do desire to limit the time if
possible, so we can have a vote when the Senate comes back out of that
conference.
Could we agree to 30 minutes on a side? Is there objection to 30
minutes on a side? I renew my request----
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. The agreement then is 1 hour equally divided?
The PRESIDING OFFICER. That is correct.
Mr. STEVENS. I thank the Chair.
[[Page
S2903]]
The PRESIDING OFFICER. The Senator from Arkansas.
Mr. HUTCHINSON. I thank the Chair.
This is a very straightforward amendment that simply says that before
China can be admitted to the World Trade Organization, there will have
to be a joint resolution passed by the Congress supporting that
accession of China to the World Trade Organization.
It is very simple. It is simply saying we should have a voice in
this. We should not have the administration arbitrarily and
unilaterally making a very, very significant and major decision without
the input of the U.S. Congress and this body. It does not prejudge what
should happen. It does not say whether China should be in or not. There
may be very compelling arguments that could be presented in such a
debate. But it does say that before China is admitted to the World
Trade Organization, every Senator in this body ought to have an
opportunity to look at the evidence and have a say in the outcome of
that debate. That is why we need this amendment, because Congress needs
to, once again, assert its constitutional responsibility in the area of
foreign commerce.
I believe we must do it now for a couple of reasons. It is the only
opportunity we are going to have before the recess, and our only
opportunity before Zhu Rongji visits this Nation next month. He will
come during our Easter recess. So, if Congress is going to have any
kind of statement on this, if we are going to be able to take any kind
of action on this, we must take it now.
I know some of my colleagues will say this should have gone through
committee. In an ideal world I would agree. It is very straightforward.
I do not think it would require a great deal of debate, as to whether
someone is for it or against it, but ideally that is where it should
have gone. But, once again, the stream of negotiations that have taken
place in recent weeks between our country and the Chinese Government,
with our officials going to China--Deputy Treasury Secretary Larry
Summers, Secretary of State Albright, U.S. Trade Representative
Charlene Barshefsky have all been making repeated trips to China--
negotiating, obviously; attempting to broker a deal on the World Trade
Organization accession of China.
If we wait for an announcement by the administration that a deal has
been reached, an announcement by the administration that the outlines
of an agreement have been reached, we will make China's membership in
the WTO a fait accompli. Any effort to stop it after the fact, after
the negotiations are completed and after an agreement has been
announced, I think will be too late for this body to really make a
difference.
The amendment is, as I said, very straightforward. It would require a
joint resolution to be passed before the United States could support
admission of China into the WTO. Again, it does not preclude our
support for China's entry. It simply sends a clear statement that
Congress should be involved in the process of deciding U.S. support for
China's accession into the WTO. The administration should not make any
hasty deals with China. We must give careful consideration to the
timing as well as to the consequences of Chinese accession. Congress
must be thoroughly involved in that debate.
We cannot negotiate a trade deal with the most populous nation in the
world, and, as we hear so often, the largest market in the world, in a
vacuum. There are certain facts that we must face; there is a political
environment in which all of these negotiations are occurring. The
Chinese have used espionage to obtain important nuclear secrets from
the United States. That is a matter that must be fully investigated. I
believe it will be. I believe the appropriate oversight committees are
moving expeditiously to investigate. But it certainly is not going to
happen before we go out on the Easter recess. We may have hearings next
week, but we will not see the end of this, we will not have all the
facts on the table, before the Easter recess and before Zhu Rongji
visits this country.
Another fact that faces us is our trade deficit with the Chinese is
at an alarming all-time high of $56.9 billion for 1998. It is rising
exponentially every year. That reality ought to cause us to pause
before we see the administration rush into a WTO deal. The Chinese
continue to keep many of their markets closed, particularly to our
agricultural sector, our farmers, who are in such crisis.
The Chinese have signed and blatantly disregarded the International
Covenant on Civil and Political Rights and have engaged in a widespread
crackdown on prodemocracy activists in China, effectively silencing all
political dissent. We cannot give WTO membership in a vacuum, ignoring
all other realities that face us. The 1999 State Department report on
China, released in the last few weeks, demonstrably proves China's
ignoring of the very covenant on civil and political rights that they
signed last year. If we cannot trust them to live up to a human rights
covenant that they signed, how can we assume they are going to live
according to the rules and the obligations of the World Trade
Organization? There is an issue of trust. They have not justified the
trust we would show in placing them in the World Trade Organization.
Article I of the Constitution gives Congress express power over
foreign commerce. There is no question but that this is our right.
There is no question in this Senator's mind that it is our
responsibility to step forward and say: WTO membership for China will
not be granted without a debate in the House and Senate and a joint
resolution.
There are serious questions that the House and the Senate need to
address. For us to sit back and go off on our Easter vacation, to go
off on recess, to hold our town meetings or to take our trips around
the world, and to have been silent on this issue, I think, at this
time, will be indefensible. I suspect there will be some kind of
announcement on the U.S. position on China's membership in the WTO
while we are gone. Then we would never have had the opportunity to
debate very important questions.
I do not have all of the answers to these questions, but I know they
are serious questions and I know the Senator from Montana, the Senator
from Alabama, who was on the floor just a moment ago, and myself ought
to have a right, before we have the United States taking a position on
WTO membership, to debate that on the floor of the Senate, to
thoroughly examine the questions that have not yet been answered.
One question I would have is this: Are we lowering the WTO bar for
China, to rush them into membership?
Since 1995, four countries have completed negotiations on accession
protocol: Ecuador, Mongolia, Bulgaria, and Panama. All four of these
nations were required to eliminate, on the date of accession or with
very short transitions, trade practices that were incompatible with WTO
rules. That has been the standard. Since 1995 the four nations that
have sought to enter the WTO have been required to eliminate their
trade practices that were incompatible with WTO rules. But China has
firmly and continuously and repeatedly said they want a different
standard. They want a longer transition period. They do not want to
meet those WTO rules at the time of or soon after their accession to
the WTO. That is a question I believe this body deserves the
opportunity to investigate and debate thoroughly before we announce a
national position regarding China's admission.
Another question I think is a serious question for debate: Are we
allowing China into the WTO before they have made the kind of market
reforms to bring them into conformity with WTO standards? The
administration argues if we will just let China in, we will have
greater influence on China's reform efforts than we do now while they
are outside of the World Trade Organization. I suppose that is
debatable. But we ought to have the opportunity to have that debate.
In my estimation, our influence on China would be far greater before
they are admitted to the World Trade Organization than afterwards. Our
ability to influence the kind of reforms the World Trade Organization
would desire will be far greater if we say you are going to accrue the
benefits of trade under the WTO only after these market reforms have
taken place, these trade barriers have been lowered. Reforms should
first be enacted, changes should first occur, and then membership
should be granted --not vice versa.
[[Page
S2904]]
I think this question deserves debate: Can China be trusted on trade
issues? When we look at our exploding trade deficit with China, can
they be trusted on trade issues if admitted to the World Trade
Organization, or will we admit them to the World Trade Organization and
then find them cavalierly ignoring the standards and the rules of the
World Trade Organization? Our administration's own Trade Representative
Barshefsky stated in her testimony, a little over 2 years ago, in
reference to China, that ``China imposes new import barriers to replace
those it removed.'' In other words, there can be the appearance of
reform taking place, but if there are new barriers that are being
erected while the old ones are being brought down, you really have not
achieved the reforms necessary for World Trade Organization membership.
China has almost one-third of its industrial production controlled by
the state. Almost two-thirds of urban workers are employed in state-
owned enterprises. These state-owned enterprises are notorious for
their ability to destroy wealth. Some economists estimate that it would
be cheaper for China to close down their state-owned enterprises and
keep paying the workers--close down the enterprises, go ahead and pay
them their salaries, they would still come out ahead, than to keep
operating. But because the state-owned enterprises would be vulnerable
to foreign competition, the Chinese Government has a strong
disincentive to the state-owned enterprises that are heavily subsidized
through China's centralized and insolvent banking system.
One of the pledges that the Chinese Government made was that they
would rapidly privatize the state-owned enterprises, shutting down
those that they had to, privatizing others, allowing them to create
capital by selling stock, but because of the recent economic downturn
in China in which their robust growth rate has dropped appreciably,
China now has backed off that pledge and has once again begun a round
of bank loans to these very unprofitable, state-owned enterprises to
subsidize them and to keep them in business.
This is backpedaling already on the kinds of reforms that would be
expected if China were in fact ready for admission to the World Trade
Organization.
Another question that this body needs to debate is, Should China be
admitted as a developing country with far less stringent expectations
and longer transition than allowed for other nations? That is what they
desire. They say we are a developing Nation; therefore, we should be
treated more leniently. They base their claim primarily upon their per
capita gross domestic product. By every other measure, China is a major
economic power in the world today and they want to be treated as such.
They want to be recognized as a major economic power.
China will argue that as a developing country, they are entitled to
use subsidies. They are entitled to put limits on exports and other
policies to promote development of certain key industries such as
automobiles and telecommunications and heavy industrial equipment.
China maintains that such programs are a part of China's industrial
policy and not related to its application to the World Trade
Organization. Many trade officials simply disagree with that assertion
by the Chinese Government. That is a question and that is an issue the
Senate should have the opportunity to debate, not after the fact but
before China is admitted to the World Trade Organization and before the
U.S. Government announces its position on Chinese accession.
A WTO paper, prepared in response to a request from Chinese
negotiators, suggested that industrial policies in China and other
countries could violate the basic principles of nondiscrimination and
national treatment and other WTO rules. They are not in compliance.
They are not ready to join the WTO. Political considerations should not
be the driving force in rushing China into the WTO before they have
made necessary reforms.
Another question I believe we should debate is this: Should China be
given membership in WTO before Taiwan, which is simultaneously seeking
membership? Will it be the position of the U.S. Government that we
support the admission of People's Republic of China to the World Trade
Organization while not yet supporting Taiwan's admission? Which one
should be admitted first? I think that is an important issue. I think
that is one my colleagues in the Senate deserve to have the opportunity
to discuss thoroughly.
Many believe that once China is admitted, they will work feverishly
to block Taiwan's entry, even though Taiwan is a much more developed
Nation, has a much more developed economy, and an economy which is much
more consistent with WTO rules. Yet without a vote of the Senate or a
vote of the House, this administration is prepared to support the
admission of China to the WTO before Taiwan's admission.
I believe this question deserves debate as well: Will a premature
entry by China into WTO hurt American business interests? I know that
large corporate interests in this country support China's immediate
accession to WTO, but many business people in this country have serious
concerns as to how China's admission to WTO will impact them. U.S.
business interests often want permanent MFN for China and would like to
use an agreement on WTO, I believe, as a means to push for this goal,
but many of these business interests are also concerned that China's
WTO accession, without meeting market access and other requirements,
would seriously limit U.S. business access to the Chinese market for a
long time to come. The very access that American business wants so
desperately, we would be locked out of that access permanently or for a
long duration should they be admitted to the World Trade Organization
before they have met market access rules. As a result, many U.S.
interests are pushing U.S. negotiators to remain firm, to stand pat,
and not concede on the conditions of China's entry into the World Trade
Organization.
I believe another question that this body needs to debate is, How
will WTO admission for China affect jobs? Indeed, we should consider
how it would affect our jobs here in the United States.
I remind my colleagues, contained in this very supplemental
appropriations bill, which we are soon prepared to vote on, is a
measure to assist the U.S. steel industry and the jobs that go with it.
Some of those jobs are in my home State of Arkansas, Mississippi
County, Blytheville, AR, the No. 2 ranked county in the Nation in steel
production. According to the Department of Commerce, last year alone
the U.S.-China trade deficit in iron and steel was a $161 million loser
for the United States. The year before that the U.S. realized a steel
trade deficit of $141 million, and in 1996 the deficit was $140
million. Each year the deficit in iron and steel increases
dramatically.
My point is, this Congress should have a say in whether we allow an
agreement to be made when our trade imbalance is what we experience,
even without granting China World Trade Organization status.
At the appropriate time, I would like to see China join the World
Trade Organization and abide by its rules. I do not believe China is
ready at this time to go beyond paying lip service to the fundamental
changes necessary for accession, though I know some of my colleagues do
believe that they are ready. However, I believe we can all agree that
we ought not make this decision hastily. The consequences are too great
and long lasting and, just as importantly, we ought not let the
executive branch make this determination unilaterally.
Article 1 of the Constitution gives to us, the Congress, the express
power over foreign commerce. This decision is too important for us to
cede that power, and this amendment is a means by which we can preserve
our legitimate role in the legislative branch.
Major Actions:
All articles in Senate section
EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
(Senate - March 18, 1999)
Text of this article available as:
TXT
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[Pages
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EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
The Senate continued with the consideration of the bill.
Mr. STEVENS. Mr. President, I ask unanimous consent that the matter
of the order governing the amendment of the Senator from Texas be set
aside so that I may offer an amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 80
(Purpose: To defer section 8 assistance for expiring contracts until
October 1, 1999)
Mr. STEVENS. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Alaska [Mr. Stevens] proposes an amendment
numbered 80.
Inset on page 43, after line 15:
``PUBLIC AND INDIAN HOUSING
``HOUSING CERTIFICATE FUND
``(DEFERRAL)
``Of the funds made available under this heading in Public
Law 105-276 for use in connection with expiring or
terminating section 8 contracts, $350,000,000 shall not
become available until October 1, 1999.''.
On page 42, strike beginning with line 10 through the end
of line 21.
Mr. STEVENS. Mr. President, this is an amendment that deals with the
provision in the bill that was reported from the committee that
deferred spending from the temporary assistance to needy families
account.
This will defer, instead, monies from the section 8 fund of HUD.
There is approximately $1.2 billion in that account. This will defer
for 1 year the use of $350 million in that account. It replaces the
TANF amendment in the bill. Under that amendment, we deferred until
2001 the availability of funds which are transferred to the States.
Because of the misunderstanding about that fund, I want to explain
why we use that fund in the first place. I am once again alarmed over
the misinformation that has been spread by some people in that entity,
that agency, to try and make it look like somehow or other we took
monies away from States or any specific State.
In the first place, these grant awards are made quarterly. Actual
cash outlays are made, but they are not transferred to the States until
the States make expenditures in their TANF programs, the Temporary
Assistance to Needy Families. In other words, the States first make the
payments, and we pay it back. Some people, in the House in particular,
have said this a way that the States can use this money for a piggy
bank. In no way can they take this money and put it into another bank
account and draw interest on it if they comply with the law. That is
one report I have heard--that we are preventing States from taking the
money to put it into their own accounts.
We checked and we found that there was between $3 billion and $3.5
billion at the close of fiscal year 1998 in this fund. There are two
quarters that have not even been distributed yet of this fiscal year
1999. And it is clear that the States have spent some money, and there
is plenty of money to meet the States' expenditures and their requests
for reimbursement of those expenditures. But this is not a fund that
the States can come to willy-nilly and transfer the funds to their
accounts.
Secondly, Mr. President, we deferred this money from obligation in
this fiscal year--really until 2001, October 1, 2001.
The States would not--the bill that was reported from the committee--
lose any of their funds. We, pursuant to the entitlement that was
authorized, agreed that Federal funds, taxpayers' funds, in the amount
of $16.5 billion, from 1997 through 2002, would be placed in this
account, to be available to reimburse States for the expenditures they
made for Assistance to Needy Families.
Nothing in what the Appropriations Committee did harmed that program
at all. But because by October 1 another $16.5 billion would have been
added to $3 billion to $3.5 billion in that account--and there has
never been a drawdown at the rate that would make those funds needed
within that period of time.
This is not a rainy day fund. We have been told that some people have
said that States take these monies and put them in a rainy day fund to
use at a later date. But the law says they can only get them to
reimburse expenditures. If the administration is allowing this fund to
be used as a rainy day account or a piggy bank account, it is wrong.
We have had so many calls from so many States, including my own. And
I see the Senator from New York is here, and I know that they have been
besieged because of their population base. Of course, they are eligible
for more money from this account, more than anyone other than
California. But it depends on how much they spend before they can get
it back.
We made the decision to offset this bill. This is the first time we
have offset totally a supplemental emergency bill. I have said to our
committee, we ought to offset emergency funds with prior appropriated
emergency funds and nonemergency funds with nonemergency prior
appropriated funds. I think we are going to have a little discussion
about that here on the floor.
But clearly what we have done, Mr. President, is we have used this
bill to reprogram prior appropriated funds. These funds that were
appropriated to the TANF account are sitting there waiting for the
States to spend money and then come and ask for it to be repaid. The
process is so rapid that the administration has not paid the first two
quarters of this year yet. So this is not something we have interfered
with by deferring money until the second fiscal year. Because, as I
said, this account would get $16.5 billion credited to it on October 1.
What we have done is, in order to avoid this controversy--and we do
not need a controversy on this bill. We need to get it done. This bill,
in my opinion, is a very important bill. It will provide money for
assistance because of a great natural disaster in a neighboring country
in this hemisphere. The President asked us to declare that an
emergency. We have taken the declaration of emergency through as far as
the outlay categories are concerned, because it is very difficult to
score under the budget process outlays that come from emergency
accounts.
We have not taken an emergency declaration through on those things
that we believe are nonemergency in terms of the authorization process.
So by that I mean, I fail to understand how we should extend the
concept of emergency appropriations to natural disasters off our
shores. We should be able to find the money, if we want to be good
humanitarian members of this hemisphere, to assist our neighbors.
I believe we should assist them. But I do not believe we should use
the laws that were intended to demand taxpayers' funds immediately to
meet natural disasters or declared emergencies by the President of the
United States within the boundaries of our United States.
So Mr. President, I offer this amendment in the spirit of compromise,
to try and take away this battle that I saw coming over the use of TANF
funds. No one supports the concepts of this Temporary Assistance to
Needy Families. We all know it replaced the old Aid to Families with
Dependent Children, the AFDC program, that assisted so many States,
including mine for so many years.
But this now is a block grant program that works in conjunction with
the welfare-to-work concepts, and that is very vital for the States. We
know that. And I think the fear that was engendered in those States
that somehow or other we might not keep the commitment that was made,
that if they make those expenditures we would repay them according to
the formula under the law that was passed in 1996, the Welfare Reform
Act, is unfortunate and wrong.
I hope that someone in the administration is listening. One of these
days I will find some way to tweak the nose of the people who keep
doing this, because they did it in the terms of border guards last
week, and now they are doing it in terms of the States themselves in
terms of the comments that have been made that somehow or other we were
taking money that the States were entitled to; we were deferring money
that they were entitled to,
[[Page
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which they would never get under the process of the law anyway until
the time we deferred the expenditures.
As a matter of fact, some people on this side of the aisle have
argued with me to say this is not a full offset because I know that I
am offsetting the expenditures under this bill against a fund that
would never be expended this year. That is partially true. That is why
we have declared an emergency, as far as the outlays, and we have
admitted that, and we have said that is the only way we can do it. But
we need to do it. I hope, in particular, my new friend from New York
will understand that we are doing this to meet his objections and
others, and we do so in the spirit of compromise.
Thank you, Mr. President.
Mr. SCHUMER addressed the Chair.
The PRESIDING OFFICER. The Senator from New York.
Mr. SCHUMER. Thank you, Mr. President.
First, I want to, on behalf of Senator Moynihan and myself, thank
Chairman Stevens, as well as Senator Byrd, for their assistance in
removing the $350 million offset from the TANF, Temporary Assistance
for Needy Families, account, which would have deferred the funds until
2002.
Mr. President, I and many others in New York feared that this offset
set us off on the wrong course, that it would run counter to the
intention of the welfare reform bill which allowed States to set aside
TANF funds for use at a later date when welfare rolls would rise, such
as during a future recession.
My State, as the chairman knows, was particularly affected. The State
was the source of nearly a quarter, about $80 million, of the $350
million that was offset. So I am pleased that the alternative offset
would shift some HUD funds from one fiscal year to the next, funds that
never would have been used. We have checked with both the
administration as well as our side on Housing and on Banking and on
Appropriations, and they agree with that.
I say to the chairman that I appreciate very much the spirit of
compromise in which this was offered. I understand his view and I will
bring that message back to our State. The people of New York will now
be breathing a sigh of relief that this has been replaced.
I also thank the Senator from Pennsylvania, Mr. Santorum, who worked
with me on this. He found his State in a similar position as ours. At
least for my first foray into the Senate legislative process, it has
been a bipartisan and productive effort. For that, I very much thank
the chairman for his understanding of our needs and yield back the
remainder of my time.
Mr. STEVENS. Mr. President, I am going to ask for adoption of the
amendment but I will not move to reconsider because there may be some
who want to discuss this, too. I will make a motion to reconsider this
later today. May I reserve the right to make that later today?
The PRESIDING OFFICER. That motion can be made today or any of the
next 2 following days.
Mr. STEVENS. I shall make it this afternoon, and I ask for the
adoption of the amendment.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 80) was agreed to.
Amendment No. 81
(Purpose: To set forth restrictions on deployment of United States
Armed Forces in Kosovo)
Mrs. HUTCHISON. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Texas [Mrs. Hutchison] proposes an
amendment numbered 81.
Mr. STEVENS. Mr. President, I ask unanimous consent reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 58, between lines 15 and 16, insert the following:
TITLE ____ RESTRICTIONS ON DEPLOYMENT OF UNITED STATES ARMED FORCES IN
KOSOVO
SEC. ____01. SHORT TITLE.
This title may be cited as the ``____________ Act of
1999''.
SEC. ____02. DEFINITION.
In this title, the term ``Yugoslavia'' means the so-called
Federal Republic of Yugoslavia (Serbia and Montenegro).
SEC. ____03. FUNDING LIMITATION.
(a) Limitation.--None of the funds appropriated or
otherwise made available to the Department of Defense,
including funds appropriated for fiscal year 1999 and prior
fiscal years, may be obligated or expended for any deployment
of ground forces of the Armed Forces of the United States to
Kosovo unless and until--
(1) the parties to the conflict in Kosovo have signed an
agreement for the establishment of peace in Kosovo;
(2) the President has transmitted to Congress the report
provided for under section 8115 of Public Law 105-262 (112
Stat. 2327); and
(3) the President has transmitted to the Speaker of the
House of Representatives and the President pro tempore of the
Senate a report containing--
(A) a certification--
(i) that deployment of the Armed Forces of the United
States to Kosovo is in the national security interests of the
United States;
(ii) that--
(I) the President will submit to Congress an amended budget
for the Department of Defense for fiscal year 2000 not later
than 60 days after the commencement of the deployment of the
Armed Forces of the United States to Kosovo that includes an
amount sufficient for such deployment; and
(II) such amended budget will provide for an increase in
the total amount for the major functional budget category 050
(relating to National Defense) for fiscal year 2000 by at
least the total amount proposed for the deployment of the
Armed Forces of the United States to Kosovo (as compared to
the amount provided for fiscal year 2000 for major functional
budget category 050 (relating to National Defense) in the
budget that the President submitted to Congress February 1,
1999); and
(iii) that--
(I) not later than 120 days after the commencement of the
deployment of the Armed Forces of the United States to
Kosovo, forces of the Armed Forces of the United States will
be withdrawn from on-going military operations in locations
where maintaining the current level of the Armed Forces of
the United States (as of the date of certification) is no
longer considered vital to the national security interests of
the United States; and
(II) each such withdrawal will be undertaken only after
consultation with the Majority Leader of the Senate, the
Minority Leader of the Senate, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives;
(B) an explanation of the reasons why the deployment of the
Armed Forces of the United States to Kosovo is in the
national security interests of the United States;
(C) the total number of the United States military
personnel that are to be deployed in Kosovo and the number of
personnel to be committed to the direct support of the
international peacekeeping operation in Kosovo, including
ground troops, air support, logistics support, and
intelligence support;
(D) the percentage that the total number of personnel of
the United States Armed Forces specified in subparagraph (C)
bears to the total number of the military personnel of all
NATO nations participating in the international peacekeeping
operation in Kosovo;
(E) a description of the responsibilities of the United
States military force participating in the international
peacekeeping operation to enforce any provision of the Kosovo
peace agreement; and
(F) a clear identification of the benchmarks for the
withdrawal of the Armed Forces of the United States from
Kosovo, together with a description of those benchmarks and
the estimated dates by which those benchmarks can and will be
achieved.
(b) Consultation.--
(1) In general.--Prior to the conduct of any air operations
by the Armed Forces of the United States against Yugoslavia,
the President shall consult with the joint congressional
leadership and the chairmen and ranking minority members of
the appropriate congressional committees with respect to
those operations.
(2) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Appropriations, the Committee on Armed
Services, the Committee on International Relations, and the
Permanent Select Committee on Intelligence of the House of
Representatives; and
(ii) the Committee on Appropriations, the Committee on
Armed Services, the Committee on Foreign Relations, and the
Select Committee on Intelligence of the Senate.
(B) Joint congressional leadership.--The term ``joint
congressional leadership'' means--
(i) the Speaker of the House of Representatives and the
Majority Leader and the Minority Leader of the House of
Representatives; and
(ii) the Majority Leader and the Minority Leader of the
Senate.
SEC. ____04. REPORT ON PROGRESS TOWARD MEETING BENCHMARKS.
Thirty days after the date of enactment of this Act, and
every 60 days thereafter, the President shall submit to
Congress a detailed report on the benchmarks that are
established to measure progress and determine the withdrawal
of the Armed Forces of the United States from Kosovo. Each
report shall include--
[[Page
S2900]]
(1) a detailed description of the benchmarks for the
withdrawal of the Armed Forces from Kosovo;
(2) the objective criteria for evaluating successful
achievement of the benchmarks;
(3) an analysis of the progress made in achieving the
benchmarks;
(4) a comparison of the current status on achieving the
benchmarks with the progress described in the last report
submitted under this section;
(5) the specific responsibilities assigned to the
implementation force in assisting in the achievement of the
benchmarks;
(6) the estimated timetable for achieving the benchmarks;
and
(7) the status of plans and preparations for withdrawal of
the implementing force once the objective criteria for
achieving the benchmarks have been met.
SEC. ____05. STATUTORY CONSTRUCTION.
Nothing in this title restricts the authority of the
President to protect the lives of United States citizens.
Mr. STEVENS. Mr. President, I ask unanimous consent the amendment now
be laid aside and no call for regular order, except one made by myself
or the mover of the amendment, the Senator from Texas, serve to bring
back the pending amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. STEVENS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendments Nos. 82 Through 88, En Bloc
Mr. STEVENS. Mr. President, I have a package of amendments that have
been cleared and I would like to say for the record what they are. They
are:
An amendment by Senator McCain to extend the Aviation Insurance
Program through May 31, 1999.
An amendment by Senator Grassley providing $1.4 million to expedite
adjudication of civil monetary penalties by the Health and Human
Services Appeal Board. It also provides for an offset for that amount
of $1.4 million.
We have Senator Shelby's amendment which makes a technical correction
to title IV.
We have an amendment by Senator Byrd making a technical correction to
the Emergency Steel Loan Guarantee Program in the bill.
An amendment by Senator Frist and Senator Thompson providing $3.2
million for repairs to Jackson, TN, Army aviation facility damaged by a
tornado in January. It also provides for an offset in the same amount.
An amendment by myself for a technical correction to the current
year, 1999's Commerce-Justice-State bill, and provides for rules on the
taking of Beluga whales.
I send these amendments to the desk and ask unanimous consent that
they be considered en bloc.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report.
The bill clerk read as follows:
The Senator from Alaska [Mr. Stevens], for himself, Mr.
McCain, Mr. Grassley, Mr. Shelby, Mr. Byrd, Mr. Frist and Mr.
Thompson, proposes amendments numbered 82 through 88, en
bloc, as follows:
AMENDMENT NO. 82
(Purpose: To extend the aviation insurance program through May 31,
1999)
At the appropriate place, insert the following:
SEC. 17. EXTENSION OF AVIATION INSURANCE PROGRAM.
Section 44310 of title 49, United States Code, is amended
by striking ``March 31, 1999.'' and inserting ``May 31,
1999.''.
____
AMENDMENT NO. 83
(Purpose: Expediting adjudication of civil monetary penalties by the
Department of Health and Human Services Appeals Board)
On page 29, insert after line 10:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office of the Secretary
General Departmental Management
For an additional amount for `'general departmental
management'', $1,400,000, to reduce the backlog of pending
nursing home appeals before the Departmental Appeals Board.
On page 42, line 8, strike $3,116,076,000 and insert
$3,114,676,000
On page 42, line 9, strike $164,933,000 and insert
$163,533,000.
Mr. GRASSLEY. Mr. President, I am offering this amendment to speed up
adjudication, by the appeals board of the Department of Health and
Human Services, of appeals from nursing facilities of civil monetary
penalties levied by the Health Care Financing Administration (HCFA) for
violations of standards established pursuant to the Nursing Home Reform
Act of 1987. Currently, there is a substantial backlog of some 701 such
cases. Delay in final adjudication of such cases subverts the purpose
and effect of civil monetary penalties, delaying corrective action, and
improvements in the quality of care offered by nursing facilities.
Delays in adjudication of these cases also burdens nursing facilities
through additional legal fees and the perpetuation of uncertainty
caused by unresolved disputes.
The number of such cases filed each year by nursing facilities has
increased each year since 1995, the year when regulations for the
Nursing Home Reform Act's enforcement standards went into effect.
Currently, as I noted earlier in my statement, there are 701 such cases
pending.
Mr. President, the steady increase in appeals of civil monetary
penalties since 1995 shows the effect of increased use, by the States
and HCFA, of the enforcement regulations which went into effect in
1995. Nevertheless, in hearings I held in the Special Committee on
Aging last July, the General Accounting Office reported that nursing
facilities providing poor quality of care regularly escaped sanctions
which could cause care to be improved. The pattern seemed to be that a
facility would be sanctioned for poor quality of care, be required to
attest in writing through a plan of correction that steps had been
taken to improve care, and then be found deficient on the next visit
from State officials. This pattern often continued for long periods of
time. And when sanctions such as civil monetary penalties were levied
by HCFA, the sanctioned facilities would appeal, causing lengthy delays
in final resolution of the case.
One week before my July hearings, President Clinton launched a
variety of new initiatives designed to improve the quality of care in
nursing facilities. Among those new initiatives was one designed to
eliminate paper compliance with quality standards and to proceed more
quickly to sanctions for those homes with a history of poor care.
The upshot of oversight by the Special Committee on Aging and the
Presidential initiatives is that there has been a substantial increase
thus far in 1999 of appeals of civil monetary penalties by nursing
facilities.
Certainly, facilities have the right to appeal sanctions levied by
HCFA. But it is also important that appeals be heard and resolved in a
reasonable amount of time. Delay subverts improvement in the quality of
care in nursing facilities as real deficiencies go uncorrected. Delay
also slows the development of precedents which would clarify
outstanding issues. Slow development of such precedents encourages
facilities and their legal representatives to file appeals because
guidance as to the worthiness of an appeal is lacking. And, as the body
of precedents becomes more complete, adjudication of cases becomes
speedier.
The root problem has been that the departmental appeals board does
not have sufficient resources to keep up with the increase in new
cases, to say nothing of working off the current backlog of cases. I am
given to understand that, at the present time about 25 new cases are
filed with the appeals board each week. As will be clear from the table
I am attaching to my statement, the number of cases decided each year
has averaged around 23 for the last 3 years. Clearly, the board is
swamped and needs help.
The President's budget for fiscal year 2000 proposes $2.8 million for
the board. Were the Congress to provide those funds, it will certainly
take time for the appeals board to gear up and begin to speed up
adjudication of appeals.We can't wait to begin addressing this problem,
Mr. President. The amendment I offer would provide $1.4 million to be
made available through the supplemental appropriation we are now
considering. I have not proposed to provide the full $2.8 million the
President's budget proposes for the next fiscal year because the
appeals board could not effectively spend that amount in what remains
of the fiscal year. Therefore, I have essentially prorated that amount
over the time remaining in this fiscal year.
amendment no. 84
At the appropriate place in the bill, insert:
[[Page
S2901]]
Sec. . Title 49 Recodification Correction.--Effective
December 31, 1998, section 4(k) of the Act of July 5, 1994
(Public Law 103-272, 108 Stat. 1370), as amended by section
7(a)(3)(D) of the Act of October 31, 1994 (Public Law 103-
429, 108 Stat. 4329), is repealed.
amendment no. 85
(Purpose: To make a technical correction)
On page 16, strike beginning with line 12 through page 23,
line 8, and insert the following:
Emergency Steel Loan Guarantee Program. (a) Short Title.--
This section may be cited as the ``Emergency Steel Loan
Guarantee Act of 1999''.
(b) Congressional Findings.--Congress finds that--
(1) the United States steel industry has been severely
harmed by a record surge of more than 40,000,000 tons of
steel imports into the United States in 1998, caused by the
world financial crisis;
(2) this surge in imports resulted in the loss of more than
10,000 steel worker jobs in 1998, and was the imminent cause
of 3 bankruptcies by medium-sized steel companies, Acme
Steel, Laclede Steel, and Geneva Steel;
(3) the crisis also forced almost all United States steel
companies into--
(A) reduced volume, lower prices, and financial losses; and
(B) an inability to obtain credit for continued operations
and reinvestment in facilities;
(4) the crisis also has affected the willingness of private
banks and investment institutions to make loans to the U.S.
steel industry for continued operation and reinvestment in
facilities;
(5) these steel bankruptcies, job losses, and financial
losses are also having serious negative effects on the tax
base of cities, counties, and States, and on the essential
health, education, and municipal services that these
government entities provide to their citizens; and
(6) a strong steel industry is necessary to the adequate
defense preparedness of the United States in order to have
sufficient steel available to build the ships, tanks, planes,
and armaments necessary for the national defense.
(c) Definitions.--For purposes of this section--
(1) the term ``Board'' means the Loan Guarantee Board
established under subsection (e);
(2) the term ``Program'' means the Emergency Steel
Guaranteed Loan Program established under subsection (d); and
(3) the term ``qualified steel company'' means any company
that--
(A) is incorporated under the laws of any State;
(B) is engaged in the production and manufacture of a
product defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and billets,
plates, flat-rolled steel, sections and structural products,
bars, rail type products, pipe and tube, and wire rod; and
(C) has experienced layoffs, production losses, or
financial losses since the beginning of the steel import
crisis, after January 1, 1998.
(d) Establishment of Emergency Steel Guaranteed Loan
Program.--There is established the Emergency Steel Guaranteed
Loan Program, to be administered by the Board, the purpose of
which is to provide loan guarantees to qualified steel
companies in accordance with this section.
(e) Loan Guarantee Board Membership.--There is established
a Loan Guarantee Board, which shall be composed of--
(1) the Secretary of Commerce, who shall serve as Chairman
of the Board;
(2) the Secretary of Labor; and
(3) the Secretary of the Treasury.
(f) Loan Guarantee Program.--
(1) Authority.--The Program may guarantee loans provided to
qualified steel companies by private banking and investment
institutions in accordance with the procedures, rules, and
regulations established by the Board.
(2) Total guarantee limit.--The aggregate amount of loans
guaranteed and outstanding at any 1 time under this section
may not exceed $1,000,000,000.
(3) Individual guarantee limit.--The aggregate amount of
loans guaranteed under this section with respect to a single
qualified steel company may not exceed $250,000,000.
(4) Minimum guarantee amount.--No single loan in an amount
that is less than $25,000,000 may be guaranteed under this
section.
(5) Timelines.--The Board shall approve or deny each
application for a guarantee under this section as soon as
possible after receipt of such application.
(6) Additional costs.--For the additional cost of the loans
guaranteed under this subsection, including the costs of
modifying the loans as defined in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a), there is
appropriated $140,000,000 to remain available until expended.
(g) Requirements for Loan Guarantees.--A loan guarantee may
be issued under this section upon application to the Board by
a qualified steel company pursuant to an agreement to provide
a loan to that qualified steel company by a private bank or
investment company, if the Board determines that--
(1) credit is not otherwise available to that company under
reasonable terms or conditions sufficient to meet its
financing needs, as reflected in the financial and business
plans of that company;
(2) the prospective earning power of that company, together
with the character and value of the security pledged, furnish
reasonable assurance of repayment of the loan to be
guaranteed in accordance with its terms;
(3) the loan to be guaranteed bears interest at a rate
determined by the Board to be reasonable, taking into account
the current average yield on outstanding obligations of the
United States with remaining periods of maturity comparable
to the maturity of such loan; and
(4) the company has agreed to an audit by the General
Accounting Office, prior to the issuance of the loan
guarantee and annually while any such guaranteed loan is
outstanding.
(h) Terms and Conditions of Loan Guarantees.--
(1) Loan duration.--All loans guaranteed under this section
shall be payable in full not later than December 31, 2005,
and the terms and conditions of each such loan shall provide
that the loan may not be amended, or any provision thereof
waived, without the consent of the Board.
(2) Loan security.--Any commitment to issue a loan
guarantee under this section shall contain such affirmative
and negative covenants and other protective provisions that
the Board determines are appropriate. The Board shall require
security for the loans to be guaranteed under this section at
the time at which the commitment is made.
(3) Fees.--A qualified steel company receiving a guarantee
under this section shall pay a fee in an amount equal to 0.5
percent of the outstanding principal balance of the
guaranteed loan to the Department of the Treasury.
(i) Reports to Congress.--The Secretary of Commerce shall
submit to Congress annually, a full report of the activities
of the Board under this section during fiscal years 1999 and
2000, and annually thereafter, during such period as any loan
guaranteed under this section is outstanding.
(j) Salaries and Administrative Expenses.--For necessary
expenses to administer the Program, $5,000,000 is
appropriated to the Department of Commerce, to remain
available until expended, which may be transferred to the
Office of the Assistant Secretary for Trade Development of
the International Trade Administration.
(k) Termination of Guarantee Authority.--The authority of
the Board to make commitments to guarantee any loan under
this section shall terminate on December 31, 2001.
(l) Regulatory Action.--The Board shall issue such final
procedures, rules, and regulations as may be necessary to
carry out this section not later than 60 days after the date
of enactment of this Act.
(m) Emergency Designation.--The entire amount made
available to carry out this section--
(1) is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(A)); and
(2) shall be available only to the extent that an official
budget request that includes designation of the entire amount
of the request as an emergency requirement (as defined in the
Balanced Budget and Emergency Deficit Control Act of 1985) is
transmitted by the President to Congress.
AMENDMENT NO. 86
(Purpose: To increase, with a rescission, the supplemental
appropriations for fiscal year 1999 for military construction for the
Army National Guard)
On page 30, line 1, strike ``$11,300,000'' and insert
``$14,500,000''.
On page 43, line 12, strike ``$11,300,000'' and insert
``$14,500,000''.
amendment no. 87
At the appropriate place in the bill, insert:
Sec. . Notwithstanding any other provision of law, the
taking of a Cook Inlet beluga whale under the exemption
provided in section 101(b) of the Marine Mammal Protection
Act (16 U.S.C. 1371(a)) between the date of the enactment of
this Act and October 1, 2000 shall be considered a violation
of such Act unless such taking occurs pursuant to a
cooperative agreement between the National Marine Fisheries
Service and Cook Inlet Marine Mammal Commission.
amendment no. 88
At the appropriate place in the bill, insert:
Sec. . Funds provided in the Department of Commerce,
Justice and State, the Judiciary, and Related Agencies
Appropriations Act, 1999 (P.L. 105-277, Division A, Section
101(b)) for the construction of correctional facility in
Barrow, Alaska shall be made available to the North Slope
Borough.
The PRESIDING OFFICER. Without objection, the amendments are agreed
to en bloc.
The amendments (Nos. 82 through 88) were agreed to.
Mr. STEVENS. Mr. President, the Senator from Arkansas, Mr.
Hutchinson, is here and he will offer an amendment. After he has
presented his amendment, I state to the Senator it will be my intention
to move to table his amendment.
I ask unanimous consent that the vote on that motion to table and the
vote on the motion to table the Harkin amendment occur at 2:30.
[[Page
S2902]]
Mr. HARKIN. Torricelli.
Mr. STEVENS. Torricelli/Harkin amendment occur at 2:30.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I thank the Chair.
Mr. HUTCHINSON addressed the Chair.
The PRESIDING OFFICER. The Senator from Arkansas.
Amendment No. 89
(Purpose: To require prior congressional approval before the United
States supports the admission of the People's Republic of China into
the World Trade Organization)
Mr. HUTCHINSON. I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
The Senator from Arkansas [Mr. Hutchinson] proposes an
amendment numbered 89.
Mr. HUTCHINSON. Mr. President, I ask unanimous consent that reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the appropriate place, insert the following new section:
SEC. ____. PRIOR CONGRESSIONAL APPROVAL FOR SUPPORTING
ADMISSION OF CHINA INTO THE WTO.
(a) In General.--Notwithstanding any other provision of
law, the United States may not support the admission of the
People's Republic of China as a member of the World Trade
Organization unless a provision of law is passed by both
Houses of Congress and enacted into law after the enactment
of this Act that specifically allows the United States to
support such admission.
(b) Procedures for Congressional Approval of United States
Support for Admission of China Into the WTO.--
(1) Notification of congress.--The President shall notify
the Congress in writing if the President determines that the
United States should support the admission of the People's
Republic of China into the World Trade Organization.
(2) Support of china's admission into the wto.--The United
States may support the admission of the People's Republic of
China into the World Trade Organization if a joint resolution
is enacted into law under subsection (c) and the Congress
adopts and transmits the joint resolution to the President
before the end of the 90-day period (excluding any day
described in section 154(b) of the Trade Act of 1974),
beginning on the date on which the Congress receives the
notification referred to in paragraph (1).
(c) Joint Resolution.--
(1) Joint resolution.--For purposes of this section, the
term ``joint resolution'' means only a joint resolution of
the 2 Houses of Congress, the matter after the resolving
clause of which is as follows: ``That the Congress approves
the support of the United States for the admission of the
People's Republic of China into the World Trade
Organization.''.
(2) Procedures.--
(A) In general.--A joint resolution may be introduced at
any time on or after the date on which the Congress receives
the notification referred to in subsection (b)(1), and before
the end of the 90-day period referred to in subsection
(b)(2). A joint resolution may be introduced in either House
of the Congress by any member of such House.
(B) Application of section 152.--Subject to the provisions
of this subsection, the provisions of subsections (b), (d),
(e), and (f) of section 152 of the Trade Act of 1974 (19
U.S.C. 2192(b), (d), (e), and (f)) apply to a joint
resolution under this section to the same extent as such
provisions apply to resolutions under section 152.
(C) Discharge of committee.--If the committee of either
House to which a joint resolution has been referred has not
reported it by the close of the 45th day after its
introduction (excluding any day described in section 154(b)
of the Trade Act of 1974), such committee shall be
automatically discharged from further consideration of the
joint resolution and it shall be placed on the appropriate
calendar.
(D) Consideration by appropriate committee.--It is not in
order for--
(i) the Senate to consider any joint resolution unless it
has been reported by the Committee on Finance or the
committee has been discharged under subparagraph (C); or
(ii) the House of Representatives to consider any joint
resolution unless it has been reported by the Committee on
Ways and Means or the committee has been discharged under
subparagraph (C).
(E) Consideration in the house.--A motion in the House of
Representatives to proceed to the consideration of a joint
resolution may only be made on the second legislative day
after the calendar day on which the Member making the motion
announces to the House his or her intention to do so.
(3) Consideration of second resolution not in order.--It
shall not be in order in either the House of Representatives
or the Senate to consider a joint resolution (other than a
joint resolution received from the other House), if that
House has previously adopted a joint resolution under this
section.
Mr. HARKIN. Mr. President, parliamentary inquiry, if I might.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. HARKIN. I am just trying to find out from the Senator, is there a
time allotment or not?
Mr. STEVENS. When the Senator finishes, I will make a motion to
table. It should be about 1 o'clock.
Mr. HARKIN. I just didn't know----
Mr. STEVENS. Mr. President, we have not asked for a time limitation
on the Senator making his presentation, but he knows that as soon as he
finishes, I will make a motion to table.
Mr. HARKIN. The Senator is going to table both at 2:30?
Mr. STEVENS. Mr. President, I will make a motion to table the
amendment of the Senator from Arkansas, and after the Senator from
Iowa, I will make a motion, but I got unanimous consent that those
votes occur at 2:30.
Mr. HARKIN. That is fine with me. I just wanted to make sure.
Mr. BAUCUS. Mr. President, who has the floor?
Mr. STEVENS. The Senator from Arkansas has the floor.
The PRESIDING OFFICER. The Senator from Arkansas has the floor.
Mr. BAUCUS. Mr. President, will the Senator yield for a question--for
a parliamentary inquiry?
Mr. HUTCHINSON. I will be glad to yield.
Mr. BAUCUS. I understand the distinguished Senator from Alaska is
saying he is going to move to table. I would like to speak on the
amendment, but the Senator is moving to table as soon as the Senator is
finished.
Mr. STEVENS. Mr. President, I would be pleased if the Senator would
agree to try to reach a time agreement on that, because we have other
Senators wishing to offer amendments this afternoon also.
Mr. President, may I ask the Senator, first, that the Senator yield
to me? I apologize.
Mr. HUTCHINSON. I will be glad to yield to the distinguished
chairman.
Mr. STEVENS. How much time would the Senator like to have?
Mr. HUTCHINSON. I think for my presentation I probably only need 15
minutes. If there are those who speak against the amendment, I would
like to yield proportionally then.
Mr. STEVENS. Mr. President, if I still have the floor, how much time
does the Senator from Montana seek?
Mr. BAUCUS. I was thinking of 10, 15 minutes.
Mr. STEVENS. Could we have an agreement that there be 30 minutes on
this amendment? Is the Senator from Montana speaking against the
amendment?
Mr. BAUCUS. I am speaking against the amendment.
The PRESIDING OFFICER. Is there objection?
Mr. BAUCUS. Mr. President, reserving the right to object----
Mr. STEVENS. I am seeking a limitation of 30 minutes on the
amendment, that the time following that time to be--I will make a
motion to table, only a motion to table be in order.
The PRESIDING OFFICER. Is there objection? Without objection----
Mr. STEVENS. Mr. President, I am informed that Senators Roth and
Moynihan wish to speak, and I ask unanimous consent that the time be
expanded to 40 minutes to be followed only by a motion to table offered
by me.
Mr. HUTCHINSON. Reserving the right to object.
Mr. STEVENS. Forty-five minutes. The Senator wants to close.
Mr. HUTCHINSON. I suspect the others the Senator mentioned are going
to speak in opposition. There are some who might want to speak in
favor. If we are going to extend the time afforded Senators who want to
speak against, I think we might have trouble extending the time with
that restriction.
Mr. STEVENS. Mr. President, I do desire to limit the time if
possible, so we can have a vote when the Senate comes back out of that
conference.
Could we agree to 30 minutes on a side? Is there objection to 30
minutes on a side? I renew my request----
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. The agreement then is 1 hour equally divided?
The PRESIDING OFFICER. That is correct.
Mr. STEVENS. I thank the Chair.
[[Page
S2903]]
The PRESIDING OFFICER. The Senator from Arkansas.
Mr. HUTCHINSON. I thank the Chair.
This is a very straightforward amendment that simply says that before
China can be admitted to the World Trade Organization, there will have
to be a joint resolution passed by the Congress supporting that
accession of China to the World Trade Organization.
It is very simple. It is simply saying we should have a voice in
this. We should not have the administration arbitrarily and
unilaterally making a very, very significant and major decision without
the input of the U.S. Congress and this body. It does not prejudge what
should happen. It does not say whether China should be in or not. There
may be very compelling arguments that could be presented in such a
debate. But it does say that before China is admitted to the World
Trade Organization, every Senator in this body ought to have an
opportunity to look at the evidence and have a say in the outcome of
that debate. That is why we need this amendment, because Congress needs
to, once again, assert its constitutional responsibility in the area of
foreign commerce.
I believe we must do it now for a couple of reasons. It is the only
opportunity we are going to have before the recess, and our only
opportunity before Zhu Rongji visits this Nation next month. He will
come during our Easter recess. So, if Congress is going to have any
kind of statement on this, if we are going to be able to take any kind
of action on this, we must take it now.
I know some of my colleagues will say this should have gone through
committee. In an ideal world I would agree. It is very straightforward.
I do not think it would require a great deal of debate, as to whether
someone is for it or against it, but ideally that is where it should
have gone. But, once again, the stream of negotiations that have taken
place in recent weeks between our country and the Chinese Government,
with our officials going to China--Deputy Treasury Secretary Larry
Summers, Secretary of State Albright, U.S. Trade Representative
Charlene Barshefsky have all been making repeated trips to China--
negotiating, obviously; attempting to broker a deal on the World Trade
Organization accession of China.
If we wait for an announcement by the administration that a deal has
been reached, an announcement by the administration that the outlines
of an agreement have been reached, we will make China's membership in
the WTO a fait accompli. Any effort to stop it after the fact, after
the negotiations are completed and after an agreement has been
announced, I think will be too late for this body to really make a
difference.
The amendment is, as I said, very straightforward. It would require a
joint resolution to be passed before the United States could support
admission of China into the WTO. Again, it does not preclude our
support for China's entry. It simply sends a clear statement that
Congress should be involved in the process of deciding U.S. support for
China's accession into the WTO. The administration should not make any
hasty deals with China. We must give careful consideration to the
timing as well as to the consequences of Chinese accession. Congress
must be thoroughly involved in that debate.
We cannot negotiate a trade deal with the most populous nation in the
world, and, as we hear so often, the largest market in the world, in a
vacuum. There are certain facts that we must face; there is a political
environment in which all of these negotiations are occurring. The
Chinese have used espionage to obtain important nuclear secrets from
the United States. That is a matter that must be fully investigated. I
believe it will be. I believe the appropriate oversight committees are
moving expeditiously to investigate. But it certainly is not going to
happen before we go out on the Easter recess. We may have hearings next
week, but we will not see the end of this, we will not have all the
facts on the table, before the Easter recess and before Zhu Rongji
visits this country.
Another fact that faces us is our trade deficit with the Chinese is
at an alarming all-time high of $56.9 billion for 1998. It is rising
exponentially every year. That reality ought to cause us to pause
before we see the administration rush into a WTO deal. The Chinese
continue to keep many of their markets closed, particularly to our
agricultural sector, our farmers, who are in such crisis.
The Chinese have signed and blatantly disregarded the International
Covenant on Civil and Political Rights and have engaged in a widespread
crackdown on prodemocracy activists in China, effectively silencing all
political dissent. We cannot give WTO membership in a vacuum, ignoring
all other realities that face us. The 1999 State Department report on
China, released in the last few weeks, demonstrably proves China's
ignoring of the very covenant on civil and political rights that they
signed last year. If we cannot trust them to live up to a human rights
covenant that they signed, how can we assume they are going to live
according to the rules and the obligations of the World Trade
Organization? There is an issue of trust. They have not justified the
trust we would show in placing them in the World Trade Organization.
Article I of the Constitution gives Congress express power over
foreign commerce. There is no question but that this is our right.
There is no question in this Senator's mind that it is our
responsibility to step forward and say: WTO membership for China will
not be granted without a debate in the House and Senate and a joint
resolution.
There are serious questions that the House and the Senate need to
address. For us to sit back and go off on our Easter vacation, to go
off on recess, to hold our town meetings or to take our trips around
the world, and to have been silent on this issue, I think, at this
time, will be indefensible. I suspect there will be some kind of
announcement on the U.S. position on China's membership in the WTO
while we are gone. Then we would never have had the opportunity to
debate very important questions.
I do not have all of the answers to these questions, but I know they
are serious questions and I know the Senator from Montana, the Senator
from Alabama, who was on the floor just a moment ago, and myself ought
to have a right, before we have the United States taking a position on
WTO membership, to debate that on the floor of the Senate, to
thoroughly examine the questions that have not yet been answered.
One question I would have is this: Are we lowering the WTO bar for
China, to rush them into membership?
Since 1995, four countries have completed negotiations on accession
protocol: Ecuador, Mongolia, Bulgaria, and Panama. All four of these
nations were required to eliminate, on the date of accession or with
very short transitions, trade practices that were incompatible with WTO
rules. That has been the standard. Since 1995 the four nations that
have sought to enter the WTO have been required to eliminate their
trade practices that were incompatible with WTO rules. But China has
firmly and continuously and repeatedly said they want a different
standard. They want a longer transition period. They do not want to
meet those WTO rules at the time of or soon after their accession to
the WTO. That is a question I believe this body deserves the
opportunity to investigate and debate thoroughly before we announce a
national position regarding China's admission.
Another question I think is a serious question for debate: Are we
allowing China into the WTO before they have made the kind of market
reforms to bring them into conformity with WTO standards? The
administration argues if we will just let China in, we will have
greater influence on China's reform efforts than we do now while they
are outside of the World Trade Organization. I suppose that is
debatable. But we ought to have the opportunity to have that debate.
In my estimation, our influence on China would be far greater before
they are admitted to the World Trade Organization than afterwards. Our
ability to influence the kind of reforms the World Trade Organization
would desire will be far greater if we say you are going to accrue the
benefits of trade under the WTO only after these market reforms have
taken place, these trade barriers have been lowered. Reforms should
first be enacted, changes should first occur, and then membership
should be granted --not vice versa.
[[Page
S2904]]
I think this question deserves debate: Can China be trusted on trade
issues? When we look at our exploding trade deficit with China, can
they be trusted on trade issues if admitted to the World Trade
Organization, or will we admit them to the World Trade Organization and
then find them cavalierly ignoring the standards and the rules of the
World Trade Organization? Our administration's own Trade Representative
Barshefsky stated in her testimony, a little over 2 years ago, in
reference to China, that ``China imposes new import barriers to replace
those it removed.'' In other words, there can be the appearance of
reform taking place, but if there are new barriers that are being
erected while the old ones are being brought down, you really have not
achieved the reforms necessary for World Trade Organization membership.
China has almost one-third of its industrial production controlled by
the state. Almost two-thirds of urban workers are employed in state-
owned enterprises. These state-owned enterprises are notorious for
their ability to destroy wealth. Some economists estimate that it would
be cheaper for China to close down their state-owned enterprises and
keep paying the workers--close down the enterprises, go ahead and pay
them their salaries, they would still come out ahead, than to keep
operating. But because the state-owned enterprises would be vulnerable
to foreign competition, the Chinese Government has a strong
disincentive to the state-owned enterprises that are heavily subsidized
through China's centralized and insolvent banking system.
One of the pledges that the Chinese Government made was that they
would rapidly privatize the state-owned enterprises, shutting down
those that they had to, privatizing others, allowing them to create
capital by selling stock, but because of the recent economic downturn
in China in which their robust growth rate has dropped appreciably,
China now has backed off that pledge and has once again begun a round
of bank loans to these very unprofitable, state-owned enterprises to
subsidize them and to keep them in business.
This is backpedaling already on the kinds of reforms that would be
expected if China were in fact ready for admission to the World Trade
Organization.
Another question that this body needs to debate is, Should China be
admitted as a developing country with far less stringent expectations
and longer transition than allowed for other nations? That is what they
desire. They say we are a developing Nation; therefore, we should be
treated more leniently. They base their claim primarily upon their per
capita gross domestic product. By every other measure, China is a major
economic power in the world today and they want to be treated as such.
They want to be recognized as a major economic power.
China will argue that as a developing country, they are entitled to
use subsidies. They are entitled to put limits on exports and other
policies to promote development of certain key industries such as
automobiles and telecommunications and heavy industrial equipment.
China maintains that such programs are a part of China's industrial
policy and not related to its application to the World Trade
Organization. Many trade officials simply disagree with that assertion
by the Chinese Government. That is a question and that is an issue the
Senate should have the opportunity to debate, not after the fact but
before China is admitted to the World Trade Organization and before the
U.S. Government announces its position on Chinese accession.
A WTO paper, prepared in response to a request from Chinese
negotiators, suggested that industrial policies in China and other
countries could violate the basic principles of nondiscrimination and
national treatment and other WTO rules. They are not in compliance.
They are not ready to join the WTO. Political considerations should not
be the driving force in rushing China into the WTO before they have
made necessary reforms.
Another question I believe we should debate is this: Should China be
given membership in WTO before Taiwan, which is simultaneously seeking
membership? Will it be the position of the U.S. Government that we
support the admission of People's Republic of China to the World Trade
Organization while not yet supporting Taiwan's admission? Which one
should be admitted first? I think that is an important issue. I think
that is one my colleagues in the Senate deserve to have the opportunity
to discuss thoroughly.
Many believe that once China is admitted, they will work feverishly
to block Taiwan's entry, even though Taiwan is a much more developed
Nation, has a much more developed economy, and an economy which is much
more consistent with WTO rules. Yet without a vote of the Senate or a
vote of the House, this administration is prepared to support the
admission of China to the WTO before Taiwan's admission.
I believe this question deserves debate as well: Will a premature
entry by China into WTO hurt American business interests? I know that
large corporate interests in this country support China's immediate
accession to WTO, but many business people in this country have serious
concerns as to how China's admission to WTO will impact them. U.S.
business interests often want permanent MFN for China and would like to
use an agreement on WTO, I believe, as a means to push for this goal,
but many of these business interests are also concerned that China's
WTO accession, without meeting market access and other requirements,
would seriously limit U.S. business access to the Chinese market for a
long time to come. The very access that American business wants so
desperately, we would be locked out of that access permanently or for a
long duration should they be admitted to the World Trade Organization
before they have met market access rules. As a result, many U.S.
interests are pushing U.S. negotiators to remain firm, to stand pat,
and not concede on the conditions of China's entry into the World Trade
Organization.
I believe another question that this body needs to debate is, How
will WTO admission for China affect jobs? Indeed, we should consider
how it would affect our jobs here in the United States.
I remind my colleagues, contained in this very supplemental
appropriations bill, which we are soon prepared to vote on, is a
measure to assist the U.S. steel industry and the jobs that go with it.
Some of those jobs are in my home State of Arkansas, Mississippi
County, Blytheville, AR, the No. 2 ranked county in the Nation in steel
production. According to the Department of Commerce, last year alone
the U.S.-China trade deficit in iron and steel was a $161 million loser
for the United States. The year before that the U.S. realized a steel
trade deficit of $141 million, and in 1996 the deficit was $140
million. Each year the deficit in iron and steel increases
dramatically.
My point is, this Congress should have a say in whether we allow an
agreement to be made when our trade imbalance is what we experience,
even without granting China World Trade Organization status.
At the appropriate time, I would like to see China join the World
Trade Organization and abide by its rules. I do not believe China is
ready at this time to go beyond paying lip service to the fundamental
changes necessary for accession, though I know some of my colleagues do
believe that they are ready. However, I believe we can all agree that
we ought not make this decision hastily. The consequences are too great
and long lasting and, just as importantly, we ought not let the
executive branch make this determination unilaterally.
Article 1 of the Constitution gives to us, the Congress, the express
power over foreign commerce. This decision is too important for us to
cede that power, and this amendment is a means by which we can preserve
our legitimate role in the legislative
Amendments:
Cosponsors:
EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
Sponsor:
Summary:
All articles in Senate section
EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
(Senate - March 18, 1999)
Text of this article available as:
TXT
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[Pages
S2898-S2919]
EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
The Senate continued with the consideration of the bill.
Mr. STEVENS. Mr. President, I ask unanimous consent that the matter
of the order governing the amendment of the Senator from Texas be set
aside so that I may offer an amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 80
(Purpose: To defer section 8 assistance for expiring contracts until
October 1, 1999)
Mr. STEVENS. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Alaska [Mr. Stevens] proposes an amendment
numbered 80.
Inset on page 43, after line 15:
``PUBLIC AND INDIAN HOUSING
``HOUSING CERTIFICATE FUND
``(DEFERRAL)
``Of the funds made available under this heading in Public
Law 105-276 for use in connection with expiring or
terminating section 8 contracts, $350,000,000 shall not
become available until October 1, 1999.''.
On page 42, strike beginning with line 10 through the end
of line 21.
Mr. STEVENS. Mr. President, this is an amendment that deals with the
provision in the bill that was reported from the committee that
deferred spending from the temporary assistance to needy families
account.
This will defer, instead, monies from the section 8 fund of HUD.
There is approximately $1.2 billion in that account. This will defer
for 1 year the use of $350 million in that account. It replaces the
TANF amendment in the bill. Under that amendment, we deferred until
2001 the availability of funds which are transferred to the States.
Because of the misunderstanding about that fund, I want to explain
why we use that fund in the first place. I am once again alarmed over
the misinformation that has been spread by some people in that entity,
that agency, to try and make it look like somehow or other we took
monies away from States or any specific State.
In the first place, these grant awards are made quarterly. Actual
cash outlays are made, but they are not transferred to the States until
the States make expenditures in their TANF programs, the Temporary
Assistance to Needy Families. In other words, the States first make the
payments, and we pay it back. Some people, in the House in particular,
have said this a way that the States can use this money for a piggy
bank. In no way can they take this money and put it into another bank
account and draw interest on it if they comply with the law. That is
one report I have heard--that we are preventing States from taking the
money to put it into their own accounts.
We checked and we found that there was between $3 billion and $3.5
billion at the close of fiscal year 1998 in this fund. There are two
quarters that have not even been distributed yet of this fiscal year
1999. And it is clear that the States have spent some money, and there
is plenty of money to meet the States' expenditures and their requests
for reimbursement of those expenditures. But this is not a fund that
the States can come to willy-nilly and transfer the funds to their
accounts.
Secondly, Mr. President, we deferred this money from obligation in
this fiscal year--really until 2001, October 1, 2001.
The States would not--the bill that was reported from the committee--
lose any of their funds. We, pursuant to the entitlement that was
authorized, agreed that Federal funds, taxpayers' funds, in the amount
of $16.5 billion, from 1997 through 2002, would be placed in this
account, to be available to reimburse States for the expenditures they
made for Assistance to Needy Families.
Nothing in what the Appropriations Committee did harmed that program
at all. But because by October 1 another $16.5 billion would have been
added to $3 billion to $3.5 billion in that account--and there has
never been a drawdown at the rate that would make those funds needed
within that period of time.
This is not a rainy day fund. We have been told that some people have
said that States take these monies and put them in a rainy day fund to
use at a later date. But the law says they can only get them to
reimburse expenditures. If the administration is allowing this fund to
be used as a rainy day account or a piggy bank account, it is wrong.
We have had so many calls from so many States, including my own. And
I see the Senator from New York is here, and I know that they have been
besieged because of their population base. Of course, they are eligible
for more money from this account, more than anyone other than
California. But it depends on how much they spend before they can get
it back.
We made the decision to offset this bill. This is the first time we
have offset totally a supplemental emergency bill. I have said to our
committee, we ought to offset emergency funds with prior appropriated
emergency funds and nonemergency funds with nonemergency prior
appropriated funds. I think we are going to have a little discussion
about that here on the floor.
But clearly what we have done, Mr. President, is we have used this
bill to reprogram prior appropriated funds. These funds that were
appropriated to the TANF account are sitting there waiting for the
States to spend money and then come and ask for it to be repaid. The
process is so rapid that the administration has not paid the first two
quarters of this year yet. So this is not something we have interfered
with by deferring money until the second fiscal year. Because, as I
said, this account would get $16.5 billion credited to it on October 1.
What we have done is, in order to avoid this controversy--and we do
not need a controversy on this bill. We need to get it done. This bill,
in my opinion, is a very important bill. It will provide money for
assistance because of a great natural disaster in a neighboring country
in this hemisphere. The President asked us to declare that an
emergency. We have taken the declaration of emergency through as far as
the outlay categories are concerned, because it is very difficult to
score under the budget process outlays that come from emergency
accounts.
We have not taken an emergency declaration through on those things
that we believe are nonemergency in terms of the authorization process.
So by that I mean, I fail to understand how we should extend the
concept of emergency appropriations to natural disasters off our
shores. We should be able to find the money, if we want to be good
humanitarian members of this hemisphere, to assist our neighbors.
I believe we should assist them. But I do not believe we should use
the laws that were intended to demand taxpayers' funds immediately to
meet natural disasters or declared emergencies by the President of the
United States within the boundaries of our United States.
So Mr. President, I offer this amendment in the spirit of compromise,
to try and take away this battle that I saw coming over the use of TANF
funds. No one supports the concepts of this Temporary Assistance to
Needy Families. We all know it replaced the old Aid to Families with
Dependent Children, the AFDC program, that assisted so many States,
including mine for so many years.
But this now is a block grant program that works in conjunction with
the welfare-to-work concepts, and that is very vital for the States. We
know that. And I think the fear that was engendered in those States
that somehow or other we might not keep the commitment that was made,
that if they make those expenditures we would repay them according to
the formula under the law that was passed in 1996, the Welfare Reform
Act, is unfortunate and wrong.
I hope that someone in the administration is listening. One of these
days I will find some way to tweak the nose of the people who keep
doing this, because they did it in the terms of border guards last
week, and now they are doing it in terms of the States themselves in
terms of the comments that have been made that somehow or other we were
taking money that the States were entitled to; we were deferring money
that they were entitled to,
[[Page
S2899]]
which they would never get under the process of the law anyway until
the time we deferred the expenditures.
As a matter of fact, some people on this side of the aisle have
argued with me to say this is not a full offset because I know that I
am offsetting the expenditures under this bill against a fund that
would never be expended this year. That is partially true. That is why
we have declared an emergency, as far as the outlays, and we have
admitted that, and we have said that is the only way we can do it. But
we need to do it. I hope, in particular, my new friend from New York
will understand that we are doing this to meet his objections and
others, and we do so in the spirit of compromise.
Thank you, Mr. President.
Mr. SCHUMER addressed the Chair.
The PRESIDING OFFICER. The Senator from New York.
Mr. SCHUMER. Thank you, Mr. President.
First, I want to, on behalf of Senator Moynihan and myself, thank
Chairman Stevens, as well as Senator Byrd, for their assistance in
removing the $350 million offset from the TANF, Temporary Assistance
for Needy Families, account, which would have deferred the funds until
2002.
Mr. President, I and many others in New York feared that this offset
set us off on the wrong course, that it would run counter to the
intention of the welfare reform bill which allowed States to set aside
TANF funds for use at a later date when welfare rolls would rise, such
as during a future recession.
My State, as the chairman knows, was particularly affected. The State
was the source of nearly a quarter, about $80 million, of the $350
million that was offset. So I am pleased that the alternative offset
would shift some HUD funds from one fiscal year to the next, funds that
never would have been used. We have checked with both the
administration as well as our side on Housing and on Banking and on
Appropriations, and they agree with that.
I say to the chairman that I appreciate very much the spirit of
compromise in which this was offered. I understand his view and I will
bring that message back to our State. The people of New York will now
be breathing a sigh of relief that this has been replaced.
I also thank the Senator from Pennsylvania, Mr. Santorum, who worked
with me on this. He found his State in a similar position as ours. At
least for my first foray into the Senate legislative process, it has
been a bipartisan and productive effort. For that, I very much thank
the chairman for his understanding of our needs and yield back the
remainder of my time.
Mr. STEVENS. Mr. President, I am going to ask for adoption of the
amendment but I will not move to reconsider because there may be some
who want to discuss this, too. I will make a motion to reconsider this
later today. May I reserve the right to make that later today?
The PRESIDING OFFICER. That motion can be made today or any of the
next 2 following days.
Mr. STEVENS. I shall make it this afternoon, and I ask for the
adoption of the amendment.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 80) was agreed to.
Amendment No. 81
(Purpose: To set forth restrictions on deployment of United States
Armed Forces in Kosovo)
Mrs. HUTCHISON. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Texas [Mrs. Hutchison] proposes an
amendment numbered 81.
Mr. STEVENS. Mr. President, I ask unanimous consent reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 58, between lines 15 and 16, insert the following:
TITLE ____ RESTRICTIONS ON DEPLOYMENT OF UNITED STATES ARMED FORCES IN
KOSOVO
SEC. ____01. SHORT TITLE.
This title may be cited as the ``____________ Act of
1999''.
SEC. ____02. DEFINITION.
In this title, the term ``Yugoslavia'' means the so-called
Federal Republic of Yugoslavia (Serbia and Montenegro).
SEC. ____03. FUNDING LIMITATION.
(a) Limitation.--None of the funds appropriated or
otherwise made available to the Department of Defense,
including funds appropriated for fiscal year 1999 and prior
fiscal years, may be obligated or expended for any deployment
of ground forces of the Armed Forces of the United States to
Kosovo unless and until--
(1) the parties to the conflict in Kosovo have signed an
agreement for the establishment of peace in Kosovo;
(2) the President has transmitted to Congress the report
provided for under section 8115 of Public Law 105-262 (112
Stat. 2327); and
(3) the President has transmitted to the Speaker of the
House of Representatives and the President pro tempore of the
Senate a report containing--
(A) a certification--
(i) that deployment of the Armed Forces of the United
States to Kosovo is in the national security interests of the
United States;
(ii) that--
(I) the President will submit to Congress an amended budget
for the Department of Defense for fiscal year 2000 not later
than 60 days after the commencement of the deployment of the
Armed Forces of the United States to Kosovo that includes an
amount sufficient for such deployment; and
(II) such amended budget will provide for an increase in
the total amount for the major functional budget category 050
(relating to National Defense) for fiscal year 2000 by at
least the total amount proposed for the deployment of the
Armed Forces of the United States to Kosovo (as compared to
the amount provided for fiscal year 2000 for major functional
budget category 050 (relating to National Defense) in the
budget that the President submitted to Congress February 1,
1999); and
(iii) that--
(I) not later than 120 days after the commencement of the
deployment of the Armed Forces of the United States to
Kosovo, forces of the Armed Forces of the United States will
be withdrawn from on-going military operations in locations
where maintaining the current level of the Armed Forces of
the United States (as of the date of certification) is no
longer considered vital to the national security interests of
the United States; and
(II) each such withdrawal will be undertaken only after
consultation with the Majority Leader of the Senate, the
Minority Leader of the Senate, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives;
(B) an explanation of the reasons why the deployment of the
Armed Forces of the United States to Kosovo is in the
national security interests of the United States;
(C) the total number of the United States military
personnel that are to be deployed in Kosovo and the number of
personnel to be committed to the direct support of the
international peacekeeping operation in Kosovo, including
ground troops, air support, logistics support, and
intelligence support;
(D) the percentage that the total number of personnel of
the United States Armed Forces specified in subparagraph (C)
bears to the total number of the military personnel of all
NATO nations participating in the international peacekeeping
operation in Kosovo;
(E) a description of the responsibilities of the United
States military force participating in the international
peacekeeping operation to enforce any provision of the Kosovo
peace agreement; and
(F) a clear identification of the benchmarks for the
withdrawal of the Armed Forces of the United States from
Kosovo, together with a description of those benchmarks and
the estimated dates by which those benchmarks can and will be
achieved.
(b) Consultation.--
(1) In general.--Prior to the conduct of any air operations
by the Armed Forces of the United States against Yugoslavia,
the President shall consult with the joint congressional
leadership and the chairmen and ranking minority members of
the appropriate congressional committees with respect to
those operations.
(2) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Appropriations, the Committee on Armed
Services, the Committee on International Relations, and the
Permanent Select Committee on Intelligence of the House of
Representatives; and
(ii) the Committee on Appropriations, the Committee on
Armed Services, the Committee on Foreign Relations, and the
Select Committee on Intelligence of the Senate.
(B) Joint congressional leadership.--The term ``joint
congressional leadership'' means--
(i) the Speaker of the House of Representatives and the
Majority Leader and the Minority Leader of the House of
Representatives; and
(ii) the Majority Leader and the Minority Leader of the
Senate.
SEC. ____04. REPORT ON PROGRESS TOWARD MEETING BENCHMARKS.
Thirty days after the date of enactment of this Act, and
every 60 days thereafter, the President shall submit to
Congress a detailed report on the benchmarks that are
established to measure progress and determine the withdrawal
of the Armed Forces of the United States from Kosovo. Each
report shall include--
[[Page
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(1) a detailed description of the benchmarks for the
withdrawal of the Armed Forces from Kosovo;
(2) the objective criteria for evaluating successful
achievement of the benchmarks;
(3) an analysis of the progress made in achieving the
benchmarks;
(4) a comparison of the current status on achieving the
benchmarks with the progress described in the last report
submitted under this section;
(5) the specific responsibilities assigned to the
implementation force in assisting in the achievement of the
benchmarks;
(6) the estimated timetable for achieving the benchmarks;
and
(7) the status of plans and preparations for withdrawal of
the implementing force once the objective criteria for
achieving the benchmarks have been met.
SEC. ____05. STATUTORY CONSTRUCTION.
Nothing in this title restricts the authority of the
President to protect the lives of United States citizens.
Mr. STEVENS. Mr. President, I ask unanimous consent the amendment now
be laid aside and no call for regular order, except one made by myself
or the mover of the amendment, the Senator from Texas, serve to bring
back the pending amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. STEVENS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendments Nos. 82 Through 88, En Bloc
Mr. STEVENS. Mr. President, I have a package of amendments that have
been cleared and I would like to say for the record what they are. They
are:
An amendment by Senator McCain to extend the Aviation Insurance
Program through May 31, 1999.
An amendment by Senator Grassley providing $1.4 million to expedite
adjudication of civil monetary penalties by the Health and Human
Services Appeal Board. It also provides for an offset for that amount
of $1.4 million.
We have Senator Shelby's amendment which makes a technical correction
to title IV.
We have an amendment by Senator Byrd making a technical correction to
the Emergency Steel Loan Guarantee Program in the bill.
An amendment by Senator Frist and Senator Thompson providing $3.2
million for repairs to Jackson, TN, Army aviation facility damaged by a
tornado in January. It also provides for an offset in the same amount.
An amendment by myself for a technical correction to the current
year, 1999's Commerce-Justice-State bill, and provides for rules on the
taking of Beluga whales.
I send these amendments to the desk and ask unanimous consent that
they be considered en bloc.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report.
The bill clerk read as follows:
The Senator from Alaska [Mr. Stevens], for himself, Mr.
McCain, Mr. Grassley, Mr. Shelby, Mr. Byrd, Mr. Frist and Mr.
Thompson, proposes amendments numbered 82 through 88, en
bloc, as follows:
AMENDMENT NO. 82
(Purpose: To extend the aviation insurance program through May 31,
1999)
At the appropriate place, insert the following:
SEC. 17. EXTENSION OF AVIATION INSURANCE PROGRAM.
Section 44310 of title 49, United States Code, is amended
by striking ``March 31, 1999.'' and inserting ``May 31,
1999.''.
____
AMENDMENT NO. 83
(Purpose: Expediting adjudication of civil monetary penalties by the
Department of Health and Human Services Appeals Board)
On page 29, insert after line 10:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office of the Secretary
General Departmental Management
For an additional amount for `'general departmental
management'', $1,400,000, to reduce the backlog of pending
nursing home appeals before the Departmental Appeals Board.
On page 42, line 8, strike $3,116,076,000 and insert
$3,114,676,000
On page 42, line 9, strike $164,933,000 and insert
$163,533,000.
Mr. GRASSLEY. Mr. President, I am offering this amendment to speed up
adjudication, by the appeals board of the Department of Health and
Human Services, of appeals from nursing facilities of civil monetary
penalties levied by the Health Care Financing Administration (HCFA) for
violations of standards established pursuant to the Nursing Home Reform
Act of 1987. Currently, there is a substantial backlog of some 701 such
cases. Delay in final adjudication of such cases subverts the purpose
and effect of civil monetary penalties, delaying corrective action, and
improvements in the quality of care offered by nursing facilities.
Delays in adjudication of these cases also burdens nursing facilities
through additional legal fees and the perpetuation of uncertainty
caused by unresolved disputes.
The number of such cases filed each year by nursing facilities has
increased each year since 1995, the year when regulations for the
Nursing Home Reform Act's enforcement standards went into effect.
Currently, as I noted earlier in my statement, there are 701 such cases
pending.
Mr. President, the steady increase in appeals of civil monetary
penalties since 1995 shows the effect of increased use, by the States
and HCFA, of the enforcement regulations which went into effect in
1995. Nevertheless, in hearings I held in the Special Committee on
Aging last July, the General Accounting Office reported that nursing
facilities providing poor quality of care regularly escaped sanctions
which could cause care to be improved. The pattern seemed to be that a
facility would be sanctioned for poor quality of care, be required to
attest in writing through a plan of correction that steps had been
taken to improve care, and then be found deficient on the next visit
from State officials. This pattern often continued for long periods of
time. And when sanctions such as civil monetary penalties were levied
by HCFA, the sanctioned facilities would appeal, causing lengthy delays
in final resolution of the case.
One week before my July hearings, President Clinton launched a
variety of new initiatives designed to improve the quality of care in
nursing facilities. Among those new initiatives was one designed to
eliminate paper compliance with quality standards and to proceed more
quickly to sanctions for those homes with a history of poor care.
The upshot of oversight by the Special Committee on Aging and the
Presidential initiatives is that there has been a substantial increase
thus far in 1999 of appeals of civil monetary penalties by nursing
facilities.
Certainly, facilities have the right to appeal sanctions levied by
HCFA. But it is also important that appeals be heard and resolved in a
reasonable amount of time. Delay subverts improvement in the quality of
care in nursing facilities as real deficiencies go uncorrected. Delay
also slows the development of precedents which would clarify
outstanding issues. Slow development of such precedents encourages
facilities and their legal representatives to file appeals because
guidance as to the worthiness of an appeal is lacking. And, as the body
of precedents becomes more complete, adjudication of cases becomes
speedier.
The root problem has been that the departmental appeals board does
not have sufficient resources to keep up with the increase in new
cases, to say nothing of working off the current backlog of cases. I am
given to understand that, at the present time about 25 new cases are
filed with the appeals board each week. As will be clear from the table
I am attaching to my statement, the number of cases decided each year
has averaged around 23 for the last 3 years. Clearly, the board is
swamped and needs help.
The President's budget for fiscal year 2000 proposes $2.8 million for
the board. Were the Congress to provide those funds, it will certainly
take time for the appeals board to gear up and begin to speed up
adjudication of appeals.We can't wait to begin addressing this problem,
Mr. President. The amendment I offer would provide $1.4 million to be
made available through the supplemental appropriation we are now
considering. I have not proposed to provide the full $2.8 million the
President's budget proposes for the next fiscal year because the
appeals board could not effectively spend that amount in what remains
of the fiscal year. Therefore, I have essentially prorated that amount
over the time remaining in this fiscal year.
amendment no. 84
At the appropriate place in the bill, insert:
[[Page
S2901]]
Sec. . Title 49 Recodification Correction.--Effective
December 31, 1998, section 4(k) of the Act of July 5, 1994
(Public Law 103-272, 108 Stat. 1370), as amended by section
7(a)(3)(D) of the Act of October 31, 1994 (Public Law 103-
429, 108 Stat. 4329), is repealed.
amendment no. 85
(Purpose: To make a technical correction)
On page 16, strike beginning with line 12 through page 23,
line 8, and insert the following:
Emergency Steel Loan Guarantee Program. (a) Short Title.--
This section may be cited as the ``Emergency Steel Loan
Guarantee Act of 1999''.
(b) Congressional Findings.--Congress finds that--
(1) the United States steel industry has been severely
harmed by a record surge of more than 40,000,000 tons of
steel imports into the United States in 1998, caused by the
world financial crisis;
(2) this surge in imports resulted in the loss of more than
10,000 steel worker jobs in 1998, and was the imminent cause
of 3 bankruptcies by medium-sized steel companies, Acme
Steel, Laclede Steel, and Geneva Steel;
(3) the crisis also forced almost all United States steel
companies into--
(A) reduced volume, lower prices, and financial losses; and
(B) an inability to obtain credit for continued operations
and reinvestment in facilities;
(4) the crisis also has affected the willingness of private
banks and investment institutions to make loans to the U.S.
steel industry for continued operation and reinvestment in
facilities;
(5) these steel bankruptcies, job losses, and financial
losses are also having serious negative effects on the tax
base of cities, counties, and States, and on the essential
health, education, and municipal services that these
government entities provide to their citizens; and
(6) a strong steel industry is necessary to the adequate
defense preparedness of the United States in order to have
sufficient steel available to build the ships, tanks, planes,
and armaments necessary for the national defense.
(c) Definitions.--For purposes of this section--
(1) the term ``Board'' means the Loan Guarantee Board
established under subsection (e);
(2) the term ``Program'' means the Emergency Steel
Guaranteed Loan Program established under subsection (d); and
(3) the term ``qualified steel company'' means any company
that--
(A) is incorporated under the laws of any State;
(B) is engaged in the production and manufacture of a
product defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and billets,
plates, flat-rolled steel, sections and structural products,
bars, rail type products, pipe and tube, and wire rod; and
(C) has experienced layoffs, production losses, or
financial losses since the beginning of the steel import
crisis, after January 1, 1998.
(d) Establishment of Emergency Steel Guaranteed Loan
Program.--There is established the Emergency Steel Guaranteed
Loan Program, to be administered by the Board, the purpose of
which is to provide loan guarantees to qualified steel
companies in accordance with this section.
(e) Loan Guarantee Board Membership.--There is established
a Loan Guarantee Board, which shall be composed of--
(1) the Secretary of Commerce, who shall serve as Chairman
of the Board;
(2) the Secretary of Labor; and
(3) the Secretary of the Treasury.
(f) Loan Guarantee Program.--
(1) Authority.--The Program may guarantee loans provided to
qualified steel companies by private banking and investment
institutions in accordance with the procedures, rules, and
regulations established by the Board.
(2) Total guarantee limit.--The aggregate amount of loans
guaranteed and outstanding at any 1 time under this section
may not exceed $1,000,000,000.
(3) Individual guarantee limit.--The aggregate amount of
loans guaranteed under this section with respect to a single
qualified steel company may not exceed $250,000,000.
(4) Minimum guarantee amount.--No single loan in an amount
that is less than $25,000,000 may be guaranteed under this
section.
(5) Timelines.--The Board shall approve or deny each
application for a guarantee under this section as soon as
possible after receipt of such application.
(6) Additional costs.--For the additional cost of the loans
guaranteed under this subsection, including the costs of
modifying the loans as defined in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a), there is
appropriated $140,000,000 to remain available until expended.
(g) Requirements for Loan Guarantees.--A loan guarantee may
be issued under this section upon application to the Board by
a qualified steel company pursuant to an agreement to provide
a loan to that qualified steel company by a private bank or
investment company, if the Board determines that--
(1) credit is not otherwise available to that company under
reasonable terms or conditions sufficient to meet its
financing needs, as reflected in the financial and business
plans of that company;
(2) the prospective earning power of that company, together
with the character and value of the security pledged, furnish
reasonable assurance of repayment of the loan to be
guaranteed in accordance with its terms;
(3) the loan to be guaranteed bears interest at a rate
determined by the Board to be reasonable, taking into account
the current average yield on outstanding obligations of the
United States with remaining periods of maturity comparable
to the maturity of such loan; and
(4) the company has agreed to an audit by the General
Accounting Office, prior to the issuance of the loan
guarantee and annually while any such guaranteed loan is
outstanding.
(h) Terms and Conditions of Loan Guarantees.--
(1) Loan duration.--All loans guaranteed under this section
shall be payable in full not later than December 31, 2005,
and the terms and conditions of each such loan shall provide
that the loan may not be amended, or any provision thereof
waived, without the consent of the Board.
(2) Loan security.--Any commitment to issue a loan
guarantee under this section shall contain such affirmative
and negative covenants and other protective provisions that
the Board determines are appropriate. The Board shall require
security for the loans to be guaranteed under this section at
the time at which the commitment is made.
(3) Fees.--A qualified steel company receiving a guarantee
under this section shall pay a fee in an amount equal to 0.5
percent of the outstanding principal balance of the
guaranteed loan to the Department of the Treasury.
(i) Reports to Congress.--The Secretary of Commerce shall
submit to Congress annually, a full report of the activities
of the Board under this section during fiscal years 1999 and
2000, and annually thereafter, during such period as any loan
guaranteed under this section is outstanding.
(j) Salaries and Administrative Expenses.--For necessary
expenses to administer the Program, $5,000,000 is
appropriated to the Department of Commerce, to remain
available until expended, which may be transferred to the
Office of the Assistant Secretary for Trade Development of
the International Trade Administration.
(k) Termination of Guarantee Authority.--The authority of
the Board to make commitments to guarantee any loan under
this section shall terminate on December 31, 2001.
(l) Regulatory Action.--The Board shall issue such final
procedures, rules, and regulations as may be necessary to
carry out this section not later than 60 days after the date
of enactment of this Act.
(m) Emergency Designation.--The entire amount made
available to carry out this section--
(1) is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(A)); and
(2) shall be available only to the extent that an official
budget request that includes designation of the entire amount
of the request as an emergency requirement (as defined in the
Balanced Budget and Emergency Deficit Control Act of 1985) is
transmitted by the President to Congress.
AMENDMENT NO. 86
(Purpose: To increase, with a rescission, the supplemental
appropriations for fiscal year 1999 for military construction for the
Army National Guard)
On page 30, line 1, strike ``$11,300,000'' and insert
``$14,500,000''.
On page 43, line 12, strike ``$11,300,000'' and insert
``$14,500,000''.
amendment no. 87
At the appropriate place in the bill, insert:
Sec. . Notwithstanding any other provision of law, the
taking of a Cook Inlet beluga whale under the exemption
provided in section 101(b) of the Marine Mammal Protection
Act (16 U.S.C. 1371(a)) between the date of the enactment of
this Act and October 1, 2000 shall be considered a violation
of such Act unless such taking occurs pursuant to a
cooperative agreement between the National Marine Fisheries
Service and Cook Inlet Marine Mammal Commission.
amendment no. 88
At the appropriate place in the bill, insert:
Sec. . Funds provided in the Department of Commerce,
Justice and State, the Judiciary, and Related Agencies
Appropriations Act, 1999 (P.L. 105-277, Division A, Section
101(b)) for the construction of correctional facility in
Barrow, Alaska shall be made available to the North Slope
Borough.
The PRESIDING OFFICER. Without objection, the amendments are agreed
to en bloc.
The amendments (Nos. 82 through 88) were agreed to.
Mr. STEVENS. Mr. President, the Senator from Arkansas, Mr.
Hutchinson, is here and he will offer an amendment. After he has
presented his amendment, I state to the Senator it will be my intention
to move to table his amendment.
I ask unanimous consent that the vote on that motion to table and the
vote on the motion to table the Harkin amendment occur at 2:30.
[[Page
S2902]]
Mr. HARKIN. Torricelli.
Mr. STEVENS. Torricelli/Harkin amendment occur at 2:30.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I thank the Chair.
Mr. HUTCHINSON addressed the Chair.
The PRESIDING OFFICER. The Senator from Arkansas.
Amendment No. 89
(Purpose: To require prior congressional approval before the United
States supports the admission of the People's Republic of China into
the World Trade Organization)
Mr. HUTCHINSON. I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
The Senator from Arkansas [Mr. Hutchinson] proposes an
amendment numbered 89.
Mr. HUTCHINSON. Mr. President, I ask unanimous consent that reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the appropriate place, insert the following new section:
SEC. ____. PRIOR CONGRESSIONAL APPROVAL FOR SUPPORTING
ADMISSION OF CHINA INTO THE WTO.
(a) In General.--Notwithstanding any other provision of
law, the United States may not support the admission of the
People's Republic of China as a member of the World Trade
Organization unless a provision of law is passed by both
Houses of Congress and enacted into law after the enactment
of this Act that specifically allows the United States to
support such admission.
(b) Procedures for Congressional Approval of United States
Support for Admission of China Into the WTO.--
(1) Notification of congress.--The President shall notify
the Congress in writing if the President determines that the
United States should support the admission of the People's
Republic of China into the World Trade Organization.
(2) Support of china's admission into the wto.--The United
States may support the admission of the People's Republic of
China into the World Trade Organization if a joint resolution
is enacted into law under subsection (c) and the Congress
adopts and transmits the joint resolution to the President
before the end of the 90-day period (excluding any day
described in section 154(b) of the Trade Act of 1974),
beginning on the date on which the Congress receives the
notification referred to in paragraph (1).
(c) Joint Resolution.--
(1) Joint resolution.--For purposes of this section, the
term ``joint resolution'' means only a joint resolution of
the 2 Houses of Congress, the matter after the resolving
clause of which is as follows: ``That the Congress approves
the support of the United States for the admission of the
People's Republic of China into the World Trade
Organization.''.
(2) Procedures.--
(A) In general.--A joint resolution may be introduced at
any time on or after the date on which the Congress receives
the notification referred to in subsection (b)(1), and before
the end of the 90-day period referred to in subsection
(b)(2). A joint resolution may be introduced in either House
of the Congress by any member of such House.
(B) Application of section 152.--Subject to the provisions
of this subsection, the provisions of subsections (b), (d),
(e), and (f) of section 152 of the Trade Act of 1974 (19
U.S.C. 2192(b), (d), (e), and (f)) apply to a joint
resolution under this section to the same extent as such
provisions apply to resolutions under section 152.
(C) Discharge of committee.--If the committee of either
House to which a joint resolution has been referred has not
reported it by the close of the 45th day after its
introduction (excluding any day described in section 154(b)
of the Trade Act of 1974), such committee shall be
automatically discharged from further consideration of the
joint resolution and it shall be placed on the appropriate
calendar.
(D) Consideration by appropriate committee.--It is not in
order for--
(i) the Senate to consider any joint resolution unless it
has been reported by the Committee on Finance or the
committee has been discharged under subparagraph (C); or
(ii) the House of Representatives to consider any joint
resolution unless it has been reported by the Committee on
Ways and Means or the committee has been discharged under
subparagraph (C).
(E) Consideration in the house.--A motion in the House of
Representatives to proceed to the consideration of a joint
resolution may only be made on the second legislative day
after the calendar day on which the Member making the motion
announces to the House his or her intention to do so.
(3) Consideration of second resolution not in order.--It
shall not be in order in either the House of Representatives
or the Senate to consider a joint resolution (other than a
joint resolution received from the other House), if that
House has previously adopted a joint resolution under this
section.
Mr. HARKIN. Mr. President, parliamentary inquiry, if I might.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. HARKIN. I am just trying to find out from the Senator, is there a
time allotment or not?
Mr. STEVENS. When the Senator finishes, I will make a motion to
table. It should be about 1 o'clock.
Mr. HARKIN. I just didn't know----
Mr. STEVENS. Mr. President, we have not asked for a time limitation
on the Senator making his presentation, but he knows that as soon as he
finishes, I will make a motion to table.
Mr. HARKIN. The Senator is going to table both at 2:30?
Mr. STEVENS. Mr. President, I will make a motion to table the
amendment of the Senator from Arkansas, and after the Senator from
Iowa, I will make a motion, but I got unanimous consent that those
votes occur at 2:30.
Mr. HARKIN. That is fine with me. I just wanted to make sure.
Mr. BAUCUS. Mr. President, who has the floor?
Mr. STEVENS. The Senator from Arkansas has the floor.
The PRESIDING OFFICER. The Senator from Arkansas has the floor.
Mr. BAUCUS. Mr. President, will the Senator yield for a question--for
a parliamentary inquiry?
Mr. HUTCHINSON. I will be glad to yield.
Mr. BAUCUS. I understand the distinguished Senator from Alaska is
saying he is going to move to table. I would like to speak on the
amendment, but the Senator is moving to table as soon as the Senator is
finished.
Mr. STEVENS. Mr. President, I would be pleased if the Senator would
agree to try to reach a time agreement on that, because we have other
Senators wishing to offer amendments this afternoon also.
Mr. President, may I ask the Senator, first, that the Senator yield
to me? I apologize.
Mr. HUTCHINSON. I will be glad to yield to the distinguished
chairman.
Mr. STEVENS. How much time would the Senator like to have?
Mr. HUTCHINSON. I think for my presentation I probably only need 15
minutes. If there are those who speak against the amendment, I would
like to yield proportionally then.
Mr. STEVENS. Mr. President, if I still have the floor, how much time
does the Senator from Montana seek?
Mr. BAUCUS. I was thinking of 10, 15 minutes.
Mr. STEVENS. Could we have an agreement that there be 30 minutes on
this amendment? Is the Senator from Montana speaking against the
amendment?
Mr. BAUCUS. I am speaking against the amendment.
The PRESIDING OFFICER. Is there objection?
Mr. BAUCUS. Mr. President, reserving the right to object----
Mr. STEVENS. I am seeking a limitation of 30 minutes on the
amendment, that the time following that time to be--I will make a
motion to table, only a motion to table be in order.
The PRESIDING OFFICER. Is there objection? Without objection----
Mr. STEVENS. Mr. President, I am informed that Senators Roth and
Moynihan wish to speak, and I ask unanimous consent that the time be
expanded to 40 minutes to be followed only by a motion to table offered
by me.
Mr. HUTCHINSON. Reserving the right to object.
Mr. STEVENS. Forty-five minutes. The Senator wants to close.
Mr. HUTCHINSON. I suspect the others the Senator mentioned are going
to speak in opposition. There are some who might want to speak in
favor. If we are going to extend the time afforded Senators who want to
speak against, I think we might have trouble extending the time with
that restriction.
Mr. STEVENS. Mr. President, I do desire to limit the time if
possible, so we can have a vote when the Senate comes back out of that
conference.
Could we agree to 30 minutes on a side? Is there objection to 30
minutes on a side? I renew my request----
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. The agreement then is 1 hour equally divided?
The PRESIDING OFFICER. That is correct.
Mr. STEVENS. I thank the Chair.
[[Page
S2903]]
The PRESIDING OFFICER. The Senator from Arkansas.
Mr. HUTCHINSON. I thank the Chair.
This is a very straightforward amendment that simply says that before
China can be admitted to the World Trade Organization, there will have
to be a joint resolution passed by the Congress supporting that
accession of China to the World Trade Organization.
It is very simple. It is simply saying we should have a voice in
this. We should not have the administration arbitrarily and
unilaterally making a very, very significant and major decision without
the input of the U.S. Congress and this body. It does not prejudge what
should happen. It does not say whether China should be in or not. There
may be very compelling arguments that could be presented in such a
debate. But it does say that before China is admitted to the World
Trade Organization, every Senator in this body ought to have an
opportunity to look at the evidence and have a say in the outcome of
that debate. That is why we need this amendment, because Congress needs
to, once again, assert its constitutional responsibility in the area of
foreign commerce.
I believe we must do it now for a couple of reasons. It is the only
opportunity we are going to have before the recess, and our only
opportunity before Zhu Rongji visits this Nation next month. He will
come during our Easter recess. So, if Congress is going to have any
kind of statement on this, if we are going to be able to take any kind
of action on this, we must take it now.
I know some of my colleagues will say this should have gone through
committee. In an ideal world I would agree. It is very straightforward.
I do not think it would require a great deal of debate, as to whether
someone is for it or against it, but ideally that is where it should
have gone. But, once again, the stream of negotiations that have taken
place in recent weeks between our country and the Chinese Government,
with our officials going to China--Deputy Treasury Secretary Larry
Summers, Secretary of State Albright, U.S. Trade Representative
Charlene Barshefsky have all been making repeated trips to China--
negotiating, obviously; attempting to broker a deal on the World Trade
Organization accession of China.
If we wait for an announcement by the administration that a deal has
been reached, an announcement by the administration that the outlines
of an agreement have been reached, we will make China's membership in
the WTO a fait accompli. Any effort to stop it after the fact, after
the negotiations are completed and after an agreement has been
announced, I think will be too late for this body to really make a
difference.
The amendment is, as I said, very straightforward. It would require a
joint resolution to be passed before the United States could support
admission of China into the WTO. Again, it does not preclude our
support for China's entry. It simply sends a clear statement that
Congress should be involved in the process of deciding U.S. support for
China's accession into the WTO. The administration should not make any
hasty deals with China. We must give careful consideration to the
timing as well as to the consequences of Chinese accession. Congress
must be thoroughly involved in that debate.
We cannot negotiate a trade deal with the most populous nation in the
world, and, as we hear so often, the largest market in the world, in a
vacuum. There are certain facts that we must face; there is a political
environment in which all of these negotiations are occurring. The
Chinese have used espionage to obtain important nuclear secrets from
the United States. That is a matter that must be fully investigated. I
believe it will be. I believe the appropriate oversight committees are
moving expeditiously to investigate. But it certainly is not going to
happen before we go out on the Easter recess. We may have hearings next
week, but we will not see the end of this, we will not have all the
facts on the table, before the Easter recess and before Zhu Rongji
visits this country.
Another fact that faces us is our trade deficit with the Chinese is
at an alarming all-time high of $56.9 billion for 1998. It is rising
exponentially every year. That reality ought to cause us to pause
before we see the administration rush into a WTO deal. The Chinese
continue to keep many of their markets closed, particularly to our
agricultural sector, our farmers, who are in such crisis.
The Chinese have signed and blatantly disregarded the International
Covenant on Civil and Political Rights and have engaged in a widespread
crackdown on prodemocracy activists in China, effectively silencing all
political dissent. We cannot give WTO membership in a vacuum, ignoring
all other realities that face us. The 1999 State Department report on
China, released in the last few weeks, demonstrably proves China's
ignoring of the very covenant on civil and political rights that they
signed last year. If we cannot trust them to live up to a human rights
covenant that they signed, how can we assume they are going to live
according to the rules and the obligations of the World Trade
Organization? There is an issue of trust. They have not justified the
trust we would show in placing them in the World Trade Organization.
Article I of the Constitution gives Congress express power over
foreign commerce. There is no question but that this is our right.
There is no question in this Senator's mind that it is our
responsibility to step forward and say: WTO membership for China will
not be granted without a debate in the House and Senate and a joint
resolution.
There are serious questions that the House and the Senate need to
address. For us to sit back and go off on our Easter vacation, to go
off on recess, to hold our town meetings or to take our trips around
the world, and to have been silent on this issue, I think, at this
time, will be indefensible. I suspect there will be some kind of
announcement on the U.S. position on China's membership in the WTO
while we are gone. Then we would never have had the opportunity to
debate very important questions.
I do not have all of the answers to these questions, but I know they
are serious questions and I know the Senator from Montana, the Senator
from Alabama, who was on the floor just a moment ago, and myself ought
to have a right, before we have the United States taking a position on
WTO membership, to debate that on the floor of the Senate, to
thoroughly examine the questions that have not yet been answered.
One question I would have is this: Are we lowering the WTO bar for
China, to rush them into membership?
Since 1995, four countries have completed negotiations on accession
protocol: Ecuador, Mongolia, Bulgaria, and Panama. All four of these
nations were required to eliminate, on the date of accession or with
very short transitions, trade practices that were incompatible with WTO
rules. That has been the standard. Since 1995 the four nations that
have sought to enter the WTO have been required to eliminate their
trade practices that were incompatible with WTO rules. But China has
firmly and continuously and repeatedly said they want a different
standard. They want a longer transition period. They do not want to
meet those WTO rules at the time of or soon after their accession to
the WTO. That is a question I believe this body deserves the
opportunity to investigate and debate thoroughly before we announce a
national position regarding China's admission.
Another question I think is a serious question for debate: Are we
allowing China into the WTO before they have made the kind of market
reforms to bring them into conformity with WTO standards? The
administration argues if we will just let China in, we will have
greater influence on China's reform efforts than we do now while they
are outside of the World Trade Organization. I suppose that is
debatable. But we ought to have the opportunity to have that debate.
In my estimation, our influence on China would be far greater before
they are admitted to the World Trade Organization than afterwards. Our
ability to influence the kind of reforms the World Trade Organization
would desire will be far greater if we say you are going to accrue the
benefits of trade under the WTO only after these market reforms have
taken place, these trade barriers have been lowered. Reforms should
first be enacted, changes should first occur, and then membership
should be granted --not vice versa.
[[Page
S2904]]
I think this question deserves debate: Can China be trusted on trade
issues? When we look at our exploding trade deficit with China, can
they be trusted on trade issues if admitted to the World Trade
Organization, or will we admit them to the World Trade Organization and
then find them cavalierly ignoring the standards and the rules of the
World Trade Organization? Our administration's own Trade Representative
Barshefsky stated in her testimony, a little over 2 years ago, in
reference to China, that ``China imposes new import barriers to replace
those it removed.'' In other words, there can be the appearance of
reform taking place, but if there are new barriers that are being
erected while the old ones are being brought down, you really have not
achieved the reforms necessary for World Trade Organization membership.
China has almost one-third of its industrial production controlled by
the state. Almost two-thirds of urban workers are employed in state-
owned enterprises. These state-owned enterprises are notorious for
their ability to destroy wealth. Some economists estimate that it would
be cheaper for China to close down their state-owned enterprises and
keep paying the workers--close down the enterprises, go ahead and pay
them their salaries, they would still come out ahead, than to keep
operating. But because the state-owned enterprises would be vulnerable
to foreign competition, the Chinese Government has a strong
disincentive to the state-owned enterprises that are heavily subsidized
through China's centralized and insolvent banking system.
One of the pledges that the Chinese Government made was that they
would rapidly privatize the state-owned enterprises, shutting down
those that they had to, privatizing others, allowing them to create
capital by selling stock, but because of the recent economic downturn
in China in which their robust growth rate has dropped appreciably,
China now has backed off that pledge and has once again begun a round
of bank loans to these very unprofitable, state-owned enterprises to
subsidize them and to keep them in business.
This is backpedaling already on the kinds of reforms that would be
expected if China were in fact ready for admission to the World Trade
Organization.
Another question that this body needs to debate is, Should China be
admitted as a developing country with far less stringent expectations
and longer transition than allowed for other nations? That is what they
desire. They say we are a developing Nation; therefore, we should be
treated more leniently. They base their claim primarily upon their per
capita gross domestic product. By every other measure, China is a major
economic power in the world today and they want to be treated as such.
They want to be recognized as a major economic power.
China will argue that as a developing country, they are entitled to
use subsidies. They are entitled to put limits on exports and other
policies to promote development of certain key industries such as
automobiles and telecommunications and heavy industrial equipment.
China maintains that such programs are a part of China's industrial
policy and not related to its application to the World Trade
Organization. Many trade officials simply disagree with that assertion
by the Chinese Government. That is a question and that is an issue the
Senate should have the opportunity to debate, not after the fact but
before China is admitted to the World Trade Organization and before the
U.S. Government announces its position on Chinese accession.
A WTO paper, prepared in response to a request from Chinese
negotiators, suggested that industrial policies in China and other
countries could violate the basic principles of nondiscrimination and
national treatment and other WTO rules. They are not in compliance.
They are not ready to join the WTO. Political considerations should not
be the driving force in rushing China into the WTO before they have
made necessary reforms.
Another question I believe we should debate is this: Should China be
given membership in WTO before Taiwan, which is simultaneously seeking
membership? Will it be the position of the U.S. Government that we
support the admission of People's Republic of China to the World Trade
Organization while not yet supporting Taiwan's admission? Which one
should be admitted first? I think that is an important issue. I think
that is one my colleagues in the Senate deserve to have the opportunity
to discuss thoroughly.
Many believe that once China is admitted, they will work feverishly
to block Taiwan's entry, even though Taiwan is a much more developed
Nation, has a much more developed economy, and an economy which is much
more consistent with WTO rules. Yet without a vote of the Senate or a
vote of the House, this administration is prepared to support the
admission of China to the WTO before Taiwan's admission.
I believe this question deserves debate as well: Will a premature
entry by China into WTO hurt American business interests? I know that
large corporate interests in this country support China's immediate
accession to WTO, but many business people in this country have serious
concerns as to how China's admission to WTO will impact them. U.S.
business interests often want permanent MFN for China and would like to
use an agreement on WTO, I believe, as a means to push for this goal,
but many of these business interests are also concerned that China's
WTO accession, without meeting market access and other requirements,
would seriously limit U.S. business access to the Chinese market for a
long time to come. The very access that American business wants so
desperately, we would be locked out of that access permanently or for a
long duration should they be admitted to the World Trade Organization
before they have met market access rules. As a result, many U.S.
interests are pushing U.S. negotiators to remain firm, to stand pat,
and not concede on the conditions of China's entry into the World Trade
Organization.
I believe another question that this body needs to debate is, How
will WTO admission for China affect jobs? Indeed, we should consider
how it would affect our jobs here in the United States.
I remind my colleagues, contained in this very supplemental
appropriations bill, which we are soon prepared to vote on, is a
measure to assist the U.S. steel industry and the jobs that go with it.
Some of those jobs are in my home State of Arkansas, Mississippi
County, Blytheville, AR, the No. 2 ranked county in the Nation in steel
production. According to the Department of Commerce, last year alone
the U.S.-China trade deficit in iron and steel was a $161 million loser
for the United States. The year before that the U.S. realized a steel
trade deficit of $141 million, and in 1996 the deficit was $140
million. Each year the deficit in iron and steel increases
dramatically.
My point is, this Congress should have a say in whether we allow an
agreement to be made when our trade imbalance is what we experience,
even without granting China World Trade Organization status.
At the appropriate time, I would like to see China join the World
Trade Organization and abide by its rules. I do not believe China is
ready at this time to go beyond paying lip service to the fundamental
changes necessary for accession, though I know some of my colleagues do
believe that they are ready. However, I believe we can all agree that
we ought not make this decision hastily. The consequences are too great
and long lasting and, just as importantly, we ought not let the
executive branch make this determination unilaterally.
Article 1 of the Constitution gives to us, the Congress, the express
power over foreign commerce. This decision is too important for us to
cede that power, and this amendment is a means by which we can preserve
our legitimate role in the legislative branch.
Major Actions:
All articles in Senate section
EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
(Senate - March 18, 1999)
Text of this article available as:
TXT
PDF
[Pages
S2898-S2919]
EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 1999
The Senate continued with the consideration of the bill.
Mr. STEVENS. Mr. President, I ask unanimous consent that the matter
of the order governing the amendment of the Senator from Texas be set
aside so that I may offer an amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 80
(Purpose: To defer section 8 assistance for expiring contracts until
October 1, 1999)
Mr. STEVENS. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Alaska [Mr. Stevens] proposes an amendment
numbered 80.
Inset on page 43, after line 15:
``PUBLIC AND INDIAN HOUSING
``HOUSING CERTIFICATE FUND
``(DEFERRAL)
``Of the funds made available under this heading in Public
Law 105-276 for use in connection with expiring or
terminating section 8 contracts, $350,000,000 shall not
become available until October 1, 1999.''.
On page 42, strike beginning with line 10 through the end
of line 21.
Mr. STEVENS. Mr. President, this is an amendment that deals with the
provision in the bill that was reported from the committee that
deferred spending from the temporary assistance to needy families
account.
This will defer, instead, monies from the section 8 fund of HUD.
There is approximately $1.2 billion in that account. This will defer
for 1 year the use of $350 million in that account. It replaces the
TANF amendment in the bill. Under that amendment, we deferred until
2001 the availability of funds which are transferred to the States.
Because of the misunderstanding about that fund, I want to explain
why we use that fund in the first place. I am once again alarmed over
the misinformation that has been spread by some people in that entity,
that agency, to try and make it look like somehow or other we took
monies away from States or any specific State.
In the first place, these grant awards are made quarterly. Actual
cash outlays are made, but they are not transferred to the States until
the States make expenditures in their TANF programs, the Temporary
Assistance to Needy Families. In other words, the States first make the
payments, and we pay it back. Some people, in the House in particular,
have said this a way that the States can use this money for a piggy
bank. In no way can they take this money and put it into another bank
account and draw interest on it if they comply with the law. That is
one report I have heard--that we are preventing States from taking the
money to put it into their own accounts.
We checked and we found that there was between $3 billion and $3.5
billion at the close of fiscal year 1998 in this fund. There are two
quarters that have not even been distributed yet of this fiscal year
1999. And it is clear that the States have spent some money, and there
is plenty of money to meet the States' expenditures and their requests
for reimbursement of those expenditures. But this is not a fund that
the States can come to willy-nilly and transfer the funds to their
accounts.
Secondly, Mr. President, we deferred this money from obligation in
this fiscal year--really until 2001, October 1, 2001.
The States would not--the bill that was reported from the committee--
lose any of their funds. We, pursuant to the entitlement that was
authorized, agreed that Federal funds, taxpayers' funds, in the amount
of $16.5 billion, from 1997 through 2002, would be placed in this
account, to be available to reimburse States for the expenditures they
made for Assistance to Needy Families.
Nothing in what the Appropriations Committee did harmed that program
at all. But because by October 1 another $16.5 billion would have been
added to $3 billion to $3.5 billion in that account--and there has
never been a drawdown at the rate that would make those funds needed
within that period of time.
This is not a rainy day fund. We have been told that some people have
said that States take these monies and put them in a rainy day fund to
use at a later date. But the law says they can only get them to
reimburse expenditures. If the administration is allowing this fund to
be used as a rainy day account or a piggy bank account, it is wrong.
We have had so many calls from so many States, including my own. And
I see the Senator from New York is here, and I know that they have been
besieged because of their population base. Of course, they are eligible
for more money from this account, more than anyone other than
California. But it depends on how much they spend before they can get
it back.
We made the decision to offset this bill. This is the first time we
have offset totally a supplemental emergency bill. I have said to our
committee, we ought to offset emergency funds with prior appropriated
emergency funds and nonemergency funds with nonemergency prior
appropriated funds. I think we are going to have a little discussion
about that here on the floor.
But clearly what we have done, Mr. President, is we have used this
bill to reprogram prior appropriated funds. These funds that were
appropriated to the TANF account are sitting there waiting for the
States to spend money and then come and ask for it to be repaid. The
process is so rapid that the administration has not paid the first two
quarters of this year yet. So this is not something we have interfered
with by deferring money until the second fiscal year. Because, as I
said, this account would get $16.5 billion credited to it on October 1.
What we have done is, in order to avoid this controversy--and we do
not need a controversy on this bill. We need to get it done. This bill,
in my opinion, is a very important bill. It will provide money for
assistance because of a great natural disaster in a neighboring country
in this hemisphere. The President asked us to declare that an
emergency. We have taken the declaration of emergency through as far as
the outlay categories are concerned, because it is very difficult to
score under the budget process outlays that come from emergency
accounts.
We have not taken an emergency declaration through on those things
that we believe are nonemergency in terms of the authorization process.
So by that I mean, I fail to understand how we should extend the
concept of emergency appropriations to natural disasters off our
shores. We should be able to find the money, if we want to be good
humanitarian members of this hemisphere, to assist our neighbors.
I believe we should assist them. But I do not believe we should use
the laws that were intended to demand taxpayers' funds immediately to
meet natural disasters or declared emergencies by the President of the
United States within the boundaries of our United States.
So Mr. President, I offer this amendment in the spirit of compromise,
to try and take away this battle that I saw coming over the use of TANF
funds. No one supports the concepts of this Temporary Assistance to
Needy Families. We all know it replaced the old Aid to Families with
Dependent Children, the AFDC program, that assisted so many States,
including mine for so many years.
But this now is a block grant program that works in conjunction with
the welfare-to-work concepts, and that is very vital for the States. We
know that. And I think the fear that was engendered in those States
that somehow or other we might not keep the commitment that was made,
that if they make those expenditures we would repay them according to
the formula under the law that was passed in 1996, the Welfare Reform
Act, is unfortunate and wrong.
I hope that someone in the administration is listening. One of these
days I will find some way to tweak the nose of the people who keep
doing this, because they did it in the terms of border guards last
week, and now they are doing it in terms of the States themselves in
terms of the comments that have been made that somehow or other we were
taking money that the States were entitled to; we were deferring money
that they were entitled to,
[[Page
S2899]]
which they would never get under the process of the law anyway until
the time we deferred the expenditures.
As a matter of fact, some people on this side of the aisle have
argued with me to say this is not a full offset because I know that I
am offsetting the expenditures under this bill against a fund that
would never be expended this year. That is partially true. That is why
we have declared an emergency, as far as the outlays, and we have
admitted that, and we have said that is the only way we can do it. But
we need to do it. I hope, in particular, my new friend from New York
will understand that we are doing this to meet his objections and
others, and we do so in the spirit of compromise.
Thank you, Mr. President.
Mr. SCHUMER addressed the Chair.
The PRESIDING OFFICER. The Senator from New York.
Mr. SCHUMER. Thank you, Mr. President.
First, I want to, on behalf of Senator Moynihan and myself, thank
Chairman Stevens, as well as Senator Byrd, for their assistance in
removing the $350 million offset from the TANF, Temporary Assistance
for Needy Families, account, which would have deferred the funds until
2002.
Mr. President, I and many others in New York feared that this offset
set us off on the wrong course, that it would run counter to the
intention of the welfare reform bill which allowed States to set aside
TANF funds for use at a later date when welfare rolls would rise, such
as during a future recession.
My State, as the chairman knows, was particularly affected. The State
was the source of nearly a quarter, about $80 million, of the $350
million that was offset. So I am pleased that the alternative offset
would shift some HUD funds from one fiscal year to the next, funds that
never would have been used. We have checked with both the
administration as well as our side on Housing and on Banking and on
Appropriations, and they agree with that.
I say to the chairman that I appreciate very much the spirit of
compromise in which this was offered. I understand his view and I will
bring that message back to our State. The people of New York will now
be breathing a sigh of relief that this has been replaced.
I also thank the Senator from Pennsylvania, Mr. Santorum, who worked
with me on this. He found his State in a similar position as ours. At
least for my first foray into the Senate legislative process, it has
been a bipartisan and productive effort. For that, I very much thank
the chairman for his understanding of our needs and yield back the
remainder of my time.
Mr. STEVENS. Mr. President, I am going to ask for adoption of the
amendment but I will not move to reconsider because there may be some
who want to discuss this, too. I will make a motion to reconsider this
later today. May I reserve the right to make that later today?
The PRESIDING OFFICER. That motion can be made today or any of the
next 2 following days.
Mr. STEVENS. I shall make it this afternoon, and I ask for the
adoption of the amendment.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 80) was agreed to.
Amendment No. 81
(Purpose: To set forth restrictions on deployment of United States
Armed Forces in Kosovo)
Mrs. HUTCHISON. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Texas [Mrs. Hutchison] proposes an
amendment numbered 81.
Mr. STEVENS. Mr. President, I ask unanimous consent reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 58, between lines 15 and 16, insert the following:
TITLE ____ RESTRICTIONS ON DEPLOYMENT OF UNITED STATES ARMED FORCES IN
KOSOVO
SEC. ____01. SHORT TITLE.
This title may be cited as the ``____________ Act of
1999''.
SEC. ____02. DEFINITION.
In this title, the term ``Yugoslavia'' means the so-called
Federal Republic of Yugoslavia (Serbia and Montenegro).
SEC. ____03. FUNDING LIMITATION.
(a) Limitation.--None of the funds appropriated or
otherwise made available to the Department of Defense,
including funds appropriated for fiscal year 1999 and prior
fiscal years, may be obligated or expended for any deployment
of ground forces of the Armed Forces of the United States to
Kosovo unless and until--
(1) the parties to the conflict in Kosovo have signed an
agreement for the establishment of peace in Kosovo;
(2) the President has transmitted to Congress the report
provided for under section 8115 of Public Law 105-262 (112
Stat. 2327); and
(3) the President has transmitted to the Speaker of the
House of Representatives and the President pro tempore of the
Senate a report containing--
(A) a certification--
(i) that deployment of the Armed Forces of the United
States to Kosovo is in the national security interests of the
United States;
(ii) that--
(I) the President will submit to Congress an amended budget
for the Department of Defense for fiscal year 2000 not later
than 60 days after the commencement of the deployment of the
Armed Forces of the United States to Kosovo that includes an
amount sufficient for such deployment; and
(II) such amended budget will provide for an increase in
the total amount for the major functional budget category 050
(relating to National Defense) for fiscal year 2000 by at
least the total amount proposed for the deployment of the
Armed Forces of the United States to Kosovo (as compared to
the amount provided for fiscal year 2000 for major functional
budget category 050 (relating to National Defense) in the
budget that the President submitted to Congress February 1,
1999); and
(iii) that--
(I) not later than 120 days after the commencement of the
deployment of the Armed Forces of the United States to
Kosovo, forces of the Armed Forces of the United States will
be withdrawn from on-going military operations in locations
where maintaining the current level of the Armed Forces of
the United States (as of the date of certification) is no
longer considered vital to the national security interests of
the United States; and
(II) each such withdrawal will be undertaken only after
consultation with the Majority Leader of the Senate, the
Minority Leader of the Senate, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives;
(B) an explanation of the reasons why the deployment of the
Armed Forces of the United States to Kosovo is in the
national security interests of the United States;
(C) the total number of the United States military
personnel that are to be deployed in Kosovo and the number of
personnel to be committed to the direct support of the
international peacekeeping operation in Kosovo, including
ground troops, air support, logistics support, and
intelligence support;
(D) the percentage that the total number of personnel of
the United States Armed Forces specified in subparagraph (C)
bears to the total number of the military personnel of all
NATO nations participating in the international peacekeeping
operation in Kosovo;
(E) a description of the responsibilities of the United
States military force participating in the international
peacekeeping operation to enforce any provision of the Kosovo
peace agreement; and
(F) a clear identification of the benchmarks for the
withdrawal of the Armed Forces of the United States from
Kosovo, together with a description of those benchmarks and
the estimated dates by which those benchmarks can and will be
achieved.
(b) Consultation.--
(1) In general.--Prior to the conduct of any air operations
by the Armed Forces of the United States against Yugoslavia,
the President shall consult with the joint congressional
leadership and the chairmen and ranking minority members of
the appropriate congressional committees with respect to
those operations.
(2) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Appropriations, the Committee on Armed
Services, the Committee on International Relations, and the
Permanent Select Committee on Intelligence of the House of
Representatives; and
(ii) the Committee on Appropriations, the Committee on
Armed Services, the Committee on Foreign Relations, and the
Select Committee on Intelligence of the Senate.
(B) Joint congressional leadership.--The term ``joint
congressional leadership'' means--
(i) the Speaker of the House of Representatives and the
Majority Leader and the Minority Leader of the House of
Representatives; and
(ii) the Majority Leader and the Minority Leader of the
Senate.
SEC. ____04. REPORT ON PROGRESS TOWARD MEETING BENCHMARKS.
Thirty days after the date of enactment of this Act, and
every 60 days thereafter, the President shall submit to
Congress a detailed report on the benchmarks that are
established to measure progress and determine the withdrawal
of the Armed Forces of the United States from Kosovo. Each
report shall include--
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(1) a detailed description of the benchmarks for the
withdrawal of the Armed Forces from Kosovo;
(2) the objective criteria for evaluating successful
achievement of the benchmarks;
(3) an analysis of the progress made in achieving the
benchmarks;
(4) a comparison of the current status on achieving the
benchmarks with the progress described in the last report
submitted under this section;
(5) the specific responsibilities assigned to the
implementation force in assisting in the achievement of the
benchmarks;
(6) the estimated timetable for achieving the benchmarks;
and
(7) the status of plans and preparations for withdrawal of
the implementing force once the objective criteria for
achieving the benchmarks have been met.
SEC. ____05. STATUTORY CONSTRUCTION.
Nothing in this title restricts the authority of the
President to protect the lives of United States citizens.
Mr. STEVENS. Mr. President, I ask unanimous consent the amendment now
be laid aside and no call for regular order, except one made by myself
or the mover of the amendment, the Senator from Texas, serve to bring
back the pending amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. STEVENS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendments Nos. 82 Through 88, En Bloc
Mr. STEVENS. Mr. President, I have a package of amendments that have
been cleared and I would like to say for the record what they are. They
are:
An amendment by Senator McCain to extend the Aviation Insurance
Program through May 31, 1999.
An amendment by Senator Grassley providing $1.4 million to expedite
adjudication of civil monetary penalties by the Health and Human
Services Appeal Board. It also provides for an offset for that amount
of $1.4 million.
We have Senator Shelby's amendment which makes a technical correction
to title IV.
We have an amendment by Senator Byrd making a technical correction to
the Emergency Steel Loan Guarantee Program in the bill.
An amendment by Senator Frist and Senator Thompson providing $3.2
million for repairs to Jackson, TN, Army aviation facility damaged by a
tornado in January. It also provides for an offset in the same amount.
An amendment by myself for a technical correction to the current
year, 1999's Commerce-Justice-State bill, and provides for rules on the
taking of Beluga whales.
I send these amendments to the desk and ask unanimous consent that
they be considered en bloc.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report.
The bill clerk read as follows:
The Senator from Alaska [Mr. Stevens], for himself, Mr.
McCain, Mr. Grassley, Mr. Shelby, Mr. Byrd, Mr. Frist and Mr.
Thompson, proposes amendments numbered 82 through 88, en
bloc, as follows:
AMENDMENT NO. 82
(Purpose: To extend the aviation insurance program through May 31,
1999)
At the appropriate place, insert the following:
SEC. 17. EXTENSION OF AVIATION INSURANCE PROGRAM.
Section 44310 of title 49, United States Code, is amended
by striking ``March 31, 1999.'' and inserting ``May 31,
1999.''.
____
AMENDMENT NO. 83
(Purpose: Expediting adjudication of civil monetary penalties by the
Department of Health and Human Services Appeals Board)
On page 29, insert after line 10:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office of the Secretary
General Departmental Management
For an additional amount for `'general departmental
management'', $1,400,000, to reduce the backlog of pending
nursing home appeals before the Departmental Appeals Board.
On page 42, line 8, strike $3,116,076,000 and insert
$3,114,676,000
On page 42, line 9, strike $164,933,000 and insert
$163,533,000.
Mr. GRASSLEY. Mr. President, I am offering this amendment to speed up
adjudication, by the appeals board of the Department of Health and
Human Services, of appeals from nursing facilities of civil monetary
penalties levied by the Health Care Financing Administration (HCFA) for
violations of standards established pursuant to the Nursing Home Reform
Act of 1987. Currently, there is a substantial backlog of some 701 such
cases. Delay in final adjudication of such cases subverts the purpose
and effect of civil monetary penalties, delaying corrective action, and
improvements in the quality of care offered by nursing facilities.
Delays in adjudication of these cases also burdens nursing facilities
through additional legal fees and the perpetuation of uncertainty
caused by unresolved disputes.
The number of such cases filed each year by nursing facilities has
increased each year since 1995, the year when regulations for the
Nursing Home Reform Act's enforcement standards went into effect.
Currently, as I noted earlier in my statement, there are 701 such cases
pending.
Mr. President, the steady increase in appeals of civil monetary
penalties since 1995 shows the effect of increased use, by the States
and HCFA, of the enforcement regulations which went into effect in
1995. Nevertheless, in hearings I held in the Special Committee on
Aging last July, the General Accounting Office reported that nursing
facilities providing poor quality of care regularly escaped sanctions
which could cause care to be improved. The pattern seemed to be that a
facility would be sanctioned for poor quality of care, be required to
attest in writing through a plan of correction that steps had been
taken to improve care, and then be found deficient on the next visit
from State officials. This pattern often continued for long periods of
time. And when sanctions such as civil monetary penalties were levied
by HCFA, the sanctioned facilities would appeal, causing lengthy delays
in final resolution of the case.
One week before my July hearings, President Clinton launched a
variety of new initiatives designed to improve the quality of care in
nursing facilities. Among those new initiatives was one designed to
eliminate paper compliance with quality standards and to proceed more
quickly to sanctions for those homes with a history of poor care.
The upshot of oversight by the Special Committee on Aging and the
Presidential initiatives is that there has been a substantial increase
thus far in 1999 of appeals of civil monetary penalties by nursing
facilities.
Certainly, facilities have the right to appeal sanctions levied by
HCFA. But it is also important that appeals be heard and resolved in a
reasonable amount of time. Delay subverts improvement in the quality of
care in nursing facilities as real deficiencies go uncorrected. Delay
also slows the development of precedents which would clarify
outstanding issues. Slow development of such precedents encourages
facilities and their legal representatives to file appeals because
guidance as to the worthiness of an appeal is lacking. And, as the body
of precedents becomes more complete, adjudication of cases becomes
speedier.
The root problem has been that the departmental appeals board does
not have sufficient resources to keep up with the increase in new
cases, to say nothing of working off the current backlog of cases. I am
given to understand that, at the present time about 25 new cases are
filed with the appeals board each week. As will be clear from the table
I am attaching to my statement, the number of cases decided each year
has averaged around 23 for the last 3 years. Clearly, the board is
swamped and needs help.
The President's budget for fiscal year 2000 proposes $2.8 million for
the board. Were the Congress to provide those funds, it will certainly
take time for the appeals board to gear up and begin to speed up
adjudication of appeals.We can't wait to begin addressing this problem,
Mr. President. The amendment I offer would provide $1.4 million to be
made available through the supplemental appropriation we are now
considering. I have not proposed to provide the full $2.8 million the
President's budget proposes for the next fiscal year because the
appeals board could not effectively spend that amount in what remains
of the fiscal year. Therefore, I have essentially prorated that amount
over the time remaining in this fiscal year.
amendment no. 84
At the appropriate place in the bill, insert:
[[Page
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Sec. . Title 49 Recodification Correction.--Effective
December 31, 1998, section 4(k) of the Act of July 5, 1994
(Public Law 103-272, 108 Stat. 1370), as amended by section
7(a)(3)(D) of the Act of October 31, 1994 (Public Law 103-
429, 108 Stat. 4329), is repealed.
amendment no. 85
(Purpose: To make a technical correction)
On page 16, strike beginning with line 12 through page 23,
line 8, and insert the following:
Emergency Steel Loan Guarantee Program. (a) Short Title.--
This section may be cited as the ``Emergency Steel Loan
Guarantee Act of 1999''.
(b) Congressional Findings.--Congress finds that--
(1) the United States steel industry has been severely
harmed by a record surge of more than 40,000,000 tons of
steel imports into the United States in 1998, caused by the
world financial crisis;
(2) this surge in imports resulted in the loss of more than
10,000 steel worker jobs in 1998, and was the imminent cause
of 3 bankruptcies by medium-sized steel companies, Acme
Steel, Laclede Steel, and Geneva Steel;
(3) the crisis also forced almost all United States steel
companies into--
(A) reduced volume, lower prices, and financial losses; and
(B) an inability to obtain credit for continued operations
and reinvestment in facilities;
(4) the crisis also has affected the willingness of private
banks and investment institutions to make loans to the U.S.
steel industry for continued operation and reinvestment in
facilities;
(5) these steel bankruptcies, job losses, and financial
losses are also having serious negative effects on the tax
base of cities, counties, and States, and on the essential
health, education, and municipal services that these
government entities provide to their citizens; and
(6) a strong steel industry is necessary to the adequate
defense preparedness of the United States in order to have
sufficient steel available to build the ships, tanks, planes,
and armaments necessary for the national defense.
(c) Definitions.--For purposes of this section--
(1) the term ``Board'' means the Loan Guarantee Board
established under subsection (e);
(2) the term ``Program'' means the Emergency Steel
Guaranteed Loan Program established under subsection (d); and
(3) the term ``qualified steel company'' means any company
that--
(A) is incorporated under the laws of any State;
(B) is engaged in the production and manufacture of a
product defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and billets,
plates, flat-rolled steel, sections and structural products,
bars, rail type products, pipe and tube, and wire rod; and
(C) has experienced layoffs, production losses, or
financial losses since the beginning of the steel import
crisis, after January 1, 1998.
(d) Establishment of Emergency Steel Guaranteed Loan
Program.--There is established the Emergency Steel Guaranteed
Loan Program, to be administered by the Board, the purpose of
which is to provide loan guarantees to qualified steel
companies in accordance with this section.
(e) Loan Guarantee Board Membership.--There is established
a Loan Guarantee Board, which shall be composed of--
(1) the Secretary of Commerce, who shall serve as Chairman
of the Board;
(2) the Secretary of Labor; and
(3) the Secretary of the Treasury.
(f) Loan Guarantee Program.--
(1) Authority.--The Program may guarantee loans provided to
qualified steel companies by private banking and investment
institutions in accordance with the procedures, rules, and
regulations established by the Board.
(2) Total guarantee limit.--The aggregate amount of loans
guaranteed and outstanding at any 1 time under this section
may not exceed $1,000,000,000.
(3) Individual guarantee limit.--The aggregate amount of
loans guaranteed under this section with respect to a single
qualified steel company may not exceed $250,000,000.
(4) Minimum guarantee amount.--No single loan in an amount
that is less than $25,000,000 may be guaranteed under this
section.
(5) Timelines.--The Board shall approve or deny each
application for a guarantee under this section as soon as
possible after receipt of such application.
(6) Additional costs.--For the additional cost of the loans
guaranteed under this subsection, including the costs of
modifying the loans as defined in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a), there is
appropriated $140,000,000 to remain available until expended.
(g) Requirements for Loan Guarantees.--A loan guarantee may
be issued under this section upon application to the Board by
a qualified steel company pursuant to an agreement to provide
a loan to that qualified steel company by a private bank or
investment company, if the Board determines that--
(1) credit is not otherwise available to that company under
reasonable terms or conditions sufficient to meet its
financing needs, as reflected in the financial and business
plans of that company;
(2) the prospective earning power of that company, together
with the character and value of the security pledged, furnish
reasonable assurance of repayment of the loan to be
guaranteed in accordance with its terms;
(3) the loan to be guaranteed bears interest at a rate
determined by the Board to be reasonable, taking into account
the current average yield on outstanding obligations of the
United States with remaining periods of maturity comparable
to the maturity of such loan; and
(4) the company has agreed to an audit by the General
Accounting Office, prior to the issuance of the loan
guarantee and annually while any such guaranteed loan is
outstanding.
(h) Terms and Conditions of Loan Guarantees.--
(1) Loan duration.--All loans guaranteed under this section
shall be payable in full not later than December 31, 2005,
and the terms and conditions of each such loan shall provide
that the loan may not be amended, or any provision thereof
waived, without the consent of the Board.
(2) Loan security.--Any commitment to issue a loan
guarantee under this section shall contain such affirmative
and negative covenants and other protective provisions that
the Board determines are appropriate. The Board shall require
security for the loans to be guaranteed under this section at
the time at which the commitment is made.
(3) Fees.--A qualified steel company receiving a guarantee
under this section shall pay a fee in an amount equal to 0.5
percent of the outstanding principal balance of the
guaranteed loan to the Department of the Treasury.
(i) Reports to Congress.--The Secretary of Commerce shall
submit to Congress annually, a full report of the activities
of the Board under this section during fiscal years 1999 and
2000, and annually thereafter, during such period as any loan
guaranteed under this section is outstanding.
(j) Salaries and Administrative Expenses.--For necessary
expenses to administer the Program, $5,000,000 is
appropriated to the Department of Commerce, to remain
available until expended, which may be transferred to the
Office of the Assistant Secretary for Trade Development of
the International Trade Administration.
(k) Termination of Guarantee Authority.--The authority of
the Board to make commitments to guarantee any loan under
this section shall terminate on December 31, 2001.
(l) Regulatory Action.--The Board shall issue such final
procedures, rules, and regulations as may be necessary to
carry out this section not later than 60 days after the date
of enactment of this Act.
(m) Emergency Designation.--The entire amount made
available to carry out this section--
(1) is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(A)); and
(2) shall be available only to the extent that an official
budget request that includes designation of the entire amount
of the request as an emergency requirement (as defined in the
Balanced Budget and Emergency Deficit Control Act of 1985) is
transmitted by the President to Congress.
AMENDMENT NO. 86
(Purpose: To increase, with a rescission, the supplemental
appropriations for fiscal year 1999 for military construction for the
Army National Guard)
On page 30, line 1, strike ``$11,300,000'' and insert
``$14,500,000''.
On page 43, line 12, strike ``$11,300,000'' and insert
``$14,500,000''.
amendment no. 87
At the appropriate place in the bill, insert:
Sec. . Notwithstanding any other provision of law, the
taking of a Cook Inlet beluga whale under the exemption
provided in section 101(b) of the Marine Mammal Protection
Act (16 U.S.C. 1371(a)) between the date of the enactment of
this Act and October 1, 2000 shall be considered a violation
of such Act unless such taking occurs pursuant to a
cooperative agreement between the National Marine Fisheries
Service and Cook Inlet Marine Mammal Commission.
amendment no. 88
At the appropriate place in the bill, insert:
Sec. . Funds provided in the Department of Commerce,
Justice and State, the Judiciary, and Related Agencies
Appropriations Act, 1999 (P.L. 105-277, Division A, Section
101(b)) for the construction of correctional facility in
Barrow, Alaska shall be made available to the North Slope
Borough.
The PRESIDING OFFICER. Without objection, the amendments are agreed
to en bloc.
The amendments (Nos. 82 through 88) were agreed to.
Mr. STEVENS. Mr. President, the Senator from Arkansas, Mr.
Hutchinson, is here and he will offer an amendment. After he has
presented his amendment, I state to the Senator it will be my intention
to move to table his amendment.
I ask unanimous consent that the vote on that motion to table and the
vote on the motion to table the Harkin amendment occur at 2:30.
[[Page
S2902]]
Mr. HARKIN. Torricelli.
Mr. STEVENS. Torricelli/Harkin amendment occur at 2:30.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. I thank the Chair.
Mr. HUTCHINSON addressed the Chair.
The PRESIDING OFFICER. The Senator from Arkansas.
Amendment No. 89
(Purpose: To require prior congressional approval before the United
States supports the admission of the People's Republic of China into
the World Trade Organization)
Mr. HUTCHINSON. I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
The Senator from Arkansas [Mr. Hutchinson] proposes an
amendment numbered 89.
Mr. HUTCHINSON. Mr. President, I ask unanimous consent that reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the appropriate place, insert the following new section:
SEC. ____. PRIOR CONGRESSIONAL APPROVAL FOR SUPPORTING
ADMISSION OF CHINA INTO THE WTO.
(a) In General.--Notwithstanding any other provision of
law, the United States may not support the admission of the
People's Republic of China as a member of the World Trade
Organization unless a provision of law is passed by both
Houses of Congress and enacted into law after the enactment
of this Act that specifically allows the United States to
support such admission.
(b) Procedures for Congressional Approval of United States
Support for Admission of China Into the WTO.--
(1) Notification of congress.--The President shall notify
the Congress in writing if the President determines that the
United States should support the admission of the People's
Republic of China into the World Trade Organization.
(2) Support of china's admission into the wto.--The United
States may support the admission of the People's Republic of
China into the World Trade Organization if a joint resolution
is enacted into law under subsection (c) and the Congress
adopts and transmits the joint resolution to the President
before the end of the 90-day period (excluding any day
described in section 154(b) of the Trade Act of 1974),
beginning on the date on which the Congress receives the
notification referred to in paragraph (1).
(c) Joint Resolution.--
(1) Joint resolution.--For purposes of this section, the
term ``joint resolution'' means only a joint resolution of
the 2 Houses of Congress, the matter after the resolving
clause of which is as follows: ``That the Congress approves
the support of the United States for the admission of the
People's Republic of China into the World Trade
Organization.''.
(2) Procedures.--
(A) In general.--A joint resolution may be introduced at
any time on or after the date on which the Congress receives
the notification referred to in subsection (b)(1), and before
the end of the 90-day period referred to in subsection
(b)(2). A joint resolution may be introduced in either House
of the Congress by any member of such House.
(B) Application of section 152.--Subject to the provisions
of this subsection, the provisions of subsections (b), (d),
(e), and (f) of section 152 of the Trade Act of 1974 (19
U.S.C. 2192(b), (d), (e), and (f)) apply to a joint
resolution under this section to the same extent as such
provisions apply to resolutions under section 152.
(C) Discharge of committee.--If the committee of either
House to which a joint resolution has been referred has not
reported it by the close of the 45th day after its
introduction (excluding any day described in section 154(b)
of the Trade Act of 1974), such committee shall be
automatically discharged from further consideration of the
joint resolution and it shall be placed on the appropriate
calendar.
(D) Consideration by appropriate committee.--It is not in
order for--
(i) the Senate to consider any joint resolution unless it
has been reported by the Committee on Finance or the
committee has been discharged under subparagraph (C); or
(ii) the House of Representatives to consider any joint
resolution unless it has been reported by the Committee on
Ways and Means or the committee has been discharged under
subparagraph (C).
(E) Consideration in the house.--A motion in the House of
Representatives to proceed to the consideration of a joint
resolution may only be made on the second legislative day
after the calendar day on which the Member making the motion
announces to the House his or her intention to do so.
(3) Consideration of second resolution not in order.--It
shall not be in order in either the House of Representatives
or the Senate to consider a joint resolution (other than a
joint resolution received from the other House), if that
House has previously adopted a joint resolution under this
section.
Mr. HARKIN. Mr. President, parliamentary inquiry, if I might.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. HARKIN. I am just trying to find out from the Senator, is there a
time allotment or not?
Mr. STEVENS. When the Senator finishes, I will make a motion to
table. It should be about 1 o'clock.
Mr. HARKIN. I just didn't know----
Mr. STEVENS. Mr. President, we have not asked for a time limitation
on the Senator making his presentation, but he knows that as soon as he
finishes, I will make a motion to table.
Mr. HARKIN. The Senator is going to table both at 2:30?
Mr. STEVENS. Mr. President, I will make a motion to table the
amendment of the Senator from Arkansas, and after the Senator from
Iowa, I will make a motion, but I got unanimous consent that those
votes occur at 2:30.
Mr. HARKIN. That is fine with me. I just wanted to make sure.
Mr. BAUCUS. Mr. President, who has the floor?
Mr. STEVENS. The Senator from Arkansas has the floor.
The PRESIDING OFFICER. The Senator from Arkansas has the floor.
Mr. BAUCUS. Mr. President, will the Senator yield for a question--for
a parliamentary inquiry?
Mr. HUTCHINSON. I will be glad to yield.
Mr. BAUCUS. I understand the distinguished Senator from Alaska is
saying he is going to move to table. I would like to speak on the
amendment, but the Senator is moving to table as soon as the Senator is
finished.
Mr. STEVENS. Mr. President, I would be pleased if the Senator would
agree to try to reach a time agreement on that, because we have other
Senators wishing to offer amendments this afternoon also.
Mr. President, may I ask the Senator, first, that the Senator yield
to me? I apologize.
Mr. HUTCHINSON. I will be glad to yield to the distinguished
chairman.
Mr. STEVENS. How much time would the Senator like to have?
Mr. HUTCHINSON. I think for my presentation I probably only need 15
minutes. If there are those who speak against the amendment, I would
like to yield proportionally then.
Mr. STEVENS. Mr. President, if I still have the floor, how much time
does the Senator from Montana seek?
Mr. BAUCUS. I was thinking of 10, 15 minutes.
Mr. STEVENS. Could we have an agreement that there be 30 minutes on
this amendment? Is the Senator from Montana speaking against the
amendment?
Mr. BAUCUS. I am speaking against the amendment.
The PRESIDING OFFICER. Is there objection?
Mr. BAUCUS. Mr. President, reserving the right to object----
Mr. STEVENS. I am seeking a limitation of 30 minutes on the
amendment, that the time following that time to be--I will make a
motion to table, only a motion to table be in order.
The PRESIDING OFFICER. Is there objection? Without objection----
Mr. STEVENS. Mr. President, I am informed that Senators Roth and
Moynihan wish to speak, and I ask unanimous consent that the time be
expanded to 40 minutes to be followed only by a motion to table offered
by me.
Mr. HUTCHINSON. Reserving the right to object.
Mr. STEVENS. Forty-five minutes. The Senator wants to close.
Mr. HUTCHINSON. I suspect the others the Senator mentioned are going
to speak in opposition. There are some who might want to speak in
favor. If we are going to extend the time afforded Senators who want to
speak against, I think we might have trouble extending the time with
that restriction.
Mr. STEVENS. Mr. President, I do desire to limit the time if
possible, so we can have a vote when the Senate comes back out of that
conference.
Could we agree to 30 minutes on a side? Is there objection to 30
minutes on a side? I renew my request----
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. The agreement then is 1 hour equally divided?
The PRESIDING OFFICER. That is correct.
Mr. STEVENS. I thank the Chair.
[[Page
S2903]]
The PRESIDING OFFICER. The Senator from Arkansas.
Mr. HUTCHINSON. I thank the Chair.
This is a very straightforward amendment that simply says that before
China can be admitted to the World Trade Organization, there will have
to be a joint resolution passed by the Congress supporting that
accession of China to the World Trade Organization.
It is very simple. It is simply saying we should have a voice in
this. We should not have the administration arbitrarily and
unilaterally making a very, very significant and major decision without
the input of the U.S. Congress and this body. It does not prejudge what
should happen. It does not say whether China should be in or not. There
may be very compelling arguments that could be presented in such a
debate. But it does say that before China is admitted to the World
Trade Organization, every Senator in this body ought to have an
opportunity to look at the evidence and have a say in the outcome of
that debate. That is why we need this amendment, because Congress needs
to, once again, assert its constitutional responsibility in the area of
foreign commerce.
I believe we must do it now for a couple of reasons. It is the only
opportunity we are going to have before the recess, and our only
opportunity before Zhu Rongji visits this Nation next month. He will
come during our Easter recess. So, if Congress is going to have any
kind of statement on this, if we are going to be able to take any kind
of action on this, we must take it now.
I know some of my colleagues will say this should have gone through
committee. In an ideal world I would agree. It is very straightforward.
I do not think it would require a great deal of debate, as to whether
someone is for it or against it, but ideally that is where it should
have gone. But, once again, the stream of negotiations that have taken
place in recent weeks between our country and the Chinese Government,
with our officials going to China--Deputy Treasury Secretary Larry
Summers, Secretary of State Albright, U.S. Trade Representative
Charlene Barshefsky have all been making repeated trips to China--
negotiating, obviously; attempting to broker a deal on the World Trade
Organization accession of China.
If we wait for an announcement by the administration that a deal has
been reached, an announcement by the administration that the outlines
of an agreement have been reached, we will make China's membership in
the WTO a fait accompli. Any effort to stop it after the fact, after
the negotiations are completed and after an agreement has been
announced, I think will be too late for this body to really make a
difference.
The amendment is, as I said, very straightforward. It would require a
joint resolution to be passed before the United States could support
admission of China into the WTO. Again, it does not preclude our
support for China's entry. It simply sends a clear statement that
Congress should be involved in the process of deciding U.S. support for
China's accession into the WTO. The administration should not make any
hasty deals with China. We must give careful consideration to the
timing as well as to the consequences of Chinese accession. Congress
must be thoroughly involved in that debate.
We cannot negotiate a trade deal with the most populous nation in the
world, and, as we hear so often, the largest market in the world, in a
vacuum. There are certain facts that we must face; there is a political
environment in which all of these negotiations are occurring. The
Chinese have used espionage to obtain important nuclear secrets from
the United States. That is a matter that must be fully investigated. I
believe it will be. I believe the appropriate oversight committees are
moving expeditiously to investigate. But it certainly is not going to
happen before we go out on the Easter recess. We may have hearings next
week, but we will not see the end of this, we will not have all the
facts on the table, before the Easter recess and before Zhu Rongji
visits this country.
Another fact that faces us is our trade deficit with the Chinese is
at an alarming all-time high of $56.9 billion for 1998. It is rising
exponentially every year. That reality ought to cause us to pause
before we see the administration rush into a WTO deal. The Chinese
continue to keep many of their markets closed, particularly to our
agricultural sector, our farmers, who are in such crisis.
The Chinese have signed and blatantly disregarded the International
Covenant on Civil and Political Rights and have engaged in a widespread
crackdown on prodemocracy activists in China, effectively silencing all
political dissent. We cannot give WTO membership in a vacuum, ignoring
all other realities that face us. The 1999 State Department report on
China, released in the last few weeks, demonstrably proves China's
ignoring of the very covenant on civil and political rights that they
signed last year. If we cannot trust them to live up to a human rights
covenant that they signed, how can we assume they are going to live
according to the rules and the obligations of the World Trade
Organization? There is an issue of trust. They have not justified the
trust we would show in placing them in the World Trade Organization.
Article I of the Constitution gives Congress express power over
foreign commerce. There is no question but that this is our right.
There is no question in this Senator's mind that it is our
responsibility to step forward and say: WTO membership for China will
not be granted without a debate in the House and Senate and a joint
resolution.
There are serious questions that the House and the Senate need to
address. For us to sit back and go off on our Easter vacation, to go
off on recess, to hold our town meetings or to take our trips around
the world, and to have been silent on this issue, I think, at this
time, will be indefensible. I suspect there will be some kind of
announcement on the U.S. position on China's membership in the WTO
while we are gone. Then we would never have had the opportunity to
debate very important questions.
I do not have all of the answers to these questions, but I know they
are serious questions and I know the Senator from Montana, the Senator
from Alabama, who was on the floor just a moment ago, and myself ought
to have a right, before we have the United States taking a position on
WTO membership, to debate that on the floor of the Senate, to
thoroughly examine the questions that have not yet been answered.
One question I would have is this: Are we lowering the WTO bar for
China, to rush them into membership?
Since 1995, four countries have completed negotiations on accession
protocol: Ecuador, Mongolia, Bulgaria, and Panama. All four of these
nations were required to eliminate, on the date of accession or with
very short transitions, trade practices that were incompatible with WTO
rules. That has been the standard. Since 1995 the four nations that
have sought to enter the WTO have been required to eliminate their
trade practices that were incompatible with WTO rules. But China has
firmly and continuously and repeatedly said they want a different
standard. They want a longer transition period. They do not want to
meet those WTO rules at the time of or soon after their accession to
the WTO. That is a question I believe this body deserves the
opportunity to investigate and debate thoroughly before we announce a
national position regarding China's admission.
Another question I think is a serious question for debate: Are we
allowing China into the WTO before they have made the kind of market
reforms to bring them into conformity with WTO standards? The
administration argues if we will just let China in, we will have
greater influence on China's reform efforts than we do now while they
are outside of the World Trade Organization. I suppose that is
debatable. But we ought to have the opportunity to have that debate.
In my estimation, our influence on China would be far greater before
they are admitted to the World Trade Organization than afterwards. Our
ability to influence the kind of reforms the World Trade Organization
would desire will be far greater if we say you are going to accrue the
benefits of trade under the WTO only after these market reforms have
taken place, these trade barriers have been lowered. Reforms should
first be enacted, changes should first occur, and then membership
should be granted --not vice versa.
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I think this question deserves debate: Can China be trusted on trade
issues? When we look at our exploding trade deficit with China, can
they be trusted on trade issues if admitted to the World Trade
Organization, or will we admit them to the World Trade Organization and
then find them cavalierly ignoring the standards and the rules of the
World Trade Organization? Our administration's own Trade Representative
Barshefsky stated in her testimony, a little over 2 years ago, in
reference to China, that ``China imposes new import barriers to replace
those it removed.'' In other words, there can be the appearance of
reform taking place, but if there are new barriers that are being
erected while the old ones are being brought down, you really have not
achieved the reforms necessary for World Trade Organization membership.
China has almost one-third of its industrial production controlled by
the state. Almost two-thirds of urban workers are employed in state-
owned enterprises. These state-owned enterprises are notorious for
their ability to destroy wealth. Some economists estimate that it would
be cheaper for China to close down their state-owned enterprises and
keep paying the workers--close down the enterprises, go ahead and pay
them their salaries, they would still come out ahead, than to keep
operating. But because the state-owned enterprises would be vulnerable
to foreign competition, the Chinese Government has a strong
disincentive to the state-owned enterprises that are heavily subsidized
through China's centralized and insolvent banking system.
One of the pledges that the Chinese Government made was that they
would rapidly privatize the state-owned enterprises, shutting down
those that they had to, privatizing others, allowing them to create
capital by selling stock, but because of the recent economic downturn
in China in which their robust growth rate has dropped appreciably,
China now has backed off that pledge and has once again begun a round
of bank loans to these very unprofitable, state-owned enterprises to
subsidize them and to keep them in business.
This is backpedaling already on the kinds of reforms that would be
expected if China were in fact ready for admission to the World Trade
Organization.
Another question that this body needs to debate is, Should China be
admitted as a developing country with far less stringent expectations
and longer transition than allowed for other nations? That is what they
desire. They say we are a developing Nation; therefore, we should be
treated more leniently. They base their claim primarily upon their per
capita gross domestic product. By every other measure, China is a major
economic power in the world today and they want to be treated as such.
They want to be recognized as a major economic power.
China will argue that as a developing country, they are entitled to
use subsidies. They are entitled to put limits on exports and other
policies to promote development of certain key industries such as
automobiles and telecommunications and heavy industrial equipment.
China maintains that such programs are a part of China's industrial
policy and not related to its application to the World Trade
Organization. Many trade officials simply disagree with that assertion
by the Chinese Government. That is a question and that is an issue the
Senate should have the opportunity to debate, not after the fact but
before China is admitted to the World Trade Organization and before the
U.S. Government announces its position on Chinese accession.
A WTO paper, prepared in response to a request from Chinese
negotiators, suggested that industrial policies in China and other
countries could violate the basic principles of nondiscrimination and
national treatment and other WTO rules. They are not in compliance.
They are not ready to join the WTO. Political considerations should not
be the driving force in rushing China into the WTO before they have
made necessary reforms.
Another question I believe we should debate is this: Should China be
given membership in WTO before Taiwan, which is simultaneously seeking
membership? Will it be the position of the U.S. Government that we
support the admission of People's Republic of China to the World Trade
Organization while not yet supporting Taiwan's admission? Which one
should be admitted first? I think that is an important issue. I think
that is one my colleagues in the Senate deserve to have the opportunity
to discuss thoroughly.
Many believe that once China is admitted, they will work feverishly
to block Taiwan's entry, even though Taiwan is a much more developed
Nation, has a much more developed economy, and an economy which is much
more consistent with WTO rules. Yet without a vote of the Senate or a
vote of the House, this administration is prepared to support the
admission of China to the WTO before Taiwan's admission.
I believe this question deserves debate as well: Will a premature
entry by China into WTO hurt American business interests? I know that
large corporate interests in this country support China's immediate
accession to WTO, but many business people in this country have serious
concerns as to how China's admission to WTO will impact them. U.S.
business interests often want permanent MFN for China and would like to
use an agreement on WTO, I believe, as a means to push for this goal,
but many of these business interests are also concerned that China's
WTO accession, without meeting market access and other requirements,
would seriously limit U.S. business access to the Chinese market for a
long time to come. The very access that American business wants so
desperately, we would be locked out of that access permanently or for a
long duration should they be admitted to the World Trade Organization
before they have met market access rules. As a result, many U.S.
interests are pushing U.S. negotiators to remain firm, to stand pat,
and not concede on the conditions of China's entry into the World Trade
Organization.
I believe another question that this body needs to debate is, How
will WTO admission for China affect jobs? Indeed, we should consider
how it would affect our jobs here in the United States.
I remind my colleagues, contained in this very supplemental
appropriations bill, which we are soon prepared to vote on, is a
measure to assist the U.S. steel industry and the jobs that go with it.
Some of those jobs are in my home State of Arkansas, Mississippi
County, Blytheville, AR, the No. 2 ranked county in the Nation in steel
production. According to the Department of Commerce, last year alone
the U.S.-China trade deficit in iron and steel was a $161 million loser
for the United States. The year before that the U.S. realized a steel
trade deficit of $141 million, and in 1996 the deficit was $140
million. Each year the deficit in iron and steel increases
dramatically.
My point is, this Congress should have a say in whether we allow an
agreement to be made when our trade imbalance is what we experience,
even without granting China World Trade Organization status.
At the appropriate time, I would like to see China join the World
Trade Organization and abide by its rules. I do not believe China is
ready at this time to go beyond paying lip service to the fundamental
changes necessary for accession, though I know some of my colleagues do
believe that they are ready. However, I believe we can all agree that
we ought not make this decision hastily. The consequences are too great
and long lasting and, just as importantly, we ought not let the
executive branch make this determination unilaterally.
Article 1 of the Constitution gives to us, the Congress, the express
power over foreign commerce. This decision is too important for us to
cede that power, and this amendment is a means by which we can preserve
our legitimate role in the legislative
Amendments:
Cosponsors: