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Originally Processed With FOIA(s): foia Number: 2005-0336-F 2005-0336-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Legislative Affairs, White House Office of Series: Anderson, Rebecca, Files Subseries: OA/ID Number: 06820 Folder ID Number: 06820-003 Folder Title: OSTP Report [1] Stack: Row: Section: Shelf: Position: G 15 10 2 2 OFFICE STATE OF The TRESIDENT STATE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 0 STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) (House Floor) October 3, 1989 H.R. 3385 - TO PROVIDE ASSISTANCE FOR FREE AND FAIR ELECTIONS IN NICARAGUA Sponsor: (Obey (D), Wisconsin) The Administration strongly supports passage of H.R. 3385, as reported by the House Appropriations Committee, without any further amendment. This legislation would permit the use of previously appropriated funds to help assure fair elections in Nicaragua. It is vital to U.S. efforts to promote democracy in that country. There will be no budget impact from this legislation. The bill is intended, in part, to promote fair and widespread voter registration, which in Nicaragua will take place only in the month of October. Therefore, the Administration urges strong bipartisan support for rapid approval of the bill. We strongly oppose the proposed floor amendment by Congressman Durbin, which is made in order under the rule. CRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT P Or UNITED OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 March 23, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3386 - Safe Transportation of Food Act (Clinger (R) Pennsylvania and 59 others) The Administration opposes H.R. 3386. The Administration appreciates the public health concerns expressed by the sponsors of this legislation. The Food and Drug Administration and the Department of Agriculture already have sufficient authority and expertise to protect the public from food contamination. H.R. 3386 would assign food safety responsibilities to the Department of Transportation, which does not possess regulatory expertise in this area. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Brown), in consultation with DOT (Bronner), HHS (Steighen), Justice (Dulmage), USDA (Fydenlund), EPA (Stevens), TCJ (Corbett), and OIRA (Theroux). Existing Authorities Under the Federal Food, Drug, and Cosmetic Act, the Food and Drug Administration is authorized to act in cases involving the unsafe handling and transportation of food. In addition, the Department of Agriculture, under the Federal Meat Inspection Act and other statutes, has responsibility for assuring the safe handling of certain foodstuffs. Provisions of H.R. 3386 H.R. 3386, as reported by the House Energy and Commerce and Public Works and Transportation committees, would: -- prohibit the transportation of food in refrigerated vehicles which have been used to transport solid waste (except for solid waste items specified in regulations issued by the Secretary of Transportation); -- prohibit the transportation of food in cargo tankers which have been used to transport nonfood products (except for such nonfood items specified in regulations issued by the Secretary); 2 -- require cargo tankers to bear signage indicating whether they are used to transport food or nonfood products; -- require that asbestos and infectious wastes be transported in dedicated vehicles (the Secretary could also issue regulations specifying other items which could be transported in such vehicles) ; -- require the Secretary to issue regulations, within 150 days of enactment, specifying how the Act will be implemented; -- permit the Secretary to issue waivers of any provision of the Act where such waivers would be in the public interest; -- require the Secretary to provide a report to Congress within 180 days of enactment on whether additional measures to regulate the transportation of food or other products are necessary (the Secretary could issue regulations based on this study, which would become effective 90 days after their transmittal to Congress) ; -- authorize the Secretary to implement the Act by conducting investigations, issuing subpoenas, conducting hearings, requiring the production of documents, and conducting research and development and training activities; -- provide for civil penalties of up to $10,000 for violations of the Act or any implementing regulations, as well as criminal penalties of up to 5 years imprisonment and fines in accordance with Title 18 of the U.S. Code; and -- permit the Secretary to request the Attorney General to bring actions to enforce the Act. Administration Position to Date In November 16, 1989, letters to the House Public Works and Transportation and Energy and Commerce committees, the Department of Transportation opposed the enactment of H.R. 3386. Legislative Reference Division Draft 3/23/89 -- 3:00 p.m. STRESTIVE UNITED OFFICE * CRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 October 26, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3390 Veterans Education Amendments of 1989 (Penny (D) MN and 39 others) The Administration opposes enactment of H.R. 3390 because it would: -- require the Department of Veterans Affairs (VA) to prepare a pamphlet on its education programs and then distribute it to individuals first applying for such benefits and annually thereafter. VA already publishes sufficient informational materials to inform veterans about available education benefits. For example, VA annually publishes 1.5 million copies of VA Pamphlet 27-82-2, which describes each of the current education benefit programs available, identifies VA sources for obtaining further information, and lists locations for filing applications. -- expand work-study program eligibility to Chapter 35 students (Survivors' and Dependents' Educational Assistance). Work-study benefits should not be provided to nonveterans who can avail themselves of other government-wide educational assistance opportunities. -- limit to 20 hours a week the amount of time individuals could participate in a work-study program. There is no basis for such a limit. Widely varying class schedules may reasonably allow more hours to be worked during some weeks without adversely affecting individual student progress. -- permit individuals attending school on a half-time basis to be eligible for work-study benefits. The program is tailored to meet the needs of full-time students. ******** (Not to be Distributed Outside Executive Office of the President) This draft of a position was developed by LRD (Pellicci) in consultation with LVED (Martin/Jacobs/Gates). The Department of Veterans Affairs (Tony Principi, Deputy Secretary) agrees with the proposed statement. 2 The House Veterans' Affairs Committee report on H.R. 3390 has not been filed (the Committee ordered the bill reported on 10/18/89). The discussion of the bill below is based on information provided by VA staff (Dean Gallin). In addition to the provisions cited in the above position, H.R. 3390 would: -- require educational institutions to report to VA the enrollment of Chapter 31 trainees (veterans with service-connected disabilities). The educational institution would receive a fee for reporting the information. -- make several changes to VA's work-study program (eliminating work-study advance payments -- an Administration proposal -- and changing the work-study payment scale). -- amend certain conditions for resumption of work-study benefits for students who have had their benefits suspended for unsatisfactory progress or conduct. -- make several technical and clerical amendments to the title 38 education benefits programs. LEGISLATIVE REFERENCE DIVISION DRAFT 10/26/89 PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE UNITED OFFICE OF MANAGEMENT AND BUDGET STECUTIVE SERVICE WASHINGTON, D.C. 20503 October 18, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3402 - The Polish and Hungarian Democracy Initiative of 1989 (Fascell (D) FL and 57 others) Poland and Hungary are experiencing truly historic and rapid change in which democratic forces for the first time since World War II are playing the leading role. The United States and the West as a whole face a unique challenge and opportunity to assist these countries in what we hope will be a peaceful and successful transformation from state-controlled economic and political systems to political pluralism, democracy, and market economies. From the outset of his Administration, President Bush has taken the lead in supporting reform in Poland and Hungary and has worked with Congress to ensure that comprehensive legislation is enacted on an urgent basis. The President's policy has been flexible to account for changing circumstances; conditional to provide incentives for macroeconomic reform; and has provided U.S. leadership in developing a concerted Western approach since no one country can provide all that Poland and Hungary need. H.R. 3402 reflects this cooperation -- incorporating the key elements of the President's program -- and the wide bipartisan support for assisting these two countries on their path to democracy. The Administration has reservations about the excessive funding levels contained in this legislation, and also has various constitutional concerns that must be addressed. The Administration supports House passage of H.R. 3402 and will work with the Senate to address these problems. * * * (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by State (Hauser) and NSC (Lampley), in consultation with LRD (Killgore/Rooney/Peterson), IAD (Smith/Bent/DuSault), LVE (Walsh), ES (Bennethum), GC (Thiele), NRD (Beard/Fairweather), White House Counsel (Rademaker), Justice (DeSanctis), AID (Brown), Treasury (Levy), Agriculture (Hovermale), Labor (Greene), Eximbank (Record), TDP (DeSoto), Peace Corps (Runkel), Energy (Heindel), DOD (Brick), OPIC (Horanburg), USIA (Isacco), Commerce (Dalmut), CEA (Collins), and EPA (Hassett). USTR had this material for review, but did not respond within the allotted time. 2 Administration Poland-Hungary Proposals The Administration has proposed a comprehensive package of assistance measures to support Poland's and Hungary's economic and political regeneration. Specifically, the Administration has proposed: -- Providing Poland with eligibility for the Generalized System of Preferences (GSP), thereby according duty free entry for a number of goods from that country. -- Authorizing the Overseas Private Investment Corporation (OPIC) to operate its programs for U.S. investors in Poland. OPIC provides insurance against political risks, loan guarantees, small business loans, and an array of preinvestment services. -- Establishing the Polish-American Enterprise Fund ($100M) and the Hungarian-American Enterprise Fund ($25M). These funds would provide loans, grants, and other assistance to private enterprise activities in each country. -- Providing technical assistance to Poland ($4M) and Hungary ($1M) for (a) implementing labor market reforms and (b) facilitating adjustment during the period of economic transition and reform. -- Establishing (a) an air quality monitoring network and a water quality program in Krakow, Poland, and (b) a regional environmental center in Budapest, Hungary. A total of $10M was requested for these programs. -- Demonstrating the use of clean coal technology in Poland ($10M). -- A total of $200 million for economic stabilization purposes, which would be the U.S. contribution to the $1 billion in Western assistance the Poles have requested. New statutory authority is required to implement the above-noted provisions. In addition, the Administration has offered emergency food aid to Poland totalling $100 million. Provisions of H.R. 3402 As reported by the House Foreign Affairs Committee, H.R. 3402 incorporates the Administration's proposals, generally at higher appropriation authorization levels covering a three year period, and adds additional assistance as described below. Constitutional Concerns Justice, White House Counsel, and OMB Counsel advise that various provisions in H.R. 3402 would micromanage the Executive branch 3 and infringe on the President's constitutional authority to conduct foreign affairs. For example, the bill would: -- purport to dictate U.S. foreign policy or mandate actions by U.S. Government agencies overseas (e.g. requiring the U.S. Government to mobilize international financial institutions to help Poland and Hungary) ; -- require the President to consult with Congress before designating the enterprise funds; and -- infringe on the President's authority to manage the Executive branch (e.g. requiring the Secretary of Labor to delegate authority to carry out labor programs to the head of the Bureau of International Labor Affairs of the Department of Labor). Poland/Hungary Aid Package (Authorization Levels in millions) Administration H.R. 3402 Enterprise Fund $125 $200 Labor Reform 5 5 Environmental Projects 10 10 Clean Coal 10 30 Economic Stabilization 200 200 Food Aid 100 125 Technical Training - 10 Peace Corps - 6 Trade and Development Program - 6 Educational/Cultural Exchanges - 12 Scholarships - 10 Science/Tech Exchanges - 8 Democratic Institutions - 12 Medical Program - 6 AID Admin. Expenses - 0.5 TOTAL 450 *640.5 4 *In addition, the bill authorizes $200 million in loan guarantee authority for AID's Trade Credit Insurance Program. This is also in addition to the Administration's request. Neither the House or Senate appropriations bills fund this program. Title I - Structural Adjustments Multilateral Support -- requires that, to the degree Poland and Hungary continue to evolve toward pluralism and democracy and to develop and implement comprehensive economic reform programs, the U.S. Government shall; -- take the leadership in mobilizing international financial institutions to provide appropriate resources to help Poland and Hungary: -- support the implementation of a plan of the Polish government to carry out comprehensive economic reform and relieve urgent balance of payment requirements through merchanisms such as the Exchange Stabilization Fund; -- urge all members of the "Paris Club" of creditor governments to adopt generous rescheduling programs for debts owed by the government of Poland; and -- make available to Poland, in coordination with the European Community, U.S. agricultural assistance to alleviate immediate food shortages and facilitate the transition to a free market economy and take appropriate steps to encourage parallel efforts by other agricultural surplus nations. Stabilization Assistance for Poland -- authorizes $200 million for FY 1990 to assist in the stabilization of the Polish economy. Agricultural Assistance -- establishes a minimum level of agricultural assistance for Poland in FY 1990 of $125 million under the Agricultural Act of 1949, the Agricultural Trade Development and Assistance Act of 1954, and the Food for Programs Act of 1985. Title II Private Sector Development Enterprise Funds for Poland and Hungary -- authorizes enterprise funds similar to those proposed by the Administration, except for funding. Whereas the Administration requested $125 million, H.R. 3402 authorizes $200 million for FYs 1990-1992 ($160 million for Poland; $40 million for Hungary). The President would be 5 required to consult with Congress before designating each Enterprise Fund. AID is designated as the administering agency. Labor Market Transition -- authorizes $5 million for FYs 1990-1991 labor market reform activities in Poland and Hungary similar to those proposed by the Administration. Technical Training for Private Sector Development in Poland and Hungary -- directs AID to develop a program for extending basic agribusiness, commercial, entrepreneurial, financial, scientific, and technical skills to the people of Poland and Hungary. Authorizes $10 million for FYs 1990-1992 for these activities. Peace Corps Programs in Poland and Hungary -- authorizes $6 million for FYs 1990-1992 to carry out programs in Poland and Hungary under the Peace Corps Act. Use of Polish Currency Generated by Agricultural Assistance -- provides that a portion of agricultural commodities made available to Poland may be sold or bartered in that country to generate local currencies to complement other assistance authorized for Poland. The uses of local currencies so generated should emphasize agricultural development. III Trade and Investment GSP -- authorizes GSP eligibility to Poland. OPIC Programs for Poland and Hungary -- authorizes OPIC to operate in Poland and Hungary. Export-Import Bank Programs -- makes Poland and Hungary eligible for Eximbank loans and directs Eximbank to work with private financial intermediaries to facilitate exports to Poland. Trade Credit Insurance Program -- authorizes the President, for FYs 1990-1992, to provide guarantees to Eximbank for liabilities incurred for guarantees or insurance for financing transactions involving the export of goods and services for use of the private sector in Poland. Economic Security Funds (ESF), as the President determines are necessary, may be made available to discharge liabilities under guarantees. A reserve fund is also established by the administering agency to discharge liabilities under guarantees. The aggregate amount of outstanding commitments may not exceed $200 million of contingent liability in any fiscal year and commitments to guarantee are authorized only in the amounts provided in advance by appropriations. Trade and Development Programs (TDP) -- authorizes the appropriation of $6 million for FYs 1990-1992 to permit expansion of TDP into Poland and Hungary. 6 Bilateral Investment Treaties -- a sense of the Congress provision that urges the President to seek bilateral investment treaties with Poland and Hungary. Title IV - Educational, Cultural and Scientific Activities Educational and Cultural Exchanges -- states that the United States should expand cultural and educational exchange activities in Poland and Hungary, including the establishment of "sister institutions" programs. Authorizes $12 million for FYs 1990-1992 to USIA to support such activities. Scholarship Partnership -- authorizes AID to establish and administer a program of scholarship assistance for students from Poland and Hungary to study in the United States. States could participate in the program though 50 percent matching grants. Scholarship recipients who return to Poland or Hungary for a designated period would have no repayment obligation. Authorizes $10 million for FYs 1990-1992. Science and Technology Exchange -- authorizes $8 million over FYs 1990-1992 for the implementation of the U.S.-Polish and U.S. -Hungarian science and technology agreements. $5.5 million is for Poland and $2.5 million is for Hungary. Assistance in Support of Democratic Institutions -- authorizes $12 million in ESF funds for FYs 1990-1992 for support of democratic institutions and activities in Poland and Hungary. Environmental Initiatives -- authorizes up to $10 million for FYs 1990-1992 to carry out EPA activities in Poland and Hungary as proposed by the Administration. Department of Energy (DOE) Activities -- authorizes $30 million for FYs 1990-1992 for DOE activities in Poland which would include cooperation with Polish officials to retrofit a coal-fired powerplant in Krakow and development of Polish capability to manufacture equipment for the clean burning of fossil fuels. Medical Supplies, Equipment, Training for Poland -- authorizes $6 million in ESF funds for FYs 1990-1992 to provide medical supplies and hospital equipment to Poland and for training Polish medical personnel. AID Administrative Expenses -- authorizes AID to use up to $0.5 million each fiscal year to carry out its administrative functions. LEGISLATIVE REFERENCE DIVISION DRAFT 10/18/89 FREE PRESIDENT* DEPARTMENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 o May 30, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3406 - Multiparty, Multiforum Jurisdiction Act (Kastenmeier (D) Wisconsin and Hughes (D) New Jersey) The Administration supports the enactment of H.R. 3406. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Blum), in consultation with the Departments of Justice (Dulmage/Beck), Transportation (Donelan), and Commerce (Dalmut), the Administrative Office of the United States Courts (Feidler), GC (Damus), White House Counsel (Hatch), and TCJ (Sloan). A copy of H.R. 3406 as ordered reported is not yet available for review. However, based on agencies and OMB staff review of an advance draft of the bill, it would expand the jurisdiction of Federal courts to hear cases arising out of mass torts. These cases (e.g., airplane crashes and hotel fires) typically are complex and can involve many lawsuits in a myriad of State and Federal courts. This bill would make it easier to consolidate proceedings in the Federal courts. The bill's sponsor has stated that H.R. 3406 is intended to reduce duplicative litigation in the Federal courts. Provisions of H.R. 3406 H.R. 3406 would specifically provide jurisdiction to Federal courts to handle cases involving mass torts if: (1) any of the defendants come from a different State than do the plaintiffs; (2) the cause of action arises from a single accident; and (3) at least 25 persons have died or sustained physical injuries resulting in damages in excess of $50,000 per person. The bill would also broaden venue (i.e., where a case may be filed) for mass tort cases to include any district in which any defendant resides. Other provisions of H.R. 3406 would: -- Expand the authority of courts receiving mass tort cases transferred via multidistrict litigation procedures. Such actions could be retained by the receiving court not only for pretrial proceedings, but for determinations of liability and, in some cases, damages. 2 -- Make it easier to consolidate in Federal courts those mass tort actions that were originally filed in State courts, and allow Federal courts to return cases to the State courts for damage determinations, when appropriate. -- Specify factors that Federal district courts may consider when determining which State's laws should apply to determine liability and related issues. Administration Position to Date The Department of Justice supported H.R. 3406 in testimony before a House Judiciary subcommittee on November 15, 1989. At the hearing, the Justice witness stated that H.R. 3406 will "markedly increase the fair, speedy and efficient resolution of mass tort cases." Legislative Reference Division Draft 5/29/90 -- 10:15 a.m. PROVIDE UNITED and OFFICE FRESWEND EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 October 25, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3443 - Air Carriers Securities Acquisition (Oberstar (D) Minnesota and 28 others) The Administration opposes enactment of H.R. 3443, and the President's senior advisors would recommend that he veto this bill or any similar legislation. The Department of Transportation has sufficient authority to ensure that airline operators are financially fit, and comply with U.S. citizenship requirements. H.R. 3443, on the other hand, would require that airline acquisitions be disapproved for reasons not directly related to safety or competition, and needlessly signal hostility to foreign investment in the airline industry. * * (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was drafted by the Legislative Reference Division (Brown), in consultation with the Departments of Transportation (Herlihy), Commerce (Dalmut), Justice (Pestal) the Treasury (Levy), and State (Bachrach) ; and CEA (Stein), TCJ (Pheto), HTF (Ohri), OIRA (Clarke), and EP (Jacobson). H.R. 3443 H.R. 3443, as ordered reported by the House Public Works and Transportation Committee, would require the Secretary of Transportation to review and approve acquisitions of voting stock in air carriers where: (1) the carrier has annual revenues of more than $750,000,000; (2) the stock is being acquired by a person who owns less than 15 percent of the airline's voting stock; and (3) the acquisition would result in the ownership by that person of more than 15 percent of the airline's voting stock. All covered acquisitions would be subject to a 30 day waiting period. The Secretary could shorten this period by approving the acquisition before the period expires, or lengthen it by up to 20 days if additional information is required to make a determination. 2 The Secretary would be required to disapprove any covered acquisition if it is determined that: -- the acquisition would weaken the carrier financially to the extent that it would be: (1) less able to comply with safety procedures; (2) unable to take the steps necessary to operate with the highest degree of safety; (3) required to dispose of a substantial portion of its aviation related assets to meet its financial obligations; (4) less able to compete in providing air transportation; -- the acquisition would result in non-U.S. citizen control of the carrier; -- the proposed purchaser does not provide all information required by the Secretary to make a determination; or -- the proposed purchaser intends to dispose of a substantial portion of the carrier's aviation-related assets, unless: (1) the disposal is otherwise necessary to avoid the financial failure of the airline; (2) involves assets the airline cannot use profitably; or (3) is otherwise in the public interest. Administration Position to Date In a letter to the House Aviation Subcommittee dated October 16 1989, the Deputy Secretary of Transportation stated that the Administration opposes H.R. 3443. In a letter to the House Public Works and Transportation Committee dated October 18, 1989, the Secretary of Transportation stated that the President's senior advisors would recommend that he veto H.R. 3443 "or any similar legislation." Legislative Reference Division Draft 10/19/89 - 4:00 p.m. RIMI PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 July 13, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3468 - Expansion of the Stewart B. McKinney National Wildlife Refuge (Morrison (D) Connecticut and 5 others) The Administration supports the enactment of H.R. 3468. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Coleman) in consultation with NRD (Kaplan, Cogswell, and Gibbons) and Interior (Moore). It is consistent with Interior testimony on the bill at a March 13, 1990, hearing before the House Merchant Marine and Fisheries Committee. H.R. 3468 would authorize the Secretary of the Interior to acquire three parcels of land -- totalling approximately 1,000 acres -- for expansion of the Stewart B. McKinney National Wildlife Refuge in Connecticut. Such acquisition would cost approximately $9.1 million. LEGISLAIVE REFERENCE DIVISION DRAFT July 12, 1990 - 1:05 PM PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 o July 30, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3493 - Route 66 Study Act (Watkins (D) OK) The Administration has no objection to H.R. 3493. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Peterson) in consultation with NRD (Cogswell and Gibbons) and Interior (Harris). The committee report is not available. Interior staff (Harris) advises, however, that H.R. 3493 would require the Secretary of the Interior to undertake a comprehensive study of U.S. Route 66. The study is to include an evaluation of the significance of Route 66 and options for preservation of features associated with the highway. Private sector initiatives are to be fully evaluated. The study is to include participation by representatives of associations interested in the preservation of Route 66 and its features. Within two years of receiving appropriations for the study, the Secretary is to submit it to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Interior and Insular Affairs of the United States House of Representatives. LEGISLATIVE REFERENCE DIVISION DRAFT July 26, 1990 - 5:22 PM ATM OFFICE UNITED D.STANCE EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 October 24, 1989 o (House Rules) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3506 - Temporary Protected Status for Nicaraguans, Salvadorans, Chinese, and Nationals of Other Countries (Moakley (D) Massachusetts) The Administration opposes H.R. 3506 because it would: -- undermine the comprehensive and fair system governing asylum and deportation established by the Refugee Act of 1980, by focusing on the nationality of the alien rather than on the merits of the individual's circumstances; -- favor aliens of particular nations and encourage additional nation-specific legislation to provide for similar preferential treatment; -- limit the President's foreign policy and other discretionary prerogatives that are exercised by either the Secretary of State or the Attorney General with respect to the deportation of foreign nationals designated by the bill; and -- direct inappropriately the General Accounting Office to investigate the treatment of displaced Salvadorans, Nicaraguans and Chinese nationals. (This provision poses a significant risk of legislative entanglement in functions assigned under the Constitution to the Executive branch.) With respect to nationals of China present in the United States as of June 6, 1989, the Administration -- in response to the unique circumstances in China -- has taken steps administratively to ensure that these aliens may remain in the United States. The Administration is continuing to monitor developments in China and intends to provide further immigration relief as circumstances warrant. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Blum), in consultation with the Departments of Justice (Wolf), State (Bachrach), Labor (Taylor), NSC (Dyke), White House Counsel (Rademaker), USIA (Isacco), TCJ (Fasano), IA (Sasser), and LVE (Rideout). 2 Given the sensitivity of this legislation, LRD recommends that this SAP be reviewed by White House staff (including the Vice President's Counsel's office, the Office of Policy Development, and the Domestic Policy Council staff). A copy of H.R. 3506 is not yet available for review. The Department of Justice advises informally -- based on conversations with House Judiciary Committee staff -- that H.R. 3506 will contain amended versions of both H.R. 45 and H.R. 2929 as reported by the House Judiciary Committee. (H.R. 45 concerns protecting Salvadorans and Nicaraguans in the United States from deportation, and H.R. 2929 would permit Chinese nationals and other aliens to remain in the United States, as discussed below.) House Rules Committee staff (Daniel) advises informally that H.R. 3506 will be offered as an amendment in the nature of a substitute to H.R. 45. Provisions of H.R. 45 as Reported by the House Judiciary Committee H.R. 45 would prohibit for three years the deportation of many Salvadorans and Nicaraguans who have been continuously residing in the United States prior to March 1, 1989, and who have not been convicted of various criminal offenses. H.R. 45 would provide that: (1) aliens must register with the INS within 180 days of the enactment of this legislation, and annually thereafter, in order to be protected from deportation proceedings; (2) registered aliens would be provided with documentation verifying their temporary eligibility to perform work within the United States; and (3) aliens covered by this legislation would not be eligible for Federal programs of public assistance except in the case of emergency medical treatment. (Note: H.R. 3506 is expected to preclude aliens from participating in any program of cash assistance except in the case of emergency medical treatment.) In addition, the bill would require the GAO to conduct an investigation on the treatment of displaced Salvadorans and Nicaraguans in the United States and in various Central American countries (e.g., Honduras). (Note: The provision contained in H.R. 3506 is expected to include Chinese nationals outside of their country.) The GAO report must be completed within two years and two months after the bill's enactment. After submission of the GAO report to Congress, the appropriate congressional committees must report on the need for any legislation to provide additional relief for displaced nationals of Nicaragua and El Salvador (and China -- H.R. 3506). 3 -- Administration Position To Date on H.R. 45 On July 31st, the Department of Justice sent a letter to the House Judiciary Committee opposing H.R. 45. In addition, the Departments of Justice and State testified in June before the Senate Judiciary Committee in opposition to similar legislation (S. 458). Provisions of H.R. 2929 as Reported by the House Judiciary Committee -- Chinese Nationals H.R. 2929 would prohibit for three years the deportation of Chinese nationals who have continuously resided in the United States since July 1, 1989. In addition, H.R. 2929 would provide that such aliens shall be considered as having continued to maintain lawful status as a nonimmigrant during the period of the deferral of the enforcement of departure. -- Aliens From Other Countries H.R. 2929 would permit the Attorney General to designate other groups to receive temporary protection from deportation. This protected status would be granted to aliens of foreign countries where the Attorney General finds that: (1) there is an ongoing armed conflict within the aliens' home country; (2) there has been an environmental disaster, and the home country would be unable to handle adequately the return of those aliens, and the home country has officially asked the United States to not deport such aliens; or (3) other extraordinary conditions exist in the aliens' home country. A designation of a country under either the first or third category would cause all eligible aliens in the United States who are nationals of that country to receive protected status. With respect to environmental disasters, the Attorney General may limit relief to aliens who are residents of the affected area. -- Other Provisions H.R. 2929 provides that protected status may be terminated if the Attorney General determines that the basis for granting the status no longer exists (or in cases of fraud or noncompliance with eligibility standards). In addition, H.R. 2929 would provide that decisions concerning granting, extending, or terminating the protected status will not be subject to judicial review. H.R. 2929, like H.R. 45, would provide work authorizations to aliens who have registered for and received protected status. Similarly, H.R. 2929 contains basic eligibility standards which aliens seeking to be temporarily protected from deportation must satisfy. In general, these standards would exclude aliens who 4 have been convicted of various criminal, drug, or national security offenses. Aliens would not be eligible for any program of public assistance except for treatment of an emergency medical condition. (Note: As contained in H.R. 3506, this provision is expected to preclude eligibility for any program of cash assistance -- except for treatment of medical emergencies.) H.R. 2929 also would provide that unless otherwise stated, its provisions would constitute the exclusive authority of the Attorney General to permit deportable aliens to remain in the country. (Currently, the Attorney General, usually with the recommendation of the Secretary of State, has the discretionary authority to permit deportable aliens to remain in the United States in appropriate circumstances. This deferral of deportation has come to be known as "extended voluntary departure.") The bill would also require the Attorney General to report annually to the House and Senate Judiciary Committees the number of nationals granted temporary protected status from deportation and related information. -- Administration Position To Date Concerning Chinese Nationals (H.R. 2929 and H.R. 2712) The Administration has not yet taken a position on H.R. 2929. On July 31st, a SAP was sent to the House opposing H.R. 2712, a bill which would waive the two-year foreign residence requirement imposed on certain exchange students who are Chinese nationals. Without such a waiver, these students would be required to return to China and live there for two years before being eligible to apply for an immigrant visa to the United States. The reasons expressed for opposing H.R. 2712 are consistent with those contained in this draft SAP. (The relief provided by H.R. 45 complements that provided by H.R. 2712.) In addition, on July 20th, the Departments of Justice and State and the USIA testified in opposition to H.R. 2712 before a House Judiciary subcommittee. The Justice witness opposed the waiver of the two-year foreign residence requirement because: (1) the immigration laws already provide for the administrative waiver of the foreign residence requirement; and (2) the Attorney General has ordered the INS to take all steps necessary to defer temporarily enforcing the departure of Chinese nationals who were in the United States on June 6, 1989. H.R. 2712 has passed both Houses, and conferees have been appointed. Legislative Reference Division Draft 10/24/89 - 12:45 p.m. wish PRESIDENT MASSACHUSETTS EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 September 21, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3533 - Earthquake Hazards Reduction Act Amendments (Emerson (R) Missouri and 71 others) The Administration supports reauthorization of the Earthquake Hazards Reduction Program (NEHRP) consistent with the President's budget. However, the Administration opposes enactment of H.R. 3533 because it would require unnecessary and costly modifications to the program. Specifically, H.R. 3533 is objectionable because it would: -- Authorize appropriations that exceed the President's budget by $31 million in FY 1991 and $231 million for FYs 1991-1994 for all four NEHRP agencies. -- Require minimum levels of funding by the National Science Foundation (NSF) that would impose unnecessary constraints on its support for earthquake-related research and adversely affect other high-priority NSF research programs. -- Confer unrealistic responsibilities on the Federal Emergency Management Agency (FEMA) with respect to the NEHRP's content and budgetary matters. -- Outline in statute specific agency responsibilities at a level of detail that would inappropriately restrict agency flexibility to effectively administer and respond to differing needs of earthquake hazard areas. -- Impose statutory requirements that would dilute levels of State and local financial support for the State seismic safety assistance program. -- Mandate fixed deadlines for the Federal Government to establish seismic safety standards for existing Federal and Federally-assisted buildings. These deadlines may be unrealistic given the need for more research in this area. Moreover, the bill fails to address the need for any such standards to be cost-effective. -- Require the Office of Science and Technology Policy to report to Congress on how it can play a role in coordination, planning, and operation of the program. Such responsibilities would duplicate the lead agency role and that of the proposed advisory committee. 2 ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Bowers), in consultation with The Departments of the Interior (West) and Commerce (Sockett), the Federal Emergency Management Agency (Levy/Cowan), the National Science Foundation (Chester), the Office of Science and Technology Policy (Maynard), HTF (Tanaka), NR (Kaplan), and ES (Fellows). H.R. 3533 has been reported in different versions by the House Committees on Science and on Interior. House Interior Committee staff (N. Johnson) has indicated that the version that will come to the House floor is a compromise developed by majority staff members from the two committees. That version was used to prepare this Statement. Summary of H.R. 3533 H.R. 3533 would reauthorize NEHRP at levels exceeding the Budget as described above. It would also modify the program in several ways; the most objectionable modifications are described above the line. Other provisions, i.e., those that are not objectionable, generally would place in statute existing agency policies. For example, the bill would statutorily set specific cost-sharing requirements for grants to States by FEMA. It would confer upon FEMA greater responsibility, supplanting the respective roles of other NEHRP agencies. Background The National Earthquake Hazards Reduction Program (NEHRP) Act is principally administered by four agencies (FEMA as the lead, the U.S. Geological Survey in Interior, NSF and the National Institute of Standards and Technology (NIST) in Commerce). The Adminisitration submitted legislation reauthorizing NEHRP for two years. It did not propose any modifications to the program. Administration Position To Date NSF sent a letter to the House Science Committee opposing H.R. 3533 because of excessive authorization levels, spending floors, and restrictive language codifying agency responsibilities. FEMA, Interior, NSF, and Commerce testified before the Committee in March supporting reauthorization of NEHRP at levels in the Budget and expressing concerns about H.R. 3533. 3 Legislative Reference Division Draft 9/20/90 -- 6:30 P.M. OFFICE IN RESIDENT* UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 2, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3544 - Transfer of a Naval Landing Shipdock to Brazil (Fascell (D) FL and Broomfield (R) MI) The Administration supports enactment of H.R. 3544. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Killgore/Rooney), in consultation with NSD (Greene), DOD (Brick), and State (Bachrach). H.R. 3544 is virtually identical to an Administration bill which was transmitted by Defense to Congress on September 13, 1989. The bill would authorize the Secretary of the Navy to lease the USS HERMITAGE, a landing ship dock, to the Government of Brazil. The HERMITAGE was decommissioned in October 1989, and is currently kept in reserve status. It is not expected that the HERMITAGE will be needed for U.S. use during the proposed lease period. However, should the HERMITAGE be required by the United States at any time during the lease period, a termination option would be exercised to return the ship immediately to U.S. Navy custody. H.R. 3544 specifies the following conditions for leasing the HERMITAGE: -- The requirement for congressional notification under the Arms Export Control Act is waived as unnecessary. -- All costs are to be borne by the Government of Brazil. This includes the costs of maintaining the HERMITAGE in condition close to fully operational during the period after decommissioning but before commencement of the lease term. 2 -- The initial lease of the HERMITAGE under this Act must be within two years of the date of enactment. -- Renewal of a lease entered into under this Act is authorized, subject to the statutory requirement to report lease terms to Congress prior to renewal. LEGISLATIVE REFERENCE DIVISION DRAFT 11/2/89 OFFICE DE RESIDENT* UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 0 April 19, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3545 Extending the Term of the Chesapeake and Ohio Canal National Historical Park Commission (Byron (D) MD and 8 others) The Administration supports enactment of H.R. 3545. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Coleman) in consultation with NRD (Taylor, Cogswell, and Gibbons) and Interior (West). It is consistent with Interior testimony on the bill at a March 6, 1990, hearing before the House Interior Committee. The Committee report on H.R. 3545 is not available. We have been advised by Interior staff (West), however, that H.R. 3545 would extend the term of the Chesapeake and Ohio Canal National Historical Park Commission for 10 years, from January 8, 1991, to January 8, 2001. The bill would also allow current members of the Commission to continue to serve after their terms expire until a successor has taken office. The Commission was authorized by P.L. 91-664 in 1971. It advises the Secretary "on general policies and specific matters related to the administration and development of the park." LEGISLATIVE REFERENCE DIVISION DRAFT 4/19/90 OFFICE RESIDEMT # UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 April 19, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.J.Res. - Technical Corrections in the Ethics Reform Act of 1989 ( ) The Administration supports enactment of H.J.Res. . ******** (Not to be Distributed Outside Executive Office of the President) This draft position was developed by LRD (Schreiber) in consultation with OGC (Damus). The Office of Government Ethics (Jane Ley), the Department of Justice (Nick Wise), and the White House Counsel (Amy Schwartz) concur in this position. There is no Committee report on this resolution, which has yet to be introduced. This resolution, which was initiated by Congress, incorporates suggestions from the Executive branch. Boyden Gray sent letters on March 19, 1990, to Senator Dole and others urging adoption of technical corrections amendments to the Ethics Reform Act of 1989 (P.L. 101-194). The joint resolution to be considered (which may be amended to include additional technical corrections) was reviewed and approved earlier by Justice, OGE, and the White House Counsel's Office. The two principal corrections which the resolution would make in the Ethics Reform Act would: -- reinstate a requirement for filing of financial disclosure statements by Executive and Judicial branch employees for calendar 1990; and -- restore to the definition of officers and employees of the U.S. "members of the uniformed services," for purposes of coverage under the criminal laws. The resolution would make numerous other technical corrections in the Ethics Reform Act. For example, there is a change to benefit Members of Congress by exempting from public disclosure gifts of food products provided by home-State businesses to a Member's office for publicity purposes and not for use of the Member. The 2 resolution would also correct and perfect a tax roll-over provision previously enacted to benefit persons who are required to divest assets to avoid a conflict-of-interest. LEGISLATIVE REFERENCE DIVISION DRAFT 4/19/90 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 10, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3550 Drug Forfeiture Amendments (Hughes (D) New Jersey) The Administration supports House passage of H.R. 3550, which is consistent with the Administration's proposal to make funds available to the Special Forfeiture Fund (SFF) periodically throughout the year rather than only at the end of the year. In 1990, the SFF will be used to help finance additional Federal prison construction, as proposed in the President's Drug Control Strategy. The Administration will seek deletion in conference of: -- section 2 (c), which makes SFF funds unavailable after January 31, 1990, if the Director of the Office of National Drug Control Policy has not designated high intensity drug trafficking areas by that date; and -- section 2 (d), which inappropriately interferes with Presidential discretion over the timing and transmittal of supplemental appropriation requests. ******** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Jukes), in consultation with the Department of Justice (Jones), the Office of National Drug Control Policy (ONDCP) (Kalder), TCJ (Duke, Sloan, Murphy, Vandenberg, Beebe, Schwartz), and BR (Rea). H.R. 3550 contains authority to transfer funds to the ONDCP's Special Forfeiture Fund (SFF) beginning after the first quarter of FY 1990, rather than at the end of FY 1990, as in current law. This provision is similar to a proposal in the Administration's bill to implement the President's 1989 National Drug Control Strategy. The SFF, established by the Anti-Drug Act of 1988, is to be used by the Director of ONDCP to carry out the National Drug Strategy. ONDCP advises that it intends to transfer these funds to Justice for Federal prison construction, consistent with the President's Budget and the conference report on the DOT FY 1990 appropriations bill. The SFF is financed by transfers from Justice's Assets Forfeiture Fund. 2 The bill also contains the following provisions: -- A prohibition on expenditures from the SFF after January 31, 1990, if the Director of ONDCP has not, by that date, designated "High-Intensity Drug Trafficking Areas" pursuant to the 1988 Act. The ONDCP Director has discretion to make such designations. If he does so, he may then, with the approval of other agencies, direct the temporary assignment of Federal personnel and take other actions to provide increased Federal assistance to such areas. -- A requirement that the President transmit, by February 28, 1990, a request for such supplemental appropriation as may be necessary for FY 1990 for deposit in the SFF; and -- The text of H.R. 2806, as passed by the House on October 17th. This bill, to which the Administration raised no objection in a SAP of October 5th, clarifies current law regarding the disposition of assets forfeited in connection with drug violations. (For example, it requires Justice to assure that the transfer of forfeited property to State or local law enforcement agencies bears a reasonable relationship to such agencies' participation in the operation on which the forfeiture is based.) Legislative Reference Division Draft 11/10/89 OFFICE WIS PRESIDENT MASSACHUSETTS UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 o July 30, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3562 - Nutrition Labeling and Education Act of 1989 (Waxman (D) CA and 18 others) The Administration recognizes that changes in nutrition labeling are needed. However, the Administration opposes H.R. 3562 as unnecessary in light of the Food and Drug Administration's proposed rules for nutrition labeling published in the July 19th Federal Register. Public comments are currently being accepted on those proposed rules. ******** OFFICE EDUBTES WTM PRESIDENT 0 STATE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 15, 1989 (Senate Floor) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3566 - DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1990 The Administration supports the FY 1990 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Bill as passed by the House on November 15, 1989, and urges its passage without amendment. PRINTER EXECUTIVE OFFICE OF THE PRESIDENT STATE OFFICE OF MANAGEMENT AND BUDGET STATE WASHINGTON, D.C. 20503 November 15, 1989 (House Floor) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3566 - DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1990 (Sponsors: Whitten (D), Mississippi; Natcher (D), Kentucky) The Administration supports the FY 1990 Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Bill as reported by the Full Committee on Appropriations on November 14, 1989, and urges its passage without amendment. EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 15, 1989 (House Floor) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3610 -- DISTRICT OF COLUMBIA APPROPRIATIONS BILL, FY 1990 (Sponsors: Whitten (D), Mississippi; Dixon (D), California) The Administration continues to object strongly to H.R. 3610, the FY 1990 District of Columbia Appropriations bill, as reported by the House Appropriations Committee. The bill, as reported, still deletes language included in the FY 1989 District of Columbia Appropriations Act that prohibits the use of all appropriated funds for abortion except where the life of the mother would be endangered if the fetus were carried to term. The Committee did take action to restrict the use of Federal funds for abortion, consistent with the FY 1989 language. However, this restriction was not applied to District of Columbia funds, which may still be used to pay for abortions. The President vetoed H.R. 3026 on October 27, 1989, because it did not include the FY 1989 language restrictions on both Federal and District funds. The Administration urges the House to restore the FY 1989 language on abortion so that the President is finally presented with a bill that he can sign. The absence in H.R. 3610, of the restriction on District of Columbia funds, would result in the President's senior advisors recommending that he veto the bill. EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 10, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3611 -- International Narcotics Control Act of 1989 (Fascell (D) - Florida and 36 others) The Administration has no objection to House passage of H.R. 3611 which authorizes appropriations for the President's Andean drug initiative. However, the Administration will seek amendments in conference to: -- clarify that the Special Defense Acquisition Fund (SDAF) should not be used solely for anti-narcotics purposes. The SDAF may be used to acquire defense articles for counter-narcotics assistance, but this is only one of several priority demands upon the Fund's resources; -- permit submission of certain reports to Congress on a classified basis to the extent necessary to protect ongoing counter-narcotics programs; and -- eliminate certain earmarking, reporting, and unnecessary notification provisions, which constitute objectionable congressional micromanagement of foreign affairs. Such requirements interfere with the President's authority to conduct foreign relations on behalf of the United States. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by State (BorroMeo), in consultation with LRD (Peterson/Killgore/Rooney) , Justice (Jones), Office of National Drug Control Policy (Martz), NSC (Beers), IAD (DuSault/Sasser/Kasten), OFPP (Vallina), and Special Studies (Duke). Defense, Treasury, and NSD were unable to respond within the allotted time frame. 2 The House Foreign Affairs Committee (HFAC) report on H.R. 3611 is not available. However, State (BorroMeo) advises that the bill includes the authorities the Administration requested to implement the President's Andean drug initiative. Provisions of H.R. 3611: -- Authorizes appropriations of $125 million for FY 1990 for the President to provide military and law enforcement assistance to Bolivia, Columbia, and Peru (Administration request). In addition, HFAC added a requirement for 15-day advance notice to Congress specifying: the country to which assistance is to be provided; the type and value of assistance to be provided; the units or agencies that will receive the assistance; and an explanation, among other things, of how the assistance will help Peru, Bolivia, and/or Columbia combat narcotics trafficking and production. The 1988 Anti-Drug Abuse Act included these provisions for FY 1989. -- Waives the Brooke-Alexander amendment for major illicit drug (viz., coca) producing countries (Administration request). The Brooke-Alexander Amendment prohibits foreign aid for any country which is delinquent one year or more in debt repayment to the U.S. Government. -- Waives Section 660 of the Foreign Assistance Act which prohibits financial support for any training, advice, or assistance to police, prisons, and law enforcement forces of any foreign government (Administration request). -- Generally tracks existing law in authorizing the President to enter into agreements with other countries to facilitate narcotics control and authorizes $115 million for FY 1990 (Administration Request). Among other things, the President would be required to take "all reasonable steps" to assure that equipment made available to foreign countries is used in ways that are consistent with the purposes for which the equipment was made available. Regulations governing these agreements would have to be submitted to Congress before they take effect. The State Department would be required to maintain "detailed records" on the use of aircraft made available to foreign countries, and these records would have to be available upon the request of either the HFAC or the SFAC. -- Authorizes the President to transfer excess defense articles to Latin American countries with democratic governments that respect human rights. Transfers would be limited to no more than $10 million per country per year. The President must provide Congress with at least 30 days advance notice of any 3 proposed transfer. Such notice must include: a certification of need for the transfer; an assessment of the impact of the transfer on the military readiness of the United States; and a statement of the value of the articles to be transferred. -- Earmarks $1 million in military aid for FY 1990 for defensive arming of anti-narcotics aircraft. Requires 15-day advance notice to Congress. The 1988 drug bill contained this same earmark and notice requirement for FY 1989. -- Earmarks $500,000 for FY 1990 for testing and use of safe and effective herbicides for aerial coca eradication. An identical earmark for FY 1989 was included in the 1988 drug bill. -- Limits aid to Mexico to $15 million in FY 1990, unless 15-day advance notification is provided to Congress. A similar provision was included in the 1988 drug bill. -- Exempts certain countries during FY 1990 from certification requirements of the Foreign Assistance Act of 1961 if certain conditions are met. The President would be required to certify to Congress that the conditions (e.g., that the country is cooperating fully with the United States in narcotics matters) have been met. The 1988 drug bill contained an identical provision for FY 1989. (This section is targeted at Turkey). -- "Urges" the President to place debt relief for Latin American countries and drug control efforts in those countries among the highest national foreign policy objectives. "Urges" the President to consult with other hemispheric leaders with an eye toward convening a summit meeting to consider problems of drugs and debt. -- Raises the ceiling on rewards for information relating to acts of international terrorism from $500,000 to $2 million. -- Establishes the Secretary of State as the coordinator for overseas anti-narcotics assistance. This provision was included in the 1988 drug bill. -- Generally restates certain existing drug law, with some changes. Key provisions would: prohibit the reimbursement of persons whose illicit drug crops are eradicated; waive certain restrictions on assistance for major coca producing countries; and provide assistance for specified crop substitution activities. In addition, the President would be required to take "all reasonable steps" to ensure that 4 assistance is not provided to any person that the President "knows or has reason to believe:' (1) has been convicted for violation of a drug law; or (2) is or has been an illicit trafficker in any controlled substance or is or has been a knowing assistor, abettor, or conspirator with others in illicit trafficking. The President would be required to issue regulations to implement this latter provision; such regulations would have to be submitted to Congress for review before taking effect. (No deadline is set for issuing the regulations.) -- Generally restates existing law regarding the International Narcotics Control Strategy Report (INCSR) which the President is required to prepare and submit to Congress each year. It changes current law by moving the mid-term update report from August to September and dropping a quarterly reporting requirement. The bill would: (1) require that the report incorporate the "specific comments and recommendations [of] appropriate Federal agencies involved in law enforcement, including the United States Customs Service and the Drug Enforcement Administration;" (2) require that a specified annual report (to be prepared by the Secretary of State) on assistance provided to foreign countries include "a section prepared by the Drug Enforcement Administration, a section prepared by the Customs Service, and a section prepared by the Coast Guard;" and (3) require the Secretary of State, "after consultation with the appropriate committees of the Congress" to establish guidelines for determining what are major drug-transit countries. -- Instructs the Treasury Secretary to direct U.S. representatives to the various multilateral development banks to vote against any loan to major drug producing or drug transiting countries (a restatement of current law). Foreign assistance must be withheld from a country unless the President makes certain certifications to Congress (e.g., that the country is meeting the goals of any applicable bilateral or multilateral narcotics agreement). This provision specifies in considerable detail what the President must take into account in making the required recertification of countries that have been decertified or that have not been certified previously. -- Clarifies the so-called "Mansfield Amendment" to provide that DEA agents may not arrest foreign nationals overseas. However, DEA agents may be present and assist at arrests carried out by their foreign counterparts if the American Chief of Mission in the country involved approves. Such agents would, as under current law, be permitted to take action to protect lives in emergency situations. LEGISLATIVE REFERENCE DIVISION DRAFT 11/10/89 PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 13, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3614 Drug Free Schools and Communities Act Amendments (Hawkins (D) CA and 14 others) The Administration will not object to House passage of H.R. 3614, because it contains two important Presidential proposals. The first would require local educational agencies and institutions of higher education to certify that they have established drug and alcohol abuse prevention programs. The second would authorize emergency grants to local educational agencies with the most severe alcohol and drug abuse problems. Another desirable provision would consolidate duplicative teacher training authorities under the Drug Free Schools and Communities Act. The Administration, however, will work in the Senate for deletion of many objectionable provisions in H.R. 3614. These include restrictions on the flexibility of Governors to address their States' drug abuse problems in ways most likely to be successful. There is no evidence of specific problems to indicate that these provisions are preferable to providing the Governors with the flexibility necessary to utilize resources effectively. The bill also includes unnecessarily burdensome administrative requirements on State and local educational agencies. ******** (Not to be Distributed Outside Executive Office of the President) This draft of a position was developed by LRD (Fairhall) in consultation with TCJ (Jim Duke) and LVE (Bernie Martin). The Departments of Education (Jack Kristy, Office of the General Counsel) and Health and Human Services (Mark Barnes, Counsel to the Secretary for Drug Policy), and the Office of National Drug Control Policy (Darryl Kaid, Office of Budget and Legislative Review) agree with this position. The House Education and Labor Committee Report on H.R. 3614 is not available. H.R. 3614 was introduced on November 8, 1989, and marked up by the House Education and Labor Committee on November 9th. The following description of the bill as ordered reported is based on information from Education staff (Kristy). Description of Bill Major provisions of H.R. 3614 would: 2 -- incorporate several proposals by the Administration, to: require local educational agencies and institutions of higher education to certify that they have adopted drug and alcohol abuse prevention programs, as a condition of receipt of any Federal funds; consolidate certain duplicative teacher training authorities; and make emergency grants to local educational agencies with the most severe alcohol and drug abuse problems. -- require 33 percent of the Governors' money to be spent in schools maintaining drug-free zones; -- require Governors to give priority to funding services for juveniles in detention facilities; -- authorize a State "by-pass" program for private schools; -- require distribution of funds to intermediate educational agencies when a local educational agency chooses not to participate in the program; -- require annual State and local performance reports; -- expand the National Diffusion Network to provide specific funding for drug education dissemination and technical assistance; -- authorize funding for social and recreational programs, and for "intervention" services by counselors, nurses, and psychologists; and -- add use of "anabolic steroids" to the definition of drug abuse in the Drug Free Schools and Communities Act. LEGISLATIVE REFERENCE DIVISION DRAFT 11/13/89 OFFICE wish CRESIDENT SERVIS UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 o November 14, 1989 (Senate) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3628 Capital Gains Tax Reduction (Jenkins (D) Georgia and 2 others) The Administration supports enactment of H.R. 3628 as it would be amended by Senator Packwood's proposal, S. 1771. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Jukes), in consultation with the Department of the Treasury (John Vogt, Legislative Affairs and Jim Miller, Tax Policy), the Council of Economic Advisers (Holtz-Eakin), and EP (Al-Samarrie and Dinkelacker). OPD (Lindsey) did not respond to our request for views. H.R. 3628 The following description of H.R. 3628 is taken from Chairman Rostenkowski's remarks in the Record of November 9th: H.R. 3628 is identical to the "Jenkins-Archer" capital gains reductions provisions contained in H.R. 3299, the budget reconciliation bill, as passed by the House on October 4th. The bill reduces the tax on capital gains by providing a deduction of 30 percent of the gain from sales or exchanges occurring from September 14, 1989, to December 31, 1991. Also, the gain would not be subject to the 5 percent tax known as the bubble. (The "bubble" refers to the 33 percent tax rate that applies to certain income levels, although incomes just above and below these levels are taxed at 28 percent.) This would result in a maximum tax rate of 19.6 percent on capital gains. After 1991, long-term capital gains would have a maximum tax rate of 28 percent and would be indexed. The bill also provides that passive activities do not include an interest in certain timber property held by individuals. Consequently, losses from the timber activity could be used to shelter other active income. 2 Packwood Substitute (S. 1771) We understand that the substitute to be offered by Senator Packwood is identical to the text of S. 1771, as introduced on October 19th. The following description of S. 1771 is based on Senator Packwood's remarks in the Record upon introducing the bill. -- Capital Gains Individuals. S. 1771 contains a permanent reduction in the capital gains rate for all assets (except collectibles) sold after October 1, 1989. The gain excluded from tax increases by 5 percentage points for each year the asset is held -- from 5 percent for assets held one year to 35 percent for assets held for seven years. (The intent is to encourage long-term investment.) The effective top tax rate for assets held for seven years or more would be 18.2 percent. Instead of the exclusion described above, individuals would have the option of reducing their gains by an inflation factor. The cost of assets owned for more than two years could be indexed for inflation occurring after 1990. Corporations. Corporate capital gains rates also would be reduced, based on a different sliding scale. The top tax rate would decrease from 33 percent (for assets owned for more than three years) to 29 percent (for assets held for more than 15 years). -- IRA Provisions A new type of Individual Retirement Account (IRA) (referred to by some as a "back-loaded" IRA) would be established. Unlike current law IRAs: -- interest earned would be tax-free when withdrawn upon retirement; and -- up to 25 percent of IRA funds could be withdrawn tax-free to purchase a first home, pay college education expenses of family members (including grandchildren), and pay catastrophic medical expenses. Current-law IRAs could be converted into the proposed new form of IRAs through December 31, 1991. IRA contributions previously deducted would be included in income over a four-year period. Contributions to the new IRA would not be deductible. Workers would be permitted to contribute up to $2,000 annually (increasing to $3,000 over five years), and non-working spouses could contribute up to $2,000. 3 Administration Position to Date In a September 26, 1989, letter to Members of the House, the President asked for a vote in favor of the Jenkins-Archer proposal, which is now embodied in H.R. 3628. Although OMB has not cleared a formal position statement on S. 1771, recent statements and testimony of Administration officials have been supportive of its elements. Legislative Reference Division Draft 11/14/89 STATE CRESIDENT UNITED 1 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 9, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R.3629 - Department of Commerce Quarterly Financial Report Program Extension (Sawyer (D) OH and Ridge (R) PA) The Administration supports enactment of H.R. 3629. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Blum), in consultation with the Department of Commerce (Bird), and TCJ (Edwards). H.R. 3629 is similar to a Commerce draft bill recently cleared by OMB. H.R. 3629 would extend from January 12, 1990, through September 30, 1993, a Commerce program which collects and publishes financial statistics (e.g., sales, profit, and asset figures) on a quarterly basis. The Commerce program is the primary source of data used for GNP and national income estimates and for the Federal Reserve Board's Flow of Funds Accounts. Legislative Reference Division Draft 11/9/89 - 4:30 p.m. OFFICE PRESIDENT SIVIS UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 13, 1989 o (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3630 - Emergency Drug Abuse Treatment Expansion Act (Waxman (D) CA) The Administration will not object to House passage of H.R. 3630 because it contains the President's proposal that States be required to develop Statewide Treatment Plans. However, the Administration is seriously concerned with the bill's provisions expanding some, and creating other, new categorical programs. For example, the bill includes a city-specific program which is objectionable for administrative reasons, and an increase in set-asides in the Alcohol, Drug Abuse, and Mental Health Services (ADMS) Block Grant. The Administration will urge the conferees to delete these provisions. The Administration also objects to taking funds from the State-administered ADMS Block Grant Program to create categorical programs. Where a State has specific needs, it would be far preferable for the State to target key areas, assist special populations, and ensure program accountability through its Statewide Treatment Plans. ******** (Not to be Distributed Outside Executive Office of the President) This draft of a position was developed by LRD (Pellicci) in consultation with HIMD (Kleinberg/Clendenin/Tibbitts and TCJ (Duke), HHS (Mark Barnes, Counsel to the Secretary for Drug Abuse Policy), and the Office of National Drug Control Policy (Bill Smith, Office of Legislation). The draft position is consistent with positions sent by HHS to the House Energy and Commerce Committee on November 8, 1989. To our knowledge, the House Committee bill is not expected to be introduced until Monday, November 13, 1989. (Committee action on the bill occurred on November 9, 1989). The proposed position is based on information from HHS (Mark Barnes) and ONDCP (Bill Smith) staff. Description of the Bill As reported, H.R. 3630 would: 2 -- provide for separate authorizations of appropriations for mental health and for substance abuse services within the ADMS Block Grant; -- create an Office of Treatment Improvement within HHS. The Administration supports statutory creation of an Office for Treatment Improvement. However, it objects to the Office as established in this bill because its authority would be limited to substance abuse services. The Administration believes that the Office should have responsibility for a broad range of substance abuse treatment programs and demonstration programs. -- establish a National Capital Area Drug Abuse Treatment Program. The Administration supports the D.C. initiative negotiated between the D.C. Government and the Office of National Drug Control Policy. However, the Administration believes the bill's proposal is too broad and would give the Council of Governments for the District so much discretion that the President's commitment to D.C. might not be fulfilled. Moreover, HHS has already planned to expand its efforts within the District of Columbia as part of its 1990 plans; -- increase from $100 million to $165 million the authorization level for the States waiting list reduction program, thus allowing for the appropriation given to the program in the FY 1990 Department of Transportation Appropriation Act ($40 million) ; -- create a model treatment program for pregnant and post-partum women and their infants. The bill requires HHS to spend $75 million for this activity. The Administration believes this amount is excessive, and that funding for this group is more appropriately done through the ADMS block grant rather than a categorical program; -- increase from 10 percent to 25 percent the set-aside for women under the ADMS Block Grant. The increase from 10 to 25 percent would require at least $100 million more to be spent than in FY 1989, placing an unrealistic requirement on the States; -- take funds from the ADMS block grant to create new categorical programs for areas of special need and for special populations. Currently, the States have the flexibility to focus treatment service dollars for pregnant and post-partum women and in areas of special need; and -- implement the President's request for State Drug Abuse Treatment Plans as a condition for receiving ADMS Block Grant funds. LEGISLATIVE REFERENCE DIVISION DRAFT 11/10/89 -- 3:31 PM TOTAL OF PRESIDENT UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 May 4, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3656 Coordinated Clearance and Settlement Act (Markey (D) Massachusetts and 5 others) The Administration supports the enactment of H.R. 3656. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Blum), in consultation with the Departments of Justice (Pestal) and the Treasury (Dugan), CEA (Robinson), HTF (Ohri), OIRA (McConnell, Waxman), and TCJ (Sloan). A copy of the House Energy and Commerce Committee report for H.R. 3656 is not yet available for review. However, the bill was ordered reported without amendment. Description of H.R. 3656 -- Coordinated Clearance and Settlement of Securities Transactions H.R. 3656 would require the SEC to establish a new national system for clearing and settling securities transactions. (Clearing and settlement refers to the process of obtaining payment and transferring ownership for a securities transaction.) The new system would handle transactions involving securities, securities options, futures contracts, and commodity options. The SEC would be required to consult with the Commodity Futures Trading Commission and the Federal Reserve System when establishing the new system. In addition, the SEC, in consultation with the Federal Reserve System and other relevant regulatory authorities, must report to Congress within two years concerning implementation of the new clearance system. -- Regulations Regarding Transfer of Securities H.R. 3656 would also authorize the SEC to adopt rules concerning the transfer of securities and the rights and obligations of relevant parties (e.g., purchasers, sellers, lenders) in such securities. The bill specifies that these rules may supersede State law if the Commission finds that: (1) the rule is 2 necessary to protect investors; (2) clearance and settlement of securities would be impeded substantially in the absence of a uniform rule; and (3) any impairment in rights of persons under State law is outweighed by the benefits of the rule. H.R. 3656 specifies that the SEC must consult with the Treasury and the Federal Reserve System regarding these findings. The SEC must consider all feasible alternatives to a proposed rule if the Treasury objects in writing to any of the SEC's findings. The SEC, however, may adopt the rule if it determines that such rule is the most practicable method for achieving efficient operation of a national clearance system. -- Establishment of Advisory Committee H.R. 3656 also requires that the SEC establish an advisory committee to assist in identifying State commercial laws and related Federal laws that do not adequately protect investors. The advisory committee would consist of 15 members (11 designated by the SEC and two each by the Federal Reserve System and the Treasury). The bill specifies that the committee would be subject to the provisions of the Federal Advisory Committee Act. Administration Position To Date On March 12th, the Treasury Department sent a report to the House Energy and Commerce Committee which stated that it supported the principal sections of H.R. 3656. Legislative Reference Division Draft 5/3/90 -- 4:30 p.m. OFFICE OF EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 May 4, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3657 - Securities Markets Stabilization Act of 1990 (Markey (D) Massachusetts and 5 others) The Administration supports House passage of H.R. 3657 but will seek amendments in the Senate to delete section 5. Section 5 would give the Securities and Exchange Commission sweeping powers to prohibit temporarily any practice that has "previously contributed to extraordinary levels of volatility" and that is "reasonably likely to engender" such volatility. In the Administration's view, these provisions are overly broad and potentially harmful. The Administration shares concerns that have been expressed about problems associated with major market disruptions. However, the Administration strongly opposes attempts to restrict particular trading strategies, including computer trading. The Administration is instead focusing on the mechanisms of the individual markets and inconsistent intermarket regulation that may cause major market disruptions. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Blum), in consultation with the Departments of Justice (Pestal) and the Treasury (Glauber/Dugan/Sukys), CEA (Stein), HTF (Rhinesmith/Ohri), and TCJ (Beebe). This draft position should be reviewed by the White House Counsel's Office before it is transmitted to the House. A copy of H.R. 3657 as ordered reported is not yet available for review. House Energy and Commerce Committee staff (Blumenthal) advises that the bill would: (1) expand the authority of the Securities and Exchange Commission (SEC) to suspend trading in emergencies; (2) require additional reporting by large traders about their activities; (3) increase the authority of the SEC to collect certain types of financial data regarding the financial health of parents and affiliates of brokers and dealers; and (4) provide the SEC with authority to restrain program trading during periods of extraordinary market volatility. The provisions of H.R. 3657 are described in greater detail below. 2 Description of H.R. 3657 -- Trading Halts H.R. 3657 would authorize the SEC to suspend trading: (1) in any security for a period not exceeding 10 days; and (2) on any national securities exchange for a period not exceeding 90 days. This authority can only be exercised when the SEC finds such actions to be in the public interest. In addition, before a market-wide suspension could become effective, the SEC must be notified that the President does not disapprove of the action. (Current law does not permit the SEC to suspend all trading in a market without first obtaining the President's approval.) The bill also specifies that the President could at a later date direct that the SEC's actions be repealed. In addition, H.R. 3657 would authorize the SEC during an emergency (i.e., major market disturbance) to take any action it deems necessary for the protection of investors with respect to any matter subject to its regulation. Such orders could be in effect for not more than 10 business days. The bill specifies that the orders are subject to both repeal by the President and judicial review. The bill would require courts to find that the SEC's actions were arbitrary, capricious, or otherwise not in accordance with law if judicial relief is provided. -- Large Trader Reporting H.R. 3657 would authorize the SEC to establish a two-tiered information gathering and reporting system for monitoring large securities transactions. The first tier would require large traders to report their identity and all the accounts used to effect such transactions. The second tier would require every registered broker or dealer to keep records of large trader transactions and provide such records to the SEC upon request. The SEC could prescribe rules governing the manner in which transactions and accounts shall be aggregated for reporting purposes. In addition, the bill would permit the SEC to exempt any person or class of transactions from these reporting requirements. -- Risk Assessment for Holding Companies H.R. 3657 would authorize the SEC to obtain information from registered brokers and dealers to monitor risks resulting from the activities of any of its "associated persons" (e.g., holding companies). If the SEC has concerns regarding the financial or operational condition of a broker or dealer, then further reports could be required from such broker's or dealer's associated persons. The bill specifies that these requirements would not 3 apply to those entities which (1) have a net worth of less than $25 million, and (2) do not derive significant revenues from activities in U.S. securities markets. In addition, the SEC could exempt any entity from the reporting requirements. H.R. 3657 would also provide that the SEC may not be compelled to disclose publicly any information otherwise required to be disclosed by statute (e.g., the Freedom of Information Act). -- Restrictions on Practices Which Result in High Levels of Volatility H.R. 3657 would authorize the SEC to issue rules to prohibit during periods of "extraordinary market volatility" any act or practice -- e.g., program trading -- that (1) has previously contributed to extraordinary levels of volatility, and (2) is reasonably likely to engender such volatility if not prohibited. The bill would authorize penalties not to exceed the greater of (1) $100,000 (or $500,000 for "nonnatural" persons) or (2) the pecuniary gain to the person violating the SEC's rules. H.R. 3657 would also authorize the SEC to issue "cease and desist orders" to persons planning to violate such rules. Administration Position To Date On March 12th, the Treasury department sent a report to the House Energy and Commerce Committee on H.R. 3657 objecting to the provisions that would authorize the SEC to prohibit temporarily program trading. The report opposed the restrictions on program trading for reasons consistent with the draft SAP. The report also stated that (1) other provisions of H.R. 3657 are "too important" to be jeopardized by the program trading provision, and (2) the Administration would continue to oppose the restrictions on program trading as the legislative process moved forward. Legislative Reference Division Draft 5/4/90 -- 1:30 p.m. OFFICE wish CRESIDENT* MASSACHUSETTS EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 September 21, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3684 National Environmental Education Act (Miller (D) California and 39 others) The Administration has no objection to House passage of H.R. 3684. However, the Administration will seek amendments in conference to incorporate the President's FY 1991 Budget proposal for the Council on Environmental Quality to establish awards for excellence in environmental education. The Administration will seek additional amendments, including amendments to ensure that the National Environmental Education Foundation authorized by this bill is not a governmental entity, and to delete the requirement that EPA develop model environmental education curricula. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Fitter) in consultation with NRD (vanHaagen, Watts), OPD (Toregeson), EPA (Hoff), CEQ (Curtis), Justice (Cohen), Commerce (Brown), Treasury (Levy), USDA (Ayers), Interior (Moore), NSF (Chester), Energy (Hunsicker), Defense (Brick), and OPM (Woodruff). Education (Feldman) advises that it believes the Administration position should be no objection rather than support. Education believes that it does not have a large enough role in the bill, and that the funds would be better spent on math and science education. Position to Date EPA has previously testified before the House and Senate in support of environmental education legislation (H.R. 3684/ S. 1076). S. 1076 passed the Senate on July 18, 1990. Provisions of H.R. 3684 H.R. 3684 would establish an Office of Environmental Education within EPA to coordinate several new environmental education programs established by this Act and to develop and disseminate model environmental curricula. The bill would authorize appropriations of $10 million for each of FYs 1992 and 1993, and $12 million for FYs 1994 and 1995. These programs are described below. 2 Environmental Education and Training Program The EPA Administrator would be required to make annual grants to institutions of higher learning or other research institutions to train educators in the development and delivery of environmental education and training. Environmental Education Grants These grants would support projects to design, demonstrate, and disseminate practices, methods, or techniques related to environmental education and training. Grants would be limited to $250, 000 and Federal funding for these grants is not to exceed 75 percent of the total project cost. Environmental Internships and Fellowships This program would allow college level students to work with Federal environmental professionals at EPA, CEQ, and the Departments of Defense, Commerce, Energy, Agriculture and the Interior in order to gain an understanding of the skills needed for environmental professions. The bill specifies that not less than one hundred and fifty internships would be awarded each year. Interns would be hired for periods not to exceed six months. Environmental Education Awards The Administrator is to provide for a series of national awards recognizing outstanding contributions to environmental education. Specific awards would be given for outstanding achievements in education, literature, and film. The Administrator would also be authorized to make awards to primary and secondary school students for outstanding projects to promote local environmental awareness. Environmental Education Advisory Council and Task Force The 16-member Council, to be appointed by the Administrator, would advise the Administrator on the activities, functions, and policies required by the Act. The Council is also required to report to Congress on the quality of environmental education in schools. The Environmental Education Task Force is to advise and make recommendations to the Administrator on the implementation of this Act, and to assure coordination with related activities of other Federal agencies. The Task Force would be chaired by the Administrator, and would include representatives from CEQ, NSF, and the Departments of Education, Agriculture, Energy, Defense, and the Interior. 3 National Environmental Education Foundation The Foundation is to accept and administer gifts for the benefit of environmental education and training activities and services of the EPA. It is also to undertake activities to further the development of an environmentally conscious public, and to assist foreign governments, entities, and individuals in activities to further environmental education and training world-wide. To this end the Foundation is to support and/or operate programs to educate and train educational and environmental management professionals. This would be accomplished through a national and international network of environmental education and training centers in various institutions including universities, museums and libraries. The Foundation's 19-member Board of Directors is to be appointed by the Administrator from individuals knowledgeable or experienced in the environment, education or training. The bill would authorize additional appropriations of $1.5 million for the Foundation for FYs 1992 through 1995, inclusive, to remain available until expended. LEGISLATIVE REFERENCE DIVISION DRAFT September 20, 1990 3:00 PM UNITED OFFICE OF EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 Q July 27, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3687 Establish a Memorial to George Mason in the District of Columbia (Parris (R) VA) The Administration has no objection to the enactment of H.R. 3687. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Apicella) in consultation with NRD (Cogswell and Reisner), Interior (Harris), NCPC (Gresham), Commission of Fine Arts (Atherton), and GSA (Brady). Background P.L. 86-86 authorized commemoration of the south-bound span of the 14th Street Bridge in the District of Columbia as the George Mason Memorial Bridge. However, the Colonial Dames at Gunston Hall believe that the bridge is not very recognizable as a memorial to George Mason. This sponsoring organization would like to erect a memorial structure on land near the bridge. Provisions of H.R. 3687 The committee report on H.R. 3687 is not available. We have been advised by Interior staff (Harris), however, that H.R. 3687 would authorize the Board of Regents at Gunston Hall to establish a memorial to George Mason. The memorial would be placed on Federal land in the District of Columbia adjacent to the George Mason Memorial Bridge. There would be no cost to the Federal Government. LEGISLATIVE REFERENCE DIVISION DRAFT July 27, 1990 - 5:33 PM OFFICE will PRESIDENT SIVIS GELIC EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 17, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3694 Minidoka Project (Stallings (D) Idaho and six others) The Administration opposes enactment of H.R. 3694, because the bill is technically deficient. The Island Park Dam would have to be opened during the winter in order to meet the December 1992 deadline imposed by the bill. This requirement is impractical because of problems encountered with concrete setting in cold, freezing weather. The bill also raises questions about project cost allocations and charges for power, thus bringing existing arrangements into question. Finally, the bill would set an undesirable precedent by having the Federal Government pay for wildlife mitigation costs, which properly belong to project sponsors. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Fitter), in consultation with NR (Wolf, Long, Gibbons), and Interior (Harris). H.R. 3694 was introduced on November 16, 1989, and was reported to the floor without a hearing. The bill would authorize the Department of the Interior to reimburse the Fall River Rural Electric Cooperative, Idaho, for expenditures incurred to meet environmental protection requirements for a specified hydroelectric power development project. The project in question is the Island Park Dam and Reservoir, Upper Snake River Division, Minidoka Project, Idaho and Wyoming. The bill would also authorize appropriations of $1 million for this purpose. LEGISLATIVE REFERENCE DIVISION DRAFT 11/17/89 THE OF PRESIDENT STATE EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 o July 16, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3719 - Florida Keys Protection Act (Fascell (D) Florida and 32 others) The Administration has no objection to House passage of H.R. 3719 but may seek a Senate amendment. The Administration does not oppose the statutory designation of the Florida Keys National Marine Sanctuary because preliminary Commerce Department studies support such a designation. However, the Administration would oppose any future statutory designation of marine sanctuaries. The current designation process ensures that adequate environmental assessments are made and all points of view are considered. The Administration may seek a Senate amendment to clarify that the President can direct the opening of areas within the Sanctuary for development if national security so requires. H.R. 3719 prohibits mineral, oil, and gas development within the boundaries of the Sanctuary. The President recently decided to limit oil and gas activity in South Florida and begin cancellation of existing leases off Florida. The President, however, stated that, "all decisions regarding OCS [Outer Continental Shelf] development are subject to a national security exemption." **** (Not to be Distributed Outside Executive Office of the President) This Statement of Administration Policy was drafted by the Legislative Reference Division (Bowers), in consultation with the Departments of Commerce (Brown), the Interior (Moore), Justice (DeSanctis), State (Rappaport), the Treasury (Levy), and Transportation (DeCell), the Environmental Protection Agency (Basseuner), the National Security Council (Deal), the Army Corps of Engineers (Knickerbocker/Koster), the Council on Environmental Quality (Curtis), White House Counsel (Holmstead/Layton), OPD (McBee), TCJ (Tornquist), and NR (Reisner). Background The Florida Keys and their surrounding waters are considered to form an extremely sensitive and valuable marine ecosystem. The coral reefs in the area are the most well-known and economically important aspects. Visiting the Keys on Earth Day, 1990, 2 President Bush stated that the reefs are "a unique national treasure. Protecting the reefs from damage, both from vessel groundings and pollution, is imperative." The reefs were damaged in late 1989 when three large commercial vessels were grounded off the Florida Keys. The 1988 reauthorization of the Marine Protection, Research, and Sanctuaries Act (MPRSA) -- which governs marine sanctuary designation, research, and monitoring -- required Commerce to study certain areas in the Florida Keys for possible designation. Initial results of Commerce's study support designation. Summary of H.R. 3719 The purpose of H.R. 3719 is to protect the marine environment of the Florida Keys by: (1) designating a National marine sanctuary; (2) restricting commercial vessel traffic within the area; and (3) requiring international negotiations to designate the sanctuary as an area to be avoided by commercial vessel traffic. -- Sanctuary Designation The bill designates a specified area as a National marine sanctuary, to be managed in compliance with the MPRSA. The boundaries are consistent with recommendations by Commerce in May 10th testimony before a House Merchant Marine and Fisheries subcommittee. As is required by existing law, the Secretary of Commerce and the Governor of Florida are provided discretion to modify the boundaries. Commerce is also directed to issue regulations and develop a management plan. Commerce would be assisted by an advisory council, with representatives from all levels of government and the user communities. -- Appropriations Authorizations H.R. 3719 authorizes appropriations for marine sanctuary management activities under the MPRSA at $3,750,000 for FY 1991 and $4,000,000 for FY 1992. The FY 1991 Budget provides $3,629,000. -- Prohibition of Vessel Traffic H.R. 3719 prohibits operation of tank vessels in the Sanctuary, and allows the Secretary of Commerce and the Department in which prohibition. the Coast Guard is operating to issue regulations to modify this -- Mineral/Hydrocarbon Leasing, Exploration, Development The bill as amended by the House Merchant Marine and Fisheries Committee would prohibit leasing, exploration, development, or production of minerals and hydrocarbons within the sanctuary. 3 On June 26, 1990, the President announced a series of decisions relating to oil and gas development on the OCS. With respect to Florida, his decision was to begin cancellation of existing leases off Florida. The area would be excluded for consideration for any lease sale for at least 10 years. The decisions were based on several principles, one of which states that OCS development decisions are subject to a national security exemption. -- Water Quality Management Merchant Marine and Fisheries Committee staff (Pittman) has indicated that the Committee will amend the bill further before it reaches the floor. The amendment would require Commerce, EPA, and the Governor of Florida to develop a water quality protection program for the Sanctuary. Administration Position to Date On May 10, 1990, Commerce and Transportation testified before a House Merchant Marine and Fisheries subcommittee on H.R. 3719. Commerce stated that the Administration opposes congressional intervention into the designation process, but recognizes that in 1988 Congress initiated the designation process for the Florida Keys (The 1988 MPRSA authorization required Commerce to study the area for possible designation.) Since Commerce's initial studies, mandated by law, support designation, the Administration did not oppose the designation in H.R. 3719. Transportation supported the intent of the bill and proposed modifications, generally concerning the boundaries. The bill as ordered reported reflects those changes. The oil and gas development prohibition was added to the bill when it was ordered reported by the full Committee. Legislative Reference Division Draft 7/13/90 -- 12:00 Noon OFFICE will PRESIDENT STATE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 November 20, 1989 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3730 Miscellaneous and Technical Social Security Act Amendments of 1989 (Rostenkowski (D) IL and three others) The Administration strongly opposes H.R. 3730 because: -- It extends a $190 million general fund subsidy for the railroad retirement program. The President, in a message on the program transmitted to Congress on September 29, 1989, opposed this subsidy to the rail industry. -- It includes numerous social security administrative requirements that would burden further the Social Security Administration, which has already been underfunded by Congress. -- It includes numerous objectionable Medicare provisions making substantive changes and placing restrictions on the Secretary's ability to manage the Medicare program effectively. In addition, the bill would increase the Federal budget deficit by up to $110 million in FY 1990 and $630 million over five years. There is no urgent need for enactment of H.R. 3730 now. Many provisions in the bill are minor and are not needed at this time (minor social security and railroad retirement coverage provisions, Family Support Act technical amendments, intergenerational demonstration authority). Some current law extensions, which are labeled time-sensitive, are not scheduled to expire until June 1990 (disability demonstration authority) or are not needed until later in the fiscal year (foster care transfers), leaving ample time for consideration in the next session. Some provisions should be addressed in other legislation. For example, exempting Medicare maintenance-of-effort payments from FICA and certain other taxes should be addressed in the catastrophic insurance bill. Furthermore, the Administration supports liberalizing benefits for adopted children under social security, as proposed by the President, in separate legislation. Continuing disability benefits during appeal also should be enacted separately. ******** 2 (Not to be Distributed Outside Executive Office of the President) This draft of a position was developed by LRD (Pellicci) in consultation with HIMD (Kleinberg/Lieberman/Capretta) . . HHS (per Frances White, Associate General Counsel for Legislation) agrees with the position. LEGISLATIVE REFERENCE DIVISION DRAFT 11/20/89 I PRESIDENT MASSACHUSETTS EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 o July 13, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3774 Aging Aircraft Safety Act of 1990 (Oberstar (D) Minnesota and 2 others) The Administration has no objection to enactment of H.R. 3774. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Brown), in consultation with the Department of Transportation (Herlihy), OIRA (Clarke), and TCJ (Adkins, Pheto, and McClean). Provisions of H.R. 3774 H.R. 3774, as ordered reported by the House Public Works and Transportation Committee, would require the Federal Aviation Administration (FAA) to issue a rule, within 180 days of enactment, mandating that: -- the FAA conduct inspections and reviews sufficient to assure that aircraft used by air carriers (particularly those with over 15 years of service) are safe; -- air carriers demonstrate to the FAA that their maintenance of age-sensitive aircraft components is sufficient to assure safety; and -- air carriers make aircraft and records available to FAA inspectors to the extent necessary to carry out inspections and reviews required by the rule. The bill would also require the FAA to establish, within 180 days of enactment, programs to: -- verify that air carriers are complying with FAA maintenance requirements; -- train FAA inspectors and engineers to conduct audits of air carriers' inspections of aircraft for corrosion and metal fatigue; and 2 -- ensure that air carriers demonstrate to the FAA their commitment and competence to assure the airworthiness of their aircraft. Administration Position To Date The Department of Transportation testified at a House Public Works and Transportation subcommittee on May 1, 1990, in opposition to an earlier version of the bill. That version would have required the FAA to inspect and certify the airworthiness of each "aging" aircraft. The bill was subsequently amended to delete that requirement. Legislative Reference Division Draft 7/12/90 - 6:00 p.m. PRESIDENT STATE EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 July 13, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3787 Chehalis River Basin Fishery Resources Study and Restoration Act (Unsoeld (D) WA and Swift (D) WA) The Administration supports the enactment of H.R. 3787. ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Coleman), in consultation with NRD (Kaplan, Cogswell, and Gibbons), Interior (Moore), Commerce (Brown), Corps of Engineers (Bond), Army (Rees), EPA (Wood), DOE (Tyson), Justice (DeSanctis), and USDA (McAndrew). It is consistent with Interior testimony on the bill at a hearing before the House Merchant Marine and Fisheries Committee on May 8, 1990. The Committee report on H.R. 3787 is not available. We have been advised by Interior staff (Moore), however, that H.R. 3787 would require the Director of the Fish and Wildlife Service to conduct a comprehensive study of the fishery resources of the Chehalis River Basin in the State of Washington. The study would also include recommendations for actions to restore and conserve those fishery resources. The Director would be required to transmit the study to Congress by October 1, 1992. The Director would be required to invite the State of Washington and two Indian tribes to participate in the conduct of the study, if such non-Federal participants pay at least one-third of the study's costs. The Director would be required to consult with the National Marine Fisheries Service, Army Corps of Engineers, EPA, Federal Energy Regulatory Commission, and the Soil Conservation Service in conducting the study. Finally, H.R. 3787 would authorize appropriations of $2 million to the Director to conduct the study. LEGISLATIVE REFERENCE DIVISION DRAFT July 12, 1990 - 4:10 PM OFFICE with PRESIDENT UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 April 23, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3811 - Parks Centennial Act (Pashayan (R) CA and 4 others) The Administration supports House passage of H.R. 3811, which provides for celebrating the centennials of National Park System units. The Administration will, however, seek amendments in the Senate to: -- Clarify that the roles of the centennial commissions are purely advisory. This clarification would ensure that section 2 (b) does not violate the Appointments Clause of the Constitution. -- Amend section 7 to authorize, instead of require, the President to issue commemorative proclamations. -- Eliminate the earmarking and automatic appropriation of excess receipts from the sale of the centennial histories of park units (section 6). -- Modify section 5 to authorize, rather than require, the Secretary of the Interior to contract for the preparation of centennial histories. It is not clear that each of the 355 units of the National Park System will warrant the preparation of such a history. * (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Coleman) in consultation with NRD (Taylor, Cogswell, and Gibbons), Interior (West), Justice (DeSanctis), and White House Counsel (Nelson). The Committee report on H.R. 3811 is not available. We have been advised by Interior staff (West), however, that H.R. 3811 would: -- Require the establishment of a centennial commission for each unit of the National Park System to plan for events to celebrate the 100th anniversary of the 2 establishment of the park. Affected Governors and local governments would each make recommendations to the Secretary of the Interior, from which at least two members of each such commission would be chosen. Justice believes that, given this involvement of non-Federal officials in selecting commission members, the role of such commissions must explicitly be limited to an advisory capacity to avoid Appointments Clause problems. -- Authorize the Director of the National Park Service (NPS) to accept donations for events recommended by such commissions. -- Require the Secretary to contract for the preparation of a centennial history of each park for public sale, and earmark the profits for park purposes. We do not object to earmarking receipts as user fees to pay for producing the histories. We do object, however, to earmarking without appropriation any "excess" receipts to park purposes. -- Require the President to issue a proclamation acknowledging the centennial of each park. As a matter of legal policy, Justice believes the President should be "authorized and requested" to issue such proclamations, instead of being required to do so. LEGISLATIVE REFERENCE DIVISION DRAFT 4/20/90 STATE OFFICE RESIDENT STATE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 March 26, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3847 - Department of Environmental Protection Act (Conyers (D) Michigan and 22 others) The Administration strongly supports House passage of the Hastert Substitute to H.R. 3847. The Substitute would provide for the straight-forward elevation of EPA to cabinet status. The Admini I stration is strongly opposed to certain provisions of H.R. 3847 because they would interfere unacceptably with the President's authority to manage the Executive branch and with the functioning of the proposed new Department of Environmental Protection. As stated in the Statement of Administration Policy (attached) sent to the House Rules Committee, the President's senior advisers, including the EPA Administrator and the Attorney General, would recommend a veto of H.R. 3847 in its current form. The following is a summary of the objectionable provisions in H.R. 3847: -- Mandatory delegation of all information collection, analysis, and dissemination from the Secretary to the Bureau of Environmental Statistics. -- Prohibitions on (1) departmental review and approval of Bureau data collection, analysis, or dissemination activities, and (2) any Executive branch official review and approval of the substance of any Bureau reports. -- A limitation on the removal of the Bureau Director from office -- i.e., only for malfeasance in office, maladministration, or neglect of duty. -- A limitation on the number of Deputy Assistant Secretaries and Senior Executive Service positions to be filled by political appointees. -- Miscellaneous provisions concerning the confidentiality of statistical data, advisory panel disclosure and membership requirements, restrictions on the hiring of contractors, and conflict-of-interest requirements. A further explanation of the basis for the veto recommendation on H.R. 3847, as well as the Administration's objections to other provisions in the bill, are summarized in the Attachment. 2 ***** (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Fitter), in consultation with NR (Cameron, Fairweather), OIRA (Coffy), OFPP (Baker), GC (Damus), WH Counsel (Holmstead), EPA (Perry), State (Strachan), CEQ (Curtis), Commerce (Brown), Treasury (Sukys), Interior (Wade), USDA (Madson), Justice (Cohen), Energy (Tyson), NASA (Maguire), HHS (Spiegel), Defense (Brick), CEA (Grunspecht), Transportation (DeCell), OSTP (Diering), and OGE (Ley). Hastert Substitute The Hastert Substitute would redesignate EPA as the Department of Environmental Protection; provide for a Department seal; and continue the effect of existing EPA legal proceedings. It would also allow for the appointment by the President, by and with the advice and consent of the Senate, of a Secretary, Deputy Secretary, no more than 10 Assistant Secretaries, and a General Counsel. The Secretary would be authorized to appoint 20 Deputy Assistant Secretaries (DAS) or such number as he determines is appropriate. -- Limitation on Political Appointees One-half of the DAS positions, however, would have to be filled by career Senior Executive Service (SES) employees. Also, in any fiscal year, the number of non-DAS SES positions filled by noncareer appointees could not exceed 12 percent of the total number of employees in SES positions in the Department at the end of the preceding fiscal year. These personnel provisions are identical to provisions in S. 2006 both as introduced and reported. The SAP on H.R. 3847, which was sent to the Rules Committee on March 22nd, opposed similar, but not identical, limitations on the number of political appointees because they would impose "unacceptable Congressional micromanagement. " H.R. 3847 specifies that (1) at least two-thirds of the DAS positions must be filled by individuals with at least five years of Federal civil service experience; and (2) no more than 10 percent of SES positions be filled by non-career appointees. -- Reconfirmation Requirement EPA advises that the Hastert Substitute is silent on whether or not its political officers would be subject to reconfirmation. 3 OPM Opposition to Hastert Substitute OPM advises informally that Director Newman opposes the Hastert Substitute because it limits the number of political appointments that could be made. LEGISLATIVE REFERENCE DIVISION DRAFT 3/26/90 EXECUTIVE OFFICE OF THE PRESIDENT EDUCATION SERVIS UNITED OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 April 20, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3848 - Depository Institution Money Laundering Amendments of 1990 (Annunzio (D) Illinois and 33 others) The Administration supports enactment of H.R. 3848, as reported by the House Committee on Banking, Finance, and Urban Affairs. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Fotias), in consultation with the Departments of the Treasury (Kaufman) and Justice (Webber), the Federal Reserve Board (Werneke), HTF (Rhinesmith/Long), and GC (Damus). Description of H.R. 3848 H.R. 3848 would require Federal regulatory agencies to place into conservatorship or revoke the charter of Federal depository institutions found guilty of money laundering or monetary transaction report offenses. For State-chartered institutions, Federal deposit insurance agencies would be authorized to appoint a conservator if the State regulator did not appoint one under State law after 10 days notice. H.R. 3848 would also require the termination of Federal deposit insurance to State depository institutions found guilty of money laundering. There would be limited exceptions to these requirements (e.g., when ownership of an institution had changed after the commission of an offense). The Federal Housing Finance Board, the Attorney General, and the regulatory agencies would be required in their annual reports to Congress to identify financial institutions found guilty of money laundering and the actions taken against them. Also, individuals convicted of money laundering offenses would be removed from office and barred from any further participation in the affairs of any financial institution. H.R. 3848 would authorize Treasury to assess fines of up to $5,000 against institutions that repeatedly and negligently fail to comply with the Bank Secrecy Act and reporting regulations. Under current law, the Treasury Secretary may impose fines up to $500 for each negligent violation. 2 The bill would also require Treasury to adopt final regulations on recordkeeping requirements for international fund transfers before January 1, 1991. The bill directs Treasury to balance the usefulness of such requirements for criminal and other investigations against their costs and effects on the efficiency of the funds transfer system. Additional provisions of H.R. 3848 would: -- Exempt from civil liability any institution which, in good faith, files a suspicious transaction report or refuses to do business with a customer that it has in good faith reported. -- Require financial institutions to prepare detailed written statements on the basis for granting exemptions from Cash Transaction Reporting (CTR) requirements. The person seeking the exemption would be required to certify, under penalty for perjury, the truth of the financial institution's written statement. -- Require institutions to conduct an annual review of CTR exemptions and to submit to Treasury annually a list of persons granted exemptions. -- Authorize State supervisory agencies to obtain CTRs and customs monetary instruments reports from Treasury. Administration Position to Date In March 8th testimony before the House Banking Subcommittee on Financial Institutions, Justice and Treasury opposed the introduced version of H.R. 3848. As introduced, H.R. 3848 would have mandated charter revocation (the "death penalty") for a bank convicted of a money laundering offense. As reported, the bill gives regulators the option of revoking the charter or placing the institution into conservatorship. This compromise was proposed by the Administration because the so-called "death penalty" could be inappropriate in cases involving the unauthorized actions of a low-level employee. Legislative Reference Division Draft 4/16/90 -- 4:00 p.m. PTM PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 June 15, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3859 Financial Assistance for the Washington Center for Internships and Academic Seminars (Ford (D) MI and 10 others) The Administration opposes H.R. 3859. If H.R. 3859 were presented to the President, the Secretary of Education would recommend that it be vetoed. H.R. 3859 would authorize the Secretary of Education to grant up to $12 million to the Washington Center for Internships and Academic Seminars. The funds would be for construction and related costs of a student residence and classroom building in Washington, D.C. Financing for construction of these private facilities is not an appropriate role for the Federal Government. Furthermore, it is inequitable to earmark funds for the Washington Center on a non-competitive basis. ******** (Not to be Distributed Outside Executive Office of the President) This draft of a position was developed by LRD (Jeffrey Weinberg/Suzanne Duval) in consultation with LVE (Bernie Martin, Barry White, and Lisa Fairhall). The Department of Education (per Jack Kristy, Office of the General Counsel) concurs. We have not seen the Committee report on H.R. 3859. Department of Education staff advise that the bill was reported as introduced. Administration Position to Date The draft position is the same as the one taken in a letter of March 8, 1990, from Secretary Cavazos to Chairman Hawkins of the House Education and Labor Committee. Description of H.R. 3859 H.R. 3859 would authorize appropriations for FYs 1991 through 1993 totaling $12 million for construction of facilities for the Washington Center. During each of those years a grant could be made by the Secretary of Education to match the amount of private contributions for the project received in cash or in kind. 2 The Center arranges congressional, agency, and public service internships for college students for credit. It is a private non-profit organization that receives funding from the colleges of participating students or from the students themselves and from private contributions. LEGISLATIVE REFERENCE DIVISION DRAFT 6/14/90 EXECUTIVE OFFICE OF THE PRESIDENT STATE UNITED OFFICE OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 May 24, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3897 - Administrative Conference Appropriations Authorization (Rep. Brooks (D) Texas) The Administration supports the enactment of H.R. 3897. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Blum), in consultation with the Administrative Conference (Edles), GC (Damus), and TCJ (Sloan). H.R. 3897 is similar to an Administrative Conference bill cleared by OMB in August 1989. H.R. 3897 would authorize appropriations of not more than $2.0 million for FY 1990, $2.15 million for FY 1991, $2.3 million for FY 1992, $2.5 million for FY 1993, and $2.7 million for FY 1994. The draft cleared by OMB authorized "such sums as may be necessary" for FYs 1991-1994. The enacted FY 1990 appropriation for the Administrative Conference is $1.8 million. The President's Budget requested $2.08 million for FY 1991. H.R. 3897 contains other provisions similar to those contained in the OMB-cleared draft bill. These provisions would: -- Increase from $1,000 to $1,500 the amount of appropriated funds that the Conference may expend annually for official representation and entertainment expenses for foreign dignitaries. -- Authorize the Conference to conduct certain studies for Federal agencies concerning the efficiency of administrative procedures. The bill would also provide that funds obtained from such agencies to conduct the studies may be expended in years following the one in which the funds were received. -- Clarify the authority of the Chairman of the Conference to request that Federal agencies provide notice before entering into contracts to study the efficiency or fairness of agency proceedings. Legislative Reference Division Draft 5/24/90 -- 5:30 p.m. FREE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 February 22, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3910 National Assessment of Compensatory Education Programs for the Disadvantaged (Hawkins (D) CA and Goodling (R) PA) The Administration has no objection to enactment of H.R. 3910. ******** (Not to be Distributed Outside Executive Office of the President) The above draft position was developed by LRD (Fairhall) in consultation with LVE (Bayla White/Barry White/Bernie Martin) and OIRA (Jim Houser). The Department of Education (Paul Riddle, Office of the General Counsel) concurs in this position. Administration Position To date the Administration has not taken a position on H.R. 3910. H.R. 3910 was reported by the House Education and Labor Committee on February 20, 1990. The committee report is not available. Description of H.R. 3910 According to Education, H.R. 3910 as reported by the committee reflects extensive drafting assistance provided by the Department. The following description is based on information from Education staff. Major provisions of H.R. 3910 would: -- require the Secretary of Education to conduct a comprehensive national assessment of Chapter 1 of title 1 of the Elementary and Secondary Education Act. (Chapter 1 provides financial assistance to: (1) local school districts for disadvantaged children and (2) State educational agencies for special educational services to children with special needs, including children of migrant workers, certain handicapped children, and certain neglected or delinquent children.) -- specify an agenda for the assessment including evaluations of: (1) the progress made by State and local educational agencies in implementing the Program Improvement provisions and school-wide projects; (2) the overall effectiveness of the Chapter 1 Basic Grant program; (3) the operation and 2 effectiveness of Even Start; and (4) the operation and effectiveness of the program for migrant children. -- require the assessment to be planned, reviewed, and conducted in consultation with an independent panel of researchers, State and local practitioners, and other appropriate individuals. -- require the Secretary of Education to consult with the House Education and Labor and Senate Labor and Human Resources Committees in designing and implementing the assessment. -- reserve up to a total of $6 million from amounts appropriated for Chapter 1 for FYs 1990 through 1993, for the purpose of conducting the assessment. The reserved amounts must be expended before January 1, 1993. -- require the Secretary to submit to Congress a preliminary report by June 30, 1992, and a final report by December 1, 1992. This assessment will be the third mandated by Congress in the past 15 years. LEGISLATIVE REFERENCE DIVISION DRAFT 2/22/90 OFFICE EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 July 23, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 3950 - Food and Agricultural Resources Act of 1990 (de la Garza (D) Texas and Madigan (R) Illinois) If H.R. 3950 were sent to the President prior to the conclusion of the budget summit and does not achieve substantial, multi-year savings from the current (Mid-Session) estimate of program costs; and if price and income supports are not made more market-oriented than the Committee version, which is a retrogression from the 1985 Act; then the Secretary of Agriculture and the President's other senior advisers would recommend that he veto the bill. From a budget perspective, the bill is both premature and inadequate. The Administration expects the budget summit to achieve substantial, multi-year savings from our Mid-Session Review baseline. Thus, it would be a mistake for Congress to complete action on a bill that gives producers the wrong impression by sending them inaccurate signals about likely program parameters. From a policy perspective, H.R. 3950 includes provisions for commodity subsidies that would reverse the strides toward market orientation made in the 1985 Food Security Act. O Raising loan rates (which act as price floors) threatens to undermine U.S. farmers' hard-won gains in recapturing a competitive position in world markets. Congress raised loan rates in the 1981 Farm bill, and the results were devastating. Our exports collapsed and so did U.S. farm income. We must not risk a repeat of that experience. Freezing most program crop target prices at 1990 levels and effectively raising others fails to achieve savings. Additional costs of $1 billion will be incurred by the bill's requirement that target prices be raised if the portion of land to be idled by acreage reduction programs (ARPs) is increased above the levels projected by the Mid-Session Review. 2 A new marketing loan subsidy is established for soybeans and at least six other oilseeds. The program would do little to increase U.S. production and world market share and would likely cost the taxpayers about $2 billion over the next five years. Increased competitiveness could be accomplished more effectively and at less cost by the Administration's planting flexibility proposal. The creation of a substantial new subsidy for an entire category of crops is indefensible in a time of serious fiscal constraints. The provisions for dairy support establish a program that is much less market-oriented and more onerous to the consumer and taxpayer than the existing one. The bill prohibits the Secretary from reducing the support price below its current level, regardless of the stocks which accumulate in Federal inventories. Inflexible price supports encourage farmers to continue to generate surplus milk, which must then be purchased and stored at Federal expense, at absolutely no risk to the producers. Discriminatory two-price schemes envisioned by the bill necessitate production quotas that further insulate the dairy sector from market forces. Failure to enact true planting flexibility for program participants would perpetuate the market distortions that arise when government incentives, not the market, dictate production decisions. In addition, the substantial cost-effective environmental benefits of increased crop rotation would be largely foregone under the partial base protection provisions. The bill fails to reform the wool and mohair, peanut, and honey programs. These programs are all archaic constructions, no longer suited to modern market and budget realities. By maintaining the sugar price support at its current level, the bill perpetuates the inequity between the treatment of sugar and other program commodities. As a result of the current sugar program, American consumers have paid close to double the world market price for sugar for the last five years, at an annual cost of over $1.5 billion. In order to begin to relieve this 3 burden, the Administration recommends an immediate ten percent reduction in the sugar price support. Moreover, it is doubtful that the sugar program envisioned in the bill could comply with the no-net cost provision of existing legislation. We estimate that the program would result in outlays of close to $200 million over five years. In addition, the bill necessitates a marketing control program for domestic sugar and crystalline fructose. A new sugar re-export program is a preferential program that could violate our international obligations and would induce additional production thereby depressing raw sugar prices. The commodity provisions of H.R. 3950 would cost $55 billion over the next five years, $1 billion over current law baseline, and $19 billion over the Administration's budget proposal. Equally important is the fact that the bill would greatly increase the likelihood of budget outlays beyond $55 billion. This enormous potential for costs far above the current forecast arises mainly from the lack of adequate Secretarial discretion to adjust loan rates and set-asides when market conditions warrant. The bill is also written so that only slight, and quite plausible, changes in market prices could trigger substantial outlays. This is particularly true for the oilseed marketing loan provision. Only a slight drop in prices would trigger major Federal expenditures. The Administration strongly opposes the nutrition title of H.R. 3950 as currently drafted. The program expansions are estimated to exceed the current law baseline by $543 million in FY 1991 and almost $5.4 billion over five years. These costs are in addition to the current law baseline growth of 16 percent or $2.5 billion, from FY 1990 to FY 1991. Such an expansion is totally inconsistent with the deficit reduction being sought in the ongoing budget summit and is an example of the type of mandatory cost expansion that has fostered the current crisis. The bill should reauthorize nutrition programs consistent with the Administration's proposals and any subsequent bipartisan budget agreement. The bill authorizes another $25 billion for programs in foreign food assistance, science and education, conservation, forestry, and marketing and inspection. Spending at this level would exceed the five-year current law baseline by $3 billion. 4 Considering these authorizations along with direct spending on commodity and food assistance programs, the bill would add $9.4 billion to the current law baseline over the next five years. While we generally support the Agriculture Committee's actions with respect to foreign food aid programs, the Administration has concerns with a number of provisions of the trade title proposed by the Foreign Affairs Committee. The Administration objects to the attempt to bypass Presidential authority by dictating the Executive branch structure for implementing the program. The P.L. 480 program serves multiple legislative objectives and affects a wide variety of domestic and international interests. Therefore, it is imperative that the President maintain the authority to direct and delegate responsibilities for the program. The Administration strongly objects to the 15-day advance congressional notification requirement before signing agreements. This is inconsistent with efforts to expedite the food aid decision-making process, and could cause unnecessary and potentially harmful delays in providing food assistance to needy countries. Although the intent of the Latin America debt-for-nature swap language parallels part of the President's "Enterprise for the Americas" initiative, we believe debt reduction and the environment need to be considered in the context of a comprehensive strategy for trade, investment, and economic growth. With respect to the export assistance program provisions of the Foreign Affairs Committee version, the Administration believes funding for the newly established Market Promotion Program should be reduced from $325 million annually to $200 million annually, the level contained in the Agriculture Committee version. The Administration also opposes reporting requirements under the Long-Term Trade Strategy Report which duplicate existing reports. Finally, the Administration opposes the Market Development Task Force because it duplicates the activities of the recently established Trade Promotion Coordination Committee (TPCC). The TPCC is an interagency working group which will coordinate and streamline trade promotion assistance for all types of goods and services, including agriculture. The Administration also has serious objections to provisions in H.R. 3950 apart from the commodity, food assistance, and trade titles. 5 In the conservation and research titles, the water quality incentive programs and integrated farm management program are not likely to achieve sufficient environmental benefits while adding at least $500 million to costs. Moreover, pollution prevention should not be financed by the taxpayer. Such costs should be spread equitably across society instead of through special treatment for one sector of the economy. This policy, endorsed by the Administration, was recently reinforced in the Senate-passed Clean Air bill. In the research title, the Administration objects to the provision to establish an institute providing the private sector with financial incentives for commercialization of agricultural products. As with other technologies, the appropriate Federal role is support of research and development and rapid transfer of new technology through such mechanisms as cooperative research and licensing arrangements. * * * * * 6 (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by NRD (Offutt) and LRD (Coleman), in consultation with NRD (Gibbons), OIRA (Grove), HIMD (Brentlinger), IAD (Speckhard and Dorsey), USDA (Campbell), EPA (Coronado), CEQ (Bear), CEA (Ballenger), USTR (Early), AID (Honnold), Treasury (Levy), State (Rappaport), Commerce (Van Hanswyck), and Interior (Hill). Administration Position to Date In testimony before the House Agriculture Committee, Secretary Yeutter and his sub-cabinet officers have emphasized the Administration's commitment to maintaining the course toward reliance on market forces that was set by the Food Security Act of 1985. Opposition to practically every action of the Committee has been registered by the Department of Agriculture during hearings and markups since February. The Secretary also sent a lengthy letter to Chairman de la Garza on May 11, 1990, before full committee action detailing these objections. Summary of H.R. 3950 In summary, H.R. 3950 would: -- Reauthorize the food stamp program for five years with major expansions such as raising basic benefits from the current 103% of the Thrifty Food Plan to 105% by 1995, eliminating the cap on the "excess shelter" deduction and allowing food stamp recipients to own more expensive cars. Additionally, the bill would forgive some $480 million in quality control liabilities owed by States with excessive error rates in their food stamp programs. The bill also reauthorizes expiring nutrition programs. -- Set subsidy provisions for wheat, feedgrains, cotton, and rice. Loan rates, which act as price floors, are effectively set at levels above those that currently prevail, and the Secretary's ability to reduce them as needed to avoid surplus accumulation is severely circumscribed. Legislatively-set target prices (intended to supplement farm income by guaranteeing payments to farmers on a portion of historical production) are frozen at 1990 levels, stopping the two-percent rate of annual decline established by the 1985 Act. Acreage reduction programs (ARPs) require participating farmers to set aside a portion of their acreage in return for price and income supports. In the bill, the Administration's selection of ARP levels must conform to triggers based on stocks-to-use ratios by commodity. Limited flexibility to plant any program crop or oilseeds on 25 percent of base acreage is provided, with the condition that supplemental income 7 payments on program crops planted on these acres must be foregone. -- Establish a sugar program that maintains the current 18 cent minimum loan rate, provides for triggered mandatory domestic marketing controls and a re-export program if imports fall below certain levels. Moreover, the no net Treasury cost condition of the sugar title could well be violated if excess domestic supply is taken under storage and defaulted to the government. -- Revise the dairy program to establish the current support price ($10.10 per hundredweight) as the minimum over the five years of the bill. This provision restricts Secretary's ability to manage supply by reducing the support price, as current law allows and would increase outlays by $2.5 billion over five years, more than double the projected cost of a current law extension. -- Extend the current wool and mohair program without the reform requested by the Administration to convert it to a target price-deficiency payment scheme comparable to those for other commodities. The peanut program is extended and the quota loan rate and quota are increased, further raising costs to consumers. The honey support price is increased, and the Administration proposal for reform along the lines of wool and mohair is rejected. -- Reauthorize the P.L. 480 food aid program with a number of objectionable modifications. These include a 15-day congressional notification requirement before signing agreements, and delegation of program authority to AID and USDA. This delegation provision appears to be an attempt to bypass the President and reduce the role of other agencies in decision-making. Finally, the P.L. 480 provisions include broad authority for allowing debt forgiveness for Latin America which goes beyond the Administration's proposal. -- Reauthorize the export assistance programs. The bill continues the Export Enhancement Program at roughly current levels and adds $225 million in guarantee authority for emerging democracies. The bill also adds $125 million to the Targeted Export Assistance program, which provides grants to trade organizations to promote products in oversees markets. -- Include portions of the President's tree initiative, including the Tree Foundation and Community Trees components and authorizes $80 million for miscellaneous items not requested (rural fire fighting, forestry research, timber bridges, private stewardship incentives, 8 and insect control). The Administration has and continues to support separate legislation for the President's initiative to help ensure timely action. With the necessary flexibility that has been agreed to, however, various components within the Forestry title provide the basis for a successful tree planting program that would meet the goal of planting one billion trees per year. -- Authorize a maximum enrollment of 45 million acres for the Conservation Reserve Program, but unlike the 1985 farm bill does not mandate a minimum level. Without a minimum, this could be viewed as consistent with Administration policy). The bill also retargets the program toward environmentally sensitive lands. -- Authorize a voluntary, paid easement for wetlands and loans to landowners to aid in implementing farm conservation practices. The proposal would also establish two new programs in water quality and integrated farm management, providing voluntary participants with financial assistance, including some subsidy yield and base acreage protection. -- Authorize USDA to finance businesses that intend to develop new technologies that utilize agricultural commodities, requiring an independent institute and regional centers for administration. The bill creates numerous new centers and management organizations that will harm the Department's ability to plan and manage its research and extension programs. In addition to these provisions, the research title also provides for, and greatly exceeds, the President's funding request for the National Research Initiative. LEGISLATIVE REFERENCE DIVISION DRAFT July 18, 1990 - 1:00 PM wish EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 August 2, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 4000 - Civil Rights Act of 1990 (Hawkins (D) California and 183 others) If H.R. 4000 were presented to the President in its current form, or with only the amendments under the rule relating to quotas and damages, the President's senior advisers would recommend a veto. If H.R. 4000 were presented to the President in the form of the LaFalce substitute, the President's senior advisers would recommend approval. The remainder of this Statement is divided into two parts: (1) the reasons for the Administration's opposition to H.R. 4000; and (2) the reasons for the Administration's positions on the amendments. H.R. 4000 On May 17, 1990, the President stated three principles that must guide any new civil rights legislation. The committee amendment in the nature of a substitute to H.R. 4000 meets none of them. First, civil rights legislation must operate to obliterate consideration of factors such as race, color, religion, sex, or national origin from employment decisions. However, Section 4 as drafted would inevitably lead employers to adopt hiring and promotion quotas. This would result from the bill's unfair alteration of longstanding rules of civil litigation as they apply to "disparate impact" cases under Title VII of the Civil Rights Act. Unless an employer's bottom-line numbers are "correct," he or she will face the almost certain prospect of lawsuits in which a successful defense will be virtually impossible. Similarly, Section 6 would in certain circumstances insulate unlawful quotas from challenge in court. Section 4 also violates the second principle stated by the President: any bill must reflect the fundamental principles of fairness that apply throughout our legal system. In addition, Section 6 would encourage the settlement of certain cases at the expense of innocent non-parties; close the courts to some individuals whose civil rights have been violated; and insulate some consent decrees that impose quotas from appropriate judicial review. Similarly, Section 13 would shield "affirmative action," "court-ordered remedies," and "conciliation agreements" from the neutral application of the bill's other provisions. 2 Third, a civil rights bill should contain a deterrent against workplace harassment, but it must do so in a manner that is reasonable and does not produce a windfall for lawyers. Section 8 would provide for jury trials and the award of compensatory and punitive damages in Title VII cases. This would radically transform the Civil Rights Act by undermining its carefully balanced system of mediation and conciliation. The Administration also believes that the protections of any civil rights bill should be extended to employees of Congress in a meaningful way, which necessarily includes redress in the courts. It is fundamentally unfair to allow potential defendants to decide how complainants may present claims and to pass on their merits. Other provisions are also objectionable, including: ill-advised rules on attorneys fees; an unclear provision affecting "mixed motive" discrimination cases; unconstitutional retroactivity provisions; unnecessarily open-ended and excessive "limitations periods;" and an improper rule of construction. Amendments The rule on H.R. 4000 makes three amendments in order. Quotas. The first amendment would amend Section 4 of the bill in two respects. It would specify that the "mere existence of a statistical imbalance in the employer's workforce is not alone sufficient to establish a disparate impact violation," and it would specify that nothing in the bill would "require an employer to adopt hiring or promotion quotas These provisions are purportedly intended to address the Administration's stated objection that H.R. 4000 will coerce employers into adopting quotas. In fact, these provisions do nothing of substance. As to the first provision, it is never the "mere existence of a statistical imbalance" that is alleged in a disparate impact case, but rather an imbalance caused, albeit unintentionally, by a challenged practice. Thus, the "exception" created by the first provision is really no exception at all. As to the second provision, it is the Administration's view that H.R. 4000 will result in quotas, not by requiring them directly, but by inducing employers to adopt surreptitious quotas in order to avoid the cost and trouble of disparate impact lawsuits -- which H.R. 4000 makes extremely difficult for employers to win. Finally, neither provision addresses those features of Section 6 of the bill which would insulate many illegal quota agreements from challenge. Damages. The second amendment provides a limited "cap" to the compensatory and punitive damages provision in Section 8 of H.R. 4000. As the Administration has noted before, however, Section 8 discards the carefully balanced remedial framework of 3 Title VII of the Civil Rights Act of 1964 and replaces it with a radically different tort-style approach. In our view, Title VII has worked quite well for the last 26 years. Putting a cap only on punitive damages that is available only for companies of less than 100 employees -- and putting no cap at all on the award of compensatory damages, including payments for pain and suffering and emotional distress awarded by a jury -- is a minor change at best. LaFalce Substitute. The third amendment -- the LaFalce substitute bill -- is not perfect, but it goes a long way toward correcting the objectionable provisions of H.R. 4000. If Congress passed the LaFalce substitute, the President's senior advisors would recommend that he sign it. ***** (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Brown), in consultation with the Department of Justice (Wise) and White House Counsel (Lund). An eariler version of this SAP -- which did not address the amendments -- was also reviewed by the Departments of Labor (Rooney) and Education (Heindel), EEOC (Sayer), the Office of Policy Development (McGettigan), Office of Cabinet Affairs (Williamson), GC (Damus), and TCJ (Beebe). A language of the committee amendment to H.R. 4000 that will be considered on the House floor is not available for review. Justice (Wise) advises that it is the version reported by the House Judiciary Committee, which is very similar to S. 2104 as passed by the Senate on July 18th by a vote of 65-34. The version of H.R. 4000 ordered reported by the House Education and Labor Committee on May 8th differs from the Judiciary version. The following description of the bill is based on our understanding of the text that will go to the floor. (Time did not permit detailed description of the amendments "below the line. ") Recent Supreme Court Decisions and Related Provisions of H.R. 4000 H.R. 4000 is designed to reverse six recent Supreme Court decisions. These decisions and the related provisions of H.R. 4000, as ordered reported by the House Judiciary Committee, are described below. 4 -- Wards Cove Supreme Court Decision. In "disparate impact" cases under Title VII of the Civil Rights Act, the burden is on plaintiffs to identify a particular employment practice and show that the employment practice does not serve "in a significant way, the legitimate employment goals of the employer. (A "disparate impact" case is one in which no intentional discrimination is alleged but an employment practice is alleged to have an unjustified, though inadvertent, disparate impact based on race, color, religion, sex, or national origin.) H.R. 4000 (Section 4) overrides the Supreme Court in three ways. First, it places the burden on the defendant to demonstrate that an employment practice is "required by business necessity" if significant numerical disparities are found. Second, Section 4 contains a lengthy definition of the term "business necessity" which states that it is intended to codify the definition of "business necessity" in the Griggs case and to overrule Wards Cove. The language is different from any proposed by Governor Sununu or accepted by him. (See "Administration Position to Date," below.) Third, Section 4 would relieve plaintiffs of the obligation to identify specific practices and to prove causation. -- Price Waterhouse Supreme Court Decision. Where an employment decision is proven to have been based in part on race, color, religion, sex, or national origin, Title VII has not been violated if a defendant can show that the same decision would have been reached if such factors had not been considered. H.R. 4000 (Section 5) provides that a violation of Title VII is proven if a contributing factor in an employment decision is shown to have been a complainant's race, color, religion, sex, or national origin. The term "contributing factor" is not defined, and it may not mean "causal factor." However, a court could not order a hire, promotion, or reinstatement if the defendant showed that the complainant would not have been hired, promoted, or retained even if discrimination had not been a factor. -- Wilks Supreme Court Decision. Persons not party to, but adversely affected by, consent decrees mandating unlawful racial preferences can challenge them in court. 5 H.R. 4000 (Section 6) bars challenges to such consent decrees by non-parties if: (1) they had notice of the proposed judgment; (2) their interests were "adequately represented" by another person who challenged the decree; or (3) a court determines that "reasonable efforts" were made to provide notice to them. -- Lorance Supreme Court Decision. The statute of limitations with respect to a discriminatory seniority system begins to run on the date it is adopted by the employer, not the date the complainant is adversely affected by it. H.R. 4000 (Section 7) specifies that where a seniority system has been adopted "with the intent to discriminate," the "application" of the system constitutes an unlawful practice throughout the period that it is in effect. -- Patterson Supreme Court Decision. The statutory guaranty of the right to "make and enforce contracts" regardless of race ("Section 1981") applies only during the formation of a contract. H.R. 4000 (Section 12) specifies that the right to "make and enforce contracts" regardless of race extends beyond the formation of the contract to "the enjoyment of all benefits, privileges, terms and conditions of the contractual relationship." H.R. 4000 would further specify that the prohibition applies to private as well as governmental discrimination. -- Shaw Supreme Court Decision. Prevailing plaintiffs in job discrimination cases against the Federal Government may not recover interest to compensate for delays in obtaining relief. H.R. 4000 (Section 10) permits plaintiffs prevailing in Title VII discrimination cases against the Federal Government to recover "the same interest to compensate for delay in payment" as would be available in cases involving non-public parties, "except that prejudgment interest may not be awarded on compensatory damages. " 6 Other Provisions of H.R. 4000 In addition, H.R. 4000 would: -- Amend the current requirement that an employment discrimination complaint be filed within 180 days after "the alleged unlawful employment practice occurred" to permit complaints to be filed within two years after the practice "occurred or has been applied to affect adversely the person aggrieved, whichever is later." (Section 7) -- Authorize jury trials and compensatory damages for intentional violations of Title VII and punitive damages when violations are committed with malice or callous indifference to the rights of others. (Section 8) -- Authorize awards of expert witness fees to prevailing parties in Title VII cases. (Section 9) -- Authorize prevailing parties to recover attorneys fees in addition to other costs, even for work performed after they have rejected a settlement offer more favorable than the final judgment. H.R. 4000 would also guarantee plaintiffs' lawyers a fee unless the parties or their counsel attest that waivers of attorney fees were not "compelled as a condition of settlement." (Section 9) -- Authorize prevailing parties, where judgments or orders granting relief are subsequently challenged, to recover from the original defendants the costs of defending (as a party, intervenor, or otherwise) the judgment or order. If the party attacking the judgment prevails, then the defendant must pay those costs. (Section 9) -- Lengthen the statute of limitations from 30 to 90 days for filing suits against the Federal Government following final agency actions. (Section 10) -- Specify, with respect to Federal laws protecting the civil rights of persons, that: (1) all such laws shall be "broadly construed to effectuate the purpose of such laws to provide equal opportunity and provide effective remedies;" (2) that no such laws shall "be construed to repeal or amend by implication any other Federal law protecting such rights;' and (3) agencies and courts, in interpreting such laws, shall not use this bill as "a basis for limiting the theories of liabilities, rights, and remedies available" under such laws unless the law has been specifically amended by this bill. (Section 11) 7 -- Specify that the bill shall not be construed to "require an employer to adopt hiring or promotion quotas, " provided that the bill "shall not be construed to affect court-ordered remedies, affirmative action, or conciliation agreements that are otherwise in accordance with the law. The bill does not forbid quotas. (Section 13) -- Provide that H.R. 4000 shall apply to Congress, but that the means for its enforcement shall be determined by each House. (Section 16) Presidential Statement On May 17th, the President stated that he would support civil rights legislation which met three stated principles. The first principle was that legislation must operate to obliterate considerations of factors such as race, color, religion, sex, or national origin from employment decisions. In this regard, the President said, "I will not sign a quota bill," and expressed concern that quotas could be an unintended consequence of legislation. Second, the legislation must reflect fundamental principles of fairness. Specifically, individuals who believe their rights have been violated are entitled to their day in court, and an accused is innocent until proved guilty. Third, the civil rights laws should provide an adequate deterrent against workplace harassment. They should not, however benefit lawyers by encouraging litigation at the expense of conciliation or settlement. The President also stated that Congress "should live by the same requirements it prescribes for others." Administration Bill On February 21, 1990, the Justice Department transmitted an Administration bill that was subsequently introduced as H.R. 4081/S. 2166. The Administration bill would reverse Lorance and Patterson, consistent with H.R. 4000. Administration Position to Date The President's May 17th statement is summarized above. On July 17th, Governor Sununu stated that S. 2104 "as crafted right now is a quota bill and the President has said he will veto that quota bill." Governor Sununu also said that a tentative agreement with Senate negotiators that subsequently fell apart was still the basis for an acceptable bill. 8 In a July 10, 1990, letter to Senator Kennedy, Governor Sununu proposed compromise language intended to minimize the likelihood that H.R. 4000 would result in quotas. Specifically, the term "justified by business necessity" would have been defined to mean that: "the challenged practice or group of practices has a manifest relationship to the employment in question or that the respondent's legitimate employment goals are significantly served by -- even if they do not require -- the challenged practice or group of practices." Governor Sununu's letter also sought substantial changes in the bill's treatment of "groups of practices" and causation. Justice Department reports of April 3, 1990, and May 8, 1990, on S. 2104 and H.R. 4000, respectively, stated that the Attorney General "and other senior advisers" would recommend a veto of the bills in their then-current form. A SAP on H.R. 4000 sent to the House Rules Committee on July 31, 1990, was essentially identical to this one, but was silent on the amendments. The position on the amendments is derived from a draft letter on H.R. 4000 that is expected to be signed by the Attorney General on August 2, 1990. Legislative Reference Division Draft 8/2/90 -- 11;30 a.m. PRESIDENT STATE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 October 12, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 4009 - Federal Maritime Commission Authorization (Jones (D) North Carolina and 3 others) The Administration has no objection to the enactment of H.R. 4009 as amended by the Senate. The Administration would, however, oppose the enactment of any amendments which would: -- Permit vessels of the Soviet Union to enter U.S. ports in addition to those currently covered by the U.S.-Soviet Maritime Agreement signed on June 1, 1990. Such an amendment would constrain the President's exercise of his constitutional responsibilities to conduct foreign relations and protect the national security. -- Impose costs and paperwork for which no need has been established by mandating new bonding requirements for certain ocean common carriers. These two provisions were included in H.R. 4205 as passed by the House. (Not to be Distributed Outside Executive Office of the President) This draft Statement of Administration Policy was developed by the Legislative Reference Division (Brown), in consultation with the Departments of Transportation (Bronner), Justice (Dulmage and Colborn), and State (Davis), the Federal Maritime Commission (FMC) (Miles), IA (Sasser), and TCJ (Adkins and Wimmer). The FMC advises that it disagrees with the statement's objection to any amendment incorporating the bonding requirements of H.R. 4205 as passed by the House, but does not object to the transmission of this statement to the House. Potential Objectionable Amendments According to House Merchant Marine and Fisheries Committee minority staff (Robinson), it is possible that the House will be asked to vote on a version of H.R. 4009 which includes the objectionable provisions described above. 2 The referenced agreement with the Soviet Union permits vessels of that nation to enter specific U.S. ports without completing the normal, lengthy procedures for obtaining permission to enter. According to Transportation, inclusion of the amendment cited "above the line" could inspire similar moves to add other ports to the list, including ports not included in the treaty due to national security concerns. The other objectionable potential amendment would impose a $50,000 bonding requirement on so-called non-vessel operating common carriers (firms which own no vessels, but consolidate cargo for shipment overseas by vessel operators). The FMC believes that this requirement is necessary to prevent defaults by these carriers. Transportation, on the other hand, objects that a bonding requirement is unjustified because there have, in fact, been few defaults by these carriers. Provisions of H.R. 4009 The principal provisions of H.R. 4009, as passed by the Senate, would: -- Authorize FY 1991 appropriations for the Federal Maritime Commission (FMC) of $15,894,000 (the amount requested in the President's Budget). -- Clarify (1) the scope of FMC's existing authority to address and correct unfair foreign trade practices, (2) which persons and entities are eligible to petition the FMC for correction of unfair foreign trade practices, (3) the FMC's authority to compel the provision of documents or testimony, and (4) the sanctions the FMC may impose where unfair foreign trade practices are found. -- Authorize the imposition of a $5,000 fine for failure to comply with FMC subpoenas or information production orders. -- Provide that a report of the Advisory Commission on Conferences in Ocean Shipping to the President and Congress shall be due one year from the date all Commission members have been duly appointed (rather than one year from the date the Commission was established, as provided in current law). -- Authorize the Secretary of Transportation to extend coastwise trading privileges to 24 named vessels not currently eligible for such privileges. 3 Administration Position to Date In a Statement of Administration Policy provided to the House on March 19, 1990, the Administration stated that it had no objection to H.R. 4009. In a letter to the Senate Commerce, Science, and Transportation Committee dated October 4, the Department of Transportation stated that it opposed the bonding requirement in H.R. 4205 as passed by the House. 10/12/90 -- 4:00 P.M. OFFICE PRESIDENT SEAVIS UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 February 22, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 4010 Screwworm Eradication (de la Garza (D) Texas and 23 others) The Administration supports enactment of H.R. 4010. * * * * * (Not to be Distributed Outside Executive Office of the President) This draft position was prepared by LRD (Coleman), in consultation with NRD (Jenkins, Beard, and Gibbons), USDA (Henstridge), and AID (Hunnold). The Committee report is unavailable. We have been advised by USDA staff (Henstridge), however, that H.R. 4010 is an Administration proposal to allow USDA to sell sterile screwworms, as part of a United Nations effort to control an outbreak of this pest in Libya. The screwworm is a flesh-eating parasite that poses a serious threat to livestock. It has been eradicated from the United States. The Secretary of Agriculture participates in international efforts to eradicate the screwworm in Mexico and Central America. The pest has recently been discovered in Libya. To prevent spread of the screwworm throughout Africa, the Food and Agricultural Organization of the United Nations wishes to purchase sterile screwworms from a production facility in Mexico that is jointly owned and operated by Mexico and the United States. H.R. 4010 would provide the necessary authority for such sales. It would also earmark the receipts from such sales -- estimated at approximately $1 million -- to the operation of the program. This would enable the facility to expand its production to meet the new demand. LEGISLATIVE REFERENCE DIVISION DRAFT 2/22/89 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 June 14, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 4039 - Disabilities Prevention Act of 1990 (Conte (R) MA and three others) The Administration has no objection to enactment of H.R. 4039. ******** (Not to be Distributed Outside Executive Office of the President) This draft position was developed by LRD (Pellicci) in consultation with HIMD (Turman). HHS (per Fran White, Associate General Counsel for Legislation) concurs in the proposed position. The proposed position is consistent with HHS testimony before the House Energy and Commerce Subcommittee on Health and the Environment on March 19, 1990. The House Energy and Commerce Committee report is not yet available for review (the bill was ordered reported on May 15, 1990). The description of the bill is based upon discussions with HHS staff. Provisions of H.R. 4039 H.R. 4039 would continue the Centers for Disease Control's (CDC) Disabilities Prevention Program, currently operating under general Public Health Service Act authorities. The bill would authorize $10 million in FY 1991, $15 million in FY 1992, and $20 million in FY 1993. The goal of CDC's program is to reduce the incidence and severity of disabilities, including those caused by accidents. In addition, the program focuses on the development and maintenance of systems that enable those with a disability to live independently and to generate their own incomes. In large measure, these activities are carried out through cooperative agreements and ongoing technical assistance to nine established State-based projects. The President's FY 1991 Budget requests $4.4 million for this activity. S. 2631, the Senate companion bill, would authorize $40 million in FY 1991 and "such sums as necessary" for each of FYs 1992-95 for activities aimed at preventing accidental injuries. The Senate bill also would authorize $45 million over three years for a disability prevention program. LEGISLATIVE REFERENCE DIVISION DRAFT 6/14/90 EWV OFFICE will PRESIDENT SERVIÇO UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 March 30, 1990 (House) STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.) H.R. 4073 Labor Management Relations Act Amendments (Clay (D) MO and 42 others) The Administration has no objection to enactment of H.R. 4073. ******** (Not to be Distributed Outside Executive Office of the President) This draft of a position was developed by LRD (Fairhall) in consultation with LVE (Martin/Walsh) and HTF (Peroff). The Departments of HUD (Sonia Fuentes, Office of the General Counsel), Labor (Dick Schmidt, Office of the Solicitor), and the CEA (Bill Wascher) concur. The Administration has not taken a position on H.R. 4073 to date. The House Education and Labor Committee report on H.R. 4073 is not available. According to the Congressional Record (March 28, 1990), the Committee ordered the bill reported as introduced without amendment. H.R. 4073 would amend section 302 (c) (7) of the Labor Management Relations Act (LMRA) (the Taft-Hartley Act) to allow employers and unions in multi-employer bargaining situations to set up trust funds to provide housing assistance to employees. Current law permits joint employer-employee trust funds for certain employee benefits, including education and child care. Background H.R. 4073 is identical to its Senate companion, S. 1949 (Kennedy (D) MA and Hatch (R) UT), which was passed by the Senate on November 21, 1989. (S. 1949 was introduced and passed on the same day so the Administration did not have an opportunity to take a position on the bill.) According to Senator Kennedy, the legislation would make housing trusts a "permissive" subject for collective bargaining under the LMRA. Neither party could be required to bargain over including housing trusts, and refusal to bargain about it would not give rise to an unfair labor practice charge. Education and child care trusts were added as permissive subjects for bargaining in 1969. The housing trusts would be subject to 2 the same requirements imposed by the LMRA for other such trusts: there would have to be 1) written agreements governing payments, representation in fund administration, and resolution of deadlocks; and 2) annual audits of the funds. According to Kennedy, the housing trust funds could be used as collateral for mortgage assistance, closing costs and bank fees, favorable interest rates, down payment assistance, or rental security deposits. Kennedy introduced the legislation in response to a contract negotiated between the Boston Hotels and Local 26 of the Hotel Employees and Restaurant Employees Union which would provide for housing assistance to employees. The contract also provided that if Congress did not amend the law before May 31, 1990, to allow for such a trust, the sums would be transferred into an existing employer-employee health and welfare fund. LEGISLATIVE REFERENCE DIVISION DRAFT 3/30/90