THE UNITED ST VTES ENVIRONMKN F \1, P'iorKt 1 ION AGENCY
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Statutes and Legislative History
Executive Orders
Regulations
Guidelines and Reports
V
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THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
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Statutes and Legislative History
Executive Orders
Regulations
Guidelines and Reports
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JANUARY 1973
WILLIAM D. RUCKELSHAUS
Administrator
U.S. Environmental Protection Agenc/
Region V. Library
230 South Dearborn Street
Chicago, Illinois 60604 ,J
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For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, B.C. 20402 - Price $22.20 per 6-vol. set. Sold in sets only
Stock Number 5500-0063
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FOREWORD
It has been said that America is like a gigantic boiler in that
once the fire is lighted, there are no limits to the power it can
generate. Environmentally, the fire has been lit.
With a mandate from the President and an aroused public con-
cern over the environment, we are experiencing a new American
Revolution, a revolution in our way of life. The era which began
with the industrial revolution is over and things will never be
quite the same again. We are moving slowly, perhaps even grudg-
ingly at times, but inexorably into an age when social, spiritual
and aesthetic values will be prized more than production and con-
sumption. We have reached a point where we must balance civili-
zation and nature through our technology.
The U.S. Environmental Protection Agency, formed by Reorg-
anization Plan No. 3 of 1970, was a major commitment to this new
ethic. It exists and acts in the public's name to ensure that due
regard is given to the environmental consequences of actions by
public and private institutions.
In a large measure, this is a regulatory role, one that encompas-
ses basic, applied, and effects research; setting and enforcing
standards; monitoring; and making delicate risk-benefit deci-
sions aimed at creating the kind of world the public desires.
The Agency was not created to harass industry or to act as a
shield behind which man could wreak havoc on nature. The great-
est disservice the Environmental Protection Agency could do to
American industry is to be a poor regulator. The environment
would suffer, public trust would diminish, and instead of free en-
terprise, environmental anarchy would result.
It was once sufficient that the regulatory process produce wise
and well-founded courses of action. The public, largely indifferent
to regulatory activities, accepted agency actions as being for the
"public convenience and necessity." Credibility gaps and cynicism
make it essential not only that today's decisions be wise and well-
founded but that the public know this to be true. Certitude, not
faith, is de rigueur.
In order to participate intelligently in regulatory proceedings,
the citizen should have access to the information available to the
iii
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agency. EPA's policy is to make the fullest possible disclosure of
information, without unjustifiable expense or delay, to any inter-
ested party. With this in mind, the EPA Compilation of Legal
Authority was produced not only for internal operations of EPA,
but as a service to the public, as we strive together to lead the
way, through the law, to preserving the earth as a place both
habitable by and hospitable to man.
WILLIAM D. RUCKELSHAUS
Administrator
U.S. Environmental Protection Agency
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PREFACE
Reorganization Plan No. 3 of 1970 transferred 15 governmental
units with their functions and legal authority to create the U.S.
Environmental Protection Agency. Since only the major laws
were cited in the Plan, the Administrator, William D. Ruckelshaus,
requested that a compilation of EPA legal authority be researched
and published.
The publication has the primary function of providing a work-
ing document for the Agency itself. Secondarily, it will serve as
a research tool for the public.
A permanent office in the Office of Legislation has been estab-
lished to keep the publication updated by supplements.
It is the hope of EPA that this Set will assist in the awesome
task of developing a better environment.
LANE WARD GENTRY, J.D.
Assistant Director for Field Operations
Office of Legislation
U.S. Environmental Protection Agency
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ACKNOWLEDGMENT
The idea of producing a compilation of the legal authority of
EPA was conceived and commissioned by William D. Ruckelshaus,
Administrator of EPA. The production of this compilation in-
volved the cooperation and effort of numerous sources, both within
and outside the Agency. The departmental libraries at Justice and
Interior were used extensively; therefore we express our appre-
ciation to Marvin P. Hogan, Librarian, Department of Justice;
Arley E. Long, Land & Natural Resources Division Librarian,
Department of Justice; Frederic E. Murray, Assistant Director,
Library Services, Department of the Interior.
For exceptional assistance and cooperation, my gratitude to:
Gary Baise, formerly Assistant to the Administrator, currently
Director, Office of Legislation, who first began with me on this
project; A. James Barnes, Assistant to the Administrator; K.
Kirke Harper, Jr., Special Assistant for Executive Communica-
tions ; John Dezzutti, Administrative Assistant, Office of Executive
Communications; Roland 0. Sorensen, Chief, Printing Manage-
ment Branch, and Jacqueline Gouge and Thomas Green, Printing
Management Staff; Ruth Simpkins, Janis Collier, Wm. Lee Rawls,
Peter J. McKenna, James G. Chandler, Jeffrey D. Light, Randy
Mott, Thomas H. Rawls, John D. Whittaker, John M. Himmelberg,
and Richard A. Yarmey, a beautiful staff who gave unlimited
effort; and to many others behind the scenes who rendered varied
assistance.
LANE WARD GENTRY, J.D.
Assistant Director for Field Operations
Office of Legislation
U.S. Environmental Protection Agency
VI
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INSTRUCTIONS
The goal of this text is to create a useful compilation of the
legal authority under which the U.S. Environmental Protection
Agency operates. These documents are for the general use of per-
sonnel of the EPA in assisting them in attaining the purposes set
out by the President in creating the Agency. This work is not
intended and should not be used for legal citations or any use
other than as reference of a general nature. The author disclaims
all responsibility for liabilities growing out of the use of these
materials contrary to their intended purpose. Moreover, it should
be noted that portions of the Congressional Record from the 92nd
Congress were extracted from the "unofficial" daily version and
are subject to subsequent modification.
EPA Legal Compilation consists of the Statutes with their legis-
lative history, Executive Orders, Regulations, Guidelines and Re-
ports. To facilitate the usefulness of this composite, the Legal
Compilation is divided into the eight following chapters:
A. General E. Pesticides
B. Air F. Radiation
C. Water G. Noise
D. Solid Waste H. International
GENERAL
The chapter labeled "General" and color coded red contains the
legal authority of the Agency that applies to more than one area
of pollution, such as the Reorganization Plan No. 3 of 1970, E.G.
11514, Protection and Enhancement of Environmental Quality,
Regulation on Certification of Facilities, Interim Guidelines by
CEQ, and Selected Reports. Acts that appear in General are found
in full text with their legislative history. When the same Act
appears under a particular area of pollution, a cross reference is
made back to General for the text.
SUBCHAPTERS
Statutes and Legislative History
For convenience, the Statutes are listed throughout the Compi-
lation by a one-point system, i.e., 1.1, 1.2, 1.3, etc., and Legislative
vii
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viii INSTRUCTIONS
History begins wherever a letter follows the one-point system.
Thusly, any l.la, Lib, 1.2a, etc., denotes the public laws compris-
ing the 1.1, 1.2 statute. Each public law is followed by its legisla-
tive history. The legislative history in each case consists of the
House Report, Senate Report, Conference Report (where applica-
ble), the Congressional Record beginning with the time the bill
was reported from committee.
Example:
1.4 Amortization of Pollution Control Facilities, as amended,
26U.S.C. §169 (1969).
1.4a Amortization of Pollution Control Facilities, Decem-
ber 30, 1969, P.L. 91-172, §704, 83 Stat. 667.
(1) House Committee on Ways and Means, H.R.
REP. No. 91-413 (Part I), 91st Cong., 1st Sess.
(1969).
(2) House Committee on Ways and Means, H.R.
REP. No. 91-413 (Part II), 91st Cong., 1st
Sess. (1969).
(3) Senate Committee on Finance, S. REP. No.
91-552, 91st Cong., 1st Sess. (1969).
(4) Committee of Conference, H.R. REP. No.
91-782, 91st Cong., 1st Sess. (1969).
(5) Congressional Record, Vol. 115 (1969) :
(a) Aug. 7: Debated and passed House, pp.
22746, 22774-22775;
(b) Nov. 24, Dec. 5, 8, 9: Debated and passed
Senate, pp. 35486, 38321-37322, 37631-
37633, 37884-37888;
(c) Dec. 22: Senate agrees to conference re-
port, p. 40718;*
(d) Dec. 22: House debates and agrees to con-
ference report, pp. 40820, 40900.
This example not only demonstrates the pattern followed for legis-
lative history, but indicates the procedure where only one section
of a P.L. appears. You will note that the Congressional Record
cited pages are only those pages dealing with the discussion
and/or action taken pertinent to the section of law applicable to
EPA. In the event there is no discussion of the pertinent section,
only action or passage, then the asterisk (*) is used to so indicate,
and no text is reprinted in the Compilation. In regard to the
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INSTRUCTIONS
IX
situation where only ons section of a public law is applicable, then
only the parts of the report dealing with same are printed in the
Compilation.
Secondary Statutes
Many statutes make reference to other laws and rather than
have this manual serve only for major statutes, these secondary
statutes have been included where practical. These secondary stat-
utes are indicated in the table of contents to each chapter by a
bracketed cite to the particular section of the major Act which
made the reference.
Citations
The United States Code, being the official citation, is used
throughout the Statute section of the compilation. In four Stat-
utes, a parallel table to the Statutes at Large is provided for your
convenience.
TABLE OF STATUTORY SOURCE
Statutes
Source
1.1 Reorganization Plan No. 3 of
1970, 35 Fed. Reg. 15263.
1.2 The National Environmental
Policy Act of 1969, 42 U.S.C.
§§4332(2)(c), 4344(5).
1.3 Environmental Quality Improve-
ment Act of 1970, 42 U.S.C.
§4371 et seq. (1970).
1.4 Amortization of Pollution Con-
trol Facilities, as amended, 26
U.S.C. §169(d). (1969).
1.5 Department of Transportation
Act, as amended, 49 U.S.C.
§1653(f) (1968).
EPA's originating act.
In §4332(2) (c) a mandate was made
to all Federal agencies as to environ-
mental impact statements. EPA func-
tioning as appropriate agency, and
§4344 cited in Reorganization Plan
No. 3 of 1970 as a direct transfer to
EPA.
CEQ's originating act.
Direct reference in sections cited to
Clean Air Act, Fed. Water Pollution
Control Act which were transferred
to EPA by Reorg. Plan No. 3 of 1970.
Also the certifying authority was
transferred to EPA through the Re-
org. Plan No. 3 of 1970.
Reorg. Plan No. 3 of 1970 transferred
Clean Air Act and the functions of the
Secty of Interior pertaining to same
to EPA and its Administrator. The
Clean Air Act at §1857f—10(b) ref-
erences 1.5 and requires consultation
from the Administrator.
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INSTRUCTIONS
Statutes
Source
1.6 Federal Aid Highway Act, as a-
mended, 23 U.S.C. §109(h), (i),
(j) (1970).
1.7 Airport and Airway Develop-
ment Act, 49 U.S.C. §§1712(f),
1716(c)(4), (e) (1970).
1.8 Disaster Relief Act of 1970, 42
U.S.C. §4401 et seg. (1970).
1.9 Interest on Certain Government
Obligations, as amended, 26
U.S.C. §103 (1969).
1.10 Uniform Relocation Assistance
and Real Property Acquisition
Polices Act of 1970, 42 U.S.C.
§4601 et seq. (1970).
1.11 Departmental Regulations, as
revised, 5 U.S.C. §301 (1966).
1.12 Public Health Service Act, as
amended, 42 U.S.C. §§203, 215,
242, 242b, c, d, f, i, j, 243, 244,
244a, 245, 246, 247, 264 (1970).
1.13 Davis-Bacon Act, as amended,
40 U.S. C. §276a-276a-5 (1964).
1.14 Public Contracts, Advertisements
for Proposals for Purchases and
Contracts for Supplies or Ser-
vices for Government Depart-
ments; Application to Govern-
ment Sales and Contracts to sell
and to Government Corporations,
as amended, 41 U.S.C. §5 (1958).
1.15 Per Diem, Travel and Transpor-
tation Expenses; Experts and
Consultants; Individuals Serving
Without Pay, as amended, 5
U.S.C. §5703 (1969).
Direct reference made to EPA in
sections cited.
Direct references made to appropriate
agency for air, water and noise pollu-
tion which is EPA under Reorg. Plan
No. 3 of 1970.
The Water Quality Administration
was transferred to EPA by Reorg-.
Plan No. 3 of 1970 and together with
E.G. 11490, §§703(3), 11102(1),
11103(2) EPA assumes responsibility.
§103(c)(4)(E) & (F) of the Act pro-
vides tax relief on industrial develop-
ment bonds for sewage or solid waste
disposal facilities and air or water
pollution control facilities.
Act requires Federal and federally
assisted projects and programs to deal
uniformly and equitably with persons
whose property was taken. EPA pro-
mulgated regulation at 40 C.F.R.
§§4.1—4.263.
Bases of EPA regulation 40 C.F.R.
§§3.735—101 —3.735—107.
Referred to in Clean Air Act., basis
for authority in Water, Pesticides,
and Radiation functions transferred
in Reorg. Plan No. 3 of 1970.
Referenced from Clean Air Act, Fed.
Water Pollution Control Act, Solid
Waste Disposal Act—all of which
were transferred to EPA in Reorg.
Plan No. 3 of 1970.
Referred to in Clean Air Act, Federal
Water Pollution Control Act, and
Public Health Service Act—all of
which transferred to EPA in Reorg1.
Plan No. 3 of 1970.
Referred to in Clean Air Act, Federal
Water Pollution Control Act—all of
which were transferred to EPA in
Reorg. Plan No. 3 of 1970.
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INSTRUCTIONS xi
Statutes Source
1.16 Disclosure of Confidential Infor- Referred to in Clean Air Act, and
mation Generally, as amended, FWPCA which were transferred to
18 U.S.C. §1905. EPA both being transferred by the
Reorg. Plan No. 3 of 1970.
1.17 Appropriation Bills Beginning with the Agricultural-En-
vironmental and Consumer Protection
Appropriation Act of 1971 each ap-
propriation bill for EPA will appear.
EXECUTIVE ORDERS
The Executive Orders are listed by a two-point system (2.1, 2.2,
etc.). Executive Orders found in General are ones applying to
more than one area of the pollution chapters.
REGULATIONS
The Regulations are noted by a three-point system (3.1, 3.2,
etc.). Included in the Regulations are those not only promulgated
by the Environmental Protection Agency, but those under which
the Agency has direct contact.
GUIDELINES AND REPORTS
This subchapter is noted by a four-point system (4.1, 4.2, etc.).
In this subchapter is found the statutorily required reports of
EPA, published guidelines of EPA, selected reports other than
EPA's and inter-departmental agreements of note.
UPDATING
Periodically, a supplement will be sent to the interagency distri-
bution and made available through the U.S. Government Printing
Office in order to provide an accurate working set of EPA Legal
Compilation.
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CONTENTS
A. GENERAL
Volume I
Page
1. Statutes and Legislative History.
1.1 Reorganization Plan No. 3 of 1970, 5 U.S.C. Reorg. Plan of
1970 No. 3, Appendix (1970) 3
l.la Message of the President Relative to Reorganization
Plan No. 3, July 9, 1970, Weekly Compilation of
Presidential Documents, Vol. 6, No. 28, p. 908 (July
13, 1970) 8
l.lb Message of the President Transmitting Reorganiza-
tion Plan No. 3, July 9, 1970, Weekly Compilation
of Presidential Documents, Vol. 6, No. 28, p. 917
(July 13, 1970) 16
l.lc Hearings on Reorganization Plan No. 3 of 1970
Before the Subcommittee on Executive Reorganiza-
tion and Government Research of the Senate Com-
mittee on Government Operations, 91st Cong., 2d
Sess. (1970) 16
l.ld Hearings on Reorganization Plan No. 3 of 1970
Before the Subcommittee on Government Operations
of the House Committee on Government Operations,
91st Cong., 2d Sess. (1970) 112
l.le House Committee on Government Operations, H.R.
REP. No. 91-1464, 91st Cong., 2d Sess. (1970) ___ 367
l.lf Congressional Record, Vol. 116 (1970) 378
(1) July 9: House discussion, pp. 23532-23533 378
(2) Sept. 28: House approving Reorganization Plan
No. 3 of 1970 to Establish Environmental Pro-
tection Agency as an independent entity of
Government, pp. 33871-33876; 33879-33884;
34015 380
1.2 National Environmental Policy Act of 1969, 42 U.S.C.
§§4332(2)(c), 4344(5) (1970) __ 407
1.2a National Environmental Policy Act of 1969, Jan-
uary 1, 1970, P.L. 91-190, §§102(2) (c), 204(5), 83
Stat. 853, 855 414
xiii
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xiv CONTENTS
Page
(1) Senate Committee on Interior and Insular Af-
fairs, S. REP. No. 91-296, 91st Cong., 1st Sess.
(1969) __. 420
(2) House Committee on Merchant Marine and
Fisheries, H.R. REP. No. 91-378 (Part 2), 91st
Cong., 1st Sess. (1969) _. . 458
(3) Committee of Conference, H.R. REP. No. 91-
765, 91st Cong., 1st Sess. (1969) 467
(4) Congressional Record, Vol. 115 (1969) 482
(a) July 10: Considered and passed Senate,
pp. 19008-19009, 19013 482
(b) Sept. 23: Amended and passed House, pp.
26569-26591 486
(c) Oct. 8: Senate disagrees to House amend-
ments, agreed to conference, pp. 29066-
29074, 29076-29089 538
(d) Dec. 20: Senate agreed to conference re-
port, pp. 40415-40417, 40421-40427 580
(e) Dec. 22: House agreed to conference report,
pp. 40923-40928 597
Volume II
1.3 Environmental Quality Improvement Act of 1970, 42 U.S.C.
§4371 et seq. (1970) 611
1.3a Environmental Quality Improvement Act of 1970,
April 3, 1970, P.L. 91-224, Title II, 84 Stat. 114 __ 614
(1) House Committee on Public Works, H.R. REP.
No. 91-127, 91st Cong., 1st Sess. (1969) 617
(2) Senate Committee on Public Works, S. REP.
No. 91-351, 91st Cong., 1st Sess. (1969) 617
(3) Committee of Conference, H.R. REP. No. 91-
940, 91st Cong, 2d Sess. (1970) 645
(4) Congressional Record 652
(a) Vol. 115 (1969), April 16: Passed p. 9259 652
(b) Vol. 115 (1969), Oct. 7: Amended and
passed Senate, pp. 28952-28954, 28956-
28957, 28962, 28967, 28969, 28972 652
(c) Vol. 116 (1970), March 24: Senate agreed
to conference report, pp. 9004-9005, 9009 661
(d) Vol. 116 (1970), March 25: House agreed
to conference report, pp. 9333-9334 662
1.4 Amortization of Pollution Control Facilities, as amended,
26 U.S.C. §169 (1969) 663
1.4a Amortization of Pollution Control Facilities, Decem-
ber 30, 1969, 91-172, §704, 83 Stat. 667 665
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CONTENTS xv
Page
(1) House Committee on Ways and Means, H.R.
REP. No. 91-413 (Part I), 91st Cong., 1st Sess.
(1969) 670
(2) House Committee on Ways and Means, H.R.
REP. No. 91-413 (Part II), 91st Cong., 1st
Sess. (1969) 675
(3) Senate Committee on Finance, S. REP. No.
91-552, 91st Cong., 1st Sess. (1969) 679
(4) Committee of Conference, H.R. REP. No. 91-
782, 91st Cong., 1st Sess. (1969) 684
(5) Congressional Record, Vol. 115 (1969) 690
(a) Aug. 7: Debated and passed House pp.
22746, 22774-22775 690
(b) Nov. 24, Dec. 5, 8, 9: Debated and passed
Senate, pp. 35486, 37321-37322, 37631-
37633, 37884-37888 691
(c) Dec. 22: Senate agrees to conference re-
port, p. 40718* 705
(d) Dec. 22: House debates and agrees to con-
ference report, pp. 40820, 40900* 705
1.5 Department of Transportation Act, as amended, 49 U.S.C.
§§1651, 1653(f), 1655(g), 1656 (1968) 706
1.5a Department of Transportation Act, October 15,
1966, P.L. 89-670, 332, 4(f), (g), 6, 7, 80 Stat. 931_ 733
(1) House Committee on Government Operations
H.R. REP. No. 1701, 89th Cong., 2d Sess. (1966) 736
(2) Senate Committee on Government Operations,
S. REP. No. 1659, 89th Cong., 2d Sess. (1966) 737
(3) Senate Committee on Government Operations,
S. REP. No. 1660, 89th Cong., 2d Sess. (1966) 745
(4) Committee of Conference, H.R. REP. No. 2236,
89th Cong., 2d Sess. (1966) 755
(5) Congressional Record, Vol. 112 (1966) 769
(a) Aug. 24: Debated, amended and passed
House, pp. 21236-21237; 21275 769
(b) Sept. 29: Amended and passed Senate, pp.
24374-24375, 24402-24403; 771
(c) Oct. 13: House agrees to conference report,
pp. 26651-26652; 773
(d) Oct. 13: Senate agrees to conference report,
pp. 26563, 26568. 774
1.5b Federal Highway Act of 1968, August 23, 1968, P.L.
90-495, §18(b), 82 Stat. 824. 776
(1) Senate Committee on Public Works, S. REP.
No. 1340, 90th Cong., 2d Sess. (1968). 777
(2) House Committee on Public Works, H.R. REP.
No. 1584, 90th Cong., 2d Sess. (1968). 778
(3) Committee of Conference, H.R. REP. No. 1799,
90th Cong., 2d Sess. (1968). 780
(4) Congressional Record, Vol. 114 (1968): 783
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xvi CONTENTS
Page
(a) July 1: Debated, amended and passed
Senate, pp. 19529, 19530, 19552; 783
(b) July 3: Amended and passed House, pp.
19937, 19947, 19950;* 786
(c) July 26: House agrees to conference report,
pp. 23712, 23713; 786
(d) July 29: Senate agrees to conference re-
port, pp. 24036, 24037, 24038. 786
1.6 Federal Aid Highway Act of 1970, as amended, 23 U.S.C.
§109(h), (i), (j) (1970). 788
1.6a Federal Aid Highway Act of 1970, December 31,
1970, P.L. 91-605, §136(b), 84 Stat. 1734. 791
(1) House Committee on Public Works, H.R. REP.
No. 91-1554, 91st Cong., 2d Sess. (1970). 792
(2) Senate Committee on Public Works, S. REP.
No. 91-1254, 91st Cong., 2d Sess. (1970). 793
(3) Committee of Conference, H.R. REP. No. 91-
1780, 91st Cong., 2d Sess. (1970). 798
(4) Congressional Record, Vol. 116 (1970): 800
(a) Nov. 25: Debated and passed House, pp.
38936-38937, 38961-38962, 38974-38976,
38997; 800
(b) Nov. 25: Proceedings vacated, laid on the
table, pp. 39007-39014; 812
(c) Dec. 7: Passed Senate, Senate insists on its
amendments and asks for conference, p.
40095; 813
(d) Dec. 8: Action of House rescinded, passed
House, House disagrees to Senate amend-
ments and agrees to conference, p. 40265; __ 813
(e) Dec. 17-18: House agrees to conference re-
port, pp. 42512-42518; 814
(f) Dec. 19: Senate agrees to conference report,
pp. 42717, 42723. 816
1.7 Airport and Airway Development Act, 49 U.S.C. §§1712(f),
1716(c)(4), (e) (1970). 818
1.7a Airport and Airway Development Act of 1970, P.L.
91-258, §§12(f), 16(c)(4), (e), 84 Stat. 221, 226. __ 821
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 91-601, 91st Cong.,
1st Sess. (1969). 824
(2) Senate Committee on Commerce, S. REP. No.
91-565, 91st Cong., 1st Sess. (1969). 831
(3) Committee of Conference, H.R. REP. No. 91-
1074, 91st Cong., 2d Sess. (1970). 834
(4) Congressional Record: 837
(a) Vol. 115 (1969), Nov. 6: Considered and
passed House, pp. 33293, 33307-33308,
33342; 837
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CONTENTS xvii
Page
(b) Vol. 116 (1970), Feb. 25-26: Considered
and passed Senate, amended, pp. 4842,
5069-5072,5082-5083; 842
(c) Vol. 116 (1970), May 12: Senate agreed to
conference report p. 15136; 852
(d) Vol. 116 (1970), May 13: House agreed to
conference report, pp. 15294, 15295, 15297._ 852
1.8 Disaster Assistance Act, 42 U.S.C. §4401 et seq. (1970).__ 854
1.8a The Administration of Disaster Assistance, Decem-
ber 31, 1970, P.L. 91-606, Title II, 84 Stat. 1746.— 874
(1) Senate Committee on Public Works, S. REP.
No. 91-1157, 91st Cong., 2d Sess. (1970). 891
(2) House Committee on Public Works, H.R. REP.
No. 91-1524, 91st Cong., 2d Sess. (1970). 925
(3) Committee of Conference, H.R. REP. No. 91-
1752, 91st Cong., 2d Sess. (1970): 951
(4) Congressional Record, Vol. 116 (1970) : 975
(a) Sept. 9: Debated, amended, and passed
Senate, pp. 31040-31042, 31044, 31048-
31051, 31058-31060, 31062-31063; 975
(b) Oct. 5: Debated, amended, and passed
House, pp. 34795-34798; 993
(c) Dec. 15, 17: House debated and agrees to
conference report, pp. 42212-42214; 1000
(d) Dec. 18: Senate agrees to conference re-
port, p. 42369.* 1005
(5) Statement by the President Upon Signing the
Bill into Law December 31, 1970, Weekly Com-
pilation of Presidential Documents, Vol. 7, No.
1, January 4, 1971 (p. 12). 1005
1.9 Interest on Certain Government Obligations, as amended,
26 U.S.C. §103(c)(4) (1971). 1006
1.9a Amendments to Interest on Certain Government Ob-
ligations, Int. Rev. Code, June 28, 1968, P.L. 90-364,
Title I, §107(a), 82 Stat. 266 1008
(1) House Committee on Ways and Means, H.R.
REP. No. 1104, 90th Cong., 2d Sess. (1968). __ 1009
(2) Senate Committee on Finance, S. REP. No. 1014,
90th Cong., 2d Sess. (1968). 1010
(3) Committee of Conference, H.R. REP. No. 1533,
90th Cong., 2d Sess. (1968). 1010
(4) Congressional Record, Vol. 114 (1968) :
(a) Feb. 29: Debated and passed House, p.
4704;* 1010
(b) March 26, 28, April 2: Debated in Senate
pp. 8159-8162; 1010
(c) June 20: House considers and passes con-
ference report, p. 18006;* 1017
(d) June 21: Senate agrees to conference re-
port, p. 18179 1017
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xviii CONTENTS
Page
1.9b Revenue Act of 1971, December 10, 1971, P.L. 92-
178, Title III, §315(a), 85 Stat. 529. 1017
(1) House Committee on Ways and Means, H.R.
REP. No. 92-533, 92d Cong., 1st Sess. (1971).* 1018
(2) Senate Committee on Finance, S. REP. No.
92-437, 92d Cong., 1st Sess. (1971).* 1018
(3) Committee of Conference, H.R. REP. No. 92-
708, 92d Cong., 1st Sess. (1971). 1018
(4) Congressional Record, Vol. 117 (1971): 1019
(a) Oct. 5, 6: Considered and passed House,
pp. H9155-H9178, H9229;* 1019
(b) Nov. 15, 22: Considered and passed Sen-
ate, amended, pp. S18564-S18579; 1019
(c) Dec. 9: Senate agreed to conference re-
port, pp. S21095-S21109;* 1056
(d) Dec. 9: House agreed to conference report,
pp. H12114-H12134.* 1056
1.10 Uniform Relocation Assistance and Real Property Ac-
quisition Policies for Federal and Federally Assisted Pro-
grams, 42 U.S.C. §4633 (1971). 1057
l.lOa Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, January 2, 1970,
P.L. 91-646, §213, 84 Stat. 1900. 1075
(1) Senate Committee on Government Operations,
S. REP. No. 91-488, 91st Cong., 1st Sess.
(1969) 1076
(2) House Committee on Public Works, H.R. REP.
No. 91-1656, 91st Cong., 2d Sess. (1970). 1084
(3) Congressional Record: 1089
(a) Vol. 115 (1969), Oct. 27: Passed Senate,
pp. 31533-31535; 1089
(b) Vol. 116 (1970), Dec. 7: amended and
passed House, pp. 40169-40172; 1095
(c) Vol. 116 (1970), Dec. 17: Senate agrees to
House amendment, with an amendment,
pp. 42137-42140; 1102
(d) Vol. 116 (1970), Dec. 18: House concurs
in Senate amendment, pp. 42506-42507. __ 1109
1.11 Departmental Regulations, as revised, 5 U.S.C. §301
(1966). 1112
l.lla Codification of 5 U.S.C. §301, September 6, 1966,
P.L. 89-554, 80 Stat. 379. 1112
(1) Senate Committee on the Judiciary, S. REP.
No. 1380, 89th Cong., 2d Sess. (1966). 1113
(2) Congressional Record, Vol. 112 (1966): 1117
(a) July 25: Amended and passed Senate, p.
17010;* 1117
(b) Aug. 11: House concurs in Senate amend-
ments, p. 19077.* 1117
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CONTENTS xix
Page
1.12 Public Health Service Act, as amended, 42 U.S.C. §§203,
215, 241, 242, 242b, c, d, f, i, j, 243, 244, 244a, 245, 246,
247,264 (1970). 1118
1.12a The Public Health Service Act, July 1, 1944, P.L.
78-410, Title II, §§202, 214, Title III, §§301, 304,
305, 306, 311, 312, 313, 314, 315, 361, 58 Stat.
683, 690, 693, 695, 703. 1151
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1364, 78th Cong.,
2d Sess. (1944). 1158
(2) Senate Committee on Education and Labor, S.
REP. No. 1027, 78th Cong., 2d Sess. (1944) 1170
(3) Congressional Record, Vol. 90 (1944): 1172
(a) May 22: Amended and passed House, pp.
4794-4797, 4811; 1172
(b) June 22: Debated, amended, and passed
Senate, pp. 6486-6487, 6498-6500; 1179
(c) June 23: House concurs in Senate amend-
ments, pp. 6663-6664.* 1186
1.12b National Mental Health Act, July 3, 1946, P.L.
79-487, §§6, 7, (a, b), 9, 60 Stat. 423, 424. 1186
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1445, 79th Cong.,
1st Sess. (1945). 1189
(2) Senate Committee on Education and Labor, S.
REP. No. 1353, 79th Cong., 2d Sess. (1946).__ 1191
(3) Committee of Conference, H.R. REP. No. 2350,
79th Cong., 2d Sess. (1946). 1196
(4) Congressional Record, Vol. 92 (1946) : 1198
(a) March 14, 15: Amended and passed House,
pp. 2283, 2284, 2285-2286, 2291, 2992,
2293, 2294, 2295; 1198
(b) June 15: Amended and passed Senate, p.
6995; 1204
(c) June 26: Senate agrees to conference re-
port, p. 7584; 1205
(d) June 28: House agrees to conference re-
port, p. 7926. 1206
1.12c National Heart Act, June 16, 1948, P.L. 80-655,
§§4(e, f), 5, 6, 62 Stat. 467. 1206
(1) Senate Committee on Labor and Public Wel-
fare, S. REP. No. 1298, 80th Cong., 2d Sess.
(1948). 1210
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 2144, 80th Cong.,
2d Sess. (1948). 1212
(3) Congressional Record, Vol. 94 (1948) : 1217
(a) May 24: Amended and passed Senate, pp.
6297, 6298; 1217
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xx CONTENTS
Page
(b) June 8: Amended and passed House, pp.
7405-7406; 1219
(c) June 9: Senate concurs in House amend-
ment, p. 7555.* 1222
1.12d National Dental Research Act, June 24, 1948, P.L.
80-755, §4(e)(f), 62. Stat. 601. 1222
(1) Senate Committee on Labor and Public Wel-
fare, S. REP. No. 436, 80th Cong-., 1st Sess.
(1947). 1223
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 2158, 80th Cong.,
2d Sess. (1948). 1224
(3) Congressional Record, Vol. 94 (1948): 1225
(a) June 8: Amended and passed House, p.
7417; 1225
(b) June 12: Amended and passed Senate, p.
7934;* 1226
(c) June 14: House concurs in Senate amend-
ments, p. 8175. 1226
1.12e Public Health Service Act Amendments, June 25,
1948, P.L. 80-781, §1, 62 Stat. 1017. 1227
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1927, 80th Cong., 2d
Sess. (1948). 1227
(2) Senate Committee on Labor and Public Works,
S. REP. No. 1578, 80th Cong., 2d Sess. (1948). 1230
(3) Congressional Record, Vol. 94 (1948): 1232
(a) May 18: Amended and passed House, p.
6008;* 1232
(b) June 12: Passed Senate p. 7933 1232
1.12f Career Compensation Act of 1949, October 12, 1949,
P.L. 81-351, Title V, §521 (e), 63 Stat. 835. 1232
Volume III
(1) House Committee on Armed Services, H.R.
REP. No. 779, 81st Cong., 1st Sess. (1949). __ 1233
(2) Senate Committee on Armed Services, S. REP.
No. 733, 81st Cong-., 1st Sess. (1949). 1234
(3) Congressional Record, Vol. 95 (1949) : 1235
(a) June 14: Debated in House, pp. 7656, 7676; 1235
(b) June 15: Passed House, p. 7775;* 1235
(c) Sept. 26: Amended and passed Senate, p.
13261;* 1235
(d) Sept. 27: House concurs in Senate amend-
ments, p. 13358.* 1236
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CONTENTS xxi
Page
1.12g 1953 Reorganization Plan No. 1, §§5, 8, 67 Stat.
631. 1236
(1) Message from the President Accompanying
Reorganization Plan No. 1, H.R. Doc. No. 102,
83rd Cong., 1st Sess. (1953). 1237
1.12K Amendment to Title 13 U.S. Code, August 31, 1954,
P.L. 83-740, §2, 68 Stat. 1025. 1239
(1) House Committee on the Judiciary, H.R. REP.
No. 1980, 83rd Cong., 2d Sess. (1954). 1240
(2) Senate Committee on the Judiciary, S. REP.
No. 2497, 83rd Cong., 2d Sess. (1954). 1242
(3) Congressional Record, Vol. 100 (1954): 1243
(a) July 6: Passed House, p. 9806;* 1243
(b) Aug. 19: Amended and passed Senate, p.
15123;* 1243
(c) Aug. 19: House concurs in Senate amend-
ments, p. 15269.* 1243
1.12i National Health Survey Act, July 3, 1956, P.L. 84-
652, §4, 70 Stat. 490. 1244
(1) Senate Committee on Labor and Public Wel-
fare, S. REP. No. 1718, 84th Cong., 2d Sess.
(1956). 1244
(2) House Committee on Interstate and For-
eign Commerce, H.R. REP. No. 2108, 84th
Cong., 2d Sess. (1956). 1249
(3) Congressional Record, Vol. 102 (1956): 1250
(a) March 29: Amended and passed Senate,
p. 5816;* 1250
(b) May 21: Objected to in House, p. 8562;*^ 1250
(c) June 18: Amended and passed House, p.
10521.* 1250
1.12J An Act of Implementing §25 (b) of the Organic
Act of Guam, August 1, 1956, P.L. 84-896, §18, 70
Stat. 910. 1251
(1) House Committee on Interior and Insular Af-
fairs, H.R. REP. No. 2259, 84th Cong., 2d Sess.
(1956). 1251
(2) Senate Committee on Interior and Insular Af-
fairs, S. REP. No. 2662, 84th Cong., 2d Sess.
(1956). 1259
(3) Congressional Record, Vol. 102 (1954) : 1260
(a) June 18: Passed House, p. 10510;* 1260
(b) July 23: Amended and passed Senate, p.
13909;* 1260
(c) July 25: House concurs in Senate, amend-
ments, p. 14450.* 1261
1.12k Amendments to §314 (c) of the Public Health Serv-
ice Act, July 22, 1958, P.L. 85-544, §1, 72 Stat. 400. 1261
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xxii CONTENTS
Page
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1593, 85th Cong.,
2d Sess. (1958). 1262
(2) Senate Committee on Labor and Public Wel-
fare, S. REP. No. 1797, 85th Cong., 2d Sess.
(1958). ___ 1270
(3) Congressional Record, Vol. 104 (1958) : 1280
(a) April 21: Debated in House, pp. 6836-
6838; 1280
(b) May 5: Passed House, pp. 8004-8011; 1284
(c) July 10: Passed Senate, p. 13329. 1300
1.121 Health Amendments of 1959, July 23, 1959, P.L.
86-105, §1, 73 Stat. 239. 1301
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 590, 86th Cong., 1st
Sess. (1959). 1301
(2) Senate Committee on Labor and Public Wel-
fare, S. REP. No. 400, 86th Cong., 1st Sess.
(1959). 1309
(3) Congressional Record, Vol. 105 (1959): 1311
(a) July 6: Passed House, pp. 12735-12740;__ 1311
(b) July 8: Passed Senate, p. 12979. 1316
1.12m International Health Research Act of 1960, July
12, 1960, P.L. 86-610, §3, 74 Stat. 364. 1315
(1) Senate Committee on Labor and Public Wel-
fare, S. REP. No. 243, 86th Cong., 1st Sess.
(1959). 1317
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1915, 86th Cong.,
2d Sess. (1960). 1321
(3) Congressional Record, Vol. 106 (1960) : 1338
(a) June 24: Committee discharged, amended
and passed House, p. 14293;* 1338
(b) June 30: Passed Senate, pp. 15132-15133. 1338
1.12n Hawaii Omnibus Act, July 12, 1960, P.L. 86-624,
§29(c), 74 Stat. 419. 1340
(1) House Committee on Interior and Insular Af-
fairs, H.R. REP. No. 1564, 86th Cong., 2d
Sess. (1960). 1340
(2) Senate Committee on Interior and Insular Af-
fairs, S. REP. No. 1681, 86th Cong., 2d Sess.
(1960). 1341
(3) Congressional Record, Vol. 106 (1960): 1341
(a) May 16: Passed House, pp. 10355, 10357;* 1341
(b) June 28: Amended and passed Senate, p.
14684.* 1341
1.12o Amendments to §301 (d) of the Public Health Serv-
ice Act, September 15, 1960, P.L. 86-798, 74 Stat.
1053. 1342
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CONTENTS xxiii
Page
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 2174, 86th Cong.,
2d Sess. (1960). 1342
(2) Congressional Record, Vol. 106 (1960) : 1351
(a) Aug. 30: Passed House, p. 18394; 1351
(b) Aug. 31: Senate Committee discharged,
passed Senate, p. 18593. 1352
1.12p 1960 Amendments to Title III of the Public Health
Service Act, September 8, I960, P.L. 86-720, §l(b),
2, 74 Stat. 820. 1352
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1780, 86th Cong.,
2d Sess. (1960). 1353
(2) Committee of Conference, H.R. REP. No.
2062, 86th Cong., 2d Sess. (1960). 1353
(3) Congressional Record, Vol. 106 (1960): 1353
(a) June 24: Amended and passed House, pp.
14294-14301;* 1353
(b) July 1: Amended and passed Senate, pp.
15383-15384;* 1353
(c) Aug. 26: Senate concurs in conference re-
port, pp. 17788-17789;* 1354
(d) Aug. 29: House concurs in conference re-
port, p. 18172.* 1354
1.12q Community Health Services and Facilities Act of
1961, October 5, 1961, P.L. 87-395, §2(a)-(d), 75
Stat. 824 1354
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 599, 87th Cong., 1st
Sess. (1961) 1355
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 845, 87th Cong., 1st Sess. (1961)., 1361
(3) Committee of Conference, H.R REP. No. 1209,
87th Cong., 1st Sess. (1961) 1370
(4) Congressional Record, Vol. 107 (1961): 1375
(a) July 25: Amended and passed House, pp.
13402,13414, 13415; 1375
(b) Sept. 1: Amended and passed Senate, p.
17947; 1377
(c) Sept. 18: Conference report agreed to in
Senate, p. 19913;* 1378
(d) Sept. 20: Conference report agreed to in
House, p. 20484.* 1378
1.12r Extension of Application of Certain Laws to Ameri-
can Samoa, September 25, 1962, P.L. 87-688, §4 (a)
(1), 76 Stat. 58Y. 1378
(1) House Committee on Interior and Insular
Affairs, H.R. REP. No. 1536, 87th Cong., 2d
Sess. (1962) 1379
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xxiv CONTENTS
Page
(2) Senate Committee on Interior and Insular Af-
fairs, S. REP. No. 1478, 87th Cong., 2d Sess.
(1962) 1382
(3) Committee of Conference, H.R. REP. No. 2264,
87th Cong., 2d Sess. (1962). 1384
(4) Congressional Record, Vol. 108 (1962): 1385
(a) April 2: Amended and passed House, p.
5576; 1385
(b) May 17: Amended and passed Senate, pp.
8698, 8699; 1387
(c) Aug. 28: House agrees to conference report,
pp. 17881-17882; 1387
(d) Aug. 30: Senate agrees to conference re-
port, p. 18253 1388
1.12s Amendments to Title IV of the Public Health Service
Act, October 17, 1962, P.L. 87-838, §2, 76 Stat. 1073. 1388
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1969, 87th Cong.,
2d Sess. (1962). 1389
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 2174, 87th Cong., 2d Sess. (1962). 1390
(3) Congressional Record, Vol. 108 (1962): 1392
(a) Aug. 27: Passed House, p. 17690; 1392
(b) Sept. 28: Amended and passed Senate, p.
21247;* "_ 1393
(c) Oct. 3: House concurs in Senate amend-
ment, p. 21833.* 1393
1.12t Graduate Public Health Training Amendments of
1964, August 27, 1964, P.L. 88-497, §2, 78 Stat. 613.. 1393
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1553, 88th Cong., 2d
Sess. (1964). 1394
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 1379, 88th Cong., 2d Sess. (1964)- 1403
(3) Congressional Record, Vol. 110 (1964): 1411
(a) July 21: Passed House, pp. 16445, 16447; 1411
(b) Aug. 12: Passed Senate, pp. 19144-19145.* 1412
1.12u Community Health Services Extension Amendments,
August 5, 1965, P.L. 89-109, §4, 79 Stat. 436. 1412
(1) Senate Committee on Labor and Public Welfare,
S. REP. No. 117, 89th Cong., 1st Sess. (1965). 1413
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 249, 89th Cong., 1st
Sess. (1965). 1420
(3) Committee of Conference, H.R. REP. No. 676,
89th Cong., 1st Sess. (1965). 1426
(4) Congressional Record, Vol. Ill (1965): 1427
(a) March 11: Amended and passed Senate, pp.
4843, 4844; 1427
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CONTENTS xxv
Page
(b) May 3: House Committee discharged,
amended and passed House, p. 9141; 1428
(c) July 26: Senate agrees to conference re-
port, p. 18216; 1428
(d) July 27: House agrees to conference report,
p. 18425.* 1429
1.12v Amendments to Public Health Service Act, August
9, 1965, P.L. 89-115, §3, 79 Stat. 448 1429
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 247, 89th Cong., 1st
Sess. (1965) 1430
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 367, 89th Cong., 1st Sess. (1965) __ 1438
(3) Committee of Conference, H.R. REP. No. 677,
89th Cong., 1st Sess. (1965). 1445
(4) Congressional Record, Vol. Ill (1965): 1446
(a) May 10: Debated, amended and passed
House, pp. 9958, 9960-9962; 1446
(b) June 28: Debated, amended and passed
Senate, pp. 14952, 14953, 14954; 1458
(c) July 26: Conference report agreed to in
Senate, p. 18215; 1460
(d) July 27: Conference report agreed to in
House p. 18428. 1460
1.12w 1966 Reorganization Plan No. 3, §§1, 3, 80 Stat.
1610. 1461
(1) Message from the President Transmitting Re-
organization Plan No. 3, 1966, H. Doc. No. 428,
89th Cong., 2d Sess. (1966). 1462
1.12x Comprehensive Health Planning and Public Health
Services Amendments of 1966, November 3, 1966,
P.L. 89-749, §§3, 5, 80 Stat. 1181. 1466
(1) Senate Committee on Labor and Public Welfare,
S. REP. No. 1665, 89th Cong., 2d Sess. (1966). 1479
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 2271, 89th Cong.,
2d Sess. (1966). 1483
(3) Congressional Record, Vol. 112 (1966) : 1490
(a) Oct. 3: Amended and passed Senate, pp.
24764-24766, 24768; 1490
(b) Oct. 17: Amended and passed House, pp.
27081, 27085-27086, 27088-27092; 1496
(c) Oct. 18: Senate concurs in House amend-
ments pp. 27381-27385. 1509
1.12y Partnership for Health Amendments of 1967, De-
cember 5, 1967, P.L. 90-174, §§2(a)-(f), 3(b) (2), 4,
8(a), (b), 9, 12(d), 81 Stat. 533. 1518
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 538, 90th Cong., 1st
Sess. (1967). 1522
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xxvi CONTENTS
Page
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 724, 90th Cong., 1st Sess. (1967)- 1536
(3) Committee of Conference, H.R. REP. No. 974,
90th Cong., 1st Sess. (1967). 1546
(4) Congressional Record, Vol. 113 (1967): 1550
(a) Sept. 20: Debated, amended, and passed
House, pp. 26120-26132;* 1550
(b) Nov. 6: Debated, amended and passed,
Senate, pp. 31236-31238; 1550
(c) Nov. 21: House agrees to conference report,
p. 33338;* 1553
(d) Nov. 21: Senate agrees to conference re-
port, p. 33436.* 1553
1.12z Health Manpower Act of 1968, August 16, 1968,
P.L. 90-490, Title III, §302(b), 82 Stat. 789. 1553
(1) Senate Committee on Labor and Public Welfare,
S. REP. No. 1307, 90th Cong., 2d Sess. (1968). 1554
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 1634, 90th Cong., 2d
Sess. (1968). 1558
(3) Congressional Record, Vol. 114 (1968) : 1561
(a) June 24: Amended and passed Senate, p.
18422;* 1561
(b) Aug. 1: Amended and passed House, p.
24801;* •_ 1561
1.12aa Public Health Training Grants Act, March 12, 1970,
P.L. 91-208, §3, 84 Stat. 52. 1562
(1) Senate Committee on Labor and Public Welfare,
S. REP. No. 91-586, 91st Cong., 1st Sess.
(1969) - 1563
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 91-712, 91st Cong.,
1st Sess. (1969) 1570
(3) Committee of Conference, H.R. REP. No. 91-
855, 91st Cong., 2d Sess. (1970). 1570
(4) Congressional Record: 1572
(a) Vol. 115 (1969), Dec. 11: Amended and
passed Senate, pp. 37457, 38460; 1572
(b) Vol. 115 (1969), Dec. 16: Amended and
passed House, pp. 3918-3942;* 1572
(c) Vol. 116 (1970), Feb. 26: Senate agrees to
conference report, p. 5084; 1573
(d) Vol. 116 (1970), Feb. 26: House agrees to
conference report, pp. 5094-5095. 1574
1.12ab Medical Facilities Construction and Modernization
Amendments of 1970, June 30, 1970, P.L. 91-296,
Title I, §lll(b), Title IV, §401 (b) (A) (1), (C),
(D), 84 Stat. 340, 352. 1576
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 91-262, 91st Cong.,
1st Sess. (1969) 1577
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CONTENTS xxvii
Page
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 91-657, 91st Cong., 2d Sess. (1970). 1579
(3) Committee of Conference, H.R. REP. No. 91-
1167, 91st Cong., 2d Sess. (1970). 1582
(4) Congressional Record: 1583
(a) Vol. 115 (1969), June 4: Amended and
passed House, pp. 14654, 14659, 14664;* __ 1583
(b) Vol. 116 (1970), April 7: Amended and
passed Senate, pp. 10542, 10546;* 1583
(c) Vol. 116 (1970), June 8: Senate agreed to
conference report, pp. 18757, 18758, 18761;* 1584
(d) Vol. 116 (1970), June 10: House agreed to
conference report, p. 19199.* 1584
1.12ac Public Health Service Drug Abuse Research, October
27, 1970, P.L. 91-513, Title I, §3(b), 84 Stat. 1241.^ 1584
(1) Senate Committee on the Judiciary, S. REP.
No. 91-613, 91st Cong., 1st Sess. (1969). 1585
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 91-1444, 91st Cong.,
2d Sess. (1970). - 1585
(3) Committee of Conference, H.R. REP. No. 91-
1603, 91st Cong., 2d Sess. (1970). 1587
(4) Congressional Record, Vol. 116 (1970): 1588
(a) Jan. 28: Amended and passed Senate, p.
1647;* 1588
(b) Sept. 24: Amended and passed House, p.
33667;* 1588
(c) Oct. 14: House agreed to conference report,
pp. 36585, 36651;* 1588
(d) Oct. 14: Senate agreed to conference report,
p. 36885.* 1588
1.12ad Heart Disease, Cancer, Stroke and Kidney Disease
Amendments of 1970, October 30, 1970, P.L. 91-515,
Title II, §§201-203, 210, 220, 230, 240, 250, 260, (a),
(b), (c)(l), 270, 280, 282, 292, Title VI, §601(b)
(2), 84 Stat. 1301, 1303-1308, 1311. 1589
(1) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 91-1297, 91st Cong.,
2d Sess. (1970). 1599
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 91-1090, 91st Cong., 2d Sess.
(1970) 1600
(3) Committee of Conference, H.R. REP. No. 91-
1590, 91st Cong., 2d Sess. (1970). 1638
(4) Congressional Record, Vol. 116 (1970): 1647
(a) Aug. 12: Amended and passed House, p.
28532; 1647
(b) Sept. 9: Amended and passed Senate, p.
31013; 1647
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xxviii CONTENTS
Page
(c) Oct. 13: House agreed to conference report,
pp. 36589-36591; 1648
(d) Oct. 14: Senate agreed to conference report,
pp. 36888-36892. 1651
1.12ae Comprehensive Alcohol Abuse and Alcoholism Pre-
vention, Treatment, and Rehabilitation Act of 1970,
December 31, 1970, P.L. 91-616, Title III, §331, 84
Stat. 1853. __. 1651
(1) Senate Committee on Labor and Public Welfare,
S. REP. No. 91-1069, 91st Cong., 2d Sess.
(1970). 1651
(2) House Committee on Interstate and Foreign
Commerce, H.R. REP. No. 91-1663, 91st Cong.,
2d Sess. (1970). 1653
(3) Congressional Record, Vol. 116 (1970) : 1654
(a) Aug. 10: Passed Senate, pp. 27857-27871;* 1654
(b) Dec. 18: Amended and passed House, pp.
42531, 42536;* 1654
(c) Dec. 19: Senate concurs in House amend-
ments, p. 42751.* 1654
1.13 The Davis-Bacon Act, as amended, 40 U.S.C. §§276a—
276a-5 (1964). 1655
[Referred to in 42 U.S.C. §1857j-3, 33 U.S.C. §1158 (g),
42 U.S.C. §3256]
1.13a The Davis-Bacon Act, March 3, 1931, P.L. 71-798,
46 Stat. 1494. 1659
(1) Senate Committee on Manufacturers, S. REP.
No. 1445, 71st Cong., 83d Sess. (1931). 1660
(2) House Committee on Labor, H.R. REP. No.
2453, 71st Cong., 83d Sess. (1931). 1662
(3) Congressional Record, Vol. 74 (1930-1931) :__ 1664
(a) Feb. 4: Passed Senate, pp. 3918-3919; 1664
(b) Feb. 28: Debated and passed House, pp.
6504-6521. 1667
1.13b Amendment to the Act of March 3, 1931, August 30,
1935, P.L. 74-403, 49 Stat. 1011. -- 1705
(1) Senate Committee on Education and Labor, S.
REP. No 1155, 74th Cong., 1st Sess. (1935). __ 1708
(2) House Committee on Labor, H.R. REP. No.
1756, 74th Cong., 1st Sess. (1935). 1713
(3) Congressional Record, Vol. 79 (1935): 1720
(a) July 30: Amended and passed Senate, pp.
12072-12074; 1720
(b) Aug. 23: Debated and passed House, pp.
14384-14385. 1723
1.13c An Act to Require the Payment of Prevailing Rates
of Wages on Federal Public Works in Alaska and
Hawaii, June 15, 1940, P.L. 76-633, §1, 54 Stat. 399. 1726
(1) Senate Committee on Education and Labor, S.
REP. No. 1550, 76th Cong., 3d Sess. (1940). __ 1727
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CONTENTS xxix
Page
(2) House Committee on Labor, H.R. REP. No.
2264, 76th Cong., 3d Sess. (1940). 1728
(3) Congressional Record, Vol. 86 (1940-1941): _ 1728
(a) May 28: Passed Senate, p. 6997; 1731
(b) June 3: Passed House, p. 7401. 1732
1.13d Hawaii Omnibus Act, July 12, 1960, P.L. 86-624,
§26, 74 Stat. 418. 1733
(1) House Committee on Interior and Insular Af-
fairs, H.R. REP. No. 1564, 86th Cong., 2d Sess.
(1960). 1734
(2) Senate Committee on Interior and Insular Af-
fairs, S. REP. No. 1681, 86th Cong., 2d Sess.
(1960) 1735
(3) Congressional Record, Vol. 106 (1960): 1736
(a) May 16: Passed House, p. 10353;* 1736
(b) June 28: Amended and passed Senate, p.
14683;* 1736
(c) June 29: House concurs in Senate amend-
ment, p. 15009.* 1736
1.13e Amendments to Davis-Bacon Act, July 2, 1964, P.L.
88-349, §1, 78 Stat. 238. 1736
(1) House Committee on Education and Labor, H.R.
REP. No. 308, 88th Cong., 1st Sess. (1963) 1738
(2) Senate Committee on Labor and Public Welfare,
S. REP. No. 963, 88th Cong., 2d Sess. (1964).__ 1774
(3) Congressional Record, Vol. 110 (1964): 1788
(a) Jan. 28; Debated and passed House, pp.
1203-1233; 1788
(b) June 23: Passed Senate, pp. 14768-14770. 1858
1.13f Reorganization Plan No. 14 of 1950, 64 Stat. 1267,
5 U.S.C. §1332-15. __ 1863
1.13g Suspension of Provisions of Davis-Bacon Act of
March 3, 1931, Proclamation No. 4031, February 25,
1971, 36 Fed. Reg. 3457. 1864
1.13h Revocation of Proclamation of Suspension of Provi-
visions of Davis-Bacon Act, Proclamation No. 4040,
April 3, 1971, 36 Fed. Reg. 6335. 1866
Volume IV
1.14 Public Contracts, Advertisements for Proposals for Pur-
chases and Contracts for Supplies or Services for Govern-
ment Departments; Application to Government Sales and
Contracts to Sell and to Government Corporations, as
amended, 41 U.S.C. §5 (1958). 1869
[Referred to in 42 U.S.C. §1857b-l(a) (2) (D), 33 U.S.C.
§1155(g) (3) (A), 42 U.S.C. §242c(e)]
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xxx CONTENTS
Page
1.14a To Authorize Certain Administrative Expenses in
the Government Service, August 2, 1946, P.L. 79-600,
§9(a), (c), 60 Stat. 809. 1870
(1) House Committee on Expenditures in the Exec-
utive Departments, H.R. REP. No. 2186, 79th
Cong., 2d Sess. (1946). 1871
(2) Senate Committee on Expenditures in the Ex-
ecutive Departments, S. REP. No. 1636, 79th
Cong., 2d Sess. (1946). 1875
(3) Congressional Record, Vol. 92 (1946) : 1878
(a) June 3: Amended and passed House, pp.
6165-6166;* 1878
(b) July 17: Amended and passed House, pp.
9189-9190; 1878
(c) July 26: House concurs in Senate amend-
ments, pp. 10185-10186. 1879
1.14b To Amend the Federal Property and Administrative
Services Act of 1949, September 5, 1950, P.L. 81-744,
§§ 6(a), (b), 8(c), 64 Stat. 583, 591. 1880
(1) Senate Committee on Expenditures in the Ex-
ecutive Departments S. REP. No. 2140, 81st
Cong., 2d Sess. (1950). 1881
(2) House Committee on Expenditures in the Execu-
tive Departments, H.R. REP. No. 2747, 81st
Cong., 2d Sess. (1950). 1883
(3) Committee of Conference, H.R. REP. No. 3001,
81st Cong., 2d Sess. (1950). 1884
(4) Congressional Record, Vol. 96 (1950-1951): __ 1887
(a) July 26: Passed Senate, pp. 11092, 11094,
11096;* 1887
(b) Aug. 7: Amended and passed House, pp.
11919, 11921, 11922, 11927;* 1887
(c) Aug. 31: Senate agrees to conference re-
port, p. 13940;* 1887
(d) Aug. 31: House agrees to conference re-
port, p. 13993.* 1887
1.14c Small Business Opportunities Act, August 28, 1958,
85-800, §7, 72 Stat. 967 1888
(1) Senate Committee on Government Operations,
S. REP. No. 2201, 85th Cong., 2d Sess. (1958).- 1888
(2) Congressional Record, Vol. 104 (1958): 1891
(a) Aug. 14: Amended and passed Senate, p.
17539;* 1891
(b) Aug. 15: Committee discharged and passed
House, pp. 17908-17909.* 1891
1.15 Per Diem, Travel and Transportation Expenses; Experts
and Consultants; Individuals Serving Without Pay, as
amended, 5 U.S.C. §5703 (1969) 1892
[Referred to in 42 U.S.C. §§1857d(i), 1857e(e), 1857f-6e
(b)(2), 33 U.S.C. §§1159(a)(2)(B), 1160(c) (4),(i), 15
U.S.C. §1475(b), 42 U.S.C. §242f (b) (5), (6)]
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CONTENTS xxxi
Page
1.15a Administrative Expenses Act, August 2, 1946, P.L.
79-600, §5, 60 Stat. 808. 1893
(1) House Committee on Expenditures in Executive
Departments, H.R. REP. No. 2186, 79th Cong.,
2d Sess. (1946). 1894
(2) Senate Committee on Expenditures in Executive
Departments, S. REP. No. 1636, 79th Cong., 2d
Sess. (1946) 1895
(3) Congressional Record, Vol. 92 (1946) : 1895
(a) June 3: Amended and passed House, p.
6164;* 1895
(b) July 17: Amended and passed Senate, pp.
9189-9190; 1895
(c) July 26: House concurs in Senate amend-
ments, pp. 10185-10186.* 1896
1.15b Amendments to the 1946 Travel Expense Act, July
28, 1955, P.L. 84-189, §2, 69 Stat. 394. 1896
(1) Senate Committee on Government Operations,
S. REP. No. 353, 84th Cong., 1st Sess. (1955).._ 1897
(2) House Committee on Government Operations,
H.R. REP. No. 604, 84th Cong., 1st Sess.
(1955). 1903
(3) Committee of Conference, H.R. REP. No. 1088,
84th Cong., 1st Sess. (1955): 1907
(4) Congressional Record, Vol. 101 (1955): 1909
(a) June 20: Amended and passed House, pp.
8752, 8755;* 1909
(b) June 22: Amended and passed Senate, p.
8928;* 1909
(c) July 12: House agrees to conference report,
p. 10300;* 1909
(d) July 13: Senate agrees to conference re-
port, p. 10387.* 1909
1.15c Enactment of Title 5, United States Code, "Govern-
ment Organization and Employees," September 6,
1966, P.L. 89-554, §5703, 80 Stat. 499. 1909
(1) House Committee on the Judiciary, H.R. REP.
No. 901, 89th Cong., 1st Sess. (1965). 1911
(2) Senate Committee on the Judiciary, S. REP.
No. 1380, 89th Cong., 2d Sess, (1966). 1916
(3) Congressional Record: 1917
(a) Vol. Ill (1965), Sept. 7: Passed House, p.
25954;* 1917
(b) Vol. 112 (1966), July 25: Amended and
passed Senate, pp. 17006, 17010-17011;* _ 1917
(c) Vol. 112 (1966), Aug. 11: House concurs
in Senate amendments, p. 19077.* 1917
1.15d Increase Maximum Rates Per Diem Allowance for
Government Employees, November 10, 1969, P.L.
91-114, §2, 83 Stat. 190. 1918
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xxxii CONTENTS
Page
(1) House Committee on Government Operations,
H.R. REP. No. 91-111, 91st Cong., 1st Sess.
(1969) ______________________________________ 1918
(2) Senate Committee on Government Operations,
S. REP. No. 91-450, 91st Cong., 1st Sess.
(1969) _____________________________________ 1930
(3) Congressional Record, Vol. 115 (1969) : ______ 1941
(a) March 26: Considered and passed House,
pp. 7748-7752; _________________________ 1941
(b) Oct. 8: Amended and passed Senate, p.
29042; ________________________________ 1951
(c) Oct. 30: House concurs in Senate amend-
ments, pp. 32423-32425. _________________ 1952
1.16 Disclosure of Confidential Information Generally, as
amended, 18 U.S.C. §1905 (1948) ----------------------- 1958
[Referred to in 42 U.S.C. §§1857c-9(c), 1857d(j)(l),
1857f-6(b), 1857h-5(a)(l), 33 U.S.C. §§1160(f) (2), (k)
1.16a Disclosure of Information, June 25, 1948, P.L. 80-
772, §1905, 62 Stat. 791. ________________________ 1958
(1) House Committee on the Judiciary, H.R. REP.
No. 304, 80th Cong., 1st Sess. (1947). ________ 1959
(2) Senate Committee on the Judiciary, S. REP.
No. 1620, 80th Cong., 2d Sess. (1948). ________ 1960
(3) Congressional Record: ______________________ 1960
(a) Vol. 93 (1947), May 12: Amended and
passed House, p. 5049;* ________________ 1960
(b) Vol. 94 (1948), June 18: Amended and
passed Senate, pp. 8721-8722; __________ 1961
(c) Vol. 94 (1948), June 18: House concurs in
Senate amendments, p. 8865. _____________ 1961
1.17 Appropriation Bills
1.17a Agricultural-Environmental and Consumer Protec-
tion Appropriation Act of 1971, Title III, 85 Stat.
183. ___________________________________________ 1962
(1) House Committee on Appropriations, H.R. REP.
No. 92-289, 92d Cong., 1st Sess. (1971). ______ 1963
(2) House Committee on Appropriations, H.R. REP.
No. 92-253, 92d Cong., 1st Sess. (1971). ______ 1981
(3) Committee of Conference, H.R. REP. No. 92-
376, 92d Cong., 1st Sess. (1971). ____________ 1991
(4) Congressional Record, Vol. 117 (1971) : ______ 1994
(a) June 23: Amended and passed House, pp.
H5739-H5742, H5746-H5748, H5765, H-
5767, H5778-H5779, H5810-H5811; _______ 1964
(b) July 15: Amended and passed Senate, pp.
S11161, S11162, S11163, S11164, S11165,
S11207, S11208, S11226-S11228; _________ 2005
(c) July 27: House agrees to conference report,
pp. H7170, H7171, H7172, H7173; ________ 2015
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CONTENTS xxxiii
Page
(d) July 28: Senate agrees to conference report,
pp. S12334-S12337.* 2016
1.17b Agricultural Environmental and Consumer Protec-
tion Programs Appropriation, August 22, 1972, P.L.
92-399, Title III, 86 Stat. 604 2017
(1) House Committee on Appropriations, H.R. REP.
No. 92-1175, 92d Cong-., 2d Sess. (1972). 2019
(2) Senate Committee on Appropriations, S. Rep.
No. 92-983, 92d Cong., 2d Sess. (1972). 2058
(3) Committee of Conference, H.R. REP. No. 92-
1283, 92d Cong., 2d Sess. (1972). 2067
(4) Congressional Record, Vol. 118 (1972): 2074
(a) June 29: Considered and passed House, pp.
H6286-H6288, H6290, H6291, H6292, H-
6336; _ 2074
(b) July 27: Considered and passed Senate,
amended, pp. S12051-S12056, S12139-S-
12141; 2081
(c) Aug. 9: House and Senate agreed to confer-
ence report, pp. H7387-H7389, H3795,
H3796-H3797, S13161-S13162. 2093
2. Executive Orders
2.1 E.G. 11472, Establishing the Environmental Quality Coun-
cil and the Citizens Advisory Committee on Environmental
Quality, February 29, 1969, 34 Fed. Reg. 8693 (1969). ___ 2107
2.2 E.O. 11490, Emergency Preparedness Functions of Federal
Departments and Agencies, October 30, 1969, as amended,
35 Fed. Reg. 5659 (1970). 2111
2.3 E.O. 11507, Prevention, Control, and Abatement of Air and
Water Pollution at Federal Facilities, February 4, 1970, 35
Fed Reg. 2573 (1970). 2163
2.4 E.O. 11514, Protection and Enhancement of Environmental
Quality, March 5, 1970, 35 Fed. Reg. 4247 (1970). 2169
2.5 E.O. 11575, Administration of the Disaster Relief Act of
1970, as amended by E.O. 11662, March 29, 1972, 37 Fed.
Reg. 6563 (1972) 2173
2.6 E.O. 11587, Placing Certain Positions in Levels IV and V
of the Federal Executive Salary Schedule, March 15, 1971,
36 Fed. Reg. 475 (1971). 2175
2.7 E.O. 11628, Establishing a Seal for the Environmental Pro-
tection Agency, October 18, 1971, 36 Fed. Reg. 20285
(1971) 2176
2.8 E.O. 11222, Standards of Ethical Conduct for Government
Officers and Employees, May 8, 1965, 30 Fed. Reg. 6469
(1965) 2177
2.9 E.O. 11667, Establishing the President's Advisory Commit-
tee on the Environmental Merit Awards Program, April
20, 1972, 37 Fed. Reg. 7763 (1972). 2185
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xxxiv CONTENTS
Page
3. Regulations.
3.1 Reorganization and Republication, Environmental Protec-
tion Agency, 36 Fed. Reg. 22369 (1971). 2187
3.2 Statement of Organization and General Information, En-
vironmental Protection Agency, 40 C.F.R. §§1.1-1.43
(1972)
3.3 Public Information, Environmental Protection Agency, 40
C.F.R. §§2.100-2.111 (1972).
3.4 Employee Responsibilities and Conduct, Environmental
Protection Agency, 40 C.F.R. §§3.735-101—3.735-107
(1971)
3.5 Interim Regulations and Procedures for Implementing the
Uniform Relocation Assistance and Real Property Acqui-
sition Policies Act of 1970, Environmental Protection
Agency, 40 C.F.R. §§4.1-4.263 (1971).
3.6 Tuition Fees for Direct Training, Environmental Protec-
tion Agency, 40 C.F.R. §§5.1-5.7 (1972).
3,7 Certification of Facilities, Environmental Protection
Agency, 40 C.F.R. §§20.1-20.10 (1971).
3.8 General Grants Regulations and Procedures, Environ-
mental Protection Agency, 40 C.F.R. §§30.100-30.1001-3
(1972)
3.9 State and Local Assistance, Environmental Protection
Agency, 40 C.F.R. §§35.400-35.420 (1972).
3.10 Security Classification Regulation, Environmental Protec-
tion Agency, 41 C.F.R. §§11.1-11.6 (1972).
3.11 General, Environmental Protection Agency, 41 C.F.R.
§§15-1.000—15-1.5301 (1972).
3.12 Procurement by Formal Advertising, Environmental Pro-
tection Agency, 41 C.F.R. §§15-2.406-3-15—2.407-8
(1972)
3.13 Procurement by Negotiations, Environmental Protection
Agency, 41 C.F.R. §§15-3.51, 15-3.103, 15-3.405,
15-405-3, 15-3.600—15-3.606, 15-3.805, 15-3.808 (1972).-
3.14 Special Types and Methods of Procurement, Environmental
Protection Agency, 41 C.F.R. §§15-4.5300—15-4.5303
(1972).
3.15 Procurement Forms, Environmental Protection Agency,
41 C.F.R. §15-16.553-1 (1972).
3.16 Transportation, Environmental Protection Agency, 41
C.F.R. §§15-19.302—15-19.305 (1972).
3.17 Amortization of Pollution Control Facilities, Internal Rev-
enue Service, 26 C.F.R. §1.169 (1972).
3.18 Temporary Income Tax Regulations Under the Tax Reform
Act of 1969, Internal Revenue Service, 26 C.F.R. §§1.179-1,
1.642(f), 1.642(f)-l (1971).
3.19 Introduction, Environmental Protection Agency, 41 C.F.R.
§§115-1.100—115-1.110 (1971)
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CONTENTS xxxv
Page
4. Guidelines and Reports
4.1 The President's Environmental Program 2193
4.la The President's 1971 Environmental Program com-
piled by the Council on Environmental Quality,
March 1971, pp. 1-205 2193
4.1h The President's 1972 Environmental Program, com-
piled by the Council on Environmental Quality,
March 1972, pp. 1-75, 223. 2353
Volume V
4.2 Council on Environmental Quality, Annual Reports, as re-
quired by National Environmental Policy Act of 1969, 42
U.S.C. 34341. 2419
4.2a The First Annual Report of the Council on Environ-
mental Quality, August 1970, pp. 1-241. 2419
4.2b The Second Annual Report of the Council on En-
vironmental Quality, August 1971, pp. 3-265. 2660
Volume VI
4.2c The Third Annual Report of the Council on En-
vironmental Quality, August 1972, pp. 3-348. 2923
4.3 Citizens' Advisory Committee on Environmental Quality
Reports to the President and the President's Council on
Environmental Quality, as required by E.G. 11472, 3102 (c). 3269
4.3a Report to the President and the President's Council
on Environmental Quality, Citizens' Advisory Com-
mittee on Environmental Quality, August 1969. 3269
4.3b Report to the President and the President's Council
on Environmental Quality, Citizens' Advisory Com-
mittee on Environmental Quality, April 1971. 3292
4.4 Selected Reports: 3317
4.4a "Ocean Dumping: A National Policy." Report to the
President by the Council on Environmental Quality,
October 1970. 3317
4.4b "Toxic Substances", Report by the Council on En-
vironmental Quality, April 1971. 3377
4.5 Interim Guidelines, Executive Office of the President's
Council on Environmental Quality, 36 Fed. Reg. 7724
(1970) 3416
4.6 The Report of HEW and EPA on the Health Effects of
Environmental Pollution, Pursuant to Title V of P.L. 91-
515, H.R. Doc. No. 92-241, 92d Congress, 2d Sess. (1972)- 3428
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xxxvi CONTENTS
Page
4.7 Interagency Agreements: 3461
4.7a Economic Dislocation Early Warning System Memoran-
dum of Understanding Between the Administrator of
the Environmental Protection Agency and the Secretary
of Labor (1971). 3461
4.7b Establishing and Maintaining an Industrial Security
Program, Interagency Agreement Between the Environ-
mental Protection Agency and the Department of De-
fense (1972). 3463
4.7c Cooperative Efforts Regarding Air and Water Quality
in Implementing the Everglades Jetport Pact, Memo-
randum of Understanding Between the Environmental
Protection Agency and National Park Service (1972). 3466
4.7d General Policy and Procedures for Providing Economic
and Technical Assistance to Developing Nations, Agree-
ment Between the Environmental Protection Agency and
the Agency for International Development (1972). ___ 3468
4.7e Cooperative Program Entitled Modular-Size Integrated
Utility Systems, Memoradum of Understanding Be-
tween the Environmental Protection Agency and the
Department of Housing and Urban Affairs (1972). ___ 3473
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STATUTES AND LEGISLATIVE HISTORY 611
1.3 ENVIRONMENTAL QUALITY IMPROVEMENT
ACT OF 1970
42 U.S.C. §4371 et seg. (1970)
Sec.
4371. Congressional findings, declarations, and purposes.
4372. Office of Environmental Quality.
(a) Establishment; Director; Deputy Director.
(b) Compensation of Deputy Director.
(c) Employment of personnel, experts, and consultants; compensa-
tion.
(d) Duties and functions of Director.
(e) Authority of Director to contract.
4373. Referral of Environmental Quality Reports to standing committees
having jurisdiction.
4374. Authorization of appropriations.
§ 4371. Congressional findings, declarations, and purposes
(a) The Congress finds—
(1) that man has caused changes in the environment;
(2) that many of these changes may affect the relationship
between man and his environment; and
(3) that population increases and urban concentration con-
tribute directly to pollution and the degradation of our envi-
ronment.
(b) (1) The Congress declares that there is a national policy
for the environment which provides for the enhancement of envi-
ronmental quality. This policy is evidenced by statutes heretofore
enacted relating to the prevention, abatement, and control of envi-
ronmental pollution, water and land resources, transportation, and
economic and regional development.
(2) The primary responsibility for implementing this policy
rests with State and local governments.
(3) The Federal Government encourages and supports imple-
mentation of this policy through appropriate regional organiza-
tions established under existing law.
(c) The purposes of this chapter are—
(1) to assure that each Federal department and agency
conducting or supporting public works activities which affect
the environment shall implement the policies established
under existing law; and
(2) to authorize an Office of Environmental Quality, which,
notwithstanding any other provision of law, shall provide the
professional and administrative staff for the Council on Envi-
ronmental Quality established by Public Law 91-190.
Pub.L. 91-224, Title II, § 202, Apr. 3, 1970, 84 Stat. 114.
-------
612 LEGAL COMPILATION—GENERAL
§ 4372. Office of Environmental Quality—Establishment; Direc-
tor; Deputy Director
(a) There is established in the Executive Office of the President
an office to be known as the Office of Environmental Quality (here-
after in this chapter referred to as the "Office"). The Chairman
of the Council on Environmental Quality established by Public
Law 91-190 shall be the Director of the Office. There shall be in
the Office a Deputy Director who shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate.
Compensation of Deputy Director
(b) The compensation of the Deputy Director shall be fixed by
the President at a rate not in excess of the annual rate of compen-
sation payable to the Deputy Director of the Bureau of the
Budget.
Employment of personnel, experts, and consultants; compensation
(c) The Director is authorized to employ such officers and em-
ployees (including experts and consultants) as may be necessary
to enable the Office to carry out its functions under this chapter
and Public Law 91-190, except that he may employ no more than
ten specialists and other experts without regard to the provisions
of Title 5, governing appointments in the competitive service, and
pay such specialists and experts without regard to the provisions
of chapter 51 and subchapter III of chapter 53 of such title relat-
ing to classification and General Schedule pay rates, but no such
specialist or expert shall be paid at a rate in excess of the maxi-
mum rate for GS-18 of the General Schedule under section 5332
of Title 5.
Duties and functions of Director
(d) In carrying out his functions the Director shall assist and
advise the President on policies and programs of the Federal Gov-
ernment affecting environmental quality by—
(1) providing the professional and administrative staff and
support for the Council on Environmental Quality established
by Public Law 91-190;
(2) assisting the Federal agencies and departments in ap-
praising the effectiveness of existing and proposed facilities,
programs, policies, and activities of the Federal Government,
and those specific major projects designated by the President
which do not require individual project authorization by Con-
gress, which affect environmental quality;
(3) reviewing the adequacy of existing systems for moni-
toring and predicting environmental changes in order to
-------
STATUTES AND LEGISLATIVE HISTORY 613
achieve effective coverage and efficient use of research facili-
ties and other resources;
(4) promoting the advancement of scientific knowledge of
the effects of actions and and technology on the environment
and encourage the development of the means to prevent or
reduce adverse effects that endanger the health and well-
being of man;
(5) assisting in coordinating among the Federal depart-
ments and agencies those programs and activities which af-
fect, protect, and improve environmental quality;
(6) assisting the Federal departments and agencies in the
development and interrelationship of environmental quality
criteria and standards established through the Federal Gov-
ernment ;
(7) collecting, collating, analyzing, and interpreting data
and information on environmental quality, ecological re-
search, and evaluation.
Authority of Director to contract
(e) The Director is authorized to contract with public or pri-
vate agencies, institutions, and organizations and with individuals
without regard to section 529 of Title 31 and section 5 of Title 41
in carrying out his functions.
Pub.L. 91-224, Title II, § 203, Apr. 3,1970, 84 Stat. 114.
§ 4373. Referral of Environmental Quality Reports to standing
committees having jurisdicion
Each Environmental Quality Report required by Public Law
91-190 shall, upon transmittal to Congress, be referred to each
standing committee having jurisdiction over any part of the sub-
ject matter of the Report.
Pub.L. 91-224, Title II, § 204, Apr. 3, 1970, 84 Stat. 115.
§ 4374. Authorization of appropriations
There are hereby authorized to be appropriated not to exceed
$500,000 for the fiscal year ending June 30, 1970, not to exceed
$750,000 for the fiscal year ending June 30, 1971, not to exceed
$1,250,000 for the fiscal year ending June 30, 1972, and not to
exceed $1,500,000 for the fiscal year ending June 30, 1973. These
authorizations are in addition to those contained in Public Law
91-190.
Pub.L. 91-224, Title II, § 205, Apr. 3,1970, 84 Stat. 115.
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614 LEGAL COMPILATION—GENERAL
1.3a ENVIRONMENTAL QUALITY IMPROVEMENT
ACT OF 1970
April 3, 1970, P.L. 91-224, Title II, 84 Stat. 114
SHORT TITLE
SEC. 201. This title may be cited as the "Environmental Quality
Improvement Act of 1970."
FINDINGS, DECLARATIONS, AND PURPOSES
SEC. 202. (a) The Congress finds—
(1) that man has caused changes in the environment;
(2) that many of these changes may affect the relationship
between man and his environment; and
(3) that population increases and urban concentration con-
tribute directly to pollution and the degradation of our envi-
ronment.
(b) (1) The Congress declares that there is a national policy
for the environment which provides for the enhancement of envi-
ronmental quality. This policy is evidenced by statutes heretofore
enacted relating to the prevention, abatement, and control of envi-
ronmental pollution, water and land resources, transportation, and
economic and regional development.
(2) The primary responsibility for implementing this policy
rests with State and local governments.
(3) The Federal Government encourages and supports imple-
mentation of this policy through appropriate regional organiza-
tions established under existing law.
(c) The purposes of this title are—
(1) to assure that each Federal department and agency
conducting or supporting public works activities which affect
the environment shall implement the policies established
under existing law; and
(2) to authorize an Office of Environmental Quality, which,
notwithstanding any other provision of law, shall provide the
professional and administrative staff for the Council on Envi-
ronmental Quality established by Public Law 91-190.
OFFICE OF ENVIRONMENTAL QUALITY
SEC. 203. (a) There is established in the Executive Office of the
President an office to be known as the Office of Environmental
Quality (hereafter in this title referred to as the "Office"). The
Chairman of the Council on Environmental Quality established by
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STATUTES AND LEGISLATIVE HISTORY 615
Public Law 91-190 shall be the Director of the Office. There shall
be in the Office a Deputy Director who shall be appointed by the
President, by and with the advice and consent of the Senate.
(b) The compensation of the Deputy Director shall be fixed by
the President at a rate not in excess of the annual rate of compen-
sation payable to the Deputy Director of the Bureau of the
Budget.
(c) The Director is authorized to employ such officers and em-
ployees (including experts and consultants) as may be necessary
to enable the
[p. 114]
Office to carry out its functions under this title and Public
Law 91-190, except that he may employ no more than ten spe-
cialists and other experts without regard to the provisions of
title 5, United States Code, governing appointments in the compet-
itive service, and pay such specialists and experts without regard
to the provisions of chapter 51 and subchapter III of chapter 53 of
such title relating to classification and General Schedule pay rates,
but no such specialist or expert shall be paid at a rate in excess of
the maximum rate for GS-18 of the General Schedule under sec-
tion 5332 of title 5.
(d) In carrying out his functions the Director shall assist and
advise the President on policies and programs of the Federal Gov-
ernment affecting environmental quality by—
(1) providing the professional and administrative staff and
support for the Council on Environmental Quality established
by Public Law 91-190;
(2) assisting the Federal agencies and departments in ap-
praising the effectiveness of existing and proposed facilities,
programs, policies, and activities of the Federal Government,
and those specific major projects designated by the President
which do not require individual project authorization by Con-
gress, which affect environmental quality;
(3) reviewing the adequacy of existing systems for moni-
toring and predicting environmental changes in order to
achieve effective coverage and efficient use of research facili-
ties and other resources;
(4) promoting the advancement of scientific knowledge of
the effects of actions and technology on the environment and
encourage the development of the means to prevent or reduce
adverse effects that endanger the health and well-being of
man;
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616 LEGAL COMPILATION—GENERAL
(5) assisting in coordinating among the Federal depart-
ments and agencies those programs and activities which af-
fect, protect, and improve environmental quality;
(6) assisting the Federal departments and agencies in the
development and interrelationship of environmental quality
criteria and standards established through the Federal Gov-
ernment ;
(7) collecting, collating, analyzing, and interpreting data
and information on environmental quality, ecological re-
search, and evaluation.
(e) The Director is authorized to contract with public or pri-
vate agencies, institutions, and organizations and with individuals
without regard to sections 3618 and 3709 of the Revised Statutes
(31 U.S.C. 529; 41 U.S.C. 5) in carrying out his functions.
REPORT
SEC. 204. Each Environmental Quality Report required by Pub-
lic Law 91-190 shall, upon transmittal to Congress, be referred to
each standing committee having jurisdiction over any part of the
subject matter of the Report.
AUTHORIZATION
SEC. 205. There are hereby authorized to be appropriated not to
exceed $500,000 for the fiscal year ending June 30, 1970, not to
exceed $750,000 for the fiscal year ending June 30, 1971, not to
exceed $1,250,000 for the fiscal year ending June 30, 1972, and not
to exceed $1,500,000 for the fiscal year ending June 30, 1973.
These authorizations are in addition to those contained in Public
Law 91-190.
[p. 115]
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STATUTES AND LEGISLATIVE HISTORY 617
1.3a(l) HOUSE COMMITTEE ON PUBLIC WORKS
H.R. REP. No. 91-127, 91st Cong., 1st Sess. (1969)
[No Relevant Discussion on Pertinent Section]
1.3a(2) SENATE COMMITTEE ON PUBLIC WORKS
S. REP. No. 91-351, 91st Cong., 1st Sess. (1969)
AMENDING THE FEDERAL WATER POLLUTION CON-
TROL ACT, AS AMENDED, AND FOR OTHER PURPOSES
AUGUST 7 (legislative day, AUGUST 5), 1969.—Ordered to be printed
Mr. MUSKIE, from the Committee on Public Works,
submitted the following
REPORT
[To accompany S. 7]
The Committee on Public Works, to which was referred the bill
(S. 7), having considered the same, reports favorably thereon
with amendments and recommends that the bill (as amended) do
pass.
INTRODUCTION
S. 7, as reported, includes three titles, the first two of which
would amend the Federal Water Pollution Control Act, establish
an environmental policy for Federal public works projects and
provide for the establishment of an Office of Environmental Qual-
ity.
Title I of this legislation would provide specific approaches for
dealing with particular kinds of water pollution problems and
directing that additional studies be made with regard to some of
their more complex aspects.
For the first time the President would have power and authority
to deal with disastrous oil spills which threaten serious injury to
the Nation's waters and beaches.
The bill also breaks new ground by requiring compliance with
water quality standards by all activities over which the Federal
Government has direct control or for which Federal licenses or
permits are required. Discharges of sewage from vessels which
foul many of the Nation's marinas, harbors, and ports will be
subject to control measures.
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618 LEGAL COMPILATION — GENERAL
Authority would be provided to designate those hazardous sub-
stances, the discharge of which into the Nation's waters, presents
a substantial endangerment to health and welfare.
Authorizations for continued research under the act are pro-
vided as is new authority to solve specific pollution problems
caused by eutrophication (the natural process of aging of lakes)
and acid mine drainage.
Title II of this bill sets forth a fundamental procedure to coordi-
nate Federal, and federally assisted public works activities to as-
sure adequate consideration of the environmental policies set by
the Water Quality Act, the Air Quality Act, and the Solid Waste
Disposal Act. This title of S. 7, as reported, is designed to bring
coherent and integrated management of those environmental poli-
cies into the programs of the Federal Government.
Title III includes provisions for acquiring land for use of the
U.S. Senate.
The provisions, their ramifications and the intent of the commit-
tee will be discussed in detail by title.
[p. 2]
TITLE II— ENVIRONMENTAL QUALITY
SUMMARY AND DISCUSSION OF MAJOR PROVISIONS
Our contemporary culture, primed by population growth and
driven by technology, has created problems of environmental deg-
[p. 36]
radiation that directly affect all of our senses: noise, odors, and
toxins which bring physical pain and suffering, and ugliness, bar-
renness, and homogeneity of experience which bring emotional
and psychological suffering and emptiness. In short, we are jeop-
ardizing our human qualities by pursuing technology as an end
rather than a means.
Too often we have failed to ask two necessary questions : First,
what human purpose will a given technology or development
serve? Second, what human and environmental effects will it
have ? These questions require responses before we implement and
distribute the products of our new technology. The facts are well
documented. The committee has studied the application of these
problems in the areas of air and water pollution, solid waste,
highway construction, water resource development, and economic
development.
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STATUTES AND LEGISLATIVE HISTORY 619
The message which has emerged from these investigations and
from all studies of environmental problems, whatever their origin
or focus, is essentially the message of ecology—that we, and all of
our activities, are integral parts of a natural system. We cannot
consider any human activity independently of this system if we
hope to achieve a quality of life worthy of the name.
The Subcommittee on Air and Water Pollution has been instru-
mental during the last six years in forming a national environ-
mental policy. The subcommittee's work has resulted in the Clean
Air Act of 1963, and the 1965 and 1966 amendments; the Air
Quality Act of 1967; the Water Quality Act of 1965; the Clean
Water Restoration Act of 1966; and the Solid Waste Disposal Act
of 1965.
The basis for the legislation is a strong Federal-State-local part-
nership. The States have been delegated the primary responsibility
to protect and enhance the quality of air and water within their
boundaries, and, in cooperation with other States, to protect and
enhance the quality of air and water within resource areas com-
mon to those States. The Federal Government has the responsibil-
ity to improve our understanding of environmental threats, the
authority to act where States fail or are unable to fulfill their
obligations and the obligation to protect the environment in its
own activities.
The laws provide Federal support for improved organization of
State and local abatement programs, planning activities, and the
research, development, and demonstration of new control technolo-
gies. The programs authorized under the acts are based on the
concept of prevention and are designed to reduce discharges into
the atmosphere and public waterways. They are limited only by
the effectiveness of existing technology and by the outmoded phil-
osophy of waste disposal rather than waste management and
reduction.
The legislation seeks to promote and encourage the development
of policies and institutions geared to the regional nature of envi-
ronmental problems. Whether or not it succeeds depends upon the
degree of commitment and cooperation of State and local govern-
ments and the taxpayer and citizen. The responsibility is a heavy
one.
The committee and the Congress are pledged to a national policy
of enhancement of environmental quality, a policy based on the
concept that man and his environment are interrelated and that a
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620 LEGAL COMPILATION—GENERAL
quality environment is necessary to the improvement of living-
standards for all men.
[P. 37J
The committee is committed to a review of legislation under its
jurisdiction and expects to initiate review proceedings in all of its
subcommittees during this Congress. Sections 201 and 202 of title
II of S. 7 are provisions to expedite this review. However, juris-
dictional questions in the Congress often frustrate effective review
of administrative practices and duplication.
Essentially, institutional fragmentation is a result of legislation
that grants authority to conduct, regulate, or otherwise administer
a particular environmental program or policy without granting
corollary authority and direction to consider such program or
policy in the context of the total environmental system.
Institutional fragmentation, however, is subject to remedies
other than a modification of statutory authority, once Congress
has manifested its will that all authorized activities be undertaken
in harmony with environmental quality. With respect to Federal
and federally assisted public works projects, it is the committee's
judgment, as expressed in section 201(b)(l), that Congress has
so expressed its will in prior acts and statements of intent.
Existing pollution control legislation is directed toward the de-
velopment of an operational national policy. The Environmental
Quality Act would extend the Federal government's environmental
management effort in several important areas. It would require
that all federally supported public works projects and programs
be planned and developed in full recognition of their ecological
impact. Technological and economic developments which produce
short-term benefits at the expense of the long-term health and
productivity of the environment would be rejected.
For example, the location, design, and development of the Corps
of Engineers civil works projects should be evaluated to take into
full account the ecological implications of the decisions involved.
Alternatives should be chosen which minimize deleterious effects.
A major need for improved environmental management in rela-
tion to public works exists in our Federal-aid highway program.
The Interstate Highway System has served to link our urban
centers in an ever-increasing flow of commerce, goods, and people.
But the roads, and the economy they support, are not ends in
themselves. With more environmental planning they can better
serve the needs of our people, through respect for the integrity
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STATUTES AND LEGISLATIVE HISTORY 621
and future development of communities and by attention to the
protection of natural beauty and resources.
Our highways must be brought into harmony with the commu-
nities and countrysides they traverse. Too often this need has re-
ceived little more than lip service. Locations have been chosen to
serve the more limited benefits of the user rather than the needs of
the community at large.
Cities such as Baltimore and Chicago are attempting to manage
the environmental impact of highways by employing urban design
concept teams. This approach involves engineers, architects, soci-
ologists, urban planners, economists, and other specialists to form
a coordinated team. The team examines the highway corridor in a
framework which emphasizes overall community goals and plans.
Although still experimental, this approach has proven worth-
while and will provide criteria to aid others in evaluating urban
[p. 38]
transportation needs in terms of social, esthetic, and economic
values. The knowledge gained should yield new methods and tech-
niques of assistance in the solution of complex urban problems.
Ugliness, clutter, litter, the lack of parks and open space, and
inadequate recreational opportunities are among the basic compo-
nents of the crisis in America's cities. An effective response to the
urban crisis requires a series of measures responsive to citizens'
needs for housing, health and sanitation, education, employment,
transportation, and pollution abatement. The committee also feels
that provisions must be made for improving the appearance of
cities, for new urban parks and more open space, and for creating-
attractive and diverse recreational experiences.
Federal-aid highway legislation of the 1960's has created high-
way beautification programs and has strengthened the protection
of parklands. It also requires the consideration of social and envi-
ronmental factors and community goals and objectives in the loca-
tion of proposed highway projects. Such policies can only be car-
ried out in coordination with other agencies.
Recognizing the need in water resource programs for "develop-
mental planning" rather than "response planning," the Committee
on Public Works initiated the first program in this area in the
Appalachian Regional Development Act of 1965, which authorizes
regional water resources planning programs for the Appalachian
region. This concept and this approach should be extended to other
regions of the country. Water resources development could be used
to reverse the trends of population movement from rural to the
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622 LEGAL COMPILATION—GENERAL
highly urbanized areas. The Appalachian Regional Development
Act also provides for the development of programs for mine land
reclamation and pollution control.
In shaping these policies the committee has worked to dispel
any concept of any component of the environment—air, water, or
land—as an infinite reservoir, with an infinite capacity to dilute,
disperse, and assimilate waste. Our resources are limited, and we
have overdrawn our bank account.
More and more public officials and individual citizens recognize
the need for integrated national policies for the environment. This
recognition stems from the facts that we are confronted with (1)
problems of accelerating environmental degradation; (2) the in-
adequacy of our government agencies, public and private institu-
tions to deal with environmental degradation; and, (3) a reluct-
ance to make the necessary investments of money and resources to
do the job.
The committee has focused on several measures designed to
remedy institutional fragmentation in the area of environmental
quality. There has been some discussion of reorganizing the Fed-
eral executive branch in order to put all environmental agencies
under one department. This may or may not be advisable, but, as
the committee learned so dramatically from the Santa Barbara
incident, the fact that the Geological Survey, the Fish and Wildlife
Service, and the Federal Water Pollution Control Administration
are located in the same Department did not result in adequate
consideration of the environment in the Outer Continental Shelf
leasing program.
The committee has concluded that the problems are more ur-
gently management problems than they are organizational prob-
[p. 39]
lems. Therefore, it has proposed under this title an Office of Envi-
ronmental Quality to provide the President with the management
capability necessary to bring coherence and consistency into the
environmental activities of the Federal Government. The commit-
tee has studied the bills, S. 1818, introduced by Senator Tydings,
and S. 2391, as well as other legislative proposals along with the
President's establishment of a Cabinet Environmental Council,
and has concluded that an independent environmental staff in the
Executive Office of the President is necessary if all Federal pro-
grams are to be effectively coordinated and administered to carry
out the Nation's policy of environmental enhancement.
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STATUTES AND LEGISLATIVE HISTORY 623
In creating a Cabinet Council on Environmental Quality, the
President established a mechanism that, as described by Dr. Lee
DuBridge, Science Adviser to the President, is an action organiza-
tion to implement Presidential decisions and policies. Such action
is commendable. It puts into focus the limited management tools
the President has at his disposal to make the Council function
effectively and creatively.
The Office of Science and Technology is presently the staffing
organization of the President's Council and is the general adviser
to the President on matters of environmental quality. Unfortu-
nately, the Office of Science and Technology has widespread respon-
sibilities, is thinly staffed, and, in turn, must look to the depart-
ments and agencies of the Federal Government for staff assist-
ance. This, of course, establishes a system in which the advice and
assistance the President receives, and on which he instructs or
directs the agencies and coordinates their activities, ultimately
comes from the agencies themselves. Such a system, no matter
how well intentioned, cannot be expected to produce critical and
independent review of the Federal establishment, and represents a
poor management structure for which the President is dependent
on Congress to change.
The problems associated with environmental quality are not
entirely scientific and demand a broader range of professional
staff than is found in the Office of Science and Technology. Envi-
ronmental quality issues and answers require legal, economic, so-
cial, management, and systems analysis as well as scientific study.
Consequently, the present staff and the historical orientation of
the Office of Science and Technology may not be adequate to sat-
isfy the demands that proper evaluation of environmental quality
present.
One unavoidable product of the technological society in which
we live is the occurrence of events or conditions that demand
immediate analysis and consideration in the highest levels of gov-
ernment. In recent months there have been several examples of
these events: The Santa Barbara disaster, ocean disposal of cer-
tain military weapons, and fish kills from pesticides. In each in-
stance, because of insufficient staff, the President has found it
necessary to either appoint task forces of Government agency
personnel or seek the assistance of private advisers. Private advis-
ers are certainly necessary, but they are not in a position to give
the President the depth of continuous staff support he needs for
the development of sound policies. An independent staff in the
Executive Office with immediate access to all information in the
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624 LEGAL COMPILATION—GENERAL
Federal establishment and with appropriate standing advisory
committees will provide the policy guidance necessary for continu-
ous review and advisory services for the President.
In addition, this legislation authorizes the Director of the Office
of Environmental Quality to convene, every 2 years, a forum on
environmental quality. It is the committee's intent that these for-
ums be organized in a manner to enable the most competent citi-
zens, private or otherwise nonfederally employed, including those
who are controversial, to critically analyze and otherwise evaluate
the environmental policies, activities and trends of the Nation.
A great weakness in the administration of Federal programs is
a management weakness: an information, coordination, consulta-
tion, timing, and research hodgepodge. Many agencies have begun
to recognize this internally and have taken steps to provide a
remedy, such as the establishment of an Assistant Secretary for
Urban Systems and Environmental Affairs in the Department of
Defense, and a proposed Office of Ecology in the Department of
Interior. This growing practice must be complemented by an over-
all management, review, and analysis function in the Executive
Office of the President. More importantly, the functions of these
new departmental offices concerned with the quality of the envi-
ronment need constant and effective coordination. That coordina-
tion can be provided by the newly created Council only if inde-
pendent staff assistance is available.
The most difficult task facing the President and the Congress, is
the review and analysis of the administration of the total environ-
mental programs and policies activities of the Federal Govern-
ment, a function that needs to be coordinated from the vantage
point of the Office of the President. This function cannot be car-
ried out on an ad hoc or part-time basis. The committee stronplv
feels that this function requires a sufficiently large and competent,
independent staff, unaffiliated with any other Federal agency. Only
in such a manner will the President and the Nation receive a close
review and analysis of the environmental activities of the Federal
Government.
The President's Executive order establishing the Cabinet-level
Environmental Quality Council and the Citizens' Advisory Com-
mittee on Environmental Quality provides a mechanism to coordi-
nate the environmental protection programs enacted to date
through a policy of comprehensive Federal consideration of all
aspects of environmental quality in the utilization of natural re-
sources.
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STATUTES AND LEGISLATIVE HISTORY 625
One of the questions raised about the potential effectiveness of
the President's Council has been the lack of advice independent of
the agencies represented on the Council. As noted above, the com-
mittee does not believe the Office of Science and Technology can
meet that need. An Office of Environmental Quality would provide
the independent staffing required by the Council and would make
available to the President the professional competence and facili-
ties necessary to the substantive review and analysis of all matters
relating to the environment. In addition, the Office would be re-
quired to report on environmental issues to Congress, the Council,
and the public.
The bill reported by the committee does not tell the President
how to organize his administration to deal with environmental
problems. It provides him with staff support for whatever ar-
rangement he determines most appropriate to his approach to the
administration of the Executive branch.
One of the principal advantages of this legislation is the recog-
nition that progress can be made in enhancing the quality of the
[p. 41]
environment only if that policy has the full support of both the
President and the Congress.
The Office of Environmental Quality should increase the capac-
ity of the President to support that policy, and the Congress needs
to give further attention to its capacity to deal with the varied and
interrelated problems which comprise our environmental crisis.
Man has now forced his way out of his environment. We con-
tinue to flex our muscles and look to further growth, but our world
will not grow with us.
In some future time, we may find another environment in which
we can live without artificial assistance, but for the foreseeable
future man has but one home and one natural environment. If we
do not begin a coordinated effort to repair the damage we have
caused and prevent greater damage in the future, man may be-
come an ecological orphan—faced with an environment which can-
not support simple human existence, much less the growing tech-
nology on which we have thrived.
The committee feels that the Environmental Quality Improve-
ment Act of 1969, title II of this legislation, will encourage a focus
on this problem and require effective action by Federal agencies
which have not lived up to their responsibilities in the past.
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626 LEGAL COMPILATION—GENERAL
EXCERPTS FROM HEARINGS ON ENVIRONMENTAL QUALITY
During the past 6 years, in the course of its work on environ-
mental quality legislation, the Committee on Public Works has
become increasingly concerned with the impact of federally aided
programs and activities on the environment. The proposed section
16 under title I and title II is a logical extension of that concern
and of the findings of the committee, particularly as they relate to
the 1968 and 1969 hearings on thermal pollution. The following
quotations from hearings and reports illustrate the extent of the
committee's concern and underscore the relevance of title II to the
legislative program developed by the committee.
During the 88th Congress, the Senate Committee on Public
Works found an increasing amount of its activity shifting
from the consideration of traditional project legislation to
substantive matters. Increased emphasis on the conservation
of air and water resources has been answered by means to
prevent pollution. Increased concern for lagging economic
growth in certain areas of the Nation has produced public
works programs designed to aid economic development. Our
highway program is being examined for its total community
value.
Rivers and harbors measures, themselves, are less and less
simple one-purpose projects. Previous Congresses set the
stage we are moving onto now where comprehensive planning
and multipurpose developments are required. The interrela-
tionship of water resource development with economic growth
[p. 42]
is becoming more the rule than the exception as demonstrated
by the Appalachia bill reported by the committee.
The Appalachia bill marks a sharp departure in the respon-
sibilities of the committee which first began with considera-
tion and the passage of the Accelerated Public Works Act.
Appalachia is the first extensive legislation identifying
dams, reservoirs, roads, sewage treatment plants, sewers,
buildings, and other public works as the physical require-
ments for economic growth. Accelerated public works recog-
nized the value of public works as an antidepression measure.
Combined with Appalachia the building of public works pro-
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STATUTES AND LEGISLATIVE HISTORY 627
vides not only immediate employment but the means for
long-term general improvement.
(Summary of Legislative Activities, Committee on Public
Works, U.S. Senate, 88th Cong., p. v.)
AIR AND WATER POLLUTION
The concern of the Committee on Public Works for environmen-
tal quality led to the establishment of a special subcommittee on
air and water pollution during the 88th Congress on April 30,
1963.
The national water pollution control program has for its
primary objective the enhancement of the quality and value
of the Nation's water resources. This can only be done by
preventing, controlling, and abating water pollution.
The Federal Water Pollution Control Act is the basic statu-
tory authority for Federal participation in the national pro-
gram. The act authorizes the administration and conduct of
programs directed to the achievement of the important na-
tional water quality goal. The bill provides for specific expres-
sion of the act's purpose to establish a national policy for the
prevention, control, and abatement of water pollution through
effective administration of its comprehensive authorities.
(Federal Water Pollution Control Act Amendments of 1965, S.
Kept. 89-10, p. 4.)
(1) Authorize the initiation and acceleration of a national
research and development program for new and improved
methods of proper and economic solid waste disposal, reduc-
ing the amount of waste and unsalvageable material and re-
covering and utilizing potential sources of solid waste, and
provide technical and financial assistance to State and local
governments and interstate agencies in planning, developing,
construction, and conduct of solid waste disposal programs.
(2) Provide that not to exceed 25 percent of funds appro-
priated for this purpose may be made for grants-in-aid, or to
contract with, public or private agencies and institutions and
to individuals for research and training.
(3) Authorize grants to State, municipality, or intermuni-
cipal or interstate agency for the purpose of assisting in the
development of any project which will demonstrate a new or
improved method of disposing of solid waste. * * *
[p. 43]
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628 LEGAL COMPILATION—GENERAL
(4) Encourage cooperative activities by States and local
governments in connection with solid waste disposal pro-
grams, encourage planning, and encourage the enactment of
improved, and, so far as practicable, uniform State and local
laws governing solid waste disposal.
(5) Authorize up to 10 percent of funds available for the
solid waste disposal program to be used in connection with
the grants for support of air pollution control programs of
the Clean Air Act. Grants would be made in an amount of up
to two-thirds of the cost of making surveys of solid waste
disposal practices and problems within the jurisdictional
areas of appropriate agencies, and development of solid waste
disposal plans. * * *
(Clean Air Act Amendments and Solid Waste Disposal Act. S.
Rept. 89-192, pp. 2-3.)
* * * requires that any Federal department or agency hav-
ing jurisdiction over any building, installation, or other prop-
erty shall discharge waste only in compliance with standards
* * *
* * * authorize appropriations to be made to the appropri-
ate Federal departments or agencies for the installation,
maintenance, and operation of water pollution control facili-
ties which have been designed to meet standards prescribed
* * *
* * * authorizes the Secretary of Health, Education, and
Welfare, upon request by a department or an agency, to train
personnel to operate and maintain water pollution control
systems.
There are provisions in existing law which authorize train-
ing in technical matters relating to the cause, prevention, and
control of water pollution to personnel of public agencies and
other persons of suitable qualifications. However, the commit-
tee is concerned that such authority may not be construed or
utilized for the purpose of developing skilled personnel to
operate and maintain treatment plants, particularly in new
facilities.
* * * would provide for a system of reporting to the Secre-
tary of Health, Education, and Welfare by the Federal de-
partment or agencies which have jurisdiction over buildings,
installations, and other property, and which discharge waste.
In addition, the Secretary of Health, Education, and Welfare
would report to the President and the Congress with respect
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STATUTES AND LEGISLATIVE HISTORY 629
to effectiveness of actions taken by those Federal departments
or agencies in controlling water pollution.
* * * requires that all Federal departments and agencies
cooperate with the Department of Health, Education, and
Welfare, and with air pollution agencies in controlling air
pollution discharges from any Federal building, installation,
or property. Further, the Secretary of Health, Education, and
Welfare is authorized to establish classes of potential pollu-
tion sources for which any Federal department or agency
[P. 44]
would be required to obtain a permit from the Secretary
before discharging any matter into the air.
* * * authorize appropriations to be made to the appropri-
ate Federal departments or agencies for the installation and
maintenance of air pollution control devices as are certified by
the Secretary of Health, Education, and Welfare to be ade-
quate to meet the limitations on emissions prescribed by him.
In addition, it directs such Federal departments or agencies
to request funds to make necessary installations to meet the
limitations for allowable emissions.
* * * require that, after the effective date of this section,
no Federal department or agency shall construct, prepare for
use, or expand facilities without the inclusion of air pollution
control measures which the Secretary of Health, Education,
and Welfare considers to be adequate.
* * * authorizes the Secretary of Health, Education, and
Welfare, upon request by a department or an agency, to train
personnel to operate and maintain devices or other means of
preventing or controlling air pollution.
* * * provide that Federal departments or agencies keep
the Secretary of Health, Education, and Welfare informed of
air pollution control practices in effect at buildings, installa-
tions, and other property under their jurisdiction. They are
also to inform the Secretary of the absence of, or failure to
institute, practices necessary and adequate to correct defi-
ciencies and the reasons therefor. In addition, the Secretary is
to report each January to the President and the Congress on
status and effectiveness of actions taken.
(Federal Installation, Facilities, and Equipment Control Act. S.
Kept. 89-128, pp. 10-11.)
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630 LEGAL COMPILATION—GENERAL
The prime purpose of the proposed legislation is to
strengthen the Clean Air Act, to expedite a national program
of air quality improvement, and to enhance the quality of the
atmosphere to protect the health and welfare of our citizens
against long-term hazards and immediate danger. Considera-
tions of technology and economic feasibility, while important
in helping to develop alternative plans and schedules for
achieving goals of air quality, should not be used to mitigate
against protection of the public health and welfare.
The objective of S. 780 as amended is to achieve clean air,
and to do so through the establishment of sound objectives
and feasible timetables. The committee's hearings indicated
that those who contribute to air pollution share with all
Americans the objective of cleaning up the air, and that the
differences of opinion expressed were addressed primarily to
how that objective best could be accomplished. Through a full
understanding of the etiology, the probabilities, and the se-
verity of health and welfare hazards involved and with the
strengthening of the technological and economic capabilities
for abatement in both the public and private sector of our
economy, the needs of public health and welfare without seri-
ous or excessive economic dislocation can be met.
[p. 45]
This legislation contains imaginative and far-reaching op-
portunities for air pollution control and abatement, but the
bill is complex, as are the problems of environmental control.
The problem of air pollution is neither local nor temporary. It
is a universal problem, and, so long as our standard of living
continues to increase, it will be a permanent threat to human
well-being.
S. 780, as amended by the committee, will provide a com-
prehensive, broad-based attack on the Nation's air pollution
problem while expanding the potential of control technology
and identifying the health and welfare effects of air pollution.
Its objective is the enhancement of air quality and the reduc-
tion of harmful emissions consistent with maximum utiliza-
tion of an expanding capacity to deal with them effectively.
At the same time, it provides authority to abate any pollution
source which is an imminent danger to health, by whatever
means necessary.
(Air Quality Act of 1967, S. Kept. 90-403, p. 2.)
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STATUTES AND LEGISLATIVE HISTORY 631
The President's Executive order on water pollution and
section II of the Federal Water Pollution Control Act are
both directed at water pollution control activities by Federal
agencies.
Nuclear powerplants are licensed by a Federal agency and
therefore can and should be expected to conform with applica-
ble water quality standards and a concept of water quality
enhancement.
But the committee has found that Federal agencies are not
assuming the proper leadership role—that often their activi-
ties actually condone pollution rather than encourage water
quality enhancement.
Thermal pollution is only one case. There are numerous
Federal agencies which need to exercise more leadership both
in their own activities and in the activities over which they
are responsible.
Only in this way can the Federal effort in pollution control
appropriately relate to the expanding vigor of the State pro-
grams. This expanded Federal role is especially essential, at a
time when, because of a serious national budgetary restric-
tion, full Federal funding of construction activities may not
be possible.
(Opening statement at hearings of the Senate Committee on
Public Works on Thermal Pollution, 1968, pt. 1, pp. 1-2.)
While water quality standards, now set and approved for
most interstate waters, will cause installation of such control
facilities as are necessary for compliance, serious question
has been raised regarding the role of Federal agencies which
authorize or assist such activities without requiring compli-
ance with applicable standards.
In order to ascertain the extent to which Federal agencies
are conducting such activities, the committee began, early last
year, hearings on the role of the Atomic Energy Commission
relative to control of waste heat discharges from federallv
[p. 46'J
licensed nuclear powerplants. The hearings indicated several
important problems.
/ 1. The Atomic Energy Commission does not consider
its legislative authority sufficient to condition licenses
relative to water quality standards for other than radio-
active materials;
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632 LEGAL COMPILATION—GENERAL
2. The AEC regulations specifically prohibit interven-
tion or testimony on the subject of pollution other than
radioactive discharges;
3. State agencies charged with water pollution control
responsibility question their ability to require control of
nuclear powerplant waste heat discharges once that plant
has been licensed for operation by a Federal agency,
believing that the existence of the Federal license might
preempt State regulatory authority;
4. Thermal pollution is of sufficient concern to require
consideration prior to final selection of a steam electric
powerplant site both because of the potential adverse
effect of heated water discharges on the receiving
streams and because of the land requirements associated
with construction of cooling facilities if required; and
5. Waste heat discharges can seriously and adversely
affect the ecological balance of the receiving waters and,
though much remains to be learned about these effects, a
sufficient body of evidence exists to establish standards
and require control.
The information received during the hearings suggested a
need for the Federal Government to become involved at an
early stage in water quality control by entities which receive
Federal authorization or assistance.
On September 16, the subcommittee invited comment on the
extent to which the electric utilities industry should consider
environmental hazards in selecting powerplant sites. This
question resulted from information developed during the
hearings pointing out—
1. Few utilities have considered ecological effects of
waste heat discharges either in relation to site location or
operation of thermal generating stations;
2. Little, if any, investigation has been made by most
utilities to determine ecological background of receiving
waters;
3. Use of existing cooling technology for other than
conservation of water has not been considered by utilities
until after intense public pressure has been exercised;
and
4. The general assumption seems to be that any risk of
adverse ecological effects associated with thermal pollu-
tion be taken by the public rather than the utility.
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STATUTES AND LEGISLATIVE HISTORY 633
However, the correspondence which follows indicates that
ecological effects are of significant importance to warrant
early consideration in a utility's decision to construct new
steam electric generating facilities.
(Summary statement on hearings of the Senate Committee on
Public Works on Thermal Pollution, 1968, pt. 3, pp. 975-976.)
[p. 47]
What we are talking about is adding something to the envi-
ronment that is not now added. Now, if it happens to be
harmful we may be doing something that is irrevocable. If it
happens to be good, so much the better. But by withholding
any discharge or any such addition to the environment we are
making no impact and that is the ideal situation to maintain
until you get the answers. Unfortunately, we do need the
additional energy, so we have the problem of how in the
period during which we are trying to find the answers we
minimize the possibility of harmful effects.
The fact that in some cases you may get beneficial effects
does not necessarily justify taking the risk of harmful effects
when you can withhold both until you get the answer.
We are going to have an argument in each case as to
whether or not we know enough to impose a restriction. Well,
I think that increasingly we have to take the point of view
that if we don't know enough, then we don't know enough to
permit the discharge.
If the point that we don't know enough justifies not impos-
ing control, then it seems to me it also justifies not permitting
the discharge.
At least I think we ought to take that perspective on every
one of these plant location decisions. I don't think we can
afford to take a position that until we know specifically what
the harmful effects are, we have to assume that there is
enough good to build a plant.
I think that is a wrong perspective. I think that we have to
enlarge our area of knowledge as fast as we can so that we
won't deprive ourselves of the necessary electrical energy, but
I don't think we can just leave it an open door to permit this
kind of development to continue without any restriction or
restraint simply because we don't know all we ought to know
about the harmful effects.
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634 LEGAL COMPILATION—GENERAL
There is a change of perspective and I think we have to
arm the Federal agencies and the State agencies, as we would
under this legislation, with enough restraining authority so
we just don't plunge headlong into a lot of problems that will
plague us once we begin to know the full implication of what
we have done.
(Comment by Senator Muskie at hearings of the Senate Com-
mittee on Public Works on Water Pollution, 1969, pt. 1, pp.
42-43.)
Legislation has been enacted to deal separately with the
control and abatement of air, water, and land pollution. The
enhancement of environmental quality has become a major
national goal. The committee has now turned its attention to
the need for environmental planning. As existing sources are
brought under control, management of wastes and environ-
mental quality can become a reality. As this possibility
[P. 48]
evolves, a policy must be defined relating to the responsibil-
ities and rights in the use of air, water, and land resources.
The need for a policy relating to use of the air, inland, and
coastal waters, and land resources is highlighted when it is
realized that any single form of waste can be transformed to
another form during handling and disposal. Solid waste, for
example, may result in gaseous wastes when incinerated, liq-
uid wastes when ground in garbage grinders, or remain as
solid waste materials disposed of in landfills. This is but one
example which suggests the need for an integrated policy for
all forms of wastes rather than separate policies for solid
waste disposal, air pollution control, and sewage disposal.
A policy of environmental quality management for all
forms of wastes is clearly required. Such a policy need not
suggest that the administration of these programs be com-
bined, but in the absence of a combined administration, the
need for an overall coordinated policy is even more urgent.
(Summary of Legislative Activities; Committee on Public
Works, U.S. Senate, 90th Congress, p. 45.)
Environmental Quality
During the second session, the subcommittee held hearings
on "Environmental Quality Management and Waste Manage-
ment Research." Legislation has been enacted to deal sepa-
rately with air pollution, water pollution, and solid waste
-------
STATUTES AND LEGISLATIVE HISTORY 635
disposal, but a congressional policy directed at their interrela-
tionship is less precise. These hearings provided an initial
look at this interrelationship and the need to define a public
policy relating to the responsibilities and rights in the use of
air, water, and land resources.
These hearings provided an initial look into two areas.
First, is there a need for a policy relating to the use and
degradation of the air, inland and coastal waters, and land
resources of the United States ?
Second, are the current Federal research management poli-
cies and practices in air and water pollution, and solid waste
disposal adequate to the problem? Enacted legislation re-
quires the establishment and implementation of air and water
quality standards on prescribed time schedules. Current tech-
nology will reportedly satisfy many immediate objectives
such as municipal waste water treatment of control of air-
borne particulates. These hearings provided an initial look at
long-term needs and the adequacy of control technology to
insure compliance with prescribed time schedules. Particular
attention was given to improvements in Federal research
management practices which might expedite development of
control technology.
(Summary of Legislative Activities, Committee on Public
Works, U.S. Senate, 90th Cong., pp. 61-62.)
[p. 49]
RIVERS AND HARBORS AND FLOOD CONTROL
Public works for many years has been synonymous with
flood control. But recently the simplicity of a flood control
project has given way to the necessity of considering much
more than a single factor when developing a reservoir pro-
gram. As a result public works is becoming more and more a
matter of water resources programing.
The Federal civil works program under jurisdiction of the
Corps of Engineers, embraces the works for improving riv-
ers, lakes, coastal areas, and harbors of the United States in
the interest of navigation, flood control, hydroelectric power
development, water supply, pollution abatement, recreation,
beach erosion control, and other allied water purposes, which
the committee has approved and the Congress authorized for
accomplishment by the Corps of Engineers, Department of
the Army.
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636 LEGAL COMPILATION—GENERAL
(Summary of Legislative Activities, Committee on Public
Works, U.S. Senate, 88th Cong., p. 5.)
It has long been recognized that flood control is only one of
the purposes for which our water resources should be devel-
oped. Congress has recognized that full consideration should
be given to a desirable improvement for the use and control of
all the water resources, in the committee, the projects and
basin plans included in this bill give full weight to the naviga-
tion possibilities; the development of hydroagricultural uses;
the utilization or recreation potentialities in connection with
reservoirs; the preservation of fish and wildlife; the abate-
ment of stream pollution; the improvement of water quality;
and the provision of improved sanitary facilities. The com-
mittee feels that a program for flood control and navigation
would not be comprehensive or in the best interests of the
Nation unless all these factors were considered.
(River and harbor, beach erosion control, and flood control pro-
jects, S. Kept. 87-2258, pp. 3-6.)
We are no longer just concerned with flood prevention—but
with the multiple aspects of reservoir development—including
water supply hydropower development, recreation, and other
multiple uses made possible by large storage dams.
Water is a precious commodity. It is becoming more appar-
ent each year—that we cannot afford to waste, pollute, or in
any way destroy this natural resource.
Therefore, it is of paramount importance that in our plans
for controlling destructive flood waters, we fully utilize all the
waters stored in a manner that will provide releases for con-
servation purposes—such as power development, industrial
and domestic water supply, recreation, and pollution abate-
ment.
The Congress has asked the Corps of Engineers to look into
comprehensive river basin planning, as the best means of
fully developing our water resources.
(Opening statement at the hearings of the Senate Committee on
Public Works, on Public Works Authorizations, 1965, pt. I, pp.
1-2.)
[p. 50]
In this work we are dedicated to the principle of providing
the best use, or combination of uses, of these resources in the
service of the economic and social welfare of the Nation.
-------
STATUTES AND LEGISLATIVE HISTORY 637
The disciplines and techniques of economics, political and
social science, and public administration, as well as engineer-
ing, bear importantly in the solution of the complex resource
development problems of our present-day society. In our role
as public planners we are striving to provide the insight and
leadership necessary to bring all of the pertinent disciplines
and techniques into focus on these problems.
The test of any planning lies in the soundness of the action
programs it defines. In down-to-earth terms this means that
in the field of water-oriented planning we must devise effec-
tive ways of meeting needs—both immediate and long term
—for domestic, municipal, industrial, and agricultural water
supply; water quality control; navigation; hydroelectric
power; flood control; land and beach stabilization; drainage
and salinity control; hurricane and tidal flood damage con-
trol; outdoor recreational activity, including that associated
with preservation and enjoyment of open space, green space
and wild areas of unique natural beauty or special interest;
and fish and wildlife conservation and enhancement. These
factors all are considered in our project proposals. * * *
* * * As we approach the borderline between water abun-
dance and water deficiency in many parts of the Nation, and
strive to catch up in those areas where we already have
crossed this border, it becomes clear that the pace of our
planning and development activities must be increased. In
addition to the pace imposed by growing demands, there is
the added pressure of complexity. With few exceptions the
day of single-purpose project planning is a thing of the past.
Multiple-purpose planning now is the rule of the day.
(Testimony of Maj. Gen. Jackson Graham, hearings of the Sen-
ate Committee on Public Works, on Public Works Authorizations,
1965, pp. 15-16.)
* * * In water development it is not enough to consider
measurable market values. We must also look beyond them.
Water is related to public health, to outdoor recreation, and to
the beauty of the landscape. * * *
If the assessment of values to be taken into account in
project design is difficult, so are the technical engineering
aspects. A variety of engineering and natural science special-
ists are required to design and operate a modern water facil-
ity. * * *
In my opinion the policies and administrative arrange-
ments which evolved out of the earlier period of our history
-------
638 LEGAL COMPILATION—GENERAL
have not yet caught up with the kind of water management
task now confronting us. * * *
[p. 61]
I am not suggesting that a Federal agency or combination
of Federal agencies should be clothed with this kind of au-
thority nor am I suggesting that all water resources manage-
ment responsibilities be turned over to State or regional orga-
nizations. But I am indicating that some combination of poli-
cies and administrative arrangements that can institute these
measures in a coordinated fashion is essential if water re-
sources management is to provide American society with the
full potential benefits inherent in the resources with which we
have been endowed.
(Testimony of Irving Fox, Resources for the Future, hearings
of the Senate Committee on Public Works on Public Works Au-
thorizations, 1965, pp. 30-31.)
HIGHWAY BEAUTIFICATION
Many millions of us have been disheartened as we have trav-
eled about the country and have seen hillsides stripped of
their foliage, roadsides littered with trash, streams polluted.
Some citizens, no doubt have felt that "uglification"—this
desecration of the land and water—was a necessary price we
must pay for industrial progress, and a necessarv byproduct
of the tremendous growth in our population. Others, fortu-
nately, have not given up so easily and, in fact, have recognized
that our growth in population and our economic development
are factors which make it absolutely essential that we take
positive action to preserve our natural resources. We have
come to realize that we do not have unlimited land and water.
Of necessity, many of us are going to be crowded in urban
places. We must work together to make these places as pleas-
ant and attractive as possible.
Our concern is with damage inflicted unnecessarily, which
could be avoided, by consideration of all aspects of the prob-
lem, not merely those of the highway engineers.
(Testimony of Louis Prentiss, American Roadbuilders Associa-
tion, hearing of the Senate Committee on Public Works, on High-
way Beautification and Scenic Road Program, 1965, pp. 165-173.)
-------
STATUTES AND LEGISLATIVE HISTORY 639
It might seem to the casual observer that little harm would
result in constructing a superhighway along a stream's course
or in straightening a curving section of roadway by crossing
and culverting, or channelizing and relocating a stream, or
dredging a streambed to secure gravel for aggregate or to
straighten and speed up the flow of runoff waters. The effect
that most folk overlook is the great damage that accrues from
violent disruption of the aquatic habitat.
I think engineers, biologists, everyone working with re-
sources of one kind or another, seek public approval, and
want to do the best job they can. They often have to persuade
some people to look at other values. This is essentially what
we are trying to do here, to provide a basic force on the
highway engineers and builders to consider these matters se-
riously so we will have a harmonious balance.
[p. 62]
(Testimony of Richard Stroud, Sport Fishing Institute, hear-
ings of the Senate Committee on Public Works on the Highway
Beautification and Scenic Road Program, 1965, pp. 438-455.)
Soil erosion control
The Committee on Public Works, through the activities of
its Subcommittee on Air and Water Pollution, has become
increasingly concerned with siltation as a form of water pol-
lution. Suburban home builders and highway builders are
among the worst sources of this form of pollution, and yet
government, whether Federal, State, or local, can hardly im-
pose control measures on the private construction industry
when it ignores prudent soil erosion control measures within
its own area of responsibility. The committee therefore urges
the Secretary not only to implement the provisions of the
committee amendment, but also to take steps to minimize the
time in which unsurfaced highway construction projects are
subject to the erosion of wind and water.
(Federal-aid Highway Act of 1966, S. Rept. 89-1410, p. 38.)
Preservation of parklands
[It is] the national policy of the Federal-aid highway pro-
grams to preserve Federal, State, and local parklands and
historic sites and the beauty and value of such sites. The
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640 LEGAL COMPILATION—GENERAL
secretary is directed not to approve any Federal-aid highway
project which requires the use of such lands unless (1) there
is no feasible alternative to such use, and (2) the project
plans include all possible provisions to minimize harm to af-
fected parkland and historic sites. The committee recom-
mends that this policy be extended to include wildlife refuge
areas as well.
(Ibid.)
The committee is firmly committed to the protection of vital
parklands, parks, historic sites, and the like. We would em-
phasize that everything possible should be done to insure
their being kept free of damage or destruction, by reason of
highway construction. The committee would, however, put
equal emphasis on the statutory language which provides that
in the event no feasible and prudent alternative exists, that
efforts be made to minimize damage. To that end, the amend-
ment contained in section 114 of S. 3418, as reported, which
would expand the definition of "construction costs," should be
helpful.
The committee would further emphasize that while the
areas sought to be protected by section (4) (f) of the Depart-
ment of Transportation Act and section 138 of title 23 are
important, there are other high priority items which must
also be weighed in the balance. The committee is extremely
concerned that the highway program be carried out in such a
manner as to reduce in all instances the harsh impact on
people which results from the dislocation and displacement by
reason of highway construction. Therefore, the use of park
lands properly protected and with damage minimized by the
most sophisticated construction techniques is to be preferred
to the movement of large numbers of people.
(Federal-aid Highway Act of 1968, S. Kept. 90-1340, pp.
18-19.)
[p. 53]
Urban Impact of Highways
During 1967 the committee reviewed Federal policy relating to
urban highway planning, location, and design.
* * * Most people realize how important highways are to
the continued social and economic development of our Nation.
Highways have proven to be one of the great contributors to
our system of communication, as well as transportation.
When people are able to move freely, safely, and conveniently
-------
STATUTES AND LEGISLATIVE HISTORY 641
from place to place, the resulting exchange of information,
goods, and services works to the benefit of the entire national
community.
We hope through these hearings to come to an understand-
ing of what is being done and what can be done in urban
highway construction to make highways a force for improved
environment rather than as a factor which accentuates the
already existing elements of decay, disruption, and displace-
ment.
(Opening statement at hearings of the Senate Committee on
Public Works, on Urban Highways, 1967, Pt. 1, pp. 1-5.)
First, we must apply to all capital improvement programs a
full accounting of their social and environmental costs and
build into all of these programs the means of meeting these
costs;
And second, we must design all capital improvements to
serve more than a single purpose so that full social and envi-
ronmental benefit is extracted from such public investments.
The application of these two principles to the highway pro-
gram, I believe, is clear. The cost accounting applied to urban
highways until now has been deficient in that the ledger
shows the costs of the program only in terms of acquisition,
design, and construction. It does not show such real and tan-
gible costs as the additional street and storage capacity re-
quired at points of egress; the taking of land from the tax
rolls; the dislocation of the people in the highway's path; the
reduction in value of adjacent property, the division and dis-
ruption of neighborhoods stemming from insensitive location;
and the visual blight resulting from insensitive design.
I believe, and I will return to the point, that the highway
program should include all the costs of building an urban
highway, including those that I have itemized, and pay a fair
share of these costs. To put it another way, I believe that the
highway program, and the highway user, should meet the
[p. 54]
consequences of the powerful and potentially disruptive act of
highway building in the city.
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642 LEGAL COMPILATION—GENERAL
(Testimony of William Slayton, Urban America, at hearings of
the Senate Committee on Public Works, on Urban Highways,
1967, Pt. 1, pp. 5-21.)
We had to take available published data, much of it very
primitive indeed, but I think any examination clearly must
include not only factors of physiographic and slopes and so
on, bridge crossings points, but really must include social
factors and resource values too, and the development I think
of a humane and civilized route selection method will concen-
trate I think not on engineering considerations but matters of
man, institution, and resource values.
(Testimony of Ian McHarg, University of Pennsylvania, at
hearings of the Senate Committee on Public Works, on Urban
Highways, 1967, Pt. 1, p.61.)
In the view of the committee, the emphasis of the Federal
Highway Administration on the development of multiple land
and air rights use, as an integral part of urban highway
planning design, is well placed. We encourage the Department
of Transportation, the Federal Highway Administration, and
individual State highway departments to give continued
strong support to this so-called joint development concept.
The significance of the concept's potential value is impres-
sive in terms of savings to the public, of more productive land
use in densely populated or highly concentrated urban areas,
and of prevention of haphazard development along the high-
way right-of-way.
The public saves from joint development because, on its
behalf, the highway department eliminates costly severance
damages associated with acquiring a highway right-of-way
through partial takings of land. Instead, the parcels are ac-
quired in their entirety for fair price, and the unused por-
tions either developed or sold for development.
(Federal-aid Highway Act of 1968, S. Kept. 90-1340, p. 8.)
Urban highway planning
There is almost universal agreement on the need to ap-
proach the complexities of urban highway planning and de-
velopment with all the professional and scientific expertise
available. For too long, highways were designed, located, and
constructed as single purpose projects. They were built to
serve the needs of traffic and, in many cases, without regard
to their disruptive effects on urban environment. Use of joint
urban development as well as other techniques has done much
-------
STATUTES AND LEGISLATIVE HISTORY 643
to correct the situation. The committee believes that improve-
ment in the overall coordination of highway projects is taking
place.
It should produce the basic mechanics needed, to provide a
better evaluation of urban transportation needs in terms of
social, esthetic, and economic values. It must be pointed out,
[p. 55]
however, that the approach must be classified as experimen-
tal. The committee is also aware that an approach such as
this, will tend to prolong the completion of the Interstate
System while these extensive studies take place.
There is no doubt that the knowledge gained in these ef-
forts, will provide a foundation for new methods and tech-
niques to assist in solving our complex urban transportation
problems.
(Federal-aid Highway Act of 1968, S. Kept. 90-1340, pp.
11-12.)
ECONOMIC DEVELOPMENT
* * * over the years, the steeply sloped Appalachian farms
have remained relatively unproductive and have undergone
severe erosion. The resulting denuded slopes have marred the
scenic beauty of the land, contributed to widespread siltation
of its streams, and have thus impeded the development of the
great potential for recreation and tourism.
Most of the small crop farming now practiced in Appala-
chia is on a marginal basis and too frequently provides only a
bare subsistence living for the small farmer. It is, however,
unrealistic to expect every small Appalachian farmer to give
up his farm immediately—an act which would largely result
in simply transforming rural poverty into urban poverty.
Also, many of the small farmers of the region, especially the
elderly ones, are deeply rooted in the land and prefer to live
out their years on the farm, rather than become public wel-
fare clients in the towns and cities. Thus, a coherent and
equitable Appalachian development program must provide for
restoration of the land under its present inhabitants and ena-
ble them to realize what benefits the land can furnish.
(Appalachian Regional Development Act of 1965, S. Rept.
89-13, p. 11.)
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644 LEGAL COMPILATION—GENERAL
Water resources
An abundant annual rainfall in Appalachia gives the region
a water resource potential that can be found in few other
areas of the country. Unfortunately, this potential has never
been fully realized, and all too often, water acts as a curse
rather than a blessing in Appalachia.
With proper control and management, Appalachia's water
resources can become the region's most precious natural
asset, providing almost unlimited opportunities for recrea-
tional activities and incentives for industrial development
(18).
(Appalachian Regional Development Act of 1965, S. Rept.
89-13, p. 15.)
Mine area restoration
Much of the Appalachian landscape has been ravaged by
the mining of coal. Former practices of both strip mining and
deep mining operations have eroded the hillsides, polluted the
streams, and endangered the lives of thousands of people.
Though present enlightened management practices have made
great progress over former years, the abuses of past coal
[p. 56]
mining practices serve as a major deterrent to industrial and
recreational development in Appalachia.
(Appalachian Regional Development Act of 1965, S. Rept.
89-13, p. 16.)
[p- 57]
TITLE II—ENVIRONMENTAL QUALITY
SECTION 201
This section would cite this title as the Environmental Quality
Improvement Act of 1969 and make certain congressional findings
relative to the national policy set forth in specific statutes for the
enhancement of environmental quality.
SECTION 202
Federal Public Works Activities
This section would require each Federal agency conducting or \
supporting public works activity which affect the quality of the
environment to implement the policies established by the Presi-
dent under this Act.
-------
STATUTES AND LEGISLATIVE HISTORY 645
SECTION 203
Office of Environmental Quality
This section would establish in the Executive Office of the Presi-
dent an Office of Environmental Quality.
SECTION 204 ADVISORY COMMITTEES
This section would direct that an advisory committee be estab-
lished having a broad range of concern of population growth
and environmental quality and planning for the future.
SECTION 205
This section would authorize appropriations to carry out the
purposes of this title.
[p. 77]
1.3a(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 91-940, 91st Cong., 2d Sess. (1970)
WATER QUALITY IMPROVEMENT ACT OF 1970
MARCH 24, 1970.—Ordered to be printed
Mr. FALLON, from the committee of conference, submitted the
following
CONFERENCE REPORT
[To accompany H.R. 4148]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the Senate to the bill (H.R. 4148) to
amend the Federal Water Pollution Control Act, as amended, and
for other purposes, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the amendment
of the Senate to the text of the bill and agree to the same with an
amendment as follows:
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646 LEGAL COMPILATION—GENERAL
In lieu of the matter proposed to be inserted by the Senate
amendment insert the following:
[p-l]
TITLE II—ENVIRONMENTAL QUALITY
Short Title
Sec. 201. This title may be cited as the "Environmental Quality
Improvement Act of 1970."
Findings, Declarations, and Purposes
Sec. 202. (a) The Congress finds—
(1) that man has caused changes in the environment;
(2) that many of these changes may affect the relationship
between man and his enviornment; and
(3) that population increases and urban concentration con-
tribute directly to pollution and the degradation of our environ-
ment.
(b) (1) The Congress declares that there is a national policy for
the environment which provides for the enhancement of environ-
mental quality. This policy is evidenced by statutes heretofore
enacted relating to the prevention, abatement, and control of envi-
ronmental pollution, water and land resources, transportation, and
economic and regional development.
(2) The primary responsibility for implementing this policy
rests with State and local governments.
(3) The Federal Government encourages and supports imple-
mentation of this policy through appropriate regional organiza-
tions established under existing law.
(c) The purposes of this title are—
(1) to assure that each Federal department and agency
conducting or supporting public works activities which affect
the environment shall implement the policies established
under existing law; and
(2) to authorize an Office of Environmental Quality,
which, not withstanding any other provision of law, shall
provide the professional and administrative staff for the
Council on Environmental Quality established by Public Law
91-190.
[p. 25]
-------
STATUTES AND LEGISLATIVE HISTORY 647
Office of Environmental Quality
Sec. 203. (a) There is established in the Executive Office of the
President an office to be known as the Office of Environmental
Quality (hereafter in this title referred to as the "Office"). The
Chairman of the Council on Environmental Quality established
by Public Law 91-190 shall be the Director of the Office. There
shall be in the Office a Deputy Director who shall be appointed
by the President, by and with the advice and consent of the
Senate.
(b) The compensation of the Deputy Director shall be fixed by
the President at a rate not in excess of the annual rate of com-
pensation payable to the Deputy Director of the Bureau of the
Budget.
(c) The Director is authorized to employ such officers and em-
ployees (including experts and consultants) as may be necessary
to enable the Office to carry out its functions under this title and
Public Law 91-190, except that he may employ no more than ten
specialists and other experts without regard to the provisions of
title 5, United States Code, governing appointments in the com-
petitive service, and pay such specialists and experts without
regard to the provisions of chapter 51 and subchapter HI of chap-
ter 53 of such title relating to classification and General Schedule
pay rates, but no such specialist or expert shall be paid at a rate
in excess of the maximum rate for GS-18 of the General Schedule
under section 5332 of title 5.
(d) In carrying out his functions the Director shall assist and
advise the President on policies and programs of the Federal
Government affecting environmental quality by—
(1) providing the professional and administrative staff
and support for the Council on Environmental Quality estab-
lished by Public Law 91-190;
(2) assisting the Federal agencies and departments in ap-
praising the effectiveness of existing and proposed facilities,
programs, policies, and activities of the Federal Government,
and those specific major projects designated by the Presi-
dent which do not require individual project authorization by
Congress, which affect environmental quality;
(3) reviewing the adequacy of existing systems for monitor-
ing and predicting environmental changes in order to achieve
effective coverage and efficient use of research facilities and
other resources;
-------
648 LEGAL COMPILATION—GENERAL
(4) promoting the advancement of scientific knowledge of
the effects of actions and technology on the environment and
encourage the development of the means to prevent or reduce
adverse effects that endanger the health and well-being of
man;
(5) assisting in coordinating among the Federal depart-
ments and agencies those programs and activities which
affect, protect, and improve environmental quality;
(6) assisting the Federal departments and agencies in the
development and interrelationship of environmental quality
criteria and standards established through the Federal Gov-
ernment;
(7) collecting, collating, analyzing, and interpreting data
and information on environmental quality, ecological re-
search, and evaluation.
(e) The Director is authorized to contract with public or private
agencies, institutions, and organizations and with individuals
without regard to sections 3648 and 3709 of the Revised Statutes
(31 U.S.'C. 529; 41 U.S.C. 5) in carrying out his functions.
[p. 26]
Report
Sec. 204. Each Environmental Quality Report required by Pub-
lic Law 91-190 shall, upon transmittal to Congress, be referred
to each standing committee having jurisdiction over any part
of the subject matter of the Report.
Authorization
Sec. 205. There are hereby authorized to be appropriated not to
exceed $500,000 for the fiscal year ending June 30, 1970, not to
exceed $750,000 for the fiscal year ending June 30, 1971, not to
exceed $1,250,000 for the fiscal year ending June 30, 1972, and
not to exceed $1,500,000 for the fiscal year ending June 30, 1973.
These authorizations are in addition to those contained in Pub-
lic Law 91-190.
JOHN A. BLATNIK,
ROBT. E. JONES,
JIM WRIGHT,
GEORGE H. FALLON,
WILLIAM C. CRAMER,
WM. HARSHA,
JAMES R. GROVER, JR.,
Managers on the Part of the House.
-------
STATUTES AND LEGISLATIVE HISTORY 649
EDMUND S. MUSKIE,
JENNINGS RANDOLPH,
BIRCH BAYH,
JOSEPH M. MONTOYA,
J. CALEB BOGGS,
JOHN SHERMAN COOPER,
HOWARD BAKER,
Managers on the Part of the Senate.
[p. 27]
ENVIRONMENTAL QUALITY
Senate amendment
Title II of the Senate amendment, consisting of five sections,
relates to environmental quality.
Section 201 would cite this title as the Environmental Quality
Improvement Act of 1969 and make certain congressional findings
relative to the national policy set forth in specific statutes for the
enhancement of environmental quality.
Section 202 would require each Federal agency conducting or
supporting public works activity which affect the quality of the
environment to implement the policies established by the Presi-
dent under this Act.
Section 203 would establish in the Executive Office of the Presi-
dent an Office of Environmental Quality.
Section 204 would direct that an advisory committee be estab-
lished having a broad range of concern of population growth and
environmental quality and planning for the future.
Section 205 would authorize appropriations to carry out the
purposes of this title.
House bill
The House bill contains no comparable provision.
Conference substitute
Title II of the conference substitute relates to environmental
quality.
Section 201 cites the title as the "Environmental Quality Im-
provement Act of 1970."
Section 202 makes certain congressional findings relating to the
national policy set forth in existing statutes relating to environ-
mental pollution, control, water, and land resources, transporta-
tion, and economic and regional development. It also finds that the
primary responsibility for implementing this national policy rests
-------
650 LEGAL COMPILATION—GENERAL
with the State and local governments, and encourages the imple-
mentation of the policy through regional organizations.
The section declares that the purposes of the title are to assure
that existing Federal departments and agencies conducting or sup-
porting public works activities affecting the environment shall
implement the policies established under existing law and to au-
thorize an Office of Environmental Quality.
Section 203 establishes in the Executive Office of the President
an Office of Environmental Quality. The Chairman of the Council
on Environmental Quality is to be the Director of this Office. A
Deputy Director is authorized to be appointed by the President by
and with the advice and consent of the Senate, and his compensa-
tion is provided for. The Director is authorized to employ neces-
sary personnel. These personnel would be employed in accordance
with the general classification laws and paid in accordance with
the General Schedule, except that authority is granted for the
employment of not to exceed ten specialists and experts without
regard to the provisions of law governing appointment and pay-
ment in the competitive service, with the further condition that no
such specialist or expert shall be paid at a rate above that of the
maximum for GS-18. The conferees expect a report to the Public
Works Committees from the Council on Environmental Quality
within 90 days after the date of enactment of this Act on their
staff needs, in terms of numbers, grades, and functions of tempo-
rary and permanent staff personnel.
In carrying out his functions, the Director shall assist and ad-
vise the President on policies and programs of the Federal Gov-
ernment affecting environmental quality by—
(1) providing the professional and administrative staff and
support for the Council on Environmental Quality;
(2) assisting the Federal agencies and departments in ap-
praising the effectiveness of existing and proposed facilities,
programs, policies, and activities of the Federal Government
which affect environmental quality as well as those specific
major projects designated by the President which do not re-
quire individual project authorization by Congress and which
affect environmental quality;
(3) reviewing the adequacy of existing systems for moni-
toring and predicting environmental changes in order to
achieve effective coverage and efficient use of research facili-
ties and other resources;
(4) promoting the advancement of scientific knowledge of
the effects of actions and technology on the environment and
-------
STATUTES AND LEGISLATIVE HISTORY 651
encourage the development of the means to prevent or reduce.
adverse effects that endanger the health and well-being of
man;
[P- 63]
(5) assisting in coordinating among the Federal depart-
ments and agencies those programs and activities which af-
fect, protect, and improve environmental quality;
(6) assisting the Federal departments and agencies in the
development and interrelationship of environmental quality
criteria and standards established through the Federal Gov-
ernment ;
(7) collecting, collating, analyzing, and interpreting data
and information on environmental quality, ecological research
and evaluation.
The Director in carrying out his functions is authorized to con-
tract with public or private agencies, institutions, and organiza-
tions and individuals.
Section 204 provides for referral of the Environmental Quality
Report to each standing committee of Congress having jurisdic-
tion over any part of its subj ect matter.
Section 205 authorizes $500,000 for fiscal year 1970, $750,000
for fiscal year 1971, $1,250,000 for fiscal year 1972, and $1,500,000
for fiscal year 1973, in addition to the existing authorizations.
JOHN A. BLATNIK,
ROBT. E. JONES,
JIM WRIGHT,
GEORGE H. FALLON,
WILLIAM C. CRAMER,
WM. HARSHA,
JAMES R. GROVER, JR.,
Managers on the Part of the House.
[p. 64]
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652 LEGAL COMPILATION—GENERAL
1.3a(4) CONGRESSIONAL RECORD
1.3a(4)(a) Vol. 115 (1969), April 16: Passed House, p. 9259;
[No Relevant Discussion on Pertinent Section]
1.3a(4)(b) Vol. 115 (1969), Oct. 7: Amended and passed Senate,
pp. 28952-28954, 28956-28957, 28962, 28967, 28969, 28972;
TITLE II—ENVIRONMENTAL QUALITY
SEC. 201. This title may be cited as the
"Environmental Quality Improvement Act of
1969".
FINDINGS, DECLARATIONS, AND PURPOSES
SEC. 202. (a) The Congress finds—
(1) that in the pursuit of social and eco-
nomic advancement man has caused changes
in the environment;
(2) that the degree of such chances en-
dangers a harmonious relationship between
man and his environment;
(3) that population increases and urban
concentration contribute directly to pollu-
tion and the degradation of our environment,
increasing the severity of the physical, social,
psychological, and economic problems of our
society; and
(4) that changes in the environment should
be restricted, insofar as possible, to avoid
adverse effects on man, other species and the
environment itself.
[p. 28952]
(b) The Congress declares—
(1) that there is a national policy for the
environment which provides for the en-
hancement of environmental quality, which
is enunciated in the—
(A) Federal Water Pollution Control Act;
(B) Clean Air Act;
(C) Solid Waste Disposal Act;
(D) title 23 of the United States Code, re-
lating to highways;
(E) Omnibus Rivers and Harbor and Flood
Control Acts;
(F) Appalacian Regional Development Act
of 1965;
(G) Public Works and Economic Develop-
ment Act of 1965; and
(H) Tennessee Valley Authority Act of
1933;
(2) that the primary responsibility for im-
plementing this policy rests with State and
local governments;
(3) that the Federal Government shall
encourage and support implementation of
this policy through appropriate regional or-
ganizations; and
(4) that Federal and federally assisted pub-
lic works programs and projects shall, in all
instances, be developed and implemented in
a manner consistent with the enhancement
of environmental quality.
(c) The purposes of this title are—
(1) to provide for the development of cri-
teria and standards to assure the protection
and enhancement of environmental quality
in all Federal and federally assisted projects
and programs; and
(2) to authorize and to provide staff for
an Office of Environmental Quality.
FEDERAL PUBLIC WORKS ACTIVITIES
SEC. 203. Each Federal department or agency
conducting or supporting public works activi-
ties which affect the environment shall imple-
ment the policies established by the President
pursuant to this title.
OFFICE OF ENVIRONMENTAL QUALITY
SEC. 204. (a) There is established in the
Executive Office of the President an office to
be known as the Office of Environmental
Quality (herein referred to *a the "Office").
There shall be in the Office a Director and a
Deputy Director who shall be appointed by
the President, by and with the advice and
consent of the Senate.
(b) The compensation of the Director and
the Deputy Director shall be fixed by the
President at a rate not in excess of the an-
nual rate of compensation payable to the
Director and the Deputy Director of the Bu-
reau of the Budget.
(c) The Director is authorized to employ
such officers and employees as may be neces-
sary to enable the Office to carry out its func-
tions under this title.
(d) In carrying out the provisions of this
section the Director shall—
(1) assist and advise the President on
policies and programs of the Federal Govern-
ment affecting environmental quality;
(2) provide staff and support for any cabi-
net level council or committee established by
the President to coordinate Federal activities
which affect the environment;
(3) review and appraise existing and pro-
posed projects, facilities, programs, policies,
-------
STATUTES AND LEGISLATIVE HISTORY
653
and activities of the Federal Government
which affect environmental quality and make
recommendations thereon;
(4) review the adequacy of existing sys-
tems for monitoring and predicting environ-
mental changes in order to achieve effective
coverage and efficient use of research facili-
ties and other resources;
(5) promote advancement of scientific
knowledge of the effects of actions and tech-
nology on the environment and encourage
the development of the means to prevent or
reduce adverse effects that endanger the
health and well-being of man;
(6) develop proposed policies and programs
to protect and enhance environmental quality;
(7) recommend priorities with respect to
problems involving environmental quality;
(8) assure evaluation of new and changing
technologies for their potential effects on
the environment prior to their implementa-
tion;
(9) review and comment on the coordination
of the programs and activities of Federal
departments and agencies which affect, pro-
tect, and improve environmental quality;
(10) review and comment on the develop-
ment and interrelationship of environmental
quality criteria and standards established
through the Federal Government; and
(11) consult with and advise representa-
tives of State and local governments and
assist the President in efforts to achieve
environmental quality in the community of
nations.
(e) In carrying out the provisions of this
section, the Director is authorized to con-
tract with public or private agencies, institu-
tions, and organizations, and with individ-
uals, without regard to sections 3648 and 3709
of the Revised Statutes (31 U.S.C. 629; 41
U.S.C. 5) for research and surveys regarding
any potential or existing problem of environ-
mental quality.
(f) In carrying out the provisions of this
title the Director shall—
(1) not later than six months after the
effective date of this Act and not later than
January 10 of each calendar year beginning
after such date, report to the Congress on
measures taken toward implementing the
purpose and intent of this title;
(2) collect, collate, analyze, and interpret
data and information on environmental qual-
ity and issue reports thereon, as he deems
appropriate; and
(3) organize and convene a biennial forum
on current problems and issues concerning
environmental quality, population, and the
future, and publish the proceedings thereof,
and participants in such forums shall be se-
lected from among representatives of various
State, interstate, and local government agen-
cies, of public or private interests concerned
with population growth, environmental qual-
ity, and planning for the future, and of
other public and private agencies demonstrate
ing an active interest, as well as other indi-
viduals in the fields of population, biology,
psychology, medical sciences, social sciences,
ecology, agriculture, economics, law, engineer-
ing, and political science who have demon-
strated competence with regard to problems
of the environment.
ADVISORY COMMITTEES
SEC. 205. (a) In order to obtain assistance
and independent advice in the development
and implementation of the purposes of this
title, the Director of the Office of Environ-
mental Quality shall from time to time es-
tablish advisory committees. Committee mem-
bers shall be selected from among representa-
tives of various State, interstate, and local
government agencies, of public or private
interests concerned with population growth,
environmental quality, and planning for the
future, and of the other public and private
agencies demonstrating an active interest, as
well as other individuals in the fields of popu-
lation, biology, medical sciences, psychology,
social sciences, ecology, agriculture, econom-
ics, law, engineering, and political science
who have demonstrated competence with re-
gard to problems of the environment.
(b) The members of the advisory com-
mittees appointed pursuant to this title
shall be entitled to receive compensation at a
rate to be fixed by the Director, but not ex-
ceeding $100 per diem, including traveltime,
and while away from their homes or regular
places of business they may be allowed travel
expenses, including per diem in lieu of sub-
sistence, as authorized by section 5705 of
title 5 of the United States Code for persons
in the Government service employed inter-
mittently.
AUTHORIZATION
SEC. 206. There are hereby authorized to be
appropriated for the fiscal year beginning July
1, 1969, and for each of five succeeding fiscal
years, such amounts as may be necessary for
the purposes of this title.
[p. 28953]
Mr. MUSKIE.
Title II of S. 7 provides for mean-
ingful consideration of the environ-
mental policies set by the Federal
Water Pollution Control Act, the
Clean Air Act, and the Solid Waste
Disposal Act in all federally supported
public works activities. Other provi-
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654
LEGAL COMPILATION—GENERAL
sions of title II are intended to bring
those environmental policies into all
other programs of the Federal Gov-
ernment.
[p. 28954]
TITLE II
In recent years, and especially since
1963, Congress has developed a strong
policy for the enhancement of environ-
mental quality. This policy is based on
the knowledge that man and his envir-
onment are closely interrelated and
that environmental quality is neces-
sary to the improvement of living
standards for all men—and, indeed,
possibly for the survival of the human
race.
The legislation which has formed
this broad policy has been developed
through the efforts of many congres-
sional committees, including the Sen-
ate Committee on Agriculture, Bank-
ing and Currency, Commerce, Finance,
Government Operations, Interior, La-
bor and Public Welfare, and Public
Works. Participation in this develop-
ment has been broad-based because
the problems of environmental quality
transcend artificial divisions of com-
mittee jurisdiction.
Much of the substantive legislation
in this area has come from the Public
Works Committee and its Subcommit-
tee on Air and Water Pollution. The
committee's work has resulted in the
Clean Air Act of 1963, and the 1965
and 1966 amendments; the Air Qual-
ity Act of 1967; the Water Quality
Act of 1965; the Clean Water Res-
toration Act of 1966; and the Solid
Waste Disposal Act of 1965.
Originally drafted to meet specific
pollution problems which demanded
immediate abatement actions, legisla-
tion from the Public Works Commit-
tee evolved to the point where it is
based on the concept of the preven-
tion of pollution and the enhancement
of the quality of the air, water, and
land environment.
A strong partnership among gov-
ernmental agencies at the Federal,
regional, and State levels is the basis
for this broad strategy. The States
have been delegated the primary re-
sponsibility to protect and enhance
the quality of the environment within
their jurisdictions and—in cooperation
with neighboring States—within river
basins and air sheds common to those
States. Water and air quality stand-
ards are to be adopted, implemented,
and enforced at the State and regional
levels on the basis of criteria pro-
mulgated by the Departments of the
Interior and Health, Education, and
Welfare. The Federal Government has
the responsibility to develop these cri-
teria; to act to set or enforce stand-
ards where States do not fulfill their
obligations; to conduct research to
improve our understanding of envir-
onmental threats and develop new
means of protection; and to protect
the environment in the conduct of its
own activities.
The opportunity to act first has
been given to the States because the
national policy of environmental en-
hancement recognizes the need to in-
volve individual citizens and communi-
ties in any decisions concerning the
environment in which they live. The
best way to put this policy into prac-
tice—to make participation in the de-
cisionmaking process as close to indi-
vidual citizens as possible, within the
guidelines of the criteria.
The committee has emphasized,
however, that the opportunities for
local control are not open-ended. If the
States and regions fail adequately to
carry out their responsibilities under
these sets or are unable to do so, the
Congress has expressly authorized the
Federal agencies administering these
programs to assume the responsibili-
ties.
The States cannot succeed in meet-
ing their obligations without the com-
plete cooperation of all Federal de-
partments and agencies. The Federal
-------
STATUTES AND LEGISLATIVE HISTORY
655
responsibility to protect the environ-
ment in the conduct of its programs
which are not subject to State regula-
tion has often gone unmet. This short-
coming is present in every Federal
department and agency and is in di-
rect conflict with the Nation's envir-
onmental policy and the purposes and
provisions of the legislation which has
developed that policy.
It is clear that there is no one an-
swer to the problem of environmental
regulation of the Federal Govern-
ment's own activities. The committee
believes that it is the responsibility
of each standing committee in Con-
gress to examine carefully the activi-
ties of those departments and agencies
within its jurisdiction and to insist
that the policy of the enhancement of
environmental quality is strictly fol-
lowed.
The Public Works Committee is
committed to reviewing all legislation
and Federal activity under its juris-
diction with these duties in mind and
expects to initiate this review during
this Congress. Furthermore, title II of
S. 7 explicitly requires that all fed-
erally supported public works projects
and programs be planned, developed,
and administered with full considera-
tion of their impact on our air, water,
and land and with strict adherence
to the national policy of environmental
enhancement.
More and more public officials and
individual citizens share this concern
of the committee and have recognized
the need for the integration of envir-
onmental consideration in all pro-
grams and policies of the Federal Gov-
ernment. We are confronted with
problems of accelerating environmen-
tal deterioration on the one hand,
and the inadequacies of our public and
private institutions to deal with these
problems on the other.
The Public Works Committee has
focussed on several measures designed
to remedy these inadequacies and has
concluded that the problems of man-
agement are even more urgent than
the problems of organization. There-
fore, the committee has proposed in
title II an Office of Environmental
Quality in the Office of the President.
This office would have the manage-
ment capability to bring coherence
and consistency into the environmen-
tal activities of the Federal Govern-
ment. The committee has given care-
ful study to other proposals and has
concluded that an independent envir-
onmental staff in the Executive Office
of the President is crucial to the effec-
tive coordination and administration
of all Federal programs in line with
the Nation's policy of environmental
enhancement.
The Office of Science and Technol-
ogy presently supplies the staff for
the President's Cabinet Council on
Environmental Quality. Unfortunate-
ly, the Office of Science and Technol-
ogy has wide-spread responsibilities,
is thinly staffed, and must look to the
departments and agencies of the Fed-
eral Government for staff assistance.
Thus, the advice and assistance the
President receives concerning the pro-
grams and policies of the Federal
agencies comes from the agencies
themselves. No matter how well in-
tentioned, this arrangement will not
produce a critical and independent re-
view of Federal departments and
agencies.
No Federal department or agency
which is not primarily oriented to en-
vironmental matters can he expected
to have either the sufficient expertise
or the proper perspective to evaluate
their own programs satisfactorily by
themselves. This assumption is the
basis for both section 16 of title I and
the provision establishing the Office
of Environmental Quality in title II.
The most difficult task facing the
President and the Congress in the area
of environmental quality is the review
and analysis of the administration of
the environmental programs and poli-
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656
LEGAL COMPILATION—GENERAL
cies of the Federal Government, a
function which should be coordinated
from the Office of the President. The
committee strongly feels that the Pres-
ident requires a competent, independ-
ent staff, not affiliated with any other
Federal agency, to accomplish this
purpose.
The Office of Environmental Quality
would provide the independent staff
required by the new Cabinet Level
Council and would make available to
the President the professional com-
petence to review and analyze all pro-
grams and policies relating- to the air,
water, and land environment. The of-
fice would also provide reports on en-
vironmental issues to the appropriate
[p. 28956]
committees of Congress, the Council,
and the public.
The bill reported by the committee
does not tell the President how to or-
ganize his administration to deal with
environmental problems. It provides
him with staff for whatever arrange-
ment he determines most appropriate
to his approach to the administration
of the executive branch.
One of the principal advantages of
this legislation is the recognition that
progress can be made in enhancing
the quality of the environment only
if the national policy has the full sup-
port of both the President and the
Congress. The Office of Environmen-
tal Quality should increase the ca-
pacity of the President to support
that policy.
Mr. President, I conclude what may
appear to be a lengthy analysis of the
bill, but which, in fact, in the light
of its broad coverage, is a brief anal-
ysis of the bill.
I would like, at this time, to express
my appreciation to all members of
the committee, but specifically, to the
distinguished Senator from West Vir-
ginia (Mr. RANDOLPH), chairman of
the full committee, the distinguished
Senator from Kentucky (Mr. COOPER) ,
the ranking Republican member of
the full committee, and my good
friend and longstanding right hand
in this fight against pollution, the dis-
tinguished Senator from Delaware
(Mr. BOGGS), for the excellent coop-
eration which we have had.
I must say that our experience with
this bill has been one of the most reas-
suring that I have had in my years in
the Senate and in my years of deal-
ing with this kind of legislation.
We had long hearings, but, more
than that, we had extensive executive
sessions beginning in March and con-
tinuing through June and July—ses-
sions which were attended most of the
time by the full membership of the
committee, all of whom participated
in the discussion of problems which
surfaced in an effort to come to grips
with them and solve them soundly,
from the legislative point of view,
without regard to partisan considera-
tions. I do not believe there is a part-
isan comma in the bill. It reflects the
work of members on both sides of the
aisle, and for them I would like to
express my appreciation, through Sen-
ator BOGGS, to all his colleagues on
the Republican side of the committee.
[p. 28957]
Mr. RANDOLPH.
*****
Throughout our entire deliberations
on S. 7, the Committee on Public
Works showed a single strong thread,
which was even through the entire
fabric of recent legislation by the
committee. This thread is the commit-
tee concern for maintaining and en-
hancing the quality of our environ-
ment.
The heart of our concern is the
growing awareness that we can no
longer fail to take into consideration
the effects of our activities on the total
environment. As the President's Sci-
ence Advisory Committee report of
1965, "Restoring the Quality of our
Environment," so aptly pointed out:
-------
STATUTES AND LEGISLATIVE HISTORY
657
The public should come to recognize in-
dividual rights to quality of living as expressed
by the absence of pollution, as it has come to
recognize rights to education, to economic
advance, and to public recreation . . . There
should be no "right" to pollute.
It is this awareness that brought
about title II of the Water Quality
Act of 1969. Title II weaves together
the many strands of environmental
quality which make up the pattern for
a national policy for environmental
quality, to insure that Americans now
and in the future have that right to
clean water, clean air, clean land,
and freedom from physical and psy-
chological insults of all kinds. This
concept, I would point out, was em-
bodied originally in S. 2391 which was
cosponsored by myself and 41 of our
colleagues in the Senate early this
year.
Title II of S. 7 provides for more
effective coordination of Federal air
quality, water quality, and solid waste
disposal programs, for the considera-
tion of environmental quality in all
public works programs and projects,
and for the coordination of all Fed-
eral research programs which improve
knowledge of environmental modifica-
tions resulting from increased popula-
tion and urban concentration.
What we have come to realize, of
course, is that environmental quality
goes beyond water and air pollution
and solid waste management. Assur-
ance of environmental quality means
that every man, woman, and child has
the opportunity to live in a world
which will in no way insult his body,
mind, or spirit.
It is a sad fact that nearly all of
the important and critical environ-
mental problems—air and water pol-
lution, the growing pervasiveness of
pesticides, mounting solid wastes, the
effects of smoking—have emerged as
serious health problems only after a
series of crises have crystallized pub-
lic attention. Each of these problems
has been an undesired and unfore-
seen byproduct of goods or services
which society has wanted. But it has
been our habit to take action only
after a crisis develops, rather than to
prevent its occurrence. We fail to heed
the old saying that an ounce of pre-
vention is worth a pound of cure.
In the past we have relied on what
has been termed the "natural assimi-
lative capacity" of nature to reprocess
or destroy most of the waste of our
civilization, with little concern for its
long-term capability to perform this
function. Only recently have we be-
come acutely aware of the fact that
we are exceeding nature's ability and
capacity to reprocess the kinds and
qualities of wastes which are being
produced by modern technology.
The majority of the Nation's
streams and rivers are no longer able
to support the life which has for eons
processed the wastes of man and the
animals and plants upstream. Experi-
ences in the late 1950's and early
1960's with nondegradable detergents
dramatically underscored the lack of
planning and understanding of our
waste systems and the effects of our
newly developed materials on vital
water resources.
The urgency of finding new solu-
tions to the problems of water pollu-
tion is apparent when we reflect that
by 1980 this Nation will be produc-
ing enough sewage and other water-
borne wastes to consume all of the
oxygen of all the flow in dry weather
in the 22 river systems of the United
States. At the same time the need
for fresh, clean water will increase
from our present consumption rate of
370 billion gallons per day to 600
billion gallons a day. The supply of
fresh water is limited. The total daily
flow in the United States is about
1,100 billion gallons. By the year 2000,
because of population growth and in-
dustrial expansion, our withdrawal
rate will be almost four-fifths of the
total available supply, and we will re-
turn approximately two-thirds of the
-------
658
LEGAL COMPILATION—GENERAL
total available supply with some de-
gree of waste.
Air pollution loomed as a major
problem in 1963, when 809 people died
in one air pollution catastrophe in
New York City, and the Nation sud-
denly awoke to the perils of tainted
air.
The illusion that man has conquered
nature through science and technology
has been abruptly challenged by na-
ture herself. Only slowly are we be-
ginning to realize that it is not the
conquest of nature that we seek to
achieve, but a harmonious balance
with nature through which we may
enhance the quality of human life.
There will never be—on a nation-
wide basis—absolutely clean air or
pristine pure water. There is a neces-
sary and acceptable amount of each
pollutant that society will understand
and accept. Because of varying uses
of land and air and water, the right
amount of pollution—the desirable
compromise—is not the same every-
where. Some communities may deter-
mine the economic and industrial de-
velopment is more important than
fishing, and that some pollution of
their streams is acceptable. Others,
like the untouched wilderness areas
of the great Northwest, will find that
low tolerances—but not impossibly
low—will be the goal for recreational
areas.
The broad problems of solid waste
management are just now being rec-
ognized as a crisis of gigantic propor-
tions. Americans throw away billions
of tons of solid materials each year.
Prom our homes and offices each per-
son contributes almost 5% pounds of
garbage and miscellaneous trash every
day to our overstrained and underde-
signed refuse system. The cost is more
than $4.5 billion a year. And the fig-
ure will reach 8 pounds per person a
day by 1980. Added to that, industrial
solid waste contributes another 3.2
pounds per person per day to the en-
vironment; agricultural wastes from
animal feedlots, packinghouses, lum-
bering operations, and related indus-
tries produce another 30 pounds per
person; and 7 million automobiles are
junked each year.
The thrust of these remarks is to
remind my colleagues that what is
important is not the isolated pollution
problem nor the quick solution to an
immediate crisis. We are pleased that
S. 7 solves some of the problems which
we have recently experienced. It clari-
fies and tightens Federal regulations
over water pollution generally and
provides rigid penalties for operations
like the disastrous oil well blow-out
that spilled oil on the beaches around
Santa Barbara.
What we must plan for, however, is
environmental quality for the future.
Today, the Committee on Public
Works is working with an official ad-
visory panel of experts—scientists,
engineers, and specialists from a va-
riety of disciplines—to help determine
the problems of environmental de-
gradation before they become prob-
lems. We are assessing the impact of
land mismanagement from highway
construction, from urban redevelop-
ment, from mining, or from sanitary
landfills. We are looking at the ques-
tion of biological imbalances created
by dredging, thermal pollution, pesti-
cides, and air pollution. And we are
probing problems connected with flood-
ing and dam construction, the effects
of building reservoirs, and the use of
nuclear energy for power or construc-
tion.
I am aware that the solutions ta
many of these problems do not now
exist and that the search for tech-
nology—economically feasible technol-
ogy—may be a costly one. It is for
this reason that I have, as chairman
of the Committee on Public Works,
emphasized so heavily the importance
of Federal coordination and support
for research and development in all
of these areas.
-------
STATUTES AND LEGISLATIVE HISTORY
659
But the problem is not one of re-
search in itself. Nor can it rest solely
on the Federal Government. Industry,
the States and local governments must
take a big share in the solution, as
their share in the product of a clean
and wholesome environment will be
large.
Today, society places higher prior-
ities on the values of our physical en-
vironment, and these priorities must
be incorporated in the technology that
serves us. Americans are ready, I be-
lieve, to improve the environment, and
in so doing we will build a better so-
ciety for ourselves and for future
generations.
S. 7—and especially title II—will
provide the basis for the long-term en-
hancement of the quality of the en-
vironment for which we are all striv-
ing. I urge the speedy adoption of
this legislation.
*****
[p. 28962]
Mr. RANDOLPH.
It is essential, in addition, that
America have a coordinated policy
for the quality of the environment—
a policy which will insure not only
cleaner water, cleaner air, and free-
dom from solid wastes, but will pro-
vide future generations of Americans
with the type of environment neces-
sary for good health and well-being.
Title II, entitled the "Environmen-
tal Quality Improvement Act of 1969,"
simply and succintly states that:
There is a national policy for the environ-
ment which provides for the enhancemenl
of environmental quality.
We have come to the point where
we can no longer ignore the conse-
quences of our actions in the name of
economy. Two hundred years ago,
when our country was young and
growing and the population was fairly
well dispersed, we could afford to turn
our backs on the impact of industrial
jollution in favor of building our in-
dustrial might.
Today, we are more than 200 mil-
ion, and will be 320 million by the
year 2000. Today, industries dot every
shore; highways stretch endlessly
across the continent; buildings rise
where there was once only wilderness.
Today, there is little of nature left,
except in isolated patches of hereto-
fore unwanted or undevelopable land.
With pollution at the crisis level—•
air and water pollution, noise pollu-
tion, thermal pollution—and space at
a premium, it is high time that we
squarely face the issue of environ-
mental quality.
Title II of S. 7 intends that all Fed-
eral moneys spent on public works ac-
tivities which affect the environment
would be reviewed and found not to
be detrimental to the environment. It
would establish an Office of Environ-
mental Quality within the Executive
Office to assist and advise the Presi-
dent and to help coordinate Federal
activities affecting the environment.
There can be no question that this
important first step must be taken in
the direction of Federal coordination
of activities involving our natural en-
vironment. We must pledge ourselves
to the upgrading of the quality of
life—all life—on this planet, now and
in the future.
Senator JENNINGS RANDOLPH, chair-
man of the Committee on Public
Works, and the distinguished junior
Senator from Maine (Mr. MUSKIE),
chairman of the Subcommittee on Air
and Water Pollution, deserve the grat-
itude of all Americans for their out-
standing leadership and hard work in
formulating the pending bill which is
a powerful vehicle for the attack
against environmental degradation. I
urge its enactment.
[p. 28967]
-------
660
LEGAL COMPILATION—GENERAL
Mr. COOPER.
*****
I shall discuss the matter very
briefly. S. 7 represents an important
step in response to the public's de-
mand that the degradation of our en-
vironment be halted and its quality
enhanced. S. 7 is a comprehensive
bill with provisions dealing with a
wide range of difficult water pollution
problems. Its provisions relate to near-
ly every aspect of the water envi-
ronment and will affect nearly everj
major industry of our country. In
addition to the water quality provi-
sions, S. 7 incorporates in title II a
timely contribution to the broad issue
of the Federal Government's response
to the quest for environmental quality.
The impact of Federal activities is
clearly great, especially in the area
of public works, and over the years
many statutes, agencies, policies, and
procedures have been created that, if
not running counter to the objective
of environmental quality are at least
inadequate to meet the challenges that
face our environment. Title II will go
a long way toward resolving this para-
dox, and along with other legislation
before Congress offers a program to
update Federal performance. Such an
effort would have great effect beyond
the Federal performance and hope-
fully be duplicated throughout State
and local governments as well as the
private sector.
*****
[p. 28969]
The legislative record from all com-
mittees on both sides of Congress has
given a wealth of information on the
Federal Government, its organization
an$ policies, as they relate to environ-
mental quality. It is obvious there is
extreme fragmentation, there is poor
communication, there is, in fact con-
tradictory authority. For instance, the
Department of the Interior is charged
with and has an extejisive program in
wetland preservation. On the other
hand the Department of Agriculture
has a program, and expends large
imounts of money, for wetland rec-
lamation. These problems have his-
torical components; they have bureau-
cratic components; they have interest
group components, and many others
that all combine to make the Federal
response to environmental quality one
of the most complex problems facing
this Congress.
The Committee on Public Works has
held hearings on many aspects of
environmental quality. It has held
testimony from many agencies of
government concerning their policies,
procedures, and activities. Other com-
mittees such as the Committee on
Interior and Insular Affairs have re-
ceived similar testimony, the Com-
mittee on Commerce, the Committee
on Labor and Public Welfare as well.
On the House side the Committee on
Merchant Marine and Fisheries, the
Committee on Science and Astronau-
tics, the Committee on Government
Operations, have all received testi-
mony indicating the depth of this
problem.
From all of this testimony, a syn-
thesis or integration can be made and
an attempt begun that will enable us
to reverse the trend of fragmentation,
of overlap, of poor information ex-
change that now prevails. Title II of
S. 7 represents one attempt to learn
from all of the experience that is now
available to us. It provides that there
shall be established in the executive
branch in the Office of the Presidency
an Office of Environmental Quality.
This Office is charged with reviewing
the Federal operation and making
recommendations to the President to
implement through his Council of En-
vironmental Quality, a Cabinet-level
action organization designed to imple-
ment Presidential decisions and policy.
It is absolutely essential that we
avoid placing this kind of responsi-
bility in an agency or office of his-
-------
STATUTES AND LEGISLATIVE HISTORY
661
torical orientation and personnel
staffing that would preclude it from
operating efficiently in this area. It re-
quires an office in the Executive Of-
fice of the President because the prob-
lems are found in all agencies and in
all departments, therefore, only with
the perspective 01 the Office of the
Presidency will it be possible to make
the necessary overview and analysis
and the proper recommendations. It
must be an office, too, that includes
staffing of the character that will en-
able it to consider the broad and di-
verse issues involved in environmen-
tal quality.
These are simply not scientific mat-
ters, although there is a scientific
component, they are not simply eco-
nomic matters although there is an
economic component, these are not
simply fiscal matters although there
is a fiscal component; rather these are
problems that demand a new approach
and orientation that can only be
found from a new organization and
cannot be found in any existing ex-
ecutive organization.
Many activities of the Federal es-
tablishment affecting environmental
quality are under the jurisdiction of
the Committee on Public Works. These
include the rivers and harbors activi-
ties of the Corps of Engineers, the
Federal highway program, and of
course much of the economic develop-
ment programs. All of these programs
must be reviewed for their effect on
environmental quality. The Office of
Environmental Quality should help
perform that review. This does not,
however, allow us to escape our re-
sponsibilities and I hope that taking
the policy enunciated in title II the
Committee on Public Works will be-
gin to review the statutory base on
which these operations are made, the
policies and procedures that have
been developed in implementing these
statutes, and of course the end prod-
uct of these activities. It is expected
the Committee on Public Works will
soon begin a review of all activities
within its jurisdiction for an analysis
of the effect the operations have for
environmental quality.
It is submitted that this Office of
Environmental Quality combined with
the President's establishment of a
Council on Environmental Quality
represents a comprehensive program
that will contribute to the develop-
ment of a truly responsive Federal
Government.
Mr. President, I close by saying
that I echo what the distinguished
Senator from Florida (Mr. GURNEY)
has said—that this is a landmark
bill.
Without a quality environment we
will never succeed in developing a
quality of life. It is a first priority of
this Nation, we cannot escape it and
we must face this responsibility. I
would hope that all of my colleagues
share my concern on these issues be-
case the public demands it and the
public deserves it. The matter of en-
vironmental quality goes to each indi-
vidual, rich and poor, white and black.
A deteriorating environment does not
discriminate, it affects us all and
makes all of those problems which we
do face much much more difficult.
When viewed in this light it becomes
urgent that we begin to restore the
quality to our environment and we
must begin now.
[p. 28972]
1.3a(4)(c) Vol. 116 (1970), March 24: Senate agreed to conference
report, pp. 9004-9005; 9009
Mr. COOPER. Mr. President, today
the Senate Members of the conference
bring back to the Senate and ask ap-
proval of a very comprehensive and
-------
662
LEGAL COMPILATION—GENERAL
excellent water pollution control bill,
H.R. 4148. It was a difficult confer-
ence, because of the complex nature
of the legislation. Simple remedies are
not sufficient in environmental legis-
lation. The issues involve intergov-
ernmental relationships, the economic
system, technology and appropriate
legal measures for enforcement. This
bill attempts to chart a course to
achieve water quality in the complex
of factors I have described.
TITLE II
The last specific provision I would
like to touch upon is that establishing
in the Executive Office of the Presi-
dent an Office of Environmental Qual-
ity. This provision is very closely re-
lated to the National Environmental
Policy Act, Public Law 91-190, which
established the Council on Environ-
mental Quality. It will be recalled
that the relationship of these two acts
was described prior to the adoption
of S. 7 by the Senate on October 8,
1969. The conference bill further sup-
ports the Office of Environmental
Quality, with particular emphasis on
its function of providing a competent
professional staff to the Council on
Environmental Quality.
The statutory responsibilities placed
upon the Council on Environmental
Quality and the Office of Environmen-
tal Quality are large and broad; with-
out competent staff these responsi-
bilities will not be met. The public's
concern over environmental quality,
is well known; the President's com-
mitment to achieve it is also well
known. Therefore, it was incumbent
on us to provide adequate staff au-
thority and I believe the conference
[p. 9004]
will do so. The conference bill also
designates that the chairman of the
Council on Environmental Quality es-
tablished by Public Law 91-190 shall
serve as the Director of the Office of
Environmental Quality. We look for-
ward to the implementation of the au-
thority to establish the office, and be-
lieve that together with Public Law
91-190 the authority is at hand to be-
gin the task of responding to the de-
mand for and interest in environmen-
tal quality.
[p. 9005]
Mr. MUSKIE. Mr. President, I ask
for the yeas and nays on agreeing to
the conference report.
The yeas and nays were ordered.
*****
The result was announced—yeas 80,
nays 0, ***.
*****
So the conference report was agreed
to.
[p. 9009]
1.3a(4)(d) Vol. 116 (1970), March 25: House agreed to conference
report, pp. 9333-9334;
Mr. FALLON. Mr. Speaker, I have
no further requests for time.
Mr. Speaker, I move the previous
question on the conference report.
The previous question was ordered.
The SPEAKER pro tempore. The
question is on the conference report.
The question was taken; and there
were—yeas 358, nays 0, not voting 72,
as follows: ***
*****
[p. 9333]
So the conference report was agreed
to.
[p. 9334]
-------
STATUTES AND LEGISLATIVE HISTORY 663
1.4 AMORTIZATION OF POLLUTION CONTROL
FACILITIES, AS AMENDED
26 U.S.C. §169
§ 169. AMORTIZATION OF POLLUTION CONTROL FACILITIES
"(a) ALLOWANCE OF DEDUCTION.—Every person, at his election,
shall be entitled to a deduction with respect to the amortization of
the amortizable basis of any certified pollution control facility (as
defined in subsection (d)), based on a period of 60 months. Such
amortization deduction shall be an amount, with respect to each
month of such period within the taxable year, equal to the amorti-
zable basis of the pollution control facility at the end of such month
divided by the number of months (including the month for which
the deduction is computed) remaining in the period. Such amorti-
zable basis at the end of the month shall be computed without
regard to the amortization deduction for such month. The amorti-
zation deduction provided by this section with respect to any
month shall be in lieu of the depreciation deduction with respect
to such pollution control facility for such month provided by sec-
tion 167. The 60-month period shall begin, as to any pollution
control facility, at the election of the taxpayer, with the month
following the month in which such facility was completed or ac-
quired, or with the succeeding taxable year.
"(b) ELECTION OF AMORTIZATION.—The election of the tax-
payer to take the amortization deduction and to begin the 60-
month period with the month following the month in which the
facility is completed or acquired, or with the taxable year succeed-
ing the taxable year in which such facility is completed or ac-
quired, shall be made by filing with the Secretary or his delegate,
in such manner, in such form, and within such time as the Secre-
tary or his delegate may by regulations prescribe, a statement of
such election.
"(c) TERMINATION OF AMORTIZATION DEDUCTION.—A taxpayer
which has elected under subsection (b) to take the amortization
deduction provided in subsection (a) may, at any time after mak-
ing such election, discontinue the amortization deduction with re-
spect to the remainder of the amortization period, such discontinu-
ance to begin as of the beginning of any month specified by the
taxpayer in a notice in writing filed with the Secretary or his
delegate before the beginning of such month. The depreciation
deduction provided under section 167 shall be allowed, beginning
with the first month as to which the amortization deduction does
-------
664 LEGAL COMPILATION—GENERAL
not apply, and the taxpayer shall not be entitled to any further
amortization deduction under this section with respect to such
pollution control facility.
" (d) DEFINITIONS.—For purposes of this section—
"(1) CERTIFIED POLLUTION CONTROL FACILITY.—The term
'certified pollution control facility' means a new identifiable
treatment facility which is used, in connection with a plant or
other property in operation before January 1, 1969, to abate
or control water or atmospheric pollution or contamination by
removing, altering, disposing, or storing of pollutants, con-
taminants, wastes, or heat and which—
"(A) the State certifying authority having jurisdic-
tion with respect to such facility has certified to the
Federal certifying authority as having been constructed,
reconstructed, erected, or acquired in conformity with
the State program or requirements for abatement or con-
trol of water or atmospheric pollution or contamination;
and
"(B) the Federal certifying authority has certified to
the Secretary or his delegate (i) as being in compliance
with the applicable regulations of Federal agencies and
(ii) as being in furtherance of the general policy of the
United States for cooperation with the States in the pre-
vention and abatement of water pollution under the Fed-
eral Water Pollution Control Act, as amended (33 U.S.C.
466 et seq.), or in the prevention and abatement of at-
mospheric pollution and contamination under the Clean
Air Act, as amended (42 U.S.C. 1857 et seq.).
"(2) STATE CERTIFYING AUTHORITY.—The term 'State certi-
fying authority' means, in the case if water pollution, the
State water pollution control agency as defined in section
13 (a) of the Federal Water Pollution Control Act and, in the
case of air pollution, the air pollution control agency as de-
fined in section 302 (b) of the Clean Air Act. The term 'State
certifying authority' includes any interstate agency author-
ized to act in place of a certifying authority of the State.
"(3) FEDERAL CERTIFYING AUTHORITY.—The term 'Federal
certifying authority' means, in the case of water pollution,
the Secretary of the Interior and, in the case of air pollution,
the Secretary of Health, Education, and Welfare.
"(4) NEW IDENTIFIABLE TREATMENT FACILITY.—For pur-
poses of paragraph (1), the term 'new identifiable treatment
facility' includes only tangible property (not including a
-------
STATUTES AND LEGISLATIVE HISTORY 665
building- and its structural components, other than a building
which is exclusively a treatment facility) which is of a char-
acter subject to the allowance for depreciation provided in
section 167, which is identifiable as a treatment facility, and
which—
(A) is property—
(i) the construction, reconstruction, or erection of
which is completed by the taxpayer after December
31, 1968, or
(ii) acquired after December 31, 1968, if the
original use of the property commences with the
taxpayer and commences after such date, and
(B) is placed in service by the taxpayer before Janu-
ary 1,1975.
In applying this section in the case of property described in
clause (i) of subparagraph (A), there shall be taken into
account only that portion of the basis which is properly
attributable to construction, reconstruction, or erection after
December 31, 1968.
(e) PROFITMAKING ABATEMENT WORKS, ETC.—The Federal cer-
tifying authority shall not certify any property under subsection
(d) (1) (B) to the extent it appears that by reason of profits
derived through the recovery of wastes or otherwise in the opera-
tion of such property, its costs will be recovered over its actual
useful life.
*******
Added Pub.L. 91-172, Title VII, § 704(a), Dec. 30, 1969, 83 Stat.
667, and amended Pub.L. 92-178, Title I, § 104 (f) (2), Dec. 10,
1971, 85 Stat. 502.
1.4a AMORTIZATION OF POLLUTION CONTROL
FACILITIES
December 30,1969, P.L. 91-172, §704, 83 Stat. 667
"SEC. 704 AMORTIZATION OF POLLUTION CONTROL FACILITIES
(a) ALLOWANCE.—Part VI of subchapter B of chapter 1 (relat-
ing to itemized deductions for individuals and corporations) is
amended by striking out section 169 and inserting in lieu thereof
the following new section:
-------
666 LEGAL COMPILATION—GENERAL
"SEC. 169. AMORTIZATION OF POLLUTION CONTROL FACILITIES
"(a) ALLOWANCE OF DEDUCTION.—Every person, at his election,
shall be entitled to a deduction with respect to the amortization of
the amortizable basis of any certified pollution control facility (as
defined in subsection (d), based on a period of 60 months. Such
amortization deduction shall be an amount, with respect to each
month of such period within the taxable year, equal to the amor-
tizable basis of the pollution control facility at the end of such
month divided by the number of months (including the month for
which the deduction is computed) remaining in the period. Such
amortizable basis at the end of the month shall be computed with-
out regard to the amortization deduction for such month. The
amortization deduction provided by this section with respect to
any month shall be in lieu of the depreciation deduction with
respect to such pollution control facility for such month provided
by section 167. The 60-month period shall begin, as to any pollu-
tion control facility, at the election of the taxpayer, with the
month following the month in which such facility was completed
or acquired, or with the succeeding taxable year.
"(b) ELECTION OF AMORTIZATION.—The election of the tax-
payer to take the amortization deduction and to begin the 60-
month period with the month following the month in which the
facility is completed or acquired, or with the taxable year succeed-
ing the taxable year in which such facility is completed or ac-
quired, shall be made by filing with the Secretary or his delegate,
in such manner, in such form, and within such time, as the Secre-
tary or his delegate may by regulations prescribe, a statement of
such election.
" (c) TERMINATION OF AMORTIZATION DEDUCTION.—A taxpayer
which has elected under subsection (b) to take the amortization
deduction provided in subsection (a) may, at any time after mak-
ing such election, discontinue the amortization deduction with re-
spect to the remainder of the amortization period, such discontinu-
ance to begin as of the beginning of any month specified by the
taxpayer in a notice in writing filed with the Secretary or his
delegate before the beginning of such month. The depreciation
deduction provided under section 167 shall be allowed, beginning
with the first month as to which the amortization deduction does
[p. 667]
not apply, and the taxpayer shall not be entitled to any further
amortization deduction under this section with respect to such
pollution control facility.
-------
STATUTES AND LEGISLATIVE HISTORY 667
'(d) DEFINITIONS.—For purposes of this section—
"(1) CERTIFIED POLLUTION CONTROL FACILITY.—The term
'certified pollution control facility' means a new identifiable
treatment facility which is used, in connection with a plant or
other property in operation before January 1, 1969, to abate
or control water or atmospheric pollution or contamination by
removing, altering, disposing, or storing of pollutants, con-
taminants, wastes, or heat and which—
"(A) the State certifying authority having jurisdic-
tion with respect to such facility has certified to the
Federal certifying authority as having been constructed,
reconstructed, erected, or acquired in conformity with
the State program or requirements for abatement or con-
trol of water or atmospheric pollution or contamination;
and
"(B) the Federal certifying authority has certified to
the Secretary or his delegate (i) as being in compliance
with the applicable regulations of Federal agencies and
(ii) as being in furtherance of the general policy of the
United States for cooperation with the States in the pre-
vention and abatement of water pollution under the Fed-
eral Water Pollution Control Act, as amended (33 U.S.C.
466 et seq.), or in the prevention and abatement of at-
mospheric pollution and contamination under the Clean
Air Act, as amended (42 U.S.C. 1857 et seq.).
"(2) STATE CERTIFYING AUTHORITY.—The term 'State certi-
fying authority' means, in the case of water pollution, the
State water pollution control agency as defined in section
13 (a) of the Federal Water Pollution Control Act and, in the
case of air pollution, the air pollution control agency as de-
fined in section 302 (b) of the Clean Air Act. The term 'State
certifying authority' includes any interstate agency author-
ized to act in place of a certifying authority of the State.
"(3) FEDERAL CERTIFYING AUTHORITY.—The term 'Federal
certifying authority' means, in the case of water pollution,
the Secretary of the Interior and, in the case of air pollution,
the Secretary of Health, Education, and Welfare.
"(4) NEW IDENTIFIABLE TREATMENT FACILITY.—For pur-
poses of paragraph (1), the term 'new identifiable treatment
facility' includes only tangible property (not including a
building and its structural components, other than a building
which is exclusively a treatment facility) which is of a char-
acter subject to the allowance for depreciation provided in
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668 LEGAL COMPILATION—GENERAL
section 167, which is identifiable as a treatment facility, and
which—
"(A) is property—
"(i) the construction, reconstruction, or erection
of which is completed by the taxpayer after Decem-
ber 31, 1968, or
"(ii) acquired after December 31, 1968, if the
original use of the property commences with the tax-
payer and commences after such date, and
"(B) is placed in service by the taxpayer before Janu-
ary 1, 1975.
In applying this section in the case of property described in
clause (i) of subparagraph (A), there shall be taken into
account only that portion of the basis which is properly at-
tributable to construction, reconstruction, or erection after
December 31, 1968.
[p. 668]
"(e) PROFITMAKING ABATEMENT WORKS, ETC.—The Federal
certifying authority shall not certify any property under subsec-
tion (d) (1) (B) to the extent it appears that by reason of profits
derived through the recovery of wastes or otherwise in the opera-
tion of such property, its costs will be recovered over its actual
useful life.
" (f) AMORTIZABLE BASIS.—
" (1) DEFINED.—For purposes of this section, the term 'am-
ortizable basis' means that portion of the adjusted basis (for
determining gain) of a certified pollution control facility
which may be amortized under this section.
"(2) SPECIAL RULES.—
"(A) If a certified pollution control facility has a use-
ful life (determined as of the first day of the first month
for which a deduction is allowable under this section) in
excess of 15 years, the amortizable basis of such facility
shall be equal to an amount which bears the same ratio to
the portion of the adjusted basis of such facility, which
would be eligible for amortization but for the application
of this subparagraph, as 15 bears to the number of years
of useful life of such facility.
" (B) The amortizable basis of a certified pollution con-
trol facility with respect to which an election under this
section is in effect shall not be increased, for purposes of
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STATUTES AND LEGISLATIVE HISTORY 669
this section, for additions or improvements after the am-
ortization period has begun.
"(g) DEPRECIATION DEDUCTION.—The depreciation deduction
provided by section 167 shall, despite the provisions of subsection
(a), be allowed with respect to the portion of the adjusted basis
which is not the amortizable basis.
" (h) INVESTMENT CREDIT NOT To BE ALLOWED.—In the case of
any property with respect to which an election has been made
under subsection (a), so much of the adjusted basis of the prop-
erty as (after the application of subsection (f)) constitutes the
amortizable basis for purposes of this section shall not be treated
as section 38 property within the meaning of section 48 (a).
"(i) LIFE TENANT AND REMAINDERMAN.—In the case of prop-
erty held by one person for life with remainder to another person,
the deduction under this section shall be computed as if the life
tenant were the absolute owner of the property and shall be allow-
able to the life tenant.
" (j) CROSS REFERENCE.—
"For special rule with respect to certain gain derived from the dis-
position of property the adjusted basis of which is determined with
regard to this section, see section 1245."
(b) CONFORMING, ETC., AMENDMENTS.—
(1) The table of sections for part VI of subchapter B of
chapter 1 is amended by striking out the item relating to
section 169 and inserting in lieu thereof the following new
item:
"Sec. 169. Amortization of pollution control facilities."
(2) The heading and the first sentence of section 642(f)
(relating to special rules for credits and deductions of estates
and trusts) are amended to read as follows:
"(f) AMORTIZATION DEDUCTIONS.—The benefit of the deduc-
tions for amortization provided by sections 168, 169, 184, and 187
shall be allowed to estates and trusts in the same manner as in the
case of an individual."
(3) Section 1082 (a) (2) (B) (relating to basis for deter-
mining gain or loss) is amended by striking out "or 169" and
inserting in lieu thereof ",169,184, 185, or 187".
[p. 669]
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670 LEGAL COMPILATION—GENERAL
1.4a(l) HOUSE COMMITTEE ON WAYS AND MEANS
H.R. REP. No. 91-413 (Part I), 91st Cong., 1st Sess. (1969)
TAX REFORM ACT OF 1969
A BILL TO REFORM THE INCOME TAX LAWS
AUGUST 7—Ordered to be printed
Committee on Ways and Means submitted the following
REPORT
[To accompany H.R. 13270]
4. Amortization of pollution control facilities (sec. 704 of the bill
and sec. 168 of the code).
Present law.—Under present law a taxpayer may claim an in-
vestment credit with respect to pollution control facilities to the
extent they involve property of a type for which the investment
credit generally is available.
General reasons for provision.—Your committee recognizes that
an important challenge facing our Nation today is the problem of
environmental pollution. Our rivers, lakes, streams, and air are
becoming increasingly polluted. Moreover, this is a problem which
affects both the rural sections of our country and also our urban
complexes. Industrial and human wastes and sewage are increas-
ingly contaminating our rivers and our air is being increasingly
polluted by industrial contaminants.
[p. 196]
Congress has addressed itself to the air and water pollution
problem in legislation which it has passed in recent years. This
legislation has laid a foundation for dealing with the pollution
problem. In order to deal effectively with the Nation's air and
water pollution problem, however, a significant part of the task
must be met by private industry. In effect, private industry is
being asked to make an investment which in part is for the benefit
of the general public. Moreover, quite often it costs relatively
more to deal with the pollution problem in the case of an existing
plant than to plan a new plant in such a way as to reduce its
polluting effects. It also has been estimated that factories which
efficiently curb pollution through the installation of antipollution
equipment may face significant increases in costs. Moreover, ex-
-------
STATUTES AND LEGISLATIVE HISTORY 671
penditures for pollution control equipment generally do not result
in any increase in the profitability of a plant.
At the present time companies which install antipollution equip-
ment involving property of a type for which the investment credit
is available receive, in effect, an incentive through the investment
credit for dealing with the pollution problem. The repeal of the
investment credit in this regard could have an undesirable effect
on the efforts made by private industry to combat the pollution
problem were another type of incentive not made available.
In view of the possible undesired effect on pollution control of
repealing the investment credit and the increasing magnitude of
the air and water pollution problem facing the Nation today, your
committee believes it is appropriate to provide an incentive to
private industry for antipollution efforts. However, it believes it is
more appropriate to permit the rapid recovery of the costs in-
volved, rather than to permit a return in excess of total costs.
Accordingly, your committee's bill provides that the cost of new
pollution control facilities (which are appropriately certified by
the relevant State and Federal authorities) may be amortized over
a 5-year period. Since quite often these facilities have a useful life
of 10 to 20 years or more, the usual depreciation deduction each
year is relatively small. The larger deduction provided by allowing
the recovery of the taxpayer's cost over the shorter 5-year period
will provide a greater incentive for the installation of effective
pollution control equipment.
Your committee recognizes that the incentive provided in the
bill is not a complete answer to the pollution problem. The need
for broader and more effective pollution control standards re-
mains. The amortization deduction provided by the bill, however,
should be a useful component of the Nation's total efforts to deal
with the pollution problem. It will ease the impact on private
industry of the additional costs which it must incur for pollution
control facilities and, thus, should encourage private industry to
cooperate in the required efforts.
Explanation of provision.—Under the provision contained in
the bill, a taxpayer (including an estate or trust) would be al-
lowed, at his election (under regulations prescribed by the Treas-
ury Department) to amortize any certified pollution control facil-
ity over a period of 60 months. The 60-month period with respect
to a facility would begin either with the month after that in which
the facility was completed or acquired, or with the next taxable
[p. 197]
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672 LEGAL COMPILATION—GENERAL
year, whichever the taxpayer elected. The amortization deduction
provided by the bill for any month would bs in place of the regular
depreciation deduction which would be allowable for that month
under section 167 with respect to the facility. A taxpayer who
elected the amortization deduction with respect to a facility, how-
ever, would still be eligible to receive the additional first-year
depreciation allowance provided under section 179 with respect to
that facility. However, no investment credit would be available for
any facility with respect to which the 5-year amortization deduc-
tion had been elected.
The amortization deduction provided by the bill would be availa-
ble only with respect to a "certified pollution control facility,"
which generally is defined as that part of any depreciable property
which is used to abate or control water or atmospheric pollution or
contamination by removing, altering, disposing, or storing of pol-
lutants, contaminants, wastes or heat, and which is appropriately
certified. The amortization deduction would be available only with
respect to a facility the construction (reconstruction or erection)
of which is completed by the taxpayer after 1968, or which is
acquired after 1968, if the original use of the property commences
with the taxpayer after that time. Only that portion of the basis
of property constructed (reconstructed or erected) by the tax-
payer which is properly attributable to construction (reconstruc-
tion or erection) after 1968, is to be taken into account for pur-
poses of the amortization deduction.
As indicated, the amortization deduction would be available only
with respect to a pollution control facility which is certified by the
appropriate State and Federal authorities. In the case of water
pollution, the State certifying authority means the State water
pollution control agency as defined in the Federal Water Pollution
Control Act, and the Federal certifying authority is the Secretary
of the Interior. In the case of air pollution, the State authority is
the air pollution control agency as defined in the Clean Air Act,
and the Federal authority is the Secretary of Health, Education,
and Welfare.
Under the certification required by the bill, it would be neces-
sary with respect to any pollution control facility for the State
authority to certify to the Federal authority that the facility had
been constructed (reconstructed or erected) or acquired in con-
formity with the State program or requirements regarding the
abatement or control of water or air pollution or contamination. It
would be further necessary for the Federal authority to certify to
the Secretary of the Treasury with respect to any pollution control
-------
STATUTES AND LEGISLATIVE HISTORY 673
facility that the facility (1) met minimum performance standards
(which would be required to be promulgated by the Federal au-
thority from time to time for this purpose and which would take
technological advances into account and specify the tolerance of
such pollutants and contaminants as is appropriate), (2) was in
compliance with the applicable regulations of Federal agencies,
and (3) was in furtherance of the general policies of the United
States for cooperation with the States in the prevention and abate-
ment of water or air pollution under the Federal Water Pollution
Control Act or the Clean Air Act, respectively.
The bill further provides that the Federal certifying authority
could not certify any facility to the extent it appeared that the
costs of the facility would be recovered over its actual useful life
through profits arising from the recovery of wastes or otherwise
in operating the facility. A certification also could not be made to
[p. 198]
the extent it appeared that the facility would be constructed or
acquired without regard to considerations regarding the control or
abatement of air or water pollution. These limitations are de-
signed to insure that the incentive for controlling air and water
pollution provided by the amortization deduction is not available
in situations where it, in effect, would provide a windfall to tax-
payers, i.e., where the cost of the facility is recovered through
byproducts derived from its operation or where the facility would
have been constructed without regard to the abatement of air or
water pollution. This latter category would cover, for example, the
situation where a new plant contained a facility which had the
effect of controlling pollution, such as a special sewer line or
smokestack, but which actually was installed for the effective op-
eration of the plant rather than for pollution control purposes.
Where only a part of a plant or other property is appropriately
certified as a pollution control facility, the bill provides that the
adjusted basis of the property is to be properly allocated between
the certified portion and the uncertified portion in accordance with
regulations prescribed by the Treasury Department.
As noted above, where a taxpayer elects the amortization deduc-
tion provided under the bill for certified pollution control facilities
, then no investment credit may be claimed with respect to the
,' facility. Thus, if a taxpayer has property which generally would
be eligible for the investment credit and part or all of the property
also is eligible for rapid amortization, if he claims rapid amortiza-
tion with respect to the property (or a portion of it) he may not
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674 LEGAL COMPILATION—GENERAL
claim an investment credit with respect to the same property (or
portion). This may occur where the construction of a property
was completed after 1968 (or acquired after that date) but either
because the construction of the property began before, or it was
acquired before, April 19, 1968 (or because of the binding con-
tract rule or some other transition rule) the taxpayer generally
could claim an investment credit with respect to the property.
With respect to property for which the amortization deduction
provided by the bill has been elected, the bill further provides for
the recapture of the excess amortization deductions claimed (i.e.,
excess of those deductions over the deductions which would have
been allowable if depreciation had been taken with respect to the
property) and also for the application of the regular depreciation
recapture rules (whether real or personal property is involved),
treating the amortization deductions claimed with respect to the
property for this purpose as if they were, in effect, depreciation
deductions. In other words, to the extent a gain arising on the
disposition of a pollution control facility, with respect to which the
amortization deduction has been allowed, is in fact attributable to
the allowance of that deduction, the gain is to be treated as ordi-
nary income.
The amortization deduction provided by the bill may be discon-
tinued by a taxpayer at any time. If a taxpayer does discontinue
the amortization deduction, then he may depreciate the property
starting with the first month to which the amortization deduction
is not applicable. A taxpayer who does discontinue the amortiza-
tion deduction, however, would not be entitled to any further
amortization deduction with respect to that facility.
Effective date.—The amendments made by this provision are to
be applicable with respect to taxable years ending after 1968.
[P. 199]
Revenue effect.—The revenue loss from this provision is esti-
mated at $40 million in 1970, and it is estimated to rise to $380
million in 1974.
[p. 200]
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STATUTES AND LEGISLATIVE HISTORY 675
1.4a(2) HOUSE COMMITTEE ON WAYS AND MEANS
H.R. REP. No. 91-413 (Part II), 91st Cong., 1st Sess. (1969)
TAX REFORM ACT OF 1969
AUGUST 4, 1969—Ordered to be printed
Committee on Ways and Means, submitted the following
SUPPLEMENTAL REPORT
[To accompany H.R. 1327]
SECTION 704. AMORTIZATION OF POLLUTION CONTROL
FACILITIES
(a) Allowance.—Subsection (a) of section 704 of the bill
amends part VI of subchapter B of chapter 1 (relating to itemized
deductions for individuals and corporations) by striking out sec-
tions 168 and 169 of the code and by adding after section 167 a
new section 168.
New section 168 of the code provides for an amortization deduc-
tion over a 60-month period for certified pollution control facili-
ties.
[P-134]
SECTION 168. AMORTIZATION OF POLLUTION CONTROL FACILITIES
Allowance of deduction
Subsection (a) of new section 168 provides that a taxpayer may
elect to amortize over a 60-month period, the adjusted basis (for
determining gain) of any certified pollution control facility. The
deduction in each month to which the election applies shall be
computed by dividing the adjusted basis (at the end of such
month) of the pollution control facility to be amortized by the
number of months remaining in the period. The 60-month period
shall begin, at the election of the taxpayer, with the month follow-
ing the month in which the facility was completed or acquired, or
with the succeeding taxable year.
The deduction provided by this section shall be in lieu of any
depreciation deduction provided by section 167.
Election of amortization
Subsection (b) of new section 168 describes the manner in
which the election provided by subsection (a) shall be made.
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676 LEGAL COMPILATION—GENERAL
Termination of amortization deduction
Subsection (c) of new section 168 provides that a taxpayer who
has elected to take the amortization deduction provided by this
section may, at any time after making such election, discontinue
the amortization deduction for the remainder of the 60-month
period by filing a written statement with the Secretary or his
delegate before the beginning of the month with respect to which
such termination is to be effective. In the event that such election
is terminated, the depreciation deduction provided by section 167
shall be allowed beginning with the first month to which the amor-
tization deduction does not apply. However, the election provided
by this section shall not be available with respect to facilities for
which the election has once been made and subsequently termi-
nated.
Definitions
Subsection (d) of new section 168 defines certain of the terms
used in this section.
Paragraph (1) of new section 168 (d) defines the term "certified
pollution control facility" to mean a new identifiable treatment
facility which is used to abate or control water or atmospheric
pollution or contamination by certain specified means and which is
certified by a State and Federal certifying authority as having met
certain requirements.
Paragraph (2) of new section 168 (d) defines the term "State
certifying authority" to mean a State water pollution control
agency as defined in section 13 (a) of the Federal Water Pollution
Control Act or an air pollution control agency as defined in section
302 (b) of the Clean Air Act. The defined terms include any inter-
state agency authorized to act in place of a certifying authority of
the State.
Paragraph (3) of new section 168 (d) defines the term "Federal
certifying authority" to mean the Secretary of the Interior (in the
case of water pollution) and the Secretary of Health, Education,
and Welfare (in the case of air pollution).
Paragraph (4) of new section 168 (d) defines the term "new
identifiable treatment facility" to mean only tangible property
(not including a building or a structural component thereof which
is other than a building that is exclusively a treatment facility).
[p. 135]
In addition, in order to be a new identifiable treatment facility the
property must meet the following requirements:
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STATUTES AND LEGISLATIVE HISTORY 677
(1) it must be property of a character subject to the allow-
ance for depreciation provided in section 167,
(2) it must be identifiable as a treatment facility, and
(3) it must be property—
(A) the construction, reconstruction, or erection of
which is completed by the taxpayer after December 31,
1968 (and then only that portion of the basis which is
properly attributable to such construction, reconstruc-
tion, or erection after such date), or
(B) which is acquired by the taxpayer, and the origi-
nal use of which commences with the taxpayer, after
December 31, 1968.
Authorization of Secretaries to set standards, etc.
Paragraph (1) of new section 168 (e) provides that the Federal
certifying authority shall, from time to time, promulgate mini-
mum performance standards with respect to the prevention or
abatement of air or water pollution, taking into account technolog-
ical advances.
Paragraph (2) of new section 168 (e) provides that the Federal
certifying authority shall not certify property to the extent it
appears that the costs of such property will be recovered (over its
actual useful life) by reason of profits derived through the recov-
ery of wastes or otherwise in the operation of such property. This
paragraph also provides that property shall not be certified to the
extent that it appears that such property would have been con-
structed, reconstructed, erected, or acquired without regard to the
need to abate or control water or atmospheric pollution or contam-
ination.
Allocation of basis
Subsection (f) of new section 168 provides that in the case of
property which qualifies only in part for the amortization deduc-
tion provided by new section 168, the adjusted basis of such prop-
erty shall be allocated, under regulations prescribed by the Secre-
tary or his delegate, between the amortizable portion and the
portion which does not qualify. The depreciation deduction pro-
vided by section 167 shall apply to that portion of the adjusted
basis of such property which does not qualify for the amortization
deduction under this section.
Investment credit not to be allowed
Subsection (g) of new section 168 provides that the portion of
the adjusted basis of property which is amortizable under this
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678 LEGAL COMPILATION—GENERAL
section shall not be treated as section 38 property within the
meaning of section 48 (a) and, therefore, does not qualify for the
investment credit.
Life tenants and remaindermen
Subsection (h) of new section 168 provides that for purposes of
this section a life tenant shall be treated as if he were the absolute
owner of the property.
(b) Conforming, et cetera, amendments.—Subsection (b) of sec-
tion 704 of the bill makes various clerical and conforming amend-
ments to the code which are required as a result of the amend-
ments made by subsection (a) of such section.
[p. 136]
Paragraph (2) of section 704(b) of the bill amends section
642 (f) of the code (relating to special rules for credits and deduc-
tions of estates and trusts) to provide that the amortization de-
duction under new section 168 shall be available to trusts and
estates.
Paragraph (4) (B) of section 704(b) of the bill amends section
1245 (a) of the code (relating to gain from disposition of certain
depreciable property) to provide that the adjusted basis of certain
certified pollution control facilities described in new paragraph
(3) (D) of section 1245 (a) shall be recomputed taking into ac-
count adjustments attributable to deductions for amortization al-
lowed under new section 168.
Paragraph (4) (E) of section 704 (b) of the bill amends section
1245(a) of the code by adding at the end of paragraph (3)
thereof a new subparagraph (D) to provide that so much of any
real property (other than property described in sec.
1245 (a) (3) (B)) the basis of which reflects adjustments attribut-
able to deductions for amortization under section 168 shall be
included in the definition of section 1245 property.
(c) Effective date.—Subsection (c) of section 704 of the bill
provides that the amendments made by subsections (a) and (b) of
such section shall apply with respect to taxable years ending after
December 31, 1968.
[p. 137]
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STATUTES AND LEGISLATIVE HISTORY 679
1.4a(3) SENATE COMMITTEE ON FINANCE
S. REP. No. 91-552, 91st Cong., 1st Sess. (1969)
TAX REFORM ACT OF 1969
NOVEMBER 21,1969—Ordered to be printed
Committee on Finance, submitted the following
REPORT
[To accompany H.R. 13270]
W. AMORTIZATION OF POLLUTION CONTROL
FACILITIES
(Sec. 704 of the bill and sec. 169 of the code)
Present law.—Under present law a taxpayer may claim an in-
vestment credit with respect to pollution control facilities to the
extent they involve property of a type for which the investment
credit generally is available.
General reasons for provision.—The committee recognizes that
an important challenge facing our Nation today is the problem of
environmental pollution. Our rivers, lakes, streams, and air are
becoming increasingly polluted. Moreover, this is a problem which
affects both the rural sections of our country and also our urban
complexes. Industrial and human wastes and sewage are increas-
ingly contaminating our rivers, and our air is being increasingly
polluted by industrial contaminants.
Congress has addressed itself to the air and water pollution
problem in legislation which it has passed in recent years. This
legislation has laid a foundation for dealing with the pollution
problem. In order to deal effectively with the Nation's air and
water pollution problem, however, a significant part of the task
must be met by private industry. In effect, private industry is
being asked to make an investment which in part is for the benefit
of the general public. Moreover, it also has been estimated that
existing factories which attempt to curb pollution efficiently
through the addition of antipollution equipment may face signifi-
cant increases in capital costs. Moreover, expenditures for pollu-
tion control equipment generally do not result in any increase in
the profitability of a plant.
At the present time companies which install antipollution equip-
ment involving property of a type for which the investment credit
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680 LEGAL COMPILATION—GENERAL
is available receive, in effect, an incentive through the investment
credit for dealing with the pollution problem. The repeal of the
investment credit in this regard could have an undesirable effect
on the efforts made by private industry to combat the pollution
problem were another type of incentive not made available.
In view of the possible undesired effect on pollution control of
repealing the investment credit and the increasing magnitude of
the air and water pollution problem facing the Nation today, the
committee agrees with the House that it is appropriate to provide
an incentive to private industry for antipollution efforts. It also
believes it is more appropriate to permit the rapid recovery of the
[p. 248]
costs involved, rather than to permit a return in excess of total
costs. The House bill provided that the cost of new pollution con-
trol facilities (which are appropriately certified by the relevant
State and Federal authorities) may be amortized over a 5-year
period. Since quite often these facilities have a useful life of 10 to
20 years or more, the usual depreciation deduction each year is
relatively small. The larger deduction provided by allowing the
recovery of the taxpayer's cost over the shorter 5-year period
would provide a greater incentive for the installation of effective
pollution control equipment.
The committee has continued the concept of the amortization
incentive provided in the House bill but has modified the House
provision to limit its application to those situations where there is
the greatest need for incentive. Since the cost of modifying an
existing plant for pollution control purposes generally is substan-
tially in excess of the cost of incorporating pollution control facili-
ties into a new plant, the committee has limited the scope of the
amortization deduction to facilities which are added to the exist-
ing plants. In addition, the committee has provided that only the
part of the cost of the facility which is attributable to the first 15
years of its useful life may be amortized under this provision. The
allowance of a 5-year writeoff for the full cost of long-lived assets
would provide an unduly large stimulus to the purchase of these
assets vis-a-vis shorter-lived assets.
The committee recognizes that the incentive provided in the bill
is not a complete answer to the pollution problem. The need for
broader and more effective pollution control standards remains.
The amortization deduction provided by the bill, however, should
be a useful component of the Nation's total efforts to deal with the
-------
STATUTES AND LEGISLATIVE HISTORY 681
pollution problem. It will ease the impact on private industry of
the additional costs which it must incur for pollution control facil-
ities and, thus, should encourage private industry to cooperate in
the required efforts.
Explanation of provision.—Under both versions of the bill, a
taxpayer (including an estate or trust) is to be allowed, at his
election (under regulations prescribed by the Treasury Depart-
ment) to amortize a certified pollution control facility over a pe-
riod of 60 months. The committee amendments also limit the am-
ortization deduction to pollution control facilities added to plants
(or other properties) which were in operation before January 1,
1969. Thus, the special amortization provision is not to be availa-
ble in the case of facilities included in new plants built in the
future. The committee amendments further limit the 5-year amor-
tization deduction by allowing it only for the proportion of the
cost of the property attributable to the first 15 years of its normal
useful life. Where a property has a normal useful life of more
than 15 years, the taxpayer would in effect treat his facility as if
it were two separate facilities. One facility (representing the por-
tion of the total cost attributable to the first 15 years of useful
life) would be eligible for the 5-year amortization. The other facil-
ity (the remaining cost) would receive regular depreciation based
upon the entire normal useful life of the property. If the property
has a normal useful life of 15 years or less, the total cost of the
property would be eligible for the 5-year amortization.
The 60-month amortization period with respect to a facility is to
begin either with the month after that in which the facility was
completed or acquired, or with the next year, whichever the tax-
[P. 249]
payer elects. The amortization deduction for any month would be
in place of the regular depreciation deduction which would be
allowable for that month (under section 167) with respect to the
portion of the facility eligible for amortization. A taxpayer who
elected the amortization deduction with respect to a facility, how-
ever, would still be eligible to receive the additional first-year
depreciation allowance (provided under section 179) with respect
to that facility. However, no investment credit is to be available
for that portion of any facility with respect to which the 5-year
amortization deduction had been elected.
If the assets of a corporation are acquired by another corpora-
tion in a transaction subject to section 381 (which provides for
the carryover of certain items in the case of certain corporate
-------
682 LEGAL COMPILATION—GENERAL
acquisitions), the acquiring corporation is to be treated for pur-
poses of this provision, as if it were the acquired corporation.
The amortization deduction is to be available only with respect
to a "certified pollution control facility," which generally is de-
fined as depreciable property which is a separate identifiable treat-
ment facility used to abate or control water or atmospheric pollu-
tion or contamination by removing, altering, disposing, or storing
of pollutants, contaminants, wastes or heat, and which is appro-
priately certified. A building is not a pollution control facility
unless it is exclusively a treatment facility. Thus, a pollution con-
trol facility does not include any facility which serves any func-
tion other than pollution abatement. Moreover, facilities which
only diffuse pollution, as distinct from abating it, are not pollution
control facilities. In other words, a pollution control facility is an
installation which prevents or minimizes the direct release of pol-
lutants into the air or water in the course of manufacturing opera-
tions. For example, a smokestack on a plant whose height was
increased to disperse pollutants over a broader area would not be
a pollution control facility while a device which is contained in a
smokestack and actually abates the emission of pollutants is to be
a pollution control facility. In addition, a facility that removes
certain elements from fuel (for example, sulphur which would be
released as a pollutant when the fuel is burned) would not be a
pollution control facility.
The amortization deduction is to be available only with respect
to a facility the construction (reconstruction or erection) of which
is completed by the taxpayer after 1968, or which is acquired after
1968, if the original use of the property commences with the
taxpayer after that time. Only that portion of the basis of prop-
erty constructed (reconstructed or erected) by the taxpayer which
is properly attributable to construction (reconstruction or erec-
tion) after 1968, is to be taken into account for purposes of the
amortization deduction.
As indicated, the amortization deduction is to be available only
with respect to a pollution control facility which is certified by the
appropriate State and Federal authorities. In the case of water
pollution, the State certifying authority means the State water
pollution control agency as defined in the Federal Water Pollution
Control Act, and the Federal certifying authority is the Secretary
of the Interior. In the case of air pollution, the State authority is
the air pollution control agency as defined in the Clean Air Act,
and the Federal authority is the Secretary of Health, Education,
and Welfare. An interstate agency authorized to act in place of a
-------
STATUTES AND LEGISLATIVE HISTORY 683
State certifying authority is to be treated as the certifying author-
ity of the State.
[p. 250]
Under the certification required by both versions of the bill, it
would be necessary with respect to any pollution control facility
for the State authority to certify to the Federal authority that the
facility had been constructed (reconstructed or erected) or ac-
quired in conformity with the State program or requirements
regarding the abatement or control of water or air pollution or
contamination. It would be further necessary for the Federal au-
thority to certify to the Secretary of the Treasury with respect to
any pollution control facility that the facility (1) was in compli-
ance with the applicable regulations of Federal agencies, and (2)
was in furtherance of the general policies of the United States for
cooperation with the States in the prevention and abatement of
water or air pollution under the Federal Water Pollution Control
Act or the Clean Air Act, respectively.
The House bill also required the Federal authority to certify
that the facility met minimum performance standards (which
would be required to be promulgated by the Federal authority
from time to time for this purpose and which would take technol-
ogical advances into account and specify the appropriate tolerance
of such pollutants and contaminants). The committee deleted this
provision of the House bill in view of the fact that Congress
previous!y has not granted the Federal Government authority to
promulgate national standards of this nature. The committee be-
lieves it is appropriate to continue the past policy of allowing the
States to set these standards within general guidelines established
by the Federal Government.
Both versions of the bill further provide that the Federal certi-
fying authority is not to certify any facility to the extent it ap-
peared that the costs of the facility would be recovered over its
actual useful life by reason of profits arising from the recovery of
wastes or otherwise in the operation of the facility. This limita-
tion is designed to insure that the incentive for controlling air and
water pollution provided by the amortization deduction is not
available in situations where it, in effect, would provide a windfall
to taxpayers, i.e., where the cost of the facility is recovered
through the sale of by-products derived from its operation.
With respect to property for which the amortization deduction
provided by the bill has been elected, both versions of the bill
further provide for the recapture (under section 1245) of the
-------
684 LEGAL COMPILATION—GENERAL
amortization deductions claimed with respect to property. In other
words, to the extent of the previous amortization deductions, a
gain arising on the disposition of a pollution control facility is to
be treated as ordinary income.
The amortization deduction may be discontinued by a taxpayer
at any time. If a taxpayer does discontinue the amortization de-
duction, then he may depreciate the property starting with the
first month to which the amortization deduction is not applicable.
A taxpayer who does discontinue the amortization deduction, how-
ever, would not be entitled to any further amortization deduction
with respect to that facility.
Under the committee amendments (but not the House bill) the
amortization deduction is to be available only for air or water
pollution control facilities placed in service before January 1,
1975. This will provide the Congress with an opportunity to evalu-
ate the effectiveness of the program in achieving its objective.
[p. 251]
Effective date.—The amendments made by this provision of the
House bill and the committee amendments are to be applicable
with respect to taxable years ending after December 31, 1968.
Revenue effect.—The revenue loss from this provision is esti-
mated at $15 million in 1970, and it is estimated to rise to $115
million in 1974.
[p. 252]
1.4a(4) COMMITTEE OF CONFERENCE
H.R. REP. No. 91-782, 91st Cong., 1st Sess. (1969)
TAX REFORM ACT OF 1969
DECEMBER 21, 1969.—Ordered to be printed
Mr. MILLS, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 13270]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 13270)
to reform the income tax laws, having met, after full and free
-------
STATUTES AND LEGISLATIVE HISTORY 685
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the amendment
of the Senate and agree to the same with an amendment as fol-
lows:
[P. ll]
Sec. 704. Amortization of Pollution Control Facilities.
(a) Allowance.—Part VI of subchapter B of chapter 1 (relating
to itemized deductions for individuals and corporations) is
amended by striking out section 169 and inserting in lieu thereof
the following new section:
"Sec. 169. Amortization of Pollution Control Facilities.
"(a) Allowance of Deduction.—Every person, at his election,
shall be entitled to a deduction with respect to the amortization of
the amortizable basis of any certified pollution control facility (as
defined in subsection (d)), based on a period of 60 months. Such
amortization deduction shall be an amount, with respect to each
month of such period within the taxable year, equal to the amor-
tizable basis of the pollution control facility at the end of such
month divided by the number of months (including the month for
which the deduction is computed) remaining in the period. Such
amortizable basis at the end of the month shall be computed with-
out regard to the amortization deduction for such month. The
amortization deduction provided by this section with respect to
any month shall be in lieu of the depreciation deduction with
respect to suck pollution control facility for such month provided
by section 167. The 60-month period shall begin, as to any pollu-
tion control facility, at the election of the taxpayer, with the
month following the month in which such facility was completed
or acquired, or with the succeeding taxable year.
"(b) Election of Amortization.—The election of the taxpayer
to take the amortization deduction and to begin the 60-month
period with the month following the month in which the facility
is completed or acquired, or with the taxable year succeeding
the taxable year in which such facility is completed or acquired,
shall be made by filing with the Secretary or his delegate, in
such manner, in such form, and within such time, as the Secre-
tary or his delegate may by regulations prescribe, a statement of
such election.
[p. 195]
-------
686 LEGAL COMPILATION—GENERAL
"(c) Termination of Amortization Deduction.—A taxpayer
which has elected under subsection (b) to take the amortization
deduction provided in subsection (a) may, at any time after mak-
ing such election, discontinue the amortization deduction with re-
spect to the remainder of the amortization period, such discontinu-
ance to begin as of the beginning of any month specified by the
taxpayer in a notice in writing filed with the Secretary or his
delegate before the beginning of such month. The depreciation
deduction provided under section 167 shall be allowed, beginning
with the first month as to which the amortization deduction does
not apply, and the taxpayer shall not be entitled to any further
amortization deduction under this section with respect to such
pollution control facility.
"(d) Definitions.—For purposes of this section—
"(1) Certified pollution control facility.—The term 'certi-
fied pollution control facility' means a new identifiable
treatment facility which is used, in connection with a plant or
other property in operation before January 1, 1969, to abate
or control water or atmospheric pollution or contamination by
removing, altering, disposing, or storing of pollutants, con-
taminants, wastes, or heat and which—
"(A) the State certifying authority having jurisdiction
with respect to such facility has certified to the Federal
certifying authority as having been constructed, recon-
structed, erected, or acquired in conformity with the
State program or requirements for abatement or control
of water or atmospheric pollution or contamination; and
"(B) the Federal certifying authority has certified to
the Secretary or his delegate (i) as being in compliance
with the applicable regulations of Federal agencies and
(ii) as being in furtherance of the general policy of the
United States for cooperation with the States in the pre-
vention and abatement of water pollution under the Fed-
eral Water Pollution Control Act, as amended (33 U.S.C.
466 et seq.), or in the prevention and abatement of at-
mospheric pollution and contamination under the Clean
Air Act, as amended (4-2 U.S.C. 1857 et seq.).
"(2) State certifying authority.—The term 'State certi-
fying authority' means, in the case of water pollution, the
State water pollution control agency as defined in section
13 (a) of the Federal Water Pollution Control Act and, in the
case of air pollution, the air pollution control agency as de-
fined in section 302(b) of the Clean Air Act. The term 'State
-------
STATUTES AND LEGISLATIVE HISTORY 687
certifying authority' includes any interstate agency author-
ized to act in place of a certifying authority of the State.
"(3) Federal certifying authority.—The term 'Federal
certifying authority' means, in the case of water pollution, the
Secretary of the Interior and, in the case of air pollution, the
Secretary of Health, Education, and Welfare.
"(4) New identifiable treatment facility.—For purpose of
paragraph (1), the term 'new identifiable treatment facility'
includes only tangible property (not including a building and
its structural components, other than a building which is
exclusively a treatment facility) which is of a character sub-
ject to the allowance for depreciation provided in section 167,
which is identifiable as a treatment facility, and which—
" (A) is property—
" (i) the construction, reconstruction, or erection
of which is completed by the taxpayer after Decem-
ber 31, 1968, or
[p. 196]
" (ii) acquired after December 31, 1968, if the
original use of the property commences with the
taxpayer and commences after such date, and
" (B) is placed in service by the taxpayer before Janu-
ary 1. In applying this section in the case of property
described in clause (i) of subparagraph (A), there shall
be taken into account only that portion of the basis which
is properly attributable to construction, reconstruction,
or erection after December 31, 1968.
"(e) Profitmaking Abatement Works, Etc.—The Federal certi-
fying authority shall not certify any property under subsection
(d) (1) (B) to the extent it appears that by reason of profits
derived through the recovery of wastes or otherwise in the opera-
tion of such property, its costs will be recovered over its actual
useful life.
"(f) Amortizable Basis.—
"(1) Defined.—For purposes of this section, the term 'am-
ortizable basis' means that portion of the adjusted basis (for
determining gain) of a certified pollution control facility
which may be amortized under this section.
"(2) Special rules.—
"(A) If a certified pollution control facility has a use-
ful life (determined as of the first day of the first month
-------
688 LEGAL COMPILATION—GENERAL
for which a deduction is allowable under this section) in
excess of 15 years, the amortizable basis of such facility
shall be equal to an amount which bears the same ratio to
the portion of the adjusted basis of such facility, which
would be eligible for amortization but for the application
of this subjaragraph, as 15 bears to the number of years
of useful life of such facility.
" (B) The amortizable basis of a certified pollution con-
trol facility with respect to which an election under this
section is in effect shall not be increased, for purposes of
this section, for additions or improvements after the
amortization period has begun.
"(g) Depreciation Deduction.—The depreciation deduction pro-
vided by section 167 shall, despite the provisions of subsection
(a), be allowed with respect to the portion of the adjusted basis
which is not the amortizable basis.
"(h) Investment Credit Not To Be Allowed.—In the case of
any property with respect to which an election has been made
under subsection (a), so much of the adjusted basis of the prop-
erty as (after the application of subsection (/)) constitutes the
amortizable basis for purposes of this section shall not be treated
as section 38 property within the meaning of section 48 (a).
"(i) Life Tenant and Remainderman.—In the case of property
held by one person for life with remainderman to another person,
the deduction under this section shall be computed as if the life
tenant were the absolute owner of the property and shall be allow-
able to the life tenant.
"(j) Cross Reference.—
"For special rule with respect to certain gain derived from the dis-
position of property the adjusted basis of which is determined with
regard to this section, see section 1245."
(b) Conforming, Etc., Amendments.—
(1) The table of sections for part VI of subchapter B of
chapter 1 is amended by striking out the item relating to
section 169 and inserting in lieu thereof the following new
item:
"Sec. 169. Amortization of pollution control facilities."
[p. 197J
(2) The heading and the first sentence of section 642 (f)
(relating to special rides for credits and deductions of estates
and trusts) are amended to read as follows:
-------
STATUTES AND LEGISLATIVE HISTORY 689
"(/) Amortization Deductions.—The benefit of the deductions
for amortization provided by sections 168, 169, 184, and 187
shall be allowed to estates and trusts in the same manner as in the
case of an individual."
(3) Section 1082 (a) (2) (B) (relating to basis for determ-
ining gain or loss) is amended by striking out "or 169" and
inserting in lieu thereof "169,184,185, or 187".
(4) Section 1245 (a) of such Code (relating to gain from
disposition of certain depreciable property) is amended—
(A) by inserting after paragraph (2) (C) (added by
section 212 (a) (1) of this Act) the following new sub-
paragraph :
" (D) with respect to any property referred to in para-
graph (3) (D), its adjusted basis recomputed by adding
thereto all adjustments attributable to periods beginning
with the first month for which a deduction for amortiza-
tion is allowed under section 169 or 185";
(B) by striking out "168" each place it appears in
paragraph (2) and inserting in lieu thereof "168, 169,
184, 185, or 187."
(C) by striking out "section 167" in paragraph (3)
and inserting in lieu thereof "section 167 (or subject to
the allowance of amortization provided in section 185)";
(D) by striking out "or" at the end of paragraphs (3)
(A) and (B) ;
(E) by striking out the period at the end of paragraph
(3) (C) and inserting in lieu thereof ", or"; and
(F) by adding at the end of paragraph (3) the follow-
ing newsubparagraph:
(D) so much of any real property (other than any
property described in subparagraph (B)) which has an
adjusted basis in which there are reflected adjustments
for amortization under section 169 or 185."
(5) Section 1250(b) (3) (relating to depreciation adjust-
ments) is amended by striking out "168" and inserting in lieu
thereof "168, 169, or 185".
(c) Effective Date.—The amendments made by this section
shall apply with respect to taxable years ending after December
31, 1968.
[p. 198]
4. Amortization of pollution control facilities (sec. 169 of the
code)
-------
690
LEGAL COMPILATION—GENERAL
Under the House bill, a taxpayer is allowed to amortize any
certified pollution control facility over a period of 60 months. The
amortization replaces the depreciation deduction, but the addi-
tional first year 20-percent depreciation allowance still is
available.
The Senate amendment made the following changes in the pro-
vision of the House bill:
(1) The amendment limits the amortization deduction to
pollution control facilities added to plants which were in oper-
ation on December 31, 1968.
(2) Under the House provision it is necessary for the ap-
propriate Federal authority to certify to the Treasury De-
partment that the facility meets minimum performance
standards which are to be promulgated by the Federal au-
thority from time to time and which must take technological
advances into account and specify the tolerance of such pollu-
tants and contaminants as is appropriate. The amendment
modifies this to provide that the Federal authorities are not to
establish effluent standards for water or emission standards
for air but rather are to set national guidelines for the stand-
ards to be specified by the States.
(3) The 5-year amortization deduction is to apply only to
those facilities placed in service before January 1, 1975.
(4) The 5-year amortization deduction is limited to the
proportion of the cost of the property attributable to the first
15 years of its normal useful life. Where property has a
normal useful life of more than 15 years one portion of the
facility is to be amortized over the 5-year period and the
remaining portion is to receive regular depreciation based
upon the entire normal useful life of the property.
The conference substitute (sec. 704 of the substitute and sec.
169 of the code) follows the Ssnate amendment.
[p. 326]
1.4a(5) CONGRESSIONAL RECORD, VOL. 115 (1969)
1.4a(5)(a) Aug. 7: Debated and passed House, pp. 22746, 22774-
22775
Mr. KLEPPE.
*****
Fixing the percentage differential
at 40 percent will mean that local
governments will be able to undertake
their large backlog of needed capital
projects even when tight money mar-
kets prevail. It means that municipal
governments will be able to enter the
money markets in all phases of the
-------
STATUTES AND LEGISLATIVE HISTORY
691
economic cycle and to obtain funds
for the needs of schools, sanitation
facilities, antipollution facilities, and
streets and highways.
*****
[p. 22746]
Mr. CONTE.
*****
I would also note the provision for
spreading the cost of pollution control
facilities over a 5-year period. I had
introduced a somewhat similar bill
earlier this year. I think it is a good
[p. 22774]
way to insure investment in antipollu-
tion devices.
[p. 22775]
1.4a(5)(b) Nov. 24, Dec. 5, 8,9: Debated and passed Senate,
pp. 35486; 37321-37322; 37631-37633; 37884-37888
Mr. BAYH.
*****
Other provisions of the bill, first, ex-
tend the income tax surcharge at a 5-
percent rate from January 1, 1970,
through June 30, 1970, second, post-
pone for an additional year the reduc-
tions in excise taxes on passenger auto-
mobiles and communications services
scheduled under present law; third,
terminate the investment credit for
property where construction, recon-
struction, or erection began after April
18, 1969; and fourth, provide 5-year
amortization for pollution control fa-
cilities and railroad rolling stock.
* * * * #
[p. 35486]
Mr. TYDINGS. Mr. President, I
submit an amendment, intended to be
proposed by me, to the bill (H.R.
13270) to reform the income tax laws.
This amendment would expand the
provisions of section 704 of H.R. 13270
to provide that amortization for certi-
fied pollution control facilities shall be
available for all of such facilities
added after December 31, 1968, to any
plant or property. The Finance Com-
mittee version of the bill would limit
amortization of pollution control fa-
cilities wihch are added after Decem-
ber 31, 1968, to plants or property
[p. 37321]
which were in operation on that date.
There would seem to be no justifica-
tion for discriminating against a tax-
payer by disallowing amortization for
any pollution control facility which
he adds to a new plant or property.
The Finance Committee recognizes the
problems of environmental pollution
which affect both the rural and urban
sections of the country. Pollution
abatement is one of the Nation's high-
est priority items.
Pollution control facilities do not in-
crease earnings and many industries
have not been as prompt in their in-
stallation as they should be. They are
costly to maintain and operate and re-
quire funds that otherwise would be
available for investments in productive
plants and equipment. Thus, amortiza-
tion for pollution control facilities
.should be available to facilities added
to new as well as existing plants.
The PRESIDING OFFICER. The
amendment will be received and
printed, and will lie on the table.
AMENDMENT NO. 377
Mr. TYDINGS. Mr. President, I
submit an amendment, intended to be
proposed by me, to the bill (H.R.
13270) to reform the income tax laws.
The amendment would amend section
704 of H.R. 13270 to provide for
amortization of any certified pollution
control facility regardless of its use-
-------
692
LEGAL COMPILATION—GENERAL
ful life. The Finance Committee ver-
sion of the bill would permit amortiza-
tion only for that part of the cost of
the pollution abatement facility that
is attributable to the first 15 years of
its useful life. There would seem to
be no justification for so limiting the
amortization provision. A taxpayer
who, because of the nature of his busi-
ness, is required to add pollution con-
trol facilities with a useful life of, say,
20 years should be entitled to recover
his capital investment in such facili-
ties in the same manner as another
taxpayer who, because of the nature
of his business, is required to add a
pollution control facility with a useful
life of only 15 years. The determina-
tion of the useful life of any asset,
including pollution control facilities, is
at best only an estimate. Technological
advances and obsolescence are most
difficult to determine for any asset.
By limiting the amortization of pollu-
tion control facilities to those with a
useful life of 15 years could only
cause taxpayers to attempt to bring
their particular pollution control fa-
cilities within the 15-year period,
thereby causing extended controversy
with Internal Revenue agents. Thus,
amortization for pollution control fa-
cilities should be available for any
facility, irrespective of its useful life.
The PRESIDING OFFICER. The
amendment will be received and
printed, and will lie on the table.
AMENDMENT NO. 378
Mr. JAVITS submitted an amend-
ment, intended to be proposed by him,
to H.R. 13270, supra, which was or-
dered to lie on the table and to be
printed.
AMENDMENT NO. 379
Mr. TYDINGS. Mr. President, I
submit amendments, intended to be
proposed by me, to the bill (H.R.
13270) to reform the income tax laws.
The first amendment would amend
the provisions of section 703 of H.R.
13270 to provide that certified pollu-
tion control facilities will be treated
as pretermination property for pur-
poses of the termination of the invest-
ment tax credit and thus will continue
to qualify for the 7 percent investment
credit. The Finance Committee version
of the bill provides several categories
of pretermination property which con-
tinue to qualify for the credit. I be-
lieve that certified pollution control
facilities should also be included as
pretermination property because of
the importance of providing incentives
for private industry to accelerate cap-
ital expenditures for pollution abate-
ment facilities. For Congress to repeal
the investment tax credit for air and
water pollution control facilities would
be particularly unfortunate in the
national efforts to curb industrial
pollution. Such repeal would be incom-
patible with the action taken by
Congress in 1966 in exempting invest-
ments in such facilities from the legis-
lation suspending the investment tax
credit. I urge my colleagues to con-
tinue the investment tax credit with
respect to air and water pollution
control facilities.
The second amendment would also
amend section 703 of H.R. 13270. That
amendment would provide that the in-
vestment tax credit shall be available
for certified pollution control facilities
irrespective of the date when they
were placed in service. Under the
Senate Finance Committee version of
the bill, any property placed in service
after December 31, 1978 would not
qualify for the investment tax credit.
The third amendment would amend
section 704 of H.R. 13270 to provide
that the investment tax credit is to be
available for certified pollution control
facilities which are subject to amorti-
zation. Under the Senate Finance Com-
mittee version of the bill, the invest-
ment tax credit would not be available
with respect to such facilities.
-------
STATUTES AND LEGISLATIVE HISTORY
693
The PRESIDING OFFICER. The
amendments will be received and
printed, and will lie on the table.
[p. 37322]
Mr. GORE.
*****
POLLUTION CONTROL FACILITIES
The committee bill also provides 5-
year rapid amortization for certain
pollution control facilities.
The Finance Committee considerably
tightened the House version. However,
the fact remains that we are utilizing
the tax system to grant $120 million
to corporations to clean up pollution
[p. 37631]
created by processes on which they
have been making- profits for the past
100 years or more. This expenditure is
inefficient and may well run counter
to the most effective means of achiev-
ing pollution control.
In 1967 a working committee on
economic incentives submitted a re-
port concluding that tax writeoffs are
not needed nor are they desirable for
achieving pollution control. This work-
ing group was made up of representa-
tives of the Bureau of the Budget, the
Treasury, the Council of Economic
Advisers, the Water Resources Coun-
cil, the Office of Science and Tech-
nology, the Department of the In-
terior, Department of Commerce,
HEW, and Resources for the Future.
I set forth pertient parts of the
report:
COST SHARING WITH INDUSTRY?
(Summary Report of the Working Commit-
tee on Economic Incentives (Revised), the
Working Committee is one of several Com-
mittees under the direction of the Federal
Coordinating Committee on the Economic
Impact of Pollution Abatement, November
20, 1967)
Proposals for assistance
Various proposals for additional assistance
to industry beyond obvious improvementa or
expansion of existing Federal programs were
evaluated as follows. Across-the-board assist-
ance for capital investment such as tax write-
offs (credits or accelerated depreciation) and
grants are unnecessary because the burden of
pollution abatement is estimated to be only
moderate. Also, this form of subsidy is in-
efficient because such assistance provides an
incentive for excessive use of capital and
practically excludes similar assistance to pro-
cess changes that jointly reduce pollution
and increase productivity. Moreover, such aid
is likely to be an undesirable precedent fot
using tax writeoffs for other programs (e.g.,
education, training, housing, etc.).
Recommendations
4. Across-the-board cost-sharing in the
form of tax writeoffs is not recommended
because it distorts the tax structure, causes
the total cost of pollution abatement to rise
significantly, promotes excessive use of cap-
ital equipment and waste treatment facili-
ties, and discourages selectivity in environ-
mental quality management. Across-the-board
use of grants and loans is similarly handi-
capped and, in addition, is subject to fluctua-
tions in Congressional appropriations.
POSSIBLE ADDITIONAL FEDERAL SUBSIDIES
Introduction
It was noted that the Federal Government
is now spending $l/2 billion per year for both
air and water pollution abatement and this
amount is forecast to increase markedly dur-
ing the next five years. The largest propor-
tion of these funds are now tunneled through
municipalities. Industry also receives consider-
able assistance from the 7% investment tax
credit and allowances for accelerated deprecia-
tion—perhaps as high as $50 million annually.
The size of current annual expenditures by
industry for water pollution abatement is
roughly estimated at $2/3 billion for water
and an unknown amount for air—or perhaps
roughly equal to the current Federal Govern-
ment expenditure and subsidy for this area.
The Government is already carrying a large
part of the burden.
The requirement for additional expendi-
tures is a function of water and air quality
standards, plant location, topography, stream
capacity, meteorology, production processes,
and pollutants. Before all of these factors
are weighed, only some rough estimates of
additional annual cost and burden for manu-
facturing can be made: $275 million and
0.13% of value-added by manufacturing for
watel and $354 million for air—or $629
-------
694
LEGAL COMPILATION—GENERAL
million and 0.29% of value-added for both
air and water (excluding thermal-pollution
abatement). For individual industries, firms
and plants the burden ia likely to vary
widely.
Finally, it is not clear that pollution abate-
ment need affect the firms' rate of profit in-
sofar as individual firms have considerable
flexibility to shift the small increase in the
costs from themselves to the purchasers of
their products. It is with this summary and
introduction in mind that the possible Fed-
eral subsidies will be examined.
TAX WRITEOFFS
Numerous proposals in Congress have been
made for offering greater assistance to indus-
try through increasing the investment tax
credit or accelerating the depreciation allow-
ances on capital expenditures for pollution
abatement. Proposals range from increasing
the investment tax credit from 7% to 14%
or 20% and/or from allowing depreciation
allowances normally scheduled over 15 years
to be scheduled over five, three or even one
year. The additional capital subsidy would
range from 7% for raising the investment
tax credit to 14% to 33% for implementing
a 20% tax credit and a one-year accelerated
depreciation schedule. (See Table X). The
subsidy would total roughly $296 million for
water and $75 million for air for the three-
year accelerated depreciation allowance if
applied to an estimate of the additional capital
required to meet the hypothetical standards
considered in this report.
However, the subsidy is in a small part
illusory because the assistance would be given
for a higher level of expenditure caused by
the subsidy creating an incentive to over-use
capital to the neglect of operating and main-
tenance expenditures. This would arise be-
cause capital costs are made artificially
cheaper by virture of a tax writeoff. Tax
writeoffs are handicapped because they are in-
capable of providing assistance to all of the
costs of abatement. The capital cost accounts
for roughly one-third of the total cost for
water pollution abatement and one-eighth
for air pollution abatement. Of course, with
subsidies given to capital alone, the capital
cost proportion will tend to rise and unneces-
sarily consume more resources. The addition
of chemicals or supervisory personnel often
times is less costly than building additional
capacity in order to treat larger waste loads.
Fuel substitution alone is estimated to be
the least-cost alternative in over 60% of the
cases involving air pollution abatement.
Moreover, tax writeoffs are difficult to apply
to many changes in the production process
which reduce the actual generation of waste
loads but which also add to the output of
plants. Other studies have shown that some
industries find that over 50% of the least-
costly opportunities for reducing waste load
discharges are found in such process changes.*
The Treasury Department would be faced
with the difficult task of certifying the pro-
portion or the cost attributable for pollution
abatement or disallowing any assistance for
this kind of improvement. To the extent of the
proportion disallowed, plants would be given
an incentive to ignore many improvements
which have been shown to be least costly.
Also, the implementation of selective write-
offs for pollution abatement opens the door
for other programs to receive similar treat-
ment. Proposals for tax writeoffs for training,
education, mining, transportation, housing and
others have already been made. The snow-
balling effect for industry could be, conceiv-
ably, a necessary increase in the corporate
tax structure or lag in the long-run reduction
of corporate tax rates and thus no net bene-
fit to firms facing pollution abatement ex-
penditures. Moreover, public accountability
of such subsidies are difficult and would
probably create an annoying problem in its
removal once social policy dictates a change.
TABLE X.-COMPARISON OF THE ADDITIONAL SUBSIDY TO INDUSTRY THROUGH ALTERNATIVE
FORMS OF FEDERAL ASSISTANCE 1
Type of assistance
Accelerated: 5 yrs
Depreciation:
3 yrs.
1 yr
Additional (7 plus 7) .. . .
Tax creditsOS plus 7)
Subsidy as
percent of
capital cost
13
16
20
18
25
Subsidy as a percent of
annual cost '
Water Cost
5 2
6 3
9 4
2 1
5 2
Rough estimate of likely
assistance to industry for
capital expenditures to
meet hypothetical stand-
ards in 5 years 1969-73 >
(millions)
Water < Air «
{241 $61
296 75
370 94
130 33
251 61
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STATUTES AND LEGISLATIVE HISTORY
695
TABLE X.—COMPARISON OF THE ADDITIONAL SUBSIDY TO INDUSTRY THROUGH ALTERNATIVE
FORMS OF FEDERAL ASSISTANCE1—Continued
Rough estimate of likely
assistance to industry for
Subsidy as Subsidy as a percent of capital expenditures to
Type of assistance percent of annual cost2 meet hypothetical stand-
capital cost ards in 5 years 1969-733
(millions)
Water
Cost
Water *
Air'
Accelerated depreciation and tax credit combined:
14 percent credit and 3-yr. accelerated depre-
ciation -
20 percent tax credit and 1-yr . accelerated depre-
ciation _.
Reduced interest loans:'
6 percent (3 percent below d iscount rate) -
4 percent (5 percent below discount rate)
35
46
11
17
10
17
4
7
5
8
2
3
426
611
204
315
108
155
52
80
> Assume 48 percent effective tax rate, 15-year functional life (straight line) for pollution abatement facilities and 9-per-
cent discount rate. Excluding accelerated depreciation now available in existing tax laws, e.g., sum of digits or double
declining balance.
! Includes annual capital cost (amortized) and operation and maintenance expenditures, increase in total cost of abate-
ment because of excessive use of artificially cheaper capital costs.
* Assuming all capital expenditures are subsidized whether to industry or households. Capita I costs would undoubtedly
drop after the initial investments are made to achieve standards.
< Based on industrial profiles: $1.15 billion additional investment plus $0.7 billion replacement investment which equals
$1.85 billion for BOD and suspended solids for hypothetical standard of 85 percent treatment of Industrie I wastes.
1 Assuming 20 years of additional capital investment is made in 5 years. The total capital as indicated by the "typical
city" study should be $470,000,000 to achieve a hypothetical standard of reducing human exposure by 60-75 percent of
SOx and particulates.
8 15 years, straight reduction loan, 9 percent discount rate for industry (if assume 6 percent then zero gam for 6 percent
interest loan and 7 percent or $71,000,000 gam for 4 percent interest loan).
In summary, clearly tax writeoffs are not
needed nor are they a desirable form for of-
fering further assistance to industry-
Mr. President, it is sometimes argued
that industry cannot afford to make
the expenditures required for pollu-
tion control. However, the report
shows that the additional cost of
achieving Government standards of
pollution abatement would only amount
* For example in the case of water, see
Kneeae, Allen and Lof, Georgre. The Economics
of Water Utilization in the Beet Sugar In-
dustry, Manuscript, Resources for the Future.
[p. 37632]
to $0.5 billion for all manufacturing
concerns annually, or one-half of 1
percent of the value added by manu-
facturing. The report points out that
there are already many Government
programs to reduce the cost of pollu-
tion control. Indeed, we have recently
passed in the Senate a $1 billion anti-
pollution measure. As the report con-
cludes, tax incentives simply are not
needed, especially when they produce
the unfairness and inequity in the
tax system that they in fact do.
[p. 37633]
Mr. CURTIS.
The provision for 5-year writeoff of
the cost of installing air and water
pollution control facilities in existing
plants also deserves our complete sup-
port. Again, this provision has been
narrowly limited to achieve a very
specific purpose. The revenue cost will
reach a maximum of only $120 million
in the long run. It applies only to
installation of facilities in existing
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696
LEGAL COMPILATION—GENERAL
plants, thereby recognizing that it is
much less of a burden on industry to
incorporate anti-pollution equipment in
plants constructed in the future. It is
also limited to the portion of the cost
of the facilities that would otherwise
have been depreciated over the first 15
years of the life of such equipment,
so that it does not provide an undue
tax benefit with respect to equipment
having a very long life.
The PRESIDING OFFICER. The
time of the Senator has expired.
Mr. CURTIS. May I have 2 addi-
tional minutes?
Mr. LONG. I yield 2 additional min-
utes to the Senator from Nebraska.
Mr. CURTIS. This provision recog-
nizes the absolute need to deal with a
major national problem today—en-
vironmental pollution. Our rivers,
lakes streams, and atmosphere are
becoming increasingly "dirty." Smog
is no longer a Los Angeles condition;
[p. 37884]
we find it in nearly every major in-
dustrial city in the United States.
Congress has addressed itself to the
problem in a number of ways, but the
responsibility and burden must really
be placed on private industry. Exist-
ing factories which attempt to curb
pollution by installation of anti-pollu-
tion equipment face significant in-
creases in capital costs, accentuated
by repeal of the investment credit.
Such expenditures do not result in any
increase in profitability; they are in
a real sense a total loss to the com-
pany. The burden is greatest with re-
spect to existing plants where the
equipment cannot be incorporated in
the design of the facilities or the pro-
ductive processes, but must be "added
on." The bill recognizes this difference
and allows the tax benefit only with
respect to existing plants.
Mr. President, the increasing magni-
tude of our pollution problem fairly
demands that we provide some tax
benefit, some incentive, for installation
of pollution control equipment. The
provision of the bill will replace the
nvestment credit in this respect and
provide even greater incentive in the
narrower and more specific areas to
which it will apply.
Mr. President, these three provi-
sions will provide major incentives to
private industry to help us meet im-
portant national objectives. They will
ncourage the private sector to should-
r the burden in meeting our housing,
transportation, and pollution, control
needs—three of our most important
domestic problems. I strongly urge
their adoption.
The PRESIDING OFFICER. The
time of the Senator has expired.
Mr. LONG. I yield 1 additional
minute to the Senator from Nebraska.
Mr. BOGGS. Mr. President, will the
Senator yield?
Mr. CURTIS. I yield.
Mr. BOGGS. Mr. President, I com-
mend the distinguished Senator from
Nebraska for the position he has
taken. I support the committee lan-
guage on amortization of equipment
that will be used for pollution abate-
ment, as well as the other items the
Senator has discussed so eloquently.
I wish to ask the Senator one ques-
tion. It appears to me that there is
no danger that this incentive to achieve
clean water and clean air would open
a loop-hole into which industry could
push a new blast furnace or elevator
and call it "pollution equipment." The
deduction would be available only
after the facility was certified as a
pollution abatement facility by the
appropriate State and Federal agen-
cies. Is that correct?
Mr. CURTIS. The Senator is cor-
rect. And it does not apply to new
structures, because they can be de-
signed to eliminate the problem.
Mr. BOGGS. Mr. President, the lan-
guage of the section we are discussing
permits industry to amortize the cost
of pollution abatement facilities in a
5-year period. It would be applicable
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STATUTES AND LEGISLATIVE HISTORY
697
for the full cost of equipment with a
normal life of 15 years or less. If
the equipment has a normal life be-
yond 15 years, part of the equipment
would be amortized over the regular
depreciation basis, part under the ac-
celerated schedule.
This provision, I believe, is a neces-
sary incentive to assure that each of
us will find a cleaner and better en-
vironment as quickly as possible. To
assure that this vital end is accom-
plished rapidly, the Finance Com-
mittee wrote into this section a pro-
vision that this amortization would
be available only if the abatement
equipment is placed into operation by
the end of 1974.
There is no danger that this incen-
tive to achieve clean water and clean
air would open a loophole into which
industry could push a new blast fur-
nace or elevator and call it "pollution
equipment." The deduction would be
available only after the facility was
certified as a pollution abatement fa-
cility by the appropriate State and
Federal authorities.
Such incentive will implement our
national policy of environmental en-
hancement. This is a policy laid down
in large part in legislation that has
come from the Subcommittee on Air
and Water Pollution, on which I have
the honor to serve as ranking Re-
publican.
Let me give two examples. The
Federal Water Pollution Control Act
declares a "national policy for the
prevention, control, and abatement of
water pollution." The Clean Air Act
was written, according to its language,
"to protect and enhance the quality of
the Nation's air resources so as to pro-
mote the public health and welfare
and the productive capacity of its
population."
But such improvements cost vast
sums of money. This is not a moderni-
zation from which industry will profit.
It is a modernization for the public
health and welfare. Pollution comes
from two major sources, industry and
government. The Federal Government
helps local communities battle pollu-
tion. It is only equitable to offer this
small advantage to industry.
Our environmental quality stand-
ards require industry to meet those
standards, or the Government will go
into court in an abatement proceeding,
seeking to close the plant down. This
is a weary and tedious process. I be-
lieve it is a far wiser approach to
offer the private sector an inducement,
such as the committee's proposal. In
return for an amortization schedule
that would cost the Treasury $15 mil-
lion in 1970, the private sector will
install equipment to give every Amer-
ican a cleaner, healthier, and better
environment in which to live.
According to the Cost of Clean
Water, a study by the Department of
the Interior, private industry faces a
cost of as much as $2.6 billion to pay
for the backlog of water pollution con-
trol facilities in the period from now
through 1973. According to estimates
prepared by the Department of Health,
Education, and Welfare and contained
in the study, the Cost of Clean Air,
industry faces another 3.2 billion dol-
lar bill for the control of particulate
matter and sulfur dioxide emissions
into the air we breathe. This cost from
next year through 1974 may under-
estimate in part the full needs, for it
was partially based on information
for only 85 metropolitan areas and
selected industries.
This expense will produce no private
profit. Rather, it will produce a public
benefit for each and every American.
It will clean the air across this Na-
tion. It will improve the quality of
life across this Nation. It will enhance
the environment in each of the 50
States of our Nation. Rather than
providing any private loophole, this
provision of the tax bill creates an
incentive that will result in a great
public benefit.
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698
LEGAL COMPILATION—GENERAL
Mr. LONG. Mr. Presirent, how much
time remains?
The PRESIDING OFFICER. The
Senator from Louisiana has 8 min-
utes.
Mr. LONG. How much time re-
mains for the proponents?
The PRESIDING OFFICER. Five
minutes.
Mr. LONG. I yield 4 minutes to the
Senator from Maine.
Mr. MUSKIE. I thank the Senator
from Louisiana.
Mr. President, I rise to oppose that
portion of the Gore amendment which
has to do with the amortization of pol-
lution control facilities in the case of
both air and water.
As chairman of the Subcommittee
on Air and Water Pollution, I have
been concerned, as have all my col-
leagues on the subcommittee, includ-
ing the distinguished Senator from
Delaware (Mr. BOGGS), with the
problem of stimulating the construc-
tion of waste treatment facilities in
the public sector.
This year, with the cooperation of
the distinguished Senator from Loui-
siana (Mr. EI/LENDER), Congress has
approved the appropriation of $800
million for the construction of mu-
nicipal waste treatment plants. This
action on the part of Congress is con-
sistent with the rising surge of inter-
est and concern on the part of the
people of America that we deal ef-
fectively with the pollution threat to
our air and water.
Although in the subcommittee we
do not have jurisdiction over tax leg-
islation, the subcommitte—going back
to 1966 in the report on the 1966
Clean Water Restoration Act—-has
advocated tax incentives to mount an
industrial effort comparable to the
public effort.
Mr. President, I ask unanimous con-
sent that there be included in the
RECORD at this point, a statement from
that committee report.
There being no objection, the state-
ment was ordered to be printed in
the RECORD, as follows:
A number of witnesses testified on the need
for tax incentives as a means of reducing the
cost of noneconomic pollution control facil-
ities. This is not a matter over which the
Senate Public Works Committee has jurisdic-
tion but it affects the overall effort to meet
water pollution control and abatement needs.
This committee strongly recommends that
the appropriate congressional committees give
consideration to tax relief proposals for in-
dustrial pollution control activities.
For the most part, pollution control does
not provide a return on an investment to an
industry. Installation of pollution control de-
vices is costly and, in many cases, nonremu-
nerative. The billion dollars of capital invest-
ment which will have to be made by the in-
dustrial sector for the benefit of the entire
society will place a substantial burden on
corporate resources, and ultimately on the
general public.
Mr. MUSKIE. Mr. President, I ask
[p. 37885]
unanimous consent to have printed
in the RECORD a letter which I ad-
dressed to the distinguished Senator
from Louisiana, the chairman of the
Committee on finance, with regard to
this matter on July 29, 1969.
There being no objection, the letter
was ordered to be printed in the
RECORD, as follows:
JULY 29, 1969.
Hon. RUSSELL B. LONG,
Chairman, Senate Finance Committee,
New Senate Office Building,
Washington, D.C.
DEAR MB. CHAIRMAN: Pursuant to your
request for comments and recommendations
on pending legislation which would extend
the income tax surcharge, I would like to
propose changes to Sec. 168 which provides
rapid amortization for air and water pollu-
tion control facilities investment.
This section has two major faults. First,
the section does not take into account the
provisions of the Federal Water Pollution
Control Act or the Clean Air Act. Second, the
requirement for the development of minimum
performance standards is inconsistent with
existing policy and would delay environmental
improvement programs for several years.
As you know, Federal pollution control
legislation has recognized the primary re-
sponsibility of the states and local government
-------
STATUTES AND LEGISLATIVE HISTORY
699
to control pollution. Federal responsibility is
primarily directed to reviewing state standards
to assure consistency with the national policy
of the enhancement of air and water quality.
Federal authority is provided . for in those
cases where the states have failed to carry
out their responsibility to set or enforce
standaids.
Also, I am sure you are aware that these
laws have been in effect for several years, the
Water Quality Act since 1965 and the Air
Quality Act since 1967. The procedures set
forth by these acts are now being implemented
by the States.
Any requirement for minimum perform-
ance standards would seriously delay effec-
tive implementation of these laws during the
development of such minimum standards.
Furthermore, because the regional approach
is an integral part of effective air and water
quality programs, minimum national stand-
ards would not be relevant to the specific
problems of any given region.
Finally, minimum performance standards
as defined in H.R. 12290 would be tantamount
to national emission standards, a concept
carefully evaluated and rejected in favor of
the regional approach to air quality in 1967.
I have developed an amendment to Section
168 which I believe assures consistency with
the Federal pollution law without jeopardiz-
ing the usefulness of special tax incentives
for pollution control investment.
My amendment would:
1. Require certification from the state as to
conformity with plans for implementation of
air or water quality standards;
2. Provide Federal review of state certifica-
tion to assure consistency with the purposes
of the Federal Water Pollution Control Act or
the Clean Air Act;
3. Eliminate the requirement for minimum
performance standards;
4. Provide for annual state review, during
the period of accelerated depreciation, to as-
sure that facilities operate in the manner for
which they were certified; and,
5. Disallow use of the tax deduction to the
extent that such facilities produce income.
I sincerely hope that members of your Com-
mittee will give serious consideration to this
amendment.
Sincerely,
EDMUND S. MUSKIE,
U.S. Senator, Chairman, Subcommittee
on Air and Water Pollution.
Mr. EIBICOFF. Mr. President, will
the Senator yield?
Mr. MUSKIE. I yield.
Mr. RIBICOFF. Mr. President, no
man in this country has done more in
the field of controlling air and water
pollution than the Senator from Maine.
I am sure the distinguished Senator
from Maine would agree that we will
never solve the problem of air and
water pollution unless we have the
cooperation of private industry.
Mr. MUSKIE. I agree wholeheart-
edly with the Senator.
Mr. RIBICOFF. Is it not a fact
that one of the great problems we
have is the problem of costly installa-
tions and antiquated plants for air
and water pollution devices?
Mr. MUSKIE. The Senator is cor-
rect.
Mr. RIBICOFF. What it often
means is that an old company, which
might be required to pay large sums
for air and water devices, might de-
termine that it is cheaper to go out
of business rather than to undertake
the rehabilitation of these old plants
in the industrial sections of our Na-
tion. Is that correct?
Mr. MUSKIE. The Senator is cor-
rect.
Mr RIBICOFF. It is my under-
standing that through the landmark
work of the Senator, the Congress
this year has committed itself for an
expenditure of $800 million in the
entire field of water pollution alone.
As a matter of public policy if we do
not have an overall program that in-
volves private industry, our public
commitment will not achieve the re-
sult we seek. Is that correct?
Mr. MUSKIE. The Senator is cor-
rect. Under the Air and Water
Quality Control Act we undertook to
apply standards of quality in the
cities which have air pollution prob-
lems, and all streams which have water
pollution problems, and there are
many of them. To apply those stand-
ards we must have the cooperation of
industry.
Mr. RIBICOFF. The Senator may
be interested in the fact that the act
is so written by the Committee on
Finance that the amortization de-
duction is available only when the
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700
LEGAL COMPILATION—GENERAL
facility is certified by the State and
Federal agency.
The PRESIDING OFFICER (Mr.
BAYH in the chair). The time of the
Senator has expired.
Mr. LONG. Mr. President, I yield
1 additional minute.
Mr. RIBICOFF. So we tie up certi-
fication with State and Federal agen-
cies.
Mr. MUSKIE. These are not profit-
making facilities. The language to
which the Senator referred is part of
the language I recommended to the
committee to avoid the possibility that
these facilities would be profitmaking
facilities. What we are concerned with
are facilities that deal wholly with
control and regulation of pollution;
no profit would be made from them,
but there is still an investment to be
made by the industry.
This tax relief is only a stimulation
to industry to make the investments
called for by air and water quality
standards.
Mr. RIBICOFF. In addition, these
amortization tax writeoffs are avail-
able only to old plants and not to new
plants.
Mr. MUSKIE. The Senator is cor-
rect.
Mr. RIBICOFF. Mr. President,
each day it is becoming more evident
that man is destroying his environ-
ment. Each year, he pumps millions of
tons of waste into the sky and dumps
huge amounts of sewage and con-
taminants into streams and rivers.
Only the foolish can expect nature
to be able to continue to absorb this
pollution.
In the last 5 years, Congress has
laid the foundation for a national ef-
fort against this problem by adopting
comprehensive air and water pollu-
tion control legislation. And just a
few short weeks ago, the Senate voted
$1 billion to help our Nation's mu-
nicipalities construct waste treatment
plants.
But, by themselves, these efforts will
not be enough.
To launch a truly comprehensive
assault against air and water pollu-
tion, private industry, which is a
major source of this waste, must be
encouraged to purchase and utilize the
best pollution abatement equipment
available.
It has been estimated that it will
cost industry $32 billion to control
water pollution by the year 2000.
Private industry and municipalities
will pollute two-thirds of our streams,
the National Academy of Science pre-
dicts.
Forty percent of the contaminants
in our atmosphere come from industry
and utilities.
The bill before us now, will greatly
encourage private industry's purchase
of equipment to end this destruction
of our environment by allowing it to
amortize the cost of the equipment
over a period of 5 years rather than
over the period of the equipment's use-
ful life.
We muFt bo realistic.
Pollution abatement equipment is
costly.
Pollution abatement equipment does
not add to a company's profits.
Unless industry is encouraged by
the enactment of a tax incentive, real
progress in ending industrial pollution
will take much longer than this Na-
tion can afford.
By asking the public to bear a small
share of the cost of abating industrial
pollution, we will bring clean air and
clean water much sooner to our Na-
tion.
The committee's bill is very tightly
drafted to encourage cooperation by
industry without creating a loophole.
I support this bill.
The PRESIDING OFFICER. Who
yields time?
Mr. GORE. Mr. President, I yield
such time as he may use to the senior
Senator from Delaware.
Mr. WILLIAMS of Delaware. Mr.
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STATUTES AND LEGISLATIVE HISTORY
701
President, in the bill before the Senate
we have reduced the rate at which
every taxpayer can depreciate his
property for tax purposes, and that in-
cludes farm buildings and property
used by small businesses. This was
done by denying the use of the 200-
percent declining balance method for
all nonresidential property. Thus, tax-
payers will only be able to depreciate
the property under the 150-percent
declining balance method.
That is true with respect to all
groups of American taxpayers except
[p. 37886]
these three groups mentioned here
which had lobbies strong enough to
get special consideration to recognize
a good argument can be made on any
why they should be singled out and
one of these proposals, but cannot see
allowed to depreciate their property
in 5 years when we are making it
more difficult for other taxpayers in
America.
SPECIAL AMORTIZATION PROVISIONS
The committee bill adds three new
special incentive provisions to the tax
law. These special provisions allow a
5-year writeoff: for low-cost rental
housing rehabilitation expenditures,
for pollution control equipment, and
for railroad rolling stock. In 1970
these special incentive provisions would
cost the Government $155 million. This
cost would eventually rise to $555
million a year.
Congress has already authorized an
expenditure of $800 million to sub-
sidize the correction of the pollution
problem.
The special rehabilitation expendi-
ture provision in the bill allows 5-
year amortization of costs incurred in
rehabilitating buildings for low cost
•4 rental housing—for up to $15,000 of
• costs per dwelling unit. This provision
applies to expenditures before 1975.
It should be pointed out that in this
bill, in addition to this provision, un-
der certain conditions we have also al-
lowed these persons to defer the capital
gains treatment which would arise
when they sell the housing. They could
not only depreciate the property in 5
years, but they could sell it and rein-
vest in other regular property and pay
no capital gains tax.
This would open a major loophole
which will not benefit those tenants
using this low cost housing. It is a
landlord's amendment.
Mr. AIKEN. Mr. President, will the
Senator yield?
Mr. WILLIAMS of Delaware. I
yield.
Mr. AIKEN. Would it apply to in-
dividually owned homes or only to
rental housing?
Mr. WILLIAMS of Delaware. No.
Only to rental housing.
The special pollution control pro-
vision allows 5-year amortization of
the costs of pollution control facilities
added to existing plants. The amount
amortizable is limited to the part of
the facility's cost which is proportion-
ate to the first 15 years of its useful
life. A facility must be certified by the
appropriate State and Federal au-
thorities to be eligible for this special
amortization. This provision applies to
facilities placed in service before 1975.
The special railroad provision allows
5-year amortization for new railroad
rolling stock—including locomotives—
placed in service after 1969. The amor-
tization is available either where the
rolling stock is owned by a railroad
or where it is owned by a person who
leases it to a railroad—4-year amorti-
zation is allowed for rolling stock
placed in service during 1969. If other-
wise available, the investment credit
also may be claimed on rolling stock
subject to this fast amortization. Ef-
fective after 1972 the Secretary of
the Treasury may determine which
classes of rolling stock are no longer
in short supply, and these classes will
then cease to be eligible for the fast
amortization. This provision applies to
-------
702
LEGAL COMPILATION—GENERAL
rolling stock placed in service before
1975.
The railroad package included in
the bill also allows the cost of rail-
road gradings and tunnel bores, which
at present may not be written off, to
be amortized over a 50-year period. In
addition the package allows railroads
to write off rolling stock repair costs
up to 20 percent of the rolling stock's
original cost each year.
These special incentives included in
the bill are an unwarranted and inap-
propriate use of the tax laws. There
has been no adequate showing that
these special incentives will, in fact,
help to achieve their respective goals.
More than likely these special incen-
tives will only serve to provide undue
tax benefits to a small number of tax-
payers in the eventual large amount
of $555 million a year.
Mr. GORE. Mr. President, will the
Senator yield?
Mr. WILLIAMS of Delaware. I
yield.
Mr. GORE. Mr. President, in the
colloquy just engaged in on this side
of the aisle by the Senator from
Maine (Mr. MUSKIE) and the Senator
from Connecticut (Mr. RIBICOFF),
both of them made commendable state-
ments about the need for pollution
control, but nothing that either one
of them said had any bearing on the
syndicate loophole. The same example
I pointed out in the RECORD with re-
spect to syndicate investment in a
railroad locomotive would apply to
an investment in machinery for pol-
lution control. The Senator said they
make no profit out of this. Of course
not. But fie syndicate will buy it
under this loophole.
Mr. WILLIAMS of Delaware. Mr.
President, I do not see why we should
make the depreciation rate so much
more liberal for these groups while at
the same time we are restricting the
depreciation rates allowed to all other
American taxpayers, whether it be de-
preciation on a farm in Vermont or
a poultry farm in some other State.
I have always felt we should allow
more rapid depreciation rates for all
buildings and equipment, but deple-
tion rates should apply to all taxpay-
ers, not just to a few select groups.
Mr. PEARSON. Mr. President, will
the Senator yield?
Mr. WILLIAMS of Delaware. I
have no time remaining.
Mr. LONG. Mr. President, I yield
myself such time as I have remaining.
The PRESIDING OFFICER. The
Senator has 3 minutes remaining.
Mr. LONG. Mr. President, this
amendment should be rejected. There
may be some merit to some parts of
the Gore amendment but there are
other parts that are totally without
merit. For example, the House of Rep-
resentatives sent us a provision that
would cost the Treasury $400 million
by allowing a 5-year writeoff on pol-
lution-control devices. The Senate
committee reduced that to a provi-
sion which would cost less than one-
third that much—only $120 million a
year. The Senate committee would
provide a 5-year amortization between
now and 1974 for pollution-control de-
vices which are installed, not on the
new plants that will be built—they
get no advantage—but on existing
plants.
As far as people who own and oper-
ate plants are concerned, the require-
ment to install pollution control
equipment is nothing more than a bur-
den imposed upon them by Govern-
ment. They do not want pollution-
•ontrol devices. We are making them
install this equipment under State
•ind Federal law, and we now are al-
lowing them 5 years to write it off.
The equipment does not improve the
operation of the plant.
It is an added cost to them which
they do not want.
We are imposing the burden on
them. So we are easing that burden
by giving them 5 years to write off
-------
STATUTES AND LEGISLATIVE HISTORY
703
the costs of installing them in exist-
ing plants.
With regard to the second item,
which would cost more than the other
two put together, the $15,000 allow-
ance is for rehabilitation of housing
units in slum areas. It would allow no
more than $15,000 per unit for re-
habilitation of housing in slum areas.
That provision was asked for by Sec-
retary Romney of the Department of
Housing and Urban Development. It
initially was agreed to by the House,
and then was approved by the Senate
Finance Committee. It is an incentive
of $330 million to provide poor people
with better housing.
What on earth is wrong with that?
I have not yet heard the first argu-
ment developed. If we want people
living in slums in Washington, New
York, Philadelphia, or elsewhere, to
have better housing, cleaner housing,
fewer rats, and more sanitation, then
vote against the Gore amendment.
If the Senator wants to come back
and offer his railroad amendment
again, he can, but I submit that we
need more new railroad rolling stock.
The Treasury has recommended it.
I think it should be agreed to.
I hope the amendment will be re-
jected.
The PRESIDING OFFICER. All
time on the amendment has now ex-
pired.
Mr. GORE. Mr. President, I ask
unanimous consent that the time be
extended by 4 minutes, with 2 min-
utes to a side.
The PRESIDING OFFICER. Is
there objection to the request of the
Senator from Tennessee? The Chair
hears none, and it is so ordered.
The Senator from Tennessee is rec-
ognized for 2 minutes.
Mr. GORE. Mr. President, for the
last week, it has been rolling stock.
Now it is pollution we hear about. No
one defends the change of words. On
page 443 of the bill it changes the
House requirement from "owned" to
"used." This opens up the syndicate
loophole. And it is a big one.
Let me read what a committee of
experts on pollution recommended.
The committee was made up of rep-
resentatives of the Bureau of the
Budget, Treasury Department, Coun-
cil of Economic Advisers, Water Re-
sources Council, Office of Science and
Technology, Department of the In-
terior, Department of Commerce, De-
[p. 37887]
partment of HEW, and the Resources
of the Future Committee.
What do they say?
In summary, clearly tax writeoffs are not
needed nor are they a desirable form of offer-
ing further assistance to industries.
Mr. President, this is not a profit-
making undertaking except for the
syndicates. That is what the provi-
sion in the committee bill makes pos-
sible.
Mr. MUSKIE. Mr. President, will
the Senator from Tennessee yield?
Mr. GORE. I yield.
Mr. MUSKIE. The report to which
the Senator refers was made by the
same representatives from the last
administration who opposed a con-
tinuing grant program for waste
treatment.
Mr. LONG. Mr. President, the Sen-
ator quoted from a report that con-
sidered the proposal relating to new
plants as well as existing plants. It
was partly because of that logic that
the committee said it would not allow
a rapid tax writeoff, or any tax ad-
vantage, for pollution control equip-
ment in new plants. The people who
build new plants will have to do it
themselves by designing pollution con-
trol equipment and processes into
their new plants, and they will re-
ceive no special tax advantage. In do-
ing so, we save $280 million out of
$400 million. The $120 million we re-
tained applies to any situation where
someone is required to add to an exist-
-------
704
LEGAL COMPILATION—GENERAL
ing plant pollution control devices
which are of no productive advantage
to them whatever. These are costs
which we will let them write off over
5 years.
Mr. MILLER. Mr. President, will
the Senator from Louisiana yield?
Mr. LONG. I yield.
Mr. MILLER. The Senator from
Tennessee read something to the effect
that writeoffs would be no incentive.
I hope he does not mean by that that
the base would not be entitled to reg-
ular depreciation or to a double de-
clining balance depreciation for that
is another form of writeoff. The quick
amortization is another form of write-
off. Thus, I do not see that that is re-
sponsive to the problem.
Mr. CURTIS. Mr. President, I ask
unanimous consent that a letter from
the Acting Secretary of the Treasury
concerning the Gore amendment be
printed in the RECORD.
There being no objection, the letter
was ordered to be printed in the REC-
ORD, as follows:
THE SECRETARY OF THE TREASURY,
Washington, D.C.
Hon. CARL T. CURTIS,
U.S. Senate,
Washington, D.C.
DEAR SENATOR CURTIS: This is in response
to your request for the Treasury Depart-
ment's views with respect to Amendment
No. 389, introduced by Senator Gore. The
purpose of the amendment is to strike from
the bill the provisions for B-year amortiza-
tion for the cost of rehabilitation of low-in-
come housing, railroad rolling: stock and pol-
lution control facilities.
The Treasury Department opposes the
amendment.
The first of these provisions will encourage
the rehabilitation of low-income rental hous-
ing units which is needed if we are to pro-
vide adequate housing for all our citizen!
The provision for amortization of railroac
rolling stock will alleviate the critical short-
age of railroad cars and has been provide<
in lieu of any exception to the investment
credit. While we have been concerned about
the amortization of pollution control facili-
ties, we believe that the provision in thi
Senate bill has been sufficiently narrowed to
prevent abuse.
It is important to note that all three o;
hese provisions expire on January 1, 1978,
:hereby giving assurances that they will not
be continued unless they accomplish the
desired purpose.
Sincerely yours,
CHARLES E. WALKER,
Acting Secretary.
CONGRESS SHOULD NOT WEAKEN THE
PROGRAM FOR POLLUTION CONTROL
Mr. RANDOLPH. Mr. President,
.t is vital to the maintenance of na-
;ional policy of air and water pollu-
tion control that the language of sec-
tion 704 of H.R. 43270, as reported
the Finance Committee, be re-
fined. The investment credit with re-
spect to pollution facilities is essential
if we are to maintain and advance
our efforts to protect our air and
water environment from pollution.
Massive private investment in in-
dustrial air and water quality control
devices are needed to insure that our
production processes do not destroy
the environment in which we live. Two
recent reports, "The Cost of Clean
Water," Senate Document 90-65, pre-
sented to the Senate January 10,
1968, and "The Cost of Clean Air,"
Senate Document 91-40, June 1969,
describe in detail the magnitude of
the private investment required.
The clean water report indicates
that the cash outlays needed to meet
industrial waste treatment require-
ments for fiscal years 1969 through
1973 are between $2.6 and $4.6 bil-
lion. The clean air report estimates
the cost of control of just particulate
emissions and sulfur oxides at be-
ween $266 and $500 million for fiscal
years 1971 through 1974.
Until a better method of stimulating
needed private investment and Gov-
ernment assistance to private indus-
try in reaching this important public
goal is achieved, the investment credit
represents the best-known technique.
The revenue loss entailed in this ap-
proach will be offset many times by
the reduction in other public invest-
ments to counteract environmental
-------
STATUTES AND LEGISLATIVE HISTORY
705
degradation. Next year, the Commit-
tee on Public Works will look into
other ways and means of effectively
accomplishing the result we seek. In
the meantime, the provisions of sec-
tion 707 of the bill offer the best hope
for insuring the full participation of
the industrial community in our earn-
est efforts for a better, cleaner air and
water environment.
The PRESIDING OFFICER. All
time on the amendment has now ex-
pired.
The result was announced—yeas 3,
nays 92, ***.
*****
So Mr. GORE'S amendment was re-
jected.
Mr. CURTIS. Mr. President, I move
to reconsider the vote by which the
amendment was rejected.
Mr. LONG. I move to lay that mo-
tion on the table.
The motion to lay on the table was
agreed to.
[p. 37888]
1.4a(5)(c) Dec. 22: Senate agrees to conference report, p. 40718
[No Relevant Discussion on Pertinent Section]
1.4a(5)(d) Dec. 22: House debates and agrees to conference
report, pp. 40820,40900
[No Relevant Discussion on Pertinent Section]
-------
706 LEGAL COMPILATION—GENERAL
1.5 DEPARTMENT OF TRANSPORTATION ACT
AS AMENDED
49 U.S.C. §§1651,1653(f), 1655(g), 1656 (1968)
Sec.
1651. Congressional declaration of purpose.
1652. Establishment of Department.
(a) Desigation and appointment of Secretary of Transportation.
(b) Under Secretary; appointment; functions, powers, and duties.
(c) Assistant Secretaries; General Counsel; appointment; functions,
powers, and duties.
(d) Assistant Secretary for Administration; appointment; func-
tions, powers, and duties.
(e) Federal Highway Administration; Federal Railroad Administra-
tion; Federal Aviation Administration; establishment; Ad-
ministrators and Deputy Federal Aviation Administrator;
appointment, functions, powers and duties; transfer of func-
tions.
(f) National Traffic Safety Bureau; National Highway Safety
Bureau; establishment; appointment of Directors; transfer
and continuation of office of Federal Highway Administrator
under title of Director of Public Roads.
1653. General provisions.
(a) Responsibilities of Secretary of Transportation; leadership,
consultation, and coordination.
(b) Congressional policy standards for transportation; prohibition
againnst adoption of standards or policy without appropriate
Congressional action.
(c) Judicial review of orders of the Secretary, National Transporta-
tion Safety Board, and Administrators.
(d) Carryover of authority to Secretary, Administrators, and Na-
tional Transportation Safety Board from departments and
agencies formerly exercising functions and duties.
(e) Safety record of applicants seeking operating authority from
Interstate Commerce Commission.
(f) Maintenance and enhancement of natural beauty of land tra-
versed by transportation lines.
(g) Consultation with Secretary of Housing and Urban Development;
annual report to the President for submission to Congress.
1654. National Transportation Safety Board.
(a) Establishment.
(b) Functions, powers, and duties of Board.
(c) Aircraft accident investigations.
(d) Transportation safety; investigation of transportation acci-
dents ; recommendations.
(e) Publication of reports, orders, decisions, rules, and regulations.
(f) Independent status of Board.
(g) Annual report and recommendations to Congress.
(h) Membership of Board; appointment and political affiliations of
members; fitness; removal for inefficiency, neglect of duty, or
malfeasance in office.
(i) Term of office of members; filling of vacancies.
-------
STATUTES AND LEGISLATIVE HISTORY 707
Sec.
(j) Designation of Chairman and Vice Chairman; administrative
authority; three members required for quorum.
(k) Rules and regulations.
(1) Conduct of hearings; issuance of subpenas; oaths; witnesses;
reception of evidence.
(m) Delegation of functions.
(n) Employment of investigators, attorneys, hearing examiners, and
other employees.
(o) Uses of services, equipment, personnel, and facilities of other
agencies; use of state facilities.
1655. Transfer of functions.
(a) Powers and duties of the Secretary of Commerce and other
offices and officers of the Department of Commerce relating
to highways, ground transportation generally, aircraft, pilot-
age, and traffic and highway safety generally.
(b) Coast Guard; functions of the Secretary of the Treasury and
other offices and officers of the Department of the Treasury
relating to the Coast Guard.
(c) Federal Aviation Agency; functions, powers, and duties of
Administrator and other offices and officers.
(d) Civil Aeronautics Board; chairman, members, officers, and
offices; transfer to National Transportation Safety Board.
(e) Interstate Commerce Commission; functions, powers, and duties
relating to safety appliances and equipment on railroad en-
gines and cars, protection of employees and travelers, hours,
of service, medals for heroism, explosives and other dangerous
articles, standard time zones and daylight saving time;
safety of operation and equipment.
(f) Retention by Interstate Commerce Commission of powers and
functions not expressly transferred; railroad, pipeline, and
motor carrier safety under Federal Railroad and Federal
Highway Administrators; review of administrative decisions.
(g) Department of the Army; functions, powers, and duties of the
Secretary of the Army relating to water vessel anchorages,
drawbridge operating regulations, obstructive bridges, tolls,
prevention of pollution of the sea by oil, and location and
clearance of bridges and causeways on navigable waters.
(h) Applicability of administrative procedure and judicial review
provisions of Title 5.
(i) Alaska Railroad.
1656. Transportation investment standards; promulgation by Secretary of
Transportation; use of standards and criteria in surveys, plans, and
reports of Federal agencies.
1657. Administrative provisions.
(a) Authority of Secretary to employ personnel and prescribe their
authority and duties.
(b) Temporary or intermittent employment of experts and con-
sultants.
-------
708 LEGAL COMPILATION—GENERAL
Sec.
(c) Detailing of participating military personnel for service in
Department of Transportation.
(d) Military personnel assigned to Department of Transportation;
annual report to Congress on assignment of personnel.
(e) Delegation and redelegation of powers and functions.
(f) Transfer of personnel, assets, liabilities, contracts, property,
records, and unexpended funds of the Federal Aviation
Agency to the Secretary of Transportation.
(g) Determination of personnel and property transfers to Secretary
of Transportation; transfer of property and funds of Civil
Aeronautics Boards to National Transportations Safety
Board.
(h) Prohibition against reduction in classification or compensation
of transferees for one year.
(i) Lapse of transferred offices and agencies; compensation of exe-
cutive positions upon continuity of service.
(j) Administrative services; establishment of capital fund; trans-
actions involving the capital fund.
(k) Seal of office.
(1) Authority to provide necessary facilities and services for per-
sonnel stationed in remote localities.
(m) Authority to accept and hold gifts and bequests for purposes of
aiding or facilitating the work of the Department.
(n) Authority to fill requests for statistical compilations covering
Department matters on reimbursable basis.
(o) Advisory committees; appointment, compensation.
(p) Appointment of Coast Guard personnel on active duty to serve
with Department; retired Coast Guard personnel.
(q) Contracts with private agencies for research; capabilities of
research agency; dissemination of resulting data.
1658. Annual reports.
1659. Separability of provisions.
§ 1651. Congressional declaration of purpose
(a) The Congress hereby declares that the general welfare, the
economic growth and stability of the Nation and its security re-
quire the development of national transportation policies and pro-
grams conducive to the provision of fast, safe, efficient, and con-
venient transportation at the lowest cost consistent therewith and
with other national objectives, including the efficient utilization
and conservation of the Nation's resources.
(b) (1) The Congress therefore finds that the establishment of
a Department of Transportation is necessary in the public interest
and to assure the coordinated, effective administration of the
transportation programs of the Federal Government; to facilitate
the development and improvement of coordinated transportation
service, to be provided by private enterprise to the maximum
-------
STATUTES AND LEGISLATIVE HISTORY 709
extent feasible; to encourage cooperation of Federal, State, and
local governments, carriers, labor, and other interested parties
toward the achievement of national transportation objectives; to
stimulate technological advances in transportation; to provide
general leadership in the identification and solution of transporta-
tion problems; and to develop and recommend to the President
and the Congress for approval national transportation policies and
programs to accomplish these objectives with full and appropriate
consideration of the needs of the public, users, carriers, industry,
labor, and the national defense.
(2) It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the coun-
tryside and public park and recreation lands, wildlife and water-
fowl refuges, and historic sites.
Pub.L. 89-670, § 2, Oct. 15,1966, 80 Stat. 931.
§ 1652. Establishment of Department—Designation and ap-
pointment of Secretary of Transportation
(a) There is hereby established at the seat of government an
executive department to be known as the Department of Trans-
portation (hereafter referred to in this chapter as the "Depart-
ment"). There shall be at the head of the Department a Secretary
of Transportation (hereafter referred to in this chapter as the
"Secretary"), who shall be appointed by the President, by and
with the advice and consent of the Senate.
Under Secretary; appointment; functions, powers, and duties
(b) There shall be in the Department an Under Secretary, who
shall be appointed by the President, by and with the advice and
consent of the Senate. The Under Secretary (or, during the ab-
sence or disability of the Under Secretary, or in the event of a
vacancy in the office of Under Secretary, an Assistant Secretary or
the General Counsel, determined according to such order as the
Secretary shall prescribe) shall act for, and exercise the powers of
the Secretary, during the abence or disability of the Secretary or
in the event of a vacancy in the office of Secretary. The Under
Secretary shall perform such functions, powers, and duties as the
Secretary shall prescribe from time to time.
Assistant Secretaries; General Counsel; appointment; functions, powers,
and duties
(c) There shall be in the Department Four Assistant Secretar-
ies and a General Counsel, who shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate, and who
shall perform such functions, powers, and duties as the Secretary
shall prescribe from time to time.
-------
710 LEGAL COMPILATION—GENERAL
Assistannt Secretary for Administration; appointment; functions,
powers, and duties
(d) There shall be in the Department an Assistant Secretary
for Administration, who shall be appointed, with the approval of
the President, by the Secretary under the classified civil service
who shall perform such functions, powers, and duties as the Secre-
tary shall prescribe from time to time.
Federal Highway Administration; Federal Railroad Administration; Federal
Aviation Administration; establishment; Administrators and Deputy Fed-
eral Aviation Adminstrator; appointment, functions, powers and duties;
transfer of functions
(e) (1) There is hereby established within the Department a
Federal Highway Administration; a Federal Railroad Administra-
tion ; and a Federal Aviation Administration. Each of these com-
ponents shall be headed by an Administrator, and in the case of
the Federal Aviation Administration there shall also be a Deputy
Administrator. The Administrators and the Deputy Federal Avia-
tion Administrator shall be appointed by the President, by and
with the advice and consent of the Senate.
(2) The qualification of the Administrator of the Federal
Aviation Agency specified in section 1341 (b) of this title, and the
qualifications and status of the Deputy Administrator specified in
section 1342(b) of this title; shall apply, respectively, to the Ad-
ministrator and Deputy Administrator of the Federal Aviation
Administration. However, nothing in this chapter shall be con-
strued to preclude the appointment of the present Administrator
of the Federal Aviation Agency as Administrator of the Federal
Aviation Administration in accordance with the provisions of the
Act of June 22, 1965, as amended (79 Stat. 171).
(3) In addition to such functions, powers, and duties as are
specified in this chapter to be carried out by the Administrators,
the Administrators and the Commandant of the Coast Guard shall
carry out such additional functions, powers, and duties as the
Secretary may prescribe. The Administrators and the Comman-
dant of the Coast Guard shall report directly to the Secretary.
(4) The functions, powers, and duties specified in this chapter
to be carried out by each Administrator shall not be transferred
elsewhere in the Department unless specifically provided for by
reorganization plan submitted pursuant to provisions of chapter 9
of Title 5 or by statute.
National Traffic Safety Bureau; National Highway Safety Bureau; establish-
ment; appointment of Directors; transfer and continuation of office of
Federal Highway Administration under title of Director of Public Roads
(f) (1) The Secretary shall carry out the provisions of the
-------
STATUTES AND LEGISLATIVE HISTORY 711
National Traffic and Motor Vehicle Safety Act of 1966 through a
National Traffic Safety Bureau (hereafter referred to in this par-
agraph as "Bureau"), which he shall establish in the Department
of Transportation. The Bureau shall be headed by a Director who
shall be appointed by the President, by and with the advice and
consent of the Senate. All other provisions of the National Traffic
and Motor Vehicle Safety Act of 1966 shall apply.
(2) The Secretary shall carry out the provisions of the High-
way Safety Act of 1966 (including chapter 4 of Title 23) through
a National Highway Safety Bureau (hereafter referred to in this
paragraph as "Bureau"), which he shall establish in the Depart-
ment of Transportation. The Bureau shall be headed by a Director
who shall be appointed by the President, by and with the advice
and consent of the Senate. All other provisions of the Highway
Safety Act of 1966 shall apply.
(3) The President is authorized, as provided in section 201 of
the Highway Safety Act of 1966, to carry out the provisions of the
National Traffic and Motor Vehicle Safety Act of 1966 through the
Bureau and Director authorized by section 201 of the Highway
Safety Act of 1966.
(4) The office of Federal Highway Administrator, created by
section 303 of Title 23, is hereby transferred to and continued
within the Department under the title Director of Public Roads.
The Director shall be the operating head of the Bureau of Public
Roads, or any other agency created within the Department to
carry out the primary functions carried out immediately before
the effective date of this Act by the Bureau of Public Roads.
Pub.L. 89-670, § 3, Oct. 15, 1966, 80 Stat. 931, amended Pub.L.
90-83, § 10 (b), Sept. 11, 1967, 81 Stat. 224.
§ 1653. General provisions—Responsibilities of Secretary of
Transportation; leadership, consultation, and coordination
(a) The Secretary in carrying out the purposes of this chapter
shall, among his responsibilities, exercise leadership under the
direction of the President in transportation matters, including
those affecting the national defense and those involving national
or regional emergencies; provide leadership in the development of
national transportation policies and programs, and make recom-
mendations to the President and the Congress for their considera-
tion and implementation; promote and undertake development,
collection, and dissemination of technological, statistical, eco-
nomic, and other information relevant to domestic and interna-
tional transportation; consult and cooperate with the Secretary of
Labor in gathering information regarding the status of labor-
-------
712 LEGAL COMPILATION—GENERAL
management contracts and other labor-management problems and
in promoting industrial harmony and stable employment condi-
tions in all modes of transportation; promote and undertake re-
search and development relating to transportation, including noise
abatement, with particular attention to aircraft noise; consult
with the heads of other Federal departments and agencies on the
transportation requirements of the Government, including the
procurement of transportation or the operation of their own
transport services in order to encourage them to establish and
observe policies consistent with the maintenance of a coordinated
transportation system; and consult and cooperate with State and
local governments, carriers, labor, and other interested parties,
including, when appropriate, holding informal public hearings.
Congressional policy standards for transportation; prohibition against adop-
tion of standards or policy without appropriate Congressional action
(b) (1) In carrying out his duties and responsibilities under
this chapter, the Secretary shall be governed by all applicable
statutes including the policy standards set forth in the Federal
Aviation Act of 1958, as amended; the national transportation
policy of the Interstate Commerce Act, as amended; Title 23,
relating to Federal-aid highways; and Title 14, titles LII and LIII
of the Revised Statutes, the Act of April 25, 1940, as amended (54
Stat. 163), and the Act of September 2,1958, as amended, relating
to the United States Coast Guard.
(2) Nothing in this chapter shall be construed to authorize,
without appropriate action by Congress, the adoption, revision, or
implementation of—
(A) any transportation policy, or
(B) any investment standards or criteria.
(3) In exercising the functions, powers, and duties conferred on
and transferred to the Secretary by this chapter, the Secretary
shall give full consideration to the need for operational continuity
of the functions transferred, to the need for effectiveness and
safety in transportation systems, and to the needs of the national
defense.
Judicial review of orders of the Secretary, National Transportation Safety
Board, and Administrators
(c) Orders and actions of the Secretary or the National Trans-
portation Safety Board in the exercise of functions, powers, and
duties transferred under this chapter, and orders and actions of
the Administrators pursuant to the functions, powers, and duties
specifically assigned to them by this chapter, shall be subject to
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STATUTES AND LEGISLATIVE HISTORY 713
judicial review to the same extent and in the same manner as if
such orders and actions had been by the department or agency
exercising such functions, powers, and duties immediately preced-
ing their transfer. Any statutory requirements relating to notice,
hearings, action upon the record, or administrative review that
apply to any function transferred by this Chapter shall apply to
the exercise of such functions by the Secretary, the Administra-
tors, or the National Transportation Safety Board.
Carryover of authority to Secretary, Administrators, and National Trans-
portation Safety Board from departments and agencies formerly exer-
cising functions and duties
(d) In the exercise of the functions, powers, and duties trans-
ferred under this chapter, the Secretary, the Administrators, and
the National Transportation Safety Board shall have the same
authority as that vested in the department or agency exercising
such functions, powers, and duties immediately preceding their
transfer, and their actions in exercising such functions, powers,
and duties shall have the same force and effect as when exercised
by such department or agency.
Safety record of applicants seeking operating authority from Interstate
Commerce Commission
(e) It shall be the duty of the Secretary—
(1) to promptly investigate the safety compliance records
in the Department of each applicant seeking operating au-
thority from the Interstate Commerce Commission (referred
to in this subsection as the "Commission") and to report his
findings to the Commission;
(2) when the safety record of an applicant for permanent
operating authority, or for approval of a proposed transac-
tion involving transfer of operating authority, fails to satisfy
the Secretary, to intervene and present evidence of such ap-
plicant's fitness in Commission proceedings;
(3) to furnish promptly upon request of the Commission a
statement regarding the safety record of any applicant seek-
ing temporary operating authority from the Commission; and
(4) (A) to furnish upon request of the Commission a com-
plete report of the safety compliance of any carrier, (B) to
have made such additional inspections or safety compliance
surveys which the Commission deem necessary or desirable
in order to process an application or to determine the fitness
of a carrier, and (C) if the Commission so requests, to inter-
vene and present evidence in any proceeding in which a deter-
mination of fitness is required.
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714 LEGAL COMPILATION—GENERAL
Maintenance and enhancement of natural beauty of land traversed by
transportation lines
(f) It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the
countryside and public park and recreation lands, wildlife and
waterfowl refuges, and historic sites. The Secretary of Trans-
portation shall cooperate and consult with the Secretaries of
the Interior, Housing and Urban Development, and Agricul-
ture, and with the States in developing transportation plan
and program that include measures to maintain or enhance
the natural beauty of the lands traversed. After August 23,
1968, the Secretary shall not approve any program or project
which requires the use of any publicly owned land from a
public park, recreation area, or wildlife and waterfowl refuge
of national, State, or local significance as determined by the
Federal, State, or local officials having jurisdiction thereof, or
any land from an historic site of national, State, or local
significance as so determined by such officials unless (1) there
is no feasible and prudent alternative to the use of such land,
and (2) such program includes all possible planning to mini-
mize harm to such park, recreational area, wildlife and water-
fowl refuge, or historic site resulting from such use.
Consultation with Secretary of Housing and Urban Development; annual
report to the President for submission to Congress
(g) The Secretary and the Secretary of Housing and Urban
Development shall consult and exchange information regard-
ing their respective transportation policies and activities;
carry on joint planning, research and other activities; and
coordinate assistance for local transportation projects. They
shall jointly study how Federal policies and programs can
assure that urban transportation systems most effectively
serve both national transportation needs and the comprehen-
sively planned development of urban areas. They shall, within
one year after the effective date of this Act, and annually
thereafter, report to the President, for submission to the Con-
gress, on their studies and other activities under this subsec-
tion, including any legislative recommendations which they
determine to be desirable. The Secretary and the Secretary of
Housing and Urban Development shall study and report
within one year after the effective date of this Act to the
President and the Congress on the logical and efficient organi-
zation and location of urban mass transportation functions in
the Executive Branch.
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STATUTES AND LEGISLATIVE HISTORY 715
Pub.L. 89-670, § 4, Oct. 15, 1966, 80 Stat. 933, amended Pub.L.
90-495, § 18(b), Aug. 23, 1968, 82 Stat. 824.
§ 1654. National Transportation Safety Board—Establishment
(a) There is hereby established within the Department a Na-
tional Transportation Safety Board (referred to hereafter in
this chapter as "Board").
Functions, powers, and duties of Board
(b) There are hereby transferred to, and it shall be the duty of
the Board to exercise, the functions, powers, and duties trans-
ferred to the Secretary by section 1655 of this title and sec-
tion 8 of this Act with regard to—
(1) determining the cause or probable cause of transporta-
tion accidents and reporting the facts, conditions, and circum-
stances relating to such accidents; and
(2) reviewing on appeal the suspension, amendment, modi-
fication, revocation, or denial of any certificate or license is-
sued by the Secretary or by an Administrator.
Aircraft accident investigations
(c) The Board shall exercise the functions, powers, and duties
relating to aircraft accident investigations transferred to the Sec-
retary by section 1655 (d) of this title.
Transportation safety; investigation of transportation accidents;
recommendations
(d) The Board is further authorized to—
(1) make such recommendations to the Secretary or Ad-
ministrators on the basis of the exercise of its functions,
powers, and duties which, in its opinion, will tend to prevent
transportation accidents and promote transportation safety;
(2) conduct special studies on matters pertaining to safety
in transportation and the prevention of accidents;
(3) insure that in cases in which it is required to determine
cause or probable cause, reports of investigation adequately
state the circumstances of the accident involved;
(4) initiate on its own motion or conduct rail, highway, or
pipeline accident investigations as the Board deems necessary
or appropriate;
(5) make recommendations to the Secretary or Adminis-
trators concerning rules, regulations, and procedures for the
conduct of accident investigations;
(6) request the Secretary or Administrators to initiate spe-
cific accident investigations or conduct further investigations
as the Board determines to be necessary or appropriate;
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716 LEGAL COMPILATION—GENERAL
(7) arrange for the personal participation of members or
other personnel of the Board in accident investigations con-
ducted by the Secretary or Administrators in such cases as it
deems appropriate; and
(8) request from the Secretary or Administrators notifica-
tion of transportation accidents and reports of such accidents
as the Board deems necessary.
Publication of reports, orders, decisions, rules, and regulations
(e) Except as otherwise provided by statute, the Board shall
make public all reports, orders, decisions, rules, and regulations
issued pursuant to subsections (b) (1) and (b) (2) of this sec-
tion, and the Board shall also make public—
(1) every recommendation made to the Secretary or an
Administrator;
(2) every special study conducted; and
(3) every action of the Board requesting the Secretary or
an Administrator to take action,
pursuant to subsections (d) (1), (2), (3), (5), (6), or (8) of this
section.
Independent status of Board
(f) In the exercise of its functions, powers, and duties, the
Board shall be independent of the Secretary and the other offices
and officers of the Department.
Annual report annd recommendations to Congress
(g) The Board shall report to the Congress annually on the
conduct of its functions under this chapter and the effectiveness of
accident investigations in the Department, together with such re-
commendations for legislation as it may deem appropriate.
Membership of Board; appointment and political affiliation of members; fitness;
removal for inefficiency, neglect of duty, or malfeasance in office
(h) The Board shall consist of five members to be appointed by
the President, by and with the advice and consent of the Senate.
No more than three members of the Board shall be of the same
political party. Members of the Board shall be appointed with due
regard to their fitness for the efficient dispatch of the functions,
powers, and duties vested in and imposed upon the Board, and
may be removed by the President for inefficiency, neglect of duty,
or malfeasance in office.
Term of office of members; filling of vacancies
(i) Members of the Board shall be appointed for terms of five
years, except that (1) any member appointed to fill a vacancy
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STATUTES AND LEGISLATIVE HISTORY 717
occurring prior to the expiration of the term for which his prede-
cessor was appointed shall be appointed only for the remainder of
such term, and (2) the five members first appointed shall serve
for terms (designated by tha President at the time of appoint-
ment) ending on the last day of the first, second, third, fourth,
and fifth calendar years beginning after 1966. Upon the expiration
of his term of office, a member shall continue to serve until his
successor is appointed and shall have qualified.
Designation of Chairman and Vice Chairman; administrative authority;
three members required for quorum
(j) The President shall designate from time to time one of the
members of the Board as Chairman and one of the members as
Vice Chairman, who shall act as Chairman in the absence or
incapacity of the Chairman, or in the event of a vacancy in the
office of the Chairman. The Chairman shall be the chief executive
and administrative officer of the Board and shall exercise the
responsibility of the Board with respect to (1) the appointment
and supervision of personnel employed by the Board; (2) the
distribution of business among the Board's personnel; and (3) the
use and expenditure of funds. In executing and administering the
functions of the Board on its behalf, the Chairman shall be gov-
erned by the general policies of the Board and by its decisions,
findings, and determinations. Three of the members shall consti-
tute a quorum of the Board.
Rules and regulations
(k) The Board is authorized to establish such rules, regulations,
and procedures as are necessary to the exercise of its functions.
Conduct of hearings; issuance of subpenas; oaths; witnesses; reception
of evidence
(1) In carrying out its functions, the Board (or, upon the au-
thorization of the Board, any member thereof or any hearing
examiner assigned to or employed by the Board) shall have the
same powers as are vested in the Secretary to hold hearings, sign
and issue subpenas, administer oaths, examine witnesses, and re-
ceive evidence at any place in the United States it may designate.
Delegation of functions
(m) The Board may delegate to any officer or official of the
Board, or, with the approval of the Secretary, to any officer or
official of the Department such of its functions as it may deem
appropriate, except that—
(1) with respect to aviation, the proviso in section 1441 (g)
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718 LEGAL COMPILATION—GENERAL
of this title shall apply to the Secretary, the Federal Aviation
Administrator and their representatives, and
(2) the Board shall not delegate the appellate or determi-
nation of probable cause functions transferred to it by section
1655(d) of this title.
Employment of investigators, attorneys, hearing examiners, and other
employees
(n) Subject to the civil service and classification laws, the
Board is authorized to select, appoint, employ, and fix compensa-
tion of such officers and employees, including investigators, attor-
neys and hearing examiners, as shall be necessary to carry out its
powers and duties under this chapter.
Use of services, equipment, personnel, and facilities of other agencies;
use of state facilities
(o) The Board is authorized, on a reimbursable basis when
appropriate, to use the available services, equipment, personnel,
and facilities of the Department and of other civilian or military
agencies and instrumentalities of the Federal Government, and to
cooperate with the Department and such other agencies and in-
strumentalities in the establishment and use of services, equip-
ment, and facilities of the Board. The Board is further authorized
to confer with and avail itself of the cooperation, services, records,
and facilities of State, territorial, municipal, or other local agen-
cies. Pub.L. 89-670, § 5, Oct. 15, 1966, 80 Stat. 935.
§ 1655. Transfer of functions—Powers and duties of the Secre-
tary of Commerce and other offices and officers of the Department
of Commerce relating to highways, ground transportation gener-
ally, aircraft, pilotage, and traffic and highway safety generally
(a) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Secretary of Commerce
and other offices and officers of the Department of Commerce
under—
(1) the following laws and provisions of law relating gen-
erally to highways:
(A) Title 23.
(B) The Federal-Aid Highway Act of 1966.
(C) The Federal-Aid Highway Act of 1962, as
amended.
(D) The Act of July 14, 1960, as amended.
(E) The Federal-Aid Highway Act of 1954, as
amended.
(F) The Act of September 26,1961, as amended.
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STATUTES AND LEGISLATIVE HISTORY 719
(G) The Highway Revenue Act of 1956, as amended.
(H) The Highway Beautification Act of 1165, as
amended.
(I) The Alaska Omnibus Act, as amended.
(J) The Joint Resolution of August 28, 1965, as
amended.
(K) Section 502(c) of the General Bridge Act of 1946,
as amended.
(L) The Act of April 27,1962, as amended.
(M) Reorganization Plan No. 7 of 1949.
(2) the following laws and provisions of law relating gen-
erally to ground transportation:
(A) The Act of September 30, 1965, as amended.
(B) The Urban Mass Transportation Act of 1964, as
amended.
(3) the following laws and provisions of law relating gen-
erally to aircraft:
(A) The Act of September 7,1957, as amended.
(B) Section 410 of the Federal Aviation Act of 1958,
as amended.
(C) Title XIII of the Federal Aviation Act of 1958, as
amended.
(4) the following law relating generally to pilotage: The
Great Lakes Pilotage Act of 1960, as amended.
(5) the following law to the extent it authorizes scientific
and professional positions which relate primarily to functions
transferred by this subsection: The Act of August 1, 1947, as
amended.
(6) the following laws relating generally to traffic and
highway safety:
(A) The National Traffic and Motor Vehicle Safety
Act of 1966.
(B) The Highway Safety Act of 1966.
Coast Guard; functions of the Secretary of the Treasury and other offices and
officers of the Department of the Treasury relating to the Coast Guard
(b) (1) The Coast Guard is hereby transferred to the Depart-
ment, and there are hereby transferred to and vested in the Secre-
tary all functions, powers, and duties, relating to the Coast Guard,
of the Secretary of the Treasury and of other officers and offices of
the Department of the Treasury.
(2) Notwithstanding the transfer of the Coast Guard to the
Department and the transfer to the Secretary of the functions,
powers, and duties, relating to the Coast Guard, of the Secretary
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720 LEGAL COMPILATION—GENERAL
of the Treasury and of other officers and offices of the Department
of the Treasury, effected by the provisions of paragraph (1) of
this subsection, the Coast Guard, together with the functions,
powers, and duties relating thereto, shall operate as a part of the
Navy, subject to the orders of the Secretary of the Navy, in time
of war or when the President shall so direct, as provided in sec-
tion 3 of Title 14.
(3) Notwithstanding any other provisions of this chapter, the
functions, powers, and duties of the General Counsel of the De-
partment of the Treasury set out in chapter 47 of Title 10 (Uni-
form Code of Military Justice), are hereby transferred to and
vested in the General Counsel of the Department.
Federal Aviation Agency; functions, powers, and duties of Administrator and
other offices and officers
(c) (1) There are hereby transferred to and vested in the
Secretary all functions, powers, and duties of the Federal Aviation
Agency, and of the Administrator and other officers and offices
thereof, including the development and construction of a civil su-
personic aircraft: Provided, however, That there are hereby
transferred to the Federal Aviation Administrator, and it shall be
his duty to exercise the functions, powers, and duties of the Secre-
tary pertaining to aviation safety as set forth in sections 306, 307,
308, 309, 312, 313, 314, 1101, 1105, and 1111 and titles VI, VII,
IX, and XII of the Federal Aviation Act of 1958, as amended. In
exercising these enumerated functions, powers, and duties, the
Administrator shall be guided by the declaration of policy in sec-
tion 103 of the Federal Aviation Act of 1958, as amended. Deci-
sions of the Federal Aviation Administrator made pursuant to the
exercise of the functions, powers, and duties enumerated in this
subsection to be exercised by the Administrator shall be adminis-
tratively final, and appeals as authorized by law or this chapter
shall be taken directly to the National Transportation Safety
Board or to the courts, as appropriate.
(2) Nothing in this chapter shall affect the power of the Presi-
dent under section 1343(c) of this title to transfer, to the Depart-
ment of Defense in the event of war, any functions transferred by
this chapter from the Federal Aviation Agency.
Civil Aeronautics Board: chairman, members, officers, and offices; transfer
to National Transportation Safety Board
(d) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Civil Aeronautics Board,
and of the Chairman, members, officers, and offices thereof under
titles VI and VII of the Federal Aviation Act of 1958, as
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STATUTES AND LEGISLATIVE HISTORY 721
amended: Provided, however, That these functions, powers, and
duties are hereby transferred to and shall be exercised by the
National Transportation Safety Board. Decisions of the National
Transportation Safety Board made pursuant to the exercise of the
functions, powers, and duties enumerated in this subsection shall
be administratively final, and appeals as authorized by law or this
chapter shall be taken directly to the courts.
Interstate Commerce Commission; functions, powers, and duties relating to
safety appliances and equipment on railroad engines and cars, protection
of employees and travelers, hours of service, medals for heroism, explo-
sives and other daangerous articles, standard time zones and daylight sav-
ing time; safety of operation and equipment
(e) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Interstate Commerce Com-
mission, and of the Chairman, members, officers, and offices
thereof, under—
(1) the following laws relating generally to safety appli-
ances and equipment on railroad engines and cars and pro-
tection of employees and travelers:
(A) The Act of March 2,1893, as amended.
(B) The Act of March 2,1903, as amended.
(C) The Act of April 14,1910, as amended.
(D) The Act of May 30,1908, as amended.
(E) The Act of February 17,1911, as amended.
(F) The Act of March 4,1915, as amended.
(G) Reorganization Plan No. 3 of 1965.
(H) Joint Resolution of June 30,1906, as amended.
(I) The Act of May 27, 1908, as amended.
(J) The Act of March 4, 1909, as amended.
(K) The Act of May 6, 1910, as amended.
(2) the following law relating generally to hours of service
of employees: The Act of March 4,1907, as amended.
(3) the following law relating generally to medals for hero-
ism : The Act of February 23, 1905, as amended.
(4) the following provisions of law relating generally to
explosives and other dangerous articles: Sections 831-835 of
Title 18.
(5) the following laws relating generally to standard time
zones and daylight saving time:
(A) The Act of March 19,1918, as amended.
(B) The Act of March 4,1921, as amended.
(C) The Uniform Time Act of 1966, as amended.
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722 LEGAL COMPILATION—GENERAL
(6) the following provisions of the Interstate Commerce
Act, as amended—
(A) relating generally to safety appliances methods
and systems: Section 25.
(B) relating generally to investigation of motor vehi-
cle sizes, weights, and service of employees: Section 226.
(C) relating generally to qualifications and maximum
hours of service of employees and safety of operation and
equipment: Sections 204(a) (1) and (2), to the extent
that they relate to qualifications and maximum hours of
service of employees and safety of operation and equip-
ment; and sections 204(a) (3), (3a), and (5).
(D) to the extent they relate to private carriers of
property by motor vehicle and carriers of migrant work-
ers by motor vehicle other than contract carriers: Sec-
tions 221(a), 221(c), and 224.
Retention by Interstate Commerce Commission of powers and functions not
expressly transferred; railroad, pipeline, and motor carrier safety under
Federal Railroad and Federal Highway Administrators; review of admin-
istrative decisions
(f) (1) Nothing in subsection (e) shall diminish the functions,
powers, and duties of the Interstate Commerce Commission under
sections 1(6), 206, 207, 209, 210a, 212, and 216 of the Interstate
Commerce Act, as amended, or under any other section of that Act
not specifically referred to in subsection (e).
(2) (A) With respect to any function which is transferred to
the Secretary by subsection (e) and which was vested in the
Interstate Commerce Commission preceding such transfer, the
Secretary shall have the same administrative powers under the
Interstate Commerce Act as the Commission had before such
transfer with respect to such transferred function. After such
transfer, the Commission may exercise its administrative powers
under the Interstate Commerce Act only with respect to those of
its functions not transferred by subsection (e).
(B) For purposes of this paragraph—
(i) the term "function" includes power and duty, and
(ii) the term "administrative powers under the Inter-
state Commerce Act" means any functions under the fol-
lowing provisions of the Interstate Commerce Act, as
amended: Sections 12, 13(1), 13(2), 14, 16(12), the last
sentence of 18(1), sections 20 (except clauses (3), (4),
(11), and (12) thereof), 204(a) (6) and (7), 204(c),
204(d), 205(d), 205(f), 220 (except subsection (c) and
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STATUTES AND LEGISLATIVE HISTORY 723
the proviso of subsection (a) thereof), 222 (except
subsections (b) (2) and (b) (3) thereof), and 417(b)
(1).
(3) (A) The Federal Railroad Administrator shall carry out
the functions, powers, and duties of the Secretary pertaining to
railroad and pipeline safety as set forth in the statutes trans-
ferred to the Secretary by subsection (e) of this section.
(B) The Federal Highway Administrator shall carry out the
functions, powers, and duties of the Secretary pertaining to motor
carrier safety as set forth in the statutes transferred to the Secre-
tary by subsection (e) of this section.
(C) Decisions of the Federal Railroad Administrator and the
Federal Highway Administrator (i) which are made pursuant to
the exercise of the functions, powers, and duties enumerated in
subparagraphs (A) and (B) of this paragraph to be carried out
by the Administrators, and (ii) which involve notice and hearing
required by law, shall be administratively final, and appeals as
authorized by law or this chapter shall be taken directly to the
National Transportation Safety Board or the courts, as appropri-
ate.
Department of the Army; functions, powers, and duties of the Secretary of the
Army relating to water vessel anchorages, drawbridge operating regula-
tions, obstructive bridges, tolls, prevention of pollution of the sea by oil,
and location and clearance of bridges and causeways on navigable waters
(g) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Secretary of the Army and
other officers and offices of the Department of the Army under—
(1) the following law and provisions of law relating gener-
ally to water vessel anchorages:
(A) Section 7 of the Act of March 4, 1915, as
amended.
(B) Article 11 of section 1 of the Act of June 7, 1897,
as amended.
(C) Rule 9 of section 1 of the Act of February 8, 1895,
as amended.
(D) Rule numbered 13 of section 4233 of the Revised
Statutes, as amended.
(2) the following provision of law relating generally to
drawbridge operating regulations: Section 5 of the Act of
August 18, 1894, as amended.
(3) the following law relating generally to obstructive
bridges: The Act of June 21, 1940, as amended.
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724 LEGAL COMPILATION—GENERAL
(4) the following laws and provisions of law relating gen-
erally to the reasonableness of tolls:
(A) Section 4 of the Act of March 23, 1906, as
amended.
(B) Section 503 of the General Bridge Act of 1946, as
amended.
(C) Section 17 of the Act of June 10, 1930, as
amended.
(D) The Act of June 27,1930, as amended.
(E) The Act of August 21,1935, as amended.
(5) the following law relating to prevention of pollution of
the sea by oil: The Oil Pollution Act, 1961, as amended.
(6) the following laws and provision of law to the extent
that they relate generally to the location and clearances of
bridges and causeways in the navigable waters of the United
States:
(A) Section 9 of the Act of March 3, 1899, as
amended.
(B) The Act of March 23, 1906, as amended.
(C) The General Bridge Act of 1946, as amended.
Applicability of administrative procedure and judicial review provisions
of Title 5
(h) The provisions of subchapter II of chapter 5 and of chapter
7 of Title 5, shall be applicable to proceedings by the Department
and any of the administrations or boards within the Department
established by this chapter except that notwithstanding this or
any other provision of this chapter, the transfer of functions,
powers, and duties to the Secretary or any other officer in the
Department shall not include functions vested by subchapter II of
chapter 5 of Title 5, in hearing examiners employed by any de-
partment, agency, or component thereof whose functions are
transferred under the provisions of this chapter.
Alaska Railroad
(i) The Administration of the Alaska Railroad, established pur-
suant to the Act of March 12, 1914, as amended, and all of the
functions authorized to be carried out by the Secretary of the
Interior pursuant to Executive Order Numbered 11107, April 25,
1963 (28 F.R. 4225), relative to the operation of said Railroad,
are hereby transferred to and vested in the Secretary of Transpor-
tation who shall exercise the same authority with respect thereto
as is now exercised by the Secretary of the Interior pursuant to
said Executive order. Pub.L. 89-670, § 6, Oct. 15, 1966, 80 Stat.
937.
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STATUTES AND LEGISLATIVE HISTORY 725
§ 1656. Transportation investment standards; promulgation by
Secretary of Transportation; use of standards and criteria in sur-
veys, plans, and reports of Federal agencies
(a) The Secretary, subject to the provisions of section 1653 of
this title, shall develop and from time to time in the light of
experience revise standards and criteria consistent with national
transportation policies, for the formulation and economic evalua-
tion of all proposals for the investment of Federal funds in trans-
portation facilities or equipment, except such proposals as are
concerned with (1) the acquisition of transportation facilities or
equipment by Federal agencies in providing transportation serv-
ices for their own use; (2) an inter-oceanic canal located outside
the contiguous United States; (3) defense features included at the
direction of the Department of Defense in the design and con-
struction of civil air, sea, and land transportation; (4) programs
of foreign assistance; (5) water resource projects; or (6) grant-
in-aid programs authorized by law. The standards and criteria
developed or revised pursuant to this subsection shall be promul-
gated by the Secretary upon their approval by the Congress.
The standards and criteria for economic evaluation of water
resource projects shall be developed by the Water Resources Coun-
cil established by Public Law 89-80. For the purpose of such
standards and criteria, the primary direct navigation benefits of a
water resource project are denned as the product of the savings to
shippers using the waterway and the estimated traffic that would
use the waterway; where the savings to shippers shall be con-
strued to mean the difference between (a) the freight rates or
charges prevailing at the time of the study for the movement by
the alternative means and (b) those which would be charged on
the proposed waterway; and where the estimate of traffic that
would use the waterway will be based on such freight rates, taking
into account projections of the economic growth of the area.
The Water Resources Council established under section 1962a of
Title 42 is hereby expanded to include the Secretary of Transpor-
tation on matters pertaining to navigation features of water re-
source projects.
(b) Every survey, plan, or report formulated by a Federal
agency which includes a proposal as to which the Secretary has
promulgated standards and criteria pursuant to subsection (a)
shall be (1) prepared in accord with such standards and criteria
and upon the basis of information furnished by the Secretary with
respect to projected growth of transportation needs and traffic in
the affected area, the relative efficiency of various modes of trans-
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726 LEGAL COMPILATION—GENERAL
port, the available transportation services in the area, and the
general effect of the proposed investment on existing modes, and
on the regional and national economy; (2) coordinated by the
proposing agency with the Secretary and, as appropriate, with
other Federal agencies, States, and local units of government for
inclusion of his and their views and comments; and (3) transmit-
ted thereafter by the proposing agency to the President for dispo-
sition in accord with law and procedures established by him.
Pub.L. 89-670,§ 7, Oct. 15,1966, 80 Stat. 941.
§ 1657. Administrative provisions—Authority of Secretary to
employ personnel and prescribe their authority and duties
(a) In addition to the authority contained in any other Act
which is transferred to and vested in the Secretary, the National
Transportation Safety Board, or any other officer in the Depart-
ment, the Secretary is authorized, subject to the civil service and
classification laws, to select, appoint, employ, and fix the compen-
sation of such officers and employees, including investigators, at-
torneys, and hearing examiners, as are necessary to carry out the
provisions of this chapter and to prescribe their authority and
duties.
Temporary or intermittent employment of experts and consultants
(b) The Secretary may obtain services as authorized by section
3109 of Title 5 but at rates not to exceed $100 per diem for
individuals unless otherwise specified in an appropriation Act.
Detailing of participating military personnel for service in
Department of Transportation
(c) The Secretary is authorized to provide for participation of
military personnel in carrying out the functions of the Depart-
ment. Members of the Army, the Navy, the Air Force, or the
Marine Corps may be detailed for service in the Department by
the appropriate Secretary, pursuant to cooperative agreements
with the Secretary of Transportation.
Military personnel assigned to Department of Transportation; annual report
to Congress on assignment of personnel
(d) (1) Appointment, detail, or assignment to, acceptance of,
and service in any appointive or other position in the Department
under the authority of subsections (c) and (p) of this section
shall in no way affect status, office, rank, or grade which officers or
enlisted men may occupy or hold or any emolument, perquisite,
right, privilege, or benefit incident to or arising out of any such
status, office, rank, or grade, nor shall any member so appointed,
detailed, or assigned be charged against any statutory limitation
on grades or strengths applicable to the Armed Forces. A person
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STATUTES AND LEGISLATIVE HISTORY 727
so appointed, detailed, or assigned shall not be subject to direction
by or control by his armed force or any officer thereof directly or
indirectly with respect to the responsibilities exercised in the posi-
tion to which appointed, detailed, or assigned.
(2) The Secretary shall report annually in writing to the appro-
priate committees of the Congress on personnel appointed and
agreements entered into under subsection (c) of this section, in-
cluding the number, rank, and positions of members of the armed
services detailed pursuant thereto.
Delegation and redelegation of powers and functions
(e) (1) Except where this chapter vests in any administration,
agency or board, specific functions, powers, and duties, the Secre-
tary may, in addition to the authority to delegate and redelegate
contained in any other Act in the exercise of the functions trans-
ferred to or vested in the Secretary in this chapter, delegate any
of his residual functions, powers and duties to such officers and
employees of the Department as he may designate, may authorize
such successive redelegations of such functions, powers, and duties
as he may deem desirable, and may make such rules and regula-
tions as may be necessary to carry out his functions, powers, and
duties.
(2) In addition to the authority to delegate and redelegate con-
tained in any other Act, in the exercise of the functions trans-
ferred to or specified by this chapter to be carried out by any
officer in the Department, such officer may delegate any of such
functions, powers, and duties to such other officers and employees
of the Department as he may designate; may authorize such suc-
cessive redelegations of such functions, powers, and duties as he
may deem desirable; and may make such rules and regulations as
may be necessary to carry out such functions, powers, and duties.
(3) The Administrators established by section 1652 (e) of this
title may not delegate any of the statutory duties and responsibili-
ties specifically assigned to them by this chapter outside of their
respective administrations.
Transfer of personnel, assets, liabilities, contracts, property, records, and un-
expended funds of the Federal Aviation Agency to the Secretary of
Transportation
(f) The personnel, assets, liabilities, contracts, property, rec-
ords, and unexpended balances of appropriations, authorizations,
allocations, and other funds employed, held, used, arising from,
available or to be made available, of the Federal Aviation Agency,
and of the head and other officers and offices thereof, are hereby
transferred to the Secretary: Provided, however, That the person-
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728 LEGAL COMPILATION—GENERAL
nel, assets, liabilities, contracts, property, records, and unex-
pended balances of appropriations, authorizations, allocations, and
other funds employed, held, used, arising from, available, or to be
made available in carrying out the duties and functions trans-
ferred by this chapter to the Secretary which are specified by this
chapter to be carried out by the Federal Aviation Administrator
shall be assigned by the Secretary to the Federal Aviation Admin-
istrator for these purposes.
Determination of personnel and property transfers to Secretary of Trans-
portation; transfer of property and funds of Civil Aeronautics Boards to
National Transportation Safety Board
(g) So much of the positions, personnel, assets, liabilities, con-
tracts, property, records, and unexpended balances of appropria-
tions, authorizations, allocations, and other funds employed, held,
used, arising from, available or to be made available in connection
with the functions, powers, and duties transferred by sections
1655 of this title (except subsection (c) thereof) and section 8 (d)
and (e) of this chapter as the Director of the Bureau of the
Budget shall determine shall be transferred to the Secretary: Pro-
vided, however, That the positions, personnel, assets, liabilities,
contracts, property, records, and unexpended balances of appro-
priations, authorizations, allocations, and other funds employed,
held, used, arising from, available, or to be made available, by the
Civil Aeronautics Board in carrying out the duties transferred by
this chapter to be exercised by the National Transportation Safety
Board shall be transferred to the National Transportation Safety
Board. Except as provided in subsection (h), personnel engaged in
functions, powers, and duties transferred under this chapter shall
be transferred in accordance with applicable laws and regulations
relating to transfer of functions.
Prohibition against reduction in classification or compensation of
transferees for one year
(h) The transfer of personnel pursuant to subsections (f) and
(g) of this section shall be without reduction in classification or
compensation for one year after such transfer.
Lapse of transferred offices and agencies; compensation of executive
positions upon continuity of service
(i) In any case where all of the functions, powers, and duties of
any office or agency, other than the Coast Guard, are transferred
pursuant to this chapter, such office or agency shall lapse. Any
person who, on the effective date of this chapter, held a position
compensated in accordance with the Executive Schedule, and who,
without a break in service, is appointed in the Department to a
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STATUTES AND LEGISLATIVE HISTORY 729
positon having duties comparable to those performed immediately
preceding his appointment shall continue to be compensated in his
new position at not less than the rate provided for his previous
position, for the duration of his service in his new position.
Administrative services; establishment of capital funds; transactions
involving the capital fund
(j) The Secretary is authorized to establish a working capital
fund, to be available without fiscal year limitation, for expenses
necessary for the maintenance and operation of such common ad-
ministrative services as he shall find to be desirable in the interest
of economy and efficiency in the Department, including such serv-
ices as a central supply service for stationery and other supplies
and equipment for which adequate stocks may be maintained to
meet in whole or in part the requirements of the Department and
its agencies; central messenger, mail, telephone, and other commu-
nications services; office space, central services for document re-
production, and for graphics and visual aids; and a central library
service. The capital of the fund shall consist of any appropriations
made for the purpose of providing capital (which appropriations
are hereby authorized) and the fair and reasonable value of such
stocks of supplies, equipment, and other assets and inventories on
order as the Secretary may transfer to the fund, less the related
liabilities and unpaid obligations. Such funds shall be reimbursed
in advance from available funds of agencies and offices in the
Department, or from other sources, for supplies and services at
rates which will approximate the expense of operation, including
the accrual of annual leave and the depreciation of equipment. The
fund shall also be credited with receipts from sale or exchange of
property and receipts in payment for loss or damage to property
owned by the fund. There shall be covered into the United States
Treasury as miscellaneous receipts any surplus found in the fund
(all assets, liabilities, and prior losses considered) above the
amounts transferred or appropriated to establish and maintain
said fund.
Seal of office
(k) The Secretary shall cause a seal of office to be made for the
Department of such device as he shall approve, and judicial notice
shall be taken of such seal.
Authority to provide necessary facilities and services for personnel
stationed in remote localities
(1) In addition to the authority contained in any other Act
which is transferred to and vested in the Secretary, the National
Transportation Safety Board, or other officer in the Department,
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730 LEGAL COMPILATION—GENERAL
as necessary, and when not otherwise available, the Secretary is
authorized to provide for, construct, or maintain the following for
employees and their dependents stationed at remote localities:
(1) Emergency medical services and supplies;
(2) Food and other subsistence supplies;
(3) Messing facilities;
(4) Motion picture equipment and film for recreation and
training;
(5) Reimbursement for food, clothing, medicine, and other
supplies furnished by such employees in emergencies for the
temporary relief of distressed persons; and
(6) Living and working quarters and facilities.
The furnishing of medical treatment under paragraph (1) and the
furnishing of services and supplies under paragraphs (2) and (3)
of this subsection shall be at prices reflecting reasonable value as
determined by the Secretary, and the proceeds therefrom shall be
credited to the appropriation from which the expenditure was
made.
Authority to accept and hold gifts and requests for purpose of aiding or
facilitating the work of the Department
(m) (1) The Secretary is authorized to accept, hold, adminis-
ter, and utilize gifts and bequests of property, both real and per-
sonal, for the purpose of aiding or facilitating the work of the
Department. Gifts and bequests of money and the proceeds from
sales of other property received as gifts or bequests shall be depos-
ited in the Treasury in a separate fund and shall be disbursed
upon order of the Secretary. Property accepted pursuant to this
paragraph, and the proceeds thereof, shall be used as nearly as
possible in accordance with the terms of the gift or bequest.
(2) For the purpose of Federal income, estate, and gift taxes,
property accepted under paragraph (1) shall be considered as a
gift or bequest to or for use of the United States.
(3) Upon the request of the Secretary, the Secretary of the
Treasury may invest and reinvest in securities of the United
States or in securities guaranteed as to principal and interest by
the United States any moneys contained in the fund provided for
in paragraph (1). Income accruing from such securities, and from
any other property held by the Secretary pursuant to paragraph
(1) shall be deposited to the credit of the fund, and shall be
disbursed upon order of the Secretary.
Authority to fill requests for statistical compilations covering Department
matters on reimbursable basis
(n) (1) The Secretary is authorized, upon the written request
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STATUTES AND LEGISLATIVE HISTORY 731
of any person, or any State, territory, possession, or political sub-
division thereof, to make special statistical studies relating to for-
eign and domestic transportation, and special studies relating to
other matters falling within the province of the Department, to
prepare from its records special statistical compilations, and to
furnish transcripts of its studies, tables, and other records upon
the payment of the actual cost of such work by the person or body
requesting it.
(2) All moneys received by the Department in payment of the
cost of work under paragraph (1) shall be deposited in a separate
account to be administered under the direction of the Secretary.
These moneys may be used, in the discretion of the Secretary, for
the ordinary expenses incidental to the work and/or to secure in
connection therewith the special services of persons who are nei-
ther officers nor employees of the United States.
Advisory committees; appointment, compensation
(o) The Secretary is authorized to appoint, without regard to
the civil service laws, such advisory committees as shall be appro-
priate for the purpose of consultation with and advice to the
Department in performance of its functions. Members of such
committees, other than those regularly employed by the Federal
Government, while attending meetings of such committees or oth-
erwise serving at the request of the Secretary, may be paid com-
pensation at rates not exceeding those authorized for individuals
under subsection (b) of this section, and while so serving away
from their homes or regular places of business, may be allowed
travel expenses, including per diem in lieu of subsistence, as au-
thorized by section 5703 of Title 5, for persons in the Government
service employed intermittently.
Appointment of Coast Guard personnel on active duty to serve with Depart-
ment; retired Coast Guard personnel
(p) (1) Notwithstanding any provision of this chapter or other
law, a member of the Coast Guard on active duty may be ap-
pointed, detailed, or assigned to any position in the Department
other than Secretary, Under Secretary, and Assistant Secretary
for Administration.
(2) Subject to the provisions of Title 5, a retired member of the
Coast Guard may be appointed to any position in the Department,
Contracts with private agencies for research; capabilities of research agency;
dissemination of resulting data
(q) (1) The Secretary is authorized to enter into contracts with
educational institutions, public or private agencies or organiza-
tions, or persons for the conduct of scientific or technological
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732 LEGAL COMPILATION—GENERAL
research into any aspect of the problems related to the programs
of the Department which are authorized by statute.
(2) The Secretary shall require a showing that the institutions,
agencies, organizations, or persons with which he expects to enter
into contracts pursuant to this subsection have the capability of
doing effective work. He shall furnish such advice and assistance
as he believes will best carry out the mission of the Department,
participate in coordinating all research initiated under this
subsection, indicate the lines of inquiry which seem to him most
important, and encourage and assist in the establishment and
maintenance of cooperation by and between the institutions, agen-
cies, organizations, or persons and between them and other re-
search organizations, the Department, and other Federal agencies.
(3) The Secretary may from time to time disseminate in the
form of reports or publications to public or private agencies or
organizations, or individuals such information as he deems perti-
nent on the research carried out pursuant to this section.
(4) Nothing contained in this subsection is intended to amend,
modify, or repeal any provisions of law administered by the De-
partment which authorize the making of contracts for research.
Pub.L. 89-670, § 9, Oct. 15, 1966, 80 Stat. 944.
§ 1658. Annual reports
The Secretary shall, as soon as practicable after the end of each
fiscal year, make a report in writing to the President for submis-
sion to the Congress on the activities of the Department during
the preceding fiscal year. Pub.L. 89-670, § 11, Oct. 15, 1966, 80
Stat. 949.
§ 1659. Separability of provisions
If any provision of this chapter or the application thereof to
any person or circumstances is held invalid, the remainder of this
chapter, and the application of such provision to other persons or
circumstances shall not be affected thereby. Pub.L. 89-670, § 13,
Oct. 15,1966, 80 Stat. 950.
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STATUTES AND LEGISLATIVE HISTORY 733
1.5a Department of Transportation Act
October 15, 1966, P.L. 89-670, §2, 4(f), (g), 6, 7, 80 Stat. 931
DECLARATION OF PURPOSE
Sec. 2. (a) The Congress hereby declares that the general wel-
fare, the economic growth and stability of the Nation and its
security require the development of national transportation poli-
cies and programs conducive to the provision of fast, safe,
efficient, and convenient transportation at the lowest cost consist-
ent therewith and with other national objectives, including the
efficient utilization and conservation of the Nation's resources.
(b) (1) The Congress therefore finds that the establishment of
a Department of Transportation is necessary in the public interest
and to assure the coordinated, effective administration of the
transportation programs of the Federal Government; to facilitate
the development and improvement of coordinated transportation
service, to be provided by private enterprise to the maximum
extent feasible; to encourage cooperation of Federal, State, and
local governments, carriers, labor, and other interested parties
toward the achievement of national transportation objectives; to
stimulate technological advances in transportation; to provide
general leadership in the identification and solution of transporta-
tion problems; and to develop and recommend to the President
and the Congress for approval national transportation policies and
programs to accomplish these objectives with full and appropriate
consideration of the needs of the public, users, carriers, industry,
labor, and the national defense.
(2) It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the coun-
tryside and public park and recreation lands, wildlife and water-
fowl refuges, and historic sites.
[p. 931]
GENERAL PROVISIONS
Sec. 4.
*******
(f) The Secretary shall cooperate and consult with the Secre-
taries of the Interior, Housing and Urban Development, and Agri-
culture, and with the States in developing transportation plans
and programs that include measures to maintain or enhance the
natural beauty of the lands traversed. After the effective date of
this Act, the Secretary shall not approve any program or project
which requires the use of any land from a public park, recreation
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734 LEGAL COMPILATION—GENERAL
area, wildlife and waterfowl refuge, or historic site unless (1)
there is no feasible and prudent alternative to the use of such
land, and (2) such program includes all possible planning to mini-
mize harm to such park, recreational area, wildlife and waterfowl
refuge, or historic site resulting from such use.
[p. 934]
TRANSFERS TO DEPARTMENT
Sec. 6.
(g) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Secretary of the Army and
other officers and offices of the Department of the Army under—
(1) the following law and provisions of law relating gener-
ally to water vessel anchorages:
(A) Section 7 of the Act of March 4, 1915, as amended
(38 Stat. 1053; 33 U.S.C. 471).
(B) Article 11 of section 1 of the Act of June 7, 1897,
as amended (30 Stat. 98; 33 U.S.C. 180).
[p. 939]
(C) Rule 9 of section 1 of the Act of February 8, 1895,
as amended (28 Stat. 647; 33 U.S.C. 258).
(D) Rule numbered 13 of section 4233 of the Revised
Statutes, as amended (33 U.S.C. 322).
(2) the following provision of law relating generally to
drawbridge operating regulations: Section 5 of the Act of
August 18, 1894, as amended (28 Stat. 362; 33 U.S.C. 499).
(3) the following law relating generally to obstructive
bridges: The Act of June 21, 1940, as amended (54 Stat. 497;
33 U.S.C. 511 etseq.).
(4) the following laws and provisions of law relating gen-
erally to the reasonableness of tolls:
(A) Section 4 of the Act of March 23, 1906, as
amended (34 Stat. 85; 33 U.S.C. 494).
(B) Section 503 of the General Bridge Act of 1946, as
amended (60 Stat. 847; 33 U.S.C. 526).
(C) Section 17 of the Act of June 10, 1930, as
amended (46 Stat. 552; 33 U.S.C. 498a).
(D) The Act of June 27, 1930, as amended (46 Stat.
821; 33 U.S.C. 498b).
(E) The Act of August 21, 1935, as amended (49 Stat.
670; 33 U.S.C. 503 etseq.).
(5) the following law relating to prevention of pollution of
the sea by oil: The Oil Pollution Act, 1961, as amended (75
Stat. 402; 33 U.S.C. 1001 et seq.).
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STATUTES AND LEGISLATIVE HISTORY 735
(6) the following laws and provision of law to the extent
that they relate generally to the location and clearances of
bridges and causeways in the navigable waters of the United
States:
(A) Section 9 of the Act of March 3, 1899, as
amended, (30 Stat. 1151; 33 U.S.C. 401).
(B) The Act of March 23, 1906, as amended (34 Stat.
84; 33 U.S.C. 491etseq.).
(C) The General Bridge Act of 1946; as amended (60
Stat. 847; 33 U.S.C. 525 et seq.).
[p. 940]
TRANSPORTATION INVESTMENT STANDARDS
Sec. 7. (a) The Secretary, subject to the provisions of section 4
of this Act, shall develop and from time to time in the light of
experience revise standards and criteria consistent with national
transportation policies, for the formulation and economic evalua-
tion of all proposals for the investment of Federal funds in trans-
portation facilities or equipment, except such proposals as are
concerned with (1) the acquisition of transportation facilities or
equipment by Federal agencies in providing transportation serv-
ices for their own use; (2) an interoceanic canal located outside
the contiguous United States; (3) defense features included at the
direction of the Department of Defense in the design and con-
struction of civil air, sea, and land transportation; (4) programs
of foreign assistance; (5) water resource projects; or (6) grant-
in-aid programs authorized by law. The standards and criteria
developed or revised pursuant to this subsection shall be promul-
gated by the Secretary upon their approval by the Congress.
The standards and criteria for economic evaluation of water
resource projects shall be developed by the Water Resources Coun-
cil established by Public Law 89-80. For the purpose of such
standards and criteria, the primary direct navigation benefits of a
water resource project are defined as the product of the savings to
shippers using the waterway and the estimated traffic that would
use the waterway; where the savings to shippers shall be con-
strued to mean the difference between (a) the freight rates or
charges prevailing at the time of the study for the movement by
the alternative means and (b) those which would be charged on
the proposed waterway; and where the estimate of traffic that
would use the waterway will be based on such freight rates, taking
into account projections of the economic growth of the area.
The Water Resources Council established under section 101 of
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736 LEGAL COMPILATION—GENERAL
Public Law 89-80 is hereby expanded to include the Secretary of
Transportation on matters pertaining to navigation features of
water resource projects.
(b) Every survey, plan, or report formulated by a Federal
agency which includes a proposal as to which the Secretary has
promulgated standards and criteria pursuant to subsection (a)
shall be (1) prepared in accord with such standards and criteria
and upon the basis of information furnished by the Secretary with
respect to projected growth of transportation needs and traffic in
the affected area, the relative efficiency of various modes of trans-
port, the available transportation services in the area, and the
general effect of the proposed investment on existing modes, and
on the regional and national economy; (2) coordinated by the
proposing agency with the Secretary and, as appropriate, with
other Federal agencies, States, and local units of government for
inclusion of his and their views and comments; and (3) transmit-
ted thereafter by the proposing agency to the President for dispo-
sition in accord with law and procedures established by him.
[P. 941]
1.5a(l) HOUSE COMMITTEE ON GOVERNMENT
OPERATIONS
H.R. REP. No. 1701, 89th Cong., 2d Sess. (1966)
ESTABLISHING A DEPARTMENT OF TRANSPORTATION,
AND FOR OTHER PURPOSES
SEPTEMBER 27,1966.—Ordered to be printed
Mr. McCLELLAN, from the Committee on Government Opera-
tions, submitted the following
REPORT
[To accompany H.R. 15S63]
The Committee on Government Operations, to which was re-
ferred the bill (H.R. 15963), to establish a Department of Trans-
portation, and for other purposes, having considered the same,
reports thereon without recommendation.
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STATUTES AND LEGISLATIVE HISTORY 737
The committee, in ordering H.R. 15963 reported without recom-
mendation, calls attention to the fact that it has reported favora-
bly S.3010, the Senate version of this legislation.
1.5a(2) SENATE COMMITTEE ON GOVERNMENT
OPERATIONS
S. REP. No. 1659, 89th Cong., 2d Sess. (1966)
DEPARTMENT OF TRANSPORTATION ACT
JULY 15, 1966.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. DAWSON, from the Committee on Government Operations,
submitted the following
REPORT
[To accompany H.R. 15963]
The Committee on Government Operations, to whom was re-
ferred the bill (H.R. 15963) to establish a Department of Trans-
portation, and for other purposes, having considered the same,
report favorably thereon with amendments and recommend that
the bill as amended do pass.
[p.l]
SUMMARY AND PURPOSE OF THE BILL (AS AMENDED)
H.R. 15963 was introduced by Congressman Chet Holifield to
carry out a recommendation made to Congress by the President to
establish a new executive Department of Transportation to bring
together major Federal agencies and activities involving transpor-
tation promotion and safety, but not economic regulation which
would remain with the appropriate regulatory agencies. H.R.
15963 is a clean bill that represents a substantial rewriting by the
committee of H.R. 13200, originally introduced.
In his message to Congress on transportation of March 2, 1966
(H. Doc. 89-399), the President urged the creation of such a
Department to serve the growing demands of this great Nation, to
[p. 2]
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738 LEGAL COMPILATION—GENERAL
satisfy the needs of our expanding industry and to fulfill the
rights of our taxpayers to maximum efficiency and frugality in
Government operations. The new Department would bring to-
gether almost 100,000 employees and $6 billion of Federal funds
presently devoted annually to transportation.
The Department will be headed by a Secretary, an Under Secre-
tary, four Assistant Secretaries, an Assistant Secretary for
Administration, and a General Counsel. The principal operating
divisions will be a Federal Highway Administration, a Federal
Railroad Administration, a Federal Maritime Administration, a
Federal Aviation Administration, each headed by an Adminis-
trator appointed by the President and confirmed by the Senate,
and the Coast Guard, headed by the Commandant. There will also
be an Office of Accident Investigation, whose primary responsi-
bility will be to investigate major aircraft accidents. This office
will be independent of the Federal Aviation Administration.
The bill will create, within the Department, a National Trans-
portation Safety Board to review investigations of accidents and
to determine their causes. It will make reports to the Secretary
and to Congress, including recommendations for safety legislation.
Specifically, the Board will carry out the functions transferred
directly to it by the bill to decide the cause or probable cause of
transportation accidents and to review, on appeal, the amendment,
suspension, modification, revocation, or denial of certificates or
licenses issued by the Secretary. The Board will have the authority
to require the Secretary to conduct further investigations, or take
such other measures as the Board believes are required to develop
all facts and circumstances surrounding an accident. The Board
will also have the authority to require the Secretary to initiate
specific accident investigations. It will make special studies of
safety and accident prevention, and may arrange for the personal
participation of its members or employees in the investigation of
accidents by the Department.
The following agencies and functions are being transferred to
the new Department:
1. The Office of the Under Secretary of Commerce for Transpor-
tation, and its policy, program, emergency transportation, and
research staffs.
2. The Bureau of Public Roads and the Federal-aid highway
program it administers—to become a principal element of the
Federal Highway Administration.
3. The Federal Aviation Agency with its functions in aviation
-------
STATUTES AND LEGISLATIVE HISTORY 739
safety, promotion, development, and grant programs—to become
the Federal Aviation Administration.
4. The Coast Guard, whose principal peacetime activities relate
to transportation and marine safety—to be transferred as a unit
from the Treasury Department. As in the past, the Coast Guard
will operate as part of the Navy in time of war.
5. The Maritime Administration, with its construction and oper-
ating subsidy programs—to become the Federal Maritime Admin-
istration.
6. The functions of the CAB to determine the probable cause of
aircraft accidents and its appellate functions related to safety
certificates and licenses are transferred to the National Transpor-
tation Safety Board. The CAB's function of investigating aircraft
[p. 3]
accidents is transferred to the Secretary and will be delegated to
the Office of Accident Investigation.
7. The safety functions of the Interstate Commerce Commission,
principally the inspection and enforcement of safety regulations
for railroads, motor carriers, and pipelines.
8. The Great Lakes Pilotage Administration, and certain minor
transportation-related activities of other agencies. In his message
on transportation, the President stated that the St. Lawrence Sea-
way Development Corporation and the Alaska Railroad would be
transferred to the Department by Executive order.
The bill will also require the Secretary of Transportation to
develop standards and criteria, consistent with national transpor-
tation policies, for the formulation and economic evaluation of all
proposals for the investment of Federal funds in transportation
facilities or equipment with certain exceptions listed in the bill.
standards and criteria involving water resources projects and
grant-in-aid programs including highway and airport construction
were among those excepted.
Nothing in the bill authorizes the Secretary, without appropri-
ate action by Congress, to adopt or revise a national transporta-
tion policy.
HEARINGS
Hearings on the bill were held by the Subcommittee on Execu-
tive and Legislative Reorganization at which time representatives
of the administration, officials of the affected agencies, representa-
tives of industry and labor groupings and transportation experts,
among others, testified. The hearings consumed 11 days. Virtually
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740 LEGAL COMPILATION—GENERAL
all points of view were presented and carefully considered by the
subcommittee. The printed record contains approximately 1,200
pages. (See "Hearings on H.R. 13200, Creating a Department of
Transportation," vols. 1 and 2, Committee on Government Opera-
tions, House of Representatives, 89th Cong., 2d sess., cited hereaf-
ter as "Hearings.")
[p. 41
(10) Federal investment standards will be developed for bal-
anced progress in transportation.—Throughout our history, public
investment in transportation facilities has been common, often on
a massive scale. Inconsistencies in Federal policies governing pub-
lic investment decisions have been cited repeatedly by analysts and
critics in the transportation field. The underlying cause of these
inconsistencies appears to be a lack of clear standards for prepa-
ration and evaluation of investment proposals.
The Secretary of Transportation would be required to develop
standards and criteria, subject to Presidential approval, to be used
in the formulation and economic evaluation of proposals for the
investment of Federal funds in transportation facilities or equip-
ment. The committee views this authority conferred upon the Sec-
retary of Transportation as a means of obtaining a more rational
allocation of Government resources as determined by Federal in-
vestment. The analytic tools and statistical information for mak-
ing such public investment decisions will improve in the years
ahead, but the effort springs from the commonsense requirement
which the Congress has put upon reclamation and other water
resource projects for many years; namely, that the benefits exceed
the cost.
Responsibility to develop investment standards for water re-
source projects now is assigned by law to the Water Resources
Council. The Secretary of Transportation would exercise an analo-
gous function in his field. The committee recognizes that since
water resource projects may have transportation features, there
will be areas of overlap or mutual interest on the part of the
Council and the Secretary. Although the bill originally attempted
to define the relationship between the two in areas of mutual
interest, a committee amendment exempts water resource projects
from the Secretary's purview, so far as promulgating standards
and criteria is concerned. In executing its own responsibilities, the
Water Resources Council is required by Public Law 89-80 to con-
sult with Federal agencies when appropriate. Since the President
-------
STATUTES AND LEGISLATIVE HISTORY 741
must approve standards and criteria to be promulgated, whether
by the Council or the Secretary, there is nothing in the bill to
prevent the President from seeking advice and recommendations
from either source in regard to proposed projects in which there is
mutual interest.
The exemption of water resource projects reflects the concern of
some that in developing investment standards for the transporta-
tion features of such projects, the Secretary might alter the proce-
dures for referral of Corps of Engineers reports to the Congress.
The committee wishes to make it clear that Corps referral proce-
dures are in no way altered under the bill. To reaffirm congres-
sional prerogatives, the committee has written language into the
bill which makes it clear that any policies prescribed by the Con-
gress itself in existing or future acts must be observed by the
Secretary in developing standards and criteria for economic evalu-
ation of transportation proposals and projects. And to remove any
doubt on that score, the bill provides that the Secretary cannot
promulgate investment standards or criteria contrary to or incon-
[p. 13]
sistent with acts of Congress relating to this subject. Finally, the
Secretary is enjoined from adopting or revising a national trans-
portation policy without appropriate action by the Congress.
Besides these safeguards, there are specific exceptions from the
Secretary's authority to promulgate standards and criteria for
economic evaluation: (1) Procurement of transportation facilities
or equipment by Federal agencies in providing transportation for
their own use; (2) grants-in-aid programs authorized by law; (3)
interoceanic canal outside the continental United States; (4) de-
fense features in design and construction of civil transportation;
(5) programs of foreign assisance; and (6) water resource proj-
ects. The grants-in-aid exception gives added assurance, if any is
needed, that the highway trust fund will be administered as the
Congress has provided and will not be subject to diversions by any
decision of the Secretary.
Before the Secretary presents standards and criteria to the
President for approval, he must publish a notice in the Federal
Register and provide an opportunity for interested persons to
present their views. This requirement also will afford an opportu-
nity for interested congressional committees to inquire into the
proposed standards and criteria.
[p. 14]
-------
742 LEGAL COMPILATION—GENERAL
EXPLANATION OF AMENDMENTS
4. The committee voted to drop from H.R. 15963 the two sen-
tences in subsection 7 (a) dealing with the Water Resources Coun-
cil and standards and criteria for economic evaluation of transpor-
tation features of water resource projects. Related to this deletion
was the committee's action to add "water resource projects" to the
list of categories of investment proposals specifically excepted
from the authority given the Secretary to develop standards and
criteria for Federal investments in transportation facilities or
equipment. The effect of these amendments is to remove water
resource projects from the Secretary's authority to establish
standards and criteria.
The development of standards and criteria for formulating and
evaluating Federal water resource projects is an involved and
many-sided subject with a long and still evolving history extend-
ing as far back as the River and Harbor Act of 1902. The commit-
tee decided, through the above-mentioned amendments, to remove
this subject matter from the operation of the bill, feeling, in any
event, that its retention was not necessary in order to preserve the
purpose and effectiveness of the bill.
Among the factors and circumstances contributing to the com-
mittee's decision to adopt the amendments are the following:
(a) The numerous Federal water resource projects involve
enormous investments of Federal funds. The projects are con-
structed by a number of different agencies. A great many of
such projects incorporate transportation features either as
principal or incidental works. Congress has always been
keenly interested in the policies, standards, and procedures
used by these agencies to formulate and evaluate proposed
water resource projects prior to their submission for legisla-
tive consideration. Many of these policies, procedures, and
standards are, in fact, statutory; while others, of administra-
tive origin, reflect basic policies laid down by Congress. The
committee recognizes that this is an area with which not
[p. 16]
merely the Government Operations Committee, but other
committees of Congress are deeply concerned.
(&) H.R. 15963, as introduced, would have directed the
establishment by the Secretary of Transportation of economic
standards and criteria for the evaluation of transportation
features of water resource projects, with the requirement
-------
STATUTES AND LEGISLATIVE HISTORY 743
that they be compatible with the standards and criteria for
nontransportation features of such projects. H.R. 15963
would, in effect, have split off transportation features of
water resource projects from other features and given them a
separate status.
At present, all Federal water development projects are being
formulated and evaluated in accordance with policies, stand-
ards and procedures promulgated by the President in May
1962 (printed as S. Doc. No. 97, 87th Cong.). However, under
the Water Resources Planning Act of July 22, 1965 (Public
Law 89-80), the Water Resources Council was created com-
prising the Secretaries of the Interior, the Army, Agricul-
ture, and Health, Education, and Welfare as well as the
Chairman of the Federal Power Commission. One of the
Council's chief duties under the 1965 act is to establish "prin-
ciples, standards, and procedures for Federal participants in
the preparation of comprehensive regional or river basin
plans and for the formulation and evaluation of Federal
water and related land resources projects." The Council has
not yet established such principles, standards and procedures.
Of course, how these might follow or depart from those of
Senate Document No. 97 cannot now be ascertained.
(c) Reorganization Plan No. 2 of 1966 transferred certain
water pollution control functions from the Secretary of
Health, Education, and Welfare to the Secretary of the Inte-
rior. This plan became effective May 10, 1966. While the Sec-
retary of Health, Education, and Welfare retains some public
health functions concerning this subject matter, most of his
former functions relating to water pollution prevention, con-
trol, and abatement are now vested in the Secretary of the
Interior. Thus the role of the Secretary of the Interior on the
Water Resources Council is to that extent enhanced. Further-
more, the President has appointed the Secretary of the Inte-
rior as Chairman of the Council.
[p. 17]
PRINCIPAL DIFFERENCES BETWEEN H.R. 13200 AND H.R. 15963 AS
REPORTED
*******
[p. 18]
11. Subsection 7 (a) of H.R. 13200 provided that there should be
consultation between the Secretary and the Water Resources
Council with respect to standards and criteria for economic evalu-
-------
744 LEGAL COMPILATION—GENERAL
ation of the transportation features of multipurpose water re-
source projects and that these standards and criteria should be
compatible with those applicable to nontransportation features of
such projects. This provision was deleted by the committee. In a
related change, the committee added in subsection 7 (a) a sixth
category to the list of excepted categories of investment proposals;
namely, water resource projects. Further discussion of the
changes may be found supra under the heading "Explanation of
Committee Amendments."
12. Subsection 7(b) has been changed to provide that among the
data supplied by the Secretary to be used by Federal agencies in
formulating individual proposals or projects shall be information
regarding the general effect of the proposed investments on the
overall transportation system of the area. The purpose of this
change is to require that a broad view be taken of the overall
transportation system and needs of an area in formulating plans
for Federal investment in transportation projects relating to it.
13. Section 7 (b) has also been amended to eliminate the require-
ment that all individual projects and proposals for Federal invest-
ments in transportation be channeled automatically through the
President. Instead, the bill would now require the agency, after
securing the necessary clearances, to transmit the plan for disposi-
tion in accordance with law and with procedures established by
the President. This change is designed to preserve the direct
transmission of projects from an agency to Congress where it may
now be required by law, and to eliminate the requirement that the
President give consideration to thousands of individual plans, pro-
posals, and projects.
[p. 221
COMMENT ON OBJECTIONS MADE TO DEPARTMENT OF
TRANSPORTATION BILL
(c) Fears that the Secretary might in some way impede the
development of water resource projects have been taken care of by
eliminating water resource projects from section 7 of the bill and
by preserving the direct reference of project proposals from the
Corps of Engineers to the Congress. These actions are discussed
on pages 16 and 22, supra.
[p. 231
-------
STATUTES AND LEGISLATIVE HISTORY 745
1.5a(3) SENATE COMMITTEE ON GOVERNMENT
OPERATIONS
S. REP. No. 1660, 89th Cong., 2d Sess. (1966)
ESTABLISHING A DEPARTMENT OF TRANSPORTATION,
AND FOR OTHER PURPOSES
SEPTEMBER 27,1966.—Ordered to be printed
Filed under authority of the order of the Senate of September 27,1966
Mr. McCLELLAN, from the Committee on Government Operations,
submitted the following
REPORT
together with
ADDITIONAL VIEWS
[To accompany S. 3010]
The Committee on Government Operations, to which was
referred the bill (S. 3010) to establish a Department of Transpor-
tation, and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
The amendment is in the nature of a substitute.
PURPOSE
The purpose of S. 3010 as amended, is to centralize in one new
Cabinet-level department the responsibility for leadership in the
development, direction, and coordination of the principal transpor-
tation policies, functions, and operations of the Federal Govern-
ment which are now carried on by some 100,000 Federal employ-
ees in several departments, agencies, and independent regulatory
agencies and elements thereof, involving annual expenditures ap-
proximating $6 billion; and to provide within the Federal Govern-
ment a focal point of responsibility for transportation safety.
The bill as amended seeks to accomplish this objective by estab-
lishing a Department of Transportation to which would be trans-
ferred the major transportation agencies and functions of the
Federal Government, other than the economic regulatory func-
-------
746 LEGAL COMPILATION—GENERAL
tions of the Interstate Commerce Commission, the Civil Aeronau-
tics Board, the Federal Maritime Commission, and the Federal
[p.1]
Power Commission; and by transferring to the Secretary, modal
Administrators, and a newly created National Transportation
Safety Board all of the transportation safety responsibilities
which are now vested in agencies throughout the Government.
Although some 35 Federal agencies currently have transportation
responsibilities, only those agencies or functions would be trans-
ferred which are more closely related to the major purpose of the
Department of Transportation than they are to their principal
organizational bases.
S. 3010 was introduced by Senator Warren G. Magnuson at the
request of the President of the United States, in order to imple-
ment one of the principal proposals contained in the President's
transportation message, dated March 2, 1966, proposing, among
other things, the establishment of a Department of Transportation
and a National Transportation Safety Board.
[P. 2]
HEARINGS
The committee held 9 days of hearings on S.3010, receiving
testimony from 58 witnesses representing the executive branch,
independent regulatory agencies, industry, labor, and the public.
In addition, 36 exhibits and 50 statements and communications
were incorporated into the hearing record which is contained in 4
volumes totaling 743 pages.
The principal issues which emerged from the hearings related
primarily to (1) clarification of the respective roles of the Secre-
tary and the Department of Transportation and the Congress with
respect to national transportation policy; (2) assurance of the
operational continuity and integrity of the agencies transferred;
(3) provision for Presidential appointment with Senate confirma-
tion of the heads of the modal operating agencies within the
Department; (4) assurance of complete independence of the
National Transportation Safety Board with respect to its adjudi-
catory and appellate functions; (5) the continued separation of
accident investigations and determination of probable cause in
major air accidents from the operating agency; (6) assurance of
the application of the Administrative Procedures Act to the
issuance of safety regulations and other quasi-legislative and
[p. 3]
-------
STATUTES AND LEGISLATIVE HISTORY 747
quasi-judicial actions by the Secretary of Transportation, the
Administrators, the Maritime Board, and the National Transpor-
tation Safety Board, as provided in existing law; (7) transfer of
all mass transit functions and responsibilities from the Department
of Housing and Urban Development to the Department of Trans-
portation; (8) the retention by the Interstate Commerce Commis-
sion of all of its car-service functions including those relating to
the supply of freight cars, distribution and fixing of per diem and
demurrage rates; and (9) the effect of transportation investment
standards on certain programs, such as the multipurpose water
resource projects of the Corps of Engineers.
[p. 4]
POLICY AND PURPOSE
*******
An additional amendment was added to section 2 declaring it to
be national policy that, in carrying out the provisions of this act,
special effort be made to preserve the national beauty of the coun-
tryside and public park and recreational lands, wildlife and water-
fowl refuges and historic sites.
Subsection 4 (a) of S. 3010, as introduced, details the specific
duties and areas of responsibility of the Secretary with respect to
various transportation policies and programs and requires him to
develop such policies and programs and make recommendations
for their implementation. In order to clarify the respective roles
of the Secretary and the Congress, the committee amended this
language so as to require the Secretary to provide leadership in
the development of such policies and programs, and to make rec-
ommendations for their implementation to the President and the
Congress.
Additional amendments to subsection 4 (a) require the Secre-
tary to (1) include noise abatement, with particular reference to
aircraft noise, in connection with his responsibility for the promo-
tion and undertaking of research and development in all modes
and types of transportation services and facilities; and (2) to
consult with the heads of other Federal departments and agencies
engaged in the procurement of transportation or the operation of
their own transport services to encourage them to establish and
observe policies consistent with the maintenance of a coordinated
transportation system operated by private enterprise.
The noise abatement provision was deemed necessary in view of
the increasing use of jet aircraft in and around urban and subur-
-------
748 LEGAL COMPILATION—GENERAL
ban areas, resulting in a large volume of complaints concerning
the noise from local residents. The consultation amendment was
added in order to insure maximum coordination with respect to
transportation policies among Government agencies.
A new subsection 4(f) was added which requires the Secretary
of Transportation to cooperate and consult with the Secretaries of
the Interior; Health, Education, and Welfare; Agriculture and
with the States in all transportation plans and programs; and,
after the effective date of the act, the Secretary would not be
[p. 5]
permitted to approve the project or plan requiring the use of land
from a public park, recreational area, wildlife and waterfowl ref-
uges, historical sites, unless there is no feasible alternative to the
use of such land and such plans include all possible planning to
minimize harm to such area. This, and the policy statement in
section 2, are designed to insure that in planning highways, rail-
road rights-of-way, airports and other transportation facilities,
care will be taken, to the maximum extent possible, not to inter-
fere with or disturb established recreational facilities and refuges.
[p. 6]
TRANSPORTATION INVESTMENT STANDARDS
Subsection 7 (a) of S.3010, as introduced, would have required
the Secretary of Transportation to develop standards and criteria
for the formulation and economic evaluation of all proposals for
the investment of Federal funds in transportation facilities or
equipment, with certain stated exceptions (purchase of transpor-
tation facilities for agency use, an interoceanic canal, defense fea-
tures included at the direction of the Department of Defense and
foreign aid). The standards and criteria for economic evaluation
of the transportation features of multipurpose water resource proj-
ects were to be developed by the Secretary after consultation with
the Water Resources Council and were required to be compatible
with the standards and criteria for economic evaluation applicable
to nontransportation features of such projects. Standards and cri-
teria developed pursuant to this subsection were to be promul-
gated by the Secretary upon their approval by the President.
[p. 12]
-------
STATUTES AND LEGISLATIVE HISTORY 749
Subsection 7 (b) required that every survey, plan or report for-
mulated by a Federal agency which includes a proposal as to
which the Secretary has issued standards and criteria pursuant to
subsection (a), be prepared in accordance with those standards
and criteria and on the basis of transportation data furnished by
the Secretary of Transportation and coordinated by the proposing
agency with the Secretary and other Government agencies before
transmission to the President for appropriate disposition.
During the hearings, considerable concern was expressed by
witnesses, as well as by committee members, regarding the effect
of this section on congressionally-approved transportation invest-
ment projects, in general, and upon the future of multipurpose
water resource projects, in particular. Questions were also raised
as to the effect of section 7 on the present role of the Corps of
Engineers in the planning and development of multipurpose water
resource projects. Finally, the committee received testimony to the
effect that the authority to establish standards and criteria for the
evaluation of water resources projects has been placed by the
Congress in the Water Resources Council, when it enacted Public
Law 89-80; and that since November 1964, when the Bureau of
the Budget changed the criteria for the economic evaluation of
water resources projects from the current rates to water-com-
pelled rates, not a single project has been approved.
The committee recognizes that there is a need for orderly proce-
dures within the Federal Government in the determination of
allocations of Federal funds for investment in transportation fa-
cilities and equipment. Therefore, it was decided to retain this
section, after amending it so as to correct its defects and omis-
sions, despite the fact that the House of Representatives elimi-
nated it from the House-passed act. Accordingly, the committee
adopted amendments to subsection 7 (a) which (1) added water
resource projects as a fifth exemption from the Secretary's au-
thority to establish standards and criteria for the economic evalu-
ation of Federal transportation investments; (2) provided for
approval by the Congress, instead of by the President, of stand-
ards and criteria developed by the Secretary prior to their promul-
gation; (3) provided for the development by the Water Resources
Council of standards and criteria for the economic evaluation of
water resource projects; (4) established a definition of primary
direct navigation benefits of water resource projects, thus restor-
ing the criteria followed by the Corps of Engineers prior to
November 1964, when the Bureau issued new criteria for the
evaluation of such projects; and (5) includes the Secretary of
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750 LEGAL COMPILATION—GENERAL
Transportation as a member of the Water Resources Council on
matters pertaining to navigation features of water resource
projects.
By way of explanation, the committee adopted the first amend-
ment, exempting water resource projects from the criteria to be
established by the Secretary of Transportation because navigation
is a major function of any total concept of water resource develop-
ment and, therefore, other phases of water resource development
should not be influenced by standards and criteria established for
application to problems related solely to transportation. The sec-
ond amendment struck out the specific language relating to the
transportation features of multipurpose water resource projects,
since the previous amendment exempted water resource projects
from the Secretary's authority.
[p. 13]
The third amendment, requiring congressional instead of Presi-
dential approval of the standards and criteria developed or revised
pursuant to this subsection, prior to their promulgation by the
Secretary, was intended to retain within the Congress its constitu-
tional authority to regulate commerce among the several States. A
blanket delegation of such widespread authority to the executive
branch of the Government is considered unwise. The result of this
amendment is to place upon the Secretary of Transportation the
responsibility for developing the standards and criteria, but the
final responsibility for their approval is retained in the Congress.
The fourth amendment would continue the authority of the
Water Resources Council to establish standards and criteria for
the evaluation of water resource projects where it was placed by
the Congress last year when the Council was established by sec-
tion 101 of Public Law 89-80. In addition, it would set forth a
definition of primary navigation benefits which the committee
deemed necessary in order to insure that future projects will be
evaluated on the same basis as those which have resulted in the
development of this Nation's outstanding system of inland naviga-
tion which has served so well in peace and war. After providing
that the standards and criteria for economic evaluation of water
resource projects shall be developed by the Water Resources Coun-
cil, the amended language provides:
For the purpose of such standards and criteria, the pri-
mary direct navigation benefits of a water resource project
are defined as the product of the savings to shippers using the
waterway and the estimated traffic that would use the water-
-------
STATUTES AND LEGISLATIVE HISTORY 751
mean the difference between (a) the freight rates or charges
prevailing at the time of the study for the movement by the
alternative means and (b) those which would be charged on
the proposed waterway; and where the estimate of traffic that
would use the waterway will be based on such freight rates,
taking into account projections of the economic growth of the
area.
The fifth amendment which merely expands the membership of
the Water Resources Council to include the Secretary of Transpor-
tation in matters pertaining to navigation features of water re-
source projects, is entirely consistent with the intent of section
101 of Public Law 89-80, which established the Council.
In connection with the definition of primary direct benefits,
contained in the fourth amendment and set forth above, the com-
mittee desires to make it abundantly clear that in estimating navi-
gation benefits, the Corps of Engineers is to use the rates prevail-
ing in the area under consideration in the survey report and is not
to introduce a freight rate applied in some other area, even though
it may have limited application in the transportation of commodi-
ties from other regions to an area that could be served by the
proposed development.
[p. 14]
SECTION-BY-SECTION ANALYSIS OF S. 3010
SECTION 1. SHORT TITLE
This section provides that the act may be cited as the "Depart-
ment of Transportation Act."
SECTION 2. DECLARATION OF PURPOSE
The first paragraph of this section declares the need for devel-
opment of national transportation policies and programs. Such
policies are to be evolved to provide a coordinated transportation
system, permitting travelers and goods to move conveniently and
efficiently from one means of transportation to another, consistent
with national transportation policy standards, conservation, and
efficient utilization of our national resources.
The second paragraph of this section finds a need for the estab-
lishment of a Department of Transportation in order to assure
coordination of Federal transportation programs; to facilitate the
development and improvement of coordinated transportation serv-
ice, to be provided by private enterprise to the maximum extent
feasible; to encourage cooperation in achieving national transpor-
-------
752 LEGAL COMPILATION—GENERAL
tation objectives by Federal, State, and local governments, car-
riers, labor and other interested parties; to stimulate technological
[p. 19]
advances in transportation; to provide general leadership in the
identification and solution of transportation problems; and to de-
velop and recommend to the President and the Congress changes
in national transportation policies and programs to accomplish
these objectives.
The third paragraph of this section declares as a national policy
that in implementing the provisions of this act, special effort
should be made to preserve the natural beauty of the countryside
and public park and recreation lands, wildlife and waterfowl ref-
uges, and historic sites.
[p. 20]
SECTION 4. GENERAL PROVISIONS
This section enumerates specific duties of the Secretary in car-
rying out the purposes of this act. Subsection (a) directs the
Secretary to exercise leadership under the direction of the Presi-
dent in transportation matters, including those affecting the na-
tional or regional emergencies; provide general leadership in the
development of national transportation policies and programs, and
make recommendations to the President and the Congress for
their implementation; promote and undertake development, collec-
tion, and dissemination of technological, statistical, economic and
other transportation information; promote and undertake re-
search and development in and among all modes and promote and
undertake the research and development with respect to types of
transportation services and facilities; noise abatement, with par-
ticular attention to aircraft noise; and, consult with the heads of
other departments and agencies engaged in the transportation of
Government goods and personnel or operating their own transport
services, to encourage these departments and agencies to establish
and observe transportation policies consistent with the objectives
of this act.
*******
[p. 21]
Subsection (4) (f) directs the Secretary to cooperate and con-
sult with the Secretaries of the Interior, Housing and Urban De-
velopment and Agriculture, and with the States, and to include all
transportation plans and programs measures to maintain or en-
-------
STATUTES AND LEGISLATIVE HISTORY 753
hance the natural beauty of the lands traversed by transportation
agencies. The Secretary shall not approve any program or project
after the effective date of this act requiring the use of such lands
or sites unless (1) there is no feasible alternative to the use of
such land and (2) such program includes all possible planning to
minimize harm to such areas resulting from such use.
Subsection (g) directs the Secretary and the Secretary of Hous-
ing and Urban Development to consult and exchange information
on their respective transportation policies and activities; to carry
on joint planning, research, and other activities; and, to coordi-
nate assistance for local transportation projects. They are to un-
dertake joint studies to determine how Federal policies and pro-
grams can best assure that urban transportation systems serve
both national transportation and urban development needs. Within
1 year after the act, and annually thereafter, they shall report
their studies and activities to the President, for submission to the
Congress, along with any legislative recommendations they deem
desirable.
[p. 22]
SECTION 6. TRANSFERS TO DEPARTMENT
Subsection (g) transfers to and vests in the Secretary all func-
tions, powers, and duties of the Secretary of the Army and other
officers and offices of the Department of the Army as to certain
laws and provisions of law relating generally to (1) water vessel
anchorages; (2) drawbridge operating regulations; (3) obstruc-
tive bridges; (4) the reasonableness of tolls; (5) the prevention
of pollution of the sea by oil; and (6) the location and clearance of
bridges and causeways in the navigable waters of the United
States.
*******
[P. 27]
SECTION 7. TRANSPORTATION INVESTMENT STANDARDS
Subsection (a) directs the Secretary to develop and, in the light
of experience, to revise standards and criteria consistent with the
national transportation policies, for the formulation and economic
evaluation of all proposals except such proposals as are concerned
with (1) the investment of Federal funds in transportation facili-
ties or equipment by Federal agencies in providing transportation
-------
754 LEGAL COMPILATION—GENERAL
services for their own use; (2) an interoceanic canal located out-
side the contiguous United States; (3) defense features included
at the direction of the Department of Defense in the design and
construction of civil air, sea, and land transportation; (4) pro-
grams of foreign assistance; or (5) water resource projects.
These standards or criteria as developed or revised shall be pro-
mulgated by the Secretary upon their approval by the Congress.
Subsection (a) also provides that the standards and criteria for
economic evaluation of water resource projects shall be developed
by the Water Resources Council. The Water Resources Council is
expanded to include the Secretary of Transportation on matters
pertaining to navigation features of water resources projects. For
the purpose of such standards and criteria, this subsection defines
"the primary direct navigation benefits of a water resource proj-
ect as the product of the savings to shippers using the waterway
and the estimated traffic that would use the waterway." The term
"savings to shippers" is construed to mean the difference between
(a) the freight rates or charges prevailing at the time of the
study for the movement by the alternative means and (6) those
which would be charged on the proposed waterway. The estimate
of traffic that would use the waterway is to be based on such
freight rates, taking into account projections of the economic
growth of the area.
Subsection (b) directs that every survey, plan, or report for-
mulated by a Federal agency which includes a proposal as to
[p. 27]
which the Secretary has promulgated standards and criteria pur-
suant to subsection (a) shall be prepared in accord with such
standards and criteria and upon the basis of information fur-
nished by the Secretary with respect to (1) projected growth of
transportation needs and traffic in the affected area; (2) the rela-
tive efficiency of various modes of transport; (3) the available
transportation services in the area; and (4) the general effect of
the proposed investment on existing modes, and on the regional
and national economy. Every such survey, plan, or report shall
also be coordinated by the proposing agency with the Secretary
and appropriate Federal agencies, States, and local units of gov-
ernment for inclusion of their comments; and, thereafter, trans-
mitted by the proposing agency to the President for disposition in
accord with law and procedures established by him.
[p. 28]
-------
STATUTES AND LEGISLATIVE HISTORY 755
1.5a(4) COMMITTEE OF CONFERENCE
H.R. REP. No. 2236, 89th Cong., 2d Sess. (1966)
DEPARTMENT OF TRANSPORTATION ACT
OCTOBER 12, 1966.—Ordered to be printed
Mr. HOLIFIELD, from the committee of conference, submitted
the following
CONFERENCE REPORT
[To accompany H.R. 15963]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 15963)
to establish a Department of Transportation, and for other pur-
poses, having met, after full and free conference, have agreed to
recommend and do recommend to their respective Houses as fol-
lows:
That the House recede from its disagreement to the amendment
of the Senate and agree to the same with an amendment as
follows:
In lieu of the matter proposed to be inserted by the Senate
amendment insert the following:
That this Act may be cited as the "Department of Transportation
Act."
Declaration of Purpose
Sec. 2. (a) The Congress hereby declares that the general wel-
fare, the economic growth and stability of the Nation and its
security require the development of national transportation poli-
cies and programs conducive to the provision of fast, safe, effi-
cient, and convenient transportation at the lowest cost consistent
therewith and with other national objectives, including the effi-
cient utilization and conservation of the Nation's resources.
(b) (1) The Congress therefore finds that the establishment of a
Department of Transportation is necessary in the public interest
and to assure the coordinated, effective administration of the
transportation programs of the Federal Government; to facilitate
the development and improvement of coordinated transportation
service, to be provided by private enterprise to the maximum
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756 LEGAL COMPILATION — GENERAL
extent feasible; to encourage cooperation of Federal, State, and
local governments, carriers, labor, and other interested parties
toward the achievement of national transportation objectives; to
stimulate technological advances in transportation; to provide
general leadership in the identification and solution of transporta-
tion problems; and to develop and recommend to the President
and the Congress for approval national transportation policies and
programs to accomplish these objectives with full and appropriate
consideration of the needs of the public, users, carriers, industry,
labor, and the national defense.
(2) It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the coun-
tryside and public park and recreation lands, wildlife and water-
fowl refuges, and historic sites.
[p. 2]
General Provisions
Sec. 4. * * *
(/) The Secretary shall cooperate and consult with the Secre-
taries of the Interior, Housing and Urban Development, and Agri-
culture, and with the States in developing transportation plans
and programs that include measures to maintain or enhance the
natural beauty of the lands traversed. After the effective date of
this Act, the Secretary shall not approve any program or project
which requires the use of any land from a public park, recreation
area, wildlife and waterfowl refuge, or historic site unless (1)
there is no feasible and prudent alternative to the use of such
land, and (2) such program includes all possible planning to mini-
mize harm to such park, recreational area, wildlife and waterfowl
refuge, or historic site resulting from such use.
(g) The Secretary and the Secretary of Housing and Urban
Development shall consult and exchange information regarding
their respective transportation policies and activities; carry on
joint planning, research and other activities; and coordinate as-
sistance for local transportation projects. They shall jointly study
how Federal policies and programs can assure that urban trans-
portation systems most effectively serve both national transporta-
tion needs and the comprehensively planned development of urban
areas. They shall, within one year after the effective date of this
Act, and annually thereafter, report to the President, for submis-
sion to the Congress, on their studies and other activities under
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STATUTES AND LEGISLATIVE HISTORY 757
this subsection, including any legislative recommendations which
they determine to be desirable. The Secretary and the Secretary of
Housing and Urban Development shall study and report within
one year after the effective date of this Act to the President and
the Congress on the logical and efficient organization and location
of urban mass transportation functions in the Executive Branch.
[p. 5]
Transfers to Department
Sec. 6. (a) There are hereby transferred to and vested in the
Secretary all functions, powers, and duties of the Secretary of
Commerce and other offices and officers of the Department of
Commerce under—
(1) the following laws and provisions of law relating gen-
erally to highways:
(A) Title 23, United States Code, as amended.
(B) The Federal-Aid Highway Act of 1966 (80 Stat.
766).
(C) The Federal-Aid Highway Act of 1962, as
amended (76 Stat. 1145; 23 U.S.C. 307 note).
(D) The Act of July 14, I960, as amended (74 Stat.
526: 23 U.S.C. 313 note).
(E) The Federal-Aid Highway Act of 1954, as
amended (68 Stat. 70).
(F) The Act of September 26, 1961, as amended (75
Stat 670).
(G) The Highway Revenue Act of 1956, as amended
(70 Stat. 387; 23 U.S.C. 120 note).
(H) The Highway Beautification Act of 1965, as
amended (79 Stat. 1028; 23 U.S.C. 131 et seq. notes).
(I) The Alaska Omnibus Act, as amended (73 Stat.
141; 48 U.S.C. 21 note prec.).
(J) The Joint Resolution of August 28, 1965, as
amended (79 Stat. 578; 23 U.S.C. 101 et seq. notes).
(K) Section 502 (c) of the General Bridge Act of 1946,
as amended (60 Stat. 847; 33 U.S.C. 525(c)).
(L) The Act of April 27, 1962, as amended (76 Stat.
59).
(M) Reorganization Plan No. 7 of 1949 (63 Stat.
1070; 5 U.S.C. 133Z-15 note).
(2) the following laws and provisions of law relating gen-
erally to ground transportation:
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758 LEGAL COMPILATION—GENERAL
(A) The Act of September 30, 1965, as amended (79
Stat. 893; 49 U.S.C. 1631 et seq.).
(B) The Urban Mass Transportation Act of 1964, as
amended (78 Stat. 306, 49 U.S.C. 1607).
(3) the following laws and provisions of law relating gen-
erally to aircraft:
(A) The Act of September 7, 1957, as amended (71
Stat. 629; 49 U.S.C. 1324 note).
(B) Section 410 of the Federal Aviation Act of 1958,
as amended (72 Stat. 769; 49 U.S.C. 1380).
(C) Title XIII of the Federal Aviation Act of 1958, as
amended (72 Stat. 800; 49 U.S.C. 1531 etseq.).
(4) the following law relating generally to pilotage: The
Great Lakes Pilotage Act of 1960, as amended (74 Stat. 259;
46 U.S.C. 216 etseq.).
(5) the following law to the extent it authorizes scientific
and professional positions which relate primarily to functions
transferred by this subsection: The Act of August 1, 1947, as
amended (61 Stat. 715; 5 U.S.C. 1161).
[p. 8]
(6) the following laws relating generally to traffic and
highway safety:
(A) The National Traffic and Motor Vehicle Safety
Act of 1966 (80 Stat. 718).
(B) The Highway Safety Act of 1966 (80 Stat. 731).
(b) (1) The Coast Guard is hereby transferred to the Depart-
ment, and there are hereby transferred to and vested in the Secre-
tary all functions, powers, and duties, relating to the Coast Guard,
of the Secretary of the Treasury and of other officers and offices
of the Department of the Treasury.
(2) Notwithstanding the transfer of the Coast Guard to the
Department and the transfer to the Secretary of the functions,
powers, and duties, relating to the Coast Guard, of the Secretary
of the Treasury and of other officers and offices of the Depart-
ment of the Treasury, effected by the provisions of paragraph (1)
of this subsection, the Coast Guard, together with the functions,
powers, and duties relating thereto, shall operate as a part of the
Navy, subject to the orders of the Secretary of the Navy, in time
of war or when the President shall so direct, as provided in sec-
tion 3 of title 14, United States Code, as amended.
(3) Notwithstanding any other provision of this Act, the func-
tions, powers, and duties of the General Counsel of the Depart-
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STATUTES AND LEGISLATIVE HISTORY 759
ment of the Treasury set out in chapter 47 of title 10, United
States Code, as amended (Uniform Code of Military Justice), are
hereby transferred to and vested in the General Counsel of the
Department.
(c) (1) There are hereby transferred to and vested in the Secre-
tary all functions, powers, and duties of the Federal Aviation
Agency, and of the Administrator and other officers and offices
thereof, including the development and construction of a civil su-
personic aircraft: Provided, however, That there are hereby
transferred to the Federal Aviation Administrator, and it shall be
his duty to exercise the functions, powers, and duties of the Secre-
tary pertaining to aviation safety as set forth in sections 306, 307,
308, 309, 312, 313, 314, 1101, 1105, and 1111, and titles VI, VII,
IX, and XII of the Federal Aviation Act of 1958, as amended. In
exercising these enumerated functions, powers, and duties, the
Administrator shall be guided by the declaration of policy in sec-
tion 103 of the Federal Aviation Act of 1958, as amended. Deci-
sions of the Federal Aviation Administrator made pursuant to the
exercise of the functions, powers, and duties enumerated in this
subsection to be exercised by the Administrator shall be adminis-
tratively final, and appeals as authorized by law or this Act shall
be taken directly to the National Transportation Safety Board or
to the courts, as appropriate.
(2) Nothing in this Act shall affect the power of the President
under section 302(e) of the Federal Aviation Act of 1958 (72
Stat. 74-6, 49 U.S.C. 1343(c)) to transfer, to the Department of
Defense in the event of war, any functions transferred by this Act
from the Federal Aviation Agency.
(d) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Civil Aeronautics Board,
and of the Chairman, members, officers, and offices thereof under
titles VI (72 Stat. 775; 5 U.S.C. 1421 et seq.) and VII (72 Stat.
781; 49 U.S.C. 1441 et seq.) of the Federal Aviation Act of 1958,
as amended: Provided, however, That these functions, powers,
and duties are hereby transferred to and shall be exercised by the
National Transportation Safety Board. Decisions of the National
Transportation Safety Board made pursuant to the exercise of the
[p. 9]
functions, powers, and duties enumerated in this subsection shall
be administratively final, and appeals as authorized by law or this
Act shall be taken directly to the courts.
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760 LEGAL COMPILATION—GENERAL
(e) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Interstate Commerce Com-
mission, and of the Chairman, members, officers, and offices
thereof, under—
(1) the following laws relating generally to safety appli-
ances and equipment on railroad engines and cars, and pro-
tection of employees and travelers:
(A) The Act of March 2, 1893, as amended (27 Stat.
531; 45 U.S.C. 1 et seq.).
(B) The Act of March 2, 1903, as amended (32 Stat.
943; 45 U.S.C. 8 et seq.).
(C) The Act of April 14, 1910, as amended (36 Stat.
298; 45 U.S.C. 11 etseq.).
(D) The Act of May 30, 1908, as amended (35 Stat.
476; 45 U.S.C. 17 etseq.).
(E) The Act of February 17, 1911, as amended (36
Stat. 913; 45 U.S.C. 22 et seq.).
(F) The Act of March 4, 1915, as amended (38 Stat.
1192; 45 U.S.C. 30).
(G) Reorganization Plan No. 3 of 1965 (79 Stat.
1320).
(H) Joint Resolution of June 30,1906, as amended (34
Stat. 838; 45 U.S.C. 35).
(I) The Act of May 27, 1908, as amended (35 Stat.
325; 45 U.S.C. 36 etseq.).
(J) The Act of March 4, 1909, as amended (35 Stat.
965; 45 U.S.C. 37).
(K) The Act of May 6, 1910, as amended (36 Stat.
350; 45 U.S.C. 38 et seq.).
(2) the following law relating generally to hours of service
of employees: The Act of March 4, 1907, as amended (34
Stat. 1415; 45 U.S.C. 61 et seq.).
(3) the following law relating generally to medals for hero-
ism: The Act of February 23, 1905, as amended (33 Stat.
743; 49 U.S.C. 1201 et seq.).
(4) the following provisions of law relating generally to
explosives and other dangerous articles: Sections 831-835 of
title 18, United States Code, as amended.
(5) the following laws relating generally to standard time
zones and daylight saving time:
(A) The Act of March 19, 1918, as amended (40
Stat. 450; 15 U.S.C. 261 et seq.).
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STATUTES AND LEGISLATIVE HISTORY 761
(B) The Act of March 4, 1921, as amended (41 Stat.
1446; 15 U.S.C.265).
(C) The Uniform Time Act of 1966, as amended (80
Stat. 107).
(6) the following provisions of the Interstate Commerce
Act, as amended—
(A) relating generally to safety appliances methods
and systems: Section 25 (49 U.S.C. 26).
(B) relating generally to investigation of motor vehi-
cle sizes, weights, and service of employees: Section 226
(49 U.S.C.325).
[p. 10]
(C) relating generally to qualifications and maximum
hours of service of employees and safety of operation and
equipment: Sections 204 (a) (1) and (2), to the extent
that they relate to qualifications and maximum hours of
service of employees and safety of operation and equip-
ment; and sections 204(a) (3), (3a), and (5) (49 U.S.C.
304).
(D) to the extent they relate to private carriers of
property by motor vehicle and carriers of migrant work-
ers by motor vehicle other than contract carriers: Sec-
tions 221(a), 221(c), and 224 (49 U.S.C. 321 et seq.).
(f) (1} Nothing in subsection (e) shall diminish the
functions, powers, and duties of the Interstate Commerce Commis-
sion under sections 1(6), 206, 207, 209, 210a, 212, and 216 of the
Interstate Commerce Act, as amended (49 U.S.C. 1(6), 306 et
seq.), or under any other section of that Act not specifically re-
ferred to in subsection (e).
(2) (A) With respect to any function which is transferred to
the Secretary by subsection (e) and which was vested in the
Interstate Commerce Commission preceding such transfer, the
Secretary shall have the same administrative powers under the
Interstate Commerce Act as the Commission had before such
transfer with respect to such transferred function. After such
transfer, the Commission may exercise its administrative powers
under the Interstate Commerce Act only with respect to those of
its functions not transferred by subsection (e).
(B) for purposes of this paragraph—
(i) the term "function" includes power and duty, and
(ii) the term "administrative powers under the Interstate
Commerce Act" means any functions under the following pro-
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762 LEGAL COMPILATION—GENERAL
visions of the Interstate Commerce Act, as amended: Sections
12, 13(1), 13(2), 14, 16(12), the last sentence of 18(1),
sections 20 (except clauses (3), (4), (11), and (12)
thereof), 204(a) (6) and (7), 204(c), 204(d), 205(d),
205(f), 220 (except subsection (c) and the proviso of subsec-
tion (a) thereof), 222 (except subsections (b)(2) and (b)(3)
thereof), and 417(b) (1) (49 U.S.C. 12 et seq., 304 et seq., and
1017).
(3) (A) The Federal Railroad Administrator shall carry out
the functions, powers, and duties of the Secretary pertaining to
railroad and pipeline safety as set forth in the statutes trans-
ferred to the Secretary by subsection (e) of this section.
(B) The Federal Highway Administrator shall carry out the
functions, powers, and duties of the Secretary pertaining to motor
carrier safety as set forth in the statutes transferred to the Secre-
tary by subsection (e) of this section.
(C) Decisions of the Federal Railroad Administrator and the
Federal Highway Administrator (i) which are made pursuant to
the exercise of the functions, powers, and duties enumerated in
subparagraphs (A) and (B) of this paragraph to be carried out
by the Administrators, and (ii) which involve notice and hearing
required by law, shall be administratively final, and appeals as
authorized by law or this Act shall be taken directly to the Na-
tional Transportation Safety Board or the courts, as appropriate.
[p. 11]
(g) There are hereby transferred to and vested in the Secretary
all functions, powers, and duties of the Secretary of the Army and
other officers and offices of the Department of the Army under—
(1) the following law and provisions of law relating gener-
ally to water vessel anchorages:
(A) Section 7 of the Act of March 4, 1915, as amended
(38 Stat. 1053;33 U.S.C. 471).
(B) Article 11 of section 1 of the Act of June 7, 1897,
as amended (30 Stat. 98; 33 U.S.C. 180).
(C) Rule 9 of section 1 of the Act of February 8,1895,
as amended (28 Stat. 647; 33 U.S.C. 258).
(D) Rule numbered 13 of section 4233 of the Revised
Statutes, as amended (33 U.S.C. 322).
(2) the following provision of law relating generally to
drawbridge operating regulations: Section 5 of the Act of
August 18,1894, as amended (29 Stat. 362; 33 U.S.C. 499).
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STATUTES AND LEGISLATIVE HISTORY 763
(3) the following law relating generally to obstructive
bridges: The Act of June 21,1940, as amended (54 Stat. 497;
33 U.S.C.511 etseq.).
(4) the following laws and provisions of law relating gen-
erally to the reasonableness of tolls:
(A) Section 4 of the Act of March 23, 1906, as
amended (34 Stat. 85; 33 U.S.C. 494).
(B) Section 503 of the General Bridge Act of 1946, as
amended (60 Stat. 847; 33 U.S.C. 526).
(C) Section 17 of the Act of June 10, 1930, as
amended (46 Stat. 552; 33 U.S.C. 498a).
(D) The Act of June 27, 1930, as amended (46 Stat.
821; 33 U.S.C. 498b).
(E) The Act of August 21, 1935, as amended (49 Stat.
670; 33 U.S.C. 503 et seq.).
(5) the following law relating to prevention of pollution of
the sea by oil: The Oil Pollution Act, 1961, as amended (75
Stat. 402; 38 U.S.C. 1001 et seq.).
(6) the following laws and provision of law to the extent
that they relate generally to the location and clearances of
bridges and causeways in the navigable waters of the United
States:
(A) Section 9 of the Act of March 3,1899, as amended
(30 Stat. 1151; 33 U.S.C. 401).
(B)The Act of March 23, 1906, as amended (34 Stat.
84; 33 U.S.C. 491 etseq.).
(C) The General Bridge Act of 1946; as amended (60
Stat. 847; 33 U.S.C. 525 et seq.).
(h) The provisions of subchapter II of chapter 5 and of chapter
7 of title 5, United States Code, shall be applicable to proceedings
by the Department and any of the administrations or boards
within the Department established by this Act except that not-
withstanding this or any other provision of this Act, the transfer
of functions, powers, and duties to the Secretary or any otner
officer in the Department shall not include functions vested by
subchapter II of chapter 5 of title 5, United States Code, in hear-
ing examiners employed by any department, agency, or component
thereof whose functions are transferred under the provisions of
this Act.
[p. 12]
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764 LEGAL COMPILATION—GENERAL
(i) The administration of the Alaska Railroad, established pur-
suant to the Act of March 12, 1914, as amended (38 Stat. 308),
and all of the functions authorized to be carried out by the Secre-
tary of the Interior pursuant to Executive Order Numbered
11107, April 25, 1963 (28 F.R. 4225), relative to the operation of
said Railroad, are hereby transferred to and vested in the Secre-
tary of Transportation who shall exercise the same authority with
respect thereto as is now exercised by the Secretary of the Inte-
rior pursuant to said Executive order.
Transportation Investment Standards
Sec. 7. (a) The Secretary, subject to the provisions of section 4
of this Act, shall develop and from time to time in the light of
experience revise standards and criteria consistent with national
transportation policies, for the formulation and economic evalua-
tion of all proposals for the investment of Federal funds in trans-
portation facilities or equipment, except such proposals as are
concerned with (1) the acquisition of transportation facilities or
equipment by Federal agencies in providing transportation serv-
ices for their own use; (2) an interoceanic canal located outside
the contiguous United States; (3) defense features included at the
direction of the Department of Defense in the design and con-
struction of civil air, sea, and land transportation; (4) programs
of foreign assistance; (5) water resource projects; or (6) grant-
in-aid programs authorized by law. The standards and criteria
developed or revised pursuant to this subsection shall be promul-
gated by the Secretary upon their approval by the Congress.
The standards and criteria for economic evaluation of water
resource projects shall be developed by the Water Resources Coun-
cil established by Public Law 89-80. For the purpose of such
standards and criteria, the primary direct navigation benefits of a
water resource project are defined as the product of the savings to
shippers using the waterway and the estimated traffic that would
use the waterway; where the savings to shippers shall be con-
strued to mean the difference between (a) the freight rates or
charges prevailing at the time of the study for the movement by
the alternative means and (b) those which would be charged on
the proposed waterway; and where the estimate of traffic that
would use the waterway will be based on such freight rates, taking
into account projections of the economic growth of the area.
The Water Resources Council established under section 101 of
Public Law 89-80 is hereby expanded to include the Secretary of
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STATUTES AND LEGISLATIVE HISTORY 765
Transportation on matters 'pertaining to navigation features of
water resource projects.
(b) Every survey, plan, or report formulated by a Federal
agency which includes a proposal as to which the Secretary has
promulgated standards and criteria pursuant to subsection (a)
shall be (1) prepared in accord with such standards and criteria
and upon the basis of information furnished by the Secretary with
respect to projected growth of transportation needs and traffic in
the affected area, the relative efficiency of various modes of trans-
port, the available transportation services in the area, and the
general effect of the proposed investment on existing modes, and
on the regional and national economy; (2) coordinated by the
proposing agency with the Secretary and, as appropriate, with
other Federal agencies, States, and local units of government for
inclusion of his and their views and comments; and (3) transmit-
ted thereafter by the proposing agency to the President for dispo-
sition in accord with law and procedures established by him.
[p. 13]
STATEMENT OF THE MANAGERS ON THE PART OF
THE HOUSE
The managers on the part of the House at the conference on the
disagreeing votes of the two Houses on the amendment of the
Senate to the bill (H.R. 15963) to establish a Department of
Transportation, and for other purposes, submit the following
statement in explanation of the effect of the action agreed upon by
the conferees and recommended in the accompanying conference
report:
The Senate amendment strikes out all of the House bill after the
enacting clause and inserts a substitute. The House recedes from
its disagreement to the amendment of the Senate, with an amend-
ment which is a substitute for both the House bill and the Senate
amendment. The differences between the House bill and the substi-
tute agreed to in conference are noted below except for clerical
corrections, incidental changes made necessary by reason of agree-
ments reached by the conferees, and minor drafting and clarifying
changes.
Declaration of purpose
Section 2 of the Senate amendment contained a paragraph not
included in the House bill which declared it to be the national
policy that in carrying out the provisions of the act, special effort
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766 LEGAL COMPILATION—GENERAL
should be made to preserve the natural beauty of the countryside
and public park and recreation lands, wildlife and waterfowl re-
fuges, and historic sites.
The conference substitute conforms to the Senate amendment
with a minor drafting change.
[P. 23]
In section 4(f) the Senate amendment contained language re-
quiring the Secretary of Transportation to cooperate and consult
with the Secretaries of Interior, Housing and Urban Development,
and Agriculture and with the States in developing transportation
plans and programs that carry out the policy of preserving the
natural beauty of the countryside and public park and recreation
land, wildlife and waterfowl refuges, and historic sites. The Secre-
tary was prohibited from approving programs or projects requir-
ing the use of any such land unless there is no feasible alternative
and all possible planning to minimize harm is taken.
The conference substitute amendment adopts the Senate amend-
ment language except for adding the words "and prudent" after
the word "feasible".
In section 4(g) the Senate amendment required the Secretary
and the Secretary of Housing and Urban Development to consult
and exchange information regarding their transportation policies
and activities and to carry on the joint planning, research, and
other activities and coordinate assistance for local projects. The
amendment required the two Secretaries to study Federal policies
and programs, to see how they can assure that urban transporta-
tion systems will effectively serve both local and national needs
and to report within 1 year and annually thereafter to the Presi-
dent for submission to Congress on their studies and other activi-
ties, including legislative recommendations.
The conference substitute amendment conforms to the Senate
amendment and adds thereto the clause previously deleted by the
Senate which would require the two Secretaries to report within 1
year on the logical and efficient organization and location of urban
mass transportation functions in the executive branch.
[P. 25]
Transfers to the Department
In section 6 (a) (5) the Senate amendment contained language
not found in the House bill which transfers to the new Secretary,
merchant marine and maritime functions and provides for their
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STATUTES AND LEGISLATIVE HISTORY 767
exercise by a Federal Maritime Administrator and a Maritime
Board.
The conference substitute amendment deletes all reference to
maritime functions, a Federal Maritime Administrator and the
Maritime Board.
In section 6(c) which transfers to the Secretary all functions,
powers and duties of the Federal Aviation Agency and of the
Administrator and other officers thereof, the Senate amendment
added the language "including the development and construction
of a civil supersonic aircraft." The Senate amendment also further
transferred to the Federal Aviation Administrator the duties of
the Secretary under section 6(c) pertaining to aviation safety as
set forth in certain sections of the Federal Aviation Act of 1958.
The Senate amendment made decisions of the Federal Aviation
Administrator in exercising these functions administratively final
with appeals as authorized by law and this act to be taken directly
to the National Transportation Safety Board or to the courts as
appropriate. The Senate amendment deleted a provision specifi-
cally reserving the power of the President to transfer any of the
aviation functions to the Department of Defense in time of war.
The substitute conference amendment restores the wartime
transfer power of the President as provided in the House bill and
otherwise conforms to the Senate amendment.
In section 6(d) the Senate amendment retransfers to the Na-
tional Transportation Safety Board all of the Civil Aeronautics
Board safety functions which are transferred by the act to the
Secretary under section 6(d) and provides that decisions of the
National Transportation Board made pursuant to the exercise of
these functions, powers, and duties shall be administratively final
and appeals taken directly to the courts.
The conference substitute amendment conforms to the Senate
amendment.
In section 6(f) the Senate amendment provided that the Fed-
eral Railroad Administrator and the Federal Highway Adminis-
trator shall carry out the functions, powers, and duties of the
Secretary pertaining to railroad and pipeline safety and to motor
carrier safety which were transferred from the Interstate Com-
merce Commission to the Secretary. The decisions of the two Ad-
ministrators pursuant to the exercise of these functions were
made administratively final, with appeals to be taken to the Na-
tional Transportation Safety Board or the courts.
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768 LEGAL COMPILATION—GENERAL
The substitute conference amendment specifically limits the ad-
ministrative finality of the two Administrators' decisions to pro-
ceedings which involve notice and hearings required by law, and
otherwise conforms to the Senate amendment.
In section 6 (h) the Senate amendment provides that the Admin-
istrative Procedure Act shall be applicable to proceedings by the
Departments and its subordinate units.
The substitute conference amendment conforms to the Senate
amendment. Complementary House language was restored in sec-
tion 4(c).
[p. 26]
In section 6(i) the Senate amendment transferred the adminis-
tration of the Alaska Railroad to the new Department. The House
report had contemplated that this would be accomplished by Exec-
utive order.
The substitute conference amendment conforms to the Senate
amendment.
Transportation investment standards
The Senate amendment contains language in section 7 which
was not in the House bill. This requires the Secretary to develop
standards and criteria for the formulation and economic evalua-
tion and proposals for the investment of Federal funds in trans-
portation facilities or equipment. The Senate amendment contains
six major exceptions to this authority among which were water
resources projects and grant-in-aid programs authorized by law.
The Senate amendment requires approval by the Congress before
the Secretary may promulgate standards and criteria. It makes
the Secretary a member of the Water Resources Council on mat-
ters pertaining to navigation features of water resource projects
and provides that all surveys, plans, and reports involving pro-
jects formulated by the various Federal agencies must conform to
the standards and criteria, must utilize certain types of informa-
tion relating to transportation supplied by the Secretary and must
be coordinated by the Secretary. The Senate amendment also con-
tained a formula to govern the determination of the navigation
benefits of water resources projects.
The conference substitute amendment conforms to the Senate
amendment.
[p. 27]
-------
STATUTES AND LEGISLATIVE HISTORY
769
1.5a(5) CONGRESSIONAL RECORD, VOL. 112 (1966)
1.5a(5)(a) Aug. 30: Debated, amended and passed House,
pp. 21236-21237; 21275
AMENDMENT OFFERED BY ME. HARSHA
Mr. HARSHA. Mr. Chairman, I
offer an amendment. The Clerk read
as follows:
Amendment offered by Mr. HARSHA: On
page 23, following line 13, insert the follow-
ing new subsection and reletter subsection
"(h)" as subsection "(i)";
"(h) Notwithstanding the transfer of the
functions, powers, and duties to the Secre-
tary under subsection (g), the Secretary
shall not exercise any function, power, or
duty under subsections (g)(2), (3), (4) (A),
and (6), relating to the operation of draw-
bridges, the obstruction of bridges, and the
location and clearances of bridges and cause-
ways, until he obtains the concurrence of
the Secretary of the Army."
The CHAIRMAN. The gentleman
from Ohio is recognized for 5 minutes.
Mr. HARSHA. Mr. Chairman, un-
der existing law, the Secretary of the
Army, acting through the Chief of
Engineers, is responsible for investi-
gations and improvements of rivers,
harbors, and other waterways and
for prevention of obstructions to the
navigable capacity of such waters—•
section 540, title 33, United States
Code. Also, existing law prohibits the
building of any wharf, pier, dolphin,
boom, weir, breakwater, bulkhead,
jetty, or other structures in any navi-
gable water of the United States, or
to excavate or fill, or in any manner
alter a course, location, condition, or
capacity, of any such water, except
on plans recommended by the Chief of
Engineers and authorized by the Sec-
retary of the Army—section 403, title
23, United States Code. All of these
functions, powers, and duties will re-
main with the Secretary of the Army
after enactment of H.R. 15963.
Under the provisions of this bill,
however, certain functions of the Sec-
retary of the Army relating to draw-
bridge operating regulations, obstruc-
[p. 21236]
tive bridges, and the location and
clearance of bridges and causeways
are transferred to the Secretary of
Transportation. In spite of the trans-
fer of this authority to the Secretary
of Transportation, we continue to re-
quire the Secretary of the Army to
exercise the authority under section
502 of title 33, United States Code,
to prosecute criminally all who impede
the navigability of waterways through
bridge obstructions.
This borders on the ridiculous un-
less the Secretary of the Army has
some authority with respect to bridge
clearances in the first instance. My
amendment provides that the Secre-
tary of Transportation shall not exer-
cise any functions without first obtain-
ing the concurrence of the Secretary
of the Army.
Since the Secretary of the Army is
the Federal official primarily respon-
sible for preserving and improving
the navigability of the waters of the
United States, it is logical that his
concurrence should be obtained before
action is taken by the Secretary of
Transportation relative to the oper-
ation of drawbridges, the location and
clearance of new bridges and cause-
ways to be constructed, and the elimi-
nation of obstructions created by ex-
isting bridges.
If this is not done, action taken by
the Secretary of Transportation in this
limited area may be inconsistent with
action taken or being contemplated
by the Secretary of the Army with
respect to the planning and construc-
tion of projects for navigation im-
-------
770
LEGAL COMPILATION—GENERAL
provement of the waterway or the
issuance of permits for the construc-
tion of other facilities on the water-
way.
My amendment would not deny or
take away from the Secretary of
Transportation those functions that
the bill would transfer to him, but in
the interest of the free flow of com-
merce on our navigable waters it
would require him to coordinate with
the Secretary of the Army and, in
turn, to benefit from the expertise,
specialized knowledge, and experience
of the Corps of Engineers in this field.
Mr. Chairman, I urge adoption of
my amendment.
Mr. HOLIFIELD. Mr. Chairman, I
rise in opposition to the amendment.
On April 7, Lt. Gen. William F. Cas-
sidy, Chief of Engineers, Corps of En-
gineers, of the U.S. Army, appeared
before the committee. I read from his
testimony, carried on page 102—part
1—of the hearings as follows:
The regulatory functions that wouid be
transferred to the new Department under sec-
tion 6(f) include the authority to regulate
the location of vessels at anchor, to prescribe
drawbridge operating regulations, to require
alteration of existing bridges considered to
be unreasonably obstructive to navigation, to
review and determine reasonableness of tolls
charged for crossing bridges, to administer
the act for the prevention of the pollution
of the sea by oil, and to control the location
and clearances of bridges over navigable
waters. These are considered to be proper
functions of the contemplated Department
of Transportation and their transfer would
be in accord with accepted tenets of good
organization and administrative management.
Mr. Chairman, I recognize that the
intent of the gentleman's amendment
is good, but in my opinion this would
create confusion from an administra-
tive standpoint. We have had the head
of the Army Corps of Engineers, the
man who has charge of these func-
tions, testify before the committee
that this is a proper function of the
new Secretary of Transportation.
Therefore, I ask that the amend-
ment be voted down.
Mr. HARSHA. Mr. Chairman, will
;he gentleman yield?
Mr. HOLIFIELD. I yield to the
•entleman from Ohio.
Mr. HARSHA. Mr. Chairman, I am
not trying to take these functions we
are transferring to the Secretary of
Transportation away from him. I go
along with the statement of the gen-
tleman that these are proper func-
tions for the Secretary of Transporta-
tion to have within his jurisdiction.
But, because of the problems involved
in prosecuting the violation of these,
and because the responsibility for the
navigability of the waters of the coun-
try rests on the Corps of Engineers,
it would seem to me it would be prop-
er that before any changes in these
regulations are made by the Secre-
tary of Transportation, he should cor-
relate these with the same body that
is responsible for the prosecution and
for insuring the navigability of these
streams. That is the intent of my
amendment.
Mr. HOLIFIELD. Mr. Chairman, I
understand the intent of the gentle-
man's amendment, but it brings in
another administrative body. It would
cause delay in putting through pro-
grams.
There is no doubt in my mind that
there will be informal conferences
with the people who are involved. I
cannot conceive of a responsible Sec-
retary of a Cabinet-level department
going in and upsetting the procedures
of the Army. Therefore, I believe that
the amendment is unnecessary and I
believe that good administrative man-
agement and the tenets of good orga-
nization require us to leave this in the
hands of the Secretary of this Cab-
inet-level department. I therefore ask
that it be voted down.
The CHAIRMAN. The time of the
gentleman has expired.
The question is on the amendment
-------
STATUTES AND LEGISLATIVE HISTORY
771
offered by the gentleman from Ohio
[Mr. HAESHA].
The question was taken, and on a
division (demanded by Mr. HAKSHA)
there were—ayes 16, nays 35.
So the amendment was rejected.
[p. 21237]
The SPEAKER. The question is on
the passage of the bill.
Mr. HOLIFIELD. Mr. Speaker, on
that I demand the yeas and nays.
The question was taken; and there
were — yeas 336, nays 42, not voting
54 ***.
So the bill was passed.
[p. 21275]
1.5a(5)(b) Sept. 29: Amended and passed Senate, pp. 24374-24375,
24402-24403
Mr. McCLELLAN. Mr. President,
when the Government Operations
Committee opened hearings on S. 3010
I stated that we would study this
bill—that we would examine it care-
fully—and try to do a constructive
job of revising and improving it. I
fully realized that to do this would
take time, perhaps a long time. The
committee had this measure under ac-
tive consideration for the better part
of 6 months. We examined and consid-
ered this bill in detail, and the fact
that the committee has largely ac-
complished what it undertook is at-
tested to by the unanimous vote cast
by the committee in ordering the bill
favorably reported.
[p. 24374]
TRANSPORTATION INVESTMENT
STANDARDS
As introduced, section 7 (a) of S.
3010 placed upon the Secretary of
Transportation the responsibility of
developing and revising standards and
criteria consistent with national
transportation policies, for the formu-
lation and economic evaluation of all
proposals for the investment of Fed-
eral funds in transportation facilities
or equipment. It then exempted four
specific types of proposals for Federal
investment from the standards and
criteria to be established by the Sec-
retary. The committee amended this
to add water resource projects as a
fifth type of proposal for Federal in-
vestment to the other four that are
excluded from the criteria to be es-
tablished by the Secretary of Trans-
portation.
This is necessary since navigation
is a major function of any total con-
cept of water resource development
and, therefore, other phases of water
resource development should not be
influenced by standards and criteria
established for application to problems
related solely to transportation.
The committee amendment also pro-
vides that standards and criteria de-
veloped or revised pursuant to this
subsection shall not be promulgated
by the Secretary until they are ap-
proved by the Congress instead of the
President, as originally proposed.
This is intended to retain within
the Congress its constitutional au-
thority to regulate commerce among
the several States. A blanket delega-
tion of such widespread authority to
the executive branch of the Govern-
ment is considered unwise. The sec-
tion, as revised, would place on the
Secretary of Transportation the re-
sponsibility of developing the stand-
ards and criteria but would retain in
the Congress the final responsibility
for their approval—thereby maintain-
ing the checks and balances contem-
-------
772
LEGAL COMPILATION—GENERAL
plated by the framers of the Constitu-
tion.
The amendment would continue the
authority of the Water Resources
Council to establish standards and cri-
teria for the evaluation of water re-
sources projects where it was placed
by the Congress just last year when
the Council was established by section
101 of Public Law 89-80.
A definition of primary navigation
benefits is also contained in the amend-
ment. This is necessary to insure that
future projects will be evaluated on
the same basis that has resulted in the
development of our truly great system
of inland navigation that has served
this Nation so well in peace and war.
In November of 1964, the Corps of
Engineers, under policy guidance of
the Bureau of the Budget, issued new
criteria for the evaluation of naviga-
tion projects. Not a single proposed
waterway has met the test of these
new criteria. The Bureau of the Budg-
et finally recognized the difficulty of
applying the criteria set forth in the
directive of November 1964, and has
just recently stated that they will be
reversed. But the much needed expan-
sion of our network of inland water-
ways is far too important to the na-
tional welfare to be subjected to the
conceptual manipulations of the Bu-
reau of the Budget. This is a matter
within the proper purview of Con-
gress, and my amendment to section 7
returns this prerogative to the legis-
lative branch.
In this connection, it is important
to note that the corps' experience with
the development of commerce on ma-
jor existing waterways has shown
that the former method of evaluating
navigation benefits which my amend-
ment reinstates has resulted in ultra-
conservative estimates of traffic
growth.
Finally, section 7, as amended, ex-
pands the membership on the Water
Resources Council to include the new
Secretary of Transportation on mat-
ters pertaining to navigation features
of water resource projects. The expan-
sion of the Water Resources Council
to include the Secretary of Transpor-
tation on these matters is consistent
with the intent of section 101 of Pub-
lic Law 89-80, which established the
Council.
[p. 24375]
Mr. JACKSON. Mr. President, I
move that the Senate proceed to the
consideration of H.R. 15963, Calendar
No. 1628.
The PRESIDING OFFICER (Mr.
MONTOYA in the Chair). The bill will
be stated by title.
The LEGISLATIVE CLERK. A bill (H.R.
15963) to establish a Department of
Transportation, and for other pur-
poses.
The PRESIDING OFFICER. The
question is on agreeing to the motion
of the Senator from Washington.
The motion was agreed to; and the
Senate proceeded to consider the bill.
Mr. JACKSON. Mr. President, I
move to strike out all after the en-
acting clause of H.R. 15963 and to in-
sert in lieu thereof the text of S. 3010,
as amended.
The PRESIDING OFFICER. The
question is on agreeing to the motion
of the Senator from Washington.
The motion was agreed to.
The PRESIDING OFFICER. The
question is on the engrossment of the
amendment and third reading of the
bill.
[p. 24402]
The amendment was ordered to be
engrossed, and the bill to be read a
third time.
Mr. JACKSON. Mr. President, I
ask for the yeas and nays on passage.
The yeas and nays were ordered.
*****
The result was announced—yeas 64,
nays 2.
* * * * *
So the bill (H.R. 15963) was passed.
[p. 24403]
-------
STATUTES AND LEGISLATIVE HISTORY
773
1.5a(5)(c) Oct. 13: House agrees to conference report, pp. 26651-
26652
Mr. KLUCZYNSKI. Mr. Speaker,
I am pleased to see section 4(f) ap-
pear in this bill. Its inclusion is cer-
tainly consistent with the desire to
protect America's natural beauty—
as expressed by the Congress and the
administration, and as demanded by
the American people. Further, it is
consistent with a similar provision
embodied in the Federal-Aid Highway
Act of 1966 with the additional bene-
fit of requiring that the same consid-
eration be given in developing all
forms of transportation plans and
programs.
I thoroughly support the intent of
this bill, but I would like to sound a
word of caution in interpreting sec-
tion 4(f). There is no question in my
mind that the protection of our parks,
open spaces, historic sites, fish and
game habitats, and the other natural
resources with which our Nation is
so richly endowed, is of the utmost
importance and urgency, but not to
the total exclusion of other consider-
ations. To do so would result in as
many inequities as justifying trans-
portation plans merely on the basis of
economy or efficiency. Other consid-
erations would include the integrity
of neighborhoods, the displacement of
people and businesses, and the protec-
tion of schools, and churches and the
myriad of other social and human
values we find in our communities.
Attempting to define "feasible al-
ternative" in light of all of these con-
siderations is virtually impossible and
may result in hampering and other-
wise unnecessarily delaying transpor-
tation progress. The problem was re-
solved in the 1966 Highway Act by
rephrasing the requirement to read,
"unless such program includes all pos-
sible planning, including considera-
tions of alternatives." I am glad to
see the words "and prudent" added to
this section by the conference commit-
tee. With this inclusion, and with
"prudent" as the operable word, this
section now becomes workable and ef-
fective and I fully support and in-
tend to vote for the bill as written.
Mr. ROSTENKOWSKI. Mr. Chair-
man, will the gentleman yield?
Mr. HOLIFIELD. I yield to the
gentleman.
Mr. ROSTENKOWSKI. Mr. Speak-
er, section 4(f) of this bill would ex-
tend to all forms of transportation
the safeguards incorporated in the re-
cently enacted Federal-Aid Highway
Act of 1966 requiring the Secretary
to use maximum effort to preserve
public parklands and historic sites.
This is a good amendment. I sup-
ported this principle in the Highway
Act and I support it in the bill now
before us. However, I would like to
recall for my colleagues the concern
that was voiced when the Highway
Act was pending. Fear was expressed
that the amendment might be misin-
terpreted to mean the preservation
of natural and manmade resources
would be the overriding consideration
in highway construction. It was made
clear at the time that as desirable as
parkland preservation might be, other
important factors must be considered.
We are now confronted with the
identical situation. However, I will
support section 4(f) on the basis that
it is the clear intent of the Congress
to establish only guidelines for the
approval by the Secretary of any
transportation program or project re-
quiring the use of land from a public
park, recreation area, wildlife or
waterfowl refuge, or historic site.
This approval is made contingent
on two factors: That there is no feas-
ible and prudent alternative to the
use of such land, and that such pro-
-------
774
LEGAL COMPILATION—GENERAL
gram includes all possible planning
to minimize harm to those areas.
I heartily endorse the guidelines. I
also want the RECORD to show, how-
ever, that it is not the intent of the
Congress to tie the Secretary's hands.
As much as I want to see the use of
those areas avoided if possible, and
our natural and manmade resources
preserved. I can easily foresee cir-
cumstances when it may be vital to
use such land.
For instance, if it became necessary
to choose between preserving a wild-
life refuge or saving human lives by
a highway improvement, I do not
think any of us would have any doubt
as to which choice should be made.
[p. 26651]
Or, if there were a choice between us-
ing public parkland or displacing hun-
dreds of families, with the attendant
burden imposed on them, I would want
the Secretary to weigh his decision
carefully, and not feel he was forced
by the provision of the bill to disrupt
the lives of hundreds of human beings.
If I felt that this measure placed
less value on the preservation of hu-
man life than it did on the preserva-
tion of wildlife refuges, I could not in
good conscience support it. We should
memorialize the Secretary to give full
consideration to the preservation of
public lands, but not at the expense
of human lives and human welfare.
I support enthusiastically the pro-
vision that if he determines public
land must be used, all possible plan-
ning be done to minimize harm to the
land. I am confident that the Secre-
tary would take this precaution, even
if it were not incorporated in the bill.
*****
Mr. HOLIPIELD. Mr. Speaker, I
move the previous question or- the
conference report.
The previous question was ordered.
The conference report was agreed
to.
[p. 26652]
1.5a(5)(d) Oct. 13: Senate agrees to conference report,
pp. 26564, 26568.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. JACKSON. Mr. President, the
conferees were able to keep the Sen-
ate version intact on the main points
of disagreement with one exception—
the transfer of maritime functions.
The House agreed to accept the
basic organization and structural pro-
visions of the bill in the Senate ver-
sion, including the distribution and
assignment of functions, powers, and
duties. This included acceptance of
railroad, highway, and aviation ad-
ministrators with statutorily assigned
duties. Decision of these administra-
tors will in certain matters be admin-
istratively final, subject only to appeal
to the courts or the National Trans-
portation Safety Board, as appropri-
ate.
The House agreed to accept the Sen-
ate amendments strengthening the Na-
tional Transportation Safety Board.
This included acceptance of the Sen-
ate provisions assigning the Civil
Aeronautics Board's aircraft accident
investigation functions to the Safety
Board, and authorizing the Safety
Board to conduct its own investiga-
tions into rail, highway, and pipeline
accidents.
The retention of these Senate
amendments relating to the organiza-
tional structure of the Department,
and the strengthened role of the Na-
tional Transportation Safety Board,
insure that safety matters will be
-------
STATUTES AND LEGISLATIVE HISTORY
775
placed in the hands of trained experts,
leaving the Secretary free to devote
his efforts to the numerous other
duties and responsibilities vested in
him.
The Senate was also able to per-
suade the House to agree to the reten-
tion of section 7, relating to invest-
ment standards and criteria, including
language regarding water resource
projects. As Members know, the House
had deleted this entire section from
its version of the bill.
In this connection, the Corps of En-
gineers expressed some concern to the
committee with regard to language
in the Senate report amplifying the
definition of primary direct benefits
and the use of prevailing rates. The
corps felt that the language in the
bill itself was perfectly acceptable but
that the report language was too re-
strictive. By way of clarification, I
would like to say on behalf of the
Committee on Government Operations
that it was our intent that—and I
state this for the legislative history:
Where available in the area of the
proposed waterway, prevailing pub-
lished rates being applied for move-
ment of the type and approximate
volume of each commodity considered
as potential traffic for the proposed
waterway are to be used in the eco-
nomic analysis.
Where prevailing rates are not
available or are not being applied in
the area of the proposed waterway
for movement of the type and ap-
proximate volume of the potential
traffic, constructed rates will be used
in the economic analysis. Where such
constructed rates are necessary, they
are to be developed using rate struc-
tures on the alternative modes of
transportation that have not been de-
pressed due to their direct competition
with an existing waterway.
Thus, Mr. President, it is the com-
mittee's intent that the resulting cal-
culation of navigation benefits will be
essentially those historically employed
by the Corps of Engineers prior to
the development of new procedures
adopted in October 1960, which cul-
minated in the directive of November
1964, and which was recently re-
scinded, as reported in letters from
the Director of the Bureau of the
Budget to the Chairman of the Pub-
lic Works Committees dated August
24, 1966.
The House accepted the Senate lan-
guage declaring it to be the national
policy that special effort should be
made to preserve the natural beauty
of the countryside and public park
and recreation lands, wildlife and
waterfowl refuges, and historic sites.
The Secretary is directed not to ap-
prove any program or project requir-
ing the use of such lands unless there
is no feasible and prudent alternative
to its use, and such program includes
all possible planning to minimize harm
to such areas.
[p. 26564]
Mr. BREWSTEE. Mr. President,
I am delighted to support the confer-
ence report on the Department of
Transportation bill. This report would
take the Maritime Administration out
of the Department of Transportation
entirely.
I would hope that this approach
will pave the way for an independent
Maritime Administration, and, ulti-
mately, a rebirth of the American
merchant marine. Certainly I intend
to push for legislation to achieve this
end.
The conferees have reached a very
acceptable position. I would particu-
larly like to commend Senator JACK-
SON, who has worked very hard on a
most complex and controversial piece
of legislation. The end result is a
very fine bill which I am proud to
support.
Mr. President, I move the adoption
of the conference report.
-------
776
LEGAL COMPILATION—GENERAL
The PRESIDING OFFICER. The
question is on agreeing to the confer-
ence report.
The conference report was agreed
to.
[p. 26568]
1.5b FEDERAL HIGHWAY ACT OF 1968
August 23,1968, P.L. 90-495, §18(b), 82 Stat. 824
PRESERVATION OF PARKLANDS
SEC 18. (a) Section 138 of title 23, United States Code, is
amended to read as follows:
"§138. Preservation of parklands
(b) Section 4(f) of the Department of Transportation Act (80
Stat. 931; Public Law 89-670) is amended to read as follows:
"(f) It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the coun-
tryside and public park and recreation lands, wildlife and water-
fowl refuges, and historic sites. The Secretary of Transportation
shall cooperate and consult with the Secretaries of the Interior,
Housing and Urban Development, and Agriculture, and with the
States in developing transportation plans and programs that in-
clude measures to maintain or enhance the natural beauty of the
lands traversed. After the effective date of the Federal-Aid High-
way Act of 1968, the Secretary shall not approve any program or
project which requires the use of any publicly owned land from a
public park, recreation area, or wildlife and waterfowl refuge of
national, State, or local significance as determined by the Federal,
State, or local officials having jurisdiction thereof, or any land
from an historic site of national, State, or local significance as so
determined by such officials unless (1) there is no feasible and
prudent alternative to the use of such land, and (2) such program
includes all possible planning to minimize harm to such park,
recreational area, wildlife and waterfowl refuge, or historic site
resulting from such use."
[p. 824]
-------
STATUTES AND LEGISLATIVE HISTORY 777
1.5b(l) SENATE COMMITTEE ON PUBLIC WORKS
S. REP. No. 1340, 90th Cong., 2d Sess. (1968)
FEDERAL-AID HIGHWAY ACT
OF 1968
JUNE 28, 1968.—Ordered to be printed
Committee on Public Works, submitted the
following
REPORT
[To accompany S. 3418]
GENERAL OBSERVATIONS
The committee believes that two matters not otherwise dis-
cussed in this report or provided for in S. 3418, as reported, are
worthy of consideration.
PARK LANDS
Under the provisions of section (4) (f) of the Department of
Transportation Act, the Secretary is responsible for "developing
transportation plans and programs that include measures to main-
tain or enhance the natural beauty of the lands traversed." In
carrying- out this policy, the section states that "the Secretary
shall not approve any program or project which requires the use
of any land from a public park, recreation area, wildlife and
waterfowl refuge, or historic site unless (1) there is no feasible
and prudent alternative to the use of such land, and (2) such
program includes all possible planning to minimize harm to such
park, recreational area, wildlife and waterfowl refuge, or historic
site resulting from such use."
This language is similar to that contained in section 138 of title
23 which provides that after July 1, 1968, all possible planning
must be used to minimize any harm to such park or site resulting
"from use of park lands and historic sites for highway projects."
The committee is firmly committed to the protection of vital
park lands, parks, historic sites, and the like. We would emphasize
that everything possible should be done to insure their being kept
free of damage or destruction by reason of highway construction.
The committee would, however, put equal emphasis on the statu-
-------
778 LEGAL COMPILATION—GENERAL
tory language which provides that in the event no feasible and
prudent alternative exists, that efforts be made to minimize dam-
age. To that end, the amendment contained in section 114 of S.
[p. 18]
3418, as reported, which would expand the definition of "construc-
tion costs," should be helpful.
The committee would further emphasize that while the areas
sought to be protected by section (4) (f) of the Department of
Transportation Act and section 138 of title 23 are important,
there are other high priority items which must also be weighed in
the balance. The committee is extremely concerned that the high-
way program be carried out in such a manner as to reduce in all
instances the harsh impact on people which results from the dislo-
cation and displacement by reason of highway construction.
Therefore, the use of park lands properly protected and with dam-
age minimized by the most sophisticated construction techniques is
to be preferred to the movement of large numbers of people.
[P. 19]
1.5b(2) HOUSE COMMITTEE ON PUBLIC WORKS
H.R. REP. No. 1584, 90th Cong., 2d Sess. (1968)
FEDERAL-AID HIGHWAY ACT OF 1968
JUNE 25, 1968.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. FALLON, from the Committee on Public Works, submitted the
following
REPORT
together with
MINORITY VIEWS
[To accompany H.R. 17134]
The Committee on Public Works, to whom was referred the bill
(H.R. 17134) to authorize appropriations for the fiscal years 1970
and 1971 for the construction of certain highways in accordance
-------
STATUTES AND LEGISLATIVE HISTORY 779
with title 23 of the United States Code, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert the matter
which appears in the reported bill in italic type.
[p. 1]
PRESERVATION OF PAKK LANDS
The difference in language between section 138 of title 23 and
the comparable provisions of section 4(f) of the Department of
Transportation Act is slight. Both are concerned with criteria for
highway planning in relation to the enumerated land uses, how-
ever, and it is the committee's opinion that the language of section
138, title 23, as basic highway law, should be controlling. Section
17 of the reported bill, therefore, amends section 4(f) to conform
the language.
Neither section 138 nor section 4(f) stands alone as the beacon
lighting the way to wisdom in the administration of our resources.
Both are intended to broaden, not narrow, the perspective in deci-
sionmaking. Parklands and historic sites, as well as the other
kinds of areas listed in these sections, have very real value; if that
were not so, neither section of law would exist. No rational person
would suggest, however, that that value is the only one to be
considered in a judgment as to the best public interest. In weigh-
ing alternatives for highway location, equal consideration must be
given to other factors—to whether people will be displaced; to
whether existing communities will be disrupted; to whether the
established demand for adequate transportation facilities for peo-
ple, goods, and services will be met; and to the preferences of the
people of the area involved. Preservation for use is sound conser-
vation philosophy, and it is in that perspective that both section
138 and section 4(f) should be administered.
[p. 12]
-------
780 LEGAL COMPILATION—GENERAL
DEPARTMENT OF TRANSPORTATION ACT
(80 Stat. 931; Public Law 89-670)
*******
GENERAL PROVISIONS
SEC. 4 (a) * * *
*******
(f) The Secretary shall cooperate and consult with the Secre-
taries of the Interior, Housing and Urban Development, and Agri-
culture, and with the States in developing transportation plans
and programs that include measures to maintain or enhance the
natural beauty of the lands traversed. After the effective date of
this Act, the Secretary shall not approve any program or project
which requires the use of any land from a public park, recreation
area, wildlife and waterfowl refuge, or historic site unless [(1)
there is no feasible and prudent alternative to the use of such
land, and (2) such program includes all possible planning to mini-
mize harm to such park, recreational area, wildlife and waterfowl
refuge, or historic site resulting from such use.] such program or
project includes all possible planning, including consideration of
alternatives to the use of such land, to minimize any harm to such
park, recreational area, wildlife and waterfowl refuge, or historic
site resulting from such use.
[p. 43]
1.5b(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 1799, 90th Cong., 2d Sess. (1968)
FEDERAL-AID HIGHWAY ACT OF 1968
JULY 25, 1968.—Ordered to be printed
Mr. FALLON, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany S. 3418]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the House to the bill (S. 3418) to
authorize appropriations for the fiscal years 1970 and 1971 for the
-------
STATUTES AND LEGISLATIVE HISTORY 781
construction of certain highways in accordance with title 23 of the
United States Code, and for other purposes, having met, after full
and free conference, have agreed to recommend and do recommend
to their respective Houses as follows:
That the Senate recede from its disagreement to the amendment
of the House and agree to the same with an amendment as fol-
lows:
In lieu of the matter proposed to be inserted by the House
amendment insert the following:
[p.l]
Preservation of Park Lands
Sec. 18. (a) Section 138 of title 23, United States Code, is
amended to read as follows:
"§138. Preservation of parklands
"It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the coun-
tryside and public park and recreation lands, wildlife and water-
fowl refuges, and historic sites. The Secretary of Transportation
shall cooperate and consult with the Secretaries of the Interior,
Housing and Urban Development, and Agriculture, and with
the States in developing transportation pla,ns and programs that
[p. 10]
include measures to maintain or enhance the natural beauty of
the lands traversed. After the effective date of the Federal-Aid
Highway Act of 1968, the Secretary shall not approve any pro-
gram or project which requires the use of any publicly owned
land from a public park, recreation area, or wildlife and water-
fowl refuge of national, State, or local significance as determined
by the Federal, State, or local officials having jurisdiction thereof,
or any land from an historic site of national, State, or local sig-
nificance as so determined by such officials unless (1) there is no
feasible and prudent alternative to the use of such land, and
(2) such program includes all possible planning to minimize harm
to such park, recreational area, wildlife and waterfowl refuge, or
historic site resulting from such use."
(b) Section 4(f) of the Department of Transportation Act (80
Stat. 931; Public Law 89-670) is amended to read as follows:
"(/) It is hereby declared to be the national policy that special
effort should be made to preserve the natural beauty of the coun-
tryside and public park and recreation lands, wildlife and water-
-------
782 LEGAL COMPILATION—GENERAL
fowl refuges, and historic sites. The Secretary of Transportation
shall cooperate and consult with the Secretaries of the Interior,
Housing and Urban Development, and Agriculture, and with the
States in developing transportation plans and programs that in-
clude measures to maintain or enhance the natural beauty of the
lands traversed. After the effective date of the Federal-Aid High-
way Act of 1968, the Secretary shall not approve any program
or project which requires the use of any publicly owned land from
a public park, recreation area, or wildlife and waterfowl refuge
of national, State, or local significance as determined by the Fed-
eral, State, or local officials having jurisdiction thereof, or any
land from an historic site of national, State, or local significance
as so determined by such officials unless (1) there is no feasible
and prudent alternative to the use of such land, and (2) such pro-
gram includes all possible planning to minimize harm to such
park, recreational area, wildlife and waterfoiol refuge, or historic
site resulting from such use."
[p. 11]
PRESERVATION OF PARK LANDS
The Senate bill amended section 138 of title 23 to make it
conform to the declaration of policy set forth in section 4(f) of
the Department of Transporf^J-'?n Act relating to the preservation
of park lands.
Section 18 of the House amendment amended section 4 (f) of the
Department of Transportation Act to make that declaration of
policy conform with the declaration of policy in section 138 of title
23 of the United States Code on that subject.
The conference substitute amends both section 4(f) of the De-
partment of Transportation Act and section 138 of title 23 of the
United States Code so that the declaration of policy will be identi-
cal in each instance and this declaration reads as follows:
[p. 31]
It is hereby declared to be the national policy that special effort
should be made to preserve the natural beauty of the countryside
and public park and recreation lands, wildlife and waterfowl re-
fuges, and historic sites. The Secretary of Transportation shall
cooperate and consult with the Secretaries of the Interior, Hous-
ing and Urban Development, and Agriculture, and with the States
in developing transportation plans and programs that include
measures to maintain or enhance the natural beauty of the lands
traversed. After the effective date of the Federal-Aid Highway
-------
STATUTES AND LEGISLATIVE HISTORY
783
Act of 1968, the Secretary shall not approve any program or proj-
ect which requires the use of any publicly owned land from a
public park, recreation area, or wildlife and waterfowl refuge of
national, State, or local significance as determined by the Federal,
State, or local officials having jurisdiction thereof, or any land
from an historic site of national, State, or local significance as so
determined by such officials unless (1) there is no feasible and
prudent alternative to the use of such land, and (2) such program
includes all possible planning to minimize harm to such park,
recreational area, wildlife and waterfowl refuge, or historic site
resulting from such use.
This amendment of both relevant sections of law is intended to
make it unmistakably clear that neither section constitutes a man-
datory prohibition against the use of the enumerated lands, but
rather, is a discretionary authority which must be used with both
wisdom and reason. The Congress does not believe, for example,
that substantial numbers of people should be required to move in
order to preserve these lands, or that clearly enunciated local
preferences should be overruled on the basis of this authority.
[P. 32]
1.5b(4) CONGRESSIONAL RECORD, VOL. 114 (1968)
1.5b(4) (a) July 1: Debated, amended and passed Senate, pp. 19529,
19530, 19552
Mr. JACKSON. I compliment the
able and distinguished Senator from
West Virginia, the chairman of the
committee, for his very fine presenta-
tion of the highway bill.
I call to the attention of the dis-
tinguished Senator from West Vir-
ginia a provision in H.R. 17134, the
Federal-Aid Highway Act of 1968,
now under consideration in the House
of Representatives. Section 17 of the
House bill contains language which,
if enacted, will severely weaken sec-
tion 4(f) the Department of Trans-
portation Act. As the Senator will re-
call, in enacting legislation to create
a new Department of Transportation,
Congress expressed a national policy
to preserve and enhance the beauty
of the countryside, public parks, rec-
reation lands, wildlife, and waterfowl
refuges, and historic sites in sections
2(b) (2) and 4(f) of the Transporta-
tion Act. Section 4(f), which imple-
ments this policy, is now under at-
tack. Its opponents seek to substan-
tially diminish, if not nullify, the clear
directive of 4(f). Instead of directing
the Secretary of Transportation not
to approve any program or project
which requires the use of these public
parklands unless there is "no feasible
and prudent alternative to the use of
such land," the Secretary, under the
House amendment, would merely be
required to "consider" alternatives.
It is highly important, in my judg-
ment, to carry on the previously ex-
-------
784
LEGAL COMPILATION—GENERAL
pressed intent of Congress on this
question of the balance that must be
[p. 19529]
struck between expanding transporta-
tion systems and the preservation of
our public parklands.
It is my understanding that the
Senate highway bill does not contain
a provision that would modify section
4(f) of the Transportation Act. Am
I correct?
Mr. RANDOLPH. The Senator is
correct.
Mr. JACKSON. I thank the Sen-
ator. Am I also correct in stating that
the able chairman of the Public Works
Committee does not recommend any
modification of section 4(f) of the De-
partment of Transportation Act and
that the Committee has determined
to uphold the previously expressed in-
tent of Congress on this question?
Mr. RANDOLPH. The Senator is
again correct. On September 29, 1966,
the Senate passed the Department of
Transportation Act by a 64-to-2 roll-
call vote. The distinguished junior
Senator from Washington was the
floor manager of the act and per-
formed a great service in guiding this
complex and important legislation
through the Senate. The Senator of-
fered as amendments what are now
sections 2(b) (2) and 4(f). The House
accepted the Senate language in con-
ference. These sections are clear state-
ments of a national policy that the
natural beauty of our countryside and
public parks should be preserved.
I wish to underline my assurance
to the Senator that I will make every
effort to see that section 4(f) is not
disturbed, and that the intent of Con-
gress is upheld.
In that connection as we stated in
the report:
The committee is extremely concerned that
the highway program be carried out in such a
manner as to reduce in all instances the harsh
impact on people which results in the dis-
location and displacement by reason of high-
way construction. Therefore, the use of park
lands properly protected and with damage
minimized by the most sophisticated construc-
tion techniques is to be preferred to the
movement of large numbers of people.
I also wish to quote from a letter
of July 1, 1968, from Alan S. Boyd,
the Secretary of Transportation, to
Hon. JOHN W. McCoRMACK, the
Speaker of the House of Representa-
tives.
I ask unanimous consent that the
entire letter be printed in the RECORD
at this point.
There being no objection, the letter
was ordered to be printed in the REC-
ORD, as follows:
SECRETARY OF TRANSPORTATION,
Washington, D.C., July 1, 1968.
HON. JOHN W. McCoKMACK,
Speaker, House of Representatives,
Washington, D.C.
DEAR MR. SPEAKER: Today the House of
Representatives will consider several amend-
ments to the Federal-Aid Highway Act of
1968. Among these will be amendments that
will profoundly affect the nation's natural
resources and scenic beauty.
I am deeply concerned about the proposed
amendments that will be offered on the floor
to make a nullity of the Highway Beautifica-
tion program. While I was disappointed at
the magnitude of the program contained
in the Committee bill, we nevertheless recog-
nize the concern of the Committee about
expenditures in the difficult fiscal situation
as it now exists. Despite this disappoint'
ment, however, the Committee did preserve
the program so that we will be able to con-
tinue to plan to move ahead swiftly when
the present financial problems are solved.
We have been gratified by the progress
that has already been made in the Highway
Beaut ification program. Thirty-one state leg-
islatures have enacted laws providing for the
control of outdoor advertising. Other legis-
latures are now considering such legislation
or will do so early in 1969. We have reached
agreement with 17 states on outdoor ad-
vertising control procedures and we are close
to agreement with a number of other states.
Forty states have enacted legislation to con-
trol junk yards. Although only a small
amount of Federal funds has been expended
so far, approximately 1500 junk yards have
either been screened or removed. All 50
states are participating in the landscaping
-------
STATUTES AND LEGISLATIVE HISTORY
785
and scenic enhancement provisions of the
act. These have gained broad public accept-
ance.
We think that the present generation of
Americans have given their overwhelming ap-
proval to these important beautification ef-
forts. They will be enjoyed by generations to
come. This nation has been blessed with
beauty and grandeur that we can no longer
squander. There are many programs which
the Congress has approved to insure their
preservation. We believe that the Highway
Beautification program is a major effort that
must be continued.
I strongly urge the House of Representa-
tives to reject the amendments that will be
offered to eliminate the grant programs and
to eliminate any of the incentives that are
designed to stimulate state participation.
Those amendments would effectively end the
Beautification program and we are confident
that is not the desire or the intent of the
Congress.
When the Congress enacted the Depart-
ment of Transportation Act of 1966, it spe-
cifically and unequivocally recognized that
national transportation policies and pro-
grams should be developed consistent with
the efficient utilization and conservation of
the nation's resources. It declared as the na-
tional policy that special effort should be
made to preserve the natural beauty of the
countryside and public park and recreation
lands, wildlife and waterfowl refuges, and
historic sites. It implemented these declara-
tions of policy by requiring the Secretary of
Transportation to cooperate and consult with
the Secretaries of the Interior, Housing and
Urban Development, and Agriculture and
ivitb the States in developing transportation
plans and programs of all forms that include
measures to maintain or enhance the natural
beauty of the lands traversed.
In aid of the declared national policy, the
Congress, in section 4(f) of the Act, directed
the Secretary of Transportation not to ap-
prove transportation programs or projects
which require the use of any land from a
public park, recreation area, wildlife and
waterfowl refuge, or historic site unless (1)
there is no feasible and prudent alternative
to the use of such land, and (2) such pro-
gram includes all possible planning to mini-
mize harm to such park, recreational area,
wildlife and waterfowl refuge, or historic site
resulting from such use.
The House Public Works Committee has
proposed an amendment conforming the lan-
guage of section 4(f) to that of section 138 of
Title 23, United States Code. As the Com-
mittee Report indicates, the difference be-
tween its proposed change and the present
language is slight. The Report states the
Committee's belief that the perspective in
decision-making should be broadened, not
narrowed, and that preservation for use is
sound conservation philosophy. In view of
these statements, it seemes clear that the in-
tent of the Committee is not to depart from
the stated national policy. It is in this spirit
that the Department of Transportation pro-
poses to administer the Act. We therefore
view the intent of the Committee's limited
conforming amendment as reflecting no sub-
stantive change in the mandates placed upon
this Department.
However, the Department opposes the pro-
posed amendment at this time—little more
than a year after the effective date of section
4 (f). The Department is aware of no prob-
lems which have arisen in the course of ad-
ministering the present language, nor does
the Committee Report refer to any. We think
the present language of section 4(f) is a clear
statement of the Congressional purpose. Ac-
cordingly, there would appear to be no reason
to amend it at this time.
Sincerely,
ALAN S. BOYD.
Mr. RANDOLPH. I call particular
attention to the paragraph of the let-
ter where Secretary Boyd says:
The House Public Works Committee has
proposed an amendment conforming the
langauge of section 4(f) to that of section
138 of Title 23, United States Code. As the
Committee Report indicates, the difference
between its proposed change and the present
language is slight The Report states the
Committee's belief that the perspective in
decision-making should be broadened, not
narrowed, and that preservation for use is
sound conservation philosophy. In view of
these statements, it seems clear that the in-
tent of the Committee is not to depart from
the stated national policy. It is in thia spirit
that the Department of Transportation pro-
poses to administer the Act. We therefore
view the intent of the Committee's limited
conforming amendment as reflecting no sub-
stantive change in the mandates placed upon
this Department.
[p. 19530]
The PRESIDING OFFICER. The
bill is open to further amendment.
If there be no further amendment to
be proposed, the question is on the
engrossment and third reading of the
bill.
-------
786
LEGAL COMPILATION—GENERAL
The bill was ordered to be engrossed
and read a third time.
The bill was read the third time.
The PRESIDING OFFICER. The
bill having been read the third time,
the question is, Shall it pass?
The bill (S. 3418) was passed.
[p. 19552]
1.5b(4)(b) July 3: Amended and passed House, pp. 19937, 19947,
19950
[No Relevant Discussion on Pertinent Section]
1.5b(4)(c) July 26: House agrees to conference report, p. 23712,
23713
[No Relevant Discussion on Pertinent Section]
1.5b(4)(d) July 29: Senate agrees to conference report, pp. 24036,
24037, 24038
Mr. YARBOROUGH. Mr. Presi-
dent, S. 3418, the Federal-Aid High-
way Act of 1968, was in conference
committee for 13 days. I commend the
distinguished Senate conferees, head-
ed by the very capable senior Senator
from West Virginia [Mr. RANDOLPH],
for their diligent efforts in a hard bat-
tle to protect the interests of the Sen-
ate, of the people, and of the Nation
in this very important legislation.
A matter of particular concern to
me in this legislation was a provision
in the House bill to weaken severely
the authority of the Secretary of
Transportation to protect public park-
lands, wildlife refuges, recreation
areas, and historic sites.
The House version of this bill would
have eliminated section 4(f) of the
Department of Transportation Act of
1966—a section that prohibits the
Seretary of Transportation from ap-
proving any Federal highway project
that would cut through these invalu-
able lands and sites unless there is no
feasible alternative.
It was my pleasure to support ac-
tively the concerned efforts of the dis-
tinguished Senator from Washington
[Mr. JACKSON] to put section 4(f)
into that 1966 act. Before that, I suc-
cessfully fought to put similar pro-
tective language in the Federal-Aid
Highway Act of 1966.
S. 3418, the Senate version of the
Federal-Aid Highway Act of 1968, ap-
propriately maintains the authority
of the Secretary of Transportation to
protect these irreplaceable lands and
sites from the cynical intrusions of
the insensitive highway lobby.
Our able conferees from the Senate
have worked to hold the line on this
important item. Unfortunately, the
House conferees seemed determined to
pave over our natural beauty and his-
toric treasures with highway con-
crete. The language in the conference
report is ambiguous and needs clari-
fication. At page 11 of the conference
report accompanying S. 3418, the fol-
lowing compromise on section 4(f) is
reported:
(b) Section 4(f) of the Department of
Transportation Act (80 Stat. 931; Public Law
89-670) is amended to read as follows:
"(f) It is hereby declared to be the na-
tional policy that special effort should be
made to preserve the natural beauty of the
countryside and public park and recreation
lands, wildlife and waterfowl refuges, and
-------
STATUTES AND LEGISLATIVE HISTORY
787
historic sites. The Secretary of Transporta-
tion shall cooperate and consult with the
Secretaries of the Interior, Housing and Ur-
ban Development, and Agriculture, and with
the States in developing transportation plans
and programs that include measures to
maintain or enhance the natural beauty of
the lands traversed. After the effective date
of the Federal-Aid Highway Act of 1968,
the Secretary shall not approve any program
or project which requires the use of any
publicly owned land from a public park,
recreation area, or wildlife and waterfowl
refuge of national. State, or local significance
as determined by the Federal, State, or local
officials having jurisdiction thereof, or any
land from an historic site of national, State,
or local significance as so determined by such
officials unless (1) there is no feasible and
prudent alternative to the use of such land,
and (2) such program includes all possible
planning to minimize harm to such park,
recreational area, wildlife and waterfowl ref-
uge, or historic site resulting from such use.
The important phrase in this new
language is "of national, State, or
local significance as determined by the
Federal, State, or local officials having
jurisdiction thereof." This phrasing
introduces a new element into the laws
which are designed to protect our
parklands and our sites.
I want to address my remarks and
questions to the Senator from West
Virginia. I see one distinct advantage.
It was contended after the 1966 act
that "public park" referred only to
national parks, and not State or local
jurisdictions. It is contended that this
applies to Federal, State, and local,
throughout. I want to ask certain
questions of the Senator from West
Virginia with regard to that. The
question has been raised that, if the
local authorities said that a site had
no historic significance, engineers
could ram a highway through regard-
less of a site's being of historic sig-
nificance. Is that correct?
Mr. RANDOLPH. No; they could
not ram it through, as the Senator
has said.
*****
[p. 24036]
*****
The PRESIDING OFFICER. The
question is on agreeing to the confer-
ence report. On this question, the yeas
aiul nays have been ordered, and the
clerk will call the roll.
The result was announced—yeas 66,
nays 6, ***.
[p. 24037]
*****
So the conference report was agreed
to.
*****
[p. 24038]
-------
788 LEGAL COMPILATION—GENERAL
1.6 FEDERAL AID HIGHWAY ACT OF 1970, AS AMENDED
23 U.S.C. §109(h), (i), (j) (1970)
§109. Standards
(a) The Secretary shall not approve plans and specifications for
proposed projects on any Federal-aid system if they fail to provide
for a facility (1) that will adequately meet the existing and proba-
ble future traffic needs and conditions in a manner conducive to
safety, durability, and economy of maintenance; (2) that will be
designed and constructed in accordance with standards best suited
to accomplish the foregoing objectives and to conform to the par-
ticular needs of each locality.
(b) The geometric and construction standards to be adopted for
the Interstate System shall be those approved by the Secretary in
cooperation with the State highway departments. Such standards,
as applied to each actual construction project, shall be adequate to
enable such project to accommodate the types and volumes of
traffic anticipated for such project for the twenty-year period
commencing on the date of approval by the Secretary, under sec-
tion 106 of this title, of the plans, specifications, and estimates for
actual construction of such project. Such standards shall in all
cases provide for at least four lanes of traffic. The right-of-way
width of the Interstate System shall be adequate to permit con-
struction of projects on the Interstate System to such standards.
The Secretary shall apply such standards uniformly throughout all
the States.
(c) Projects on the Federal-aid secondary system in which Fed-
eral funds participate shall be constructed according to specifica-
tions that will provide all-weather service and permit maintenance
at a reasonable cost.
(d) On any highway project in which Federal funds hereafter
participate, or on any such project constructed since December 20,
1944, the location, form and character of informational, regula-
tory and warning signs, curb and pavement or other markings,
and traffic signals installed or placed by any public authority or
other agency, shall be subject to the approval of the State highway
department with the concurrence of the Secretary, who is directed
to concur only in such installations as will promote the safe and
efficient utilization of the highways.
(e) No funds shall be approved for expenditure on any Feder-
al-aid highway, or highway affected under chapter 2 of this title,
unless proper safety protective devices complying with safety
standards determined by the Secretary at that time as being ade-
quate shall be installed or be in operation at any highway and
-------
STATUTES AND LEGISLATIVE HISTORY 789
railroad grade crossing or drawbridge on that portion of the high-
way with respect to which such expenditures are to be made.
(f) The Secretary shall not, as a condition precedent to his
approval under section 106 of this title, require any State to ac-
quire title to, or control of, any marginal land along the proposed
highway in addition to that reasonably necessary for road sur-
faces, median strips, gutters, ditches, and side slopes, and of suffi-
cient width to provide service roads for adjacent property to per-
mit safe access at controlled locations in order to expedite traffic,
promote safety, and minimize roadside parking. Pub.L. 85-767,
Aug. 27, 1958, 72 Stat. 894; Pub.L. 88-157, § 4, Oct. 24, 1963, 77
Stat. 277.
(g) The Secretary shall issue within 30 days after the day of
enactment of the Federal-Aid Highway Act of 1970 guidelines
for minimizing possible soil erosion from highway construction.
Such guidelines shall apply to all proposed projects with respect to
which plans, specifications, and estimates are approved by the
Secretary after the issuance of such guidelines.
(h) Not later than July 1, 1972, the Secretary, after consulta-
tion with appropriate Federal and State officials, shall submit to
Congress, and not later than 90 days after such submission, pro-
mulgate guidelines designed to assure that possible adverse eco-
nomic, social, and environmental effects relating to any proposed
project on any Federal-aid system have been fully considered in
developing such project, and that the final decisions on the project
are made in the best overall public interest, taking into considera-
tion the need for fast, safe and efficient transportation, public
services, and the costs of eliminating or minimizing such adverse
effects and the following:
(1) air, noise, and water pollution;
(2) destruction or disruption of man-made and natural
resources, aesthetic values, community cohesion and the avail-
ability of public facilities and services;
(3) adverse employment effects, and tax and property
value losses ;
(4) injurious displacement of people, businesses and
farms; and
(5) disruption of desirable community and regional
growth.
Such guidelines shall apply to all proposed projects with respect to
which plans, specifications, and estimates are approved by the
Secretary after the issuance of such guidelines.
(i) The Secretary, after consultation with appropriate Federal,
State, and local officials, shall develop and promulgate standards
-------
790 LEGAL COMPILATION—GENERAL
for highway noise levels compatible with different land uses and
after July 1, 1972, shall not approve plans and specifications for
any proposed project on any Federal-aid system for which location
approval has not yet been secured unless he determines that such
plans and specifications include adequate measures to implement
the appropriate noise level standards.
(j) The Secretary, after consultation with the Administrator of
the Environmental Protection Agency, shall develop and promul-
gate guidelines to assure that highways constructed pursuant to
this title are consistent with any approved plan for the implemen-
tation of any ambient air quality standard for any air quality
control designated pursuant to the Clean Air Act, as amended.
Pub.L. 85-767, Aug. 27, 1958, 72 Stat. 894; Pub.L. 88-157, § 4,
Oct. 24, 1963, 77 Stat. 277; Pub.L. 89-574, §§ 5(a), 14, Sept. 13,
1966, 80 Stat. 767, 771; Pub.L. 91-605, Title I, § 136(a), (b), Dec.
31, 1970, 84 Stat.
-------
STATUTES AND LEGISLATIVE HISTORY 791
1.6a FEDERAL AID HIGHWAY ACT OF 1970
December 31, 1970, P.L. 91-605, §136(b), 84 Stat. 1734
SEC. 101. This title may be cited as the "Federal-Aid Highway
Act of 1970".
[p. 1713]
ECONOMIC, SOCIAL, ENVIRONMENTAL, AND OTHER IMPACT
SEC. 136. (a) Section 109 (g) of title 23, United States Code, is
amended to read as follows:
" (g) The Secretary shall issue within 30 days after the day of
enactment of the Federal-Aid Highway Act of 1970 guidelines for
minimizing possible soil erosion from highway construction. Such
guidelines shall apply to all proposed projects with respect to
which plans, specifications, and estimates are approved by the
Secretary after the issuance of such guidelines."
(b) Such section 109 is further amended by adding at the end
thereof the following:
" (h) Not later than July 1, 1972, the Secretary, after consulta-
tion with appropriate Federal and State officials, shall submit to
Congress, and not later than 90 days after such submission, pro-
mulgate guidelines designed to assure that possible adverse eco-
nomic, social, and environmental effects relating to any proposed
project on any Federal-aid system have been fully considered in
developing such project, and that the final decisions on the project
are made in the best overall public interest, taking into considera-
tion the need for fast, safe and efficient transportation, public
services, and the costs of eliminating or minimizing such adverse
effects and the following:
" (1) air, noise, and water pollution;
"(2) destruction or disruption of man-made and natural
resources, aesthetic values, community cohesion and the avail-
ability of public facilities and services;
"(3) adverse employment effects, and tax and property
value losses;
" (4) injurious displacement of people, businesses and
farms; and
"(5) disruption of desirable community and regional
growth.
Such guidelines shall apply to all proposed projects with respect to
which plans, specifications, and estimates are approved by the
Secretary after the issuance of such guidelines.
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792 LEGAL COMPILATION—GENERAL
"(i) The Secretary, after consultation with appropriate Fed-
eral, State, and local officials, shall develop and promulgate stand-
ards for highway noise levels compatible with different land uses
and after July 1, 1972, shall not approve plans and specifications
for any proposed project on any Federal-aid system for which
location approval has not yet been secured unless he determines
that such plans and specifications include adequate measures to
implement the appropriate noise level standards.
"(j) The Secretary, after consultation with the Administrator
of the Environmental Protection Agency, shall develop and pro-
mulgate guidelines to assure that highways constructed pursuant
to this title are consistent with any approved plan for the imple-
mentation of any ambient air quality standard for any air quality
control region designated pursuant to the Clean Air Act, as
amended."
(c) Subsection (b) of section 307 of title 23, United States
Code, is amended by adding the following sentence: "The highway
research program herein authorized shall also include studies to
identify and measure, quantitatively and qualitatively, those fac-
tors which relate to economic, social, environmental, and other
impacts of highway projects."
[p. 1734]
1.6a(l) HOUSE COMMITTEE ON PUBLIC WORKS
H.R. REP. No. 91-1554, 91st Cong., 2d Sess. (1970)
[No Relevant Discussion on Pertinent Section]
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STATUTES AND LEGISLATIVE HISTORY 793
1.6a(2) SENATE COMMITTEE ON PUBLIC WORKS
S. REP. No. 91-1254, 91st Cong., 2d Sess. (1970)
FEDERAL-AID HIGHWAY ACT OF 1970
SEPTEMBER 30, 1970.—Ordered to be printed
Mr. RANDOLPH, from the Committee on Public Works,
submitted the following
REPORT
together with
INDIVIDUAL VIEWS
[To accompany S. 4418]
The Committee on Public Works, which has had under consider-
ation bills to authorize appropriations for the fiscal years 1972 and
1973 for the construction of certain highways in accordance with
title 23 of the United States Code, and for other purposes, reports
favorably thereon an original bill (S. 4418) in lieu of S. 4260 and
S. 4055, those bills which were considered by the Committee.
INTRODUCTION
The Federal-Aid Highway Act of 1970 is a response to the
broadened concept of highways as not only the principal means of
surface transportation in the United States but as an increasingly
important factor in determining the character and quality of our
national life.
In many respects, it is a continuation and refinement of earlier
highway legislation. It enlarges considerably on provisions of the
Federal-Aid Highway Act of 1968. It also approaches new prob-
lems with new ideas.
While the Congress is committed to the substantial completion
of the Interstate system, it is imperative that the groundwork for
highway programs for the post-Interstate period. Many factors
have contributed to the delay in completing the Interstate system.
The cost of the system far exceeds the original projections of
1956. It is now anticipated that the Interstate system can be com-
pleted by 1978, and this bill includes provision for a firm cut-off
date beyond which 90 percent Federal participation in Interstate
[p.l]
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794 LEGAL COMPILATION—GENERAL
construction would not be available. The Committee also antici-
pates that some highly controversial and expensive sections of
Interstate highways in urban areas will not be built, thus reducing
the cost and possibly the time needed for completion.
Since highways affect virtually every aspect of our life, either
directly or indirectly, it is logical that responsibility for their
planning and execution should be broadly based so as to accurately
reflect the needs and wishes of the people who will be served by
these highways. This bill would meet this need by giving to the
elected representatives of the people, Governors, mayors, and
other local authorities a greater voice in highway decisions.
The effect of highways on the environmental, social, and eco-
nomic life of our communities is widely recognized. This bill con-
tains provisions which seek to assure that adverse impacts as a
result of highway construction are minimized, overcome, or
avoided. It sets forth what must be considered in the planning and
construction of highways and provides the mechanism and money
for meeting these requirements.
This bill provides that the highway safety and beautification
programs will be financed from the highway trust fund. Both of
these programs, which are closely related to safe, efficient highway
operations, have been seriously underfinanced in the past, so that
their full implementation has never been possible. Utilizing the
resources of the fund will provide reasonable assurance of sus-
tained financing.
DESCRIPTION OF THE BILL
The Committee on Public Works is reporting a clean bill, the
Federal-Aid Highway Act of 1970. This measure was approved
unanimously by the Committee in lieu of S. 4260, introduced by
Senator Randolph with 30 cosponsors, and S. 4055, the adminis-
tration .recommendation, introduced by Senator Cooper with 12
cosponsors.
[p. 2]
Authorizations for Federal-domain roads total $198 million for
the fiscal year 1972 and $260 million for the fiscal year 1973 for
the following categories: Forest highways, public lands highways,
forest development roads and trails, public lands development
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STATUTES AND LEGISLATIVE HISTORY 795
roads and trails, park roads and trails, parkways, and Indian
reservation roads and bridges.
The bill also would:
—Tighten controls over economic, social, and environmental im-
pact of highway construction.
*******
HEARINGS
The Subcommittee on Roads this year conducted 18 days of
hearings on all aspects of the Federal-aid highway program and
related activities. A total of 107 witnesses were heard, and 175
statements were filed with the Subcommittee.
The first of these hearings was conducted in April when the
Subcommittee received a report on the status of the Federal-aid
highway program from the Department of Transportation. Be-
tween that time and June, hearings were conducted on several
related proposals: use of highway funds for public transportation,
special bridge replacement program, additions to the Interstate
highway system and need for territorial highway programs. Be-
tween June 9 and July 29, comprehensive general highway hear-
ings were conducted, and in September hearings were held on S.
4260 and S. 4055.
In recent years the Committee has placed considerable emphasis
on the responsibility of government to listen to the viewpoints of
citizens on highway matters. The Subcommittee on Roads, in de-
veloping this legislation, has heard from many people representing
many viewpoints.
Testimony was received from 14 Senators, 3 Members of the
House of Representatives, 2 State and 3 Territorial Governors, the
Mayors of 3 major cities, and spokesmen for industry, profes-
sional, trade, governmental, and citizen organizations.
[p. 3]
Section 9. Economic, Social, Environmental and Other Impact
This section would amend various provisions of title 23 to in-
sure proper consideration of economic, social, environmental, and
other impacts in the development of highway design and construc-
tion plans.
Subsection (a) would expand the definitions of "construction"
and "highway" contained in Section 101 (a), title 23, to require
fuller consideration of these matters in the various stages of high-
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796 LEGAL COMPILATION—GENERAL
way design and construction. The change in the definition of con-
struction as it relates to "economic, social, environmental and
other factors" would become effective in 1974 when the guidelines
required by Section 109 (h) would be implemented, and funds ap-
portioned to the States highway construction would be available to
implement such guidelines.
The change in the definition of highway is designed to secure
the benefits of the relocation assistance program required by
Chapter 5 of Title 23 to those persons located outside of the
right-of-way acquisition lines who suffer the kinds of injury that
Chapter 5 is designed to mitigate.
Subsection (b) would require all-out efforts to minimize soil
erosion which occurs during and after construction of a highway
project. These efforts are to be carried out in accordance with the
guidelines required by subsection (g) of section 109 of title 23 as
it was originally enacted in the Federal-aid Highway Act of 1966.
Subsection (c) would require the Secretary to develop and issue
guidelines for avoiding, minimizing and overcoming adverse eco-
nomic, social, environmental and other impacts of Federal-aid
highway projects.
[p. 20]
After July I, 1974, plans and specifications for any project
would be required to include adequate measures to solve the im-
pact problems identified in an analysis of the project. Among the
problems which would be accounted for are:
(1) Air, noise, and water pollution;
(2) Destruction, or disruption of man-made and natural
resources, aesthetic values, community cohesion, and the
availability of public facilities and services;
(3) Adverse employment effects, and tax and property
value losses;
(4) Injurious displacement of people, business, and farms;
and
(5) Disruption of desirable community and regional
growth.
In the period following the issuance of the guidelines and before
their effective date the Congress will have an opportunity to re-
view the actions of the Secretary.
Subsection (c) would also require the Secretary to issue noise
level standards for highways and to require that the appropriate
standards be applied to proposed highway projects. In addition the
Secretary would be required to insure that any highway construe-
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STATUTES AND LEGISLATIVE HISTORY 797
tion project is designed so as to be consistent with approved air-
quality implementation plans in the air-quality region in which the
project is located.
Subsection (d) would authorize research programs to develop
methods of how to deal with adverse economic, social and environ-
mental effects.
[p. 21]
(h) As soon as possible but not later than July 1, 1972, the
Secretary, after consultation with appropriate Federal officials,
shall issue guidelines for avoiding, minimizing or overcoming pos-
sible adverse economic, social, environmental and other impacts
relating to any proposed projects on any Federal-aid system. Not
later than two years after the publication of such guidelines, the
Secretary shall not approve any plans and specifications for any
such proposed project unless such plans and specifications are
accompanied by a comprehensive analysis identifying the asso-
ciated economic, social, environmental, and other adverse impacts
of such proposed project and the plans and specifications include
adequate measures for avoiding, minimizing or otherwise over-
coming such adverse impacts in compliance with such guidelines.
The impact problems to be accounted for should include but not be
limited to the following:
(1) air, noise, and water pollution;
(2) destruction or disruption of man-made and natural
resources, aesthetic values, community cohesion, and the
availability of public facilities and services;
(3) adverse employment effects, and tax and property
value losses;
(4) injurious displacement of people, businesses, and
farms; and
(5) disruption of desirable community and regional growth.
(i) The Secretary, after consultation with appropriate Federal,
State, and local officials, shall develop and promulgate noise level
standards compatible with different land uses and after July 1,
1972, shall not approve plans and specifications for any proposed
project on any Federal-aid system for which location approval
has not yet been secured unless he determines that such plans
and specifications include adequate measures to implement the
appropriate noise level standards.
(j) The Secretary after consultation with the Secretary of
Health, Education, and Welfare shall develop and promulgate
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798 LEGAL COMPILATION—GENERAL
guidelines to assure that highways constructed pursuant to title
23, United States Code are consistent with any approved plan for
the implementation of any ambient air quality standard for any
air quality control region designated pursuant to the Clean Air
Act as amended.
[p. 54]
1.6a(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 91-1780, 91st Cong., 2d Sess. (1970)
FEDERAL-AID HIGHWAY ACT OF 1970
DECEMBER 17, 1970.—Ordered to be printed
Mr. FALLON, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 19504]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 19504)
to authorize appropriations for the construction of certain high-
ways in accordance with title 23 of the United States Code, and
for other purposes, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
houses as follows:
That the House recede from its disagreement to the amendment
of the Senate and agree to the same with an amendment as
follows:
In lieu of the matter proposed to be inserted by the Senate
amendment insert the following:
TITLE I
Short Title
Sec. 101. This title may be cited as the "Federal-Aid Highway
Act of 1970".
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STATUTES AND LEGISLATIVE HISTORY 799
Economic, Social, Environmental, and Other Impact
Sec. 136. (a) Section 109 (g) of title 23, United States Code, is
amended to read as follows:
"(g) The Secretary shall issue within 30 days after the day of
enactment of the Federal-Aid Highway Act of 1970 guidelines for
minimizing possible soil erosion from highway construction. Such
guidelines shall apply to all proposed projects with respect to
which plans, specifications, and estimates are approved by the
Secretary after the issuance of such guidelines."
(b) Such section 109 is further amended by adding at the end
thereof the following:
"(h) Not later than July 1, 1972, the Secretary, after consulta-
tion with appropriate Federal and State officials, shall submit to
Congress, and not later than 90 days after such submission, pro-
mulgate guidelines designed to assure that possible adverse eco-
nomic, social, and environmental effects relating to any proposed
project on any Federal-aid system have been fully considered in
developing such project, and that the final decisions on the project
are made in the best overall public interest, taking into consid-
eration the need for fast, safe and efficient transportation, public
services, and the costs of eliminating or minimizing such adverse
effects and the following:
"(1) air, noise, and water pollution;
"(2) destruction or disruption of man-made and natural re-
sources, aesthetic values, community cohesion and the avail-
ability of public facilities and services;
"(3) adverse employment effects, and tax and property
value losses;
"(4) injurious displacement of people, businesses and
farms; and
"(5) disruption of desirable community and regional
growth.
Such guidelines shall apply to all proposed projects with respect
to which plans, specification, and estimates are approved by the
Secretary after the issuance of such guidelines.
" (i) The Secretary, after consultation with appropriate Federal,
State, and local officials, shall develop and promulgate standards
for highway noise levels compatible with different land uses and
after July 1, 1972, shall not approve plans and specifications for
[p. 24]
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800 LEGAL COMPILATION—GENERAL
1.6a(4) CONGRESSIONAL RECORD, VOL. 116 (1970)
1.6a(4)(a) Nov. 25: Debated and passed House, pp. 38936-38937;
38961-38962; 38974-38976; 38997
Mr. FALLON. Mr. Chairman, I ap-
pear before the House today in sup-
port of H. R. 19504, the Federal-Aid
Highway Act of 1970, reported by the
Committee on Public Works.
Mr. Chairman, I urgently support
the immediate passage of H.R. 19504
as reported to this body so that the
Federal-Aid Highway Act of 1970 can
become law. The other body has al-
ready passed their version of this
legislation in S. 4418 and it contains
many positions different than H.R.
19504. It is imperative that conferees
iron out the difference in these bills
in the short time remaining in this
session of the Congress.
The Federal-Aid Highway Acts
since 1956 have included important
provisions to protect and enhance our
environment. The Federal-Aid High-
way Act of 1968, for example, in-
cluded a provision for the preserva-
tion of parklands. The Secretary of
Transportation is forbidden to ap-
prove the use of publicly owned park-
lands for highway projects unless
there is "no feasible and prudent al-
ternative," and if such lands must be
used, all possible planning must be
instituted to minimize harm to such
lands. Section 24 of that act requires
the State highway departments be-
fore submitting proposals for highway
locations to consider the social effects,
environmental impact, and consistency
with the goals and objectives of urban
planning promulgated by the com-
munity of such locations, in addition
to consideration of the economic im-
pact of such locations.
At the urging of this committee,
the Federal Highway Administration
has undertaken numerous activities to
assure the compatibility of the high-
way and its environment. I believe we
ought to note a few of these efforts.
1. ENVIRONMENTAL DEVELOPMENT
DIVISION
Almost 2 years ago, an Environ-
mental Development Division was cre-
ated in the Bureau of Public Roads.
It is a multidisciplinary group, staffed
with architects, city planners, land-
scape architects, sociologists, econo-
mists, appraisers, engineers, and
others. This division is concerned with
the following elements:
Consideration of social, economic,
and environmental factors, with spe-
cial emphasis on those factors sig-
nificant to a highway decision;
Optimum utilization of the joint de-
velopment potential of a highway
project and its environment, including
multiple use of the highway right-of-
way;
[p. 38936]
Use of multidisciplinary design
groups as staff advisers to agencies
and jurisdictions responsible for high-
way and community programs;
Use of intergovernmental policy
groups in a comprehensive highway
project planning process, to develop
integrated and coordinated highway
and environmental plans and pro-
grams; and
Use of citizen and unofficial groups
as community and neighborhood ad-
visers to agencies and jurisdictions
responsible for highway and com-
munity programs.
2. ENVIRONMENTAL DESIGN GROUP
In order to better recognize and in-
tegrate economic, social and environ-
mental factors, design concept teams
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STATUTES AND LEGISLATIVE HISTORY
801
were established. Major design con-
cept team efforts are being made in
such places as Baltimore, Chicago,
Boston, New York, and Phoenix. A
number of highway departments, ad-
ditionally, have established an inter-
nal multidisciplinary staff capability
involving the environmental design
approach. The objective of all of these
efforts is to make sure that adequate
attention is given to preservation and
enhancement of the quality of the en-
vironment, and related social and eco-
nomic factors. Substantial dollar re-
sources are involved.
3. JOINT DEVELOPMENT AND
MULTIPLE USE
More than 4 years ago, the idea of
joint development and multiple use
was initiated. The objective of these
programs is to make double and triple
use of highway rights-of-way and
highway dollars, establishing uses
compatible and complementary to the
transportation corridor. It also assists
communities in the attainment of
their other stated goals. It restores
taxable property and provides serv-
ices of all kinds to communities. Over
500 requests from almost every State
and the District of Columbia for the
permissive joint use of highway land
for non-highway purposes have been
processed. This program alone offers
fantastic opportunities for preserving
and enhancing the community envir-
onment.
4. METROPOLITAN DEVELOPMENT AND
INTERGOVERNMENTAL REVIEW
Based upon a long-time tradition of
intergovernmental cooperation, the
Federal Highway Administration was
one of the first to fully implement
the Intergovernmental Cooperation
Act of 1968 and its predecessor legis-
lation. The objective is to conform
highway projects with environmental
and metropolitan development. Envir-
onmental elements are an important
segment of these activities. This ac-
tivity has been extended to nonmetro-
politan and rural areas as well.
5. ACQUISITION IN LIMITED VERTICAL
DIMENSION
In an increasing number of in-
stances, the Federal Highway Admin-
istration is encouraging acquisitions
in limited vertical dimension, either
above or below a resource that is
sought to be preserved. This could
leave a park, open space, stream, wild-
life area, battlefield, or similar re-
source intact.
[p. 38937]
Mr. WOLFF. Mr. Chairman, I rise
in support of the amendment that will
be offered by my distinguished col-
league from New York (Mr. REID).
This amendment would ensure effec-
tive local review of the impact of
Federal-aid highway programs upon
parks, wildlife refuge areas, national
historic sites, and other areas whose
conservation would serve the public
interest.
In this period, when we get so much
lip service to saving our environment,
this amendment would give meaning
to the words of those concerned about
conservation.
In this period, when there is great
understandable concern about the role
of local communities in decisions af-
fecting them, this amendment would
give localities a well-deserved voice in
matters of direct consequence to them.
In this period, when objections are
justly raised to the lack of informa-
tion available to the public about mat-
ters of general concern, this amend-
ment would provide for an effective
hearing and public disclosure proce-
dures designed to ensure adequate
public knowledge of the plans and
probable impact of highway programs.
This amendment, then, gives us the
opportunity to put the House of Rep-
resentatives behind reasonable, re-
sponsible proposals of conservation,
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802
LEGAL COMPILATION—GENERAL
public disclosure and local participa-
tion in matters of great importance to
the localities in which Federal-aid
highway programs are contemplated.
It seems quite obvious to me that
the House would want to put deeds
where we have words; to substitute
action for promises.
As the Members consider this
amendment there is one crucial point
to bear in mind. Once a highway is
built, once trees, wetlands, and fields
are destroyed, once the bulldozer has
done its job, we cannot turn around
and undo what has been done. The
finality of constructing a highway is
a perfect argument for building into
the decisionmaking process as many
safeguards as possible against wanton,
ill-advised programs. This amend-
ment, then, is not an anti-highway
amendment, it is a pro-environment,
pro-local control amendment and most
worthy of support.
I would also point out to my col-
leagues that this amendment does not
give control to amateurs. As the able
gentleman from New York said when
testifying for this bill before the
committee:
Each local commission would be staffed
entirely by persons with recognized exper-
tise in the area of conservation of natural
resources and wildlife and preservation of
historic sites, communities and landmarks.
This is important because in consid-
ering the potential far-reaching im-
pact of this amendment it is vital that
we vest the authority for review of
Federal-aid highway programs in in-
dividuals of ability and stature.
The gentleman deserves to be con-
gratulated for taking the lead in this
important area and I am pleased to
rise in support of this amendment. I
trust our colleagues will see the wisdom
of adding this amendment to the pend-
ing legislation.
Mr. Chairman, there is no need to
point out to anyone here the crying
need for a solution to our present
mass transit crisis. The state of trans-
portation in the United States today
is an absolute mess. Our cities are
choking on automobiles and their pol-
lution. Yet we are aiming at crossing
oceans in 2 hours with an SST. For
what? To wait 3 hours in a traffic
jam? Why should we support a pro-
gram which leaves the overwhelming
majority of our people's problems un-
attended to? We should not. Thus I
support this amendment which offers
us at least a partial solution to the
crisis.
If we adopt it, we will make avail-
able funds for a rational and unified
approach to all forms of mass tran-
sit—not just the auto and the bus.
What can be the argument against
such a move? There is only one—and
we hear it over and over again. The
Government would break faith with
highway users if it spent any of the
trust fund money on nonhighway proj-
ects, that the taxes imposed on gaso-
line, tires, tubes, and other highway
related equipment are acceptable to
the American public only because of
the Government's assurance that the
money raised will be spent only on
highways. One would think from read-
ing much of the propaganda spread by
the highway lobby, that the trust fund
is fed by taxes specifically created in
order to finance it. If that were true,
there might be some logic in the aura
of inviolability that surrounds the
trust fund.
But it is not true.
Of all the taxes that yield money
for the trust fund, only two were cre-
ated along with it in 1956—a tax on
rubber used in retreading tires and a
use tax imposed on heavy vehicles.
Most of the other taxes that feed this
fund—including the one on gasoline
that raises three-fourths of its in-
come—came into existence in 1932, al-
though some were increased in 1956.
Prior to the creation of the trust
fund, the money from these taxes
went into the general fund without
being earmarked exclusively for high-
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STATUTES AND LEGISLATIVE HISTORY
803
way purposes. No one seriously con-
tended between 1932 and 1956 that
the Government was breaking faith
with highway users by spending part
of the money from these taxes on non-
highway projects.
Therefore, I respectfully suggest
the need is clear, the funds are avail-
able, I beseech each and everyone of
you to not let this opportunity to put
sanity into our mass transit mess slip
by.
Mr. BINGHAM. Mr. Chairman, the
conclusion is inescapable, on the basis
of the reading of the legislation be-
fore the House, that this Nation is—
and for the indefinite future will be—
fiddling with freeways while our cities
burn. Based upon a commitment made
14 years and more than 40 billion
dollars ago, this legislation proposes
to commit $17 billion more for high-
ways by 1978 with no end in sight.
Was the Congress' 1956 commit-
ment to build highways through the
highway trust fund a commitment
in perpetuity, Mr. Chairman? Is there
to be no pause, no review, no reeval-
uation of this commitment? Will this
commitment never be regarded as ful-
filled and ready for termination?
This legislation certainly suggests
that the answer to those questions is
a resounding "No". While our State
and local governments are dangling by
the last thread keeping them from
bankruptcy, this legislation proposes
to spend another $17 billion on high-
ways by 1978, and even more after
that, based upon the priorities and
commitments of 1956. While we fight
tooth and nail in the Congress to eke
out a few million dollars to keep the
Headstart program going, the legisla-
tion does not even raise the question
of where highways now fit into our
list of total national priorities, let
alone our total transportation prior-
ities. At a time when greater empha-
sis on mass transit systems could
unclog many of our highways and re-
lieve the impending suffocation of our
cities from polluted air, this legisla-
tion takes steps to make Federal
transportation funding more rigid,
rather than more flexible.
Mr. Chairman, we can no longer
tolerate this squandering of such an
immense amount of funds without
any reevaluation or review of our cur-
rent needs and the impact of our
transportation funding mechanisms
upon those needs.
Those who defend uninterrupted
continuation of our current level of
spending for highways argue that we
have a commitment to the public to
use the funds accruing to the highway
trust fund for highway development.
We have had such a commitment and
we have honored it for nearly 20
years. Surely we have now more than
met our obligation to the taxpayer to
improve our highway system. It is
now time to reexamine that commit-
ment and consider what changes in
the use of these funds may be neces-
sary or appropriate.
Certainly no one could argue that
our problems and priorities as a Na-
tion have not changed drastically
since the beginning of the highway
trust fund in 1956. Similarly, the
amount of funds accruing to the trust
fund have changed. They have in-
creased to nearly fourfold since 1956,
from $1.4 billion to over $5 billion in
1970.
As the committee has pointed out in
its report, 1976 represents a major
turning point in our highway pro-
grams. In that year, the Interstate
System will be very near completion,
and many States will find their allo-
cations under the trust fund begin-
ning to decline. The legislation before
the House today proposes to go even
beyond 1976 in its authorizations, and
contains a number of provisions which
make commitments for the post-Inter-
state period. Before we turn that
corner, it seems to me, it is both ap-
propriate and mandatory that we
make some reappraisal of our entire
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804
LEGAL COMPILATION—GENERAL
highway program in relation to other
national needs. I find no evidence in
the committee report or in the rather
extensive hearings conducted on this
legislation, that the Committee on
Public Works has either conducted
such a reappraisal or that it even
envisions one.
I am similarly disturbed that the
Ways and Means Committee has seen
fit to extend the highway trust fund
in this legislation, in effect, through
1978. Given the committee's broad
[p. 38961]
jurisdiction over the trust fund mech-
anism, it is the appropriate body to
conduct such a broad review of our
transportation funding mechanisms,
including full public hearings.
At the appropriate time, I shall of-
fer an amendment which would limit
the extension of authorizations for
interstate highways to 1976, rather
than 1978 as recommended by the com-
mittee in this bill. My amendment
would make the House language con-
sistent with the Senate-passed version
of this legislation, which reflects the
administration position that no au-
thorization should be made beyond
1976 until the 1973 deadline for inter-
state project commitments and the
1972 national transportation needs re-
port are available.
I also intend to offer, at the ap-
propriate time, an amendment to al-
low our spending from the trust fund
to better meet current local needs by
expanding upon the action of the com-
mittee. My amendment would allow
funds from the trust fund to be used
for facilities to serve all mass tran-
sit passengers as recommended by the
committee.
Several provisions of this legisla-
tion constitute definite improvements
over past proposals. The new reloca-
tion assistance authority in this bill,
for example, is most commendable
and long overdue. It provides a great-
er assurance than ever before that
families and businesses displaced by
highways will have comparable re-
placement housing by allowing Fed-
eral highway funds to be used for the
acquisition, rehabilitation, or construc-
tion of such housing where it is not
otherwise available. It is unfortunate,
however, that the committee empha-
sizes highway over human interests
by stipulating that this relocation au-
thority should be used only as a last
resort when necessary to allow a high-
way project to proceed. Clearly, we
should be creating new housing for
families displaced by highways, not
because to fail to do so might stop the
highway, but because the well-being
of such families is as important, and
their needs are as pressing, as any
needs or benefits that might justify
the building of more highways. I
would certainly hope that the Secre-
tary of Transportation will interpret
this provision as liberally as possible
so as to make maximum use of the au-
thority it conveys.
It is also gratifying to see the con-
tinuation of the highway beautifica-
tion program provided for in this bill.
A great deal more needs to be done
to insure scenic enhancement adjacent
to our roads and highways, particu-
larly in the control of such blights as
improperly placed advertising and
junkyards. The committee should cer-
tainly be commended for its support
of highway beautification programs
in the past, and for its provision of
some $47.5 million dollars over the
next 2 years for that purpose. One
could only wish that this amount could
be larger given the importance of
this work.
Beyond the general weaknesses of
this bill, which I have already men-
tioned, there are a number of specific
provisions which, in my judgment, are
particularly inadvisable and which far
outweigh the strengths of the bill. The
environmental protection provisions
-------
STATUTES AND LEGISLATIVE HISTORY
805
of the Highway Act, especially in the
area of air pollution, are most inade-
quate, and this legislation promises
no convincing improvements in that
area. Indeed, the construction of the
roads envisioned hy this legislation
can only contribute to our already
critical air pollution problem, more
than 90 percent of which is directly
attributable to our dependence as a
society on the automobile. This legisla-
tion only increases this dependence
and encourages automobile travel re-
gardless of the environmental conse-
quences.
The language of the bill which pur-
ports to prohibit the impounding or
withholding from obligation of funds
apportioned under the highway pro-
gram is clearly unenforceable. Fur-
thermore, the provision in the same
section which would prohibit any
funds authorized to be appropriated
from the highway trust fund from be-
ing expended by any other depart-
ment or agency of the Federal Gov-
ernment than the Federal Highway
Administration seems to me an un-
necessary and inadvisable step toward
greater rigidity, rather than flexibil-
ity, in the administration of transpor-
tation programs.
I strongly oppose the establishment
of the National Highway Institute
proposed by section 115 of this legis-
lation. While such an institute might
well save State and local- governments
some expense in the training of high-
way officials, and while such officials
would undoubtedly benefit from such
an institute, I feel that the consider-
able expense of such a project cannot
be now justified given other needs
and the likelihood that the operation
of such an institute will only increase
and further institutionalize our na-
tional highway bias.
I share the committee's interest in
achieving a more balanced population
pattern and a more rational land-use
policy. However, I do not feel that it
can be assumed that more highways
are the appropriate device for stimu-
lating new population centers. Little
justification for the program of eco-
nomic growth centering on develop-
ment highways provided in this legis-
lation is contained in the hearings,
and I feel that no such program
should be approved until the 1972
transportation needs study is complete
and more evaluation can be focused
on the appropriate role of highways
in stimulating and serving population
balance. Premature approval of this
new category of highways is likely to
lead to roads that go nowhere and
further desecration of our dwindling
wilderness and sparsely populated
areas.
If my amendments are defeated, as
I fear they will be, I shall vote against
this bill and urge others to do like-
wise.
[p. 38962]
Mr. REID of New York (during the
reading). Mr. Chairman, I ask unani-
mous consent that the amendment be
considered as read and printed in the
RECORD.
The CHAIRMAN. Is there objection
to the request of the gentleman from
New York?
There •was no objection.
Mr. REID of New York. Mr. Chair-
man, my amendment would add new
sections 122 through 127 to the bill
to require State legislatures to estab-
lish local highway planning review
commissions for the purpose of as-
sessing the effect of the proposed
Federal-aid highways upon the over-
all environment, upon parklands, his-
toric sites, wildlife sanctuaries, and
other areas which could be and should
be conserved. Prior approval of the
local commission involved would be
required whenever a proposed high-
way system would pass through or be
contiguous with an area over which
it has jurisdiction. Disapproval by a
commission could be overruled only
by the Secretary of the Interior.
-------
806
LEGAL COMPILATION—GENERAL
Mr. Chairman, I testified in sup-
port of this proposal before the Sub-
committee on Roads on April 21, 1970.
In my judgment, the establishment of
local highway planning review com-
missions is vital for two reasons. It
would guarantee the public the right
of access to all facts relevant to any
proposed Federal-aid highway and
would give local conservationists a
veto over highway design which could
result in the destruction of valuable
resources.
Under existing hearing procedures
pursuant to section 128 of title XXIII,
United States Code, the first hearing
deals with the approval of the loca-
tion within a general service corridor.
The second hearing is a hearing prior
to approving a preliminary design of
a highway in a particular location.
This hearing system, in my judgment,
is defective in that local residents
have no effective voice in the decision;
the hearings sometimes bear little re-
lation to what might actually ma-
terialize in relation to the location
and design; citizens affected by high-
way construction presently have no
right of discovery to highway plans;
and the law requires only that eco-
nomic considerations be discussed in
public hearings.
My amendment would broaden the
issues taken into consideration and
strengthen the influence of local citi-
zens. Basically this amendment would
require State legislatures to create
one or more administrative units to
review proposed highway routes as
they affect the environment.
Each commission could cover a
single county or group of counties
with the State legislature deciding the
appropriate jurisdictional base. Each
local commission would be staffed by
persons with recognized expertise in
the areas of conservation, of natural
resources and of wildlife, preserva-
tion of historic sites, communities,
and landmarks.
Approval of a proposed highway
could be granted or denied by the com-
mission only after provision had been
made for appropriate public hearings
and the review by the commission
would be in addition to that which
the present Highway Act requires to
be conducted by the State highway de-
partment.
In the past, Mr. Chairman, citizens'
groups have encountered major prob-
lems in gaining access to the State
plans and specifications for highway
projects. In my judgment, citizens'
groups should have the right to re-
view all of the technical material rele-
vant to informed decisions.
My amendment, therefore, would
guarantee citizens the right of discov-
ery to essential documents by requir-
ing the State highway department to
submit to the local commission in-
volved copies of surveys, plans, speci-
fications, and estimates for a high-
way project. The commission would
in turn be required to make these
documents available to the public
prior to its hearing, and give the
public an opportunity to question
State highway officials under oath re-
garding the project. This right of dis-
covery is intended to be the same as
that enjoyed by parties to a civil law-
suit in Federal court under the Fed-
eral Rules of Civil Procedure.
Mr. Chairman, in essence I believe
that there are conservation factors
that should be included in any consid-
eration of highway plans and that in-
terested parties should have an op-
portunity to see the relevant docu-
ments.
In essence, Mr. Chairman, until now
corporations, Government agencies,
and roadbuilders have shown shock-
ing disregard for our scenery, wildlife,
natural resources, and historic com-
munities and landmarks. Once a forest
or preserve is destroyed or desecrated
by a highway it is ruined forever.
I urge the adoption of my amend-
ment in order to save from destruc-
tion what remains of our invaluable
-------
STATUTES AND LEGISLATIVE HISTORY
807
natural and historical resources, for
only if we give local conservationists
a voice and a veto over the roadbuild-
ers may we save our environment,
Mr. KOCH. Mr. Chairman, will the
gentleman yield?
Mr. REID of New York. I yield to
the gentleman from New York.
Mr. KOCH. I want to rise in sup-
port of the gentleman's amendment. It
is one which is absolutely necessary.
Conservation groups across the coun-
try support it. I hope it will be adopted.
Mr. REID of New York. I thank
the gentleman.
Mr. HARSHA. Mr. Chairman, I rise
in opposition to this amendment.
I should like to point out that this
amendment was the subject of a bill
considered in committee. There were
extensive hearings on the problem of
the environment, as well as on other
highway matters.
We did consider the subject of this
amendment. The committee, at the
time, felt that an amendment of this
kind was not justified.
I should like to point out to the
Committee that this proposal would
set up a commission totally comprised
of persons who may or may not have
any expertise in highway construction
who would have an absolute veto
power over the construction or build-
ing of a highway.
Furthermore, this amendment would
give to the public the right to examine
all papers and to cross-examine under
oath all State officials with respect
to the matter. This would, in my
judgment, further cloud and com-
plicate an already difficult situation.
I am not out of sympathy with the
end sought to be served. But, in my
opinion, the amendment would delay
and extend the construction of high-
way projects an intolerable length of
time. It could be used obstructively,
rather than constructively. If enacted,
I can foresee more demonstrations and
delays than presently plague the pro-
gram.
I want to make one other point. The
"guts" of this amendment is, I believe,
already incorporated into the law in
the Federal-aid Highway Act and in
Department of Transportation regula-
tions. Let me read section 138, titled
"Preservation of parklands":
It is hereby declared to be the national
policy that special effort should be made to
preserve the natural beauty of the country-
side and public park and recreation lands,
wildlife and waterfowl refuges, and historic
sites. The Secretary of Transportation shall
cooperate and consult with the Secretaries
of the Interior, Housing and Urban Develop-
ment, and Agriculture, and with the States
in developing transportation plans and pro-
grams that include measures to maintain or
enhance the natural beauty of the lands tra-
versed. After the effective date of the Fed-
eral-Aid Highway Act of 1968, the Secretary
shall not approve any program or project
which requires the use of any publicly owned
land from a public park, recreation area, or
wildlife and waterfowl refuge of national,
State, or lo< al significance as determined by
the Federal, State, or local officials having
jurisdiction thereof, or any land from an his-
toric site of national, State, or local signifi-
cance as so determined by such officials un-
less (1) there is no feasible and prudent
alternative to the use of such land, and (2)
such program includes all possible planning
to minimize harm to such park, recreational
area, wildlife and waterfowl refuge, or his-
toric site resulting from such use.
[p. 38974]
We should use every precaution to
protect and enhance our environment.
The above law is designed to do that
and is serving an effective purpose in
that regard. A purpose I wholeheart-
edly subscribe to. Therefore, it is ap-
parent that what the gentleman is try-
ing to get at is already in the law.
Many highway projects are currently
going through a process of inspection
and evaluation by concerned Federal
agencies to make sure that they do not
injure the environment or destroy na-
tional historic sites. I am in sympathy
with the gentleman's desire to protect
our environment. I believe this is
being accomplished under existing law
and regulations.
-------
808
LEGAL COMPILATION—GENERAL
Mr. REID of New York. Will the
gentleman yield on that point?
Hr. HARSHA. Yes.
Mr. REID of New York. If I read
section 138 correctly, it is concerned
solely—and I repeat, solely—with pub-
licly owned lands. The section that
determines it is section 128. Here pub-
lic hearings in the original statute are
only charged with looking at the eco-
nomic effects of such location. There-
fore, I think it should be concerned
with the overall environmental ques-
tion. Beyond that, if I may complete
the sentence, this amendment of mine
permits the Secretary of the Interior
to overrule a local environmental high-
way review commission if it is his
judgment that this should be done. So
the gentleman's statement that the
local commission exercises an absolute
veto is not correct. The Secretary of
the Interior makes the final judgment.
Finally, I say it is not a sustainable
position to say that the public now
has the right to access to certain facts
and figures and it is essential that they
should have this right in a timely
fashion.
The CHAIRMAN. The time of the
gentleman has expired.
Mr. WRIGHT. Mr. Chairman, I rise
in opposition to the amendment.
The gentleman from Ohio (Mr.HAR-
SHA) is precisely correct in saying
that there is no need for this amend-
ment. If Members were listening as
he read from the highway act passed
2 years ago, they know that Congress
already has clearly stipulated there
that the Secretary shall not permit
any of these historic sites, environ-
mentally beautiful, or recreationally
useful areas to be taken for a highway
unless there is no feasible alternative
and every possible step has been taken
to preserve and protect it.
The gentleman from New York, I
am sure, read an old law and intended
to state the facts correctly when he
declared that the requirement of local
hearings applies only to economic and
not to any other considerations. Let
me read to you again from the 1968
Act that this House approved and
which Congress passed 2 years ago.
We ha\e already amended that section
which applies to public hearings so it
requires that those hearings concern
themselves not alone with economic
matters, but I quote to you from the
exact language that we added 2 years
ago:
. . . and social effects of such a location,
its impact on the environment and its con-
sistency with the goals and objectives of such
urban planning as has been promulgated by
the community.
So there is no need for this amend-
ment. Additionally there is no need,
surely, for a further encumbrance on
the right of the State and local high-
way officials to proceed once they have
determined on a feasible route, they
being obviously closer to the local pub-
lic than we are. There is no need to
allow for further long, labyrinthine
corridors of appeals and re-appeals
that could veto and stall and drag
along most interminably these deci-
sions which are so vitally needed.
The third point is that the Secretary
of the Interior does not have one thing
in the world to do with the adminis-
tration of this bill. This bill is admin-
istered by the Secretary of Trans-
portation.
According to the amendment offered
by the gentleman from New York, we
would create a plethora of bureaucracy
with an additional department and an
additional secretary arguing as to
whether or not a certain road should
be built.
For all these reasons I believe this
amendment is not necessary, useful, or
desirable and should be voted down.
Mr. REID of New York. Will the
gentleman yield on the points he
makes?
Mr. WRIGHT. Surely.
Mr. REID of New York. I appre-
ciate the gentleman yielding to me.
The section I was referring to and
-------
STATUTES AND LEGISLATIVE HISTORY
809
which I called the gentleman's atten-
tion to is section 138 of title 23. If he
will look at that section, he will see
it is entitled "Preservation of Park
Lands."
Mr. WRIGHT. If the gentleman will
read that section, he will see that it in-
cludes this language: "or any land
on a historic site of national, State, or
local significance." It says "any" land
and not just public land.
Mr. REID of New York. That is
precisely my point. It says "land re-
lating to a historic site." However, I
feel there must be two points con-
sidered. One is the broadest concern
for the environment. The second—and
this point the gentleman did not ad-
dress himself to, if I understood him
correctly—is that the public should
have timely access to all the rele-
vant facts and figures, including high-
way plans and projections, ecologi-
cal studies, and other matters pertain-
ing to the environment.
The public is now denied that right.
I, personally, wish the gentleman
would address himself to that point.
Mr. WRIGHT. There is nothing in
the existing law or in the present bill
which denies the public access to this
information or deprives the public
from attending hearings. The public is
invited to appear and testify, and
based upon the 1968 Act those hear-
ings are to concern themselves not
alone with economics but with social
effects on such a location, its impact
on the environment, its consistency
with the public goals and objectives
as planned by the community.
Mr. Chairman, I submit the amend-
ment is not necessary; it is redundant,
and in addition to that it creates an
additional bureaucracy that is not
necessary. It creates a possibility of
a local veto by some local agency of
what has already been determined by
the local highway department and
others involved on programs which
should go forward without this type
of interruption.
Mr. VANIK. Mr. Chairman, will
the gentleman yield?
Mr. WRIGHT. I yield to the gentle-
man from Ohio.
Mr. VANIK. Mr. Chairman, I rise
in support of the amendment which
has been offered by the gentleman
from New York (Mr. REID) to require
State legislatures to establish local
highway planning review commissions
for the purpose of assessing the effect
of proposed Pederal-aid highways upon
parklands, historic sites, wildlife sanc-
tuaries, and other areas which should
be conserved. Prior approval of the
local commission involved would be
required whenever a proposed high-
way system would pass through, or
be contiguous with, an area over
which it has jurisdiction; and disap-
proval by a commission could be over-
ruled only by the Secretary of the In-
terior.
This amendment would guarantee
the public the right of access to all
facts relevant to any proposed Fed-
eral-aid highway, and would give local
citizens an opportunity to oppose high-
way designs and plans which would
result in the destruction of irreplace-
able resources.
Citizens' groups in my community
have encountered considerable diffi-
culty in gaining access to plans for
highway projects until they are fully
developed at tremendous public ex-
pense. This amendment would require
that essential plans for a highway
project be available to the public be-
fore the hearing—so that citizens can
adequately question highway officials
on the project.
We cannot permit road builders to
disregard the public interest in our
scenery, wildlife, natural resources,
and historic landmarks. A forest or
tree needlessly desecrated by a high-
way is ruined forever. It cannot be re-
placed.
In my community, an interstate
highway project has been projected
time and again through the Shaker
-------
810
LEGAL COMPILATION—GENERAL
Lakes area of my district—one of the
last virgin forest and lake areas in
our midst. When community protests
reached Gov. James Rhodes of Ohio
last spring, he promised to remove the
project from the Interstate System.
Up to the present, he has not taken
the action which he promised and the
community is again aroused by the
continued threat to an invaluable
natural resource.
This amendment provides a neces-
sary opportunity for the community to
examine plans and proposals before
the commitment is closed on a high-
way plan. It is vital and necessary to
[p. 38975]
preserve the few natural resources
which remain in urban areas.
If these safeguards are not pro-
vided, I will have to vote against this
bill and its unbridled capacity to ruin
our resources and our environment.
The CHAIRMAN. The question is
on the amendment offered by the
gentleman from New York (Mr.
REID).
The amendment was rejected.
AMENDMENT OFFERED BY MR. REID OF
NEW YORK
Mr. REID of New York. Mr. Chair-
man, I offer an amendment.
The CHAIRMAN. Does the gentle-
man's second amendment apply to this
section?
Mr. REID of New York. It does,
Mr. Chairman.
The CHAIRMAN. The Clerk will
report the amendment.
The Clerk read as follows:
Amendment offered by Mr. REID of
New York: Page 31, after line 21,
insert the following new section, and
renumber subsequent sections accord-
ingly:
"BIGHT or DISCOVEBY
"SEC. 122. Section 128, subsection (a), of
Title 23, United States Code, is amended by
adding the following new material at the
end thereof:
" 'The State highway department shall
also certify to the Secretary that the public
was afforded a full opportunity to examine
all relevant papers prior to such hearings
and to question under oath at such hearings
State officials with respect to all matters
relevant to the proposed Federal-aid or In-
terstate highway.' "
Mr. REID of New York. Mr. Chair-
man, I shall be very brief and try and
limit my remarks to about 60 seconds.
The point in the recent colloquy
which has not been made clear is, in
my opinion, the difference in inter-
pretation as to whether or not the en-
vironment is fully considered. The
point in question is not whether the
highway departments deny the local
people the right to be heard, but
whether on the affirmative side an in-
dividual has the right of access to
relevant and necessary State papers,
ecological studies, and other matters
that are appropriate this is not for the
purpose of acting in a delaying fash-
ion, but these matters should be
brought before the Commission for
consideration in a thoughtful, prompt
fashion.
I have talked with David Sive, the
principal attorney for the Sierra Club,
on this point, and he feels that in the
United States there are many in-
stances where many of the facts are
not presented at a hearing.
Mr. Chairman, the essence of this
amendment is to provide a kind of
protection that exists in the Federal
Rules of Civil Procedure to parties in
a civil lawsuit in a Federal court. It
is basically the right of discovery and
the right of the individual to have ac-
cess and the public to have access to
all the facts relevant to the actual con-
struction as well as the environmental
factors.
Mr. KOCH. Mr. Chairman, will the
gentleman yield?
Mr. REID of New York. I yield to
the gentleman from New York.
Mr. KOCH. It serves no purpose, if
we really want to have the public
involved in recommending what should
-------
STATUTES AND LEGISLATIVE HISTORY
811
or should not be done in protecting
the environment, if we refuse to give
them the tools with which to shape
their advice. Every one of us at some
time has recognized deficiencies in a
program and yet not been able to sub-
stantiate that which is wrong because
the needed evidence has been withheld
by some city, State, or Federal agency.
So, Mr. Chairman, I would urge all
my colleagues here in the House that
if we really want to provide the means
to abate pollution in the broadest sense
of the word, and this is a kind of pol-
lution, we give the public the tools it
needs. After all, the public is the
very best watchdog in any matter.
Mr. REID of New York. Mr. Chair-
man, I thank the gentleman for his
comments.
Mr. Chairman, I would only add
this: I think if we are going to make
government work, and if we are going
to give the American people a convic-
tion that they can participate in the
governmental process, and a convic-
tion that the decisions which affect
their lives have been made on the
basis of all relevant factors, then I
think the public is entitled to the right
of discovery on basic environmental
questions and for good cause. I repeat
that this is a right acknowledged by
the most knowledgeable people in this
field and that this right is presently
denied by most States. And I hope the
Congress today will provide that af-
firmative right.
Mr. HARSHA. Mr. Chairman, I
rise in opposition to the amendment.
Mr. Chairman, I would like to point
out to the Committee that many of the
procedures that the gentleman from
New York seeks to open up are gov-
erned by State laws which have estab-
lished different procedures for dealing
with such matters. As to what extent
this proposal would apply to each
State law, I am not really sure. But
I would like to point out that in the
procedures established in a majority
of the States, the public already has
access to design drawings, maps and
location pictures to afford them the
opportunity of determining what kind
of highway is going where.
It is true that there are certain in-
ter-departmental papers that the pub-
lic does not have access to. But under
this amendment, a State highway de-
partment would have to certify to the
Secretary that the public was afforded
a full opportunity to examine all
papers prior to such hearings. At
what point would the public have been
afforded an opportunity to fully ex-
amine all papers prior to the hearings
that the gentleman is calling for?
To permit the entire public to cross
examine every official under oath as
to any matter that is in any way con-
ceivably relevant to the construction
of the highway program, and its pos-
sible effect on the environment, would
surely create a morass of confusion
and delay. It could even result in de-
feating the objectives of our highway
construction program. In all prob-
ability the gentleman makes a valid
point that many State highway pro-
cedures are less than enlightening to
the public. This should certainly put
them on notice to improve their pro-
cedures. However to endeavor to ac-
complish that purpose by this amend-
ment would create far more problems
than it alleviates. I urge the defeat
of this amendment.
The CHAIRMAN. The question is
on the amendment offered by the
gentleman from New York (Mr.
REID).
The amendment was rejected.
[p. 38976]
The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. BROYHILL of Virginia moves to recom-
mit the bill, H.E. 19504, to the Committee on
Public Works.
Mr. MILLS. I move the previous
question on the motion to recommit.
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812
LEGAL COMPILATION—GENERAL
The SPEAKER. Without objection,
the previous question is ordered on
the motion to recommit.
There was no objection.
The SPEAKER. The question is on
the motion to recommit.
The motion to recommit was re-
jected.
The SPEAKER. The question is on
the passage of the bill.
A motion to reconsider was laid on
the table.
*****
FEDERAL-AID HIGHWAY ACT OP 1970
Mr. KLUCZYNSKI. Mr. Speaker,
I ask unanimous consent to take from
the Speaker's table the bill (S. 4418),
authorizing appropriations for the fis-
cal years 1972 and 1973 for the con-
struction of certain highways in ac-
cordance with title 23 of the United
States Code, and for other purposes,
and ask for its immediate considera-
tion.
The Clerk read the title of the
Senate bill.
The SPEAKER. Is there objection
to the request of the gentleman from
Illinois?
Mr. JACOBS. I object.
The SPEAKER. Objection is heard.
[p. 38997]
1.6a(4)(b) Nov. 25: Proceedings vacated, laid on the table,
pp. 39007; 39014
FEDERAL-AID HIGHWAY ACT OF 1970
Mr. KLUCZYNSKI. Mr. Speaker, I
ask unanimous consent to take from
the Speaker's table the bill (S. 4418)
to authorize appropriations for the
fiscal years 1972 and 1973 for the con-
struction of certain highways in ac-
cordance with title 23 of the United
States Code, and for other purposes,
and ask for its immediate considera-
tion in the House.
The Clerk read the title of the
Senate bill.
The SPEAKER. Is there objection
to the request of the gentleman from
Illinois?
There was no objection.
The Clerk read the Senate bill.
MOTION OFFERED BY MB. KLUCZYNSKI
Mr. KLUCZYNSKI. Mr. Speaker, I
offer a motion.
The Clerk read as follows:
Mr. KLUCZYNSKI moves to strike out
all after the enacting clause of S. 4418
and insert in lieu thereof the provi-
sions contained in H.R. 19504, as
passed, as follows:
Strike out all after the enacting
clause, and insert:
*****
[p. 39007]
The motion was agreed to.
The Senate bill was ordered to be
read a third time, was read the third
time and passed.
The title was amended so as to read:
"To authorize appropriations for the
construction of certain highways in
accordance with title 23 of the United
States Code, and for other purposes."
A motion to reconsider was laid on
the table.
A similar House bill (H.R. 19504)
was laid on the table.
Mr. KLUCZYNSKI. Mr. Speaker, I
ask unanimous consent that the House
insist on its amendment to the bill (S.
4418) to authorize appropriations for
the fiscal years 1972 and 1973 for the
construction of certain highways in ac-
cordance with title 23 of the United
States Code, and for other purposes,
and request a conference with the
Senate thereon.
-------
STATUTES AND LEGISLATIVE HISTORY
813
The SPEAKER. Is there objection
to the request of the gentleman from
Illinois? The Chair hears none, and
appoints the following conferees:
Messrs. FALLON, KLUCZYNSKI, ED-
MONDSON, CRAMER, HARSHA, and
CLEVELAND.
[p. 39014]
1.6a(4)(c) Dec. 7: Passed Senate, Senate insists on its amend-
ments and asks for conference, p. 40095
HIGHWAY APPROPRIATIONS
Mr. BYRD of West Virginia. Mr.
President, on behalf of my able senior
colleague, the Senator from West Vir-
ginia (Mr. RANDOLPH), I ask that the
Chair lay before the Senate a message
from the House of Representatives on
H.R. 19504.
The PRESIDING OFFICER (Mr.
GRAVEL) laid before the Senate H.R.
19504, to authorize appropriations for
the construction of certain highways
in accordance with title 23 of the
United States Code, and for other
purposes.
Mr. BYRD of West Virginia. I ask
unanimous consent that the bill be con-
sidered as having been read twice and
that the Senate proceed to its im-
mediate consideration.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. BYRD of West Virginia. Mr.
President, I move that all after the
enacting clause be stricken and that
the language of S. 4418, as it passed
the Senate on October 2, 1970, be sub-
stituted therefor.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
The question is on the engrossment
of the amendment and third reading
of the bill.
The amendment was ordered to be
engrossed and the bill to be read the
third time.
The bill (H.R. 19504) was read the
third time, and passed.
Mr. BYRD of West Virginia. Mr.
President, I move that the Senate in-
sist upon its amendment and request
a conference with the House, and that
the Chair be authorized to appoint
the conferees on the part of the
Senate.
The motion was agreed to; and the
Presiding Office (Mr. GRAVEL) ap-
pointed Mr. RANDOLPH, Mr. JORDAN of
North Carolina, Mr. MONTOYA, Mr.
SPONG, Mr. COOPER, Mr. BOGGS, and
Mr. BAKER conferees on the part of
the Senate.
[p. 40095]
1.6a(4)(d) Dec. 8: Action of House rescinded, passed House,
House disagrees to Senate amendments and agrees to con-
ference, p. 40265
APPOINTMENT OP CONFEREES ON H.R.
19504, FEDERAL-AID HIGHWAY ACT
Mr. KLUCZYNSKI. Mr. Speaker,
I ask unanimous consent to take from
the Speaker's table the bill (H.R.
19504) to authorize appropriations for
the construction of certain highways
in accordance with title 23 of the
United States Code, and for other
purposes, with a Senate amendment
thereto, disagree to the Senate amend-
ment, and agree to the conference
asked by the Senate.
-------
814
LEGAL COMPILATION—GENERAL
The SPEAKER. Is there objection
to the request of the gentleman from
Illinois? The Chair hears none, and
appoints the following conferees:
Messrs. FALLON, KLUCZYNSKI, WRIGHT,
EDMONDSON, CRAMER, HARSHA, and
CLEVELAND.
[p. 40265]
1.6a(4)(e) Dec. 17,18: House agrees to conference report,
pp. 42514-42518
CONFERENCE REPORT ON H.R. 19504,
FEDERAL-AID HIGHWAY ACT OF 1970
Mr. WRIGHT. Mr. Speaker, I call
up the conference report on the bill
(H.R. 19504) to authorize appropria-
tions for the construction of certain
highways in accordance with title 23
of the United States Code, and for
other purposes, and ask unanimous
consent that the statement of the man-
agers on the part of the House be
read in lieu of the report.
The Clerk read the title of the bill.
The SPEAKER. Is there objection
to the request of the gentleman from
Texas?
There was no objection.
The Clerk read the statement.
(For conference report and state-
ment, see proceedings of the House of
December 17, 1970.)
[p. 42514]
Mr. WRIGHT. Mr. Speaker, the con-
ference report we are considering now
is on the Federal-Aid Highway Act of
1970. I think it is accurate to conclude
that this report contains some of the
most significant and far-reaching de-
velopments for the future of the high-
way program since the passage of the
original Interstate Highway Act of
1956.
The report now pending comes be-
fore this body as a result of very care-
ful and very deliberate and in some in-
stances rather difficult considerations
within the conference. For the better
part of three weeks the conferees for
the House met with the conferees of
the other body, and in those inten-
sive conferences I am convinced that
we have worked out a conference re-
port which embodies the best features
both of the House bill and of the bill
enacted by the other body.
The composite legislation embodied
in this report does the following
things, essentially: It agrees to ex-
tend the Interstate System through
the year 1976, and this extension
thereby increases the total authoriza-
tion for the interstate program by an
amount of $9,775,000,000.
In addition to this, the bill extends
the authorization for the regular ABC
programs—the primary, secondary,
and urban programs—through 1972
and 1973 by an amount of $1.1 billion.
The remaining traditional and neces-
sary programs for forest highways,
public lands highways, forest develop-
ment roads and trails, park roads,
parkways, and Indian reservation
roads and bridges are extended for
various amounts which are shown on
page 39 of the conference committee
report.
This legislation also creates for the
first time—and I believe this is worthy
of note—a Federal-aid urban system
to take care of the extremely urgent
problems of the movement of traffic
within the urbanized and congested
areas of our country.
Additionally, the conference report
incorporates the basic House provision
of aid to urban highway public trans-
portation, so that high-speed express
lanes may be provided to link the
-------
STATUTES AND LEGISLATIVE HISTORY
815
fringe parking areas authorized in the
1968 bill and made a permanent part
of the law in this bill, on the perim-
eters of our downtown urban areas, so
that they may be connected with the
downtown hearts of those central cities
by means of preferential bus lanes,
thus encouraging the movement of
more people by that form of mass
transportation and curtailing the glut
and congestion that is so often found
in our cities.
The conference report contains other
important features, among which is
the authorization of a 2-year period
for funding the highway safety pro-
gram partially out of the highway
trust fund. This was, quite frankly,
a compromise reached between the
Senate position and the House posi-
tion. It was agreed that the portion of
the highway safety program already
authorized in existing law could be
funded to the extent of two thirds
from the highway trust fund, with
the other one-third of that cost com-
ing from appropriated funds.
The House position on economic
growth center development highways
—so as to aid in the disperal of popu-
lation and the decentralization of in-
dustry out into those areas capable
of absorbing them, areas which are
not yet glutted beyond endurance by
pollution and overcrowding—is pre-
served and protected within the con-
ference committee report. This in my
opinion is one of the most innovative
features of the bill. It was a House
initiative, sponsored originally by the
gentleman from California (Mr. DON
H. CLAUSEN).
Also, the National Highway In-
stitute, which was authorized in the
House bill, is preserved in the con-
ference report. This was an original
idea fostered by the gentleman from
Oklahoma (Mr. EDMONDSON). We be-
lieve that this is an excellent feature
for training those who in the future
will handle this ever-increasingly so-
phisticated program of highway con-
struction.
[p. 42515]
Mr. STEIGER of Wisconsin.
As I understand what was done,
due to the fact that there was no com-
parable House provision, you have then
taken what seems to be a more lengthy
procedure and in more detail and end
up with a sentence—and I am asking
this question to try and get some un-
derstanding as to what is meant—re-
quiring that the certification of the
hearings be accompained by a report
indicating the consideration given to
the economic, social, environmental,
and other impacts of the plan, high-
way location, and the design and the
various alternatives raised at the hear-
ings or otherwise considered by the
certifying officer.
Mr. WRIGHT. As the gentleman
will recall, there was some question
about this on the floor of the House
during our consideration of this bill,
in which some Members expressed con-
cern that some of the social and en-
vironmental questions involved would
not be given adequate consideration,
even though public hearings were held.
As the gentleman is aware, the exist-
ing law requires the holding of hear-
ings and requires that those hearings
should take into account certain fac-
tors including those named here. If
I understand correctly the concern
that has been expressed by some Mem-
bers on both sides of the aisle, they
fear that public hearings might be
held and yet nobody might not come
forward with valid data concerning
these particular considerations.
It was the effort of the conferees
to embody in the law a requirement
that upon completion of the hearings
they be accompanied by a report cer-
tifying that these matters had been
taken into account.
Mr. STEIGER of Wisconsin. Mr.
Speaker, I appreciate very much the
explanation given by the gentleman
-------
816
LEGAL COMPILATION—GENERAL
from Texas on that. I might say that
I think that this one provision at least
is certainly a step into the right direc-
tion, and I would hope would be
handled appropriately by the State
agencies and by the Federal Depart-
ment of Transportation in an effort to
give consideration to these other fac-
tors.
[p. 42516]
The SPEAKER pro tempore. The
question is on the conference report.
The question was taken; and the
Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HARSHA. Mr. Speaker, I ob-
ject to the vote on the ground that a
quorum is not present and make the
point of order that a quorum is not
present.
The SPEAKER pro tempore. Evi-
dently a quorum is not present.
The Doorkeeper will close the doors,
the Sergeant-at-Arms will notify ab-
sent Members, and the Clerk will call
the roll.
The question was taken; and there
were— yeas 319, nays 11, not voting
103,***.
[p. 42517]
*****
So the conference report was agreed
[p. 42518]
to.
1.6a(4)(f) Dec. 19: Senate agrees to conference report,
pp. 42717, 42723
Mr RANDOLPH.
*****
One of the most important sections
of the report improves the machinery
to make the highway program more
responsive to public needs and wishes.
The Senate considered improvements
in the public hearing process to be a
central feature of this year's highway
legislation, and I am glad to report
that our approach generally was
adopted by the conference.
Public hearings are now required on
both the location and design of new
Federal-aid highways. The conferees
agreed on provisions requiring that
reports to the Secretary of Trans-
portation on the consideration given
to economic, social, and environmental
aspects of highway construction raised
at the public hearings be filed follow-
ing all public hearings.
This, I believe, will lead to a more
effective critical analysis and consid-
eration of proposals raised at hear-
ings. It should do much to answer
persistent public criticism that little
or no attention is given to questions
raised at hearings. Through this sec-
tion we can be sure that in the hear-
ing process, the appearance of fair-
ness is buttressed by the reality of
fairness.
Provisions to improve consideration
of economic, social, environmental and
other impacts in highway design and
construction were expanded by the
conferees to implement our belief that
highways should enhance communities
rather than degrade them. Proper de-
sign and engineering practices can, in
many instances, avoid, overcome or
minimize adverse impacts on people
and their surrounding environments.
In direct response to an extremely
troublesome problem, the report calls
for the issuance of guidelines to con-
trol soil erosion in connection with
highway construction projects. This
action expands provisions of the 1966
Highway Act which required consul-
tation between the Departments of
Transportation and Agriculture on
developing such guidelines. Far too
-------
STATUTES AND LEGISLATIVE HISTORY
817
many highway projects result in un-
controlled water runoff that spreads
silt over large areas and clogs
streams, damage that can be pre-
vented through the employment of
sound conservation practices.
The report directs the Secretary to
promulgate guidelines to assure that
all possible adverse economic, social,
and environmental aspects of road-
building be fully considered and that
plans, specifications, and estimates in-
clude the best engineering methods of
avoiding them. This section when ful-
ly implemented will establish the
proper responsibility of highway
builders in protecting our environ-
ment and people. It also requires that
noise level standards be established
and highways be constructed in con-
formity with them.
In addition, the conference report
assures the implementation of the
ambient air standards of the Clean
Air Act.
*****
[p. 42717]
Mr. RANDOLPH. Mr. President, I
move adoption of the conference re-
port.
The motion was agreed to.
*****
[p. 42723]
-------
818 LEGAL COMPILATION—GENERAL
1.7 AIRPORT AND AIRWAY DEVELOPMENT ACT
49 U.S.C. §§1712(f), 1716(c)(4), (e) (1970)
§ 1712. National airport systems plan—Formulation
Consultation concerning environmental changes
(f) In carrying out this section, the Secretary shall consult with
and consider the views and recommendations of the Secretary of
the Interior, the Secretary of Health, Education, and Welfare, the
Secretary of Agriculture, and the National Council on Environ-
mental Quality. The recommendations of the Secretary of the Inte-
rior, the Secretary of Health, Education, and Welfare, the Secre-
tary of Agriculture, and the National Council on Environmental
Quality, with regard to the preservation of environmental quality,
shall, to the extent that the Secretary of Transportation deter-
mines to be feasible, be incorporated in the national airport sys-
tem plan.
*******
Pub.L. 91-258, Title I, § 13, May 21,1970, 84 Stat. 224.
§ 1716. Project applications for airport development—Submis-
sion
*******
Approval
(c) (1) All airport development projects shall be subject to the
approval of the Secretary, which approval may be given only if he
is satisfied that—
(A) the project is reasonably consistent with plans (exist-
ing at the time of approval of the project) of planning agen-
cies for the development of the area in which the airport is
located and will contribute to the accomplishment of the pur-
poses of this subchapter;
(B) sufficient funds are available for that portion of the
project costs which are not to be paid by the United States
under this subchapter;
(C) the project will be completed without undue delay;
(D) the public agency or public agencies which submitted
the project application have legal authority to engage in the
airport development as proposed; and
(E) all project sponsorship requirements prescribed by or
under the authority of this subchapter have been or will be
met.
No airport development project may be approved by the Secretary
with respect to any airport unless a public agency holds good title,
satisfactory to the Secretary, to the landing area of the airport or
-------
STATUTES AND LEGISLATIVE HISTORY 819
the site therefor, or gives assurance satisfactory to the Secretary
that good title will be acquired.
(2) No airport development project may be approved by the
Secretary which does not include provision for installation of the
landing aids specified in subsection (d) of section 1717 of this title
and determined by him to be required for the safe and efficient use
of the airport by aircraft taking into account the category of the
airport and the type and volume of traffic utilizing the airport.
(3) No airport development project may be approved by the
Secretary unless he is satisfied that fair consideration has been
given to the interest of communities in or near which the project
may be located.
(4) It is declared to be national policy that airport development
projects authorized pursuant to this subchapter shall provide for
the protection and enhancement of the natural resources and the
quality of environment of the Nation. In implementing this policy,
the Secretary shall consult with the Secretaries of the Interior and
Health, Education, and Welfare with regard to the effect that any
project involving airport location, a major runway extension, or
runway location may have on natural resources including, but not
limited to, fish and wildlife, natural, scenic, and recreation assets,
water and air quality, and other factors affecting the environment,
and shall authorize no such project found to have adverse effect
unless the Secretary shall render a finding, in writing, following a
full and complete review, which shall be a matter of public record,
that no feasible and prudent alternative exists and that all possi-
ble steps have been taken to minimize such adverse effect.
Hearings
(d) (1) No airport development project involving the location
of an airport, an airport runway, or a runway extension may be
approved by the Secretary unless the public agency sponsoring the
project certifies to the Secretary that there has been afforded the
opportunity for public hearings for the purpose of considering the
economic, social, and environmental effects of the airport location
and its consistency with the goals and objectives of such urban
planning as has been carried out by the community.
(2) When hearings are held under paragraph (1) of this
subsection, the project sponsor shall, when requested by the Secre-
tary, submit a copy of the transcript to the Secretary.
Air and water quality
(e) (1) The Secretary shall not approve any project application
for a project involving airport location, a major runway exten-
sion, or runway location unless the Governor of the State in which
-------
820 LEGAL COMPILATION—GENERAL
such project may be located certifies in writing to the Secretary
that there is reasonable assurance that the project will be located,
designed, constructed, and operated so as to comply with applica-
ble air and water quality standards. In any case where such stand-
ards have not been approved or where such standards have been
promulgated by the Secretary of the Interior or the Secretary of
Health, Education, and Welfare, certification shall be obtained
from the appropriate Secretary. Notice of certification or of re-
fusal to certify shall be provided within sixty days after the pro-
ject application is received by the Secretary.
(2) The Secretary shall condition approval of any such project
application on compliance during construction and operation with
applicable air and water quality standards.
*******
Pub.L. 91-258, Title I, § 16, May 21, 1970, 84 Stat. 226.
-------
STATUTES AND LEGISLATIVE HISTORY 821
1.7a AIRPORT AND AIRWAY DEVELOPMENT ACT
OF 1970
May 12, 1970, P.L. 91-258, §12(f), 16(c)(4), (e), 84 Stat. 221, 226
SEC. 12. NATIONAL AIRPORT SYSTEM PLAN
*******
(f) CONSULTATION CONCERNING ENVIRONMENTAL CHANGES.—
In carrying out this section, the Secretary shall consult with and
consider the views and recommendations of the Secretary of the
Interior, the Secretary of Health, Education, and Welfare, the
Secretary of Agriculture, and the National Council on Environ-
mental Quality. The recommendations of the Secretary of the Inte-
rior, the Secretary of Health, Education, and Welfare, the Secre-
tary of Agriculture, and the National Council on Environmental
Quality, with regard to the preservation of environmental quality,
shall, to the extent that the Secretary of Transportation deter-
mines to be feasible, be incorporated in the national airport sys-
tem plan.
*******
[p. 222]
SEC. 16. SUBMISSION AND APPROVAL OP PROJECTS FOR AIRPORT
DEVELOPMENT.
*******
(c) APPROVAL.—
(1) All airport development projects shall be subject to the
approval of the Secretary, which approval may be given only if he
is satisfied that—
(A) the project is reasonably consistent with plans (existing
at the time of approval of the project) of planning agencies for
the development of the area in which the airport is located and
will contribute to the accomplishment of the purposes of this part;
(B) sufficient funds are available for that portion of the
project costs which are not to be paid by the United States under
this part;
(C) the project will be completed without undue delay;
(D) the public agency or public agencies which submitted the
project application have legal authority to engage in the airport
development as proposed; and
(E) all project sponsorship requirements prescribed by or
under the authority of this part have been or will be met. No
airport development project may be approved by the Secretary
with respect to any airport unless a public agency holds good title,
-------
822 LEGAL COMPILATION—GENERAL
satisfactory to the Secretary, to the landing area of the airport or
the site therefor, or gives assurance satisfactory to the Secretary
that good title will be acquired.
(2) No airport development project may be approved by the
Secretary which does not include provision for installation of the
landing aids specified in subsection (d) of section 17 of this part
and determined by him to be required for the safe and efficient use
of the airport by aircraft taking into account the category of the
airport and the type and volume of traffic utilizing the airport.
(3) No airport development project may be approved by the
Secretary unless he is satisfied that fair consideration has been
given to the interest of communities in or near which the project
may be located.
(4) It is declared to be national policy that airport development
projects authorized pursuant to this part shall provide for the
protection and enhancement of the natural resources and the qual-
ity of environment of the Nation. In implementing this policy, the
Secretary shall consult with the Secretaries of the Interior and
Health, Education, and Welfare with regard to the effect that any
project involving airport location, a major runway extension, or
runway location may have on natural resources including, but not
limited to, fish and wildlife, natural, scenic, and recreation assets,
water and air quality, and other factors affecting the environment,
and shall authorize no such project found to have adverse effect
unless the Secretary shall render a finding, in writing, following a
full and complete review, which shall be a matter of public record,
that no feasible and prudent alternative exists and that all possi-
ble steps have been taken to minimize such adverse effect.
(d) HEARINGS.—
(1) No airport development project involving the location of an
airport, an airport runway, or a runway extension may be ap-
proved by the Secretary unless the public agency sponsoring the
project certifies to the Secretary that there has been afforded the
opportunity for public hearings for the purpose of considering the
economic, social, and environmental effects of the airport location
and its consistency with the goals and objectives of such urban
planning as has been carried out by the community.
[p. 227]
(2) When hearings are held under paragraph (1) of this
subsection, the project sponsor shall, when requested by the Secre-
tary, submit a copy of the transcript to the Secretary.
(e) AIR AND WATER QUALITY.—
-------
STATUTES AND LEGISLATIVE HISTORY 823
(1) The Secretary shall not approve any project application for
a project involving airport location, a major runway extension, or
runway location unless the Governor of the State in which such
project may be located certifies in writing to the Secretary that
there is reasonable assurance that the project will be located,
designed, constructed, and operated so as to comply with applica-
ble air and water quality standards. In any case where such stand-
ards have not been approved or where such standards have been
promulgated by the Secretary of the Interior or the Secretary of
Health, Education, and Welfare, certification shall be obtained
from the appropriate Secretary. Notice of certification or of re-
fusal to certify shall be provided within sixty days after the
project application is received by the Secretary.
(2) The Secretary shall condition approval of any such project
application on compliance during construction and operation with
applicable air and water quality standards.
(f) AIRPORT SITE SELECTION.—
(1) Whenever the Secretary determines (A) that a metropoli-
tan area comprised of more than one unit of State or local govern-
ment is in need of an additional airport to adequately meet the air
transportation needs of such area, and (B) that an additional
airport for such area is consistent with the national airport sys-
tem plan prepared by the Secretary, he shall notify, in writing,
the governing authorities of the area concerned of the need for
such additional airport and request such authorities to confer,
agree upon a site for the location of such additional airport, and
notify the Secretary of their selection. In order to facilitate the
selection of a site for an additional airport under the preceding
sentence, the Secretary shall exercise such of his authority under
this part as he may deem appropriate to carry out the provisions
of this paragraph. For the purposes of this subsection, the term
"metropolitan area" means a standard metropolitan statistical
area as established by the Bureau of the Budget, subject however
to such modifications and extensions as the Secretary may deter-
mine to be appropriate for the purposes of this subsection.
(2) In the case of a proposed new airport serving any area,
which does not include a metropolitan area, the Secretary shall not
approve any airport development project with respect to any pro-
posed airport site not approved by the community or communities
in which the airport is proposed to be located.
*******
[p. 228]
-------
824 LEGAL COMPILATION—GENERAL
1.7a(l) HOUSE COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
H.R. REP. No. 91-601, 91st Cong., 1st Sess. (1969)
AVIATION FACILITIES EXPANSION AND
IMPROVEMENT
OCTOBER 27, 1969.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed.
Mr. STAGGERS, from the Committee on Interstate and Foreign
Commerce, submitted the following
REPORT
together with
SEPARATE VIEWS
[To accompany H.R. 14465]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (H.R. 14465) to provide for the expansion
and improvement of the Nation's airport and airway system, for
the imposition of airport and airway user charges, and for other
purposes, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
As set forth in more detail later in this report, the revenue
provisions of the legislation were considered by the Committee on
Ways and Means. That committee has recommended the provi-
sions contained in title II of the reported bill and furnished the
description of those provisions for inclusion in this report.
PURPOSE OF LEGISLATION
The principal purpose of this legislation is to provide for the
expansion and improvement of the Nation's airport and airway
system. In substantial part, this purpose is to be achieved through
the imposition and application of airport and airway user charges.
COMMITTEE ACTION
H.R. 12374 was introduced at the request of the administration.
Similar legislation had been under consideration by Congress, the
previous administration, and the several segments of the aviation
[p.l]
-------
STATUTES AND LEGISLATIVE HISTORY 825
industry for several years. This bill and comparable bills related
to the expansion and improvement of the Nation's airport and
airway system were the subject of public hearings before the
Committee of Interstate and Foreign Commerce commencing on
July 21, 1969, and concluding on September 10, 1969. In all, there
were 11 public sessions and a printed record of some 773 pages
was compiled.
Beginning on September 13 and concluding on October 23, the
committee conducted 13 executive sessions, and a substantial ma-
jority of the committee members attended these sessions and ac-
tively participated in the markup of the legislation. The foregoing
reflects the committee's determination that this is a highly impor-
tant and far-reaching bill which when enacted into law will affect
the lives of most, if not all Americans.
In the course of the public hearings, testimony and statements
were received from virtually all Government and non-Government
segments of air transportation. A list of the organizations repre-
sented appears on page 8 of the hearings. This list is representa-
tive of all private and public ground and air interests in the
Nation's air transportation system. It includes local, State and
national governmental interests, as well as the interests of airport
operators, private pilots, commercial pilots, aircraft manufactur-
ers, and the air lines. Without exception, all of the witnesses who
appeared before the committee favored a program to advance
aviation facilities. The difficulty facing the committee was not one
of whether a new and expanded program should be created, but
rather one of just what form the program should take. The com-
mittee, in its executive sessions, considered carefully not only the
bill as introduced, but also the numerous proposed amendments to
the bill. Among the major items considered were the following:
(1) whether or not the Federal treasury should contribute to
the costs of airport terminal buildings;
(2) whether or not the Federal Government should obligate
itself to long term debt;
(3) whether or not the States, as contrasted to the local
communities, should assume a greater role in airport development;
(4) whether or not a provision for certification of airports
should be included in the act;
(5) whether or not a provision with respect to air pollution
from aircraft emissions should be included in the act.
Of the foregoing, the committee determined to follow the exist-
ing law with respect to the exclusion of Federal contributions to
terminal building costs. The committee also determined not to
-------
826 LEGAL COMPILATION—GENERAL
obligate the Federal Government to long term debt. The committee
adhered to the proposals advanced in the introduced bill as to the
role of the individual States in airport development, but rejected a
proposed amendment to increase that role beyond that recom-
mended in the introduced bill. As to airport certification—this has
been a controversial question for some time—the committee
adopted an amendment to require such certification. The air pollu-
tion proposal was rejected by the committee.
Subsequent to full and careful consideration by the committee,
the chairman introduced a clean bill, H.R. 14465, which was unan-
imously reported on October 23, 1969.
[p. 2]
Environmental quality
In the expansion and improvement of the Nation's airport and
airway system, a special effort must be made to achieve compati-
bility with the quality of the environment. The development of
essential aviation facilities is vitally important, but so, too, is the
preservation of the Nation's natural resources. Some conflicts are
inevitable, but with suitable care a sound balance can be achieved.
The bill recognizes the desirability of close and regular consulta-
tion between the Department of Transportation and other Federal
agencies in achieving this balance. The bill requires that the
Transportation Secretary is to consult with and consider the views
and recommendations of the Secretary of the Interior, the Secre-
tary of Health, Education, and Welfare, and the Secretary of
Agriculture with regard to the preservation of environmental
quality and, to the extent he deems feasible, their recommenda-
tions are required to be incorporated in the national airport sys~
tern plan.
In addition, in reviewing plans for airport development the
Secretary of Transportation is to consult with the other Secretar-
ies about the environmental implications. If, following this con-
sultation, it is found there would be an adverse effect on the
environment he is to grant his approval only if he finds, after full
examination, that no feasible and prudent alternative exists and
that all possible steps have been taken to minimize such adverse
effect. The responsibility thus vested in the Secretary of Transpor-
tation with respect to airport development is comparable to that
contained in section 4(f) of Public Law 89-670, the Department
of Transportation Act. The reported bill reflects the concern of the
Congress with respect to the attention that must be given to the
environment in the conduct of transportation programs.
-------
STATUTES AND LEGISLATIVE HISTORY 827
The committee does not intend that this legislation supersede or
in any way diminish the enforcement of any provision of existing
law relating to the preservation of our natural resources or relat-
ing to the protection of environmental quality.
[P. 11]
NATIONAL AIRPORT SYSTEM PLAN
Section 12 of the reported bill is similar in many respects to
existing law. It directs the Secretary to publish within 2 years of
the date of enactment of the bill, and thereafter to review and
revise as necessary, a national airport system plan setting forth,
for at least a 10-year period, the airport development necessary to
provide a system of public airports adequate to anticipate and
meet the needs of civil aeronautics, to meet requirements in sup-
port of the national defense, as determined by the Secretary of
Defense, and to meet special needs of the postal service. As men-
tioned above in the discussion of the definitions in section 11, the
airport planning conducted under section 12 would include termi-
nal area requirements as well as projects eligible for grants-in-aid.
This is an expansion of the planning functions carried out under
existing law. Section 12 directs the Secretary in formulating the
plan, to the extent feasible, to consult with the Civil Aeronautics
Board, the Post Office Department, the Federal Communications
Commission, the Department of Defense, the Secretary of the
Interior, the Federal Power Commission, and other Federal agen-
cies as appropriate, and with agencies designated by the States
under section 22 of the bill, with comprehensive planning agen-
cies, and with airport operators, air carriers, and others in the
aviation industry. The Secretary is expected to consult as directed
by this section. The phrase "to the extent feasible" is intended to
apply only to the degree of consultation. It is not intended to give
the Secretary discretion to avoid consultation.
Under section 12 (f) of the reported bill, the Secretary is re-
quired to incorporate in the plan, to the extent that he determines
it to be feasible, recommendations of the Secretary of the Interior,
the Secretary of Health, Education, and Welfare, and the Secre-
tary of Agriculture with regard to the preservation of environ-
mental quality. The Secretary, in preparing and publishing the
national airport system plan, is required to follow the national air
system guidelines developed by the National Air System Guide-
lines Commission established in section 12 (h). The Commission
which would be composed of nine members appointed by the Presi-
-------
828 LEGAL COMPILATION—GENERAL
dent from private life also would formulate guidelines for land
uses surrounding airports, for ground access to airports, and for
airways, air service, and aircraft compatible with the national
airport system plan.
Members of the Commission would be selected from among rep-
resentatives of the various segments of the aviation industry and
three major organizations concerned with conservation or regional
planning. It is not intended that a representative of each named
group must be appointed to the Commission. The President is free
to select from among those listed. The Commission is required to
submit to the President and to the Congress on or before January
1, 1971, a final report containing the guidelines it has formulated.
The bill authorizes the appropriation from the airport and airway
trust fund of sums not to exceed $2 million, as may be necessary
to support the activities of the Commission. The Commission will
cease to exist 60 days after filing its final report.
[p. 19]
SUBMISSION AND APPROVAL OF PROJECTS FOR AIRPORT DEVELOP-
MENT
Section 16 of the reported bill sets forth guidelines and proce-
dures for the submission and approval of projects for airport
development. In large part, these procedures are identical to those
set forth in existing law. Project applications may not propose
airport development now included in the current national airport
system plan. Also, all proposed development is to be in accordance
with technical standards issued to the Secretary. Before he ap-
proves a project, the Secretary must be satisfied that certain proj-
ect sponsorship requirements have been and will be met, that the
project includes provision, as appropriate, for the installation of
landing aids specified in section 17(d), and that fair consideration
has been given to the interests of communities in or near which
the project may be located.
The reported bill includes a requirement that the Secretary con-
sult with the Secretaries of Interior and Health, Education, and
Welfare with regard to the effect that projects for airport develop-
ment might have on natural resources and factors affecting the
environment. The Secretary is not to authorize a project found to
have an adverse effect in these areas unless he makes a finding in
writing (which is required to be a matter of public record), that
no possible and prudent alternative exists and that all possible
steps have been taken to minimize the adverse effect. The full and
-------
STATUTES AND LEGISLATIVE HISTORY 829
complete review required to be made by the Secretary prior to his
written finding does not mean that public hearings are required.
[p. 22]
Another change made to the procedures for the approval of
airport development projects was to require that the project spon-
sor certify to the Secretary that the opportunity for public hear-
ings have been afforded for the purpose of considering the eco-
nomic, social, and environmental effects of the airport location and
its consistency with the goals of such urban planning as has been
carried out by the community. Under existing law the Secretary is
required, upon the request of any person having substantial inter-
est in the matter, to conduct a public hearing respecting the loca-
tion of any proposed airport development. Under the provision
reported by the committee, the Secretary would be relieved of that
requirement. However, while the project sponsor would be respon-
sible for insuring that the opportunity for hearings is afforded,
there is no requirement that the sponsor always hold the hearings
itself. Whenever hearings are held, the Secretary may require the
sponsor to furnish a copy of the transcript. Under the general
powers granted to the Secretary by section 28 of the reported bill,
he has ample authority to prescribe procedures and regulations to
carry out this provision.
One further major change made by the committee respecting
the procedure for the selection of sites for airports is contained in
section 16 (e). This section provides that when the Secretary de-
termines that a metropolitan area comprised of more than one
unit of State or local government is in need of an additional
airport, he shall notify the governing authorities of the area con-
cerned and request that those authorities agree upon a site for the
location of the airport. If, within 3 years of the notification, the
governing authorities do not notify the Secretary of the selection
of a site, the Secretary shall select a site himself. Unless the
Secretary, after notice and opportunity for hearing, modifies the
site location, no other site in the particular area shall be eligible
for assistance under this legislation for the construction of an
additional airport in the area.
This section also provides that in the case of a proposed new
airport serving any area, which does not include a metropolitan
area, the Secretary shall not approve any airport development
project with respect to any proposed airport site not approved by
the community or communities in which the airport is proposed to
be located.
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830 LEGAL COMPILATION—GENERAL
For the purposes of this section, the term "metropolitan area"
is denned as a standard metropolitan statistical area as estab-
lished by the Bureau of the Budget, subject to such modification as
the Secretary may determine to be appropriate.
[p. 23]
SEPARATE VIEWS ON H.R. 14465 REGARDING POLLUTION
OF THE AIR BY AIRCRAFT
During committee consideration of H.R. 14465, which would
provide for the expansion and improvement of the Nation's air-
port and airway system, an amendment was offered which would
direct the Administrator of the Federal Aviation Administration,
after consultation with the Secretary of Transportation, the Sec-
retary of Health, Education, and Welfare, and the National Air
Pollution Control Administration, to prescribe standards for pol-
lution of the air by aircraft and to prescribe rules and regulations
necessary for control of air pollution by aircraft.
The committee, by one vote, failed to adopt the proposed amend-
ment.
The principal argument advanced by opponents of the amend-
ment was that some States or communities may wish to establish
their own pollution standards for aircraft and that such standards
may be more strict than standards promulgated by the Adminis-
trator of the Federal Aviation Administration.
While some States and communities do experience more prob-
lems than others with respect to pollution from aircraft engines,
that argument does not take into consideration the fact that con-
trol of pollutants emanating from aircraft engines is inextricably
related to the safety requirements of the engines and the aircraft
on which they are used.
We do not believe that the safety of passengers should be endan-
gered by permitting various States and communities to set pollu-
tion standards when these same States and communities do not
possess the knowledge or expertise to assess the safety factors
which must also be considered.
The final responsibility for control of pollution from aircraft
must be vested in the individual who has the final responsibility
for authority safety—the Federal Aviation Administrator. With
his authority established, appropriate consultation with State
agencies would then be established in the formulation of pollution
control standards and rules.
The present state of the art of pollution control permits us to
move rapidly against this problem at the present time, but we
-------
STATUTES AND LEGISLATIVE HISTORY 831
should move uniformly and safely in our efforts to curb aircraft
pollution. As other antipollution techniques develop, the Federal
Aviation Administration should have the authority to implement
these improvements knowing that safety is a necessary considera-
tion and knowing that the agency possesses the ability to review
all aspects of the matter.
JOHN D. DINGELL,
PAUL G. ROGERS,
RICHARD L. OTTINGER,
CLARENCE J. BROWN,
FLETCHER THOMPSON.
[p. 94]
1.7a(2) SENATE COMMITTEE ON COMMERCE
S. REP. No. 91-565, 91st Cong., 1st Sess. (1969)
AIRPORT AND AIRWAYS DEVELOPMENT ACT OF 1969
DECEMBER 5, 1969.—Ordered to be printed
Mr. MAGNUSON, from the Committee on Commerce,
submitted the following
REPORT
[To accompany S. 3108]
The Committee on Commerce to which was referred the bill (S.
3108) to provide additional Federal assistance in connection with
the construction, alteration, or improvement of the airway system,
air carrier and general purpose airports, airport terminals, and
related facilities, and for other purposes, having considered the
same, reports favorably thereon with an amendment and recom-
mends that the bill as amended do pass.
EXPLANATION OF THE AMENDMENT
The committee amendment to S. 3108 strikes all after the enact-
ing clause and provides an entirely new bill.
This procedure was utilized because the committee approved
many substantive and technical amendments to S. 3108 before
ordering it reported and it was felt that such a substitute would
provide a far more readily understandable report. The amendment
is explained in its entirety in the section-by-section analysis, the
summary, and in the committee recommendations which follow.
-------
832
LEGAL COMPILATION—GENERAL
SECTION-BY-SECTION ANALYSIS
OF THE BILL
Section 1. Short title.—This section
provides that the legislation may be
cited as the "Airport and Airways
Development Act of 1969."
Section 2. Declaration of purpose.—
This section sets forth the finding of
Congress that the Nation's airport
and airways system is inadequate to
meet current and projected growth in
aviation; that the civil users of air
transportation are capable of making
a greater contribution to the expan-
sion and improvement of the system
through increased user fees but that
revenues obtained from the general
taxpayer will continue to be required
to pay for the actual use of the system
by the U.S. Government and for the
value to the national defense and the
general public in having a safe, effi-
cient system in being and fully oper-
ational in the event of war or national
emergency.
ENVIRONMENT PROTECTION
The Committee is concerned that airport development proceed
with all due caution and concern for protection of the environ-
ment. Factors such as noise, air and water pollution, site selection
consonant with the environmental surroundings and preservation
of natural beauty should be taken into account.
Section 206 (d) (3) of this bill requires that the Secretary shall
not approve any project application unless and until he is satisfied
that fair consideration has been given to the preservation and
enhancement of the environment and to the interest of communi-
ties in or near which the project may be located. In addition, the
bill requires that legal notice be given, in the Federal Register, of
the pendency of any project application in order that all project
applications become a matter of public record.
The Committee bill retains the provisions for public hearings
provided in the Federal Airport Act of 1946.
The Committee believes that should any project application for
airport development assistance be objected to by any party with
interest in the matter, the Secretary must have the primary re-
sponsibility to see to it that a fair and impartial hearing is af-
forded to ensure that the rights of all interested parties will be
protected.
[p. 36]
NOISE
No master plan of future aviation development would be com-
plete without provisions for the abatement of aircraft noise. Re-
search would be continued on quieter engines, further study would
-------
STATUTES AND LEGISLATIVE HISTORY 833
be made on improved noise abatement takeoff and approach proce-
dures, and research would be continued on developing standards
for land use planning.
[p. 53]
Environmental Considerations.—Sections 12 (c), 12 (f), and
16(c) (4) deal with environmental factors to be considered in the
development of the National Airport System Plan and in the ap-
proval of each airport development project. The Department rec-
ommends a substitute subsection to replace these provisions.
Section 4(f) of the Department of Transportation Act requires
the Secretary of Transportation to consult with the Secretaries of
Interior, Housing and Urban Development, and Agriculture, and
with the states in developing transportation plans and programs
that include measures respecting the environment. Under that sec-
tion, the Secretary may not approve a program or project involv-
ing use of certain park lands unless he determines that there is no
"feasible and prudent alternative" and that all possible program
planning has been done to minimize environmental impact. We
believe that section 12(c), respecting consultation with the De-
[p. 57]
partment of Interior regarding environmental factors, and section
12(f), requiring consultation and consideration of the views and
recommendations of the Secretaries of Interior, Health, Education,
and Welfare, and Agriculture, respecting preservation of environ-
mental quality, largely duplicate the provisions of section 4(f).
Section 16 (c) (4), however, would go considerably beyond section
4(f) to require project-by-project consultation with the Secretar-
ies of Interior and Health, Education, and Welfare, regardless of
the size or environmental importance of the particular undertak-
ing. This poses a serious administrative problem and is likely to
involve the Department of Transportation and the other agencies
in a time-consuming review of many minor projects.
Therefore, the Department would recommend the following
amendments to H.R. 14465:
1. On page 9, lines 11-13, strike out the words "the Department
of Interior regarding conservation and natural resource values,".
2. On page 10, beginning with line 14, strike out all through the
end of line 24 on that page, and substitute the following:
"(f) CONSULTATION CONCERNING ENVIRONMENTAL
CHANGES.—It is hereby declared to be National Policy that
airport development accomplished pursuant to this part shall
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834 LEGAL COMPILATION—GENERAL
provide for the protection and enhancement of the natural
resources and the quality of the environment of the Nation.
To ensure that this policy is fully implemented in the prepa-
ration of the national airport system plan, the Secretary shall
consult with and consider the views and recommendations of
the Secretary of the Interior, the Secretary of Health, Educa-
tion, and Welfare, and the Secretary of Agriculture."
3. On page 23, beginning with line 19, strike out all through the
end of line 9 on page 24.
[P. 58]
1.7a(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 91-1074, 91st Cong., 2d Sess. (1970)
AIRPORT AND AIRWAY DEVELOPMENT AND REVENUE
ACTS OF 1970
MAY 12,1970.—Ordered to be printed
Mr. STAGGERS, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 14465]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the Senate to the bill (H.R. 14465)
to provide for the expansion and improvement of the Nation's
airport and airway system, for the imposition of airport and air-
way user charges, and for other purposes, having met, after full
and free conference, have agreed to recommend and do recommend
to their respective Houses as follows:
[p-l]
NATIONAL AIRPORT SYSTEM PLAN
*******
Consultation concerning environmental changes
Section 12 (f) of the House bill required the Secretary of Trans-
portation to consult with the Secretaries of Interior, Health, Edu-
-------
STATUTES AND LEGISLATIVE HISTORY 835
cation, and Welfare, and Agriculture, and, to the extent the Secre-
tary of Transportation determined to be feasible, to incorporate
their recommendations with regard to the preservation of environ-
mental quality in the national airport system plan.
Section 201 (f) of the Senate amendment contained similar re-
quirements except that consultation with the National Council on
Environmental Quality was required in lieu of consultation with
the Secretary of Agriculture and the recommendations with re-
gard to the preservation of environmental quality were required to
be incorporated in the national airport system plan to the maxi-
mum degree feasible.
Section 12 (f) of the conference agreement combines the provi-
sion of the House bill and the provision of the Senate amendment
by requiring consultation with the Secretaries of Interior, Health,
Education, and Welfare, and Agriculture, and with the National
Council on Environmental Quality. Their recommendations with
regard to the preservation of environmental quality are required
to be incorporated in the national airport system plan to the ex-
tent that the Secretary of Transportation determines to be feasi-
ble.
[p. 33]
SUBMISSION AND APPROVAL OF PROJECTS FOR AIRPORT DEVELOP-
MENT
Section 16 of the House bill and section 206 of the Senate
amendment contained a number of similar provisions dealing with
the submission to, and approval by, the Secretary of Transporta-
tion of projects for airport development. In *arge part, the confer-
ence agreement follows the House version. The major differences
between the House bill and the conference agreement are noted
below.
Approval
Section 16 (c) (3) of the House bill prohibited the Secretary
from approving any airport development project unless he was
satisfied that fair consideration had been given to the interest of
communities in or near which the project would be located.
Section 16 (c) (4) of the House bill declared it to be national
policy that airport development projects should provide for the
protection and enhancement of the natural resources and the qual-
ity of environment of the Nation. In implementing this policy, the
-------
836 LEGAL COMPILATION—GENERAL
Secretary was required to consult with the Secretaries of the Inte-
rior and Health, Education, and Welfare with regard to the effect
a project might have on natural resources and other factors af-
fecting the environment. The Secretary was prohibited from au-
thorizing any project found to have adverse effect unless he ren-
dered a finding, in writing, after a full and complete review which
was required to be a matter of public record, that no feasible and
prudent alternative existed and that all possible steps had been
taken to minimize such adverse effect.
Section 206 (d) (3) of the Senate amendment declared it to be
national policy that airport development projects should provide
for the protection of the natural resources and the quality of
environment of the Nation. In implementing this policy the Secre-
tary was required to consider the effect of each project on factors
of environmental significance. The Secretary was prohibited from
approving any project unless he was satisfied that adequate con-
sideration had been given to the preservation of the environment
[p. 40]
and to the interest of the communities in or near which the
project would be located.
Sections 16 (c) (3) and (4) of the conference agreement follow
the House version except that the application of the provisions of
paragraph (4) relating to consultation concerning the protection
and enhancement of natural resources and the quality of environ-
ment of the Nation is limited to major projects involving airport
location, a major runway extension, or runway location. This will
obviate the necessity of applying such provisions to minor projects
which, in many cases, may amount to nothing more than mainte-
nance operations having no effect on natural resources or on the
quality of the environment.
Air and water quality
Section 206 (g) of the Senate amendment contained special pro-
visions relating to air and water quality standards. It prohibited
the Secretary from approving any airport project application un-
less the Governor of the State in which the project would be
located certified in writing to the Secretary that there was reason-
able assurance that the project would be located, designed, con-
structed, and operated so as to comply with applicable air and
water quality standards. Where such standards had not been ap-
proved or had been promulgated by the Secretary of the Interior
or by the Secretary of Health, Education, and Welfare, the certifi-
-------
STATUTES AND LEGISLATIVE HISTORY
837
cation was required to be obtained from the appropriate Secre-
tary. Certification was required to be obtained within sixty days
after the project application was received by the Secretary of
Transportation. The Secretary of Transportation was required to
condition his approval of any project on compliance during con-
struction and operation with applicable air and water quality
standards.
The House bill contained no corresponding provision.
Section 16 (e) of the conference agreement follows the Senate
version except that its application is limited to major projects
involving airport location, a major runway extension, or runway
location. As in the case of the provisions concerning consultation
on environmental effects discussed above, this will obviate the
necessity of applying these provisions to minor projects which, in
many cases, may be nothing more than maintenance operations
having no effect on air or water quality.
[p. 41]
1.7a(4) CONGRESSIONAL RECORD
1.7a(4)(a) Vol. 115 (1969), Nov. 6: Considered and passed House,
pp. 33307-33308, 33342
AMENDMENT OFFERED BY MR. ROGERS
OF FLORIDA
Mr. ROGERS of Florida. Mr. Chair-
man, I offer an amendment.
The Clerk read as follows:
Amendment offered by MB. KOGERS of
Florida: Page 45, after line 22, insert the
following:
"(c)(l) CONTROL OF POLLUTION BY AIR-
CRAFT.—Title VI of the Federal Aviation Act
of 1958 (49 U.S.C. 1421-1431) is amended by
adding at the end thereof the following new
section:
" 'CONTROL AND ABATEMENT OF POLLUTION OF
AIR BY AIRCRAFT
" 'SEC. 613. (a) In order to afford present
and future relief and protection to the public
from unnecessary pollution of the air by
aircraft, the Administrator of the Federal
Aviation Administration, after consultation
with the Secretary of Transportation, shall
prescribe and amend standards for the meas-
urement of pollution of the air by aircraft
and shall prescribe and amend such rules
and regulations as he may find necessary to
provide for the control and abatement of
pollution of the air by aircraft, including the
application of such standards, rules, and
regulations in the issuance, amendment,
modification, suspension, or revocation of any
type certificate, production certificate, or
airworthiness certificate authorized by this
title.
"'(b) In prescribing and amending stand-
ards, rules, and regulations under this sec-
tion, the Administrator shall—
"'(1) consider relevant available data re-
lating to pollution of the air by aircraft,
including the results of research, develop-
ment, testing, and evaluation activities con-
ducted pursuant to this Act, the Department
of Transportation Act, and the Clean Air
Act;
" '(2) consult with the Secretary of Health,
Education, and Welfare, the National Air
Pollution Control Administration, and such
other Federal, State, and interstate agencies
as he deems appropriate;
"'(3) consider whether any proposed
standard, rule, or regulation is consistent
with the highest degree of safety in air
commerce or air transportation in the public
interest;
"'(4) consider whether any proposed
standard, rule, or regulation is economically
reasonable, technologically practicable, and
-------
838
LEGAL COMPILATION—GENERAL
appropriate for the particular type of air-
craft, aircraft engine, appliance, or certificate
to which it will apply; and
"'(5) consider the extent to which such
standard, rule, or regulation will contribute
to carrying out the purposes of this section.'
"(2) TABLE OF CONTENTS.—That portion of
the table of contents contained in the first
section of the Federal Aviation Act of 1958
which appears under the center heading
TITLE VI—SAFETY REGULATIONS OF
CIVIL AERONAUTICS' is amended by adding
at the end thereof the following:
" 'Sec. 613. Control and abatement of pollu-
tion of air by aircraft.' "
Mr. ROGERS of Florida (during
the reading). Mr. Chairman, I ask
unanimous consent that further read-
ing- of the amendment be dispensed
with and that it be printed in the
RECORD.
The CHAIRMAN. Is there objec-
tion to the request of the gentleman
from Florida?
There was no objection.
Mr. ROGERS of Florida. Mr. Chair-
man, during committee consideration
of H.R. 14465, which would provide
for the expansion and improvement of
the Nation's airport and airway sys-
tem, an amendment was offered which
would direct the Administrator of the
Federal Aviation Administration, af-
ter consultation with the Secretary
of Transportation, the Secretary of
Health, Education, and Welfare, the
National Air Pollution Control Ad-
ministration, and appropriate State
agencies, to prescribe standards for
pollution of the air by aircraft and to
prescribe rules and regulations neces-
sary for control of air pollution by
aircraft.
The committee, by one vote, failed
to adopt the proposed amendment.
I offer this amendment today be-
cause I firmly believe we must em-
bark on a meaningful effort to curb
the present pollution emanating from
aircraft, and to control, and eventual-
ly eliminate, future pollution from
aircraft that will be developed.
It is argued that aircraft contribute
only about 1 percent of all the man-
made pollutants placed into the at-
mosphere. I do not find this particu-
arly comforting, and I believe it is
misleading because this is a percent-
age by weight of all pollutant emis-
ions.
Although jet engines do not pro-
duce sulfur compounds which are the
principal cause of urban pollution
problems, these engines do produce
extensive amounts of suspended par-
ticulate matter—unburned carbon par-
ticles—as well as aerosols—smoke—
oxides of nitrogen, and carbon mon-
oxide.
Moreover, the weight of emissions
does not indicate the scope of the
problem. Particulate emissions from
jet aircraft are extremely small par-
ticles of carbon, and these very small
particles create serious problems, al-
though their weight is not great.
These small particles create much
denser smoke plumes than do large
particles; visibility is reduced by the
very aircraft that depend so heavily
upon good terminal visibility.
But, more importantly, these small
particles are of such size that they re-
main airborne for long periods of
time and most easily enter the lungs,
thereby causing health problems, par-
ticularly emphysema, and other res-
piratory conditions.
These particulate emissions are
concentrated primarily in flight paths
and small areas of land at or near
airports. Under conditions of heavy
airport traffic, with exposures to high
concentrations of exhaust, contami-
nants are likely to occur in aircraft
loading areas and in the cabins of
aircraft lined up awaiting takeoff.
Particular adverse conditions may be
seen in the health of ground person-
nel.
The National Air Pollution Con-
trol Administration estimates that 78
million pounds of pollutants from
planes are dumped into the air over
the United States every year.
An estimated 1,200 pounds of pol-
-------
STATUTES AND LEGISLATIVE HISTORY
839
lutants per day are released in Wash-
ington, B.C.; in New York City, the
quantity is about 4,000 pounds per
day; and in Los Angeles, about 3,000
per day.
These are 1968 figures, and it has
been estimated that flight operations
at airports equipped with control
towers will double in 5 years and
triple in 10.
I do not believe we can afford to
wait any longer to meet this problem.
Particularly when there are presently
no laws or regulations which compel
the aviation industry to move quickly
to improve the conditions which exist,
to improve turbine engine combustion
design and to retrofit new burner de-
signs.
The present state of the art makes
it possible to substantially reduce the
smoke emission from jet engines and
thereby reduce also the particulate
matter which is also emitted.
A low-smoke combustor which can
be retrofitted to most existing jet en-
gines and which will be standard
equipment on all new engines made
by one company as of February 1970,
has been certified for safety by the
Federal Aviation Administration. I
urge the FAA to move swiftly, with
safety in mind, to bring these new de-
vices into service. We cannot wait
3, 4, or 5 years.
I emphasize the safety factor which
must be considered because control of
pollution from aircraft engines is in-
extricably related to the safety per-
formance of these same engines.
It is because of my concern for the
safety of air passengers as well as
my concern for the quality of the air
we breathe, that I am offering this
amendment which would create uni-
form pollution standards throughout
the United States by placing the re-
sponsibility for establishing standards,
rules and regulations within the Fed-
eral Aviation Administration.
While some States and communities
do experience more problems than
others with respect to pollution from
aircraft engines, I do not believe that
all States and communities possess
the necessary knowledge or expertise
to assess the safety factors which
must be considered when setting
smoke density and antipollution stand-
ards.
Moreover, there is provided in the
amendment ample opportunity for ap-
propriate consultation with the States.
If a State has designated certain air
quality standards, or an air quality
region established under the Air Qual-
ity Act of 1967 has designated air
quality standards, these would be con-
sidered by the Administrator in set-
ting the emission standards and con-
sidering abatement devices.
This amendment is similar to sec-
tion 611 of the Federal Aviation Act
of 1958, as amended, which provides
for the control and abatement of air-
craft noise and sonic boom.
[p. 33307]
That section of the act was adopted
last year in the 90th Congress as Pub-
lic Law 90-411, and the Federal Avia-
tion Administration is presently work-
ing on the establishment of standards
for measurement of aircraft noise and
sonic boom and the appropriate rules
and regulations for control of this
problem.
One particular difference between
the amendment that I am proposing
and section 611 is that the language
found in section 611 (c) is not present
in the amendment. This language per-
tains to the right of the National
Transportation Safety Board to
amend, modify, or reverse the order
of the Administrator if the Board
finds that the public interest does not
require affirmation of the Administra-
tor's order.
There is, I believe, ample provision
for appropriate review of the Admin-
istrator's decision by the Board in
section 609 of the act which also per-
-------
840
LEGAL COMPILATION—GENERAL
mits the Board to consider safety and
the public interest.
Time is working against us in our
efforts to clean up the air. I urge this
body to adopt this amendment to bring
us another step closer to our goal.
Mr. STAGGERS. Mr. Chairman, I
think the issues are determined. I ask
unanimous consent that we vote at 6
o'clock on this amendment.
The CHAIRMAN. Is there objection
to the request of the gentleman from
West Virginia?
There was no objection.
The CHAIRMAN. The Chair rec-
ognizes the gentleman from New York
(Mr. FAEBSTEIN).
Mr. FARBSTEIN. Mr. Chairman,
I favor this legislation as much as I
favor any legislation, because with
the new wave of air pollution, despite
the fact that the gentleman from Flor-
ida, who proposed this amendment,
opposed my amendment to do away
with air pollution by banning the use
of internal combustion engines in
automobiles, that would prevent the
pollution, I support the amendment
offered by the gentleman from Flor-
ida. By the use of internal combustion
engines, we pollute the air more than
we do by airplanes. Nevertheless, I
will go along with the gentleman in
the hopes that in the future he will
see the light of preventing, in due
time, the use of internal combustion
engines in automobiles.
Mr. Chairman, I strongly support
the amendment offered by the gentle-
man from Florida (Mr. ROGERS) to
H.R. 14465 to empower the Adminis-
trator of the Federal Aviation Agen-
cy to prescribe standards for pollu-
tion of the air by aircraft and to pre-
scribe rules and regulations necessary
for control of air pollution by aircraft.
Air transportation has traditionally
been considered interstate in nature
and, therefore, subject to Federal reg-
ulation. Such regulation, however, has
been oriented primarily toward the
airborne vehicle itself with little re-
gard to its environmental effects.
We must now recognize that this
perspective must be broadened. Air-
craft are such a part of our daily
life, a part of our environment, and
as every day passes, aircraft and their
effects, both good and bad, grow
closer to us.
We must recognize the responsibil-
ity to protect all Americans, who
might be affected by the effects of the
aircraft, whether or not they are ac-
tually using the vehicle.
Aircraft engine combustion can be
clean. This is a demonstrated fact and
not a research promise. Clean burning
engines have already been demon-
strated and will be available to re-
place those now in use.
Today, however, we do not see
them. We see, instead, airports with
jet liners arriving and departing every
2 minutes. At this frequency of oper-
ation we see the smoky combustion
products of 2 million gallons of fuel
ejected on or near these airports
every 24 hours.
We also see aroused and angry
cities planning their own regulations
to solve this problem. Yet, we know
that this problem is not for a city to
solve—or for a State to solve. This is
our problem.
Shall we stand by and watch a
tangled morass of local and State reg-
ulations come into being? Shall we
wait until the suppliers and users of
aircraft equipment financially commit
themselves to equipment we may later
outlaw? We certainly should not.
We must act now. We must not only
provide the needed authority to our
regulatory agencies. We must also
pass on our intent. We must convey
to these agencies that we expect them
to apply their broadened powers with
effectiveness without delay.
The CHAIRMAN. The Chair recog-
nizes the gentleman from Georgia
(Mr. THOMPSON).
Mr. THOMPSON of Georgia. Mr.
-------
STATUTES AND LEGISLATIVE HISTORY
841
Chairman, I rise in support of this
amendment.
I should like to state also that the
gentleman from Ohio (Mr. BROWN)
would like to be recorded as being in
favor of this amendment. Unfortu-
nately he had an emergency and had
to leave to go back to the State of
Ohio.
The amendment was offered in the
committee. There was opposition to
the amendment because of the feeling
that air pollution should be handled
under one agency and not a number
of agencies. However, with respect to
aircraft, I believe it is a different sit-
uation. There are technical factors in-
volved. There are safety factors in-
volved.
It is a good amendment and it is a
much needed amendment, and I feel it
should have the support of the Mem-
bers of the House.
The CHAIRMAN. For what pur-
pose does the gentleman from New
York (Mr. OTTINGEE ) rise?
Mr. OTTINGER. To take my time,
Mr. Chairman.
The CHAIRMAN. The gentleman's
name is not on the list.
Mr. OTTINGER. I was standing,
Mr. Chairman, at the time the limita-
tion was entered.
I favor the amendment.
The CHAIRMAN. The Chair rec-
ognizes the gentleman from California
(Mr. ANDERSON).
Mr. ANDERSON of California. Mr.
Chairman, I rise in support of Con-
gressman ROGERS' amendment direc-
ting the Administrator of the Federal
Aviation Administration to provide
certain regulations to control aircraft
pollution.
Generally, airplane smoke accounts
for 1 percent of all air pollution by
weight. In the vicinity of our airports
and in the corridors where airplanes
take off and land, this percentage is
much higher. In Los Angeles, it is re-
ported that almost 1 ton of pollutants
per day is dumped from airplanes.
We must take action necessary to
eliminate the pollutants from our en-
vironment. Industry has developed the
technology to prevent air pollution
for airplanes. We must take advan-
tage of this technology. The Rogers
amendment will place responsibility
with a Federal regulatory agency for
action. This is a progressive step in
eliminating the pollutants in the air.
The CHAIRMAN. The Chair recog-
nizes the gentleman from West Vir-
ginia (Mr. STAGGERS) to close debate
on the amendment.
Mr. STAGGERS. Mr. Chairman, I
reluctantly rise to oppose the amend-
ment. It seems as though everyone
else is for it.
Of course I am against air pollu-
tion. We discussed this in the commit-
tee, and we said that this is a safety
bill, not a health bill. Pollution is a
health matter.
There is another agency, the De-
partment of Health, Education, and
Welfare, which has the Clean Air Act.
That will come before our committee
again very soon. It will take care of
this situation.
The Government and the industry
are working on this problem with all
the devices they have. They have
given a directive to hurry up.
As I say, this is now under the
jurisdiction of HEW. That is where
it ought to stay. If we pass this
amendment then we may have two or
three different agencies considering
the problem.
For those reasons I do oppose the
amendment. I share the concern ex-
pressed by those who have spoken for
the amendment, but I feel that we
should in orderly fashion carry on the
laws of the Congress, and we ouyht
to keep health matters in the health
field, and safety matters in the safety
field, and reject the amendment. We
can bring this up when we consider
the Clean Air Act and deal with it
then.
The CHAIRMAN. The question is
-------
842
LEGAL COMPILATION—GENERAL
on the amendment offered by the gen-
tleman from Florida (Mr. EOGERS).
The question was taken; and on a
division (demanded by Mr. ROGERS of
Florida) there were—ayes 25, nays 56.
So the amendment was rejected.
[p. 33308]
The SPEAKER. The question is on
the passage of the bill.
The question was taken; and the
Speaker announced that the ayes ap-
peared to have it.
Mr. SPRINGER. Mr. Speaker, I ob-
ject to the vote on the ground that a
quorum is not present and make the
point of order that a quorum is not
present.
The SPEAKER. Evidently a quo-
rum is not present.
The Doorkeeper will close the doors,
the Sergeant at Arms will notify ab-
sent Members, and the Clerk will call
the roll.
The question was taken; and there
were—yeas 337, nays 6, not voting 88,
***_
* * * * »
So the bill was passed.
[p. 33342]
1.7a(4)(b) Vol. 116 (1970), Feb. 25-26: Considered and passed
Senate, amended, pp. 4842; 5069-5072; 5082-5083
Mr. DOMINICK. Mr. President,
while I have the floor, I should like
to ask a couple of questions of the
manager of the bill or the distin-
guished Senator from Kansas.
Is there anything in this bill—if the
manager of the bill does not mind
commenting on this—which would re-
flect the need for environmental qual-
ity in the location of airports? I invite
the Senator's attention to the bill I
introduced earlier, which would have
banned all jets from National Airport
because of the noise factor and be-
cause of the 40 tons of pollution per
day that they pour over Washington,
D.C.
Unfortunately, we have not had
time to have any hearings on that bill.
A great number of people would like
to be heard in favor of the bill, but
obviously this is going to be a very
complex and a very difficult bill to get
passed.
I should like to know, however, in
determining the location of new air-
ports, whether we have built into this
measure anything to do with the en-
vironmental quality of the county.
Mr. CANNON. I am happy to an-
swer the Senator from Colorado.
This matter is covered in the report
of the Committee on Commerce on
page 36, under the heading "Environ-
ment Protection." I read:
The Committee is concerned that airport
development proceed with all due caution
and concern for protection of the environ-
ment. Factors such as noise, air and water
pollution, site selection consonant with the
environmental surroundings and preservation
of natural beauty should be taken into account.
Section 206(d) (3) of this bill requires that
the Secretary shall not approve any project
application unless and until he is satisfied
that fair consideration has been given to the
preservation and enhancement of the en-
vironment and to the interest of communi-
ties in or near which the project may be
located. In addition, the bill requires that legal
notice be given in the Federal Register of
the pendency of any project application in
order that all project applications become a
matter of public record.
The Committee bill retains the provisions
for public hearings provided in the Federal
Airport Act of 1946.
The Committee believes that should any
project application for airport development
assistance be objected to by any party with
interest in the matter, the Secretary must
have the primary responsibility to see to it
that a fair and impartial hearing is afforded
to ensure that the rights of all interested
parties will be protected.
-------
STATUTES AND LEGISLATIVE HISTORY
843
Mr. DOMINICK. I thank the Sen-
ator from Nevada.
I have an increasing concern over
this. I might add that not only is it
applicable to Washington, D.C., but
also, as the Senator well knows, we
have problems even with the super-
sonic airplane which is being devel-
oped, as to what it is going to do to
our environment as a result of the
contrails it may leave up there, which
do not dissipate because there is no
wind.
As I have said, I think the need for
doing this is of the utmost importance
in our overall battle for environmen-
tal quality.
Mr. PERCY. Mr. President, will
the Senator yield?
Mr. DOMINICK. I yield to the Sen-
ator from Illinois.
Mr. PERCY. I should like to stress
the importance of the remarks of the
distinguished Senator from Colorado.
We have need in the Chicago area
for a third airport. Serious considera-
tion is being given to placing it right
in Lake Michigan. In fact, the mayor
of the city of Chicago has taken a
position in favor of this. Despite a
month of research, I cannot find
whether one bit of technical consid-
eration has been given to what it
would do to the lake or what it would
do to the environment.
Citizens in the whole Southside of
Chicago are protesting the lake loca-
tion, because it would put planes right
over heavy concentrations of residen-
tial areas and cause noise pollution.
We do not know what such an air-
port would do to the ecology of the
lake. We do not know what the con-
struction of the airport in the center
of the lake or in the offshore area
would do.
I am delighted to hear from the Sen-
ator from Nevada that according to
this bill such airport projects could
not go ahead in the future with Fed-
eral funds unless full consideration
had been given to its effect on the en-
vironment.
Mr. CANNON. I thank the Sen-
ator for his remarks. I may say that
my understanding is, there is to be of-
fered during the course of the hear-
ings on the bill an amendment relat-
ing specifically to the environmental
problem.
Mr. MAGNUSON. I was going to
say that I think the Senator will be
satisfied—although there are several
different points of view on this—with
it. We did not want any unconscion-
able delays in necessary airport de-
velopment, however we do want envi-
ronmental safeguards and I think the
Senator will be satisfied with the
amendment. First, on major projects,
under the new amendment, there have
to be hearings before Federal grants
are considered. If we had made grants
first and then held hearings, of course,
all parties would have their feet in
concrete. I think that such an amend-
ment like Senator HART will offer is
absolutely necessary in the bill.
Mr. DOMINICK. My understanding
is that airport development, as defined
in section 201, means not only new
airports but also new improvements
in existing airports. Is that correct?
Mr. CANNON. If a project applica-
tion is made under provisions of the
bill, then the environmental provisions
in section 206 would apply either to
new or existing airports for which
grants were requested.
Mr. DOMINICK. I understand that.
Suppose money is appropriated under
the Federal Airport Act, do the pro-
visions in the bill apply to that, so
that the money being used under the
Federal Airport Act will come within
the restrictions in the bill?
Mr. CANNON. The Senator is cor-
rect. The bill would require that the
Secretary should not approve that
project, when the application is made,
unless and until he is satisfied that
fair consideration has been given to
the items we have been discussing,
-------
844
LEGAL COMPILATION—GENERAL
that is, the preservation of the envi-
ronment. I think that is adequate pro-
vision for protection to those people
close to airports.
[p. 4842]
Mr. HART. Mr. President, I send to
the desk an amendment for myself
and Senator SPONG, Senator MAGNU-
SON, Senator BYRD of Virginia, Sen-
ator CKANSTON, Senator DOLE, Senator
Moss, Senator MUSKIE, Senator NEL-
SON, Senator PELL, Senator PERCY,
Senator WILLIAMS of New Jersey,
and Senator YOUNG of Ohio.
The PRESIDING OFFICER. The
amendment will be stated.
The assistant legislative clerk pro-
ceeded to read the amendment.
Mr. HART. Mr. President, I ask
unanimous consent that further read-
ing of the amendment be dispensed
with.
The PRESIDING OFFICER. With-
out objection, it is so ordered; and,
without objection, the amendment will
be printed in the RECORD.
The amendment is as follows:
On page 54, line 3, insert the following:
"(6) 'Application for site approval* means
a preliminary request by a sponsor for ap-
proval of a site selection made prior to any
request for aid, as denned in section 201(14)."
On page 64, lines 4, 7, 9, 10, 11, and 12,
strike out "(6)", "(7)", "(8)", "(9)",
"(10)", "(11)", and "(12)", respectively and
insert in lieu thereof "(7)", "(8)", "(9)",
"(10)", "(11)", "(12)" and "(13)" respec-
tively.
On page 54, after line 24, insert the fol-
lowing :
"(14) 'Request for aid', as used in section
206(d)(4), means the first submission to the
Secretary of a written request for assistance
in which the proposed project is outlined in
some detail in compliance with standardized
procedures."
On page 55, lines 1, 3, 7, 9, and 16, strike
out "(13)" "(14)", "(15)", "(16)", and
"(17)", respectively, and insert in lieu there-
of "(15)", "(16)", "(17)", "(18)". and
"(19)", respectively.
On page 58, beginning with line 5 strike
out all through line 11, and insert in lieu
thereof the following:
"Consultation Concerning Environmental
Changes
"(f) In carrying out this section, the Sec-
retary shall' consult with and consider the
views and recommendations of the Secretary
of the Interior, the Secretary of Health, Edu-
cation, and Welfare, and the National Coun-
cil on Environmental Quality. The recom-
mendations of the Secretary of the Interior,
and Secretary of Health, Education, and Wel-
fare, and the National Council on Environ-
mental Quality with regard to the preserva-
tion of environmental quality, shall, to the
maximum degree feasible, be incorporated
in the national airport system plan."
On page 69, beginning with line 16, strike
out all through line 19 on page 70 and in-
sert in lieu thereof the following:
"(3) It is hereby declared to be national
policy that airport development projects au-
thorized pursuant to this title shall provide
for the protection of the natural resources
and the quality of the environment of the
Nation. In implementing this policy, the Sec-
retary shall consider the effect that each
such project may have on factors of environ-
mental significance, including but not lim-
ited to, water and air quality, noise levels,
fish and wildlife, natural, scenic and recrea-
tional assets, and other factors affecting the
environment. The Secretary shall not ap-
prove any project, either conditionally or
unconditionally, unless he is satisfied that
adequate consideration has been given to the
preservation of the environment and to the
interest of the communities in or near which
the project may be located.
"Substantial Extensions to Existing Airports
"(e) (1) No airport development project in-
volving the location of an airport runway or
a substantial runway extension may be ap-
proved, either conditionally or uncondition-
ally by the Secretary unless the public agen-
cy sponsoring the project certifies to the Sec-
retary that prior to submitting its request
for aid, as defined in section 201 (14), it has
held public hearings for the purpose of con-
sidering the social, economic and environ-
mental effects of the project, and has af-
forded adequate notice of such hearings to
all persons with a significant social, eco-
nomic or environmental interest in the mat-
ter. The notice required by this paragraph
shall include a concise statement of the pro-
posed project and may be published in a
newspaper of general circulation in the com-
munities in or near which the project may
be located, and shall be published in the
Federal Register. Hearings provided for by
this paragraph need not be held if oppor-
tunity for such hearings is provided through
adequate notice, and no one with a signifi-
cant social, economic or environmental in-
-------
STATUTES AND LEGISLATIVE HISTORY
845
terest in the matter requests a hearing. In
the event that hearings are held, the proj-
ect sponsor shall submit a copy of the tran-
script with its request for aid to the Secretary.
"(2) The Secretary shall review each tran-
script of hearing submitted pursuant to
paragraph (1) of this subsection to assure
that an adequate opportunity was afforded
for the presentation of views by all parties
with a significant social, economic or en-
vironmental interest. The Secretary shall not
approve, either conditionally or uncondi-
tionally, any project involving the location
of an airport runway or a major runway ex-
tension without first consulting with the
Governor of the State in which the project
may be located, the Secretary of the In-
terior, the Secretary of Health, Education,
and Welfare, and the Council of Environ-
mental Quality with respect to the environ-
mental consequences of the project.
" (3) If opposition to a proposed project
is raised in the hearing prescribed by para-
graph (1), or by any official consulted pur-
suant to paragraph (2), on the grounds that
the environment would be adversely affected
by the project, the Secretary shall not ap-
prove the project, either conditionally or un-
conditionally, unless he finds in writing after
a full and complete review of the record of
such hearing that (A) no significant adverse
environmental effect is likely to result from
such project, or (B) there exists no feasible
and prudent alternative to such effect and all
reasonable steps have been taken to minimize
such effect. In any case in which the Secretary
determines that the record of the hearing
before the sponsor is inadequate to permit
him to make the findings required under the
preceding sentence, he may conduct a hear-
ing, including adequate notice to interested
persons, on the environmental issues raised.
Findings of the Secretary under this para-
graph, and his reasons therefor, shall be made
a matter of public record. If the Secretary
disapproves the project pursuant to the pro-
visions of this paragraph the reasons therefor
shall also be made a matter of public record.
"New Airports
" (f) The procedu res of subsection (e)
shall apply with respect to the approval of
projects for new airports, except that the
public hearings prescribed by paragraph (1)
of that subsection shall be held prior to any
application for site approval, as defined in
section 201 (6), and the duties imposed on
the Secretary by paragraphs (?) and (3) of
that subsection shall be performed prior to
approval of any new airport site.
"Air and Water Quality
"(g) (1) The Secretary shall not approve
any project application unless the Governor
of the State in which the project may be
located certified in writing to the Secretary
that there is reasonable assurance that the
project will be located, designed, constructed
and operated so as to comply with applicable
air and water quality standards. In any case
where such standards have not been ap-
proved or where such standards have been
promulgated by the Secretary of the Interior
or the Secretary of Health, Education, and
Welfare, certification shall be obtained from
the appropriate Secretary. Notice of certifi-
cation or of refusal to certify shall be
provided within 60 days after the project
application is received- by the Secretary.
" (2) The Secretary shall condition ap-
proval of any project application on compli-
ance during construction and operation with
applicable air and water quality standards."
On page 70, line 21 strike out "(g)" and
insert in lieu thereof "(h)".
[p. 52504]
Mr. HART. Mr. President, it is my
hope that this amendment will be
adopted. Before getting into the sub-
stance of this amendment, let me first
explain how I became involved with
it. Shortly after the Commerce Com-
mittee reported the language of this
bill for referral to the Finance Com-
mittee—nearly 3 months ago—the
junior Senator from Virginia (Mr.
SPONG) and I became concerned that
the hill did not provide sufficient en-
vironmental protection. We expressed
this concern in a letter to Chairman
MAGNUSON together with hope that
the three of us would be able to
support an amendment to the hill
which would more adequately deal
with environmental problems. I am
happy to report that language which
is acceptable to each of us has been
worked out in the amendment offered
today. It is an effort to improve the
protection against environmental dam-
age occurring by a grant of approval
for a new airport or substantial ex-
tension of an existing airport.
We have discussed this for many
hours, among those on the committee
and those who, not on the committee
are offering the amendment. All of us
who propose it believe it is a prudent
-------
846
LEGAL COMPILATION—GENERAL
response to a very substantial prob-
lem.
Mr. President, although H.R. 14465
includes some provisions for environ-
mental protection, these are not near-
ly strong enough to satisfy our cur-
rent needs. In light of the dimensions
of our environmental crisis, we cannot
settle for anything less than the most
effective safeguards. The recent Ever-
glades controversy should serve as a
reminder of the serious dangers which
may be posed to our environment by
ill-considered airport construction. It
[p. 5069]
is the desire to avoid future entangle-
ments of this sort that in large part
has prompted this amendment.
Some background information on
airport development procedures would
probably be helpful in explaining how
this amendment is designed to func-
tion. Under the Federal-aid airport
program, the sponsor of a new airport
is required to seek FAA approval of
his proposed airport site prior to ini-
tiating any application for assistance.
If he is successful in obtaining such
approval, he must then submit a pre-
liminary application known as a re-
quest for aid. That document, accord-
ing to the FAA procedures guide,
should designate the approved site for
the project, should include a sketch of
the airport plan, identifying each land
feature that will affect the project,
and should list cost estimates for each
item of work for which funds are re-
quested.
On the basis of the various requests
for aid it receives and the amount of
funds available, FAA will make its
decision on which requests should be
approved. Approval of a request, the
FAA procedures guide notes, is equiv-
alent to "a firm reservation of Fed-
eral funds conditional only on the
sponsor's promptness in proceeding
with development of the project."
Project development, as opposed to
project construction, takes place for
the most part after the approval of
the request but prior to submission
of the formal project application.
During this period of time, the spon-
sor quite often will acquire his land
for the project and will usually finance
the sponsor share of project funds
and hire an engineer to prepare de-
tailed plans and specifications.
After he submits his project appli-
cation but prior to approval of it, the
sponsor, for most projects, will receive
bids for construction contracts, will
select his contractor, and will seek
FAA concurrence in award of the con-
tract. Although FAA may actually
concur, at that time, most sponsors do
not actually execute construction con-
tracts until assured of their own con-
tract with the Government, which is
concluded at the time of approval of
the application.
One cannot but notice, in reviewing
this summary of airport development
application procedures, how far along
the road toward project construction
a sponsor may be before his applica-
tion is approved. It is for this reason
that the proposed amendment pre-
scribes that the first determination
by the Secretary as to the environ-
mental soundness of a project must
be made at the time of approval of
the site, in the case of new airport
projects, and at the time of the re-
quest for aid, in the case of extensions
to existing airports.
In order to provide the data which
will allow him to make rational deter-
minations, the amendment requires,
with respect to all projects involving
the location of a new airport, an air-
port runway, or a substantial runway
extension, a hearing' to be conducted
by the sponsor on the environmental,
social, and economic effects of the
project. The Secretary is required to
examine the hearing record before ap-
proving any site or request for aid,
and to consult with the Governor of
the State in which the project may be
located, the Secretaries of Interior
and HEW, and the National Council
-------
STATUTES AND LEGISLATIVE HISTORY
847
on Environmental Quality on the pos-
sible environmental effects of the proj-
ect. If any of these officials raises en-
vironmental objections, or if any are
raised in the hearing conducted by
the sponsor, the Secretary may not
give his approval unless he first finds
in writing that, first, no adverse en-
vironmental effect is likely to result
from the project; or, second, there is
no feasible alternative to any such
effect and all reasonable steps are be-
ing taken to minimize it.
The amendment raises some ques-
tions which I would like to attempt to
anticipate. It may be asked, first of
all, whether the amendment requires
a hearing in the case of every project.
The answer is a decided "no." The
amendment states that hearings must
be held only with respect to projects
involving the location of an airport,
or airport runway or a substantial
runway extension. The language is
meant to include only a relatively
small percentage of the projects for
which applications are submitted. The
majority of projects each year, I am
told, are for minor improvements to
existing airports—the repaving of
runways, the addition of airport light-
ing, minor runway extensions. These
are all means to be exempted from the
hearing requirement.
Also exempted are projects for
which hearings have been held in pre-
vious years. The amendment requires
only that hearings be held prior to
submitting applications for site ap-
proval or requests for aid not neces-
sarily immediately prior to such ap-
plications. Thus if assistance for a
new airport is requested in a given
year and the layout plan for that air-
port is approved, requests the follow-
ing year for additional runways with-
in the same plan would not need to
be preceded by hearings.
A second question which may arise
is, "How can the Secretary make his
environmental determinations on the
basis of anything less than a full de-
tailed project application?" In answer
to this, it should be noted that the
Secretary must pass not only on the
application for site approval or re-
quest for aid, but also on the final
project application, for possible ad-
verse environmental effects. This is
the significance of the requirement
relating to "conditional or uncondi-
tional" approval. If subsequent to the
approval of any request or site selec-
tion, therefore, major changes of en-
vironmental significance are noted in
the project, the Secretary will be re-
quired to review his environmental
findings before giving final approval
to the project application. He will
thus have access to the full detailed
application before his capacity to with-
draw his earlier findings terminates.
The amendment differs with H.R.
14465 in many respects, the most im-
portant of which should be summa-
rized at this point. First of all, the
amendment requires a stiffer standard
to be used by the Secretary in evaluat-
ing the environmental effects of proj-
ects. S. 3108 requires only that the
Secretary must be "satisfied that fair
consideration has been given to the
preservation and enhancement of the
environment" before he approves a
project. The amendment requires that
he must find that the project is better
from an environmental standpoint
than any other reasonable alternative.
In these times, I believe that the
amendment's standard is much pref-
erable if not essential. Both the Ever-
glades crisis of last year and the Na-
tion's general environmental problems
strongly support the view that the
Secretary of Transportation's satis-
faction is not a suitable measuring
rod for the effectiveness of environ-
mentally significant decisions.
A second major break from H.R.
14465 arises from the amendment's
emphasis on consultation among Fed-
eral departments. Whereas the amend-
ment prescribes that the Secretary of
Transportation must consult with oth-
-------
848
LEGAL COMPILATION—GENERAL
er agencies on the environmental ef-
fects of projects, H.R. 14465 incorpo-
rates no such requirement.
There appear to be strong argu-
ments for requiring some measure of
consultation. In the Everglades crisis,
we witnessed a tug of war between
the Departments of Transportation
and the Interior which might have
been prevented by consultation early
in the game. It is a major purpose of
the amendment to insure that in the
future, Federal departments will work
together in protecting the environ-
ment. In addition, it seems plain that
in making decisions which may have
major environmental consequences,
the Secretary of Transportation ought
to be required to seek the advice of
those who deal more frequently with
environmental questions.
Another difference between the
amendment and the bill relates to the
requirement for public hearings. Al-
though both proposals call for hear-
ings, H.R. 14465 requires them to be
held at the Federal level, which the
amendment calls upon the sponsor to
conduct them. The rationale for local
hearings is actually stronger with re-
gard to social and economic questions,
where the matters considered are es-
sentially local, than in the case of en-
vironmental problems, where a strong
Federal interest is at stake. Clearly,
social and economic questions such as
whether to build an airport or a play-
ground, or whether to pay the price
of either, can be better considered be-
fore a locally elected body than before
an FAA representative whose sole in-
terest may well be the construction of
an additional airport.
Since these questions are most ap-
propriately handled locally, and since
it seems pointless to require two sets
of hearings where one will do, it fol-
lows that environmental matters are
also most readily considered locally.
The Federal interest in the environ-
ment can be accommodated, it would
seem, through Federal examination of
the hearing transcript.
Another difference concerns the en-
forcement of applicable air and water
quality standards. The amendment
adds to the bill effective procedures to
insure that such standards will be
complied with by federally-funded air-
[p. 5070]
ports. Since many of our most sig-
nificant environmental problems in-
volve the pollution of our water and
air, all reasonable measures for mini-
mizing such pollution ought to be en-
couraged. The measures included in
the amendment require certification by
State governments of airport compli-
ance with existing standards and con-
tractual obligations on the part of
project sponsors to continue such
compliance after receipt of Federal
funds. Adoption of these provisions
would provide a welcome addition, I
believe, to existing air and water
quality legislation.
The final major difference between
H.R. 14465 and the amendment is per-
haps the most important of all. It con-
cerns the timing of the hearing and of
the determination by the Secretary of
the environmental suitability of the
project. Whereas the bill prescribes
hearings to be conducted after sub-
missions of the application, the amend-
ment calls for them to be held prior
to site selection approval, in case of
new airport projects, and prior to the
request for aid in the case of exten-
sions of old ones. The environmental
determinations are required by the bill
to be made prior to approval of the
application; the amendment requires
these either at the site approval or
request for aid stages.
The need for a change in timing
stem basically from the nature of the
FAA procedures for project develop-
ment which were noted earlier. Since
under these procedures, so many ma-
jor steps will have been undertaken
with respect to a project by the time
-------
STATUTES AND LEGISLATIVE HISTORY
849
an application for that project is ap-
proved, the time of approval does not
appear to be a feasible one for a fair
determination of environmental ques-
tions. Can the Secretary really make
an unbiased determination as to wheth-
er plot A or plot B is the better air-
port location, when plot A has al-
ready been purchased by the sponsor
and when the sponsor has already is-
sued bonds to finance construction on
that plot, hired engineers, drafted de-
tailed plans and specifications, solic-
ited and received bids for construction
contracts and perhaps even negotiated
and signed contract on which he is
liable? Moreover, in the event the Sec-
retary is able to conclude that plot B
is more suitable, the resulting waste
of time and money on the part of the
sponsor, as well as the tieup of Feder-
al funds pending this determination,
seems difficult to justify if it can be
avoided.
The amendment is designed to avoid
such consequences by insisting on an
environmental determination at the
earliest practicable stage of Federal
involvement. The determination that
is called for is therefore prospective
rather than retrospective and, for this
reason alone, it is considerably more
likely to be correct.
Just how far down the line things
can go before a project application is
approved is illustrated by the example
of the development of the Everglades
jet training facility. That facility is
now in operation, although fortunate-
ly under extensive restrictions.
FAA's file on the project reveals
the very difficulties that this amend-
ment is designed to deal with and the
very difficulties which the language of
S. 3108 leaves completely unremedied.
According to the file and supporting
information, Dade County submitted
its request for aid for the project on
December 8, 1967. That request was
approved on April 25 of the follow-
ing year. As is so often the case with
project sponsors, Dade County then
purchased its land for the facility on
June 17, months before submitting its
project application on September 9.
The next significant event in this se-
quence occurred on September 19,
1968. On this date, a full 2 months
before approval of the project appli-
cation—the time, it should be remem-
bered, which H.R. 14465 selects as the
appropriate time for environmental
determinations by the Secretary—a
groundbreaking ceremony was held on
the construction site. Thus at the time
the project application was approved,
construction on the site had been un-
derway for some time.
Mr. President, under the terms of
H.R. 14465, a similar situation could
well arise again. If we are truly com-
mitted to avoidance of unnecessary
environmental damage, we thus have
no choice but to reject those terms.
Three weeks ago today the Senate
took an important step in the area of
environmental control when it voted
to increase the safeguards in S. 3154,
the urban mass transportation assist-
ance bill. Today we have an opportuni-
ty to extend that effort to the sphere
of airport construction. It is to be
hoped that similar action can then
be taken with respect to other major
transportation systems.
It seems clear that in light of the
pressing nature of our environmental
crisis, what is needed is decisive action
on all fronts. The proposed amend-
ment, through its early hearing and
environmental determination proce-
dures, its consultation requirements,
its air and water quality enforcement
procedures, and its stiff standards for
general environmental control would
close the door to further construction
of environmentally deficient airports.
We have been too careless too long in
permitting such airports to puncture
our rapidly deteriorating landscape.
It is time we began to stem the tide.
Mr. SPONG. Mr. President, will
the Senator yield?
Mr. HART. I yield.
-------
850
LEGAL COMPILATION—GENERAL
Mr. SPONG. Mr. President, it was
a privilege to participate with the
Senator from Michigan (Mr. HART)
early last December in urging the
chairman of the Commerce Committee
(Mr. MAGNUSON) to consider an
amendment to the airport/airways bill
which would give additional weight to
environmental factors in airport de-
velopment projects.
Airport development obviously would
be given great impetus through the
creation of a multimillion-dollar trust
fund, and it seemed imperative to me
that the Nation's air transportation
needs be balanced by an expression of
congressional intent to protect natural
resources.
I am gratified that Senator MAGNU-
SON has agreed to our proposal. The
amendment contains a declaration of
policy and specific procedures intend-
ed to assure consideration during air-
port planning of such factors as air
and water pollution; noise levels; fish
and wildlife; and natural, scenic, and
recreational assets.
It is of particular significance and
importance that the public would be
afforded an opportunity for a hearing
on development projects, and that ma-
chinery would be established for a
review of environmental questions by
the Governor of the State in which
the project is to be located; the Sec-
retary of the Interior; the Secretary
of Health, Education, and Welfare;
and the Council of Environmental
Quality.
In view of the problems that were
encountered in the development of
the commercial jetport near the Ever-
glades National Park—a project
which fortunately has been stopped—
it is necessary that additional protec-
tion be provided on a nationwide basis
for community and environmental
values involved in airport projects.
The pending amendment would
serve that purpose. It is comparable
to environmental provisions recently
approved by the Senate in the Urban
Mass Transportation Act. Adoption
of the amendment would demonstrate
in a tangible way the Senate's con-
cern over the environmental stress
that can be created by large airport
development projects.
Mr. MUSKIE. Mr. President, I am
pleased to sponsor this amendment
with the senior Senator from Mich-
igan. This amendment to the Airport
Construction Act—H.E. 14465—will
insure that environmental quality con-
siderations will be paramount in the
development of our national and air-
way system.
Senator HART'S amendment is an-
other example of his continuing effort
to insure that our environmental
needs are met as we deal with the
Nation's transportation crisis.
I wish to draw particular attention
to subsection (g) of the amendment.
This subsection provides that no proj-
ect authorized by this title shall be
approved unless the Governor of the
State in which the project may be lo-
cated certifies that there is reasonable
assurance that the project will be lo-
cated, designed, constructed, and oper-
ated so as to comply with air and
water quality standards. Although
other sections of the amendment au-
thorize the Secretary of Transporta-
tion to consider environmental effects
before approving any project, sub-
section (g) requires that public offi-
cials with the responsibility to protect
the environment have an opportunity
to veto any project application.
This procedure is similar to the
certification procedures developed in
section 16 of the Water Quality Im-
provement Act of 1969—S. 7—as
passed by the Senate. Subsection (g)
also carries forward the concepts em-
bodied in section 102(C) of the Envi-
ronmental Quality Act of 1969. Public
officials responsible for the protection
of the environment should have the
primary responsibility for determin-
ing whether major projects and facili-
-------
STATUTES AND LEGISLATIVE HISTORY
851
ties in question will adversely affect
the environment.
Our environmental protection prob-
lem involves competition in the use
of resources—a competition which ex-
[p. 5071]
ists today in the Department of
Transportation and exists in any de-
partment which must develop re-
sources for public use.
The Department of Transportation
is not the agency to determine air
pollution control requirements for the
transportation industry. Neither is it
the agency to make the basic deter-
mination regarding the effect of ma-
jor airport projects on air and water
quality.
The agency which determines en-
vironmental quality effects must have
only one goal: the protection of
this and future generations against
changes in the natural environment
which adversely affect the quality of
life.
The problems of environmental pol-
lution will not be solved by picking up
the rhetoric of antipollution concern
and then assigning the control of pol-
lution to those responsible for the sup-
port or promotion of pollution activi-
ties.
This amendment requires the Sec-
retary of Transportation to take en-
vironmental considerations into ac-
count before approving any project
application. This amendment requires
the Secretary of Transportation to
consult with the Secretary of Interior,
the Secretary of Health, Education,
and Welfare, National Council of En-
vironmental Quality, and the Gover-
nor of the State in which the project
may be located before approving any
project application. Nevertheless, it is
important that those responsible for
environmental protection make the
basic determination regarding envi-
ronmental effects.
I hope that the Senate will approve
this important amendment. It requires
the kind of environmental conscience
which we have not exercised in the
past.
Mr. CANNON. Mr. President, the
committee was very concerned about
the environmental problems associated
with the improvement of existing air-
ports or with the location and devel-
opment of new airports, and we wrote
provisions into the bill that we
thought were adequate to give protec-
tion. However, our staff has worked
with the staff of the distinguished
Senator from Michigan and the dis-
tinguished Senator from Maine and
others to try to work out what they
believe will be an improvement. We
see no objection to the change in lan-
guage. It does the same thing we were
trying to do in the original bill. We
will accept the amendment.
Mr. MAGNUSON. Mr. President,
will the Senator yield?
Mr. HART. I yield.
Mr. MAGNUSON. Just to make a
little legislative history.
We all agree, of course, with the
thrust of the amendment and the gen-
eral objectives. But we also want to
be as practical as possible about these
things.
Although some procedures with
hearings are involved in this amend-
ment, I am hopeful that the Secre-
tary will take notice that we are not
insisting that there be unconscionable
delays in these matters, or that people,
for the sake of doing something, hold
up decent and reasonable progress in
the aviation field.
I am sure the Senator agrees with
that?
Mr. HART. I completely agree.
Mr. MAGNUSON. Second, there
was some fear that in the existing
airports which are necessary to this
country, any little improvement, small
extension of anything, a new ramp,
or some of those things that might
be involved, might have to go through
a long hearing if someone objected.
I think we all agreed that the intent
-------
852
LEGAL COMPILATION—GENERAL
of the amendment would be that it
would have to be major and substan-
tial.
Mr. HART. That is clearly the pur-
pose of the amendment.
Mr. MAGNUSON. So that there
would be no question about it. We
realize that people can still, regard-
less of the amendment, come into
court if they think they have been in-
jured in some way. They do that every
day. That right is not touched at all
by the amendment, is that correct?
Mr. HART. It is not our intention
to. It is our belief that cannot be
touched.
Mr. TALMADGE. What does the
word "environmental" mean? Does it
include "noisy"?
Mr. HART. It is intended by the
authors of the amendment that "en-
vironmental" refers to noise, air,
water, and other matters of environ-
mental significance. It is not limited
merely to esthetics but relates to the
practical environmental problems of
airports as well.
I should add that it is our belief
that by adoption of the amendment
we will not handcuff development of
airports, the needs of which are so
well recognized, but will insure ade-
quate opportunity for a record to be
made to establish that environmental
damage of a substantial character is
not involved in the establishment of a
federally funded airport.
Mr. CANNON. Mr. President, I
yield back the remainder of my time.
Mr. HART. Mr. President, I yield
back the remainder of my time.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment of the Senator from Michigan.
The amendment was agreed to.
[p. 5072]
The PRESIDING OFFICER. The
bill is open to further amendment. If
there are no further amendments to
be proposed, the question is on the
engrossment of the amendments and
the third reading of the bill.
The amendments were ordered to
be engrossed and the bill to a third
reading.
The bill (H.R. 14465) was read the
third time.
The result was announced—yeas
77, nays 0, as follows:
*****
[p. 5082]
So the bill (H.R. 14465) was passed.
[p. 5083]
1.7a(4)(c) Vol. 116 (1970), May 12: Senate agreed to conference
report, p. 15136
[No Relevant Discussion on Pertinent Section]
1.7a(4)(d) Vol. 116 (1970), May 13: House agreed to conference
report, pp. 15294; 15295; 15297
Mr. GUDE.
It has been my view that this legis-
lation should provide for a more bal-
anced approach to meeting our total
airport needs. Comprehensive planning
for airports as provided under the
State programs would give a better
balance of facilities, one which would
-------
STATUTES AND LEGISLATIVE HISTORY
853
serve general aviation airports as
well as the major airports. Such an
approach would better accommodate
the growing communities and busi-
nesses away from the metropolitan
centers. Comprehensive planning at
the State and local level, which would
have been stimulated by the authori-
zation of these funds, would yield
more balanced plans, taking into ac-
count environmental factors such as
congestion, noise and safety to the
public. The satellite airport system
would be constructively assisted by
such a program and I regret the loss
of those funds in the Senate.
* * * * *
[p. 15294]
Mr. DINGELL. Mr. Speaker, I
thank the distinguished chairman of
the committee for yielding me this
brief period of time.
I support the conference report, as
one of the conferees. I regard it as a
good accomplishment in the public in-
terest. I hope my colleagues will sup-
port it.
Mr. Speaker, I strongly support
the conference report on H.E. 14465,
the Airport and Airway Development
Act of 1970, and urge its adoption.
As the Member of this body who
drafted the amendment to H.R. 14465
requiring the Secretary of the De-
partment of Transportation to formu-
late and recommend to Congress for
approval a national transportation
policy—said amendment being offered
in committee on my behalf by my
good friend Mr. Moss of California—
and as original author and manager
in the House of the National Environ-
mental Policy Act of 1969, I wish to
make it very clear that the relevant
sections of these two pieces of legisla-
tion are to be interpreted together.
That is, the national transportation
policy required under H.R. 14465 is
to be interpreted in harmony with the
policy stated in the National Envi-
ronmental Policy Act. Provisions were
added to H.R. 14465 during considera-
tion in the Committee on Interstate
and Foreign Commerce which make it
completely clear that activities au-
thorized by the Airport and Airway
Development Act shall be conducted
in such a fashion as to fully take into
consideration the protection of fish
and wildlife values, as well as other
environmental values.
[p. 15295]
Mr. MILLS. Mr. Speaker, I move
the previous question on the confer-
ence report.
The previous question was ordered.
The SPEAKER. The question is on
the conference report.
The question was taken; and the
Speaker announced that the ayes ap-
peared to have it.
Mr. SPRINGER. Mr. Speaker, I ob-
ject to the vote on the ground that a
quorum is not present and make the
point of order that a quorum is not
present.
The SPEAKER. Evidently a quo-
rum is not present.
The Doorkeeper will close the doors,
the Sergeant at Arms will notify ab-
sent Members, and the Clerk will call
the roll.
The question was taken; and there
were—yeas 361, nays 3, not voting 65,
***
*****
So the conference report was agreed
to.
[p. 15297]
-------
854 LEGAL COMPILATION—GENERAL
1.8 DISASTER ASSISTANCE ACT
42 U.S.C. § 4401 et seq. (1970)
SUBCHAPTER I.—GENERALLY
Sec.
4401. Congressional findings and declarations.
4402. Definitions.
SUBCHAPTER II.—ADMINISTRATION or DISASTER ASSISTANCE
4411. Federal coordinating officer; appointment; functions.
4412. Emergency support teams; detail of personnel of Federal department
or agency.
4413. Cooperation of Federal agencies in rendering emergency assistance.
(a) Scope of services.
(b) Other Federal assistance not precluded.
(c) Reimbursement.
(d) Liability of Federal government.
(e) Employment of temporary personnel; incurring of obligations.
(f) Presidential powers; rules and regulations.
(g) Presidential review of programs.
(h) Reports to Congress.
4414. Use of local firms and individuals.
4415. Federal grant-in-aid programs.
4416. State disaster plans.
(a) Contents.
(b) Grants for development; limits.
(c) Designation of State agency.
(d) Reports to President and Congress.
(e) Grants for maintenance; limits.
4417. Use and coordination of relief organizations.
4418. Duplication of benefits.
4419. Nondiscrimination in disaster assistance.
4420. Disaster warnings.
4431. Predisaster assistance.
4432. Emergency communications.
4433. Emergency transportation.
4434. Removal of debris; grants to State; indemnity of Federal Government
from liability.
4435. Fire suppression.
4436. Temporary housing assistance.
(a) Regulations for rent and sale; sites for mobile and prefabri-
cated homes.
(b) Temporary mortgage or rent payments; reemployment assist-
ance.
4451. Small business disaster loans.
4452. Emergency farm loans.
4453. Disaster loan interest rates.
4454. Age of applicant for loans.
4455. Rescheduling and refinancing of federal loans.
4456. Aid to major sources of employment.
4457. Food stamp and surplus commodities program.
(a) Persons eligible; terms and conditions.
(b) Duration of assistance; factors considered.
(c) Food stamp provisions unaffected.
-------
STATUTES AND LEGISLATIVE HISTORY 855
Sec.
4458. Legal services.
4459. Unemployment assistance; limitation of amount and duration to pay-
ments under State unemployment compensation; reduction of pay-
ments.
4460. Community disaster grants to local governments; limits; computation
of loss.
4461. Timber sale contracts.
(a) Cost-sharing arrangement.
(b) Cancellation of authority.
(c) Public notice of sale.
(d) State grants for removal of damaged timber; reimbursement
of expenses limited to salvage value of removed timber.
4462. Standards for residential structure restoration.
4481 Repair and restoration of damaged United States facilities; availabil-
ity of funds.
4482. Restoration of State and local public facilities.
(a) Eligible costs.
(b) Public facilities under completion at the time of disaster.
(c) Definition.
4483. Priority to applications for public facility and public housing assistance
in major disaster areas.
4484. Relocation assistance.
SUBCHAPTER I.—GENERALLY
§ 4401. Congressional findings and declarations
(a) The Congress hereby finds and declares that—
(1) because loss of life, human suffering, loss of income,
and property loss and damage result from major disasters
such as hurricanes, tornadoes, storms, floods, high waters,
and wind-driven waters, tidal waves, earthquakes, droughts,
fires, and other catastrophes; and
(2) because such disasters disrupt the normal functioning
of government and the community, and adversely affect indi-
vidual persons and families with great severity;
special measures, designed to assist the efforts of the affected
States in expediting the rendering of aid, assistance, and emer-
gency welfare services; and the reconstruction and rehabilitation
of devastated areas, are necessary.
(b) It is the intent of the Congress, by this chapter, to provide
an orderly and continuing means of assistance by the Federal
Government to State and local governments in carrying out their
responsibilities to alleviate the suffering and damage which result
from such disasters by—
(1) revising and broadening the scope of existing major
disaster relief programs;
(2) encouraging the development of comprehensive disas-
-------
856 LEGAL COMPILATION—GENERAL
ter relief plans, programs, and organizations by the States;
and
(3) achieving greater coordination and responsiveness of
Federal major disaster relief programs.
Pub.L. 91-606, Title I, § 101, Dec. 31,1970, 84 Stat. 1744.
§ 4402. Definitions
As used in this chapter—
(1) "major disaster" means any hurricane, tornado, storm,
flood, high water, wind-driven water, tidal wave, earthquake,
drought, fire, or other catastrophe in any part of the United
States, which, in the determination of the President, is or
threatens to be of sufficient severity and magnitude to war-
rant disaster assistance by the Federal Government to supple-
ment the efforts and available resources of States, local gov-
ernments, and relief organizations in alleviating the damage,
loss, hardship, or suffering caused thereby, and with respect
to which the Governor of any State in which such catastrophe
occurs or threatens to occur certifies the need for Federal
disaster assistance under this chapter and gives assurance of
the expenditure of a reasonable amount of the funds of such
State, its local governments, or other agencies for alleviating
the damage, loss, hardship or suffering resulting from such
catastrophe;
(2) "United States" means the fifty States, the District of
Columbia, Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Trust Territory of the Pacific Islands;
(3) "State" means any State of the United States, the
District of Columbia, Puerto Rico, the Virgin Islands, Guam,
American Samoa, or the Trust Territory of the Pacific Is-
lands ;
(4) "Governor" means the chief executive of any State;
(5) "local government" means any county, city, village,
town, district, or other political subdivision of any State, and
includes any rural community or unincorporated town or vil-
lage for which an application for assistance is made by a
State or political subdivision thereof;
(6) "Federal agency" means any department, independent
establishment, Government corporation, or other agency of
the executive branch of the Federal Government, except the
American National Red Cross; and
(7) "Director" means the Director of the Office of Emer-
gency Preparedness.
Pub.L. 91-606, Title I, § 102, Dec. 31,1970, 84 Stat. 1745.
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STATUTES AND LEGISLATIVE HISTORY 857
SUBCHAPTER II.—ADMINISTRATION OF DISASTER ASSISTANCE
§ 4411. Federal coordinating officer; appointment; functions
(a) Immediately upon his designation of a major disaster area,
the President shall appoint a Federal coordinating officer to oper-
ate under the Office of Emergency Preparedness in such area.
(b) In order to effectuate the purposes of this chapter, the
coordinating officer, within the designated area, shall
(1) make an initial appraisal of the types of relief most
urgently needed;
(2) establish such field offices as he deems necessary and as
are authorized by the Director;
(3) coordinate the administration of relief, including activ-
ities of the American National Red Cross, the Salvation
Army, the Mennonite Disaster Service, and other relief or
disaster assistance organizations which agree to operate
under his advice or direction, except that nothing contained
in this chapter shall limit or in any way affect the responsibil-
ities of the American National Red Cross under chapter 1 of
Title 36; and
(4) take such other action, consistent with authority dele-
gated to him by the Director, and consistent with the provi-
sions of this chapter, as he may deem necesary to assist local
citizens and public officials in promptly obtaining assistance
to which they are entitled.
Pub.L. 91-606, Title II, § 201, Dec. 31,1970, 84 Stat. 1746.
§ 4412. Emergency support teams; detail of personnel of Fed-
eral department or agency
The Director is authorized to form emergency support teams of
Federal personnel to be deployed in a major disaster area. Such
emergency support teams shall assist the Federal coordinating
officer in carrying out his responsibilities pursuant to section
4411 (b) of this title. Upon request of the Director, the head of
any Federal department or agency is authorized to detail to tem-
porary duty with the emergency support teams on either a reim-
bursable or nonreimbursable basis, as is determined necessary by
the discretion of the Director, such personnel within the adminis-
trative jurisdiction of the head of the Federal department or
agency as the Director may need or believe to be useful for carry-
ing out the functions of the emergency support teams, each such
detail to be without loss of seniority, pay, or other employee sta-
tus.
Pub.L. 91-606, Title II, § 202, Dec. 31,1970, 84 Stat. 1746.
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858 LEGAL COMPILATION—GENERAL
§ 4413. Cooperation of Federal agencies in rendering emergency
assistance—Scope of services
(a) In any major disaster, Federal agencies are hereby author-
ized, on direction of the President, to provide assistance by—
(1) utilizing or lending, with or without compensation
therefor, to States and local governments, their equipment,
supplies, facilities, personnel, and other resources, other than
the extension of credit under the authority of any Act;
(2) distributing or rendering, through the American Na-
tional Red Cross, the Salvation Army, the Mennonite Disaster
Service, and other relief and disaster assistance organiza-
tions, or otherwise, medicine, food, and other consumable sup-
plies, or emergency assistance;
(3) donating or lending equipment and supplies determined
in accordance with applicable laws to be surplus to the needs
and responsibilities of the Federal Government to State and
local governments for use or distribution by them for the
purposes of this chapter; and
(4) performing on public or private lands or waters any
emergency work essential for the protection and preservation
of life and property, including—
(A) clearing and removing debris and wreckage in
accordance with section 4434 of this title;
(B) making repairs to, restoring to service, or replac-
ing public facilities (including street, road, and highway
facilities) of State and local governments damaged or
destroyed by a major disaster, except that the Federal
contributions therefor shall not exceed the net cost of
restoring each such facility on the basis of the design of
such facility as it existed immediately prior to the disas-
ter in conformity with current codes, specifications, and
standards;
(C) providing emergency shelter for individuals and
families who, as a result of a major disaster, require
such assistance; and
(D) making contributions to State or local govern-
ments for the purpose of carrying out the provisions of
paragraph (4).
Other Federal assistance not precluded
(b) Emergency work performed under subsection (a) (4) of
this section shall not preclude Federal assistance under any other
section of this chapter.
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STATUTES AND LEGISLATIVE HISTORY 859
Reimbursement
(c) Federal agencies may be reimbursed for expenditures under
this chapter from funds appropriated for the purposes of this
chapter. Any funds received by Federal agencies as reimburse-
ment for services or supplies furnished under the authority of this
section shall be deposited to the credit of the appropriation or
appropriations currently available for such services or supplies.
Liability of Federal government
(d) The Federal Government shall not be liable for any claim
based upon the exercise or performance or the failure to exercise
or perform a discretionary function or duty on the part of a
Federal agency or an employee of the Federal Government in
carrying out the provisions of this section.
Employment of temporary personnel; incurring of obligations
(e) In carrying out the purposes of this chapter, any Federal
agency is authorized to accept and utilize the services or facilities
of any State or local government, or of any agency, office, or
employee thereof, with the consent of such government. Any Fed-
eral agency, in performing any activities under this section, is
authorized to appoint and fix the compensation of such temporary
personnel as may be necessary, without regard to the provisions of
Title 5 governing appointments in the competitive service, and
without regard to the provisions of chapter 51 and subchapter
IIIl of such title relating to classification and General Schedule
pay rates, to employ experts and consultants in accordance with
the provisions of section 3109 of such title, and to incur obliga-
tions on behalf of the United States by contract or otherwise for
the acquisition, rental, or hire of equipment, services, materials,
and supplies for shipping, drayage, travel, and communication,
and for the supervision and administration of such activities. Such
obligations, including obligations arising out of the temporary
employment of additional personnel, may be incurred by an
agency in such amount as may be made available to it by the
President.
Presidential powers; rules and regulations
(f) In the interest of providing maximum mobilization of Fed-
eral assistance under this chapter, the President is authorized to
coordinate in such manner as he may determine the activities of
Federal agencies in providing disaster assistance. The President
1 So in original. Probably should be "subchapter III of chapter 53 of such
title".
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860 LEGAL COMPILATION—GENERAL
may direct any Federal agency, with or without reimbursement, to
utilize its available personnel, equipment, supplies, facilities, and
other resources in accordance with the authority, herein con-
tained. The President may prescribe such rules and regulations as
may be necessary and proper to carry out any of the provisions of
this chapter, and he may exercise any power or authority con-
ferred on him by any section of this chapter either directly or
through such Federal agency as he may designate.
Presidential review of programs
(g) The President, acting through the Office of Emergency Pre-
paredness, shall conduct periodic reviews (at least annually) of
the activities of Federal and State departments or agencies pro-
viding disaster assistance, in order to assure maximum coordina-
tion of such programs, and to evaluate progress being made in the
development of Federal, State, and local preparedness to cope with
major disasters.
Reports to Congress
(h) The Director of the Office of Emergency Preparedness is
authorized and directed to make in cooperation with the heads of
other affected Federal and State agencies, a full and complete
investigation and study for the purpose of determining what addi-
tional or improved plans, procedures, and facilities are necessary
to provide immediately effective action to prevent or minimize
losses of publicly or privately owned property and personal inju-
ries or deaths which could result from fires (forest and grass),
earthquakes, tornadoes, freezes and frosts, tsunami, storm surges
and tides, and floods, which are or threaten to become major
disasters. Not later than one year after December 31, 1970, and
from time to time, the Director of the Office of Emergency Pre-
paredness shall report to Congress the findings of this study and
investigation together with his recommendations with respect
thereto.
Pub.L. 91-606, Title II, § 203, Dec. 31,1970, 84 Stat. 1747.
§ 4414. Use of local firms and individuals
In the expenditure of Federal funds for debris clearance, distri-
bution of supplies, reconstruction, and other major disaster assist-
ance activities which may be carried out by contract with private
organizations, firms, or individuals, preference shall be given, to
the extent feasible and practicable, to those organizations, firms,
and individuals who reside or do business primarily in the disaster
area.
Pub.L. 91-606, Title II, § 204, Dec. 31,1970, 84 Stat. 1748.
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STATUTES AND LEGISLATIVE HISTORY 861
§ 4415. Federal grant-in-aid programs
Any Federal agency charged with the administration of a Fed-
eral grant-in-aid program is authorized, if so requested by the
applicant State or local authorities, to modify or waive, for the
duration of a major disaster proclamation, such administrative
procedural conditions for assistance as would otherwise prevent
the giving of assistance under such programs if the inability to
meet such conditions is a result of the disaster.
Pub.L. 91-606, Title II, § 205, Dec. 31,1970, 84 Stat. 1748.
§ 4416. State disaster plans—Contents
(a) The President is authorized to provide assistance to the
States in developing comprehensive plans and practicable pro-
grams for preparation against major disasters, and for relief and
assistance for individuals, businesses, and local governments fol-
lowing such disasters. Such plans should include long-range recov-
ery and reconstruction, assistance plans for seriously damaged or
destroyed public and private facilities.
Grants for development; limits
(b) The President is authorized to make grants of not more
than $250,000 to any State, upon application therefor, for not to
exceed 50 per centum of the cost of developing such plans and
programs.
Designation of State agency
(c) Any State desiring assistance under this section shall desig-
nate or create an agency which is specially qualified to plan and
administer such a disaster relief program, and shall, through such
agency, submit a State plan to the President, which shall—
(1) set forth a comprehensive and detailed State program
for preparation against, and relief following, a major disas-
ter, including provisions for emergency and long-term assist-
ance to individuals, businesses, and local governments; and
(2) include provision for the appointment of a State coor-
dinating officer to act in cooperation with the Federal coordi-
nating officer appointed under section 4411 of this title.
Reports to President and Congress
(d) From time to time the Director shall make a report to the
President, for submission to the Congress, containing his recom-
mendations for programs for the Federal role in the implementa-
tion and funding of comprehensive disaster relief plans, and such
other recommendations relating to the Federal role in disaster
relief activities as he deems warranted.
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862 LEGAL COMPILATION—GENERAL
Grants for maintenance; limits
(e) The President is authorized to make grants not to exceed 50
per centum of the cost of improving, maintaining, and updating
State disaster assistance plans, except that no such grant shall
exceed $25,000 per annum to any State.
Pub.L. 91-606, Title II, § 206, Dec. 31, 1970, 84 Stat. 1749.
§ 4417. Use and coordination of relief organizations
(a) In providing relief and assistance following a major disas-
ter, the Director may utilize, with their consent, the personnel and
facilities of the American National Red Cross, the Salvation
Army, the Mennonite Disaster Service, and other relief or disaster
assistance organizations, in the distribution of medicine, food,
supplies, or other items, and in the restoration, rehabilitation, or
reconstruction of community services and essential facilities
whenever the Director finds that such utilization is necessary.
(b) The Director is authorized to enter into agreements with
the American National Red Cross, the Salvation Army, the Men-
nonite Disaster Service, and other relief or disaster assistance
organizations under which the disaster relief activities of such
organizations may be coordinated by the Federal coordinating of-
ficer whenever such organizations are engaged in providing relief
during and after a major disaster. Any such agreement shall in-
clude provisions conditioning use of the facilities of the Office of
Emergency Preparedness and the services of the coordinating of-
ficer upon compliance with regulations promulgated by the Direc-
tor under sections 4418 and 4419 of this title, and such other
regulations as the Director may require.
Pub.L. 91-606, Title II, § 207, Dec. 31, 1970, 84 Stat. 1749.
§ 4418. Duplication of benefits
(a) The Director, in consultation with the head of each Federal
agency administering any program providing financial assistance
to persons, business concerns, or other entities suffering losses as
the result of a major disaster, shall assure that no such person,
business concern, or other entity will receive such assistance with
respect to any part of such loss as to which he has received
financial assistance under any other program.
(b) The Director shall assure that no person, business concern,
or other entity receives any Federal assistance for any part of a
loss suffered as the result of a major disaster if such person,
concern, or entity received compensation from insurance or any
other source for that part of such a loss. Partial compensation for
a loss or a part of a loss resulting from a major disaster shall not
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STATUTES AND LEGISLATIVE HISTORY 863
preclude additional Federal assistance for any part of such a loss
not compensated otherwise.
(c) Whenever the Director determines (1) that a person, busi-
ness concern, or other entity has received assistance under this
chapter for a loss and that such person, business concern or other
entity received assistance for the same loss from another source,
and (2) that the amount received from all sources exceeded the
amount of the loss, he shall direct such person, business concern,
or other entity to pay to the Treasury an amount, not to exceed
the amount of Federal assistance received, sufficient to reimburse
the Federal Government for that part of the assistance which he
deems excessive.
Pub.L. 91-606, Title II, § 208, Dec 31,1970, 84 Stat. 1750.
§ 4419. Nondiscrimination in disaster assistance
(a) The Director shall issue, and may alter and amend, such
regulations as may be necessary for the guidance of personnel
carrying out emergency relief functions at the site of a major
disaster. Such regulations shall include provisions for insuring
that the distribution of supplies, the processing of applications,
and other relief and assistance activities shall be accomplished in
an equitable and impartial manner, without discrimination on the
grounds of race, color, religion, nationality, sex, age, or economic
status prior to a major disaster.
(b) As a condition of participation in the distribution of assist-
ance or supplies under section 4417 of this title, relief organiza-
tions shall be required to comply with regulations relating to non-
discrimination promulgated by the Director, and such other regu-
lations applicable to activities within a major disaster area as he
deems necessary for the effective coordination of relief efforts.
Pub.L. 91-606, Title II, § 209, Dec. 31,1970, 84 Stat. 1750.
§ 4420. Disaster warnings
The President is authorized to utilize or to make available to
Federal, State, and local agencies the facilities of the civil defense
communications system established and maintained pursuant to
section 2281 (c) of Title 50, Appendix, for the purpose of provid-
ing needed warning to governmental authorities and the civilian
population in areas endangered by imminent major disasters.
Pub.L. 91-606, Title II, § 210, Dec. 31,1970, 84 Stat. 1750.
§ 4431. Predisaster assistance
If the President determines that a major disaster is imminent,
he is authorized to use Federal departments, agencies, and instru-
mentalities, and all other resources of the Federal Government to
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864 LEGAL COMPILATION—GENERAL
avert or lessen the effects of such disaster before its actual occur-
rence.
Pub.L. 91-606, Title II, § 222, Dec. 31, 1970, 84 Stat. 1751.
§ 4432. Emergency communications
The Director is authorized during, or in anticipation of, an
emergency to establish temporary communications in any major
disaster area in order to carry out the functions of his office, and
to make such communications available to State and local govern-
ment officials and other persons as he deems appropriate.
Pub.L. 91-606, Title II, § 222, Dec. 31, 1970, 84 Stat. 1751.
§ 4433. Emergency transportation
The Director is authorized to provide temporary public trans-
portation service to meet emergency needs in a major disaster
area. Such service will provide transportation to governmental
offices, supply centers, stores, post offices, schools, major employ-
ment centers, and such other places as may be necessary in order
to enable the community to resume its normal pattern of life as
soon as possible.
Pub.L. 91-606, Title II, § 223, Dec. 31, 1970, 84 Stat. 1751.
§ 4434. Removal of debris; grants to States; indemnity of Fed-
eral Government from liability
(a) The President, whenever he determines it to be in the
public interest, is authorized—
(1) through the use of Federal departments, agencies, and
instrumentalities, to clear debris and wreckage resulting from
a major disaster from publicly and privately owned lands and
waters.
(2) to make grants to any State or local government for
the purpose of removing debris or wreckage resulting from a
major disaster from publicly or privately owned lands and
waters.
(b) No authority under this section shall be exercised unless the
affected State or local government shall first arrange an uncondi-
tional authorization for removal of such debris or wreckage from
public and private property, and, in the case of removal of debris
or wreckage from private property, shall first agree to indemnify
the Federal Government against any claim arising from such re-
moval.
Pub.L. 91-606, Title II, § 224, Dec. 31,1970, 84 Stat. 1751.
§ 4435. Fire suppression
The President is authorized to provide assistance, including
grants, to any State for the suppression of any fire on publicly or
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STATUTES AND LEGISLATIVE HISTORY 865
privately owned forest or grassland which threatens such destruc-
tion as would constitute a major disaster.
Pub.L. 91-606, Title II, § 225, Dec. 31, 1970, 84 Stat. 1751.
§ 4436. Temporary housing assistance—Regulations for rent
and sale; sites for mobile and prefabricated homes
(a) The Director is authorized to provide temporary housing or
other emergency shelter, including, but not limited to, mobile
homes or other readily fabricated dwellings for those who, as a
result of such major disaster, require temporary housing or other
emergency shelter, except that for the first twelve months of occu-
pancy no rentals shall be established for any such accommoda-
tions, thereafter rentals shall be established, based upon fair mar-
ket value of the accommodations being furnished, adjusted to take
into consideration the financial ability of the occupant. Notwith-
standing any other provision of law, any such emergency housing
acquired by purchase may be sold directly to individuals and fami-
lies who are occupants thereof at prices that are fair and equita-
ble. Any mobile home or readily fabricated dwelling shall be
placed on a site complete with utilities provided by State or local
government, or by the owner or occupant of the site who was
displaced by the major disaster, without charge to the United
States. However, the Director may elect to provide other more
economical and accessible sites at Federal expense when he deter-
mines such action to be in the public interest.
Temporary mortgage or rent payments; reemployment assistance
(b) The President is authorized to provide assistance on a tem-
porary basis in the form of mortgage or rental payments to or on
behalf of individuals and families who, as a result of financial
hardship caused by a major disaster, have received written notice
of dispossession or eviction from a residence by reason of foreclo-
sure of any mortgage or lien, cancellation of any contract of sale,
or termination of any lease, entered into prior to the disaster.
Such assistance shall be provided for a period of not to exceed one
year or for the duration of the period of financial hardship, which-
ever is the lesser. The President is authorized for the purposes of
this subsection and in furtherance of the purposes of section 4459
of this title, to provide reemployment assistance services under
other laws to individuals who are unemployed as a result of a
major disaster.
Pub.L. 91-606, Title II, § 226, Dec. 31,1970, 84 Stat. 1751.
§ 4451. Small business disaster loans
In the administration of the disaster loan program under sec-
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866 LEGAL COMPILATION—GENERAL
tion 636 (b) (1), (2), and (4) of Title 15, in the case of property
loss or damage or injury resulting from a major disaster as deter-
mined by the President or a disaster as determined by the Admin-
istrator, the Small Business Administration—
(1) to the extent such loss or damage or injury is not
compensated for by insurance or otherwise, (A) shall, on the
part of any loan in excess of $500, cancel the principal of the
loan, except that the total amount so canceled shall not exceed
$2,500, except that this clause (A) shall apply only to loans
made to cover losses and damage and injury resulting from
major disasters as determined by the President, and (B) may
defer interest payments or principal payments, or both, in
whole or in part, on any loan made under this section during
the first three years of the term of the loan except that any
such deferred payments shall bear interest at the rate deter-
mined under section 4453 of this title.
(2) to the extent such injury, loss, or damage is not com-
pensated for by insurance or otherwise, may grant any loan
for repair, rehabilitation, or replacement of property dam-
aged, or destroyed, without regard to whether the required
financial assistance is otherwise available from private
sources.
(3) may, in the case of the total destruction or substantial
property damage of a home or business concern, refinance any
mortgage or other liens outstanding against the destroyed or
damaged property if such property is to be repaired, rehabili-
tated, or replaced, except that the amount refinanced shall not
exceed the amount of the physical loss sustained. Any such
refinancing shall be subject to the provisions of clauses (1)
and (2) of this section.
Pub.L. 91-606, Title II, § 231, Dec. 31, 1970, 84 Stat. 1752.
§ 4452. Emergency farm loans
In the administration of the emergency loan program under
sections 1961 to 1967 of Title 7, and the rural housing loan pro-
gram under section 1472 of this title, in the case of loss or dam-
age, resulting from a major disaster as determined by the Presi-
dent, or a natural disaster as determined by the Secretary of
Agriculture—
(1) to the extent such loss or damage is not compensated
for by insurance or otherwise, (A) shall, on that part of any
loan in excess of $500, cancel the principal of the loan, except
that the total amount so canceled shall not exceed $2,500,
except that this clause (A) shall apply only to loans made to
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STATUTES AND LEGISLATIVE HISTORY 867
cover losses and damage resulting from major disasters as
determined by the President, and (B) may defer interest
payments or principal payments, or both, in whole or in part,
on any loan made under this section during the first three
years of the term of the loan, except that any such deferred
payments shall bear interest at the rate determined under
section 4453 of this title.
(2) to the extent such injury, loss, or damage is not com-
pensated for by insurance or otherwise, may grant any loan
for repair, rehabilitation, or replacement of property dam-
aged or destroyed, without regard to whether the required
financial assistance is otherwise available from private
sources.
(3) may, in the case of the total destruction or substantial
property damage of homes or farm service buildings and re-
lated structures and equipment, refinance any mortgage or
other liens outstanding against the destroyed or damaged
property if such property is to be repaired, rehabilitated, or
replaced, except that the amount refinanced shall not exceed
the amount of the physical loss sustained. Any such refinanc-
ing shall be subject to the provisions of clauses (1) and (2)
of this section.
Pub.L. 91-606, Title II,§ 232, Dec. 31,1970, 84 Stat. 1753.
§ 4453. Disaster loan interests rates
Any loan made under sections 4451, and 4452 of this title shall
not exceed the current cost of repairing or replacing the disaster
injury, loss, or damage in conformity with current codes and spec-
ifications. Any loan made under sections 4451, 4452, 4455 (b) and
4456 of this title shall bear interest at a rate determined by the
Secretary of the Treasury, taking into consideration the current
average market yield on outstanding marketable obligations of the
United States with remaining periods to maturity of ten to twelve
years reduced by not to exceed 2 percentum per annum. In no
event shall any loan made under this section bear interest at a rate
in excess of 6 per centum per annum.
Pub.L. 91-606, Title II, § 234, Dec. 31,1970, 84 Stat. 1754.
§ 4454. Age of applicant for loans
In the administration of any Federal Disaster loan program
under the authority of section 4451, 4452 of this title, or 233 of
this Act, the age of any adult loan applicant shall not be consid-
ered in determining whether such loan should be made or the
amount of such loan.
Pub.L. 91-606, Title II, § 235, Dec. 31,1970, 84 Stat. 1754.
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868 LEGAL COMPILATION—GENERAL
§ 4455. Rescheduling and refinancing of federal loans
(a) In addition to the loan extension authority provided in
section 912 of Title 7, the Secretary of Agriculture is authorized
to adjust and readjust the schedules for payment of principal and
interests on loans to borrowers under programs administered by
the Rural Electrification Administration, and to extend the matu-
rity date of any such loan to a date not beyond forty years from
the date of such loan where he determines such action is necessary
because of the impairment of the economic feasibility of the sys-
tem, or the loss, destruction, or damage of the property of such
borrowers as a result of a major disaster.
(b) The Secretary of Housing and Urban Development is au-
thorized to refinance any note or other obligation which is held by
him in connection with any loan made by the Department of Hous-
ing and Urban Development or its predecessor in interest, or
which is included within the revolving fund for liquidating pro-
grams established by the Independent Offices Appropriation Act of
1955, where he finds such refinancing necessary because of the
loss, destruction, or damage (as a result of a major disaster) to
property or facilities securing such obligations. The Secretary
may authorize a suspension in the payment of principal and inter-
est charges on, and an additional extension in the maturity of, any
such loan for a period not to exceed five years if he determines
that such action is necessary to avoid severe financial hardship.
Pub.L. 91-606, Title II, § 236, Dec. 31, 1970, 84 Stat. 1754.
§ 4456. Aid to major sources of employment
(a) The Small Business Administration in the case of a non-
agricultural enterprise, and the Farmers Home Administration in
the case of an agricultural enterprise, are authorized to provide
any industrial, commercial, agricultural, or other enterprise,
which has constituted a major source of employment in an area
suffering a major disaster and which is no longer in substantial
operation as a result of such disaster, a loan in such amount as
may be necessary to enable such enterprise to resume operations
in order to assist in restoring the economic viability of the disas-
ter area. Loans authorized by this section shall be made without
regard to limitations on the size of loans which may otherwise be
imposed by any other provision of law or regulation promulgated
pursuant thereto.
(b) Assistance under this section shall be in addition to any
other Federal disaster assistance, except that such other assist-
ance may be adjusted or modified to the extent deemed appropri-
ate by the Director under the authority of section 4418 of this
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STATUTES AND LEGISLATIVE HISTORY 869
title. Any loan made under this section shall be subject to the
interest requirements of section 4453 of this title, but the Presi-
dent, if he deems it necessary, may defer payments of principal
and interest for a period not to exceed three years after the date
of the loan. Any such deferred payments shall bear interest at the
rate determined under section 4453 of this title.
Pub.L. 91-606, Title II, § 237, Dec. 31, 1970, 84 Stat. 1754.
§ 4457. Food stamp and surplus commodities program—Persons
eligible; terms and conditions
(a) Whenever the President determines that, as a result of a
major disaster, low-income households are unable to purchase ade-
quate amounts of nutritious food, he is authorized, under such
terms and conditions as he may prescribe, to distribute through the
Secretary of Agriculture coupon allotments to such households
pursuant to the provisions of the Food Stamp Act of 1964 and to
make surplus commodities available pursuant to the provisions of
section 4413 of this title.
Duration of assistance; factors considered
(b) The President, through the Secretary of Agriculture, is
authorized to continue to make such coupon allotments and sur-
plus commodities available to such households for so long as he
determines necessary, taking into consideration such factors as he
deems appropriate, including consequences of the major disaster
on the earning power of the households to which assistance is
made available under this section.
Food stamp provisions unaffected
(c) Nothing in this section shall be construed as amending or
otherwise changing the provisions of the Food Stamp Act of 1964
except as they relate to the availability of food stamps in a major
disaster area.
Pub.L. 91-606, Title II, § 238, Dec. 31, 1970, 84 Stat. 1755.
§ 4458. Legal services
Whenever the Director determines that low-income individuals
are unable to secure legal services adequate to meet their needs as
a consequence of a major disaster, consistent with the goals of the
programs authorized by this chapter, the Director shall assure
that such programs are conducted with the advice and assistance
of appropriate Federal agencies and State and local bar associa-
tions.
Pub.L. 91-606, Title II, § 239, Dec. 31,1970, 84 Stat. 1755.
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870 LEGAL COMPILATION—GENERAL
§ 4459. Unemployment assistance; limitation of amount and
duration to payments under State unemployment compensation;
reduction of payments
The President is authorized to provide to any individual unem-
ployed as a result of a major disaster, such assistance as he deems
appropriate while such individual is unemployed. Such assistance
as the President shall provide shall not exceed to l maximum
amount and the maximum duration of payment under the unem-
ployment compensation program of the State in which the disaster
occurred, and the amount of assistance under this section to any
such individual shall be reduced by any amount of unemployment
compensation or of private income protection insurance compensa-
tion available to such individual for such period of unemployment.
Pub.L. 91-606, Title II, § 240, Dec. 31,1970, 84 Stat. 1755.
§ 4460. Community disaster grants to local governments; limits;
computation of loss
The President is authorized to make grants to any local govern-
ment which, as the result of a major disaster, has suffered a
substantial loss of property tax revenue (both real and personal).
Grants made under this section may be made for the tax year in
which the disaster occurred and for each of the following two tax
years. The grant for any tax year shall not exceed the difference
between the annual average of all property tax revenues received
by the local government during the three-tax-year period immedi-
ately preceding the tax year in which the major disaster occurred
and the actual property tax revenue received by the local govern-
ment for the tax year in which the disaster occurred and for each
of the two tax years following the major disaster but only if there
has been no reduction in the tax rates and the tax assessment
valuation factors of the local government. If there has been a re-
duction in the tax rates or the tax assessment valuation factors
then, for the purpose of determining the amount of a grant under
this section for the year or years when such reduction is in effect,
the President shall use the tax rates and tax assessment valuation
factors of the local government in effect at the time of the disaster
without reduction, in order to determine the property tax revenues
which would have been received by the local government but for
such reduction.
Pub.L. 91-606, Title II, § 241, Dec. 31,1970, 84 Stat. 1756.
§ 4461. Timber sale contracts—Cost-sharing arrangement
(a) Where an existing timber sale contract between the Secre-
1 So in original.
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STATUTES AND LEGISLATIVE HISTORY 871
tary of Agriculture or the Secretary of the Interior and a timber
purchaser does not provide relief from major physical change not
due to negligence of the purchaser prior to approval of construc-
tion of any section of specified road or of any other specified
development facility and, as a result of a major disaster, a major
physical change results in additional construction work in connec-
tion with such road or facility by such purchaser with an esti-
mated cost, as determined by the appropriate Secretary, (1) of
more than $1,000 for sales under one million board feet, (2) of
more than $1 per thousand board feet for sales of one of three
million board feet, or (3) of more than $3,000 for sales over three
million board feet, such increased construction cost shall be borne
by the United States.
Cancellation of authority
(b) If the Secretary determines that damages are so great that
restoration, reconstruction, or construction is not practical under
the cost-sharing arrangement authorized by subsection (a) of this
section, the Secretary may allow cancellation of the contract not-
withstanding contrary provisions therein.
Public notice of sale
(c) The Secretary of Agriculture is authorized to reduce to
seven days the minimum period of advanced public notice required
by section 476 of Title 16, in connection with the sale of timber
from national forests, whenever the Secretary determines that
(1) the sale of such timber will assist in the construction of any
area of a State damaged by a major disaster, (2) the sale of such
timber will assist in sustaining the economy of such area, or (3)
the sale of such timber is necessary to salvage the value of timber
damaged in such major disaster or to protect undamaged timber.
State grants for removal of damaged timber; reimbursement of
expenses limited to salvage value of removed timber
(d) The President, when he determines it to be in the public
interest, and acting through the Director of Emergency Prepared-
ness, is authorized to make grants to any State or local govern-
ment for the purpose of removing from privately owned lands
timber damaged as a result of a major disaster, and such State or
local government is authorized upon application, to make pay-
ments out of such grants to any person for reimbursement of
expenses actually incurred by such person in the removal of dam-
aged timber, not to exceed the amount that such expenses exceed
the salvage value of such timber.
Pub.L. 91-606, Title II, § 242, Dec. 31,1970, 84 Stat. 1756.
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872 LEGAL COMPILATION—GENERAL
§ 4462. Standards for residential structure restoration
No loan or grant made by any relief organization operating
under the supervision of the Director, for the repair, restoration,
reconstruction, or replacement of any residential structure located
in a major disaster area shall be made unless such structure will
be repaired, restored, reconstructed, or replaced in accordance
with applicable standards of safety, decency, and sanitation and in
conformity with applicable building codes and specifications.
Pub.L. 91-606, Title II, § 243, Dec. 31,1970, 84 Stat. 1757.
§ 4481. Repair and restoration of damaged United States facili-
ties; availability of funds
The President may authorize any Federal agency to repair, re-
construct, restore, or replace any facility owned by the United
States and under the jurisdiction of such agency which is dam-
aged or destroyed by any major disaster if he determines that
such repair, reconstruction, restoration, or replacement is of such
importance and urgency that it cannot reasonably be deferred
pending the enactment of specific authorizing legislation or the
making of an appropriation for such purposes. In order to carry
out the provisions of this section, such repair, reconstruction, res-
toration, or replacement may be begun notwithstanding a lack or
an insufficiency of funds appropriated for such purpose, where
such lack or insufficiency can be remedied by the transfer, in
accordance with law, of funds appropriated to that agency for
another purpose.
Pub.L. 91-606, Title II, § 251, Dec. 31, 1970, 84 Stat. 1757.
§ 4482. Restoration of State and local public facilites—Eligible
costs
(a) The President is authorized to make contributions to State
or local governments to repair, restore, reconstruct, or replace
public facilities belonging to such State or local governments
which were damaged or destroyed by a major disaster, except that
the Federal contribution therefor shall not exceed 100 per centum
of the net cost of repairing, restoring, reconstructing, or replacing
any such facility on the basis of the design of such facility as it
existed immediately prior to such disaster and in conformity with
applicable codes, specifications, and standards.
Public facilities under completion at the time of disaster
(b) In the case of any such public facilities which were in the
process of construction when damaged or destroyed by a major
disaster, the Federal contribution shall not exceed 50 per centum
of the net costs of restoring such facilities substantially to their
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STATUTES AND LEGISLATIVE HISTORY 873
prior to such disaster condition and of completing construction not
performed prior to the major disaster to the extent the increase of
such cost over the original construction cost is attributable to
changed conditions resulting from a major disaster.
Definition
(c) For the purposes of this section "public facility" includes
any flood control, navigation, irrigation, reclamation, public power,
sewage treatment and collection, water supply and distribution,
watershed development, or airport facility, any non-Federal-aid
street, road, or highway, and any other public building, structure
or system, other than one used exclusively for recreation purposes.
Pub.L. 91-606, Title II, § 252, Dec. 31, 1970, 84 Stat. 1757.
§ 4483. Priority to applications for public facility and public
housing assistance in major disaster areas
In the processing of applications for assistance, priority and
immediate consideration may be given, during such period, not to
exceed six months, as the President shall prescribe by proclama-
tion, to applications from public bodies situated in major disaster
areas, under the following Acts:
(1) title II of the Housing Amendments of 1955, or any
other Act providing assistance for repair, construction, or
extension of public facilities;
(2) the United States Housing Act of 1937 for the provi-
sion of low-rent housing;
(3) section 462 of Title 40 for assistance in public works
planning;
(4) section 3102 of this title providing for grants for pub-
lic facilities; or
(5) section 1926 of Title 7.
Pub.L. 91-606, Title II, § 253, Dec. 31,1970, 84 Stat. 1758.
§ 4484. Relocation assistance
Notwithstanding any other provision of law, no person other-
wise eligible for any kind of relocation assistance payment author-
ized under section 1465 of this title shall be denied such eligibility
as result of his being unable, because of a major disaster as
determined by the President, to reoccupy property from which he
was displaced by such disaster.
Pub.L. 91-606, Title II, § 254, Dec. 31,1970, 84 Stat. 1758.
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874 LEGAL COMPILATION—GENERAL
1.8a THE ADMINISTRATION OF DISASTER ASSISTANCE
December 31, 1970, P.L. 91-606, Title II, 84 Stat. 1746
TITLE II—THE ADMINISTRATION OF DISASTER
ASSISTANCE
FEDERAL COORDINATING OFFICER
Sec. 201. (a) Immediately upon his designation of a major
disaster area, the President shall appoint a Federal coordinating
officer to operate under the Office of Emergency Preparedness in
such area.
(b) In order to effectuate the purposes of this Act, the coordi-
nating officer, within the designated area, shall
(1) make an initial appraisal of the types of relief most
urgently needed;
(2) establish such field offices as he deems necessary and as
are authorized by the Director;
(3) coordinate the administration of relief, including activ-
ities of the American National Red Cross, the Salvation
Army, the Mennonite Disaster Service, and other relief or
disaster assistance organizations which agree to operate
under his advice or direction, except that nothing contained
in this Act shall limit or in any way affect the responsibilities
of the American National Red Cross under the Act of Janu-
ary 5, 1905, as amended (33 Stat. 599) ; and
(4) take such other action, consistent with authority dele-
gated to him by the Director, and consistent with the provi-
sions of this Act, as he may deem necessary to assist local
citizens and public officials in promptly obtaining assistance
to which they are entitled.
EMERGENCY SUPPORT TEAMS
Sec. 202. The Director is authorized to form emergency support
teams of Federal personnel to be deployed in a major disaster
area. Such emergency support teams shall assist the Federal coor-
dinating officer in carrying out his responsibilities pursuant to
section 201 (b) of this Act. Upon request of the Director, the head
of any Federal department or agency is authorized to detail to
temporary duty with the emergency support teams on either a
reimbursable or nonreimbursable basis, as is determined necessary
by the discretion of the Director, such personnel within the admin-
istrative jurisdiction of the head of the Federal department or
agency as the Director may need or believe to be useful for carry-
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STATUTES AND LEGISLATIVE HISTORY 875
ing out the functions of the emergency support teams, each such
detail to be without loss of seniority, pay, or other employee sta-
tus.
[p. 1746]
COOPERATION OF FEDERAL AGENCIES IN RENDERING
EMERGENCY ASSISTANCE
Sec. 203. (a) In any major disaster, Federal agencies are here-
by authorized, on direction of the President, to provide assistance
by-
(1) utilizing or lending, with or without compensation
therefor, to States and local governments, their equipment,
supplies, facilities, personnel, and other resources, other than
the extension of credit under the authority of any Act;
(2) distributing or rendering, through the American Na-
tional Red Cross, the Salvation Army, the Mennonite Disaster
Service, and other relief and disaster assistance organiza-
tions, or otherwise, medicine, food, and other consumable sup-
plies, or emergency assistance;
(3) donating or lending equipment and supplies determined
in accordance with applicable laws to be surplus to the needs
and responsibilities of the Federal Government to State and
local governments for use or distribution by them for the
purposes of this Act; and
(4) performing on public or private lands or waters any
emergency work essential for the protection and preservation
of life and property, including—
(A) clearing and removing debris and wreckage in
accordance with section 224;
(B) making repairs to, restoring to service, or replac-
ing public facilities (including street, road, and highway
facilities) of State and local governments damaged or
destroyed by a major disaster, except that the Federal
contributions therefor shall not exceed the net cost of
restoring each such facility on the basis of the design of
such facility as it existed immediately prior to the disas-
ter in conformity with current codes, specifications, and
standards;
(C) providing emergency shelter for individuals and
families who, as a result of a major disaster, require
such assistance; and
(D) making contributions to State or local govern-
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876 LEGAL COMPILATION—GENERAL
merits for the purpose of carrying out the provisions of
paragraph (4).
(b) Emergency work performed under subsection (a) (4) of
this section shall not preclude Federal assistance under any other
section of this Act.
(c) Federal agencies may be reimbursed for expenditures under
this Act from funds appropriated for the purposes of this Act.
Any funds received by Federal agencies as reimbursement for
services or supplies furnished under the authority of this section
shall be deposited to the credit of the appropriation or appropria-
tions currently available for such services or supplies.
(d) The Federal Government shall not be liable for any claim
based upon the exercise or performance or the failure to exercise
or perform a discretionary function or duty on the part of a
Federal agency or an employee of the Federal Government in
carrying out the provisions of this section.
(e) In carrying out the purposes of this Act, any Federal
agency is authorized to accept and utilize the services or facilities
of any State or local government, or of any agency, office, or
employee thereof, with the consent of such government. Any Fed-
eral agency, in performing any activities under this section, is
authorized to appoint and fix the compensation of such temporary
personnel as may be necessary, without regard to the provisions of
title 5, United States Code, governing appointments in the compet-
itive service, and without regard to the provisions of chapter 51
and subchapter III of such title relating to classification and Gen-
eral Schedule pay rates, to employ experts and consultants in
accordance with the provisions of section 3109 of such title, and to
incur obligations on behalf of the United States by contract or
otherwise for the acquisition, rental, or hire of equipment, serv-
ices, materials, and supplies for shipping, drayage, travel, and
communication, and for the supervision and administration of
such activities. Such obligations, including obligations arising out
of the temporary employment of additional personnel, may be
incurred by an agency in such amount as may be made available to
it by the President.
(f) In the interest of providing maximum mobilization of Fed-
eral assistance under this Act, the President is authorized to coor-
dinate in such manner as he may determine the activities of Fed-
eral agencies in providing disaster assistance. The President may
direct any Federal agency, with or without reimbursement, to
utilize its available personnel, equipment, supplies, facilities, and
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STATUTES AND LEGISLATIVE HISTORY 877
other resources in accordance with the authority herein contained.
The President may prescribe such rules and regulations as may be
necessary and proper to carry out any of the provisions of this
Act, and he may exercise any power or authority conferred on him
by any section of this Act either directly or through such Federal
agency as he may designate.
(g) The President, acting through the Office of Emergency Pre-
paredness, shall conduct periodic reviews (at least annually) of
the activities of Federal and State departments or agencies pro-
viding disaster assistance, in order to assure maximum coordina-
tion of such programs, and to evaluate progress being made in the
development of Federal, State, and local preparedness to cope with
major disasters.
(h) The Director of the Office of Emergency Preparedness is
authorized and directed to make in cooperation with the heads of
other affected Federal and State agencies, a full and complete
investigation and study for the purpose of determining what addi-
tional or improved plans, procedures, and facilities are necessary
to provide immediate effective action to prevent or minimize losses
of publicly or privately owned property and personal injuries or
deaths which could result from fires (forest and grass), earth-
quakes, tornadoes, freezes and frosts, tsunami, storm surges and
tides, and floods, which are or threaten to become major disasters.
Not later than one year after the date of enactment of this subsec-
tion, and from time to time, the Director of the Office of Emer-
gency Preparedness shall report to Congress the findings of this
study and investigation together with his recommendations with
respect thereto.
USE OF LOCAL FIRMS AND INDIVIDUALS
Sec. 204. In the expenditure of Federal funds for debris clear-
ance, distribution of supplies, reconstruction, and other major dis-
aster assistance activities which may be carried out by contract
with private organizations, firms, or individuals, preference shall
be given, to the extent feasible and practicable, to those organiza-
tions, firms, and individuals who reside or do business primarily in
the disaster area.
FEDERAL GRANT-IN-AID PROGRAMS
Sec. 205. Any Federal agency charged with the administration
of a Federal grant-in-aid program is authorized, if so requested by
the applicant State or local authorities, to modify or waive, for the
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878 LEGAL COMPILATION—GENERAL
duration of a major disaster proclamation, such administrative
procedural conditions for assistance as would otherwise prevent
the giving of assistance under such programs if the inability to
meet such conditions is a result of the disaster.
STATE DISASTER PLANS
Sec. 206. (a) The President is authorized to provide assistance
to the States in developing comprehensive plans and practicable
programs for preparation against major disasters, and for relief
and assistance for individuals, businesses, and local governments
following such disasters. Such plans should include long-range
recovery and reconstruction assistance plans for seriously dam-
aged or destroyed public and private facilities.
(b) The President is authorized to make grants of not more
than $250,000 to any State, upon application therefor, for not to
exceed 50 per centum of the cost of developing such plans and
programs.
(c) Any State desiring assistance under this section shall desig-
nate or create an agency which is specially qualified to plan and
administer such a disaster relief program, and shall, through such
agency, submit a State plan to the President, which shall—
(1) set forth a comprehensive and detailed State program
for preparation against, and relief following, a major disas-
ter, including provisions for emergency and long-term assist-
ance to individuals, businesses, and local governments; and
(2) include provision for the appointment of a State coor-
dinating officer to act in cooperation with the Federal coordi-
nating officer appointed-under section 201 of this Act.
(d) From time to time the Director shall make a report to the
President, for submission to the Congress, containing his recom-
mendations for programs for the Federal role in the implementa-
tion and funding of comprehensive disaster relief plans, and such
other recommendations relating to the Federal role in disaster
relief activities as he deems warranted.
(e) The President is authorized to make grants not to exceed 50
per centum of the cost of improving, maintaining, and updating
State disaster assistance plans, except that no such grant shall
exceed $25,000 per annum to any State.
USE AND COORDINATION OF RELIEF ORGANIZATIONS
Sec. 207. (a) In providing relief and assistance following a
major disaster, the Director may utilize, with their consent, the
personnel and facilities of the American National Red Cross, the
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STATUTES AND LEGISLATIVE HISTORY 879
Salvation Army, the Menonnite Disaster Service, and other relief
or disaster assistance organizations, in the distribution of medi-
cine, food, supplies, or other items, and in the restoration, rehabil-
itation, or reconstruction of community services and essential facil-
ities whenever the Director finds that such utilization is necessary.
(b) The Director is authorized to enter into agreements with
the American National Red Cross, the Salvation Army, the Men-
nonite Disaster Service, and other relief or disaster assistance
organizations under which the disaster relief activities of such
organizations may be coordinated by the Federal coordinating of-
ficer whenever such organizations are engaged in providing relief
during and after a major disaster. Any such agreement shall in-
clude provisions conditioning use of the facilities of the Office of
Emergency Preparedness and the services of the coordinating of-
ficer upon compliance with regulations promulgated by the Direc-
tor under sections 208 and 209 of this Act, and such other regula-
tions as the Director may require.
[p. 1749]
DUPLICATION OF BENEFITS
Sec. 208. (a) The Director, in consultation with the head of
each Federal agency administering any program providing finan-
cial assistance to persons, business concerns, or other entities suf-
fering losses as the result of a major disaster, shall assure that no
such person, business concern, or other entity will receive such
assistance with respect to any part of such loss as to which he has
received financial assistance under any other program.
(b) The Director shall assure that no person, business concern,
or other entity receives any Federal assistance for any part of a
loss suffered as the result of a major disaster if such person,
concern, or entity received compensation from insurance or any
other source for that part of such a loss. Partial compensation for
a loss or a part of a loss resulting from a major disaster shall not
preclude additional Federal assistance for any part of such a loss
not compensated otherwise.
(c) Whenever the Director determines (1) that a person, busi-
ness concern, or other entity has received assistance under this
Act for a loss and that such person, business concern or other
entity received assistance for the same loss from another source,
and (2) that the amount received from all sources exceeded the
amount of the loss, he shall direct such person, business concern,
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880 LEGAL COMPILATION—GENERAL
or other entity to pay to the Treasury an amount, not to exceed
the amount of Federal assistance received, sufficient to reimburse
the Federal Government for that part of the assistance which he
deems excessive.
NONDISCRIMINATION IN DISASTER ASSISTANCE
Sec. 209. (a) The Director shall issue, and may alter and
amend, such regulations as may be necessary for the guidance of
personnel carrying out emergency relief functions at the site of a
major disaster. Such regulations shall include provisions for in-
suring that the distribution of supplies, the processing of applica-
tions, and other relief and assistance activities shall be accom-
plished in an equitable and impartial manner, without discrimina-
tion on the grounds of race, color, religion, nationality, sex, age, or
economic status prior to a major disaster.
(b) As a condition of participation in the distribution of assist-
ance or supplies under section 207, relief organizations shall be
required to comply with regulations relating to nondiscrimination
promulgated by the Director, and such other regulations applica-
ble to activities within a major disaster area as he deems neces-
sary for the effective coordination of relief efforts.
DISASTER WARNINGS
Sec. 210. The President is authorized to utilize or to make avail-
able to Federal, State, and local agencies the facilities of the civil
defense communications system established and maintained pur-
suant to section 201 (c) of the Federal Civil Defense Act of 1950,
as amended (50 U.S.C.App.2281 (c)), for the purpose of providing
needed warning to governmental authorities and the civilian popu-
lation in areas endangered by imminent major disasters.
[p. 1750]
PREDISASTER ASSISTANCE
Sec. 221. If the President determines that a major disaster is
imminent, he is authorized to use Federal departments, agencies,
and instrumentalities, and all other resources of the Federal Gov-
ernment to avert or lessen the effects of such disaster before its
actual occurrence.
EMERGENCY COMMUNICATIONS
Sec. 222. The Director is authorized during, or in anticipation
of, an emergency to establish temporary communications in any
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STATUTES AND LEGISLATIVE HISTORY 881
major disaster area in order to cary out the functions of his office,
and to make such communications available to State and local
government officials and other persons as he deems appropriate.
EMERGENCY PUBLIC TRANSPORTATION
Sec. 223. The Director is authorized to provide temporary public
transportation service to meet emergency needs in a major disas-
ter area. Such service will provide transportation to governmental
offices, supply centers, stores, post offices, schools, major employ-
ment centers, and such other places as may be necessary in order
to enable the community to resume its normal pattern of life as
soon as possible.
DEBRIS REMOVAL
Sec. 224. (a) The President, whenever he determines it to be in
the public interest, is authorized—
(1) through the use of Federal departments, agencies, and
instrumentalities, to clear debris and wreckage resulting from
a major disaster from publicly and privately owned lands and
waters.
(2) to make grants to any State or local government for
the purpose of removing debris or wreckage resulting from a
major disaster from publicly or privately owned lands and
waters.
(b) No authority under this section shall be exercised unless the
affected State or local government shall first arrange an uncondi-
tional authorization for removal of such debris or wreckage from
public and private property, and, in the case of removal of debris
or wreckage from private property, shall first agree to indemnify
the Federal Government against any claim arising from such re-
moval.
PIRE SUPPRESSION GRANTS
Sec. 225. The President is authorized to provide assistance, in-
cluding grants, to any State for the suppression of any fire on
publicly or privately owned forest or grassland which threatens
such destruction as would constitute a major disaster.
TEMPORARY HOUSING ASSISTANCE
Sec. 226. (a) The Director is authorized to provide temporary
housing or other emergency shelter, including, but not limited to,
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882 LEGAL COMPILATION—GENERAL
mobile homes or other readily fabricated dwellings for those who,
as a result of such major disaster, require temporary housing or
other emergency shelter, except that for the first twelve months of
occupancy no rentals shall be established for any such accommoda-
tions, thereafter rentals shall be established, based upon fair mar-
ket value of the accommodations being furnished, adjusted to take
into consideration the financial ability of the occupant. Notwith-
standing any other provision of law, any such emergency housing
acquired by purchase may be sold directly to individuals and fami-
lies who are occupants thereof at prices that are fair and equita-
ble. Any mobile home or readily fabricated dwelling shall be
placed on a site complete with utilities provided by State or local
[p. 1751]
government, or by the owner or occupant of the site who was
displaced by the major disaster, without charge to the United
States. However, the Director may elect to provide other more
economical and accessible sites at Federal expense when he deter-
mines such action to be in the public interest.
(b) The President is authorized to provide assistance on a tem-
porary basis in the form of mortgage or rental payments to or on
behalf of individuals and families who, as a result of financial
hardship caused by a major disaster, have received written notice
of dispossession or eviction from a residence by reason of foreclo-
sure of any mortgage or lien, cancellation of any contract of sale,
or termination of any lease, entered into prior to the disaster.
Such assistance shall be provided for a period of not to exceed one
year or for the duration of the period of financial hardship, which-
ever is the lesser. The President is authorized for the purposes of
this subsection and in furtherance of the purposes of section 240
of this Act, to provide reemployment assistance services under
other laws to individuals who are unemployed as a result of a
major disaster.
SMALL BUSINESS DISASTER LOANS
Sec. 231. In the administration of the disaster loan program
under section 7(b) (1), (2), and (4) of the Small Business Act,
as amended (15 U.S.C. 636(b)), in the case of property loss or
damage or injury resulting from a major disaster as determined
by the President or a disaster as determined by the Administrator,
the Small Business Administration—
(1) to the extent such loss or damage or injury is not
compensated for by insurance or otherwise, (A) shall, on that
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STATUTES AND LEGISLATIVE HISTORY 883
part of any loan in excess of $500, cancel the principal of the
loan, except that the total amount so canceled shall not exceed
$2,500, except that this clause (A) shall apply only to loans
made to cover losses and damage and injury resulting from
major disasters as determined by the President, and (B) may
defer interest payments or principal payments, or both, in
whole or in part, on any loan made under this section during
the first three years of the term of the loan except that any
such deferred payments shall bear interest at the rate deter-
mined under section 234 of this Act.
(2) to the extent such injury, loss, or damage is not com-
pensated for by insurance or otherwise, may grant any loan
for repair, rehabilitation, or replacement of property dam-
aged, or destroyed, without regard to whether the required
financial assistance is otherwise available from private
sources.
(3) may, in the case of the total destruction or substantial
property damage of a home or business concern, refinance any
mortgage or other liens outstanding against the destroyed or
damaged property if such property is to be repaired, rehabili-
tated, or replaced, except that the amount refinanced shall not
exceed the amount of the physical loss sustained. Any such
refinancing shall be subject to the provisions of clauses (1)
and (2) of this section.
[p. 1752]
FARMERS HOME ADMINISTRATION EMERGENCY LOANS
Sec. 232. In the administration of the emergency loan program
under subtitle C of the Consolidated Farmers Home Administra-
tion Act of 1961, as amended (7 U.S.C. 1961-1967), and the rural
housing loan program under section 502 of title V of the Housing
Act of 1949, as amended (42 U.S.C. 1472), in the case of loss or
damage, resulting from a major disaster as determined by the
President or a natural disaster as determined by the Secretary of
Agriculture—
(1) to the extent such loss or damage is not compensated
for by insurance or otherwise, (A) shall, on that part of any
loan in excess of $500, cancel the principal of the loan, except
that the total amount so canceled shall not exceed $2,500,
except that this clause (A) shall apply only to loans made to
cover losses and damage resulting from major disasters as
determined by the President, and (B) may defer interest
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884 LEGAL COMPILATION—GENERAL
payments or principal payments, or both, in whole or in part,
on any loan made under this section during the first three
years of the term of the loan, except that any such deferred
payments shall bear interest at the rate determined under
section 234 of this Act.
(2) to the extent such injury, loss, or damage is not com-
pensated for by insurance or otherwise, may grant any loan
for repair, rehabilitation, or replacement of property dam-
aged or destroyed, without regard to whether the required
financial assistance is otherwise available from private
sources.
(3) may, in the case of the total destruction or substantial
property damage of homes or farm service buildings and re-
lated structures and equipment, refinance any mortgage or
other liens outstanding against the destroyed or damaged
property if such property is to be repaired, rehabilitated, or
replaced, except that the amount refinanced shall not exceed
the amount of the physical loss sustained. Any such refinanc-
ing shall be subject to the provisions of clauses (1) and (2)
of this section.
LOANS HELD BY THE VETERANS' ADMINISTRATION
Sec. 233. (1) Section 1820 (a) (2) of title 38, United States
Code,73 is amended to read as follows:
"(2) subject to specific limitations in this chapter, consent
to the modification, with respect to rate of interest, time of
payment of principal or interest or any portion thereof, secu-
rity or other provisions of any note, contract, mortgage or
other instrument securing a loan which has been guaranteed,
insured, made or acquired under this chapter;"
(2) Section 1820 (f) of title 38, United States Code, is amended
to read as follows:
"(f) Whenever loss, destruction, or damage to any residential
property securing loans guaranteed, insured, made, or acquired by
the Administrator under this chapter occurs as the result of a
major disaster as determined by the President under the Disaster
Assistance Act of 1970, the Administrator shall (1) provide coun-
seling and such other service to the owner of such property as may
be feasible and shall inform such owner concerning the disaster
assistance available from other Federal agencies and from State
or local agencies, and (2) pursuant to subsection (a) (2) of this
section, extend on an individual case basis such forbearance or
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STATUTES AND LEGISLATIVE HISTORY 885
indulgence to such owner as the Administrator determines to be
warranted by the facts of the case and the circumstances of such
owner."
[p. 1753]
DISASTER LOAN INTEREST RATES
Sec. 234. Any loan made under sections 231, and 232 of this Act
shall not exceed the current cost of repairing or replacing the
disaster injury, loss, or damage in conformity with current codes
and specifications. Any loan made under sections 231, 232, 236 (b)
and 237 of this Act shall bear interest at a rate determined by the
Secretary of the Treasury, taking into consideration the current
average market yield on outstanding marketable obligations of the
United States with remaining periods to maturity of ten to twelve
years reduced by not to exceed 2 percentum per annum. In no
event shall any loan made under this section bear interest at a rate
in excess of 6 per centum per annum.
AGE OF APPLICANT FOR LOANS
Sec. 235. In the administration of any Federal disaster loan
program under the authority of section 231, 232, or 233 of this
Act, the age of any adult loan applicant shall not be considered in
determining whether such loan should be made or the amount of
such loan.
FEDERAL LOAN ADJUSTMENTS
Sec. 236. (a) In addition to the loan extension authority pro-
vided in section 12 of the Rural Electrification Act, the Secretary
of Agriculture is authorized to adjust and readjust the schedules
for payment of principal and interest on loans to borrowers under
programs administered by the Rural Electrification Administra-
tion, and to extend the maturity date of any such loan to a date
not beyond forty years from the date of such loan where he deter-
mines such action is necessary because of the impairment of the
economic feasibility of the system, or the loss, destruction, or
damage of the property of such borrowers as a result of a major
disaster.
(b) The Secretary of Housing and Urban Development is au-
thorized to refinance any note or other obligation which is held by
him in connection with any loan made by the Department of Hous-
ing and Urban Development or its predecessor in interest, or
which is included within the revolving fund for liquidating pro-
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886 LEGAL COMPILATION—GENERAL
grams established by the Independent Offices Appropriation Act of
1955, where he finds such refinancing necessary because of the
loss, destruction, or damage (as a result of a major disaster) to
property or facilities securing such obligations. The Secretary
may authorize a suspension in the payment of principal and inter-
est charges on, and an additional extension in the maturity of, any
such loan for a period not to exceed five years if he determines
that such action is necessary to avoid severe financial hardship.
AID TO MAJOR SOURCES OP EMPLOYMENT
Sec. 237. (a) The Small Business Administration in the case of
a nonagricultural enterprise, and the Farmers Home Administra-
tion in the case of an agricultural enterprise, are authorized to
provide any industrial, commercial, agricultural, or other enter-
prise, which has constituted a major source of employment in an
area suffering a major disaster and which is no longer in substan-
tial operation as a result of such disaster, a loan in such amount as
may be necessary to enable such enterprise to resume operations
in order to assist in restoring the economic viability of the disas-
ter area. Loans authorized by this section shall be made without
regard to limitations on the size of loans which may otherwise be
imposed by any other provision of law or regulation promulgated
pursuant thereto.
(b) Assistance under this section shall be in addition to any
other Federal disaster assistance, except that such other assist-
ance may be adjusted or modified to the extent deemed appropri-
ate by the Director under the authority of section 208 of this Act.
Any loan made under this section shall be subject to the interest
requirements of section 234 of this Act, but the President, if he
deems it necessary, may defer payments of principal and interest
for a period not to exceed three years after the date of the loan.
Any such deferred payments shall bear interest at the rate deter-
mined under section 234 of this Act.
[p. 1754]
FOOD COUPONS AND DISTRIBUTION
Sec. 238. (a) Whenever the President determines that, as a )
result of a major disaster, low-income households are unable to \
purchase adequate amounts of nutritious food, he is authorized,
under such terms and conditions as he may prescribe, to distribute
through the Secretary of Agriculture coupon allotments to such
households pursuant to the provisions of the Food Stamp Act of
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STATUTES AND LEGISLATIVE HISTORY 887
1964 and to make surplus commodities available pursuant to the
provisions of section 203 of this Act.
(b) The President, through the Secretary of Agriculture, is
authorized to continue to make such coupon allotments and sur-
plus commodities available to such households for so long as he
determines necessary, taking into consideration such factors as he
deems appropriate, including the consequences of the major disas-
ter on the earning power of the households to which assistance is
made available under this section.
(c) Nothing in this section shall be construed as amending or
otherwise changing the provisions of the Food Stamp Act of 1964
except as they relate to the availability of food stamps in a major
disaster area.
LEGAL SERVICES
Sec. 239. Whenever the Director determines that low-income
individuals are unable to secure legal services adequate to meet
their needs as a consequence of a major disaster, consistent with
the goals of the programs authorized by this Act, the Director
shall assure that such programs are conducted with the advice and
assistance of appropriate Federal agencies and State and local bar
associations.
UNEMPLOYMENT ASSISTANCE
Sec. 240. The President is authorized to provide to any individ-
ual unemployed as a result of a major disaster, such assistance as
he deems appropriate while such individual is unemployed. Such
assistance as the President shall provide shall not exceed to maxi-
mum amount and the maximum duration of payment under the
unemployment compensation program of the State in which the
disaster occurred, and the amount of assistance under this section
to any such individual shall be reduced by any amount of unem-
ployment compensation or of private income protection insurance
compensation available to such individual for such period of unem-
ployment.
[p. 1755]
COMMUNITY DISASTER GRANTS
Sec. 241. The President is authorized to make grants to any
local government which, as the result of a major disaster, has
suffered a substantial loss of property tax revenue (both real and
personal). Grants made under this section may be made for the
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888 LEGAL COMPILATION—GENERAL
tax year in which the disaster occurred and for each of the follow-
ing two tax years. The grant for any tax year shall not exceed the
difference between the annual average of all property tax revenues
received by the local government during the three-tax-year period
immediately preceding the tax year in which the major disaster
occurred and the actual property tax revenue received by the local
government for the tax year in which the disaster occurred and
for each of the two tax years following the major disaster but only
if there has been no reduction in the tax rates and the tax assess-
ment valuation factors of the local government. If there has been
a reduction in the tax rates or the tax assessment valuation fac-
tors then, for the purpose of determining the amount of a grant
under this section for the year or years when such reduction is in
effect, the President shall use the tax rates and tax assessment
valuation factors of the local government in effect at the time of
the disaster without reduction, in order to determine the property
tax revenues which would have been received by the local govern-
ment but for such reduction.
TIMBER SALE CONTRACTS
Sec. 242. (a) Where an existing timber sale contract between
the Secretary of Agriculture or the Secretary of the Interior and a
timber purchaser does not provide relief from major physical
change not due to negligence of the purchaser prior to approval of
construction of any section of specified road or of any other speci-
fied development facility and, as a result of a major disaster, a
major physical change results in additional construction work in
connection with such road or facility by such purchaser with an
estimated cost, as determined by the appropriate Secretary, (1) of
more than $1,000 for sales under one million board feet, (2) of
more than $1 per thousand board feet for sales of one of three
million board feet, or (3) of more than $3,000 for sales over three
million board feet, such increased construction cost shall be borne
by the United States.
(b) If the Secretary determines that damages are so great that
restoration, reconstruction, or construction is not practical under
the cost-sharing arrangement authorized by subsection (a) of this
section, the Secretary may allow cancellation of the contract not-
withstanding contrary provisions therein.
(c) The Secretary of Agriculture is authorized to reduce to
seven days the minimum period of advance public notice required
by the first section of the Act of June 4, 1897 (16 U.S.C. 476), in
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STATUTES AND LEGISLATIVE HISTORY 889
connection with the sale of timber from national forests, whenever
the Secretary determines that (1) the sale of such timber will
assist in the construction of any area of a State damaged by a
major disaster, (2) the sale of such timber will assist in sustain-
ing the economy of such area, or (3) the sale of such timber is
necessary to salvage the value of timber damaged in such major
disaster or to protect undamaged timber,
(d) The President, when he determines it to be in the public
interest, and acting through the Director of Emergency Prepared-
ness, is authorized to make grants to any State or local govern-
ment for the purpose of removing from privately owned lands
timber damaged as a result of a major disaster, and such State or
local government is authorized upon application, to make pay-
ments out of such grants to any person for reimbursement of
expenses actually incurred by such person in the removal of dam-
aged timber, not to exceed the amount that such expenses exceed
the salvage value of such timber.
[p. 1756]
MINIMUM STANDARDS FOR RESIDENTIAL STRUCTURE RESTORATION
Sec. 243. No loan or grant made by any relief organization
operating under the supervision of the Director, for the repair,
restoration, reconstruction, or replacement of any residential
structure located in a major disaster area shall be made unless
such structure will be repaired, restored, reconstructed, or re-
placed in accordance with applicable standards of safety, decency,
and sanitation and in conformity with applicable building codes
and specifications.
FEDERAL FACILITIES
Sec. 251. The President may authorize any Federal agency to
repair, reconstruct, restore, or replace any facility owned by the
United States and under the jurisdiction of such agency which is
damaged or destroyed by any major disaster if he determines that
such repair, reconstruction, restoration, or replacement is of such
importance and urgency that it cannot reasonably be deferred
pending the enactment of specific authorizing legislation or the
making of an appropriation for such purposes. In order to carry
out the provisions of this section, such repair, reconstruction, res-
toration, or replacement may be begun notwithstanding a lack or
an insufficiency of funds appropriated for such purpose, where
such lack or insufficiency can be remedied by the transfer, in
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890 LEGAL COMPILATION—GENERAL
accordance with law, of funds appropriated to that agency for
another purpose.
STATE AND LOCAL GOVERNMENT FACILITIES
Sec. 252. (a) The President is authorized to make contributions
to State or local governments to repair, restore, reconstruct, or
replace public facilities belonging to such State or local govern-
ments which were damaged or destroyed by a major disaster,
except that the Federal contribution therefor shall not exceed 100
per centum of the net cost of repairing, restoring, reconstructing,
or replacing any such facility on the basis of the design of such
facility as it existed immediately prior to such disaster and in
conformity with applicable codes, specifications, and standards.
(b) In the case of any such public facilities which were in the
process of construction when damaged or destroyed by a major
disaster, the Federal contribution shall not exceed 50 per centum
of the net costs of restoring such facilities substantially to their
prior to such disaster condition and of completing construction not
performed prior to the major disaster to the extent the increase of
such cost over the original construction cost is attributable to
changed conditions resulting from a major disaster.
(c) For the purpose of this section "public facility" includes
any flood control, navigation, irrigation, reclamation, public
power, sewage treatment and collection, water supply and distri-
bution, watershed development, or airport facility, any non-Feder-
al-aid street, road, or highway, and any other public building,
structure, or system, other than one used exclusively for recrea-
tion purposes.
[p. 1757]
PRIORITY TO CERTAIN APPLICATIONS FOR PUBLIC FACILITY AND PUB-
LIC HOUSING ASSISTANCE
Sec. 253. In the processing of applications for assistance, prior-
ity and immediate consideration may be given, during such period,
not to exceed six months, as the President shall prescribe by pro-
clamation, to applications from public bodies situated in major
disaster areas, under the following Acts:
(1) title II of the Housing Amendments of 1955, or any
other Act providing assistance for repair, construction, or
extension of public facilities;
(2) the United States Housing Act of 1937 for the provi-
sion of low-rent housing;
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STATUTES AND LEGISLATIVE HISTORY 891
(3) section 702 of the Housing Act of 1954 for assistance
in public works planning;
(4) section 702 of the Housing and Urban Development
Act of 1965 providing for grants for public facilities; or
(5) section 306 of the Consolidated Farmers Home Ad-
ministration Act.
RELOCATION ASSISTANCE
Sec. 254. Notwithstanding any other provision of law, no person
otherwise eligible for any kind of relocation assistance payment
authorized under section 114 of the Housing Act of 1949 shall be
denied such eligibility as a result of his being unable, because of a
major disaster as determined by the President, to reoccupy prop-
erty from which he was displaced by such disaster.
[p. 1758]
1.8a(l) SENATE COMMITTEE ON PUBLIC WORKS
S. REP. No. 91-1157, 91st Cong., 2d Sess. (1970)
DISASTER ASSISTANCE
AUGUST 31, 1970.—Ordered to be printed
Mr. BAYH, from the Committee on Public Works,
submitted the following
REPORT
together with
INDIVIDUAL VIEWS
[To accompany S. 3619]
The Committee on Public Works, to which was referred the
bill (S. 3619) having considered the same, reports favorably there-
on with an amendment and unanimously recommends that the
bill, as amended, do pass.
PURPOSE OF THE LEGISLATION
The purpose of S. 3619, as reported by the Committee on Public
Works, is to provide a permanent, comprehensive program for
Federal disaster assistance and to strengthen the organization and
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892 LEGAL COMPILATION—GENERAL
administrative machinery needed to implement the program in an
orderly and effective manner. It will enable the Federal Govern-
ment, without further specific Congressional action, to extend
needed emergency relief and recovery assistance to individuals,
organizations, businesses, and States and local communities suf-
fering from a major disaster.
The bill authorizes Federal assistance for private as well as
public losses suffered in a major disaster which the President
determines to be of "sufficient severity and magnitude to warrant
disaster assistance by the Federal Government to supplement the
efforts and available resources of States, local governments and
relief organizations in alleviating the damage, loss, hardship or
suffering caused thereby and respecting which the Governor of
any State in which such catastrophe occurs or threatens to occur
certifies the need for disaster assistance under this Act and gives
assurance of expenditure of a reasonable amount of the funds of
such State, its local governments, or other agencies for the same
or similar purposes with respect to such catastrophe."
[p.l]
As reported by the Committee the bill consolidates into one Act
and repeals the three major existing Federal disaster assistance
laws: the basic 1950 Act (P.L. 875, 81st Congress), the 1966
Disaster Relief Act (P.L. 89-769), and the Disaster Relief Act of
1969 (P.L. 91-79). This consolidation and the proposed broadening
and enlargement of existing statutory provisions are designed to
take into account the experience gained by the Congress and the
Federal and State governments from the devastating catastrophe
caused in August 1969 by Hurricane Camille, the largest known
destructive force of wind and water ever to strike the United
States, as well as the lessons learned from the tornado which
struck Lubbock, Texas, in May this year.
Not only do private individuals who are suddenly and totally
deprived of the means of providing themselves the basic necessi-
ties of life require emergency existence—food, clothing, shelter,
and medical care—but also longer-term recovery assistance must
be provided to such individuals, the sources of their employment
and the communities in which they live.
The bill seeks to coordinate disaster relief and recovery efforts
of all appropriate Federal, State and local authorities, and relief
and disaster assistance organizations under a single, permanent
law, so that when disaster strikes anywhere in the country—as
inevitably it will—the full resources of both public and private
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STATUTES AND LEGISLATIVE HISTORY 893
sectors may be brought to bear to meet the immediate challenge
and to undertake the long, and difficult costly task of repair, reha-
bilitation, reconstruction and replacement.
NEED FOR LEGISLATION
Although Congress has enacted a number of beneficial disaster
relief laws during the past twenty years, most of these have been
limited in scope, temporary in duration and retroactive in re-
sponse to particular catastrophes.
Moreover, tfie basic disaster assistance act of 1950 (P.L. 875,
81st Congress) was directed almost entirely toward the public
sector; even though amendments have been added from time to
time, especially in 1966 and 1969, which were designed to extend a
helping hand to families and businesses, the severe financial losses
and personal hardships often incurred by many helpless victims of
major disasters are compensated by minimal assistance only.
Understandably, much of the present disaster relief legislation
has been piecemeal in nature. Through the years new provisions
have been added in accordance with immediate demonstrated
needs in reaction to specific situations. Moreover, the bulk of the
1969 Act (P.L. 91-79), while general in scope, will expire on
December 31, 1970. Scheduled to terminate on that date are impor-
tant sections dealing with disaster assistance for the repair and
reconstruction of roads and highways not on any Federal-aid sys-
tem; timber sale contracts; the $1,800 forgiveness feature of
Small Business Administration, Farmers Home Administration
and Veterans Administration loans; expanded authority to pro-
vide temporary dwelling; food stamp allotments for low-income
families; and unemployment assistance for those not eligible to
receive compensation under State programs.
The advantages to be gained from codifying the many, diverse
disaster assistance statutes, as well as the need to extend the life
of the essential provisions of the 1969 Act, by themselves are
sufficient justification for a careful examination by Congress of
the whole matter of disaster relief. But there is an even more
[P. 2]
compelling reason for prompt and vigorous action by the national
government in this field. Recent hearings conducted by the Senate
Special Subcommittee on Disaster Relief on the Federal role in
providing assistance to the thousands of people and scores of com-
munities in Mississippi, Louisiana, Alabama, Virginia, and West
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894 LEGAL COMPILATION—GENERAL
Virginia, which suffered devastating losses from Hurricane Cam-
ille, have convinced members of the Committee that certain new
approaches should be considered.
The physical damage caused by Hurricane Camille and the
human problems it created, while doubtless more extensive and
longer lasting, were almost identical in kind with those following
other major disasters. Tornadoes, earthquakes, floods, hurricanes
and other catastrophes have occurred, and no doubt will continue
to occur, in astounding numbers in the United States. During the
last twenty years alone the havoc caused by these natural phenom-
ena has been so great that the President has declared the existence
of major disasters in more than 280 areas, an average of about 14
each year. During the last few years the number has been consid-
erably higher than the average; for instance, there were 25 major
disaster declarations in both 1964 and 1965, 19 in 1968, and an all
time high of 29 was reached in 1969. So far in 1970 there have
been 11 such declarations as of August 4, 1970.
While loss of life and limb has generally decreased, property
losses attributed to violent acts of nature have greatly increased
through the years. The development of sophisticated weather fore-
casting and warning techniques and the ability to track and to
map out the expected path of great storms have permitted the
evacuation of large numbers of people from endangered territories
who otherwise might have been killed or injured.
On the other hand, the concentration of large and expensive
residential, commercial and industrial facilities in relatively small
areas, coupled with general escalation of overall values, has meant
huge increases in property losses incurred by certain major disas-
ters. For instance, the terrible Galveston flood at the beginning of
the 20th century cost more than 6,000 lives but only $30 million
property damage; in contrast, it has been estimated by the Office
of Emergency Preparedness that 69 years later Camille caused
248 deaths but about $1.5 billion in property damages, while early
estimates from Hurricane Celia in Corpus Christi, Texas, in Au-
gust this year indicate only 9 deaths and an estimated $233 million
in property losses.
The fact that economic loss attributed to natural catastrophes
has soared so dramatically points to the need for new approaches
to the problem.
During the last five years more than 100 major disasters have
been decleared by the President of the United States. The response
by Congress and our people has been highly praiseworthy; when
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STATUTES AND LEGISLATIVE HISTORY 895
fellow citizens, or indeed those in foreign countries, have been
stricken by a great catastrophe, the American public has always
been compassionate and generous. That does not mean, however,
that all needs have been met nor that improvements cannot be
made.
The Committee's hearings this year have disclosed certain gaps
in legislative authority and some deficiencies in administrative
organization and operation which should be rectified. Among the
most frequently voiced significant suggestions, complaints, and
needs relating to disaster assistance programs which have come to
[p. 3]
the attention of the Special Subcommittee on Disaster Assistance
are the following:
1. delays and problems encountered in the provision, distri-
bution, and leasing of temporary housing;
2. the insufficiency of insurance coverage and slowness in
settling insurance claims;
3. the need for establishing immediate, effective communi-
cation systems;
4. inadequate centralized, coordinated administration and
supervision;
5. relief for local governments not able to meet bonded
indebtedness, matching requirements under Federal grant-
in-aid programs, or essential public services, because of
diminished tax base;
6. advantages to be gained from previously established
State disaster plans providing systematic programs for refu-
gee evacuation, emergency food and shelter, and longer-range
assistance to individuals, organizations, and communities;
7. need for trained emergency support teams with capabil-
ity of immediate deployment in major disaster areas;
8. need for emergency public transportation systems to
provide access to such vital places as governmental offices,
supply centers, stores, post offices, schools and major employ-
ment facilities;
9. charges of inequitable and discriminatory treatment, by
both public and private agencies;
10. failure to recognize officially more than one charitable
organization for the purpose of distributing goods and com-
modities provided by the United States;
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896 LEGAL COMPILATION—GENERAL
11. lack of adequate dissemination of information and clear
explanation about available benefits; need for assistance in
the preparation of simplified application forms for various
programs; and need for legal assistance for low-income disas-
ter victims; and
12. larger Federal assistance to those whose homes, farms,
and places of business have been damaged or destroyed.
The Committee is pleased to note that Federal agencies under
the leadership of the Office of Emergency Preparedness brought
the full force and scope of the 1969 Disaster Relief Act into action
in the disaster caused by the Lubbock tornado. The agencies ob-
viously had taken advantage of the lessons learned in Camille, and
all indications are that they are continuing this high level of
response in the aftermath of Hurricane Celia.
Congress cannot foresee nor provide in advance for every con-
tingency nor for all the serious problems which inevitably arise
from any major disaster. Nevertheless, every effort should be
made to establish by law full authority for the President and the
various Federal departments and agencies to respond quickly
efficiently, and without unnecessary restrictions when confronted
by a major disaster. It is no longer either expedient or wise for
Congress to attempt to enact separate relief bills each time a
major disaster occurs. Until 1964, most Federal disaster relief
legislation had been given general application, although it author-
ized assistance primarily for public losses. Since then, however,
Congress has enacted special bills for aid after the Alaskan earth-
quake, the Pacific Northwest floods, and Hurricane Betsy. The
1966 and 1969 acts did provide additional aid for the private
[P. 4]
sector, but as mentioned earlier much of the latter will no longer
be in force after this year.
The Committee believes it is time to bring together in one act
the various features of disaster legislation which Congress has
adopted from time to time and to supplement them with additional
assistance and directions which testimony has indicated to be es-
sential.
The following table shows the provisions of existing law that
are extended or amended by S. 3619 and those which have been
added to meet other needs of disaster victims and their communi-
ties.
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STATUTES AND LEGISLATIVE HISTORY
897
Provisions in Existing Law That are
Extended or Amended in S. 3619
Sec.
101 Findings and Definitions
201 Federal Coordinating Of-
ficer
203 Cooperation of Federal
Agencies
206 State Disaster Plans
208 Duplication of Benefits
210 Advisory Personnel
211 Disaster Warnings
224 Debris Removal
225 Fire Suppression Grants
226 Temporary Housing
231 Small Business Disaster
Loans
232 FHA Emergency Loans
233 VA Loans
234 Disaster Loan Interest
Rate
236 Federal Loan Adjust-
ments
238 Food Coupons and Dis-
tribution
240 Unemployment Assist-
ance
242 Timber Sale
243 Public Land Entrymen
251 Restoration of Federal
Facilities
252(b) Completion of dam-
aged unfinished State
and local projects
253 Priority for certain ap-
plications for grants
COMMITTEE ACTION
The Special Subcommittee on Disaster Relief this year con-
ducted ten full days of public hearings on the Federal response to
Hurricane Camille: three in Biloxi, Mississippi; two in Roanoke,
Virginia; and five in Washington. Oral testimony was received
from 233 witnesses.
[P-5]
Provisions That are New in S. 3619
Sec.
202 Emergency Support
Teams
204 Use of Local Firms and
Individuals
205 Federal Grant-in-aid
Programs
207 Coordination of Relief
Organizations
209 Non-Discrimination
221 Pre-Disaster Assistance
222 Emergency Communica-
tions
233 Emergency Public Trans-
portation
235 Age of Applicant for As-
sistance
237 Aid to Major Sources of
Employment
239 Legal Services
241 Community Disaster
Loan Fund
244 Minimum Standards for
Residential Structure
Restoration
252(a) Restoration of dam-
aged or destroyed State
or local facilities
254 Relocation Assistance
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898 LEGAL COMPILATION—GENERAL
Taking fully into account what the Subcommittee had learned in
its field hearings in Mississippi and Virginia during January and
February, the Chairman of the Subcommittee, Senator Bayh, on
March 20 introduced S. 3619 with 26 cosponsors. On April 23
Senator Cooper introduced the Administration bill, S. 3745. At
hearings on April 27-29 the Subcommittee heard testimony from
representatives of 12 departments and agencies of the Federal
Government both on their performance during the Camille disas-
ter and its aftermath and on their views concerning the pending
legislation.
Under instructions given by the Subcommittee Chairman at the
end of the final hearing the staff prepared a print incorporating
provisions from both S. 3619 and S. 3745, as well as numerous
technical amendments suggested by the Federal agencies charged
with administering the law.
The following is a list of the provisions of S. 3745 incorporated,
in whole or in part, in S. 3619 as reported:
Provisions of S. 3745 incorporated in S. 3619
The title of the Act was changed from the "Omnibus Disas-
ter Assistance Act" (S. 3619) to the "Disaster Assistance Act
of 1970."
Section 10 of S. 3745 relating to Federal interdepartmental
groups was included as Section 203 (e).
Section 9 of S. 3745 relating to Federal agency coordination
by the President was included as Section 203 (g).
Section 3 (/) of S. 3745 relating to the continuing improve-
ment of State disaster assistance plans was incorporated in S.
3619 as Section 206(e).
Section 6 of S. 3745, the predisaster assistance section was
included in S. 3619 as Section 221.
Section 3 of S. 3745 relating to disaster loan interest rates
was included as the interest rate section of S. 3619, Section
234; and the proviso that a loan not be denied on the basis of
age was also included.
Section 5 of S. 3745 setting forth the Community Disaster
Loan Fund's interest rate, maturity deferment payment, com-
putation factors for tax values, and monies transferable for
the disaster fund was incorporated in the Community Disas-
ter Loan Fund, Section 228.
Section 3 (a) and 3(b) of S. 3745 providing for a $2,500
cancellation and a higher interest rate for SBA and Farmer's
Home Administration disaster loans were included as Sec-
tions 231 (a) (1) and 232 in S. 3619.
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STATUTES AND LEGISLATIVE HISTORY 899
In executive session on June 24, the Subcommittee adopted a
major revision of the print. It eliminated from S. 3619, Titles II
and IV.
Title II would have combined the major disaster relief functions
of the Office of Emergency Preparedness and all the functions of
the Office of Civil Defense and, at the discretion of the President,
any disaster relief function of any other agency, into a new Office
of Disaster Assistance. Administration spokesmen made strong
representations to the Subcommittee that the executive branch of
the Government should be allowed to organize its disaster relief
activities, and the Subcommittee concurred. It is hoped that the
Congress, through the Committees directly concerned, will give
early consideration to a broad, national major disaster insurance
program.
[P. 6]
Title IV would have established a National Major Disaster In-
surance Program. The Subcommittee recognized that this Title
was properly within the jurisdiction of the Committee on Banking
and Currency and agreed to strike it from S. 3619 after receiving
voluminous testimony on the insurance needs and problems of
disaster victims and the views of the insurance industry.
The Subcommittee also approved amendments offered by Sena-
tor Spong, relating to private disaster assistance organizations;
by Senator Gravel providing legal services for low-income disaster
victims (Section 239) ; and by Senator Dole containing additional
Administration proposals.
The full Committee in executive session on August 12 approved
the Subcommittee recommendations and also gave careful atten-
tion to several amendments offered by Senators Tower and Yar-
borough designed to provide relief for the victims of the tornado
which struck Lubbock, Texas, on May 11, 1970. The Committee
approved in modified form two amendments by Senator Yarbor-
ough, No. 774, which is included in Section 226 of the bill as
reported, and No. 783, which is contained in Section 204. Amend-
ment No. 781 by Senator Yarborough was laid aside since the bill
reported from Subcommittee already contained the Gravel amend-
ment relating to legal services. Amendment No. 771, offered by
Senator Tower, was approved in modified form.
In accordance with a Senate colloquy between Senator Ran-
dolph, Chairman of the Committee on Public Works, and Senator
Sparkman, Chairman of the Committee on Banking and Currency,
on April 20, 1970, the bill S. 3619, after being ordered reported,
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900 LEGAL COMPILATION—GENERAL
was referred to the Banking Committee for its comments, pro-
posed amendments or suggested report language on those sections
of the bill over which that Committee has prime jurisdiction:
housing, small business, and VA direct loans.
[p. 7]
EXPLANATION OF THE PROVISIONS OF S. 3619
TITLE I—FINDINGS AND DECLARATIONS, DEFINITIONS
Under this Title Congress recognizes that loss of life, human
suffering, loss of income, property loss and damage caused by a
major disaster disrupt the normal functions of government and
the community and adversely affect individuals and families with
great severity. Special measures to expedite provision of aid and
assistance and emergency welfare services and reconstruction and
rehabilitation of devastated areas are declared necessary.
[p. 8]
Accordingly, the Congress declares its intention to provide an
orderly and continuing means of alleviating the suffering and
damage which result from such a disaster by (1) revising and
broadening existing disaster relief programs, (2) encouraging
States to develop comprehensive relief plans and (3) achieving
greater coordination and responsiveness in the administration of
Federal dasaster assistance programs.
The definition of a major disaster, as used in the bill, is the
same as that provided in Public Law 875, 81st Congress, with the
addition of the words "tornado, high water, wind-driven water,
and tidal wave." As in previous disaster relief laws, the provisions
of this bill are applicable only in the case of a disaster which the
President has determined to be of sufficient severity and magni-
tude to warrant disaster assistance by the Federal Government to
supplement the available resources of the State, local governments
and private relief organizations * * *"
TITLE II—THE ADMINISTRATION OF DISASTER ASSISTANCE
Title II renews and strengthens several programs enacted in
previous disaster laws and provides a number of new kinds of aid.
Present authorization for appointment of a Federal coordinating
officer; State disaster plans; debris removal from private prop-
erty; temporary housing; subsidized loans to homeowners, farm-
ers and businessmen; food coupons; unemployment compensation;
repair, reconstruction, restoration or replacement of Federal facil-
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STATUTES AND LEGISLATIVE HISTORY 901
ities; assistance in completing construction of damaged State and
local projects; loan adjustments; timber sale contracts; and public
land entry—several of which will expire at the end of this year—
are extended indefinitely, although in some cases in modified form.
In response to extensive and convincing evidence of need for
other types of assistance, the bill authorizes entirely new pro-
grams including a Community Disaster Loan Fund; special aid to
enterprises constituting major sources of employment; repair, res-
toration, reconstruction or replacement of essential State and local
public facilities; aid to individuals facing eviction from their
homes; a waiver of restrictive conditions for Federal grant-in-aid;
preference to local firms and businesses in recovery work; and
priority for public facility and public housing assistance applica-
tions.
Assistance provided under Title II is classified into four groups:
first, general provisions applicable to all major disaster relief;
second, emergency relief to be made available immediately after a
declaration of a major disaster by the President; third, recovery
assistance for longer-range restoration and rehabilitation of a
stricken area; and fourth, restoration of public facilities, Federal,
State and local.
PART A—GENERAL PROVISIONS
The first category, General Provisions, requires the President to
designate a major disaster area and to appoint a Federal coordi-
nating officer to operate under the Office of Emergency Prepared-
ness in such area. It also authorized the Director to form emer-
gency support teams and personnel to assist the Federal coordi-
nating officer in carrying out his responsibility.
[P. 9]
Congress stipulated in the 1969 Disaster Relief Act that the
President shall designate a Federal coordinating officer who will
be responsible for overseeing all relief activities in a particular
disaster area. Testimony presented to the Special Subcommittee
on Disaster Relief in recent months clearly bears out the need for
such a unifying authority. Accordingly, Section 201 of the bill not
only continues the requirement for such a coordinating officer but
also strengthens and expands his role. Immediately, after declara-
tions of a major disaster, the appointed Federal coordinator is
directed to make an appraisal of the type of relief most urgently
needed, establish field offices, coordinate the administration of re-
lief with private organizations which agree to operate under his
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902 LEGAL COMPILATION—GENERAL
advice and direction, and take any action he deems necessary to
assist local citizens or public officials to obtain prompt assistance
to which they are entitled.
Cooperation of Federal Agencies
Section 203, providing for cooperation of Federal agencies in
mobilizing response to a major disaster, is the key section of the
bill. Under it all Federal agencies are authorized, upon direction
of the President, to provide disaster assistance in a number of
ways. Based largely on a similar provision of Section 3 of Public
Law 81-875, the first general disaster relief law enacted in 1950,
the powers conferred therein are in this bill clarified, extended
and expanded. All Federal agencies are enabled to utilize or lend
to State and local governments their facilities, personnel, supplies
and equipment, with or without compensation.
It is the intent of the Committee that actions of the Federal
Agencies, under this section, shall be coordinated by the Director.
Federal agencies can also distribute food, medicine and other
consumables through the American National Red Cross or other
relief organizations, and render emergency aid through disaster
assistance organizations. Likewise, they may donate or lend sur-
plus government equipment and supplies.
Emergency work essential to protect and preserve life and prop-
erty can be performed by Federal agencies on public or private
lands or waters. This emergency work is to include clearance and
removal of debris and wreckage, repair or restoration to service of
public facilities belonging to State or local governments, provision
of emergency shelter for individuals and families, and contribu-
tions to State or local governments to perform the above-men-
tioned types of work.
The Federal contribution to the emergency repair or restoration
to service of State and local facilities essential for the protection
and preservation of life and property shall not exceed the net cost
of restoring such facilities to their predisaster capacity and to a
minimum safe, usable condition.
Emergency work performed on public or private lands or wa-
ters does not preclude additional Federal assistance under other
provisions of the Act.
Reimbursement of a Federal agency for services or supplies it
furnishes is to be deposited to the credit of its appropriation for
these items. A disclaimer clause exonerates the United States Gov-
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STATUTES AND LEGISLATIVE HISTORY 903
eminent from any claim based on the exercise, performance or
failure to perform any discretionary act in carrying out emer-
[p. 10]
gency assistance. There is provision for establishing special assist-
ance groups, interdepartmental or otherwise, for employment of
additional temporary personnel, for Presidential coordination of
all Federal agency disaster relief activities, and for periodic Presi-
dential revision of such activities.
Distinctions Between Sections 203 and 252
The Committee wishes to draw a careful distinction between the
provisions for immediate emergency repair and restoration to
service of public facilities under Section 203 and the long-term
repair, restoration, reconstruction or replacement of facilities pro-
vided under Section 252. The emergency work should be designed
to provide essential public services until such time as permanent
work can reasonably be accomplished.
The net cost of emergency work performed under Section
203(4) (b) in order to restore a facility to its predisaster capacity
will be paid for 100% by the Federal Government, either directly
through the appropriate Federal agency or indirectly through con-
tributions to the State or local government which does the work
itself or through contract.
The net cost of reconstruction carried out under Section 252 (a)
in order to restore a facility to its predisaster capacity and in
conformity with current codes and specifications will be paid for
50% by the Federal Government and 50% by the State or local
government concerned.
The provisions for emergency repair or restoring to service
under Section 203 require that the State or local public facility be
essential for the protection and preservation of life and property.
The types of facilities that may be rebuilt under Section 252 are
specifically named and include "any other essential public facil-
ity".
The Committee intends that work performed pursuant to Sec-
tion 203 shall be the work which must be done if a community
suffering from a major disaster is to be revived and provided
with the services and facilities essential to protect and preserve
the lives and property of its citizens.
In the emergency phase immediately following a major disaster,
a public facility which is in need of repair or restoration to
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904 LEGAL COMPILATION—GENERAL
service shall be, when the emergency work is done, able to per-
form its function to the same extent as it did before the disaster.
In Section 203(4) (b) the words "restoring to service" are the
critical words in the mandate and direction given to the Office of
Emergency Preparedness.
Experience under existing law providing for "emergency re-
pairs" and "temporary replacement" of public facilities has shown
a strong tendency to stretch the meaning of the qualifying adjec-
tives so as to permit permanent reconstruction of damaged or
destroyed facilities, using 100% Federal funds. For example, it
has been argued that it is wasteful, and indeed almost impossible,
to replace a sewer system temporarily, and therefore it is more
economical and sounder practice to replace a damaged sewer sys-
tem with a modern one suitable to present-day needs.
The Committee agrees that the existing language is too restric-
tive, and has therefore in Section 252 added a new program
through which the Federal Government will contribute 50 per
centum of the net cost of restoring any damaged or destroyed
[P. 11]
State or local facility to its predisaster capacity and in conformity
with currently applicable codes and specifications. This is supple-
mentary to the emergency provisions of Section 203, except that
the total Federal costs of emergency work under Section 203 and
of permanent work under Section 252 may not exceed one hundred
percent of the overall permanent project costs. The past practice
of "grants in lieu" for emergency work is discontinued.
There is precedent for the 50-50 matching formula in the Dis-
aster Relief Act of 1969 which applied it to the reconstruction of
non-Federal aid highways.
Use of Local Firms and Individuals
Section 204 provides that in the expenditure of Federal funds,
for example, for debris clearance and reconstruction of public
facilities, preference is to be given to persons or firms who work
or do business in the disaster area. One outstanding feature of the
aftermath of a great disaster is lack of ready cash. A Federal
assistance program should be designed to revitalize the community
by infusions of cash through the use of local people and business
firms.
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STATUTES AND LEGISLATIVE HISTORY 905
Federal Grant-in-aid Programs
Under Section 205 the conditions for receipt of Federal grants
can be waived for the duration of a disaster proclamation if the
inability of the State or local authorities to meet such conditions
resulted from the disaster. Such conditions would not include pay-
ment of the local matching share of Federal grant-in-aid pro-
grams, for which loans could be available under Section 241, but
would include conditions involving the terms of such payments.
Section 205 applies only to regular categorical Federal grant-
in-aid programs. It is not intended to apply to the Federal contri-
bution under Section 252 of the Act or to any other OEP grants
provided under the Act.
State Disaster Plans
Section 206 clarifies and extends the provisions of the 1969
disaster relief act authorizing the President to make grants up to
$250,000 to any State for not more than 50% of the cost of
developing "comprehensive plans and practicable programs for
assisting individuals suffering losses as a result of a major disas-
ter."
The original intent of this section, dating back to S. 1861, intro-
duced in 1965, was to assist States in developing a complete and
thorough blueprint outlining in detail the necessary preparation,
organization, procedures, supplies, equipment and other require-
ments which would enable a State to do everything possible to
minimize the terrible effects of a major disaster and to bring
restoration of the normal life and activities in any disaster area.
However, in the formulation of the final language of Section 8 of
P.L. 91-79, the wording appeared to limit its scope to plans and
programs which would assist only "individuals" suffering losses.
This has been narrowly interpreted by some to mean that State
plans developed under this section cannot apply to assistance to
[P. 12]
local governments, public agencies or business enterprises.
In order to resolve any doubts about this matter, Section 206
authorizes the President to make grants to States to develop "com-
prehensive plans and practicable programs for preparation
against major disasters, and for relief and assistance for individu-
als, businesses and governments." In addition the Committee has
authorized the President to make 50% matching grants not ex-
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906 LEGAL COMPILATION—GENERAL
ceeding $25,000 a year to any State to improve, maintain and
update its State disaster assistance plan.
Although it is not possible to predict when or where catas-
trophes may occur, it seems only good sense to the Committee for
State governments to do as much advance planning and to prepare
themselves as much as possible in order to cope with the eventual-
ity that their territory and population may be subjected to a
major disaster. A number of States have already pioneered in this
field, formulating at least a preliminary program, and several
others have indicated intention to proceed with application for
assistance.
The Director is required, from time to time, to make a report to
the President for submission to the Congress, containing his rec-
ommendations for Federal programs to implement and fund com-
prehensive disaster relief plans and for the Federal role in disas-
ter relief activities.
Use and Coordination of Relief Organizations
Section 207 authorizes the Director to arrange with the Ameri-
can National Red Cross, the Salvation Army, the Mennonite Board
of Missions and Charities, and other relief or disaster assistance
organizations for the use of their personnel and facilities in the
distribution of medicine, food, supplies or other material or for
the restoration, rehabilitation or reconstruction of community
services and facilities, if he finds that this is necessary. This will
resolve certain questions brought to the attention of the Subcom-
mittee about the power of the national government to utilize
officially the manpower, supplies and skills which private organi-
zations, other than the Red Cross, might be willing to provide.
Considerable testimony has been presented illustrating the tre-
mendously helpful assistance which the Salvation Army, the Men-
nonite Board and others have rendered following disasters. There
is no reason why the Director should lack authority to recognize
them officially and call upon their services for disaster assistance.
On the recommendation of Senator Spong the Committee has
also included in this section "disaster assistance organizations"
which may volunteer their personnel and facilities in the restora-
tion, rehabilitation, or reconstruction of community services and
essential facilities. "Operation Bulldozer" managed by the Asso-
ciation of General Contractors and well-drilling operators of the
National Disaster Committee of the National Water Well Associa-
tion were cited to the Committee as such "disaster assistance
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STATUTES AND LEGISLATIVE HISTORY 907
organizations." Any relief or disaster assistance organization en-
tering into an agreement with the Director for this purpose will
have to comply with regulations issued under Section 208 refer-
ring to duplication of benefits and under Section 209 pertaining to
impartial and non-discriminatory administration.
[p. 13]
Duplication of Benefits
Section 208 is designed to prevent any person, business concern
or other entity from receiving duplicate disaster relief benefits. It
will be the duty of the Director to be sure that financial assistance
will not be given for any major disaster loss for which compensa-
tion has been received from any other Federal program, insurance
policy or other source. This, however, will not preclude Federal
assistance for any part of a loss which has not been compensated
otherwise. Whenever the Director determines that a person or
business has received assistance from more than one source which
exceeds the amount of the loss, he will direct that person or busi-
ness to reimburse the Federal Government for the part he deems
excessive but not in excess of the amount of Federal assistance
received.
Non-discrimination in Disaster Assistance
Allegations have been made that there were some instances of
inequitable and discriminatory treatment, especially after the first
emergency period, in providing aid following Hurricane Camille.
Such charges have been levied against both public and private
agencies. Certainly, differential treatment in the handling of dis-
aster assistance should not be tolerated.
In order to assure that aid will be provided to all, irrespective of
their personal background or status, Section 209 of the bill author-
izes the Director to establish regulations which will be applicable
to the personnel and procedures of both public and private agen-
cies involved in handling Federal disaster assistance programs.
These guidelines will stipulate that there shall be no discrimina-
tion on the grounds of race, color, religion, nationality, sex, age, or
economic status in distributing supplies, processing applications
or managing other relief activities.
Advisory Personnel
The Director is authorized by Section 210 to assign advisory
personnel he deems to be necessary. To meet a need often ex-
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908 LEGAL COMPILATION—GENERAL
pressed to the Subcommittee, he also can upon request send
trained and experienced representatives to advise State or local
government officers about various kinds of Federal programs and
procedures. The Subcommittee has been informed that in smaller
communities, especially, where the chief executives often are
part-time officers with little experience in or knowledge about
national programs, it would be extremely helpful if well-informed
consultants could be provided who would work closely with local
governments when a major disaster overtakes them. These repre-
sentatives, of course, will be strictly advisory and will be assigned
only if the Director believes they will help enable communities to
apply for and utilize fully various assistance programs.
Disaster Warnings
In Section 211 the President is authorized to provide needed
warnings to governmental authorities and the civilian population
in areas threatened by imminent natural disasters.
[p. 14]
PART B—EMERGENCY RELIEF
Predisaster Relief
In order to avert or diminish the impact of disasters in advance,
Section 221 authorizes the President to use Federal resources to
assist any State or local government in circumstances which
clearly indicate the imminent occurence of a major disaster.
Emergency Communications
Section 222 gives the Director authority to establish emergency
communications in any major disaster area. From testimony on
Hurricane Camille the Committee learned that one of the greatest
deficiencies immediately following the disaster was the lack of
adequate communications both within the disaster area and with
the outside. The Committee believes the Director should take the
necessary steps to provide effective communications in emergency
situations, including mobile radios, area-wide networks, pools of
battery-operated portable equipment and any other appropriate
devices and facilities.
Emergency Transportation
Emergency public transportation service in a major disaster
area can be provided by the Director under Section 223. The
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STATUTES AND LEGISLATIVE HISTORY 909
purpose is to enable local residents who have lost all means of
transportation to make necessary trips to distant governmental
offices, supply centers, employment centers, post offices, schools,
stores and other similar places of business. The emergency service
will be provided only until regular public transportation is re-
stored, or for a maximum period of one year after the disaster.
Although the number of major disasters in which there would
be need for such temporary transportation system may be few, the
Subcommittee was impressed with the plight of many residents of
the Mississippi Gulf Coast who found it very difficult to transact
business, make applications for assistance, pick up food and cloth-
ing or talk with officials. When neighborhood shopping centers and
stores have been destroyed, private automobiles have been dam-
aged beyond repair, and public buses are no longer running, those
living in isolated removed sections of large communities or in
rural areas have great difficulty in carrying on normal life activi-
ties. In such limited cases the Committee believes the Director
should be authorized to provide temporary transportation until
regular service can be restored. The type, frequency, routes and
fares charged, if any, for such service are left to the discretion of
the Director.
Debris Removal
Under Section 224 grants can be made by the President, when-
ever he determines it to be in the public interest, to any state or
local government for the removal from privately owned lands or
waters of debris deposited as a result of a major disaster. State or
local governments will in turn be authorized to reimburse any
person for actual debris removal costs, less any salvage value of
the debris. This provision is almost identical with section 14 of
[p. 15]
P.L. 91-79, now scheduled to terminate on December 31, 1970.
The Committee intends that the broadest possible interpretation
be given the term "in the public interest". Considerations in deter-
mining the public interest should include threats to health, well-
being or safety of the public; fire or flood hazards; economic
recovery of the community; restoration of the land to a productive
condition; and effects on the overall environment, including the
appearance of the community.
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910 LEGAL COMPILATION—GENERAL
Fire Suppression Grants
The 1969 Disaster Relief Act authorized grants and loans to
States to assist in suppressing any fire on publicly- or privately-
owned forest or grass lands which might threaten to become a
major disaster. Congress took this action after it had been pointed
out that a small conflagration, beginning either on public or pri-
vate property, could become a major fire threatening large areas if
there were not sufficient manpower and equipment to quell it at
the start. Such a holocaust would pay no attention to jurisdictional
or ownership boundary lines and could in a short time devour
huge quantities of timber and grasslands. Although the U.S. For-
est Service has a number of able, well-trained firefighters and
extensive equipment, this is often not true on privately-owned
tracts and sometimes on State and local lands as well. To help
reduce great losses from fires of the type which desolated thou-
sands of acres of timber in the Northwest during 1967, Section
225 of the bill re-enacts the grant provision of the 1969 act. Provi-
sion for loans for this purpose has been omitted on the basis of
information that only grants are used.
Temporary Housing Assistance
In order to provide dwelling accommodations for individuals and
families whose homes have been made uninhabitable by a major
disaster, Section 226 authorizes the Director for this purpose to use
any unoccupied housing owned by the United States, to arrange
with a local public housing agency for any unoccupied housing
units, or to acquire, either by purchase or lease, already existing
dwellings. Mobile or specially fabricated dwellings can be in-
stalled complete with utilities on sites furnished without charge to
the United States by a State or local government or by the owner
or occupant of the site. After an initial 90-day rent-free period,
rental collected for occupancy of these temporary dwelling accom-
modations can be adjusted or completely waived, according to the
financial ability of the tenants, for as long as one year from date
of occupancy, but in no case will disaster victims be required to
pay more than 25 percent of the family monthly income for hous-
ing expenses, including the amortization of debt on a destroyed or
damaged house.
The only significant difference between Section 226 (a) and (b)
of the bill and Section 10 of P.L. 91-79 is that the authority
conferred on the Director to acquire housing includes the right to
purchase as well as to lease dwellings or mobile homes. The three
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STATUTES AND LEGISLATIVE HISTORY 911
previous disaster relief bills (S. 1861, S. 438 and S. 1685) would
have authorized the purchase of housing for this purpose, and
each of the two bills which passed the Senate in 1965 and 1969
included such a provision. Because the cost to the Government of
[p. 16]
leasing mobile homes from manufacturers or distributors for a
year is very high, it may be less expensive under certain circum-
stances to purchase them outright. They can be either stockpiled
or sold later, either to the disaster victim-occupant or on the open
market. The fact that mobile homes have recently become eligible
for Government-insured loans may facilitate their disposal, per-
haps in some cases to the disaster victim himself.
More important, however, is the time which may be gained in
some disasters by immediate purchase of temporary dwellings.
Several weeks elapsed before mobile homes in any quantity were
brought into the Gulf Coast areas most damaged by Camille, and
there were many reports of other delays in installing and connect-
ing them up promptly with public services. Some of this can be
attributed to poor road conditions and destroyed facilities, but
considerable time was lost through advertisement for bids, negoti-
ating and letting contracts, and manufacturing and shipping units
from factories hundreds of miles away. At the same time, it has
been estimated that within a hundred miles or so of the disaster
area there were local dealers who had hundreds of mobile homes
which could have been purchased and moved into place quickly if
the agency had been authorized to do so. The Committee believes
that the Director should be empowered to purchase such tempo-
rary dwellings; he would use that power only if in his opinion it
were more in the public interest to do so.
The Committee has added a new subsection (c) which is a
modified form of an amendment (No. 774) proposed by Senator
Yarborough following the tornado in Lubbock, Texas. It author-
izes the Director to provide temporary assistance in the form of
mortgage or rental payments to individuals who have lost their
jobs or are otherwise suffering financial hardship due to a major
disaster and who have received written notice of dispossession or
eviction from their residence because of foreclosure of a mortgage
, or lien, cancellation of any contract of sale or termination of a
written or oral lease. This assistance is to be provided only for a
period not exceeding one year, or for the duration of financial
hardship, whichever is lesser. The Committee intends that the
term "written notice" shall mean any notice required by the law of
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912 LEGAL COMPILATION—GENERAL
the State or which the Director determines is valid evidence of
imminent dispossession or eviction. In addition the Director shall
provide reemployment assistance services in order to find job op-
portunities. Such assistance may also include training or retrain-
ing under existing Federal programs.
The effective date of Section 226 (c) is August 1, 1969.
[P. 17]
PART D—RESTORATION OF PUBLIC FACILITIES
Federal Facilities
Section 251 of the bill, which authorizes the restoration of Fed-
eral facilities damaged in a major disaster, restates in somewhat
simpler language the provisions of Section 6 of P.L. 875, 81st
Congress, the Disaster Relief Act of 1950. If the President deter-
mines such action to be so urgent that it cannot be deferred, he is
authorized to allow any Federal agency to repair, restore, recon-
struct, or replace facilities owned by the United States which were
damaged or destroyed in a major disaster. Work on the project
can begin, even if sufficient funds have not been appropriated, if
other funds can be transferred from funds appropriated for an-
other purpose.
State and Local Government Facilities
Section 252 authorizes 50 % matching grants for restoring pub-
lic works facilities and projects of States or local communities
which were damaged or destroyed in a major disaster, including
projects for flood control, navigation, reclamation, electric power,
water and sewage treatment, watersheds, airports and non-Feder-
al-aid streets, roads and highways and any other essential public
facility. Similar grants could also be made to meet the additional
costs of completing such types of projects or facilities which were
in the process of construction when the disaster struck. It is the
intent of the Committee that under this section the Federal Gov-
ernment's share of the cost of repair, restoration, reconstruction
or replacement relates only to those portions of the facility which
were damaged or destroyed. (See explanation under Section 203 of
the differences between that section and Section 252.)
The effective date of Section 252 (a) is made retroactive to
August 1, 1969.
[P. 23]
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STATUTES AND LEGISLATIVE HISTORY 913
Priority for Certain Applications
Section 253 gives priority in the processing of applications for
various housing programs from public bodies located in disaster
areas for a period not to exceed six months as prescribed by
Presidential proclamation.
Relocation Assistance
Section 254 would authorize the making of relocation payments
under the urban renewal program in certain cases to persons
displaced by a major disaster. Under present law and regulations,
if the area of a major disaster is subsequently approved for an
urban renewal project, persons who have been displaced because
of the disaster cannot receive relocation payments even though the
property they occupied and may have owned is acquired as part of
that project, unless they have been able to return and reoccupy
that property, or what remains of it, prior to the time of its
acquisition. Under the amendment, relocation payments can be
made without regard to whether persons displaced by the disaster
are able to return to the area, provided that they are in all other
respects eligible for such payments. The effective date of this
section is made retroactive to August 1, 1969.
TITLE III—MISCELLANEOUS
Repeal of Existing Law
Section 302 repeals the three existing major disaster relief
laws: The Act of September 30, 1950 (64 Stat. 1109) ; the Disas-
ter Relief Act of 1966 (80 Stat. 1316) except section 7 (Higher
Education Facilities Assistance) ; and the Disaster Relief Act of
1969 (83 Stat. 125).
Authorization of Appropriations
Section 303 authorizes the appropriation of such sums as may
be necessary except as provided in Sections 206 (State Plans) and
228 (Community Disaster Loan Fund) where specific amounts are
authorized.
Effective Date
Section 304 provides that the Act shall take effect immediately
upon enactment, except that Sections 226 (c), 237, 241, 252 (a) and
254 shall take effect as of August 1, 1969. Senator Yarborough
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914 LEGAL COMPILATION—GENERAL
had proposed in his amendment No. 783 to make Parts A (General
Provisions), C (Recovery Assistance) and D (Restoration of Pub-
lic Facilities) of Title II retroactive for a full year prior to enact-
ment of the legislation. The Committee recommends that only five
new programs authorized in the bill be made retroactive and, in
order to include the Camille disaster of August, 1969, to make the
effective date of these programs August 1, 1969. The five new
programs are (1) Aid to Major Sources of Employment (Section
237) ; (2) Community Disaster Loan Fund (Section 241) ; (3)
Restoration of State and Local Government Facilities (Section
252 (a)); (4) Temporary Housing Assistance (Section 226 (c));
and (5) Relocation Assistance (Section 254).
[p. 24]
SECTION-BY-SECTION ANALYSIS
TITLE I—FINDINGS AND DECLARATIONS, DEFINITIONS
Section 101—Findings and Declarations
The Congress would find and declare that because major disas-
ters cause loss of life, human suffering, loss of income, property
loss and damage and because such disasters disrupt the normal
functioning of government and the community special measures
are required to expedite assistance and emergency welfare serv-
ices and reconstruct and rehabilitate devastated areas.
The Congress would under this Act provide orderly and continu-
ing means of alleviating suffering and damage by (1) revising and
broadening existing major disaster relief programs (2) encourag-
ing development of comprehensive State disaster plans and (3)
achieving greater coordination and responsiveness of Federal
major disaster relief programs.
Section 102—Definitions
Definitions in this section are the same as P.L. 875, 81st Con-
gress, except for the addition of the words "tornado, highwater,
wind-driven water, and tidal wave" to the definition of "major
disaster." No provision of S. 3619 would be operative except in
those instances and areas where the President has declared that a
major disaster has occurred.
PART A—GENERAL PROVISIONS
Section 201—Federal Coordinating Officer
Section 201 provides for the presidential appointment of a Fed-
eral Coordinating Officer for the designated disaster area. The
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STATUTES AND LEGISLATIVE HISTORY 915
duties of this officer would include but not necessarily be limited to
these functions: 1) initial appraisal of the relief most needed, 2)
establishment of field offices, 3) coordination of relief distribution
activities, and 4) supervision of emergency support teams and
other actions to assist local citizens and officials to receive aid.
Section 202—Emergency Support Teams
Section 202 would authorize the Director to form emergency
support teams and personnel to assist the Federal Coordinating
Officer in carrying out his responsibilities as defined under Section
201.
Section 203—Cooperation of Federal Agencies
This section would authorize Federal agencies to assist disaster
areas in several ways, including: the utilization or lending of
personnel, facilities, supplies, equipment, and other resources ex-
cept extension of credit, with or without compensation, to State
and local governments; the distribution of medicine, food and
other consumable supplies and the rendering of emergency serv-
ices through relief and disaster assistance organizations; the do-
nation or lending of Federal surplus equipment and supplies; and
the performing on public or private lands or waters of any emer-
gency work essential for the protection and preservation of life
and property.
Such emergency work would include clearing and removing de-
bris and wreckage. It would also include making repairs, or re-
storing to service, damaged or destroyed public facilities belonging
[p. 25]
to State and local governments, except that the Federal contribu-
tion would not exceed the net cost of restoring such facilities to
their predisaster capacity.
Assistance by Federal agencies would also provide for emer-
gency shelter for individuals and families who require such assist-
ance because of a major disaster.
Federal agencies could also make contributions to State or local
governments for the purpose of carrying out the types of assist-
ance authorized under Section 203 (a) (4).
Emergency work performed under section 203 (a) (4) would not
bar additional Federal assistance under any other section of the
Act.
Federal agencies could be reimbursed for services and supplies
under Section 203 (a) from funds appropriated under this Act.
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916 LEGAL COMPILATION—GENERAL
Any funds paid to Federal agencies for services or supplies fur-
nished under the provisions of this section would be deposited to
the credit of the appropriation or appropriations currently availa-
ble for such services or supplies.
The Federal Government would not be liable for any claim
based on the exercise or performance, or failure to exercise or
perform, of a Federal agency or employee in carrying out the
provisions of this section.
Any Federal agency designated by the President to exercise
authority under this Act could establish and fund the necessary
expenses of special groups, interdepartmental or otherwise, which
it deemed appropriate to assist in carrying out Federal disaster
preparedness and assistance laws.
Any Federal agency carrying out the provisions of this Act
could accept and utilize facilities, funds, and services furnished by
State or local governments or their personnel, and such Federal
agency could temporarily employ additional personnel without re-
gard to civil service laws and could contract or incur obligations
on behalf of the United States for acquisition or rental of equip-
ment, services, materials or supplies for shipping, drayage, travel
and communications, and for supervising and administering such
activities. Such obligations, including those for employment of
temporary additional personnel could be incurred by a Federal
agency in whatever amount the President made available to it.
The President would further be authorized to coordinate the
activities of Federal agencies providing disaster assistance, direct
any Federal agency to utilize its funds, personnel, equipment, sup-
plies, facilities, and other resources, prescribe such rules and regu-
lations as may be necessary, and exercise any power or authority
conferred on him by any section of this Act either directly or
through whatever Federal agency he designates.
Finally, through the Office of Emergency Preparedness, the
President would periodically review the disaster assistance activi-
ties of Federal and State departments and agencies, in order to
assure maximum coordination, and to evaluate progress in the
development of Federal, State and local preparedness to cope with
major disasters.
Section 204—Use of Local Firms and Individuals
Section 204 provides that in expending Federal funds for debris
clearance, distribution of supplies, reconstruction and other major
disaster assistance activities carried out by contract with private
[p. 26]
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STATUTES AND LEGISLATIVE HISTORY 917
organizations, firms or individuals, preference should be given in
awarding such contracts to residents and persons who do business
primarily in the disaster area.
Section 205—Federal Grant-in-Aid Programs
Any agency administering aid to disaster areas would be au-
thorized to waive the conditions, except matching provisions, for
receipt of Federal grant-in-aid programs as would otherwise pre-
vent the giving of assistance for the duration of the disaster
proclamation, if inability to meet such conditions resulted from
the disaster.
Sections 206—State Disaster Plans
This section provides for the formulation by the States of com-
prehensive plans and programs for preparation against major
disasters and their losses. Grants up to $250,000 would be made by
the President to any applicant State on a matching basis for no
more than half the cost of developing such plans and programs
and up to $25,000 per annum would be made available to update
and improve the developed plans.
To be eligible for a planning grant, a State would have to
establish or designate an agency which would be responsible for
developing and administering its disaster relief plan and program.
The resultant plan should include a comprehensive and detailed
State program for preparation against and relief following a
major disaster and include provisions for the appointment of a
State coordinating office to assist the Federal coordinating officer
appointed under Section 201 of this Act.
From time to time, the Director would prepare a report to the
President, for submission to the Congress, containing his recom-
mendations for the Federal role in implementing, funding, and
coordinating disaster relief activities.
Section 207—Use and Coordination of Relief Organizations
The Director would be authorized to make agreements with
relief or disaster assistance organizations, including but not lim-
ited to the American National Red Cross, the Salvation Army, the
Mennonite Board of Missions and Charities, to help the distribu-
tion of food, clothing, medicine and other supplies, and the resto-
ration rehabilitation or reconstruction of community services and
facilities. The Director would be authorized to make agreements
with organizations which would allow the Federal coordinating
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918 LEGAL COMPILATION—GENERAL
officer to coordinate all relief activities of private agencies in a
given disaster area. Such agreements would have to include provi-
sions for compliance with regulations promulgated under Sections
208 (Duplication of Benefits) and 209 (Nondiscrimination).
Section 208—Duplication of Benefits
The Director would be required to ascertain that no person or
business would be receiving aid from more than one source for the
same disaster damage. No person or business could receive assist-
ance from the government for any loss compensated by insurance,
but partial compensation for a loss would not preclude additional
Federal assistance for such part of the loss not compensated for
otherwise. The Director would be required to determine whether
any person had received duplicate benefits. Whenever the Director
determined that a person or business had received assistance from
[p. 27]
more than one source which exceeded the amount of the loss, he
would direct that person or business to reimburse the Federal
Government for the part he deemed excessive but not in excess of
the amount of Federal assistance received.
Section 209—Non-discrimination in Disaster Assistance
The Director would be required to issue regulations forbidding
discrimination by race, color, age, sex, nationality, religion or
economic status in providing disaster relief supplies and services.
Any relief organization participating in the distribution of assist-
ance or supplies under Section 207 must comply with these regula-
tions relating to non-discrimination.
Section 210—Advisory Personnel
The Director would be authorized to assign advisory personnel
to the chief executive officer of a State or local government upon
the request by such executive officer, in order to insure full utiliza-
tion of relief and assistance resources and programs.
Section 211—Disaster Warnings
The President would be authorized to provide needed warning
to governmental authorities and civilian population in areas en-
dangered by imminent natural disasters.
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STATUTES AND LEGISLATIVE HISTORY 919
PART B—EMERGENCY RELIEF
Section 221—Predisaster Assistance
The President would be authorized to utilize Federal resources
to assist States or local governments in preparations for an immi-
nent major disaster to avert or lessen its effects.
Section 222—Emergency Communications System
The Director would be authorized to establish emergency com-
munications in any major disaster area which would be made
available to State and local government officials and other persons
as he saw fit.
Section 223—Emergency Public Transportation
Emergency public transportation to governmental offices, supply
centers, stores, post offices, schools, and major employment centers
would be authorized in a major disaster area where regular public
transportation had been disrupted in order that the community's
normal pattern of life could be resumed as soon as possible.
Section 22^—Debris Removal Grants
The President would be authorized to make grants to State and
local governments for removal of debris from private lands or
waters whenever he determined it to be in the public interest:
except that these benefits would not be available unless State or
local governments arranged unconditional authorization for the
removal of debris and agreed to indemnify the Federal govern-
ment for any claims resulting from this debris removal. Payments
could also be made to remove debris from community areas which
included an individual's private property.
Section 225—Fire Suppression Grants
The President would be authorized to make grants to any State
in order to assist in the suppression of fires on publicly or pri-
[p. 28]
vately owned forest and grass lands which threatened suet de-
struction as would constitute a major disaster,
Section 226—Temporary Housing Assistance
The Director would be authorized to provide necessary shelter
for owners or tenants whose places of residence had been made
uninhabitable by a major disaster. Dwelling accommodations nec-
essary for this purpose, including mobile homes, could be pur-
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920 LEGAL COMPILATION—GENERAL
chased or leased, and in turn could be rented or sold outright to
the disaster victims to provide them with suitable housing. The
housing would be placed by the State or local government or by
the owner or occupant on sites complete with utilities without
charge to the United States. The Director could decide in the
public interest to provide more economical and accessible sites at
Federal expense.
After an initial 90 days of occupancy rentals could be estab-
lished. These rentals could be compromised, adjusted or waived
for a period of not to exceed one year from date of occupancy
according to the financial ability of the occupants, but in no case
could the family's monthly housing expense be required to be more
than one-fourth the family's monthly income.
The Director would be further authorized to provide grants as
temporary assistance in the form of mortgage or rental payments
to individuals who had suffered severe financial hardship caused
by a major disaster and who had received written notice of dispos-
session or eviction from their residence because of foreclosure of a
mortgage or lien, cancellation of a contract of sale, or termination
of an oral or written lease. This assistance could be furnished for
not in excess of one year or until the individual's financial hard-
ship ended, whichever was the lesser. In addition the Director
would provide reemployment assistance services to individuals
who were unemployed as a result of a major disaster.
[P. 29]
PART D—RESTORATION OF PUBLIC FACILITIES
Section 251—Federal Facilities
Upon the President's determination that repair, reconstruction,
restoration or replacement of facilities owned by the United States
was so important and urgent that it could not reasonably be de-
ferred pending enactment of specific authorizing legislation or the
making of an appropriation, he could authorize any Federal
agency to repair, reconstruct, restore or replace any facilities
damaged or destroyed in a major disaster that were under its
jurisdiction. This work could begin notwithstanding a lack of in-
sufficiency of funds where such lack or insufficiency could be reme-
died by transfer, in accordance with law, of funds appropriated
for another purpose.
Section 252—State and Local Government Facilities
The President would be authorized to make contributions to
States or local communities for repairing, restoring, reconstruct-
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STATUTES AND LEGISLATIVE HISTORY 921
ing or replacing damaged portions of public facilities belonging to
State or local governments, including flood control, navigation,
irrigation, reclamation, public power, sewage treatment and
collection, water supply and distribution, watershed development,
airport, non-Federal-aid street, road or highway, and any other
essential facility damaged by a major disaster. Such Federal con-
tribution could not exceed 50% of the net cost of restoring such
facility to its predisaster capacity and in conformity with applica-
ble codes and specifications.
The President could also make contributions to States or local
governments in amounts not in excess of 50% of the net cost of
restoring such public facilities, which were in the process of con-
struction when damaged or destroyed, to substantially their condi-
tion prior to the disaster and of completing construction not per-
formed before the disaster to the extent that the increase in cost
over the original construction cost was attributable to changed
conditions caused by the disaster.
[p. 33]
Section 253—Priority to Certain Applications for Public Facilities
and Public Housing Assistance
The President by proclamation would prescribe a period not to
exceed six months during which processing of applications for
assistance would be given priority and immediate assistance under
the following Acts: Title II of the Housing Amendments of 1955
or any other act providing assistance for repair, construction or
extension of public facilities; the United States Housing Act of
1937 providing low-rent housing; Section 702 of the Housing Act
of 1954 providing assistance in public works planning; Section
702 of the Housing and Urban Development Act of 1965 providing
grants for public facilities; or Section 306 of the Consolidated
Farmers Home Administration Act.
Section 254—Relocation Assistance
This section would provide that no person otherwise eligible for
relocation assistance payments under the Housing Act of 1949
would be denied eligibility as a result of a Presidentially declared
major disaster.
COMMITTEE RECOMMENDATIONS
The Committee on Public Works, having considered this legisla-
tion and having incorporated therein to the greatest extent possi-
ble the proposals of all interested parties, is of the opinion that its
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922 LEGAL COMPILATION—GENERAL
provisions are of vital importance to those individuals, organiza-
tions and communities suffering hardship as a result of a major
disaster. Enactment of S. 3619, as reported, is therefore unani-
mously recommended.
[p. 34]
INDIVIDUAL VIEWS OF MR. DOLE
In 1969 there were 29 major disasters affecting 23 States. Both
in number and in scope of destruction, these disasters surpassed
those of any single year since the first comprehensive Federal
Disaster Act was passed in 1950. The California flood and Hurri-
cane Camille were exceptionally destructive. As a result, the Fed-
eral Government allocated a total of $148,970,000 from the Presi-
dent's disaster fund, the largest sum for any year in history. In
addition, the disaster loan programs of the Small Business Admin-
istration and the Farmers Home Administration were of major
assistance during 1969 to homeowners, businessmen, and farmers.
Food supplies from the Department of Agriculture, community
relations services from the Department of Justice, and legal as-
sistance grants from OEO also helped many disaster victims.
Operation Foresight, a flood-prevention program, was initiated
by President Nixon early in 1969. This innovation has been emi-
nently successful; it prevented widespread human suffering and
an estimated $200 million in damage at a cost of $20 million.
Because of the recordbreaking demands of 1969, the Subcom-
mittee on Disaster Relief was created to review our Federal disas-
ter assistance laws. The subcommittee held hearings in the field
and in Washington, receiving an abundance of testimony indicat-
ing the need to make our disaster assistance more effective and
efficient.
On April 22, 1970 President Nixon, in the first special message
to Congress on the subject of disaster assistance in 18 years,
proposed far-reaching legislative and administrative changes to
improve our response to major natural disasters. The President
pointed out that our disaster assistance program has "* * *
grown in a piecemeal and often haphazard manner, involving over
50 separate congressional enactments and Executive actions." He
noted that "This slow development process has created a complex
program, one which has a number of gaps and overlaps and needs
increased coordination."
The bill reported from committee includes the best concepts and
proposals of S. 3619 introduced by Senator Bayh, chairman of the
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STATUTES AND LEGISLATIVE HISTORY 923
Subcommittee on Disaster Relief, and S. 3745, introduced by Sena-
tor Cooper, ranking minority member of the full Committee on
Public Works, on behalf of the administration. Specifically, the
following provisions from S. 3475 are included in the committee
bill:
1. Provision for removal of the "emergency repair of temporary
replacement" criteria of work on essential public facilities, with
the proviso that the Federal cost of permanent repair or replace-
ment not exceed the net worth of the facility to its predisaster
capacity.
2. Provisions to allow the President to contract or make agree-
ments with private relief organizations in order that the activities
of these organizations can be coordinated by appropriate officials
and conditioning of such agreements on compliance with Title VI
of the Civil Rights Act of 1964.
[P. 35]
3. Provisions to provide for forgiveness of up to $2,500 on losses
or damage in excess of $500 on the principle of an SBA or FHA
disaster loan.
4. Provision that the State planning program would be an ongo-
ing activity rather than expire on December 31, 1970. Addition-
ally, provisions to limit the amount of assistance available to any
one State to $25,000 per annum and in amounts which shall com-
prise more than 50 percent of the total cost of such planning.
5. Provision that debris-clearance assistance to the States and
local governments not be made unless the State or local jurisdic-
tion agrees to unconditionally indemnify the Federal Government
from any claims arising as a consequence of the debris removal.
6. Provision to establish a community disaster loan fund in the
Treasury for assistance to local communities suffering substantial
loss because of a major disaster.
7. Provision to authorize assistance in advance of an imminent
disaster.
8. Provisions dealing with antidiscrimination in the administra-
tion of assistance; with the establishment of advisory groups on
disaster relief, and on the assignment of advisory personnel to
local communities.
In addition, the President's program improvements to be
achieved administratively have been accomplished or are well un-
derway :
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924 LEGAL COMPILATION—GENERAL
A National Council on Federal Disaster Assistance has
been established. The Council brings together senior level of-
ficials of Federal agencies to improve coordination of Federal
assistance efforts.
One-stop centers—the concept has been tried and proven in
the recent Lubbock and Corpus Christi, Tex., disasters, mak-
ing it easier for disaster victims to get information and as-
sistance.
Disaster assistance teams—teams of knowledgeable Fed-
eral officials, supervised by OEP disaster assistance coordina-
tors, are helping communities and individuals in disaster re-
lief and recovery efforts.
Disaster research—within OEP, a research effort is being
initiated, wherein the agency serves as the clearinghouse on
all disaster-related research.
As the President said in his disaster message, "* * * the gen-
eral framework of our present program provides an effective
mechanism for channeling Federal disaster assistance to individu-
als and communities", but this legislation for the first time consol-
idates our major disaster assistance programs and provides addi-
tional assistance in areas in which we have been deficient in the
past. It is the result of bipartisan efforts of members of the com-
mittee and the responsible officials in the executive branch. As
ranking minority member of the Subcommittee on Disaster Relief,
I join my colleagues in favorably reporting the Disaster Assist-
ance Act of 1970, and allow us, in the President's words, "as we
move into a new decade * * * to respond effectively when na-
ture gets out of control and victimizes our citizens."
[p. 36]
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STATUTES AND LEGISLATIVE HISTORY 925
1.8a(2) HOUSE COMMITTEE ON PUBLIC WORKS
H.R. REP. No. 91-1524, 91st Cong., 2d Sess. (1970)
DISASTER RELIEF ACT OF 1970
SEPTMEBEB 29, 1970.—Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
Mr. FALLON, from the Committee on Public Works,
submitted the following
REPORT
[To accompany S. 3619]
The Committee on Public Works, to whom was referred the bill
(S. 3619) to revise and expand Federal programs for relief from
the effects of major disasters, and for other purposes, having
considered same, reports favorably thereon with amendment and
recommends that the bill as amended do pass. The amendment is
as follows:
Strike out all after the enacting clause and insert a substitute
text which is printed in the reported bill in italic type.
PURPOSE
The purpose of S. 3619 as amended, is to—
1. Amend the Act, approved September 30, 1950 (Public Law
875, Eighty First Congress; 42 U.S.C. 1855-1855g; to clarify the
scope and extent of Federal assistance authorized by the Congress
for repair or restoration of facilities; to provide for temporary
housing of disaster victims; and for use of the Salvation Army in
Federal disaster relief activities.
2. Amend the Disaster Relief Act of 1969 (Public Law 91-79;
Stat. 125) by extending, or terminating, its temporary provisions
and modifying certain permanent sections.
3. Provide for relocation assistance payments under section 114
of the Housing Act of 1949 that might otherwise be denied as a
result of a major disaster as determined by the President.
4. Provide grants to local governments to compensate for sub-
stantial loss of property tax revenue.
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926 LEGAL COMPILATION—GENERAL
5. Provide for Federal assistance in advance of an imminent
major disaster.
6. Provide for study by Office of Emergency Preparedness to
determine what plans, procedures, and facilities are needed for
hazard reduction purposes related to various types of maj or disas-
ters.
[p. l]
7. Amend the Disaster Relief Acts of 1950, 1966 and 1969 to
make applicable certain provisions of the Disaster Relief Act of
1950 to the two subsequent Acts and to this legislation.
8. Provide for the directive authority of the Disaster Relief Act
of 1950 to be applicable to the two subsequent Acts and to this
legislation.
9. Provide for disposition of temporary housing by direct sale to
disaster victims.
10. Establish the effective dates for Federal disaster assistance
authorized by this Act.
SECTION-BY-SECTION SUMMARY
Section 1. Provides that the act may be cited as the "Disaster
Relief Act of 1970".
Section 2. Amends Public Law 875, Eighty-first Congress, as
follows:
(1) Strikes out "essential" from section 1, Public Law 81-875.
The intent is to permit the repair or restoration of public facilities
without regard to essentiality.
(2) Amends the definition of the term "major disaster" in Pub-
lic Law 81-875 to require that Governors certify a need for "Fed-
eral disaster assistance" rather than just assistance under Public
Law 81-875. The amendment also deletes a reference to the Board
of Commissioners of the District of Columbia since that Board no
longer exists.
(3) Amends the definition of the term State to include the
District of Columbia.
(4) Deletes the reference to the District of Columbia in the
definition of local government.
(5) Revises section 3(d) of Public Law 81-875 to provide that
Federal contributions for permanent repair or replacement of
public facilities of State and local governments shall not exceed
the net cost of restoring such facilities, using the basis of design
of the facilities as they existed immediately prior to the disaster,
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STATUTES AND LEGISLATIVE HISTORY 927
but in conformity with current codes and specifications. This sec-
tion has been further amended to provide that no rental shall be
charged for the first twelve months for temporary housing. After
that, rentals would be charged, based on fair market value ad-
justed to take into consideration the financial ability of the occu-
pant to pay.
(6) Revises section 4, Public Law 81-875 to add the Salvation
Army as a private relief organization authorized to distribute
needed supplies in a disaster area.
Section 3. Amends certain provisions of the Disaster Relief Act
of 1969 (Public Law 91-79) as follows:
(1) Amends section 6 of the Disaster Relief Act of 1969, con-
cerning the disaster loan authorities of the Small Business Admin-
istration by:
(a) Including as eligible for SBA disaster loans, such in-
jury, loss, or damage which may result from a disaster when
determined by (a) the Secretary of Agriculture; (b) the
Administrator of the Small Business Administration; and (c)
the President.
(b) Providing for standardizing the interest rates on loans.
[even though assistance may be available from private
sources.] The maximum allowable interest rate would be 6
percent.
(c) Providing that loans shall not be denied on the basis of
the age of the applicant.
[p. 2]
(d) Providing that such loans may not exceed the current
repair or replacement cost of the disaster loss.
(e) Providing that in cases of hardship resulting from
Presidentially determined disaster, the borrower may cancel
the principal of any loan in excess of $500, up to $2,500.
(/) Provide for refinancing of mortgages and loans.
(gr) Provide for loans without regard to whether private
sources are available for such loans.
Section 3(2) provides the same amendments for Farmers Home
Administration as for the Small Business Administration.
Section 3(3) (A) amends section 8(A) of Public Law 91-79 by
adding assistance to "local governments". The act now only refers
to individuals.
Section 3(3) (B) amends section 8(c) of Public Law 91-79 to
eliminate the cutoff date for State plans and provides that plans
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928 LEGAL COMPILATION—GENERAL
developed under this section shall be applicable to local govern-
ments as well as individuals.
Section 3(3) (C) further amends section 8 of Public Law 91-79
by authorizing matching grants to States up to $25,000 per annum
for purposes of improving, maintaining, and updating State disas-
ter assistance plans.
Section 3 (4) amends section 14, Public Law 91-79 to authorize
the use of Federal agencies to clear debris from publicly and
privately owned lands and waters, when determined to be in the
public interest. Authorization is also provided for grants to any
State for similar debris clearance. A requirement is imposed that
State and local governments must arrange to provide uncondi-
tional authorizations for the removal of such debris and that the
Federal Government be indemnified against claims arising from
such removal.
Section 3(5) (A) amends section 15, Public Law 91-79 to delete
the final date for assistance under that Act, established by existing
law as December 31,1970.
Section 3(5) (B) provides that sections 2, 4, and 10 of Public
Law 91-79 shall not be in effect after December 31, 1970. Section
2 provides for a 50 percent Federal contribution for the perma-
nent repair or reconstruction of non-Federal aid highways and is
not necessary in view of a revised standard of repair for public
facilities eligible for assistance under Public Law 81-875. Section
4 with respect to public land entryman is considered a duplication
of existing authority. Section 10 which provides for temporary
housing has been deleted in favor of a modified temporary housing
provision. All other sections of Public Law 91-79 would remain in
effect.
Section 4. Provides that no person otherwise eligible for reloca-
tion assistance payments authorized by section 114 of the Housing
Act of 1949 shall be denied such eligibility as a result of a major
disaster.
Section 5. Authorizes grants to any local government, which, as
a result of a major disaster, has suffered a substantial loss of
property tax revenue (both real and personal). Grants made
under this Section may be made for the tax year in which the
disaster occurred and for each of the following two tax years.
Section 6. Permits the President to take effective action to avert
or lessen the effects of a catastrophe which threatens to become a
major disaster. It is not necessary for the President to declare a
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STATUTES AND LEGISLATIVE HISTORY 929
major disaster before assistance can be provided under this sec-
tion.
[P. 3]
Section 7. Provides for the Director, OEP, to study and investi-
gate what can be done to provide effective action to prevent or
lessen losses of property and personal injury or deaths which
could result from forest or grass fires, earthquakes, tornadoes,
freezes and frosts, tsunami, storm surges and tides and floods
which are or threaten to become major disasters. A report of the
study and investigation to include recommendations should be sub-
mitted to the Congress no later than one year after enactment.
Section 8. Adopts for the purposes of this act, Public Law
89-769, and Public Law 91-79, the following definitions contained
in Public Law 81-875: "major disaster", "United States",
"State", "Governor", "local government", and "Federal agency".
This section also (1) amends section 7 of Public Law 81-875 to
include Public Law 91-79 and Public Law 89-769 within that part
of section 7 which authorizes Federal agencies to accept and util-
ize local services and facilities of consenting State and local gov-
ernments; and extends that provision of section 7 of Public Law
81-875 which authorizes Federal agencies to liberalize employ-
ment and contracting practices; (2) amends section 7 of Public
Law 81-875 so that obligations may be incurred by any Federal
agency in such amount as may be made available to it by the
President out of funds available under this act; (3) further
amends section 7, Public Law 81—875 to include this act, section 9,
Public Law 99-769 and Public Law 91-79 so that Federal agency
work performed and expenditures made under section 3, Public
Law 81-875, would be eligible for reimbursement in such amounts
as the President may deem appropriate.
Section 9. Authorizes the President to utilize the resources of
Federal departments or agencies for use in disaster relief, with or
without reimbursement, as he deems appropriate. Similar author-
ity was granted by sections 3 and 7 of Public Law 81-875 but not
by Public Law 89-769 or Public Law 91-79.
Section 10. Provides that, notwithstanding any other provision
of law, such temporary housing including, but not limited to mo-
bile homes or other readily fabricated buildings which were pur-
chased under proper disaster authorities for disaster victims re-
quiring accommodations may be sold directly to disaster victims
who are occupants at fair and equitable prices.
-------
930 LEGAL COMPILATION—GENERAL
Section 11. This section would authorize the President to pro-
vide financial assistance in the form of mortgage or rental pay-
ments to individuals or families who had suffered financial hard-
ship caused by a major disaster, and who had received written
notice of dispossession or eviction from their residence. The assist-
ance could be furnished for not in excess of one year, or for the
duration of the financial hardship, whichever is the lesser.
Section 12. Provides that the benefits of this act, and the amend-
ments made by this act, shall apply to those Presidentially de-
clared major disasters, and those disasters and natural disasters
as determined by the Secretary of Agriculture and the Adminis-
trator of the Small Business Administration which occurred on or
after December 1, 1968. In the case of any such disaster which
occurs on or after December 1, 1968, and before the date of enact-
ment of this act, the eligible applicant for assistance shall elect to
receive such assistance either under this act (including the amend-
ments made by this act) or under the law applicable to such
disasters which occurred prior to December 1, 1968. It is impor-
[p-4]
tant to distinguish between the several "declaration" authorities
cited herein. Each type of "declaration" provides specific statutory
disaster benefits. A disaster determination by the Secretary of
Agriculture and the Small Business Administration would gener-
ate certain disaster relief benefits only under their respective au-
thorities ; such disaster determinations do not, either individually
or together, trigger the disaster relief benefits available under a
Presidential declaration of a major disaster.
NEED FOR LEGISLATION
Public Law 81-875, as amended, is the basic authority for Fed-
eral disaster assistance. This law provides Federal assistance to
State and local governments in restoring public facilities damaged
or destroyed in a major disaster. The general framework of the
program followed a stable pattern throughout the 1950's due to its
emphasis on assisting the public sector, requiring relatively small
expenditures from the President's Disaster Relief Fund.
In recent years, the extent of Federal participation in disaster
relief has shown a marked increase. During the period 1953-60,
disaster assistance funds totaled $86.6 million. This can be com-
pared with Federal expenditures of $655.5 million for major disas-
ters declared during 1962-1969.
-------
STATUTES AND LEGISLATIVE HISTORY 931
Fortunately, the loss of lives and personal injuries caused by
disasters have decreased. This is due to the development of more
accurate weather forecasting and warning techniques. On the
other hand, property losses have significantly increased. The ex-
panding populace and surging property values—residential, com-
mercial, and industrial—have greatly increased the replacement
costs of these facilities.
Calendar year 1969 exemplifies the increased requirement for
Federal response to disasters under modern conditions of popula-
tion and environment. During that year the President declared 29
major disasters—the largest number since passage of Public Law
81-875 in 1950. Twenty-three States were affected, six of them
twice. During the period 1953 through 1960, an average of 14
major disasters were declared.
Hurricane Camille slammed into the gulf coast in August of
1969. Known deaths totaled 262 and public and private property
loss is estimated at $1.5 billion. The Office of Emergency Prepar-
edness has allocated approximately $72 million for the five States
affected by this disaster.
Updating and expanding of the Federal disaster relief program
was provided by the Disaster Relief Act of 1966 (Public Law
89-769) and by the Disaster Relief Act of 1969 (Public Law
91-79).
Public Law 91-79 expanded Federal assistance to include cer-
tain areas in need of further attention. Permanent sections of this
Act are those providing for the appointment of a Federal coordi-
nating officer, and authority for the President to make grants and
loans to any State in the suppression of forest or grassland fires
which may threaten to become a major disaster. The sections
scheduled to expire on December 31, 1970, are those providing for
permanent repair of road and highway facilities; timber sale con-
tracts ; public land entrymen; liberalized loan programs of Small
Business Administration and Farmers Home Administration; de-
bris removal; temporary housing; food stamps; unemployment
[p. 5]
compensation and development of comprehensive plans for indi-
viduals.
Basically, Public Law 81-875 is sound legislation and has with-
stood the test of time. Obviously some amendments are needed to
incorporate provisions for additional assistance in both the public
and private sectors to preclude the need for special legislation
after each major disaster impacting large areas and populations.
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932 LEGAL COMPILATION—GENERAL
Sufficient time has not elapsed since passage of Public Law 91-79
to evaluate thoroughly the results of each section of this law. An
approach in the form of omnibus legislation is not recommended
at this time as undoubtedly further revisions will be required
based upon experience gained with new programs in the next two
or three years.
S. 3619, as amended, meets all of the essential requirements of
an effective legislative program for Federal assistance for three
types of disasters. These three types are: (1) major disasters
declared by the President; (2) natural disasters designated by the
Secretary of Agriculture; and (3) disaster loan areas designated
by the Administrator, Small Business Administration.
COMMITTEE HEARINGS
The Subcommittee on Flood Control, House Committee on Pub-
lic Works, visited during 1969, the areas in Mississippi and Louis-
iana devastated by Hurricane Camille to observe disaster relief
activities and to evaluate the effectiveness of existing legislative
authorities. During the public hearings, before the Subcommittee
on Flood Control many witnesses appeared and testified on the
needs for disaster relief legislation, additional witnesses made
their position known through submission of written reports while
affected Federal agencies submitted reports and analyses. Each of
these presentations received complete and careful attention from
the subcommittee.
COMMITTEE VIEWS
The committee hopes that S. 3619, as amended and submitted to
the House of Representatives will receive the support it deserves,
as an act designed to clarify and update existing legislation and to
provide for new legislative authorities where needed for new pro-
grams such as tax revenue maintenance. Emphasis is properly
given to preparedness measures and to prevention of disasters.
Further experience is needed with debris clearance from private
property, temporary housing and unemployment compensation to
evaluate the cost and effectiveness of those forms of assistance to
disaster victims. Some programs, such as maintenance of tax rev-
enues, mortgage payments, and relocation assistance are as yet
untried. Experience with such programs is desirable before an
effort is made to codify all existing disaster assistance legislation
into a single act.
-------
STATUTES AND LEGISLATIVE HISTORY 933
MONETARY AUTHORIZATION
S. 3619, as amended, provides for no specific dollar authoriza-
tion, the exact amount of funds needed will depend upon the fre-
quency and magnitude of disasters that occur and the elections of
options made by eligible applicants for those disasters which have
occurred during the period of overlap of recent disaster legisla-
tion.
[p. 6]
EXPLANATION OF THE BILL
Section 2
Paragraph (1) strikes out "essential" from section 1 of Public
Law 81-875. This provides for greater latitude in the administra-
tion in the repair of public facilities, however it is not intended to
provide for repairs to facilities which are obsolete and not in use.
Paragraph (2) changes the definition of "major disaster" by
requiring the Governor of a State to certify the need for "Federal
disaster assistance" instead of merely "disaster assistance under
this Act." Paragraphs (3) and (4) ensure that the District of
Columbia would be listed as a State instead of a local government.
Paragraph (5) removes the authority for "clearing debris and
wreckage" from section 3(d) of Public Law 81-875, and extends
the scope of Federal aid to permit making permanent repairs and
replacements of public facilities instead of only emergency repairs
and temporary replacements. The Federal contribution would be
limited to the net cost of restoring the facility using the basis of
design of that facility as it existed immediately prior to the disas-
ter, but in accordance with current codes, standards and specifica-
tions. The intent here is to provide for Federal payment for a new
facility that would provide the same capacity as the old facility if
it were to be built today according to up-to-date standards. Two
examples, (1) If a 400 pupil school constructed in 1950 was de-
signed on then existing criteria to provide a certain number of
square feet per student, a cafeteria and library, but no gymnasium
or swimming pool, the Federal contribution would be available to
the amount that would be required for a 400 pupil school with a
cafeteria and library. It would not pay for a swimming pool and
gymnasium even though such amenities would be required if the
school were to be built now. Nor would the Federal government
pay for a 600 pupil school which would be called for if the school
were to be designed new today. If, however, today's standards
called for a greater number of square feet per student the Federal
-------
934 LEGAL COMPILATION—GENERAL
contribution would properly pay for space based on the new
figure; similarly lighting levels, plumbing and installed fixtures
based on 1970 levels rather than 1950 criteria would be used in
determining the Federal contribution. Example (2) : An old
bridge containing two ten foot lane without shoulders or sidewalks
was washed out as a result of a disaster. Assuming that the
average daily traffic would now justify a four lane bridge, the
Federal contribution would nevertheless be limited to 100% of the
net cost of replacing two lanes. If current standards now require
twelve foot lanes, shoulders and sidewalks, the Federal contribu-
tion would properly include those costs. If the State or local gov-
ernment decided to build a four lane bridge; it could do so but the
Federal contribution would be limited to the cost of a new two
lane bridge.
Paragraph (5) of section 2 of the committee amendment pro-
vides further, if temporary housing or emergency shelter is pro-
vided, the first twelve months of occupancy would be rent-free.
After that, rentals would be based on the fair market rental value
of the accommodations furnished. Adjustment of the rentals
charged to disaster victims occupying temporary housing shall be
made downward based upon the financial ability of the occupants
to pay. There would be no limitation upon the type of acquisition
available to the Federal Government in acquiring temporary hous-
[p-7]
ing or other emergency shelter, including but not limited to, mo-
bile homes or other readily fabricated dwellings.
Paragraph (6) provides that the Salvation Army may act as a
distribution organization in addition to the "Red Cross or other-
wise."
Section 3
Paragraph (1) of section 3 of the committee amendment would
amend the Disaster Relief Act of 1969 (Public Law 91-79, 83
Stat. 125) by (1) amending Section 6 to include as eligible for
Small Business Act disaster relief loans losses, damage or eco-
nomic injury resulting from a natural disaster as determined by
the Secretary of Agriculture, a disaster as determined by the
Administrator of the SBA as well as the now included major
disaster as determined by the President. "Injury" is understood to
be economic injury, "Loss or damage" is no longer confined to
property loss or damage.
-------
STATUTES AND LEGISLATIVE HISTORY 935
The authority contained in existing section 6(2) of Public Law
91-79 for the granting of any loan for repair, rehabilitation or
replacement of property damaged or destroyed is retained. How-
ever, the interest rate would be determined by the Secretary of the
Treasury taking into consideration the current average market
yield on outstanding marketable obligations of the United States
with remaining periods of maturity of ten to twelve years reduced
by not to exceed 1 per centum per annum. However, the maximum
allowable interest rate would be 6 percent. The existing statute
requires the loan to bear an interest rate based upon all interest
bearing obligations of the United States with maturities of 20
years or more.
This provision also eliminates the requirement in existing sec-
tion 6(2) of Public Law 91-79 to the effect that a loan granted
without regard to whether the required financial assistance is
otherwise available from private sources would not be eligible for
cancellation or deferral. The revised section 6(a), paragraphs
(1), (3) and (4) would make such loans eligible for deferral or
cancellation without regard to availability of financial assistance
from private sources.
Existing section 6(1) provides that to the extent loss or damage
is not compensated for by insurance or otherwise, the borrower of
any loan in excess of $500 shall have the option to cancel the
interest on the loan or the principal of the loan or any compensa-
tion of interest or principal not to exceed $1,800 and the Small
Business Administration may defer interest payments or principal
payments or both during the first three years of the term of the
loan without regard to the ability of the borrower to make such
payments. The committee amendment permits, in cases of hard-
ship resulting from Presidentially determined disasters, the can-
cellation of the principal only of the loan in excess of $500 up to
$2,500. This means that the borrower in such case would no
longer be able to cancel the interest due but would have the
advantage of cancelling principal up to $2,500 rather than $1,800.
Hardship as used herein is to be liberally interpreted.
The revised section 6(4) contained in the committee amendment
retains provision for deferral of interest and principal payments
during the first three years of the term of the loan but eliminates
the existing requirement that the deferral shall be made "without
regard to the ability of the borrower to make such payment." It
further requires that the new interest rate based on 10 to 12 year
obligations of the U.S. (but in no event to exceed 6 percent per
annum) shall be used.
-------
936 LEGAL COMPILATION—GENERAL
The existing section 6(3) permitting refinancing of mortgage or
other liens in the case of total destruction or substantial property
[P. 8]
damage of a home or business concern is replaced by the revised
section 6(2) which permits refinancing only to the amount of the
physical loss sustained. This subsection applies only to major dis-
asters declared by the President.
A new section 6 (c) provides that a loan shall not be denied on
the basis of the age of the applicant.
Paragraph (2) of section 3 of the committee amendment pro-
vides for a revised section 7 dealing with emergency farm loans
under the Consolidated Farmers Home Administration Act of
1961, as amended (7 U.S.C. 1961-1967) and provides the same
requirements for these FHA Act loans as are provided in revised
section 6 for the Small Business Act loans.
Paragraph (3) (A) of section 3 of the committee amendment
authorizes the President to provide assistance to the States in
developing disaster relief plans and programs to include assistance
to "local governments", thus adding local governments into the
Disaster Relief Act of 1969 which now refers only to individuals.
Paragraph (3) (B) of this section makes section 8 of the 1969
Act permanent law by eliminating the deadline date of December
31, 1970, by which the States were to submit their State plans to
the President.
Paragraph (3) (C) of this section authorizes the President to
make grants not to exceed 50% of the cost of improving, main-
taining and updating State disaster assistance plans. This is lim-
ited to $25,000 per annum to each State.
Paragraph (4) of this section would amend section 14 of the
existing 1969 act relating to debris removal to permit removal of
debris or wreckage from both publicly and privately owned lands
and waters. It also authorizes the President to use Federal depart-
ments, agencies and instrumentalities to clear the debris; how-
ever, this authority shall not be exercised unless the State or local
government first arranges for an unconditional authorization for
removal of the debris or wreckage from public and private prop-
erty. The existing authority to make grants to States for the
purpose of debris removal from privately owned lands and waters
is expanded to permit grants to local governments and also to
cover both publicly and privately owned lands and waters. The
authority of the State to make payments to any person for reim-
-------
STATUTES AND LEGISLATIVE HISTORY 937
bursement of expenses actually incurred by such person for the
removal of debris would be removed from the Federal law.
In the case of debris removal from private property, the State
or local government must first agree to indemnify the Federal
government against any claim arising from the removal.
Paragraph (5) (A) of this section eliminates the cutoff date for
eligibility for assistance under the 1969 Act by striking out "De-
cember 31, 1970."
Paragraph (5) (B) repeals sections 2, 4 and 10 of the 1969 Act
[Public Law 91-79] dealing with highway repairs, public land
entrymen, and temporary dwellings, respectively, after December
31, 1970. This is no change from the existing law. However, the
result of these amendments will be to continue in effect sections 3
(timber sales contracts), 6 (SBA disaster loans, as amended), 7
(emergency farm loans, as amended), 11 (food coupon allot-
ments), 12 (unemployment assistance) and 14 (debris removal, as
amended), all of which would have otherwise been terminated as
of December 31, 1970. Sections 5, 8, 9 and 13 would have remained
CP. 9]
in effect in any case. These amendments made by paragraph (5)
are to go into effect upon the date of enactment of this act.
Section 4
This section requires that no person otherwise eligible for relo-
cation assistance payments authorized by section 114 of the Hous-
ing Act of 1949 shall be denied such eligibility as a result of a
major disaster.
This section would make clear the authority of the Secretary of
Housing and Urban Development to authorize the making of relo-
cation payments under the urban renewal program in certain
cases to persons displaced by a major disaster. If the area of a
major disaster is subsequently approved for an urban renewal
project, persons who have been displaced because of the disaster
may be unable to return and reoccupy property they may have
owned or what remains of it, prior to the time of its acquisition.
Under the amendment, relocation payments could be made in such
cases without regard to whether persons displaced by the disaster
are able to return to the area, provided that they are in all other
respects eligible for such payments.
-------
938 LEGAL COMPILATION—GENERAL
Section 5
This section would authorize the President to make grants to
any local government, which, as a result of a major disaster has
suffered a substantial loss of property tax revenue (both real and
personal). The limitations placed upon these grants are: (1) They
may only be made for the tax year in which the disaster occurred
and for each of the following two tax years. (2) The grant shall
not exceed the difference between the annual average of all prop-
erty tax revenues received during the three tax year period imme-
diately preceding the tax year in which the major disaster oc-
curred and the actual property tax revenue received for the tax
year in which the disaster occurred and for each of the two suc-
ceeding tax years. (3) There must be no reduction in tax rates
and tax assessment evaluation factors of the local government. If,
however, there has been such a reduction, a grant may still be
made for the year or years when such reduction is in effect, but,
the President shall use the tax rates and tax assessment factors in
effect at the time of the disaster without reduction in order to
determine revenues which would have been received. These reven-
ues will then be used in calculating the difference as the basis of
determining the grant instead of the actual revenues.
Section 6
This section contains broad authority that would permit the
President, if he determines that a major disaster is imminent, to
use Federal departments, agencies and instrumentalities to divert
or lessen the effects of a disaster before it actually occurs.
Section 7
This section directs the Director of the Office of Emergency
Preparedness to study and investigate ways and means to provide
effective action to prevent or lessen losses of property and per-
sonal injury or deaths which could result from forest or grass fires,
earthquakes, tornadoes, freezes and frosts, tsunami, storm surges
and tides and floods which are or threaten to become major disas-
ters. The report is due not later than one year after date of
enactment of the Act and is required to contain recommendations.
[p. 10]
Section 8
Subsection (a) applies the definitions of "major disaster" and
other definitions as used in the Act of September 30, 1950, as
-------
STATUTES AND LEGISLATIVE HISTORY 939
amended, (42 U.S.C. 1855A) to this Act, the Disaster Relief Act
of 1969 and Section 9 of the Disaster Relief Act of 1966.
Subsection (b) would amend the Act of September 30, 1950, as
amended, 42 U.S.C. 1855 (f), to include this Act, the Disaster
Relief Act of 1969 and section 9 of the Disaster Relief Act of 1966
within the provision authorizing Federal agencies to accept and
utilize local services and facilities of consenting States or local
governments. It would also extend that Act's provision authoriz-
ing Federal agencies to employ temporary additional personnel
without regard to the civil service laws. (Section 9 of the Disaster
Relief Act of 1966 authorizes sums necessary to reimburse not
more than 50 percent of eligible costs incurred to repair, restore
or reconstruct any State, county municipality, or local government
agency project for flood control, navigation, irrigation, reclama-
tion, public power, sewage treatment, water treatment, watershed
development, or airport construction.) The 1950 act would be fur-
ther amended to provide that obligations may be incurred by an
agency in the amount as may be made available out of funds
specified to carry out this act or section 9 of the Disaster Relief
Act of 1966 and the Disaster Relief Act of 1969 instead of only the
funds specified under section 8 of the 1950 Act. A further amend-
ment to section 7 of the September, 30, 1950 Act would again add
this Act, section 9 of the Disaster Relief Act of 1966 and the
Disaster Relief Act of 1969 to expenditures under section 3 of the
1950 act as eligible for reimbursement to a Federal agency. (Sec-
tion 3 authorizes Federal assistance by utilizing or lending to
States or local governments equipment, supplies, facilities, person-
nel and other resources.)
Section 9
This section grants the President authority to use all Federal
departments or agencies to the best advantage under varying con-
ditions to exercise the authorities granted him by this act, the act
of September 30, 1950 '(42 U.S.C. 1855-1855g), the Disaster Re-
lief Act of 1966 and the Disaster Relief Act of 1969.
Section 10
This section provides that mobile homes or other readily fabri-
cated dwellings used as temporary housing in major disasters may
be sold directly to the occupants thereof at fair and equitable
prices. The intent of this provision is to provide primary housing
-------
940 LEGAL COMPILATION—GENERAL
to persons who have lost their dwelling place as the result of a
major disaster, not to provide secondary or recreational housing.
It is intended that the purchaser would have the responsibility to
provide a location where the dwelling could be placed which met
current requirements of State or local zoning ordinances or other
laws respecting such dwelling units, and for movement of such
dwelling to that location.
Section 11
This section authorizes grants as temporary assistance in the
form of mortgage or rental payments to individuals who have
suffered severe financial hardship caused by a major disaster and
who have received written notice of dispossession or eviction from
[P. HI
their residence because of foreclosure of a mortgage or lien, can-
cellation of a contract of sale, or termination of a lease. This
assistance could be furnished for not in excess of one year or until
the individual's financial hardship ended, whichever was the
lesser.
Section 12
This section provides that this Act, and the amendments made
by this Act, would apply to major disasters as determined by the
President; to any natural disaster as determined by the Secretary
of Agriculture; and to disasters as determined by the Administra-
tor of Small Business, which disasters occur on or after December
1, 1968. A declaration by the Administrator or Secretary would
make available only the benefits of the sections of this Act which
each such officer administer. In any of the above mentioned types
of disasters which occurred on or after December 1, 1968 and
before the date of enactment of this Act, whoever is eligible for
Federal disaster relief assistance as a result of such a declaration
shall have the opportunity to make an election to receive benefits
either under this Act (including the amendments made by this
Act) or under the laws applicable to such disasters occurring
prior to December 1, 1968. Each applicant who has already re-
ceived benefits under PL 91-79 would have to determine whether
he would accept benefits available under this Act or those Acts
applicable to disasters occurring prior to December 1, 1968, but in
no case will duplicate benefits be provided.
-------
STATUTES AND LEGISLATIVE HISTORY
941
NATURAL DISASTERS DECLARED BY THE PRESIDENT WHICH OCCURRED DEC. I, 1968. TO SEPT. 25. 1970
Contract Date of
No.
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
declaration
Jan. 26,
Feb. 15,
Apr. 18,
....do..
....do..
Apr. 19,
Apr. 25,
May 1,
May 19,
June 6,
July 11.
....do..
July 15,
....do..
..do..
Aug. 5,
Aug. 14,
Aug. 15,
Aug. 18,
Aug. 19,
...do..
Aug. 23,
Aug. 26.
Aug. 30,
....do..
Sept. 3,
Sept. 24,
Nov. 7,
Dec. 19,
Feb. 2,
Feb. 16,
Feb. 27,
Apr. 9,
May 13,
June 5,
...do..
July 3,
July 22,
....do..
Aug. 4,
Sept. 22,
....do..
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1969
1970
1970
1970
1970
1970
1970
1970
1970
1970
1970
Type
Severe storms and flooding
....do
Flooding _
do
do
....do
....do
....do
Severe storms and flooding
Flooding
Severe storms and flooding
do
....do
Tornados, severe storms, and flooding
do
Heavy rains and flooding ...
Severe storms, heavy rains, and flooding
Flooding
Hurricane Camille
....do
Severe storms and flooding
....do
Heavy rains and flooding
....do
Severe storms and flooding
....do
....do
Hurricane Camille
Heavy rains and a landslide
Heavy snow, rains and flooding _
Severe storms and flooding
Severe storms, ice jams, and flooding
Tornadoes, execessive rains, and flooding
Tornadoes, windstorms, and flooding
Severe storms and flooding
do
Heavy rains and flooding
....do
do
Hurricane Celia
Heavy rains and flooding _
Heavy rains and flash flooding
State
California
Arkansas
Minnesota
North Dakota
South Dakota
Nevada
Iowa
Wisconsin
Colorado
Illinois
Tennessee
Wisconsin
Kentucky
Ohio
Kansas
Minnesota
Iowa
California
Mississippi
Louisiana
Pennsylvania
Virginia.
New York
Illinois
Vermont
West Virginia
do
Alabama
Alaska
Kentucky
California
Maine
Alabama .
Texas
North Dakota
Kentucky
Florida...
New York
Minnesota
Texas
Colorado
Arizona
Congressional
districts
1, 2, 3, 4, 12-14,
16-35, 38.
1-4.
1-B.
1,2.
1,2.
1.
1, 2, 4-7.
3, 7, 10.
1-4.
16, 19, 20.
4,6.
1-5.
1, 2, 5.
5, 8-11, 13, 14,
16-23.
1-5.
2.
1-6.
12.
3, 4, 5.
.1,6.
6, 11, 11, 15.
4, 5, 6, 7, 8.
27.
16, 19, 20, 21, 23, 24
1.
2,3.
2.
1,2.
1.
5,7.
1, 2, 4, 8.
1,2.
3, 4, 5, 6.
18, 19.
1,2.
2,5.
1.
27, 33, 38.
7,8.
14, 23.
4.
1,3.
[p. 12]
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of Rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed to
be omitted is enclosed in black brackets, new matter is printed in
italic, existing law in which no change is proposed is shown in
roman):
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942 LEGAL COMPILATION—GENERAL
DISASTER RELIEF ACT OF 1969
*******
[SEC. 6. In the administration of the disaster loan program
under section 7(b) (1) of the Small Business Act, as amended (15
U.S.C. 636 (b)), in the case of property loss or damage in any
affected State resulting from a major disaster the Small Business
Administration—
[ (1) to the extent such loss or damage is not compensated
for by insurance or otherwise, (A) shall at the borrower's
option on that part of any loan in excess of $500 cancel (i)
the interest due on the loan, or (ii) the principal of the loan,
or (iii) any combination of such interest or principal except
that the total amount so canceled shall not exceed $1,800, and
(B) may defer interest payments or principal payments, or
both, in whole or in part, on such loan during the first three
years of the term of the loan without regard to the ability of
the borrower to make such payments.
[ (2) may grant any loan for the repair, rehabilitation, or
replacement of property damaged or destroyed, without re-
gard to whether the required financial assistance is otherwise
available from private sources, except that (A) any loan
made under authority of this paragraph shall bear interest at
a rate equal to the average annual interest rate on all inter-
est-bearing obligations of the United States having maturities
of 20 years or more and forming a part of the public debt as
computed at the end of the fiscal year next preceding the date
of the loan, adjusted to the nearest one-eighth of one per
centum, and (B) no part of any loan made under authority of
this paragraph shall be eligible for cancellation or deferral as
authorized in paragraph (1) of this section.
[ (3) may in the case of the total destruction or substantial
property damage of a home or business concern refinance any
mortgage or other liens outstanding against the destroyed or
damaged property if such financing is for the repair, rehabili-
tation, or replacement of property damaged or destroyed as a
result of such disaster and any such refinancing shall be sub-
ject to the provisions of paragraphs (1) and (2) of this
section.]
Sec. 6. (a) In the administration of the disaster loan program
under sections 7(b) (1), (2), and (4) of the Small Business Act,
as amended (15 U.S.C. 63(b)), in the case of injury, loss, or
damage resulting from a major disaster as determined by the
-------
STATUTES AND LEGISLATIVE HISTORY 943
President, a natural disaster as determined by the Secretary of
Agriculture, and a disaster as determined by the Administrator of
the Small Business Administration—
(1) to the extent such injury, loss, or damage is not com-
pensated for by insurance or otherwise, may grant any loan
for repair, rehabilitation, or replacement of property injured,
damaged, or destroyed, without regard to whether the re-
quired financial assistance is otherwise available from private
sources.
[P. 13]
(2) may, in the case of the total destruction or substantial
property damage of a home or business concern, refinance any
mortgage or other liens outstanding against the destroyed or
damaged property if such property to is to be repaired, reha-
bilitated, or replaced, except that the amount refinanced shall
not exceed the amount of the physical loss sustained. This
clause shall apply only to loans made to cover injury, losses,
and damage resulting from major disasters as determined by
the President.
(3) to the extent that repayment of a loan made under this
section would constitute a hardship upon the borrower, may,
on that part of any loan in excess of $500, cancel the principal
of the loan, except that the total amount so canceled shall not
exceed $2,500. This clause shall apply only to loans made to
cover injury, losses, and damage resulting from major disas-
ters as determined by the President.
(4) may defer interest payments or principal payments, or
both, in whole or in part, on any loan made under this section
during the first three years of the term of the loan, except
that any such deferred payments shall bear interest at the
rate determined under subsection (b) of this section.
(b) Any loan made under this section shall not exceed the
current cost of repairing or replacing the disaster injury, loss, or
damage in conformity with current codes and specifications. Any
such loan (including any refinancing under clause (2) and any
deferred payment under clause (4) of subsection (a)) shall bear
interest at a rate determined by the Secretary of the Treasury,
taking into consideration the current average market yield on
outstanding marketable obligations of the United States with re-
maining periods to maturity of ten to twelve years reduced by not
to exceed 1 per centum per annum. In no event shall any loan
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944 LEGAL COMPILATION—GENERAL
made under this section bear interest at a rate in excess of 6 per
centum per annum.
(c) A loan under this section shall not be denied on the
basis of the age of the applicant.
[SEC. 7. In the administration of the emergency loan program
under subtitle C of the Consolidated Farmers Home Administra-
tion Act of 1961, as amended (7 U.S.C. 1961-1967), in the case of
property loss or damage in any affected State resulting from a
major disaster the Secretary of Agriculture—
[ (1) to the extent such loss or damage is not compensated
for by insurance or otherwise, (A) shall at the borrower's
option on that part of any loan in excess of $500 cancel (i)
the interest due on the loan, or (ii) the principal of the loan,
or (iii) any combination of such interest or principal except
that the total amount so cancelled shall not exceed $1,800, and
(B) may defer interest payments or principal payments, or
both, in whole or in part, on such loan during the first three
years of the term of the loan without regard to the ability of
the borrower to make such payments.
[ (2) may grant any loan for the repair, rehabilitation," or
replacement of property damaged or destroyed, without re-
gard to whether the required financial assistance is otherwise
available from private sources, except that (A) any loan
made under authority of this paragraph shall bear interest at
a rate equal to the average annual interest rate on all inter-
est-bearing obligations of the United States having maturities
of 20 years or more and forming a part of the public debt as
computed at the end of the fiscal year next preceding the date
[P. 14]
of the loan, adjusted to the nearest one-eighth of one per
centum, and (B) no part of any loan made under authority of
this paragraph shall be eligible for cancellation or deferral as
authorized in paragraph (1) of this section.
[ (3) may in the case of the total destruction or substantial
property damage of a home or business concern refinance any
mortgage or other liens outstanding against the destroyed or
damaged property if such financing is for the repair, rehabili-
tation, or replacement of property damaged or destroyed as a
result of such disaster and any such refinancing shall be sub-
ject to the provisions of paragraphs (1) and (2) of this
section.]
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STATUTES AND LEGISLATIVE HISTORY 945
Sec. 7. (a) In the administration of the emergency loan pro-
gram under subtitle C of the Consolidated Farmers Home Admin-
istration Act of 1961, as amended (7 U.S.C. 1961-1967), and the
rural housing loan program under section 502 of title V of the
Housing Act of 1949, as amended (42 U.S.C. 1472), in the case of
loss or damage resulting from a major disaster as determined by
the President, or a natural disaster as determined by the Secre-
tary of Agriculture, the Secretary of Agriculture—
(1) to the extent such loss or damage is not compensated
for by insurance or otherwise, may grant any loan for the
repair, rehabilitation, or replacement of property damaged or
destroyed, without regard to whether the required financial
assistance is otherwise available from private sources.
(2) may, in the case of the total destruction or substantial
property damage of homes or farm service buildings and re-
lated structures and equipment, refinance any mortgage or
other lines outstanding against the destroyed or damaged
property if such property is to be repaired, rehabilitated, or
replaced, except that the amount refinanced shall not exceed
the amount of the physical loss sustained. This clause shall
apply only to loans made to cover losses and damage resulting
from major disasters as determined by the President.
(3) to the extent that repayment of such loan made under
this section would constitute a hardship upon the borrower,
may, on the part of any loan in excess of $500, cancel the
principal of the loan, except that the total amount so canceled
shall not exceed $2,500. This clause shall apply only to loans
made to cover losses and damage resulting from major disas-
ters as determined by the President.
(4) may defer interest payments or principal payments, or
both, in whole or in part, on loans made under this section
during the first three years of the term of the loan, except
that any such deferred payments shall themselves bear inter-
est at the rate determined under subsection (b) of this sec-
tion.
(b) Any loan made under this section shall not exceed the
current cost of repairing or replacing the disaster loss or damage
in conformity with current codes and specifications. Any such loan
(including any refinancing under clause (2) and any deferred
payment under clause (4) of subsection (a)) shall bear interest at
a rate determined by the Secretary of the Treasury, taking into
consideration the current average market yield on outstanding
marketable obligations of the United States with remaining peri-
-------
946 LEGAL COMPILATION—GENERAL
ods to maturity of ten to twelve years reduced by not to exceed 1
per centum per annum. In no event shall any loan made under this
section bear interest at a rate in excess of 6 per centum per
annum.
[p. 15]
(c) A loan under this section shall not be denied on the basis of
the age of the applicant.
SEC. 8. (a) The President is authorized to provide assistance to
the States in developing comprehensive plans and practicable pro-
grams for assisting individuals and local governments suffering
losses as the result of a major disaster. For the purposes of this
section, the term "State" includes the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, the territory of
Guam, American Samoa, and the Trust Territory of the Pacific
Islands.
(b) The President is authorized to make grants not to exceed
$250,000 to any State, upon application therefor, in an amount not
to exceed 50 per centum of the cost of developing the plans and
programs referred to in subsection (a).
[ (c) Any State desiring assistance under this section shall des-
ignate or create an agency which is specially qualified to plan and
administer such a disaster relief program, and shall, through such
agency, submit a State plan to the President not later than Decem-
ber 31, 1970, which shall (1) set forth a comprehensive and de-
tailed State program for assistance to individuals suffering losses
as a result of a major disaster and (2) included provision for the
appointment of a State coordinating officer to act in cooperation
with the Federal coordinating officer required by section 9 of this
Act.]
(1) Any State desiring assistance under this section shall desig-
nate or create an agency which is specifically qualified to plan and
administer a disaster relief program, and shall, through such
agency, submit a State plan to the President, which shall (1) set
forth a comprehensive and detailed State program for assistance
to individuals and to local governments suffering losses as a result
of a major disaster and (2) include provisions for the appoint-
ment of a State coordinating officer.
(d) The President shall prescribe such rules and regulations as
he deems necessary for the effective coordination and administra-
tion of this section.
(e) Upon the submission of such plans the President is author-
ized to report and recommend to the Congress, from time to time,
-------
STATUTES AND LEGISLATIVE HISTORY 947
programs for the Federal role in the implementation and funding
of comprehensive disaster relief plans, and such other recommen-
dations relating to the Federal role in disaster relief activities as
he deems warranted.
(/) The President is authorized to make grants not to exceed 50
per centum of the cost of improving, maintaining, and updating
State disaster assistance plans, except that no such grant shall
exceed $25,000 per annum to any State.
SEC. 14. The President, whenever he determines it to be in the
public interest, and acting through the Director of the Office of
Emergency Preparedness, is authorized to make grants to any
State or political subdivision thereof for the purpose of removing
debris deposited on privately owned lands and on or in privately
owned waters as a result of a major disaster, and such State or
political subdivision is authorized, upon application, to make pay-
ments to any person for reimbursement of expenses actually in-
curred by such person in the removal of such debris, but not to
exceed the amount that such expenses exceed the salvage value of
such debris.]
[p. 16]
Sec. 14- (a) The President, whenever he determines it to be in
the public interest, is authorized—
(1) through the use of Federal departments, agencies, and
instrumentalities, to clear debris and wreckage resulting from
a major disaster from publicly and privately owned lands and
waters.
(2) to make grants to any State or local government for
the purpose of removing debris or wreckage resulting from a
major disaster from publicly or privately owned lands and
waters.
(b) No authority under this section shall be exercised unless the
affected State or local government shall first arrange an uncondi-
tional authorization for removal of such debris or wreckage from
public and private property, and, in the case of removal of debris
or wreckage from private property, shall first agree to indemnify
the Federal Government against any claim arising from such re-
moval.
SEC. 15. (a) As used in this Act the term "major disaster"
means a major disaster as determined by the President pursuant
to the Act entitled "An Act to authorize Federal assistance to
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948 LEGAL COMPILATION—GENERAL
States and local governments in major disasters, and for other
purposes", approved September 30, 1950, as amended (42 U.S.C.
1855-1855g), which disaster occurred after June 30, 1967, [and
on or before December 31, 1970].
[ (b) This Act, other than sections 5, 8, 9, and 13, shall not be in
effect after December 31, 1970, except as is applies to major disas-
ters occurring before such date.]
(6) Sections 2, 4, and 10 of this Act shall not be in effect after
December 31,1970.
ACT OF SEPTEMBER 30, 1950
*******
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That it is the
intent of Congress to provide an orderly and continuing means of
assistance by the Federal Government to States and local govern-
ments in carrying out their responsibilities to alleviate suffering
and damage resulting from major disasters, to repair [essential]
public facilities in major disasters, and to foster the development
of such State and local organizations and plans to cope with major
disasters as may be necessary.
SEC. 2. As used in this Act, the following terms shall be con-
strued as follows unless a contrary intent appears from the con-
text:
(a) "Major disaster" means any flood, drought, fire, hurricane,
earthquake, storm, or other catastrophe in any part of the United
States which, in the determination of the President, is or threat-
ens to be of sufficient severity and magnitude to warrant disaster
assistance by the Federal Government to supplement the efforts
and available resources of States and local governments in alle-
viating the damage, hardship, or suffering caused thereby, and
respecting which the governor of any State [(or the Board of
Commissioners of the District of Columbia) ] in which such catas-
trophe may occur or threaten certifies the need for [disaster
assistance under this Act] Federal disaster assistance, and shall
give assurance of expenditure of a reasonable amount of the funds
[p. 17]
of the government of such State, local governments therein, or
other agencies, for the same or similar purposes with respect to
such catastrophe;
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STATUTES AND LEGISLATIVE HISTORY 949
(b) "United States" includes the District of Columbia, Puerto
Rico, the Virgin Islands, Guam, American Samoa, and the Trust
Territory of the Pacific Islands;
(c) "State" means any State in the United States, Puerto Rico,
the Virgin Islands, Guam, American Samoa, and the Trust Terri-
tory of the Pacific Islands[.], and the District of Columbia;
(d) "Governor" means the chief executive of any State;
(e) "Local government" means any county, city, village, town,
district, or other political subdivision of any State, [or the Dis-
trict of Columbia] and includes any rural community or unincor-
porated town or village for which an application for assistance is
made by a State or local government or governmental agency;
(f) "Federal agency" means any department, independent es-
tablishment, Government corporation, or other agency of the exec-
utive branch of the Federal Government, excepting, however, the
American National Red Cross.
SEC. 3. In any major disaster, Federal agencies are hereby au-
thorized when directed by the President to provide assistance (a)
by utilizing or lending, with or without compensation therefor, to
States and local governments their equipment, supplies, facilities,
personnel, and other resources, other than the extension of credit
under the authority of any Act; (b) by distributing, through the
American National Red Cross, the Salvation Army, or otherwise,
medicine, food, and other consumable supplies; (c) by donating or
lending equipment and supplies determined under then existing
law to be surplus to the needs and responsibilities of the Federal
Government, to States for use or distribution by them for the
purposes of the Act including the restoration of public facilities
damaged or destroyed in such major disaster and essential reha-
bilitation of individuals in need as the result of such major disas-
ter; [ (d) by performing on public or private lands protective and
other work essential for the preservation of life and property,
clearing debris and wreckage, making emergency repairs to and
temporary replacements of public facilities of States and local
governments damaged or destroyed in such major disaster, pro-
viding temporary housing or other emergency shelter for families
who, as a result of such major disaster, require temporary housing
or other emergency shelter, and making contributions to States
and local governments for purposes stated in subsection (d) ] (d)
by performing on public or private lands protective, emergency,
and other work essential for the preservation of life and property;
making repairs to and replacements of public facilities (including
street, road, and highway facilities') of States and local govern-
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950 LEGAL COMPILATION—GENERAL
ments damaged or destroyed in such major disaster, except that
the Federal contributions therefor shall not exceed the net cost of
restoring each such facility on the basis of the design of such
facility as it existed immediately prior to the disaster in conform-
ity with current codes, specifications, and standards; providing
temporary housing or other emergency shelter, including, but not
limited to, mobile homes or other readily fabricated dwellings for
those who, as a result of such major disaster, require temporary
housing or other emergency shelter, except that for the first
twelve months of occupancy no rentals shall be established for any
such accommodations, thereafter rentals shall be established,
[P-18]
based upon fair market value of the accommodations being fur-
nished, adjusted to take into consideration the financial abiJity of
the occupant; and making contributions to States and local gov-
ernments for the purposes stated in this clause. The authority
conferred by this Act, and any funds provided hereunder shall be
supplementary to, and not in substitution for, nor in limitation of,
any other authority conferred or funds provided under any other
law. Any funds received by Federal agencies as reimbursement for
services or supplies furnished under the authority of this section
shall be deposited to the credit of the appropriation or appropria-
tions currently available for such services or supplies. The Federal
Government shall not be liable for any claim based upon the exer-
cise or performance or the failure to exercise or perform a discre-
tionary function or duty on the part of a Federal agency or an
employee of the Government in carrying out the provisions of this
section.
SEC. 7. In carrying out the purposes of this Act, and section 9 of
the Disaster Relief Act of 1966, the Disaster Relief Act of 1969,
and the Disaster Relief Act of 1970, any Federal agency is author-
ized to accept and utilize with the consent of any State or local
government, the services and facilities of such State or local gov-
ernment, or of any agencies, officers, or employees thereof. Any
Federal agency, in performing any activities under section 3 of
this Act, and section 9 of the Disaster Relief Act of 1966, the
Disaster Relief Act of 1969, and the Disaster Relief Act of 1970, is
authorized to employ temporarily additional personnel without re-
gard to the civil-service laws and the Classification Act of 1923, as
amended, and to incur obligations on behalf of the United States
-------
STATUTES AND LEGISLATIVE HISTORY 951
by contract or otherwise for the acquisition, rental, or hire of
equipment, services, materials, and supplies for shipping, drayage,
travel and communication, and for the supervision and adminis-
tration of such activities. Such obligations, including obligations
arising out of the temporary employment of additional personnel,
may be incurred by any agency in such amount as may be made
available to it by the President out of the funds [specified in
section 8.] available to carry out this Act, section 9 of the Disaster
Relief Act of 1966, the Disaster Relief Act of 1969, and the Disas-
ter Relief Act of 1970. The President may, also, out of such funds,
reimburse any Federal agency for any of its expenditures under
section 3 of this Act, section 9 of the Disaster Relief Act of 1966,
the Disaster Relief Act of 1969, and the Disaster Relief Act of
1970, in connection with a major disaster, such reimbursement to
be in such amounts as the President may deem appropriate.
*******
[p. 19]
1.8a(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 91-1752, 91st Cong., 2d Sess. (1970)
DISASTER RELIEF ACT OF 1970
DECEMBER 15, 1970.—Ordered to be printed
Mr. JONES of Alabama, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany S. 3619]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the House to the bill (S. 3619) to
revise and expand Federal programs for the relief from the effects
of major disasters, and for other purposes, having met, after full
and free conference, have agreed to recommend and do recom-
mend to their respective Houses as follows:
That the Senate recede from its disagreement to the amend-
ment of the House and agree to the same with an amendment
as follows:
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952 LEGAL COMPILATION—GENERAL
In lieu of the matter proposed to be inserted by the House
amendment insert the following:
That this Act may be cited as the "Disaster Relief Act of 1970".
Title I—Findings and Declarations; Definitions
Findings and Declarations
Sec. 101. (a) The Congress hereby finds and declares that—
(1) because loss of life, human suffering, loss of income,
and property loss and damage result from major disasters
such as hurricanes, tornadoes, storms, floods, high waters,
wind-driven waters, tidal waves, earthquakes, droughts, fires,
and other catastrophies; and
(2) because such disasters disrupt the normal functioning
of government and the community, and adversely affect indi-
vidual persons and families with great severity;
special measures, designed to assist the efforts of the affected
States in expediting the rendering of aid, assistance, and emer-
gency welfare services, and the reconstruction and rehabilitation
of devastated areas, are necessary.
(b) It is the intent of the Congress, by this Act, to provide an
orderly and continuing means of assistance by the Federal Gov-
ernment to State and local governments in carrying out their
responsibilities to alleviate the suffering and damage which result
from such disasters by—
[p. i]
(1) revising and broadening the scope of existing major
disaster relief programs;
(2) encouraging the development of comprehensive dis-
aster relief plans, programs, and organizations by the States;
and
(3) achieving greater coordination and responsiveness of
Federal major disaster relief programs.
Definitions
Sec. 102. As used in this Act—
(1) "major disaster" means any hurricane, tornado, storm,
flood, high water, wind-driven water, tidal wave, earthquake,
drought, fire, or other catastrophe in any part of the United
States, which, in the determination of the President, is or
threatens to be of sufficient severity and magnitude to warrant
disaster assistance by the Federal Government to supple-
-------
STATUTES AND LEGISLATIVE HISTORY 953
ment the efforts and available resources of States, local gov-
ernments, and relief organizations in alleviating the damage,
loss, hardship, or suffering caused thereby, and with respect
to which the Governor of any State in which such catastrophe
occurs or threatens to occur certifies the need for Federal
disaster assistance under this Act and gives assurance of
the expenditure of a reasonable amount of the funds of such
State, its local governments, or other agencies for alleviating
the damage, loss, hardship or suffering resulting from such
catastrophe;
(2) "United States" means the fifty States, the District of
Columbia, Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Trust Territory of the Pacific Islands;
(3) "State" means any State of the United States, the Dis-
trict of Columbia, Puerto Rico, the Virgin Islands, Guam,
American Samoa, or the Trust Territory of the Pacific
Islands;
(4) "Governor" means the chief executive of any State;
(5) "local government" means any county, city, village,
town, district, or other political subdivision of any State, and
includes any rural community or unincorporated town or
village for which an application for assistance is made by a
State or political subdivision thereof;
(6) "Federal agency" means any department, independent
establishment, Government corporation, or other agency of
the executive branch of the Federal Government, except the
American National Red Cross; and
(7) "Director" means the Director of the Office of Emer-
gency Preparedness.
Title II—The Administration of Disaster Assistance
Federal Coordinating Officer
Sec. 201 (a) Immediately upon his designation of a major dis-
aster area, the President shall appoint a Federal coordinating
officer to operate under the Office of Emergency Preparedness in
such area.
(b) In order to effectuate the purposes of this Act, the coordi-
nating officer, within the designated area, shall
(1) make an initial appraisal of the types of relief most
urgently needed;
[p. 2]
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954 LEGAL COMPILATION—GENERAL
(2) establish such field offices as he deems necessary and
as are authorized by the Director;
(3) coordinate the administration of relief, including activ-
ities of the American National Red Cross, the Salvation
Army, the Mennonite Disaster Service, and other relief or
disaster assistance organizations which agree to operate
under his advice or direction, except that nothing contained
in this Act shall limit or in any way affect the responsibilities
of the American National Red Cross under the Act of Janu-
ary 5, 1905, as amended (33 Stat. 599); and
(4) take such other action, consistent with authority dele-
gated to him by the Director, and consistent with the provi-
sions of this Act, as he may deem necessary to assist local
citizens and public officials in promptly obtaining assistance
to which they are entitled.
Emergency Support Teams
Sec. 202. The Dirtctor is authorized to form emergency support
teams of Federal personnel to be deployed in a major disaster
area. Such emergency support teams shall assist the Federal
coordinating officer in carrying out his responsibilities pursuant
to section 201 (b) of this Act. Upon request of the Director, the
head of any Federal department or agency is authorized to detail
to temporary duty with the emergency support teams on either a
reimbursable or nonreimbursable basis, as is determined necessary
by the discretion of the Director, such personnel within the admin-
istrative jurisdiction of the head of the Federal department or
agency as the Director may need or believe to be useful for carry-
ing out the functions of the emergency support teams, each such
detail to be without loss of seniority, pay, or other employee status.
Cooperation of Federal Agencies in Rendering
Emergency Assistance
Sec. 203. (a) In any major disaster, Federal agencies are hereby
authorized, on direction of the President, to provide assistance
by—
(1) utilizing or lending, with or without compensation
therefor, to States and local governments, their equipment,
supplies, facilities, personnel, and other resources, other than
the extension of credit under the authority of any Act;
(2) distributing or rendering, through the American Na-
tional Red Cross, the Salvation Army, the Mennonite Disaster
-------
STATUTES AND LEGISLATIVE HISTORY 955
Service, and other relief and disaster assistance organizations,
or otherwise, medicine, food, and other consumable supplies,
or emergency assistance;
(3) donating or lending equipment and supplies deter-
mined in accordance with applicable laws to be surplus to the
needs and responsibilities of the Federal Government to State
and local governments for use or distribution by them for
the purposes of this Act; and
(4) performing on public or private lands or waters any
emergency work essential for the protection and preserva-
tion of life and property, including—
(A) clearing and removing debris and wreckage in
accordance with section 224;
(B) making repairs to, restoring to service, or replac-
ing public facilities (including street, road, and highway
facilities) of State and local governments damaged or
destroyed by a major disaster, except that the Federal
contributions therefor shall not exceed the net cost of
[p. 3]
restoring each such facility on the basis of the design
of such facility as it existed immediately prior to the
disaster in conformity with current codes, specifications,
and standards;
(C) providing emergency shelter for individuals and
families who, as a result of a major disaster, require such
assistance; and
(D) making contributions to State or local govern-
ments for the purpose of carrying out the provisions of
paragraph (4).
(b) Emergency work performed under subsection (a) (4) of this
section shall not preclude Federal assistance under any other sec-
tion of this Act.
(c) Federal agencies may be reimbursed for expenditures under
this Act from funds appropriated for the purposes of this Act.
Any funds received by Federal agencies as reimbursement for
services or supplies furnished under the authority of this section
shall be deposited to the credit of the appropriation or appropria-
tions currently available for such services or supplies.
(d) The Federal Government shall not be liable for any claim
based upon the exercise or performance or the failure to exercise
or perform a discretionary function or duty on the part of a Fed-
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956 LEGAL COMPILATION—GENERAL
eral agency or an employee of the Federal Government in carrying
out the provisions of this section.
(e) In carrying out the purposes of this Act, any Federal agency
is authorized to accept and utilize the services or facilities of any
State or local government, or of any agency, office, or employee
thereof, with the consent of such government. Any Federal agency,
in performing any activities under this section, is authorized to
appoint and fix the compensation of such temporary personnel as
may be necessary, without regard to the provisions of title 5,
United States Code, governing appointments in the competitive
service, and without regard to the provisions of chapter 51 and
subchapter HI of such title relating to classification and General
Schedule pay rates, to employ experts and consultants in accord-
ance with the provisions of section 3109 of such title, and to incur
obligations on behalf of the United States by contract or other-
wise for the acquisition, rental, or hire of equipment, services,
materials, and supplies for shipping, drayage, travel, and commu-
nications, and for the supervision and administration of such
activities. Such obligations, including obligations arising out of
the temporary employment of additional personnel, may be in-
curred by an agency in such amount as may be made available
to it by the President.
(f) In the interest of providing maximum mobilization of Fed-
eral assistance under this Act, the President is authorized to
coordinate in such manner as he may determine the activities of
Federal agencies in providing disaster assistance. The President
may direct any Federal agency, with or without reimbursement,
to utilize its available personnel, equipment supplies, facilities, and
other resources in accordance with the authority, herein contained.
The President may prescribe such rules and regulations as may be
necessary and proper to carry out any of the provisions of this
Act, and he may exercise any power or authority conferred on
him by any section of this Act either directly or through such
Federal agency as he may designate.
(g) The President, acting through the Office of Emergency
Preparedness, shall conduct periodic reviews (at least annually)
of the activities of Federal and State departments or agencies pro-
[p-4]
viding disaster assistance, in order to assure maximum coordina-
tion of such programs, and to evaluate progress being made in the
development of Federal, State, and local preparedness to cope
with major disasters.
-------
STATUTES AND LEGISLATIVE HISTORY 957
(h) The Director of the Office of Emergency Preparedness is
authorized and directed to make in cooperation with the heads of
other affected Federal and State agencies, a full and complete
investigation and study for the purpose of determining what addi-
tional or improved plans, procedures, and facilities are necessary
to provide immediate effective action to prevent or minimize losses
of publicly or privately owned property and personal injuries or
deaths which could result from fires (forest and grass), earth-
quakes, tornadoes, freezes and frosts, tsunami, storm surges and
tides, and floods, which are or threaten to become major disasters.
Not later than one year after the date of enactment of this sub-
section, and from time to time, the Director of the Office of
Emergency Preparedness shall report to Congress the findings of
this study and investigation together with his recommendations
with respect thereto.
Use of Local Firms and Individuals
Sec. 204. In the expenditure of Federal funds for debris clear-
ance, distribution of supplies, reconstruction, and other major dis-
aster assistance activities which may be carried out by contract
with private organizations, firms, or individuals, preference shall
be given, to the extent feasible and practicable, to those organiza-
tions, firms, and individuals who reside or do business primarily
in the disaster area.
Federal Grant-in-Aid Programs
Sec. 205. Any Federal agency charged with the administration
of a Federal grant-in-aid program is authorized, if so requested
by the applicant State or local authorities, to modify or waive, for
the duration of a major disaster proclamation, such administra-
tive procedural conditions for assistance as would otherwise pre-
vent the giving of assistance under such programs if the inability
to meet such conditions is a result of the disaster.
State Disaster Plans
Sec. 206. (a) The President is authorized to provide assistance
to the States in developing comprehensive plans and practicable
programs for preparation against major disasters, and for relief
and assistance for individuals, businesses, and local governments
following such disasters. Such plans should include long-range
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958 LEGAL COMPILATION—GENERAL
recovery and reconstruction assistance plans for seriously dam-
aged or destroyed public and private facilities.
(b) The President is authorized to make grants of not more
than $250,000 to any State, upon application therefor, for not to
exceed 50 per centum of the cost of developing such plans and
programs.
(c) Any State desiring assistance under this section shall desig-
nate or create an agency which is specially qualified to plan and
administer such a disaster relief program, and shall, through such
agency, submit a State plan to the President, which shall—
(1) set forth a comprehensive and detailed State program
for preparation against, and relief following, a major disaster,
including provisions for emergency and long-term assistance
to individuals, businesses, and local governments; and
(2) include provision for the appointment of a State coor-
dinating officer to act in cooperation with the Federal coor-
dinating officer appointed under section 201 of this Act.
[P. 5]
(d) From time to time the Director shall make a report to the
President, for submission to the Congress, containing his recom-
mendations for programs for the Federal role in the implementa-
tion and funding of comprehensive disaster relief plans, and such
other recommendations relating to the Federal role in disaster
relief activities as he deems warranted.
(e) The President is authorized to make grants not to exceed
50 per centum of the cost of improving, maintaining, and updating
State disaster assistance plans, except that no such grant shall
exceed $25,000 per annum to any State.
Use and Coordination of Relief Organizations
Sec. 207. (a) In providing relief and assistance following a
major disaster, the Director may utilize, with their consent, the
personnel and facilities of the American National Red Cross, the
Salvation Army, the Mennonite Disaster Service, and other relief
or disaster assistance organizations, in the distribution of medi-
cine, food, supplies, or other items, and in the restoration, reha-
bilitation, or reconstruction of community services and essential
facilities, whenever the Director finds that such utilization is
necessary.
(b) The Director is authorized to enter into agreements with
the American National Red Cross, the Salvation Army, the Men-
-------
STATUTES AND LEGISLATIVE HISTORY 959
nonite Disaster Service, and other relief or disaster assistance
organizations under which the disaster relief activities of
such organizations may be coordinated by the Federal coordi-
nating officer whenever such organizations are engaged in pro-
viding relief during and after a major disaster. Any such agree-
ment shall include provisions conditioning use of the facilities of
the Office of Emergency Preparedness and the services of the
coordinating officer upon compliance with regulations promul-
gated by the Director under sections 208 and 209 of this Act, and
such other regulations as the Director may require.
Duplication of Benefits
Sec. 208. (a) The Director, in consultation with the head of each
Federal agency administering any program providing financial
assistance to persons, business concerns, or other entities suffer-
ing losses as the result of a major disaster, shall assure that no
such person, business concern, or other entity will receive such
assistance with respect to any part of such loss as to which he has
received financial assistance under any other program.
(b) The Director shall assure that no person, business concern,
or other entity receives any Federal assistance for any part of a
loss suffered as the result of a major disaster if such person, con-
cern, or entity received compensation from insurance or any other
source for that part of such a loss. Partial compensation for a loss
or a part of a loss resulting from a major disaster shall not pre-
clude additional Federal assistance for any part of such a loss not
compensated otherwise.
(c) Whenever the Director determines (1) that a person, busi-
ness concern, or other entity has received assistance under this
Act for a loss and that such person, business concern or other
entity received assistance for the same loss from another source,
and (2) that the amount received from, all sources exceeded the
amount of the loss, he shall direct such person, business concern,
or other entity to pay to the Treasury an amount, not to exceed
the amount of Federal assistance received, sufficient to reimburse
the Federal Government for that part of the assistance which he
deems excessive.
[P. 6]
Nondiscrimination in Disaster Assistance
Sec. 209. (a) The Director shall issue, and may alter and
amend, such regulations as may be necessary for the guidance of
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960 LEGAL COMPILATION—GENERAL
personnel carrying out emergency relief functions at the site of a
major disaster. Such regulations shall include provisions for insur-
ing that the distribution of supplies, the processing of applica-
tions, and other relief and assistance activities shall be accom-
plished in an equitable and impartial manner, without discrimina-
tion on the grounds of race, color, religion, nationality, sex, age,
or economic status prior to a major disaster.
(b) As a condition of participation in the distribution of assist-
ance or supplies under section 207, relief organizations shall be
required to comply with regulations relating to nondiscrimination
promulgated by the Director, and such other regulations applica-
ble to activities within a major disaster area as he deems necessary
for the effective coordination of relief efforts.
Disaster Warnings
Sec. 210. The President is authorized to utilize or to make avail-
able to Federal, State, and local agencies the facilities of the civil
defense communications system established and maintained pur-
suant to section 201 (c) of the Federal Civil Defense Act of 1950,
as amended (50 U.S.C. app. 2281(c)), for the 'purpose of provid-
ing needed warning to governmental authorities and the civilian
population in areas endangered by imminent major disasters.
Predisaster Assistance
Sec. 221. If the President determines that a major disaster is
imminent, he is authorized to use Federal departments, agencies,
and instrumentalities, and all other resources of the Federal Gov-
ernment to avert or lessen the effects of such disaster before its
actual occurrence.
Emergency Communications
Sec. 222. The Director is authorized during, or in anticipation
of, an emergency to establish temporary communications in any
major disaster area in order to carry out the functions of his
office, and to make such communications available to State and
local government officials and other persons as he deems appro-
priate.
Emergency Public Transportation
Sec. 223. The Director is authorized to provide temporary pub-
lic transportation service to meet emergency needs in a major dis-
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STATUTES AND LEGISLATIVE HISTORY 961
aster area. Such service will provide transportation to govern-
mental offices, supply centers, stores, post offices, schools, major
employment centers, and such other places as may be necessary
in order to enable the community to resume its normal pattern of
life as soon as possible.
Debris Removal
Sec. 224. (a) The President, whenever he determines it to be in
the public interest, is authorized—
(1) through the use of Federal departments, agencies, and
instrumentalities, to clear debris and wreckage resulting from
a major disaster from publicly and privately owned lands and
waters.
(2) to make grants to any State or local government for
the purpose of removing debris or wreckage resulting from a
major disaster from publicly or privately owned lands and
waters.
[p. 7]
(b) No authority under this section shall be exercised unless
the affected State or local government shall first arrange an uncon-
ditional authorization for removal of such debris or wreckage from
public and private property, and, in the case of removal of debris
or wreckage from private property, shall first agree to indemnify
the Federal Government against any claim arising from such
removal.
[p. 8]
Federal Facilities
Sec. 251. The President may authorize any Federal agency to
repair, reconstruct, restore, or replace any facility owned by the
United States and under the jurisdiction of such agency which is
damaged or destroyed by any major disaster if he determines that
such repair, reconstruction, restoration, or replacement is of such
importance and urgency that it cannot reasonably be deferred
pending the enactment of specific authorizing legislation or the
making of an appropriation for such purposes. In order to carry
\ out the provisions of this section, such repair, reconstruction,
) restoration, or replacement may be begun notwithstanding a lack
or an insufficiency of funds appropriated for such purpose, where
such lack or insufficiency can be remedied, by the transfer, in
accordance with law, of funds appropriated to that agency for
another purpose.
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962 LEGAL COMPILATION—GENERAL
State and Local Government Facilities
Sec. 252. (a) The President is authorized to make contribu-
tions to State or local governments to repair, restore, reconstruct,
or replace public facilities belonging to such State or local govern-
ments which were damaged or destroyed by a major disaster,
except that the Federal contribution therefor shall not exceed 100
per centum of the net cost of repairing, restoring, reconstructing,
[p. 13]
or replacing any such facility on the basis of the design of such
facility as it existed immediately prior to such disaster and in
conformity with applicable codes, specifications, and standards.
(b) In the case of any such public facilities which were in the
process of construction when damaged or destroyed by a major
disaster, the Federal contribution shall not exceed 50 per centum
of the net costs of restoring such facilities substantially to their
prior to such disaster condition and of completing construction not
performed prior to the major disaster to the extent the increase
of such cost over the original construction cost is attributable to
changed conditions resulting from a major disaster.
(c) For the purposes of this section "public facility" includes
any flood control, navigation, irrigation, reclamation, public power,
sewage treatment and collection, water supply and distribution,
watershed development, or airport facility, any non-Federal-aid
street, road, or highway, and any other public building, structure,
or system, other than one used exclusively for recreation purposes.
Priority to Certain Applications for Public Facility
and Public Housing Assistance
Sec. 253. In the processing of applications for assistance, prior-
ity and immediate consideration may be given, during such period,
not to exceed six months, as the President shall prescribe by proc-
lamation, to applications from public bodies situated in major dis-
aster areas, under the following Acts:
(1) title II of the Housing Amendments of 1955, or any
other Act providing assistance for repair, construction, or (
extension of public facilities; (
(2) the United States Housing Act of 1937 for the provi-
sion of low-rent housing;
(3) section 702 of the Housing Act of 1954 for assistance
in public works planning;
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STATUTES AND LEGISLATIVE HISTORY 963
(4) section 702 of the Housing and Urban Development
Act of 1965 providing for grants for public facilities; or
(5) section 306 of the Consolidated Farmers Home Admin-
istration Act.
Relocation Assistance
Sec. 254. Notwithstanding any other provision of law, no person
otherwise eligible for any kind of relocation assistance payment
authorized under section 114 of the Housing Act of 1949 shall be
denied such eligibility as a result of his being unable, because of a
major disaster as determined by the President, to reoccupy prop-
erty from which he was displaced by such disaster.
[p. 14]
STATEMENT OF THE MANAGERS ON THE PART
OF THE HOUSE
The managers on the part of the House at the conference on
the disagreeing votes of the two Houses on the amendment of the
House to the bill (S. 3619) to revise and expand Federal programs
for relief from the effects of major disasters, and for other pur-
poses, submit the following statement in explanation of the effect
of the action agreed upon by the conferees and recommended in
the accompanying conference report:
The House amendment struck out all of the Senate bill after
the enacting clause and inserted a substitute. The Senate recedes
from its disagreement to the amendment of the House, with an
amendment which is a substitute for both the Senate bill and the
House amendment. The differences between the House amendment
and the substitute agreed to in conference are noted below except
for minor technical and clarifying changes made necessary by
reason of the conference agreement.
The bill as passed by the Senate establishes an entirely new
basic Federal disaster relief law and repeals all of the major
substantive provisions dealing with this subject which are pres-
ently on the statute books. The House amendment, by a series of
cut-and-bite amendments, retained all of the existing provisions
of law but expanded them and tied them together through uni-
formity of definition and otherwise. The proposed conference sub-
stitute adopts the approach of the Senate bill and provides for
a new basic law and the repeal of existing statutes on the subject.
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964 LEGAL COMPILATION—GENERAL
TITLE I
SHORT TITLE
Senate bill
This section provided that the Act may be cited as the "Disaster
Assistance Act of 1970".
House amendment
This section provided that the Act may be cited as the "Disaster
Relief Act of 1970".
Conference substitute
The same as the House provision.
FINDINGS AND DECLARATIONS
Senate bill
The Congress would find and declare that because major dis-
asters cause loss of life, human suffering, loss of income, property
loss and damage and because such disasters disrupt the normal
functioning of government and the community special measures
are required to expedite assistance and emergency welfare serv-
ices and reconstruct and rehabilitate devastated areas.
[p. 17]
The Congress would under this Act provide orderly and con-
tinuing means of alleviating suffering and damage by (1) revising
and broadening existing major disaster relief programs (2) en-
couraging development of comprehensive State disaster plans and
(3) achieving greater coordination and responsiveness of Fed-
eral major disaster relief programs.
House amendment
No comparable provision.
Conference substitute
The conference substitute is essentially the same as the Senate
provisions with minor clarifying amendments to more clearly
express the intention of Congress.
DEFINITIONS
Senate bill
Definitions in this section are the same as P.L. 875, 81st Con-
gress, except for the addition of the words "tornado, highwater,
-------
STATUTES AND LEGISLATIVE HISTORY 965
wind-driven water, and tidal wave" to the definition of "major
disaster."
House amendment
Amends the definition of the term "major disaster" in Public
Law 81-875 to require that Governors certify a need for "Federal
disaster assistance" rather than just assistance under Public Law
81-875. The amendment also deletes a reference to the Board of
Commissioners of the District of Columbia since that Board no
longer exists.
Amends the definition of the term State to include the District
of Columbia.
Deletes the reference to the District of Columbia in the defi-
nition of local government.
Conference substitute
Except for minor clarifying amendments, this is the same as
the provisions of the Senate bill.
[P. 18]
STATE DISASTER PLANS
Senate bill
This section provides for the formulation by the States of com-
prehensive plans and programs for preparation against major
disasters and their losses. Grants up to $250,000 would be made by
the President to any applicant State on a matching basis for no
[p. 21]
more than half the cost of developing such plans and programs
and up to $25,000 per annum would be made available to update
and improve the developed plans.
To be eligible for a planning grant, a State would have to
establish or designate an agency which would be responsible for
developing and administering its disaster relief plan and program.
The resultant plan should include a comprehensive and detailed
State program for preparation against and relief following a
major disaster and include provisions for the appointment of a
State coordinating office to assist the Federal coordinating officer
appointed under section 201 of this Act.
From time to time, the Director would prepare a report to the
President, for submission to the Congress, containing his recom-
mendations for the Federal role in implementing, funding, and
coordinating disaster relief activities.
-------
966 LEGAL COMPILATION—GENERAL
House amendment
Amends section 8(c) of Public Law 91-79 to eliminate the
cutoff date for State plans and provides that plans developed
under this section shall be applicable to local governments as well
as individuals.
Further amends section 8 of Public Law 91-79 by authorizing
matching grants to States up to $25,000 per annum for purposes
of improving, maintaining, and updating State disaster assistance
plans.
Conference substitute
This is the same as the Senate provision except for a clarifying
amendment.
USE AND COORDINATION OF RELIEF ORGANIZATIONS
Senate bitt
The Director would be authorized to make agreements with
relief or disaster assistance organizations, including but not lim-
ited to the American National Red Cross, the Salvation Army, the
Mennonite Board of Missions and Charities, to help the distribu-
tion of food, clothing, medicine and other supplies, and the resto-
ration, rehabilitation or reconstruction of community services and
facilities. The Director would be authorized to make agreements
with organizations which would allow the Federal coordinating
officer to coordinate all relief activities of private agencies in a
given disaster area. Such agreements would have to include provi-
sions for compliance with regulations promulgated under sections
208 (duplication of benefits) and 209 (nondiscrimination).
House amendment
No comparable provision.
Conference substitute
This is essentially the same as the provisions of the Senate bill
except for amendments to specifically include in both subsections
the Salvation Army and the Mennonite Disaster Service.
DUPLICATION OF BENEFITS
Senate bill
The Director would be required to ascertain that no person or
business would be receiving aid from more than one source for the
same disaster damage. No person or business could receive assist-
[P-22]
-------
STATUTES AND LEGISLATIVE HISTORY 967
ance from the government for any loss compensated by insurance,
but partial compensation for a loss would not preclude additional
Federal assistance for such part of the loss not compensated for
otherwise. The Director would be required to determine whether
any person had received duplicate benefits. Whenever the Director
determined that a person or business had received assistance from
more than one source which exceeded the amount of the loss, he
would direct that person or business to reimburse the Federal
Government for the part he deemed excessive but not in excess of
the amount of Federal assistance received.
House amendment
No comparable provision.
Conference substitute
Same as the Senate provisions.
NONDISCRIMINATION IN DISASTER ASSISTANCE
Senate bill
The Director would be required to issue regulations forbidding
discrimination by race, color, age, sex, nationality, religion or
economic status in providing disaster relief supplies and services.
Any relief organization participating in the distribution of assist-
ance or supplies under section 207 must comply with these regula-
tions relating to non-discrimination.
House amendment
No comparable provision.
Conference substitute
Same as the Senate provision.
ADVISORY PERSONNEL
Senate bill
The Director would be authorized to assign advisory personnel
to the chief executive officer of a State or local government upon
the request by such executive officer, in order to insure full utiliza-
tion of relief and assistance resources and programs.
House amendment
No comparable provision.
Conference substitute
Does not contain this provision.
-------
968 LEGAL COMPILATION—GENERAL
DISASTER WARNINGS
Senate bill
The President would be authorized to provide needed warning
to governmental authorities and civilian population in areas en-
dangered by imminent natural disasters.
House amendment
No comparable provision.
Conference substitute
Same as the Senate provision.
[p. 23]
PREDISASTER ASSISTANCE
Senate bill
The President would be authorized to utilize Federal resources
to assist States or local governments in preparations for an immi-
nent major disaster to avert or lessen its effects.
House amendment
Permits the President to take effective action to avert or lessen
the effects of a catastrophe which threatens to become a major
disaster. It is not necessary for the President to declare a major
disaster before assistance can be provided under this section.
Conference substitute
Same as the provisions of the House amendment.
EMERGENCY COMMUNICATIONS
Senate bill
The Director would be authorized to establish emergency com-
munications in any major disaster area which would be made
available to State and local government officials and other persons
as he saw fit.
House amendment
No comparable provision.
Conference substitute
Essentially the same as the Senate provision, restricted, how-
ever, to the establishment of temporary communications during or
in anticipation of an emergency.
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STATUTES AND LEGISLATIVE HISTORY 969
EMERGENCY PUBLIC TRANSPORTATION
Senate bill
Emergency public transportation to governmental offices, supply
centers, stores, post offices, schools, and major employment centers
would be authorized in a major disaster area where regular public
transportation had been disrupted in order that the community's
normal pattern of life could be resumed as soon as possible.
House amendment
No comparable provision.
Conference substitute
Same as the Senate provision, restricted, however, to authority
to provide temporary public transportation service.
DEBRIS REMOVAL
Senate bill
The President would be authorized to make grants to State and
local governments for removal of debris from private lands or
waters whenever he determined it to be in the public interest:
except that these benefits would not be available unless State or
local governments arranged unconditional authorization for the
removal of debris and agreed to indemnify the Federal govern-
ment for any claims resulting from this debris removal. Payments
could also be made to remove debris from community areas which
included an individual's private property.
[P. 24]
House amendment
Authorizes the use of Federal agencies to clear debris from
publicly and privately owned lands and waters, when determined
to be in the public interest. Authorization is also provided for
grants to any State for similar debris clearance. A requirement is
imposed that State and local governments must arrange to provide
unconditional authorizations for the removal of such debris and
that the Federal Government be indemnified against claims aris-
ing from such removal.
Conference substitute
Same as the provisions of the House amendment.
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970 LEGAL COMPILATION—GENERAL
FIRE SUPPRESSION GRANTS
Senate bill
The President would be authorized to make grants to any State
in order to assist in the suppression of fires on publicly or pri-
vately owned forest and grass lands which threatened such de-
struction as would constitute a major disaster.
House amendment
No comparable provision.
Conference substitute
Same as the Senate provisions.
TEMPORARY HOUSING ASSISTANCE
Senate bill
The Director would be authorized to provide necessary shelter
for owners or tenants whose places of residence had been made
uninhabitable by a major disaster. Dwelling accommodations nec-
essary for this purpose, including mobile homes, could be pur-
chased or leased, and in turn could be rented or sold outright to
the disaster victims to provide them with suitable housing. The
housing would be placed by the State or local government or by
the owner or occupant on sites complete with utilities without
charge to the United States. The Director could decide in the
public interest to provide more economical and accessible sites at
Federal expense.
After an initial 90 days of occupancy rentals could be estab-
lished. These rentals could be compromised, adjusted or waived
for a period of not to exceed one year from date of occupancy
according to the financial ability of the occupants, but in no case
could the family's monthly housing expense be required to be more
than one-fourth the family's monthly income.
The Director would be further authorized to provide grants as
temporary assistance in the form of mortgage or rental payments
to individuals who had suffered severe financial hardship caused
by a major disaster and who had received written notice of dispos-
session or eviction from their residence because of foreclosure of a
mortgage or lien, cancellation of a contract of sale, or termination
of an oral or written lease. This assistance could be furnished for
not in excess of one year or until the individual's financial hard-
ship ended, whichever was the lesser. In addition the Director
-------
STATUTES AND LEGISLATIVE HISTORY 971
would provide reemployment assistance services to individuals
who were unemployed as a result of a major disaster.
[P. 25]
House amendment
Revises section 3(d) of Public Law 81-875 to provide that no
rental shall be charged for the first 12 months for temporary
housing and after that rentals to be charged based on fair market
value adjusted to take into consideration the financial ability of
the occupant to pay.
Provides that, notwithstanding any other provision of law, such
temporary housing including, but not limited to mobile homes or
other readily fabricated buildings which were purchased under
proper disaster authorities for disaster victims requiring accom-
modations may be sold directly to disaster victims who are occu-
pants at fair and equitable prices.
This section would authorize the President to provide financial
assistance in the form of mortgage or rental payments to individu-
als or families who had suffered financial hardship caused by a
major disaster, and who had received written notice of disposses-
sion or eviction from their residence. The assistance could be fur-
nished for not in excess of one year, or for the duration of the
financial hardship, whichever is the lesser.
Conference substitute
This provision would authorize the Director to provide tempo-
rary housing or other emergency shelter, including mobile homes,
for those who as a result of a major disaster require temporary
housing or other emergency shelter. For the first 12 months of
occupancy, no rental shall be established. Thereafter, rentals will
be based on fair market value of the accommodations being fur-
nished, adjusted to take into consideration financial ability of the
occupant. Emergency housing which is acquired by purchase may
be sold directly to the occupants at prices that are fair and equita-
ble. Any mobile home or readily fabricated dwelling is to be placed
on a site complete with utilities provided by State or local govern-
ment or by the owner or occupant of the site without charge to the
United States. The Director may elect to provide other more eco-
nomical and accessible sites at Federal expense if he determines it
to be in the public interest. Further, the President is authorized to
provide assistance on a temporary basis in the form of mortgage
or rental payments in the same manner as is provided in the
House amendment. The President is authorized for the purposes
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972 LEGAL COMPILATION—GENERAL
of this provision and in furtherance of the purposes of section 240
of this Act to provide reemployment assistance services under
other laws to individuals who are unemployed as a result of a
major disaster.
[p. 26]
FEDERAL FACILITIES
Senate bill
Upon the President's determination that repair, reconstruction,
restoration or replacement of facilities owned by the United States
was so important and urgent that it could not reasonably be de-
ferred pending enactment of specific authorizing legislation or the
making of an appropriation, he could authorize any Federal
agency to repair, reconstruct, restore or replace any facilities
damaged or destroyed in a major disaster that were under its
jurisdiction. This work could begin notwithstanding a lack or in-
sufficiency of funds where such lack or insufficiency could be reme-
died by the transfer, in accordance with law, of funds appropri-
ated for another purpose.
House amendment
No comparable provision.
Conference substitute
Same as the provisions of the Senate bill.
STATE AND LOCAL GOVERNMENT FACILITIES
Senate bill
The President would be authorized to make contributions to
States or local communities for repairing, restoring, reconstruct-
ing or replacing damaged portions of public facilities belonging to
State or local governments, including flood control, navigation,
irrigation, reclamation, public power, sewage treatment and
collection, water supply and distribution, watershed development,
airport, non-Federal-aid street, road or highway, and any other
essential facility damaged by a major disaster. Such Federal con-
tribution could not exceed 50% of the net cost of restoring such
facility to its predisaster capacity and in conformity with applica-
ble codes and specifications.
The President could also make contributions to States or local
governments in amounts not in excess of 50% of the net cost of
restoring such public facilities, which were in the process of con-
struction when damaged or destroyed, to substantially their condi-
-------
STATUTES AND LEGISLATIVE HISTORY 973
tion prior to the disaster and of completing construction not per-
formed before the disaster to the extent that the increase in cost
over the original construction cost was attributable to changed
conditions caused by the disaster.
House amendment
Revises section 3(d) of PL 81-875 to provide that Federal
contributions for permanent repair or replacement of public facili-
ties of State and local governments shall not exceed the net cost of
restoring such facilities, using the basis of design of the facilities
[P. 34]
as they existed immediately prior to the disaster, but in conform-
ity with current codes and specifications.
Conference substitute
Same as the provision of the Senate bill, except that the Federal
share is increased from 50 to 100 percent of the net cost of restor-
ing the facility on the basis of the design of the facility as it
existed immediately prior to the disaster and in conformity with
applicable codes and specifications, and the definition of the term
"public facility" contained in the Senate provision is revised to
eliminate the concept of "essential public facility" and to replace it
with the more specific language of "public building, structure, or
system, other than one used exclusively for recreation purposes".
****** *
[p. 35]
TECHNICAL AMENDMENTS
Senate bill
Makes various technical amendments in existing laws required
by the adoption of the Disaster Relief Act of 1970.
House amendment
No comparable provision.
Conference substitute
Same as the Senate bill except for technical amendments.
REPEAL OF EXISTING LAW
Senate bill
Repeals three existing disaster laws: the basic 1950 Act (64
Stat. 1109), the Disaster Relief Act of 1966 (80 Stat. 1316) except
-------
974 LEGAL COMPILATION—GENERAL
for Section 7 (Higher Education Facilities Assistance in Disaster
Areas) and the Disaster Relief Act of 1969.
House amendment
No comparable provision.
Conference substitute
Same as the Senate bill.
[p. 36]
EFFECTIVE DATE
Senate bill
The Act would take effect immediately upon enactment, except
that sections 226(c), 237, 241, 252(a), and 254 would take effect
as of August 1, 1969.
House amendment
Provides that the benefits of this act, and the amendments made
by this act, shall apply to those Presidentially declared major
disasters, and those disasters and natural disasters as determined
by the Secretary of Agriculture and the Administrator of the
Small Business Administration which occurred on or after Decem-
ber 1, 1968. In the case of any such disaster which occurs on or
after December 1, 1968, and before the date of enactment of this
act, the eligible applicant for assistance shall elect to receive such
assistance either under this act (including the amendments made
by this act) or under the law applicable to such disasters which
occurred prior to December 1, 1968.
Conference substitute
Same as the provisions of Senate bill.
ROBERT E. JONES,
JIM WRIGHT,
HAROLD T. JOHNSON,
DON H. CLAUSEN,
FEED SCHWENGEL,
Managers on the Part of the House-
[P. 37]
-------
STATUTES AND LEGISLATIVE HISTORY
975
1.8a(4) CONGRESSIONAL RECORD, VOL. 116 (1970)
1.8a(4)(a) Sept. 9: Debated, amended, and passed Senate,
pp. 31040-31042, 31044; 31048-31051; 31058-31060; 31062-31063
OFFICE OF DISASTER
ASSISTANCE
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the Sen-
ate proceed to the consideration of
Calendar No. 1175, S. 3619.
The PRESIDING OFFICER. The
bill will be stated by title.
The assistant legislative clerk read
as follows: S. 3619, to create, within
the Office of the President, an Office
of Disaster Assistance, to revise and
expand Federal programs for relief
from the effects of major disasters,
and for other purposes.
The PRESIDING OFFICER. Is
there objection to the present con-
sideration of the bill?
There being no objection, the Senate
proceeded to consider the bill which
had been reported from the Com-
mittee on Public Works with an
amendment, to strike out all after
the enacting clause and insert:
That this Act may be cited as the "Disaster
Assistance Act of 1970".
TITLE I—FINDINGS AND DECLARATIONS;
DEFINITIONS
FINDINGS AND DECLARATIONS
SEC. 101. (a) The Congress hereby finds
and declares that—
(1) because loss of life, human suffering,
loss of income, and property loss and damage
result from major disasters such as hurri-
canes, tornadoes, storms, floods, high waters,
wind-driven waters, tidal waves, earthquakes,
droughts, fires, and other catastrophes; and
(2) because such disasters disrupt the
normal functioning of government and the
community and adversely affect individual
persons and families with great severity;
special measures, designed to expedite the
rendering of aid, assistance, and emergency
welfare services, and the reconstruction and
rehabilitation of devastated areas, are
necessary.
(b) It is the intent of the Congress, by this
Act, to provide an orderly and continuing
means of alleviating the suffering and dam-
age which result from such disasters by—
(1) revising and broadening the scope of
existing major disaster relief programs;
(2) encouraging the development of com-
prehensive disaster relief plans, programs,
and organizations by the States; and
(3) achieving greater coordination and re-
sponsiveness of Federal major disaster relief
programs.
DEFINITIONS
SEC. 102. As used in this Act—
(1) "major disaster" means any hurricane,
tornado, storm, flood, high water, wind-
driven water, tidal wave, earthquake,
drought, fire, or other catastrophe in any
part of the United States, which in the de-
termination of the President, is or threatens
to be of sufficient severity and magnitude to
warrant disaster assistance by the Federal
Government to supplement the efforts and
available resources of States, local govern-
[p.31040]
ments, and relief organizations in alleviating
the damage, loss, hardship, or suffering caused
thereby, and with respect to which the Gov-
ernor of any State in which such catastrophe
occurs or threatens to occur certifies the need
for disaster assistance under this Act and gives
assurance of the expenditure of a reasonable
amount of the funds of such State, its local
governments, or other agencies for alleviating
the damage, loss, hardship or suffering result-
ing from such catastrophe;
(2) "United States" means the fifty States,
the District of Columbia, Puerto Rico, the Vir-
gin Islands, Guam, American Samoa, and the
Trust Territory of the Pacific Islands;
(3) "State" means any State of the United
States, the District of Columbia, Puerto Rico,
the Virgin Islands, Guam, American Samoa,
or the Trust Territory of the Pacific Islands;
(4) "Governor" means the chief executive
of any State;
(5} ' "local government'' means any county,
sity, village, town, district, or other political
subdivision of any State, and includes any
rural community or unincorporated town or
village for which an application for assist-
ance is made by a State or political subdivision
thereof;
(6) "Federal agency" means any depart-
ment, independent establishment, Federal cor-
-------
976
LEGAL COMPILATION—GENERAL
poration, or other agency of the executive
branch of the Federal Government, except the
American National Red Cross; and
(7) "Director" means the Director of the
Office of Emergency Preparedness.
TITLE II—THE ADMINISTRATION OF
DISASTER ASSISTANCE
PART A—GENERAL PROVISIONS
FEDERAL COORDINATING OFFICER
SEC. 201. (a) The President shall appoint,
immediately upon his designation of a major
disaster area, a Federal coordinating officer to
operate under the Office of Emergency Pre-
paredness in such area.
(b) In order to effectuate the purposes of
this Act, the coordinating officer, within the
designated area, shall
(1) make an initial appraisal of the types
of relief most urgently needed;
(2) establish such field offices as he deems
necessary and as are authorized by the Di-
rector;
(3) coordinate the administration of relief,
including activities of the American National
Red Cross and of other relief organizations
which agree to operate under his advice or
direction; and
(4) take such other action, consistent with
authority delegated to him by the Director,
and consistent with the provisions of this Act,
as he may deem necessary to assist local
citizens and public officials in promptly ob-
taining assistance to which they are entitled.
EMERGENCY SUPPORT TEAMS
SEC. 202. The Director is authorized to form
emergency support teams of personnel to be
deployed in a major disaster area. Such
emergency support teams shall assist the Fed-
eral coordinating officer in carrying out his
responsibilities pursuant to section 201 (b) of
this Act.
COOPERATION OF FEDERAL AGENCIES
SEC. 203 (a) In any major disaster, Federal
agencies are hereby authorized, on direction of
the President, to provide assistance by—
(1) utilizing or lending, with or without
compensation therefor, to States and local
governments, their equipment, supplies, facili-
ties, personnel, and other resources, other than
the extension of credit under the authority of
any Act;
(2) distributing or rendering, through the
American National Red Cross, other relief and
disaster assistance organizations, or otherwise,
medicine, food, and other consumable supplies,
or emergency assistance;
(3) donating or lending equipment and sup-
plies determined in accordance with applicable
laws to be surplus to the needs and responsi-
bilities of the Federal Government and
(4) performing on public or private lands
or waters any emergency work essential for
the protection and preservation of life and
property, including—
(A) clearing and removing debris and
wreckage;
(B) making repairs to, or restoring to serv-
ice, public facilities, belonging to State or
local governments, which were damaged or
destroyed by a major disaster except that the
Federal contribution therefor shall not ex-
ceed the net cost of restoring such facilities
to their capacity prior to such disaster;
(C) providing emergency shelter for indi-
viduals and families who, as a result of a
major disaster, require such assistance; and
(D) making contributions to State or local
governments for the purpose of carrying out
the provisions of paragraph (4).
(b) Emergency work performed under sub-
section (a) (4) of this section shall not pre-
clude Federal assistance under any other sec-
tion of this Act.
(c) Federal agencies may be reimbursed for
expenditures under section 203 (a) from funds
appropriated for the purposes of this Act. Any
funds received by Federal agencies as reim-
bursement for services or supplies furnished
under the authority of this section shall be
deposited to the credit of the appropriation or
appropriations currently available for such
services or supplies.
(d) The Federal Government shall not be
liable for any claim based upon the exercise
or performance or the failure to exercise or
perform a discretionary function or duty on
the part of a Federal agency or an employee
of the Federal Government in carrying out
the provisions of this section.
(e) Any Federal agency designated by the
President to exercise authority under this Act
may establish such special groups, interde-
partmental or otherwise, as it deems appro-
priate to assist in carrying out the provisions
of law relating to Federal disaster prepared-
ness and assistance, and the funds of any such
agency may be utilized for the necessary ex-
penses of any group so established.
(f) In carrying out the purposes of this
Act, any Federal agency is authorized to accept
and utilize the services or facilities of any
State or local government, or of any agency,
office, or employee thereof, with the consent of
such government. Any Federal agency, in per-
forming any activities under this section, is
authorized to appoint and fix the compensation
of such temporary personnel as may be neces-
sary, without regard to the provisions of title
5, United States Code, governing appointments
in the competitive service, and without regard
to the provisions of chapter 51 and subchapter
III of such title relating to classification and
General Schedule pay rates, to employ experts
and consultants in accordance with the pro-
-------
STATUTES AND LEGISLATIVE HISTORY
977
visions of section 3109 of such title, and to
incur obligations on behalf of the United States
by contract or otherwise for the acquisition,
rental, or hire of equipment, services, mate-
rials, and supplies for shipping, drayage, travel,
and communication, and for the supervision
and administration of such activities. Such
obligations, including obligations arising out of
the temporary employment of additional per-
sonnel, may be incurred by an agency in such
amount as may be made available to it by the
President.
(g) In the interest of providing maximum
mobilization of Federal assistance under this
Act, the President is authorized to coordinate
in such manner as he may determine the ac-
tivities of Federal agencies in providing dis-
aster assistance. The President may direct any
Federal agency to utilize its available personnel,
equipment, supplies, facilities, and other re-
sources in accordance with the authority herein
contained. The President may prescribe such
rules and regulations as may be necessary and
proper to carry out any of the provisions of
this Act, and he may exercise any power or
authority conferred on him by any section of
this Act either directly or through such Fed-
eral agency as he may designate.
(h) The President, acting through the Office
of Emergency Preparedness, shall conduct peri-
odic reviews (at least annually) of the activi-
ties of Federal and State departments or
agencies providing disaster assistance, in order
to assure maximum coordination of such pro-
grams, and to evaluate progress being made in
the development of Federal, State, and local
preparedness to cope with major disasters.
USE OF LOCAL FIRMS AND INDIVIDUALS
SEC. 204. In the expenditure of Federal funds
for debris clearance, distribution of supplies,
reconstruction, and other major disaster as-
sistance activities which may be carried out
by contract with private organizations, firms,
or individuals, preference shall be given, to
the extent feasible and practicable, to those
organizations, firms, and individuals who re-
side or do business primarily in the disaster
area.
FEDERAL GRANT-IN-AID PROGRAMS
SEC. 205. Any Federal agency charged with
the administration of a Federal grant-in-aid
program is authorized, if so requested by the
applicant State or local authorities, to modify
or waive, for the duration of a major disaster
proclamation, such conditions for assistance as
would otherwise prevent the giving of assist-
ance under such programs if the inability to
meet such conditions is a result of the disaster.
STATE DISASTER PLANS
SEC. 206. (a) The President is authorized
to provide assistance to the States in develop-
ing comprehensive plans and practicable pro-
grams for preparation against major disasters,
and for relief and assistance for individuals,
businesses, and local governments following
such disaster. Such plans should include long-
range recovery and reconstruction assistance
plans for seriously damaged or destroyed pub-
lic and private facilities.
(b) The President is authorized to make
grants of not more than $250,000 to any State,
upon application therefor, for not to exceed
50 per centum of the cost of developing such
plans and programs.
(c) Any State desiring assistance under this
section shall designate or create an agency
which is specially qualified to plan and admin-
ister such a disaster relief program, and shall,
through such agency, submit a State plan to
the President, which shall—
(1) set forth a comprehensive and detailed
State program for preparation against, and
relief following, a major disaster, including
provisions for emergency and long-term assist-
ance to individuals, businesses, and local gov-
ernments; and
(2) include provision for the appointment
of a State coordinating officer to act in co-
operation with the Federal coordinating officer
appointed under section 201 of this Act.
(d) From time to time the Director shall
make a report to the President, for submis-
sion to the Congress, containing his recom-
mendations for programs for the Federal role
in the implementation and funding of com-
prehensive disaster relief plans, and such other
recommendations relating to the Federal role
in disaster relief activities as he deems war-
ranted.
-------
978
LEGAL COMPILATION—GENERAL
whenever such organizations are engaged in
providing relief during and after a major dis-
aster. Any such agreement shall include pro-
visions conditioning use of the facilities of the
Office of Emergency Preparedness and the
services of the coordinating officer upon com-
pliance with regulations promulgated by the
Director under sections 208 and 209 of this
Act, and such other regulations as the Director
may require.
DUPLICATION OP BENEFITS
SEC. 208. (a) The Director, in consultation
with the head of each Federal agency admin-
istering any program providing financial assist-
ance to persons, business concerns, or other
entities suffering losses as the result of a
major disaster, shall assure that no such per-
son, business concern, or other entity will
receive such assistance with respect to any
part of such loss as to which he has received
financial assistance under any other program.
(b) The Director shall assure that no per-
son, business concern, or other entity receives
any Federal assistance for any part of a loss
suffered as the result of a major disaster if
such person, concern, or entity received com-
pensation from insurance or any other source
for that part of such a loss. Partial compen-
sation for a loss or a part of a loss resulting
from a major disaster shall not preclude addi-
tional Federal assistance for any part of such
a loss not compensated otherwise.
(c) Whenever the Director determines (1)
that a person, business concern, or other en-
tity has received assistance under this Act for
a loss and that such person, business concern
or otber entity received assistance for the same
loss from another source, and (2) that the
amount received from all sources exceeded the
amount of the loss, he shall direct such person,
business concern, or other entity to pay to the
Treasury an amount, not to exceed the amount
of Federal assistance received, sufficient to
reimburse the Federal Government for that
part of the assistance which he deems excessive.
NONDISCRIMINATION IN DISASTER ASSISTANCE
SEC. 209. (a) The Director shall issue, and
may alter and amend, such regulations as may
be necessary for the guidance of personnel
carrying out emergency relief functions at
the site of a major disaster. Such regulations
shall include provisions for insuring that the
distribution of supplies, the processing of
applications, and other relief and assistance
activities shall be accomplished in an equitable
and impartial manner, without discrimination
on the grounds of race, color, religion, nation-
ality, sex, age, or economic status prior to a
major disaster.
(b) As a condition of participation in the
distribution of assistance or supplies under
section 207, relief organizations shall be re-
quired to comply with regulations relating to
nondiscrimination promulgated by the Director,
and such other regulations applicable to ac-
tivities within a major disaster area as he
deems necessary for the effective coordination
of relief efforts.
ADVISORY PERSONNEL
Sec. 210. The Director is authorized to as-
sign advisory personnel to the chief executive
officer of any State or local government within
a major disaster area, upon request by such
officer, whenever the Director determines that
such assignment is desirable in order to insure
full utilization of relief and assistance resources
and programs.
DISASTER WARNINGS
SEC. 211. The President is authorized to
utilize or to make available to Federal, State,
and local agencies the facilities of the civil
defense communications system established and
maintained pursuant to section 201 (c) of the
Federal Civil Defense Act of 1950, as amended
(50 U.S.C. app. 2281 (c)), for the purpose of
providing needed warning to governmental
authorities and the civilian population in areas
endangered by imminent major disasters.
PART B—EMERGENCY RELIEF
PREDISASTER ASSISTANCE
SEC. 221. To avert or lessen the effects of a
major disaster, the President is authorized,
without declaring a major disaster, to utilize
Federal resources in providing disaster assist-
ance to any State to assist such State or any
local government thereof in circumstances
which clearly indicate the imminent occurrence
of a major disaster.
EMERGENCY COMMUNICATIONS
SBC. 222. The Director is authorized to es-
tablish emergency communications in any
major disaster area in order to carry out the
functions of his office, and to make such com-
munications available to State and local gov-
ernment officials and other persons as he deems
appropriate.
EMERGENCY PUBLIC TRANSPORTATION
SEC. 223. The Director is authorized to pro-
vide public transportation service to meet
emergency needs in a major disaster area.
Such service will provide transportation to
governmental offices, supply centers, stores,
post offices, schools, major employment cen-
ters, and such other places as may be necessary
in order to enable the community to resume its
normal pattern of life as soon as possible.
DEBRIS REMOVAL GRANTS
SEC. 224. The President, whenever he deter-
mines it to be in the public interest, is author-
ized to make grants to any State or local
-------
STATUTES AND LEGISLATIVE HISTORY
979
government for the purpose of removing debris
on privately owned lands or waters as a result
of a major disaster, and is authorized to make
payments through such State or local govern-
ment for the removal of debris from community
areas which may include the private property
of an individual. No benefits will be available
under this section unless such State or local
government arranges unconditional authoriza-
tion for removal of debris from such property
and agrees to indemnify the Federal Govern-
ment against any claims arising from such
debris removal.
FIRE SUPPRESSION GRANTS
SEC. 225. The President is authorized to
provide assistance, including grants, to any
State for the suppression of any fire on pub-
licly or privately owned forest or grassland
which threatens such destruction as would
constitute a major disaster.
TEMPORARY HOUSING ASSISTANCE
SEC. 226, (a) The Director is authorized to
provide on a temporary basis, as prescribed in
this section, dwelling1 accommodations for in-
dividuals and families who, as a result of a
major disastei, are in need of assistance by
(1) using any unoccupied housing owned by
the United States under any program of the
Federal Government, (2) arranging with a
local public housing agency for using unoccu-
pied public housing units, or (3) acquiring
existing dwellings or mobile homes or other
readily fabricated dwellings, by purchase or
lease. Notwithstanding any other provision of
law, any existing dwellings, mobile homes, or
readily fabricated dwellings acquired by pur-
chase may be sold directly to individuals and
families who are occupants of such temporary
accommodations at prices that are fair and
equitable. Any mobile home or readily fabri-
cated dwelling shall be placed on a site com-
plete with utilities provided by State or local
government, or by the owner or occupant of
the site who was displaced by the major dis-
aster, without charge to the United States.
However, the Director may elect to provide
other more economical and accessible sites at
Federal expense when he determines such
action to be in the public interest.
(b) After the initial ninety days of occu-
pancy without charge, rental shall be estab-
lished for such accommodations, under such
rules and regulations as the Director may
prescribe taking into account the financial
resources of the occupant. In case of financial
hardship, rentals may be compromised, ad-
justed, or waived for a period not to exceed
twelve months from the date of occupancy, but
in no case shall any such individual or family
be required to incur a monthly housing expense
(including any fixed expense relating to the
amortization of debt owing on a house de-
strojed 01 damaged in a major disaster) which
is excess of 25 per centum of the monthly in-
come of the occupant or occupants.
(c) The Director is further authorized to
provide assistance on a temporary basis in
the form of mortgage or rental payments to
or on behalf of individuals and families who,
as a result of financial hardship caused by a
major disaster, have received written notice
of dispossession or eviction from a residence
by reason of foreclosure of any mortgage or
lien, cancellation of any contract of sale, or
termination of any lease, oral or written. Such
assistance shall be provided for a period of
not to exceed one year or for the duration
of the period of financial hardship, whichever
is the lesser. The Director shall, for the pur-
poses of this subsection and in furtherance of
the purposes of section 240 of this Act, provide
reemployment assistance services to individuals
who are unemployed as a result of a major
disaster.
[p. 31042]
PART D—RESTORATION OF PUBLIC FACILITIES
FEDERAL FACILITIES
SEC. 251. The President may authorize any
Federal agency to repair, reconstruct, restore,
or replace any facility owned by the United
States and under the jurisdiction of such
agency which is damaged or destroyed by any
major disaster if he determines that such re-
pair, reconstruction, restoration, or replace-
ment is of such importance and urgency that
it cannot reasonably be deferred pending the
enactment of specific authorizing legislation or
the making of an appropriation for such pur-
poses. In order to carry out the provisions of
this section, such repair, reconstruction, res-
toration, or replacement may be begun not-
withstanding a lack or an insufficiency of
funds appropriated for such purpose, where
such lack or insufficiency can be remedied by
the transfer, in accordance with law, of funds
appropriated for another purpose.
STATE AND LOCAL GOVERNMENT FACILITIES
SEC. 252. (a) The President is authorized to
make contributions to State or local govern-
ments to repair, restore, reconstruct, or re-
place public facilities belonging to such State
or local governments which were damaged or
destroyed by a major disaster, except that the
Federal contribution therefor shall not exceed
50 per centum of the net cost of restoring
any such facility to its capacity prior to such
disaster and in conformity with applicable
codes and specifications.
(b) In the case of any such public facilities
which were in the process of construction
when damaged or destroyed by a major dis-
aster, the Federal contribution shall not exceed
50 per centum of the net costs of restoring
-------
980
LEGAL COMPILATION—GENERAL
such facilities substantially to their prior to
such disaster condition and of completing con*
struction not performed prior to the major
disaster to the extent the increase of such cost
over the original construction cost is attribu-
table to changed conditions resulting from a
major disaster.
(c) For the purposes of this section "public
facility" includes any flood control, naviga-
tion, irrigation, reclamation, public power,
sewage treatment and collection, water supply
and distribution, watershed development, or
airport facility, any non-Federal-aid street,
road, or highway, and any other essential
public facility.
[p. 31044]
Mr. COOPER. Mr. President, I wish
to join my colleagues on the Com-
mittee on Public Works and other
Members of the Senate in commend-
ing the Senator from Indiana for his
work in connection with this bill. In
1967 and 1968 he introduced a dis-
aster relief bill as he had earlier in
1965 which resulted in the act of
1966. There was considerable discus-
sion of that bill, different viewpoints,
and thorough consideration which I
believe was helpful in the develop-
ment of the 1969 act and also of the
bill which is now before us. Last year
we had the California floods and
the awful disaster of Hurricane Ca-
mille affecting especially Mississippi
and Virginia. We were helped very
much in the committee discussions on
the 1969 act and on this bill by the
distinguished Senators from Missis-
sippi (Mr. STENNIS and Mr. EAST-
LAND), by the earnest and perceptive
work of the Senator from Virginia
who is a member of the committee
(Mr. SPONG) and his colleague (Mr.
BYRD). The Committee on Public
Works established a Special Subcom-
mittee on Disaster Relief, which held
extensive hearings in the field and in
Washington.
The President then sent to the Con-
gress early this year a special dis-
aster assistance message, containing
the legislative recommendations of
the administration, the most compre-
hensive disaster relief proposals made
by any administration. I introduced
the administration bill, S. 3745, on
April 23, 1970, which was cosponsored
also by Senator DOLE and Senators
RANDOLPH and BAYH, chairmen of
the full committee and the subcom-
mittee. Most of those recommenda-
tions have been included in S. 3619.
I want to pay special tribute to the
Senator from Kansas (Mr. DOLE) who
is the ranking minority member of the
subcommittee, and a new Member of
the Senate. He entered into this work
with all of his energy. He went to
Mississippi, and he went to Virginia,
when others found the trip too diffi-
cult or the weather too bad to go.
He worked closely with the adminis-
tration and diligently within our com-
mittee. I think the bill which is the
result of these combined efforts is the
most comprehensive of its kind ever
to come before Congress.
The Disaster Assistance Act of
1970, S. 3619, represents efforts of the
Subcommittee on Disaster Relief of
the full Public Works Committee to
bring orderly assistance to the chaos
and suffering wrought by natural dis-
asters. The committee's work on this
legislation began on the gulf coast
following Hurricane Camille, when
hearings were held in Biloxi in Jan-
uary. Further field hearings were
held in Roanoke, as well as several
days of hearings here in Washington.
The committee's deliberations have
focused on legislative proposals S.
3619 and S. 3745. The latter was an
administration proposal which came
to Congress with a Presidential mes-
sage on disaster assistance. The com-
mittee, its staff, and officials of the
administering agencies of the execu-
tive branch have worked together
closely throughout the development of
this legislation and I believe that the
strong legislation before the Senate
this evening reflects that careful and
thorough deliberative process.
The bill recodifies much of existing
law in the disaster assistance field and
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STATUTES AND LEGISLATIVE HISTORY
981
in doing so should greatly aid the task
of State and local officials in determin-
ing what kinds of assistance are avail-
able to them in rebuilding their shat-
tered communities. The confusion
which has existed up to now, due to
the different laws dealing with dis-
aster relief, was repeatedly mentioned
throughout the hearings.
On April 22, 1970, President Nixon
sent a message to the Congress ask-
ing for the most comprehensive dis-
aster relief in history. The adminis-
tration can be proud of the provisions
of S. 3475, its bill which I introduced
on April 23. They were good provi-
sions and all but two of the major
sections were included in the reported
version of S. 3619 in whole or in some
modified version.
I think the administration is to be
further commended for the actions it
has taken since Hurricane Camille to
streamline and improve administering
to people's needs in the period follow-
ing a major disaster.
It is important, it seems to me, to
note that throughout the committee's
work on this legislation two threads
of thought were constantly apparent.
We wanted to design legislation to
care for people. And secondly, we
wanted to assure that the negative
realities of destruction be turned, so
far as possible, to constructive and
productive rebuilding. S. 3619 seeks to
fulfill those aims and its passage and
enactment into law will do much to
assure that we "build back better"
what is destroyed by future natural
disasters in the future.
Again I commend the Senator from
Indiana, Senator BAYH, our committee
chairman, the junior Senator from
Kansas, Senator DOLE, who worked
hard in the hearings, in the field and
on the development of the bill, Sena-
tor SPONG of Virginia, and all the
members of our Public Works Com-
mittee and the staff.
Mr. President, I ask unanimous
consent the message from the Presi-
dent to the Congress on April 22,
1970—the most comprehensive pro-
posals on disaster assistance by any
President, and which contributed so
much to the development of this bill
—be included in the RECORD following
my remarks.
There being no objection, the mes-
sage was ordered to be printed in
the RECORD, as follows:
MESSAGE FROM THE PRESIDENT
To the Congress of the United States:
The spirit of neighborhness, the readiness
to extend a helping hand in time of trouble,
is one of the great traditions of this country.
in the early years of our history, good neigh-
ooi's were essential in coping with the hard-
sn.ps of pioneer life. They are equally essen-
tial in meeting the challenges of life today.
The spirit of the good neighbor was par-
ticularly evident in 1969 when natural disasters
struck this country in unprecedented numbers
and with unprecedented force. Twenty-nine
major disasters and an untold number of
smaller disasters were responsible for over 300
deaths and an estimated $2 billion in property
damage in the last calendar year. Events such
as the California floods and Hurricane Camille
with the Virginia floods were exceptionally
destructive.
Private voluntary agencies have tradition-
ally played a crucial role during times of dis-
aster. State and local governments are key
factors in any successful disaster relief effort.
Thus the Federal role is only one part of the
overall response of the nation. But it is a
very important part of that response. Under
the Federal Disaster Acts of 1950, 1966, and
1969 and their amendments and under provi-
sions in many other statutes, the Federal
government works to help individuals through
relief and rehabilitation efforts and to assist
State and local governments by restoring pub-
lic facilities essential to community life. In
1969 the Federal government allocated $150
million for assistance from the President's
Disaster Relief Fund—the largest sum for any
one year in history. Significant additional funds
were spent on disaster assistance under other
Federal programs. A report of our 1969 ex-
perience is being provided to the Congress.
We are confident that the general frame-
work of our present program provides an
effective mechanism for channeling Federal
disaster assistance to individuals and com-
munities. Rather than depending on a spe-
cialized disaster assistance agency, the present
system makes maximum use of existing agen-
cies, centrally coordinated by the Office of
Emergency Preparedness, to perform tasks in
time of emergency which are similar to those
-------
982
LEGAL COMPILATION—GENERAL
which they perform in normal circumstances.
Our present arrangements also encourage con-
structive and cooperative efforts among, indi-
viduals, local communities, the States and the
Federal government.
At the same time, however, we have learned
that a number of improvements are in order
[p. 31048]
within the existing framework. The last presi-
dential special message on the subject of dis-
aster assistance was written 18 years ago.
Since that time, this program has grown in
a piecemeal and often haphazard manner, in-
volving over 50 separate Congressional enact-
ments and executive actions. This slow devel-
opment process has created a complex pro-
gram, one which has a number of gaps and
overlaps and needs increased coordination. It
is time for new legislation and executive action
to make our Federal disaster assistance pro-
gram more effective and efficient.
LEGISLATIVE PROPOSALS
To extend and to improve the assistance
which the Federal Government can provide
in time of major disasters, I am asking the
Congress to enact the Disaster Assistance Act
of 1970. This legislation contains a number of
specific proposals, the most important of which
are the following:
Revenue maintenance
When a community experiences a major
disaster, the physical impact is obvious. What
the television camera does not capture, how-
ever, is the loss of property tax revenue
which occurs when a substantial portion of a
community's property tax base is destroyed and
its essential services are disrupted.
To ease this difficulty, / recommend that
the Congress enact a property tax revenue
maintenance plan. Under this plan, the Fed-
eral government would he authorized to lend
money at favorable interest rates to local
governments to make up their loss of property
tax revenues following a major disaster.
Permanent repair
I am asking the Congress for expanded
Federal authority to permanently repair or
replace essential public facilities damaged by
disasters. This authorization would provide a
more effective and practical approach to the
replacement of damaged public facilities which
are vital to community life. This Administra-
tion would give preference to local employees
and contractors in repair and rebuilding work.
Economic development assistance
I am also asking the Congress to amend
the Public Works and Economic Develop-
ment Act of 1965, so that the Economic De-
velopment Administration would provide staff
support, technical advice and financial assist-
ance to those communities affected by major
disasters. Such assistance is vital in recovery
efforts, particularly when the community is
attempting to begin long-range .rebuilding or
redevelopment efforts:
Disaster loans
I am proposing legislation to improve the
disaster loan programs of the Small Business
Administration and of the Farmers Home Ad-
ministration. These loans are among our prin-
cipal sources of assistance to stricken individ-
uals. The recommended changes would provide
for improved refinancing, payment deferral,
and forgiveness arrangements and would assure
disaster loans to older citizens. My proposed
amendment would allow the FHA and SB A
to provide faster service and would therefore
promote speedier recovery following disasters.
Unemployment compensation
I am also recommending that the Congress
extend for two years the expanded unem-
ployment compensation provisions of the Dis-
aster Relief Act of 1969. These provisions
make temporary income available as promptly
as possible to help individuals who are un-
employed as the result of a major disaster.
Such assistance to individuals was a new fea-
ture of the 1969 Act. Before last year, only
those unemployed persons who could qualify
for compensation under the normal unem-
ployment insurance programs could receive
income protection following a disaster. The
two-year extension which I recommend would
provide time to fully evaluate the new pro-
visions and to consider appropriate legislation.
Housing
Hurricane Camille provided the greatest
test of the Federal government's ability to
provide temporary housing to victims of a
major disaster. We believe we met that test;
at the direction of the Office of Emergency
Preparedness, the Department of Housing and
Urban Development was able to place more
than 5,000 mobile homes in the disaster area.
We also believe, however, that the language
of the law which authorizes such activities
is confusing.
Two separate provisions in two different
laws are now directed to temporary emer-
gency housing. In order to simplify the legis-
lative provisions that apply to this problem,
7 propose that the provisions for temporary
housing in PL 81-875 be amended so that they
incorporate many of the broad principles of
PL 91-79, without sacrificing flexibility. A
clarified version of this law would allow the
government to provide temporary housing
or other emergency shelter—including leased
mobile homes or other readily fabricated
dwellings.
-------
STATUTES AND LEGISLATIVE HISTORY
983
Debris removal
One of the serious problems encountered
in Hurricane Camille related to the removal
of debris from private property. Current leg-
islation in this area is confusing and difficult
to administer. / am therefore proposing cor-
rective legislation that would simplify and
speed debris removal from private property
when it is in the public interest. Again, pref-
erence would be given to local employees and
contractors.
Disaster prevention
In March and April 1969 this Administra-
tion conducted a massive flood prevention
program in the upper Midwest and New Eng-
land. This program—Operation Foresight—
was immensely successful; it prevented wide-
spread human suffering and an estimated
$200 million in damages, at a cost of $20
million. The success of this disaster preven-
tion effort suggests that we can do a great
deal to avoid or limit the effects of expected
disasters. Accordingly, I am proposing legis-
lation which would extend the Federal gov-
ernment's authority to assist State and local
governments in disaster prevention and dam-
age reduction activities.
Planning assistance
The Disaster Relief Act of 1969 authorized
one-time matching grants to help States for-
mulate better plans for coping with disasters.
Almost half of the States have already indi-
cated that they will join us in this effort and
we expect that others will soon follow their
lead. / now recommend that the Congress ex-
pand this provision of the 1969 law in order
to help States review and update these plans
on a continuing basis.
In addition to the major initiatives out-
lined above, the legislation prepared by the
Administration includes a number of other
changes designed to extend the scope and
improve the effectiveness of Federal assistance.
Administrative actions
Legislative changes are not the only im-
provements which are presently required.
Our experience indicates that changes in ad-
ministrative procedures can be equally im-
portant in providing a more effective assist-
ance program.
Coordination
To improve coordination of Federal Dis-
aster Assistance efforts, both among Federal
agencies and among Federal, State, and local
officials, I am establishing a National Coun-
cil on Federal Disaster Assistance. The Coun-
cil will be composed of senior officials from
Federal agencies concerned with disaster as-
sistance and will be chaired by the Director
of the Office of Emergency Preparedness.
To further improve coordination of disaster
assistance activities in the field, I have also
directed that the Regional Directors of the
Office of Emergency Preparedness be included
as ad hoc members of the newly formed
Federal Regional Councils. This improvement
will be supplemented by other actions to im-
prove coordination among all levels of gov-
ernment, including the Office of Emergency
Preparedness regional planning conferences
with State officials with the first such confer-
ence this month on the West Coast.
In addition to improving coordination and
developing more comprehensive plans, we need
better procedures for continuous communica-
tion with State and local governments on such
matters as disaster legislation. The Council
of State Governments and such organizations
as the International City Management Asso-
ciation, the National Association of Counties,
the National League of Cities, and the United
States Conference of Mayors are assisting us
in this effort.
Improvements in disaster assistance also
require an improved program of research and
evaluation, the results of which are readily
available to all who can benefit from them.
I have therefore directed the Office of Emer-
gency Preparedness to act as a central clear-
ing house for all Federal research which is
related to disasters.
Assistance to individuals
An important objective, particularly in
large-scale disasters, is that of informing
individuals of the assistance which is avail-
able and of the places where it can be ob-
tained. To meet this problem, we are ex-
panding our information efforts and keying
those efforts to the needs of the individual
citizens of the community, particularly those
who are poor.
Whenever a disaster occurs, those who live
in the area desperately want to be in touch
with their friends and relatives who live
elsewhere. Rescue workers also need better
communication facilities within such areas,
I have therefore asked the Office of Emergency
Preparedness to provide better emergency com-
munication services to stricken regions during
times of disaster.
Just as we make it easier for individuals
to get information, so we should make it
easier for them to get assistance. It should
not be necessary for individuals to travel from
one place to another and then to still another
location in order to obtain the help which
various agencies of the Federal government
are providing. Accordingly, we are developing
plans to provide "one-stop" service to indi-
viduals in disaster areas. Representatives of
the principal Federal agencies and of the Red
Cross, as well as caseworkers and legal advi-
-------
984
LEGAL COMPILATION—GENERAL
sors, will all be available at a single assistance
center.
Disaster assistance teams
Disaster stricken communities frequently
lack trained personnel who can help them
make the best possible use of the assistance
which is available to them from many sources.
To meet this need, I have directed the Office
of Emergency Preparedness to form Federal
disaster assistance teams to help local com-
munities coordinate the overall assistance
effort. These teams will be supervised by a
Federal Disaster Assistance Coordinator who
will act as an on-the-spot representative of
the President in any particular disaster area.
Disaster Insurance
Our experience with disasters in 1969 clearly
demonstrated the need for expanded insur-
ance coverage for property owners. The na-
tional flood insurance sections of the Housing
and Urban Development Act of 1968 presently
permit Federal insurance assistance in flood-
prone areas and we are now implementing
that program on an accelerated basis. / am
also directing that a comprehensive study of
property insurance coverage for disaster situ-
[p. 31049]
ations be undertaken and that specific recom-
mendations be provided me by the end of this
year. This study should take into account the
views of the State insurance authorities, the
insurance industry, insuring: institutions, and
the general public.
Civil Defense
The disaster assistance activities of State
and local governments often are closely re-
lated to their civil defense responsibilities.
The relationship between the Federal govern-
ment's disaster assistance and civil defense
activities should now be carefully reviewed.
Accordingly, I have asked that such a study
be carried out and that its recommendations
be given to me by December 31, 1970. It is
important that any changes in this sensitive
area be made only after a careful review, one
which gives special attention to the impact of
any suggested change upon national security.
*****
As we move into a new decade, one of the
nation's major goals is to restore a ravaged
environment. But we must also be ready to
respond effectively when nature gets out ot
control and victimizes our citizens.
With the improvements I have recommended
to the Congress and those which I am insti-
tuting by Executive action, the disaster assist-
ance program of the Federal government will
continue to provide outstanding public service
in times of crisis. This program manifests the
extraordinary humanitarian spirit of our na-
tion. The changes I have proposed would
enable it to reflect that spirit even more
effectively.
RICHARD NIXON.
THE WHITE HOUSE, April Hit, 1970.
Mr. BAYH. Mr. President, I yield
to the Senator from Kansas.
Mr. DOLE. Mr. President, I concur
in the statements made earlier by the
Senator from Indiana, the Senator
from West Virginia, and the Senator
from Kentucky, the Senator from Vir-
ginia, and, of course, the Senator from
Mississippi.
It was an eye-opening experience
for me and every member of our sub-
committee to visit the Biloxi area. We
visited Pass Christian and found an
entire community leveled, the tax base
destroyed, and no apparent means of
reviving that community.
This field investigation and the
hearings that ensued are responsible
for some of the improvements pro-
posed in this legislation.
I share the views of the Senator
from Indiana who has been the leader
in proposing disaster legislation. I
had misgivings in the beginning about
some provisions, but after witnessing
the hardships and tragedies that re-
sult from disasters I am convinced
the subcommittee has done an excel-
lent job.
The bill represents the efforts of the
subcommittee, the efforts of the ad-
ministration, and the efforts of the
minority and majority staff of the
subcommittee and full committee who
worked tirelessly with staff members
of OEP to write a bill that is re-
sponsive to the needs of the people
in time of disaster.
It is my opinion that we have passed
and approved in the subcommittee and
in full committee, with the approval
of the Committee on Banking and
Currency, landmark legislation. There
are significant efforts to improve and
update our disaster assistance pro-
grams.
-------
STATUTES AND LEGISLATIVE HISTORY
985
Mr. President, on April 22, 1970,
President Nixon, in the first special
message to Congress on the subject
of disaster assistance in 18 years,
pointed out:
The spirit of neighborliness, the readiness
to extend a helping hand in time of trouble,
is one of the great traditions of this country.
In the early years of our history, good neigh-
bors were essential in coping with the hard-
ships of pioneer life. They are equally essen-
tial in meeting the challenges of life today.
In 1969, the challenges posed by nat-
ural disasters surpassed those of any
single year since the first comprehen-
sive Federal Disaster Act was passed
in 1950. There were 29 major dis-
asters, which included the California
floods and Hurricane Camille, de-
scribed by the U.S. Geological Survey
as "the most intensive hurricane on
record to enter the U.S. mainland."
As a result, the Federal Government
allocated a total of $148,970,000 from
the President's disaster fund, the
largest sum for any year in history.
In addition, the disaster loan pro-
grams of the Small Business Admin-
istration and the Farmers Home Ad-
ministration were of major assistance
during 1969 to homeowners, business-
men, and farmers. Food supplies from
the Department of Agriculture, com-
munity relations services from the De-
partment of Justice, and legal assist-
ance grants from OEO also helped
many disaster victims.
Despite the tremendous response of
the Federal agencies to the major
disasters of 1969, President Nixon
recognized the need to improve our
performance. In his special message
to the Congress, he proposed far-
reaching legislative and administra-
tive changes. The President found that
our disaster assistance program has
"grown in a piecemeal and often hap-
hazard manner, involving over 50
separate congressional enactments and
Executive actions." He noted that—
This slow development process has created
a complex program, one which has a number
of gaps and overlaps and needs increased
coordination.
The bill we are considering today
includes the best concepts and pro-
posals of S. 3619 introduced by Sena-
tor BAYH, chairman of the Subcom-
mittee on Disaster Relief, and S.
3745, introduced by Senator COOPER,
ranking minority member of the full
Committee on Public Works, on be-
half of the administration. Specifi-
cally, the following provisions from
S. 3745 are included in this bill:
First. Provision for removal of the
"emergency repair of temporary re-
placement" criteria of work on essen-
tial public facilities, with the proviso
that the Federal cost of permanent
repair or replacement not exceed the
net worth of the facility to its pre-
disaster capacity.
Second. Provisions to allow the
President to contract or make agree-
ments with private relief organiza-
tions in order that the activities of
these organizations can be coordinated
by appropriate officials and condition-
ing of such agreements on compliance
with title VI of the Civil Rights Act
of 1964.
Third. Provisions to provide for
forgiveness of up to $2,500 on losses
or damage in excess of $500 on the
principle of an SBA or FHA disaster
loan.
Fourth. Provision that the State
planning program would be an on-
going activity rather than expire on
December 31, 1970. Additionally, pro-
visions to limit the amount of assist-
ance available to any one State to
$25,000 per annum and in amounts
which shall comprise more than 50
percent of the total cost of such
planning.
Fifth. Provision that debris-clear-
ance assistance to the States and
local governments not be made unless
the State or local jurisdiction agrees
to unconditionally indemnify the Fed-
eral Government from any claims
-------
986
LEGAL COMPILATION—GENERAL
arising as a consequence of the debris
removal.
Sixth. Provision to establish a com-
munity disaster loan fund in the
Treasury for assistance to local com-
munities suffering substantial loss
because of a major disaster.
Seventh. Provision to authorize as-
sistance in advance of an imminent
disaster.
Eighth. Provisions dealing with
antidiscrimination in the administra-
tion of assistance; with the estab-
lishment of advisory groups on dis-
aster relief, and on the assignment
of advisory personnel, to local com-
munities.
In addition, the President's pro-
gram improvements to be achieved
administratively have been accom-
plished or are well underway:
A National Council on Federal Dis-
aster Assistance has been established.
The Council brings together senior
level officials of Federal agencies to
improve coordination of Federal as-
sistance efforts.
One-stop centers: The concept has
been tried and proven in the recent
Lubbock and Corpus Christi, Tex.,
disasters, making it easier for dis-
aster victims to get information and
assistance.
Disaster assistance teams: Teams
of knowledgeable Federal officials,
supervised by OEP disaster assistance
coordinators, are helping communi-
ties and individuals in disaster relief
and recovery efforts.
Disaster research: Within OEP, a
research effort is being initiated,
wherein the agency serves as the
clearinghouse on all disaster-related
research.
During our hearings, both in the
field and in Washington, we heard
many complaints about insurance cov-
erage for property owners. At that
time, the National Flood Insurance
Section of the Housing and Urban
Development Act of 1969, permitting
Federal insurance assistance in flood-
prone areas, had not been fully im-
plemented. That program has now
been accelerated, and many more
communities are participating. Hope-
fully, the frustrations arising out of
the insurance practices of the past
will cease to occur. Further, Presi-
dent Nixon has requested a compre-
hensive study of property insurance
coverage for disaster and will be re-
ceiving specific recommendations be-
fore the end of the year.
The response of State and local
governments to a major natural dis-
aster is one of the most important
aspects of effective disaster assist-
ance. We found that there was a wide
variance in the ability of the States
and in turn the local governments to
truly aid their citizens. Oftentimes,
those who are designated for such
[p. 31050]
duties are disaster victims themselves.
Where there has been an affirmative
response, it is often related to the
ability of the State and local civil de-
fense units. The relationship between
the Federal Government's disaster as-
sistance and civil defense activities is
under review by the President. I am
hopeful he will forward recommended
changes to the Congress shortly after
the first of the year.
As the President said in his disas-
ter message:
The general framework of our present pro-
gram provides an effective mechanism for
channeling federal disaster assistance to in-
dividuals and communities.
But this legislation for the first time
consolidates our major disaster assist-
ance programs and provides additional
assistance in areas in which we have
been deficient in the past. It is the
result of bipartisan efforts of mem-
bers of the committee and the respon-
sible officials in the executive branch.
As ranking minority members of the
Subcommittee on Disaster Relief, I
join my colleagues in supporting the
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STATUTES AND LEGISLATIVE HISTORY
987
Disaster Assistance Act of 1970. It
will allow us, in the President's words,
"to respond effectively when nature
gets out of control and victimizes our
citizens."
[p. 31051]
So the bill (S. 3619) was passed
as follows:
S. 3619
An act to revise and expand Federal pro-
grams for relief from the effects of major
disasters, and for other purposes.
Be it enacted by the Senate and House of
Representatives of the United States of Amer-
ica in Congress assembled, That this Act may
be cited as the "Disaster Assistance Act of
1970".
TITLE I—FINDINGS AND DECLARATIONS;
DEFINITIONS
FINDINGS AND DECLARATIONS
Sec. 101. (a) The Congress hereby finds
and declares that—
(1) because loss of life, human suffering,
loss of income, and property loss and damage
result from major disasters such as hurri-
canes, tornadoes, storms, floods, high waters,
wind-driven waters, tidal waves, earthquakes,
droughts, fires and other catastrophes; and
<2) because such disasters disrupt the nor-
mal functioning of government and the com-
munity, and adversely affect individual persons
and families with great severity; special meas-
ures, designed to expedite the rendering of aid,
assistance, and emergency welfare services,
and the reconstruction and rehabilitation of
devastated areas, are necessary.
(b) It is the intent of the Congress, by this
Act, to provide an orderly and continuing
means of alleviating the suffering and damage
which result from such disasters by—
(1) revising and broadening the scope of
existing major disaster relief programs;
< 2) encouraging the development of com-
prehensive disaster relief plans, programs, and
organizations by the States; and
(3) achieving greater coordination and re-
sponsiveness of Federal major disaster relief
programs.
DEFINITIONS
SEC. 102. As used in this Act—
(1) "major disaster" means any hurricane
tornado, storm, flood, high water, wind-driven
water, tidal wave, earthquake, drought, fire, or
other catastrophe in any part of the United
States, which in the determination of the
President, is or threatens to be of sufficient
severity and magnitude to warrant disaster
assistance by the Federal Government to sup-
plement the efforts and available resources
of States, local governments, and relief or-
ganizations in alleviating the damage, loss,
hardship, or suffering caused thereby, and
with respect to which the Governor of any
State in which such catastrophe occurs or
threatens to occur certifies the need for dis-
aster assistance under this Act and gives
assurance of the expenditure of a reasonable
amount of the funds of such State, its local
governments, or other agencies for alleviating
the damage, loss, hardship or suffering result-
ing from such catastrophe;
(2) "United States" means the fifty States,
the District of Columbia, Puerto Rico, the
Virgin Islands, Guam, American Samoa, and
the Trust Territory of the Pacific Islands;
(3) "State" means any State of the United
States, the District of Columbia, Puerto Rico,
the Virgin Islands, Guam, American Samoa, or
the Trust Territory of the Pacific Islands;
(4) "Governor" means the chief executive
of any State:
(5) "local government" means any county,
city, village, town, district, or other political
subdivision of any State, and includes any
rural community or unincorporated town or
village for which an application for assist-
ance is made by a State or political subdivi-
sion thereof;
(6) "Federal agency" means any depart-
ment, independent establishment, Federal cor-
poration, or other agency of the executive
branch of the Federal Government, except
the American National Red Cross; and
[p. 31058]
(7) "Director" means the Director of the
Office of Emergency Preparedness.
TITLE II—THE ADMINISTRATION OF
DISASTER ASSISTANCE
PART A—GENERAL PROVISIONS
FEDERAL COORDINATING OFFICER
SEC. 201. (a) The President shall appoint,
immediately upon his designation of a major
disaster area, a Federal coordinating officer
to operate under the Office of Emergency
Preparedness in such area.
(b) In order to effectuate the purposes of
this Act, the coordinating officer, within the
designated area, shall
(1) make an initial appraisal of the types
of relief most urgently needed;
(2) establish such field offices as he deems
necessary and as are authorized by the Di-
rector;
(3) coordinate the administration of relief,
including activities of the American National
Red Cross and of other relief organizations
which agree to operate under his advice or
direction; and
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988
LEGAL COMPILATION—GENERAL
(4) take such other action, consistent with
authority deleg ated to him by the D irector,
and consistent with the provisions of this
Act, as he may deem necessary to assist local
citizens and public officials in promptly ob-
taining assistance to which they are entitled.
EMERGENCY SUPPORT TEAMS
SEC. 202. The Director is authorized to form
emergency support teams of personnel to be
deployed in a major disaster area. Such emer-
gency support teams shall assist the Federal
coordinating officer in carrying out his re-
sponsibilities pursuant to section 201 (b) of
this Act.
COOPERATION OF FEDERAL AGENCIES
SEC. 203 (a) In any major disaster, Federal
agencies are hereby authorized, on direction
of the President, to provide assistance by—
(1) utilizing or lending, with or without
compensation therefor, to States and local
governments, their equipment, supplies, facili-
ties, personnel, and other resources, other than
the extension of credit under the authority of
any Act;
(2) distributing or rendering, through the
American National Red Cross, other relief
and disaster assistance organizations, or other-
wise, medicine, food, and other consumable
supplies, or emergency assistance;
(3) donating or lending equipment and sup-
plies determined in accordance with applicable
laws to be surplus to the needs and respon-
sibilities of the Federal Government; and
(4) performing on public or private lands
or waters any emergency "work essential for
the protection and preservation of life and
property, including—
(A) clearing and removing debris and
wreckage;
(B) making repairs to, or restoring to serv-
ice, public facilities, belonging to State or
local governments, which were damaged or
destroyed by a major disaster except that the
Federal contribution therefor shall not exceed
the net cost of restoring such facilities to
their capacity prior to such disaster.
(C) providing emergency shelter for indi-
viduals and families who, as a result of a
major disaster, require such assistance; and
(D) making contributions to State or local
governments for the purpose of carrying out
the provisions of paragraph (4).
(b) Emergency work performed under sub-
section (a) (4) of this section shall not pre-
clude Federal assistance under any other
section of this Act.
(c) Federal agencies may be reimbursed
for expenditures under section 203 (a) from
funds appropriated for the purposes of this
Act. Any funds received by Federal agencies
as reimbursement for services or supplies fur-
nished under the authority of this section shall
be deposited to the credit of the appropriation
or appropriations currently available for such
services or supplies.
(d) The Federal Government shall not be
liable for any claim based upon the exercise
or performance or the failure to exercise or
perform a discretionary function or duty on
the part of a Federal agency or an employee
of the Federal Government in carrying out
the provisions of this section.
(e) Any Federal agency designated by the
President to exercise authority under this
Act may establish such special groups, inter-
departmental or otherwise, as it deems ap-
propriate to assist in carrying out the pro-
visions of law relating to Federal disaster
preparedness and assistance, and the funds of
any such agency may be utilized for the neces-
sary expenses of any such group so established.
(f) In carrying out the purposes of this
Act, any Federal agency is authorized to ac-
cept and utilize the services or facilities of
any State or local government, or of any
agency, office, or employee thereof, with the
consent of such government. Any Federal
agency, in performing any activities under
this section, is authorized to appoint and fix
the compensation of such temporary personnel
as may be necessary, without regard to the
provisions of title 5, United States Code, gov-
erning appointments in the competitive service,
and without regard to the provisions of chap-
ter 51 and subchapter III of such title relating
to classification and General Schedule pay rates,
to employ experts and consultants in accord-
ance with the provisions of section 3109 of
such title, and to incur obligations on behalf
of the United States by contract or otherwise
for the acquisition, rental, or hire of equip-
ment, services, materials, and supplies for
shipping, drayage, travel, and communication,
and for the supervision and administration of
such activities. Such obligations, including obli-
gations arising out of the temporary employ-
ment of additional personnel, may be incurred
by an agency in such amount as may be made
available to it by the President.
(g) In the interest of providing maximum
mobilization of Federal assistance under this
Act, the President is authorized to coordinate
in such manner as he may determine the ac-
tivities of Federal agencies in providing dis-
aster assistance. The President may direct any
Federal agency to utilize its available person-
nel, equipment, supplies, facilities, and other
resources in accordance with the authority
herein contained. The President may prescribe
such rules and regulations as may be necessary
and proper to carry out any of the provisions
of this Act, and he may exercise any power
or authority conferred on him by any section
of this Act either directly or through such
Federal agency as he may designate.
(h) The President, acting through the Of-
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STATUTES AND LEGISLATIVE HISTORY
989
fice of Emergency Preparedness, shall conduct
periodic reviews (at least annually) o f th e
activities of Federal and State departments or
agencies providing disaster assistance, in order
to assure maximum coordination of such pro-
grams, and to evaluate progress being made
in the development of Federal, State, and local
preparedness to cope with major disasters.
USE OF LOCAL FIRMS AND INDIVIDUALS
SEC. 204. In the expenditure of Federal funds
for d' vis clearance, distribution of supplies,
recon0truction, and other major disaster as-
sistance activities which may be carried out
by contract with private organizations, firms,
or individuals, prefer* nee shall be given, to
the extent feasible anil practicable, to those
organizations, firms, and individuals who re-
side or do business primarily in the disaster
area.
FEDERAL GRANT-IN-AID PROGRAMS
SEC. 205. Any Federal ageny charged with
the administration of a Federal grant-in-aid
program is authorized, if so requested by the
applicant State or local authorities, to modify
or waive, for the duration of a major disaster
proclamation, such conditions for assistance
as would otherwise prevent the giving of as-
sistance under such programs if the inability
to meet such conditions is a result of the
disaster.
STATE DISASTER PLANS
SEC. 206. (a) The President is authorized
to provide assistance to the States in devel-
oping comprehensive plans and practicable
programs for preparation against major dis-
asters, and for relief and assistance for in-
dividuals, businesses, "and local governments
following such disasters. Such plans should
include long-range recovery and reconstruc-
tion assistance plans for seriously damaged or
destroyed public and private facilities.
(b) The President is authorized to make
grants of not more than $250,000 to any State,
upon application therefor, for not to exceed
50 per centum of the cost of developing such
plans and programs.
(c) Any State desiring assistance under
this section shall designate or create an
agency which is specially qualified to plan and
administer such a disaster relief program, and
shall, through such agency, submit a State
plan to the President, which shall—
(1) set forth a comprehensive and detailed
< State program for preparation against, and
relief following, a major disaster, including
provisions for emergency and long-term as-
sistance to individuals, businesses, and local
governments; and
(2) include provision for the appointment
of a State coordinating officer to act in co-
operation with the Federal coordinating offi-
cer appointed under section 201 of this Act.
(d) From time to time the Director shall
make a report to the President, for submis-
sion to the Congress, containing his recom-
mendations for programs for the Federal role
i n the implementation f-nd funding of com-
prehensive disaster relief plans, and such
other recommendations i elating to the Fed-
eral role in disaster relief activities as he
d^«ms warranted.
{e) The President is authorized to make
grants not to exceed $25,000 per annum to
any State in an amount not to exceed 50 per
centum of the cost for the purpose of im-
proving, maintaining, and updating that
State's disaster as:>i.=tance plans.
USE AND COOP' VTION OF RELIEF
ORGAN.RATIONS
SEC. 207. (a) In providing relief and as-
sistance following a major disaster, the Di-
rector may utilize, with their consent, the
personnel and facilities of the American Na-
tional Red Cross, the Salvation Army, the
Mennonite Board of Missions and Charities,
and other relief or disaster assistance orga-
nizations, in the distribution of medicine, food,
supplies, or other items, and in the restoration,
rehabilitation, or reconstruction of community
services and essential facilities whenever the
Director finds that such utilization is necessary
(b) The Director is authorized to enter into
agreements with the American National Red
Cross and other relief or disaster assistance
organizations under which the disaster relief
activities of such organizations may be coor-
dinated by the Federal coordinating officer
whenever such organizations are engaged in
providing relief during and after a major
disaster. Any such agreement shall include
provisions conditioning use of the facilities
of the Office of Emergency Preparedness and
the services of the coordinating officer upon
compliance with regulations promulgated by
the Director under sections 208 and 209 of
[p. 31059]
this Act, and such other regulations as the
Director may require.
DUPLICATION OF BENEFITS
SEC. 208. (a) The Director, in consultation
with the head of each Federal agency admin-
istering any program providing financial as-
sistance to persons, business concerns, or other
entities suffering losses as the result of a
major disaster, shall assure that r.o such per-
son, business concern, or other entity will
receive such assistance with respect to any
part of such loss as to which he has received
financial assistance under any other program.
(b) The Director shall assure that no per-
son, business concern, or other entity receives
any Federal assistance for any part of a loss
suffered as the result of a major disaster if
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990
LEGAL COMPILATION—GENERAL
such person, concern, or entity received com-
pensation from insurance or any other source
for that part of such a loss. Partial com-
pensation fo» a loss or a part of a loss re-
sulting from a major disaster will not preclude
additional Federal assistance on any part of
such a loss not compensated otherwise.
(c) Whenever the Director determines (1)
that a person, business concern, or other
entity has received assistance under this Act
for a loss and that such person, business
concern or other entity received assistance for
the same loss from another source, and (2)
that the amount received from all sources
exceeded the amount of the loss, he shall direct
such person, business concern, or other entity
to pay to the Treasury an amount, not to
exceed the amount of Federal assistance re-
ceived, sufficient to reimburse the Federal
Government for that part of the assistance
which he deems excessive.
NONDISCRIMINATION IN DISASTER ASSISTANCE
SEC. 209. (a) The Director shall issue, and
may alter and amend, such regulations as
may be necessary for the guidance of per-
sonnel carrying out emergency relief functions
at the site of a major disaster. Such regula-
tions shall include provisions for insuring that
the distribution of supplies, the processing of
applications, and other relief and assistance
activities shall be accomplished in an equitable
and impartial manner, without discrimination
on the grounds of race, color, religion, na-
tionality, sex, age, or economic status prior
to a major disaster.
(b) As a condition of participation in the
distribution of assistance or supplies under
section 207, relief organizations shall be re-
quired to comply with regulations relating to
nondiscrimination promulgated by the Di-
rector, and such other regulations applicable
to activities within a major disaster area as
he deems necessary for the effective coordina-
tion of relief efforts.
ADVISORY PERSONNEL
SEC. 210. The Director is authorized to
assign advisory personnel to the chief execu-
tive officer of any State or local government
within a major disaster area, upon request
by such officer, whenever the Director deter-
mines that such assignment is desirable in
order to insure full utilization or relief and
assistance resources and programs.
DISASTER WARNINGS
SEC. 211. The President is authorized to
utilize or to make available to Federal, State,
and local agencies the facilities of the civil
defense communications system established and
maintained pursuant to section 201 (c) of the
Federal Civil Defense Act of 1950, as amended
(50 U.S.C. app. 2281 (c», for the purpose of
providing needed warning to governmental
authorities and the civilian population in areas
endangered by imminent major disasters.
PART B—EMERGENCY RELIEF
PREDISASTER ASSISTANCE
SEC. 221. To avert or lessen the effects of a
major disaster, the President is authorized,
without declaring a major disaster, to utilize
Federal resources in providing disaster assist-
ance to any State to assist such State or any
local government thereof in circumstances
which clearly indicate the imminent occur-
rence of a major disaster.
EMERGENCY COMMUNICATIONS
SEC. 222. The Director is authorized to
establish emergency communications in any
major disaster area in order to carry out the
functions of his office, and to make such
communications available to State and local
government officials and other persons as he
deems appropriate.
EMERGENCY PUBLIC TRANSPORTATION
SEC. 223. The Director is authorized to pro-
vide public transportation service to meet
emergency needs in a major disaster area,
Such service will provide transportation to
governmental offices, supply centers, stores,
post offices, schools, major employment cen-
ters, and such other places as may be neces-
sary in order to enable the community to
resume its normal pattern of life as soon as
possible.
DEBRIS REMOVAL GRANTS
SEC. 224. The President, whenever he de-
termines it to be in the public interest, is
authorized to make grants to any State or
local government for the purpose of removing
debris on privately owned lands or waters as
a result of a major disaster, and is authorized
to make payments through such State or local
government for the removal of debris from
community areas which may include the private
property of an individual. No benefits will be
available under this section unless such State
or local government arranges unconditional
authorization for removal of debris from such
property and agrees to indemnify the Federal
Government against any claims arising from
such debris removal.
FIRE SUPPRESSION GRANTS
SEC. 225. The President is authorized to
provide assistance, including grants, to any ,
State for the suppression of any fire on pub-
licly or privately owned forest or grassland
which threatens such destruction as would
constitute a major disaster.
TEMPORARY HOUSING ASSISTANCE
SEC. 226. (a) The Director is authorized to
provide on a temporary basis, as prescribed
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STATUTES AND LEGISLATIVE HISTORY
991
in this section, dwelling accommodations for
individuals and families who, as a result of a
major disaster, are in need of assistance by
(I) using any unoccupied housing owned by
the United States under any program of the
Federal Government, (2) arranging with a
local public housing agency for using unoc-
cupied public housing units, or (3) acquiring
existing dwellings or mobile homes or other
readily fabricated dwellings, by purchase or
lease. Notwithstanding any other provision
of law, any existing dwellings, mobile homes,
or readily fabricated dwellings acquired by
pui chase may be sold directly to individuals
and families who are occupants of such tem-
porary accommodations at prices that are fair
and equitable. Any mobile home or readily
fabricated dwelling shall be placed on a site
complete with utilities provided by State or
local government, or by the owner or occupant
of the site who was displaced by the major
disaster, without charge to the United States.
However, the Director may elect to provide
other more economical and accessible sites at
Federal expense when he determines such ac-
tion to be in the public interest.
(b) After the initial ninety days of occu-
pancy without charge, rentals shall be estab-
lished for such accommodations, under such
rules and regulations as the Director may
prescribe, taking into account the financial
resources of the occupant. In case of financial
hardship, rentals may be compromised, ad-
justed, or waived for a period not to exceed
twe!ve months from the date of occupancy,
but in no case shall any such individual or
family be required to incur a monthly housing
expense (including any fixed expense relating
to the amortization of debt owing on a house
destroyed or damaged in a major disaster)
which is in excess of 25 per centum of the
monthly income of the occupant or occupants.
(c) The Director is further authorized to
provide assistance on a temporary basis in
the form of mortgage or rental payments
to or on behalf of individuals and families
who, as a result of financial hardship caused
by a major disaster, have received written
notice of dispossession or eviction from a
residence by reason of foreclosure of any
mortgage or lien, cancellation of any contract
of sale, or termination of any lease, oral or
written. Such assistance shall be provided for
a period of not to exceed one year or for the
duration of the period of financial hardship,
whichever is the lesser. The Director shall, for
the purposes of this subsection and in fur-
therance of the purpose of section 240 of this
Act, provide reemployment assistance services
to individuals who are unemployed as a result
of a major disaster.
[p. 31060]
PART D—RESTORATION OF PUBLIC FACILITIES
FEDERAL FACILITIES
SEC. 251. The President may authorize any
Federal agency to repair, reconstruct, restore,
or replace any facility owned by the United
States and under the jurisdiction of such
agency which is damaged or destroyed by any
major disaster if he determines that such
repair, reconstruction, restoration, or replace-
ment is of such importance and urgency that
it cannot reasonably be deferred pending the
enactment of specific authorizing legislation
or the making of an appropriation for such
purposes. In order to carry out the provisions
of this section, such repair, reconstruction,
restoration, or replacement may be begun
notwithstanding a lack of insufficiency of
funds appropriated for such purpose, where
such lack or insufficiency can be remedied by
the transfer, in accordance with law, of funds
appropriated for another purpose.
STATE AND LOCAL GOVERNMENT FACILITIES
SEC. 252. (a) The President is authorized
to make contributions to State or local gov-
ernments to repair, restore, reconstruct, or
replace public facilities belonging to such
State or local governments which were dam-
aged or destroyed by a major disaster, except
that the Federal contribution therefor shall
not exceed 50 per centum of the net cost of
restoring any such facility to its capacity
prior to such disaster and in conformity with
applicable codes and specifications.
(b) In the case of any such public facilities
which were in the process of construction
when damaged or destroyed by a major dis-
,ter, the Federal contribution shall not ex-
ceed 50 per centum of the net costs of re-
storing such facilities substantially to their
prior to such disaster condition and of com-
pleting construction not performed prior to
the major disaster to the extent the increase
of such cost over the original construction
cost is attributable to changed conditions re-
sulting from a major disaster.
(c) For the purposes of this section "pub-
lic facility" includes any flood control, naviga-
tion, irrigation, reclamation, public power,
sewage treatment and collection, water supply
and distribution, watershed development, or
airport facility, any non-Federal-aid street,
road, or highway, and any other essential
public facility.
PRIORITY TO CERTAIN APPLICATIONS FOR PUBLIC
FACILITY AND PUBLIC HOUSING ASSISTANCE
SEC. 253. In the processing of applications
For assistance, priority and immediate con-
sideration may be given, during such period,
not to exceed six months, as the President
shall prescribe by proclamation, to applica-
tions from public bodies situated in major
disaster areas, under the following Acts:
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992
LEGAL COMPILATION—GENERAL
(1) title II of the Housing Amendments of
1955, or any other Act providing assistance for
repair, construction, or extension of public
facilities;
(2) the United States Housing Act of 1937
for the provision of low-rent housing;
(3) section 702 of the Housing Act of 1954
for assistance in public works planning;
(4) section 702 of the Housing and Urban
Development Act of 196B providing for grants
for public facilities; or
(S) section 306 of the Consolidated Farmers
Home Administration Act.
RELOCATION ASSISTANCE
SEC. 2S4. Notwithstanding any other pro-
vision of law or regulation promulgated there-
under, no person otherwise eligible for relo-
cation assistance payments authorized under
section 114 of the Housing Act of 1949 shall
be denied such eligibility as a result of a
major disaster as determined by the President.
TITLE III—MISCELLANEOUS
TECHNICAL AMENDMENTS
SEC. 301. (a) Section 701(a) (3) (B) (ii) of
the Housing Act of 1954 (40 U.S.C. 461 (a)
(S) (B) (ii) is amended to read as follows:
"(ii) have suffered substantial damage as a
result of a major disaster as determined by
the President pursuant to the Disaster Assist-
ance Act of 1970".
(b) Section 8(b)(2) of the National Hous-
ing Act (12 U.S.C. 1706c(b)(2)) is amended
by striking out of the last proviso "section
2 (a) of the Act entitled 'An Act to authorize
Federal assistance to States and local govern-
ments in major disasters, and for other pur-
poses' (Public Law 875, Eighty-first Congress
approved September 30, 19BO)" and inserting
[p. 31062]
in lieu thereof "section 102(1) of the Disaster
Assistance Act of 1970".
(c) Section 203(h) of the National Hous-
ing Act (12 U.S.C. 1709(h)) is amended by
striking out "section 2 (a) of the Act en-
titled 'An Act to authorize Federal assist-
ance to States and local governments in major
disasters and for other purposes' (Public Law
875, Eighty-first Congress, approved September
30, 1950), as amended" and inserting in lieu
thereof "section 102(1) of the Disaster Assist-
ance Act of 1970".
(d) Section 221 (f) of the National Hous-
ing Act (12 U.S.C. 17151 (f)) is amended by
striking out of the last paragraph "the Act
entitled 'An Act to authorize Federal assist-
ance to States and local governments in major
disasters, and for other purposes', approved
September 30, 1950, as amended (42 U.S.C.
1855-1855g)" and inserting in lieu thereof
"the Disaster Assistance Act of 1970".
(e) Section 7(a) (1) (A) of the Act of Sep-
tember 30, 1950 (Public Law 874, Eighty-first
Congress, as amended; 20 U.S.C. 241-1 (a)
(1) (A) ), is amended by striking out "pur-
suant to section 2 (a) of the Act of September
30, I960 (42 U.S.C. 185B(a))" and inserting
in lieu thereof "pursuant to section 102 (1) of
the Disaster Assistance Act of 1970".
(f) Section 16 (a) of the Act of September
23, 1950 (79 Stat. 1158; 20 U.S.C. 646(a))
is amended by striking out "section 2 (a) of
the Act of September 30, I960 (42 U.S.C.
185Sa(a))" and inserting in lieu thereof "sec-
tion 102(1) of the Disaster Assistance Act
of 1970".
(g) Section 408(a) of the Higher Educa-
tion Facilities Act of 1963 (20 U.S.C. 758(a))
is amended by striking out "section 2(a) of
the Act of September 30, 1950 (42 U.S.C.
1855a(a))" and inserting in lieu thereof
"section 102(1) of the Disaster Assistance
Act of 1970".
(h) Section 16B(h)(2) of the Internal Rev-
enue Code of 1954, relating to disaster losses
(26 U.S.C. 165 (h) (2)) is amended to read
as follows:
"(2) occurring in an area subsequently de-
termined by the President of the United States
to warrant assistance by the Federal Govern-
ment under the Disaster Assistance Act of
1970,".
(i) Section 506 (a) of the Internal Revenue
Code of 19B4 (26 U.S.C. 506(a)), relating to
losses caused by disaster, is amended by strik-
ing out "the Act of September 30, 19BO (42
U.S.C. 18B5)" and inserting in lieu thereof
"the Disaster Assistance Act of 1970".
(j) Section 5708(a) of the Internal Rev-
enue Code of 1954 (26 U.S.C. B708(a)), re-
lating to losses caused by disaster, is amended
by striking out "the Act of September 30,
19BO (42 U.S.C. 185B)" and inserting in lieu
thereof "the Disaster Assistance Act of 1970".
(k) Section 3 of the Act of June 30, 1954
(68 Stat. 330; 48 U.S.C. 1681), is amended by
striking out of the last sentence "section 2
of the Act of September 30, I960 (64 Stat.
1109), as amended (42 U.S.C. 1855a)" and
inserting in lieu thereof "section 102(1) of
the Disaster Assistance Act of 1970".
(1) "Whenever reference is made in any pro-
vision of law (other than this Act), regulation,
rule, record, or document of the United States
to the Act of September 30, 1950 (64 Stat.
1109), or any provision of such Act, such
reference shall be deemed to be a reference
to the Disaster Assistance Act of 1970 or to
the appropriate provision of the Disaster
Assistance Act of 1970 unless no such provision
is included therein.
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STATUTES AND LEGISLATIVE HISTORY
993
REPEAL OF EXISTING LAW
SEC. 302. The following Acts are hereby
repealed:
(1) the Act of September 30, 1950 (64 Stat.
1109);
(2) the Disaster Relief Act of 1966, except
section 7 (80 Stat. 1316); and
(3) the Disaster Relief Act of 1969 (83 Stat.
125).
AUTHORIZATION OF APPROPRIATIONS
SEC. 303. Except as provided otherwise in
this Act, there are hereby authorized to be
appropriated such sums as may be necessary
to carry out the provisions of this Act.
EFFECTIVE DATE
SEC. 304. This Act shall take effect imme-
diately upon its enactment, except that sec-
tions 226 (c), 237, 241, 252 (a), and 254 shall
take effect as of August 1, 1969, and sections
231, 232, and 233 shall take effect as of
April 1, 1970.
[p. 31063]
1.8a(4) (b) Oct. 5: Debated, amended, and passed House, pp. 34795-
34798
Mr. JOHNSON of California. Mr.
Speaker, one of the strengths of this
great Nation of ours has been the
willingness of individuals to extend a
helping hand to their neighbors in
times of difficulty and emergency. In
a complex 20th century such as we
now live the need to help thy neigh-
bor is no less than it was in the early
days of this country. However, the
means of achieving it are far more
complex. The disaster relief legisla-
tion which has been on the books the
last 20 years provides an opportunity
to all the people of this Nation to
assist their neighbors in all areas of
the country to overcome and rebuild
in the wake of natural disasters.
Since I have been a Member of
Congress, we have had several major
disasters—the Alaskan earthquake,
the Christmas 1964 storms and floods
in California and the Pacific North-
west, the Palm Sunday 1965 tornadoes
which caused so much havoc in Illi-
nois, Michigan, and Indiana, Hurri-
cane Betsy, the California storms of
January and February 1969, and the
great grandmother of all hurricanes,
Camille, which caused so much devas-
tation throughout the Southern States
and whose aftermath hit as far north
as Virginia. And, as we meet here
today, firefighters in California are
cleaning up after one of the worst
forest and brush fire disasters my
State has ever experienced. In the
past few days substantially more than
300,000 acres of land have been black-
ened, 500 homes have been burned to
the ground, eight people have been
killed, and more than 200 injured.
Damage totals reach the hundreds of
millions. Although accurate estimates
of the loss cannot be made as yet, it
is certain to exceed the 1969 storm
totals which amounted to something
more than $110 million.
The examples I have cited are the
major storms and disasters which we
have experienced, but there have been
hundreds of other lesser disasters in
which the resources of the Federal
Government were required to help the
people recover from brutal treatment
on the part of nature. I should say
these were lesser storms and disas-
ters only in terms of scope and geog-
raphy. For those people hurt or killed
and for those whose homes and prop-
erty were destroyed, there was no
greater disaster than some of these.
During the 20 years since Public Law
81-875, which is our basic disaster
legislation, was enacted in 1950, the
President has declared disaster emer-
gencies and ordered mobilization of
Federal relief agencies 280 times, an
average of 14 times a year. During
the last 5 years, there have been 100
of these disasters, an average of 20
a year. In 1969 we witnessed one of
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994
LEGAL COMPILATION—GENERAL
the worst years in history with 20
disasters including, of course, the
storms of California which claimed
some 100 lives and Hurricane Camille
which cost us 262 lives and $1.5
billion in damage.
I would like to interject here, Mr.
Speaker, a comment concerning the
nature of disasters which I believe
points up the need for streamlining
[p. 34795]
our legislative authority for Federal
assistance in these hours of need. At
the turn of the century, the Galveston
flood caused about $30 million worth
of damage; however, 6,000 lives were
lost. Compare this with Hurricane
Camille in which $1.5 billion in dam-
age was caused, but the death toll
stood at 262. While one disaster death
is one too many, I think this shows we
are making great progress in the dis-
aster forecasting and early warning
alerts to give people an opportunity
to seek adequate protection for their
lives. It also points up the fact that as
we build our cities, with more and
more homes, public buildings, schools
and other structures crowded closer
and closer together, storms will take
an increasingly higher toll in property
damage. As property damage mounts,
the ability of individuals, local and
State governments to cope with re-
construction costs is reduced. Federal
disaster legislation must reflect this
change.
The Public Works Committee under
the distinguished leadership of the
gentleman from Maryland, Represen-
tative GEORGE FALLON, and with the
farsighted guidance of the Flood
Control Subcommittee chairman, the
gentleman from Alabama (ROBERT
JONES), has performed a great and
humanitarian role over the years in
providing Federal disaster assistance
tailored to fit individual disaster situ-
ations.
As you will recall, the Alaskan
earthquake, the Pacific Northwest dis-
aster of 1965, Hurricane Betsy, all
required special legislation to meet
the problems in those devastated
areas. None was permanent legisla-
tion, but through the legislative his-
tory and the administration of these
bills, we built a tremendous store of
knowledge concerning the needs for
disaster relief.
In the 1969 act, the scope of the
legislation was made general, broad-
ened and refined. We had a good bill.
Operations in the California storms
and Hurricane Camille and other dis-
aster situations which we have ex-
perienced throughout 1969 and this
year prove this. And the legislation,
I am pleased to report, will be of
tremendous value to the people of
California in the wake of the fire
disaster.
However, most provisions of the
1969 act will expire at the end of this
calendar year. It is time that we make
permanent those provisions which
have proven valuable and at the same
time strengthen and refine them. It
is with this in mind that I introduce
H.R. 18608, the Federal Disaster As-
sistance Act of 1970, which I believe
reflects not only the best of the rec-
ommendations proposed by the admin-
istration, but also the experience the
Congress has had in disaster relief. I
am pleased that most of the provisions
of my proposal are incorporated in S.
3619 which we have before us today.
I must also say the Public Works
Committee, drawing upon its great
experience and knowledge of disaster
situations, has refined and expanded
my original proposal.
The result is, I am convinced, a
fine bill which is worthy of approval
today by the House of Representa-
tives. A brief summary of the pro-
posal follows:
Section 2 titles the proposal the
Federal Disaster Assistance Act of
1970.
Section 2 strengthens and broadens
Public Law 81-875, the basic disaster
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STATUTES AND LEGISLATIVE HISTORY
995
assistance program first enacted in
1950, to make it more responsive to
the needs of the decade of the 1970's.
Basically this is accomplished through
a more realistic definition of "public
facilities" which can be rehabilitated
and repaired under the provisions of
this act, making is possible for the
Federal Government to assist in the
restoration of all public facilities.
Second, this section provides for
permanent restoration of facilities
under the provisions of Public Law
81-875. You will recall that initially
the 1950 Disaster Act permitted only
temporary replacements, which proved
inadequate. The 1969 Disaster Act
broke new ground in this area by
providing that permanent restoration
could be achieved on streets, roads,
and highways. This has worked very
well and proved most beneficial.
Therefore, this legislation as drafted
would extend this to all programs
covered under Public Law 81-875.
Protections are incorporated to pre-
vent local government from obtaining
a windfall by which the Federal Gov-
ernment would be financing expansion
of facilities.
Section 2 also provides for tem-
porary emergency housing and shelter,
including the leasing of mobile homes,
the need for which has been demon-
strated in past disasters. It goes one
step further than the 1969 act did in
that it provides for no rentals to be
charged for these emergency accom-
modations during the first 12 months.
This may sound extremely generous,
but the experience has been that with
the head of the family out of work
because of the disaster, his income
has stopped and he is trying to keep
his family alive on food stamps. Sec-
ond, the administrative cost of col-
lecting rents far exceeds the rents
collected and, therefore, the net re-
turn is negligible. We do include a
provision which requires the institu-
tion of rental charges after the first
year just so that the disaster-stricken
individual will learn to get back on
his own feet and not make a habit
of living in rent-free accommodations.
This is rehabilitation legislation—not
welfare legislation.
Section S of H. R. 18608 refines,
strengthens and makes permanent
many of the provisions of the Disaster
Relief Act of 1969.
Touching first of all on the disaster
relief program of the Small Business
Administration and the Farmers
Home Administration, it has been dis-
covered over the years that the 3-
percent disaster loan authorized for
the Small Business Administration has
not been available to the extent that
it should be. We tried to make this
mandatory by legislation, but actually
it was an executive decision. The lan-
guage we have before us today is more
realistic. It provides that loans will be
made without regard to whether pri-
vate sources are available for such
loans and the interest rate shall be
1 percent less than the average which
the Treasury is paying for its out-
standing marketable obligations with
periods of maturity to 10 to 12 years.
In no event shall any loan be made
in excess of 6 percent. At the present
time this would mean that the emer-
gency disaster loans in these two pro-
grams—SBA and FHA—would be
made at something less than 6 percent,
which I believe is a realistic figure.
Along with the increased interest rate,
we have also increased the forgive-
ness, which follows a pattern first
established for Hurricane Betsy. We
propose to increase the maximum for-
giveness to $2,500. We also specify
that a loan under this section shall
not be denied on the basis of the age
of the applicant.
Section 3 also deals with the prob-
lem of clearance of debris and wreck-
age from publicly and privately owned
lands and waters. The 1969 act au-
thorized the State and local govern-
ments to assist in removing this type
of debris. S. 3619 provides that the
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996
LEGAL COMPILATION—GENERAL
Federal departments and agencies also
may do this. We found that last year
on many occasions it would be most
expeditious for the Federal agencies
on the scene to take care of this rather
than waiting for the State or local
government equipment and/or per-
sonnel, which often were overextended.
In each instance, however, we have
specified that the State or local gov-
ernments affected must arrange for
permission to remove the debris or
wreckage from the public or private
property involved and also shall in-
demnify the Federal Government
against any claims arising from such
removal.
Section 3 of this bill also would
make permanent several provisions of
the 1969 act which otherwise would
expire on December 31, 1970. This
includes: First, the Small Business
and Farmers Home Administration
programs which I mentioned above;
second, authority to expedite timber
sales in areas of heavy loss to salvage
downed timber and also to rebuild
the lumber-based economies; third,
assistance in reconstruction of timber
sale roads; fourth, special unemploy-
ment compensation to those individ-
uals jobless as a result of the major
disaster; fifth, extension of emer-
gency food stamp provisions to those
disaster victims. In other words, we
are making permanent all the better
provisions of the 1969 act, which I
feel was an outstanding piece of
legislation.
Section 4 provides that no person
eligible for relocation assistance under
urban renewal programs of the De-
partment of Housing and Urban De-
velopment shall be denied this as a
result of a disaster.
Section 5 is a new approach but is
one that is needed desperately. This
provides assistance to local govern-
ments where property tax revenues
have decreased dramatically due to a
disaster. When a man's house is wiped
out, you obviously cannot tax it. Hur-
ricane Camille experience was such
that many local governmental agen-
cies bordered on bankruptcy because
of the substantial loss of tax base. It
is proposed that Federal grants be
made to help finance local govern-
ment during the 2 years immediately
after a disaster. The amount of the
grant would be based on the average
[p. 34796]
of the property tax revenues received
by the local government during the
3-tax-year periods preceding the dis-
aster. The provisions state quite
clearly that local government cannot
reduce its rates in order to take ad-
vantage of this.
Section 6 provides the President
with authority to mobilize Federal
departments and agencies before a
disaster strikes. This means that when
a major disaster appears imminent,
and we certainly are getting more
and more advance warning due to our
better weather forecasting provisions,
the President may put to work the
full resources of the Federal Govern-
ment before the disaster strikes to
avert or lessen the effects of such a
disaster. This is the old philosophy
that an ounce of prevention is worth
far more than a pound of cure.
Section 7 directs the Office of Emer-
gency Preparedness to conduct a 1-
year study to determine additional
ways to prevent or lessen property
losses and personal injuries and deaths
from forest fires, earthquakes, torna-
does, freezes and frosts, tsunami,
storms, tides and floods which are or
threaten to become major disasters.
Section 8 incorporates in the new
legislation some of the definitions and
provisions of the 20-year-old-Public
Law 81-875, including such things as
authorization for Federal agencies to
accept and utilize local services and
facilities of State and local govern-
ments, extension of liberalized Fed-
eral employment and contracting
practices, and reimbursement from
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STATUTES AND LEGISLATIVE HISTORY
997
disaster funds of expenditures by Fed-
eral agencies.
Section 9 extends the earlier au-
thority of the President to utilize
resources of all Federal departments
and agencies in a disaster.
Section 10 authorizes the sale to
disaster victims at fair and equitable
prices the mobile homes or other emer-
gency housing they may be occupying.
Section 11 provides a program of
mortgage assistance to families being
evicted because of disaster caused
financial hardships.
Section 12 makes the provisions of
the act available to victims of any
disaster which has occurred since
December 1, 1968.
Mr. Speaker, this is an outline of
the provisions of the legislation which
I put before you. In conclusion, I do
want to say it reflects the best of what
Congress has done through past lead-
ership in meeting the needs of our
people in our local communities, in-
cluding their State and local govern-
ments, in disaster situations. I think
that it is a realistic bill and one
which is truly in the American tradi-
tion of extending a helping hand to a
neighbor in a time of trouble. May I
again congratulate the Public Works
Committee and its chairman for the
work which they have done over the
last 10 to 12 years in providing this
type of assistance. Many a community
would still be in ruins today if it had
not been for the hard work, diligence,
and wisdom of this committee and the
Congress in providing the means
whereby a stricken community could
mop up, rebuild, and get back on its
economic feet.
I urge my colleagues in the House
of Representatives to continue this
effort through enacment of S. 3619
today.
Mr. FALLON. Mr. Speaker, I rise
in support of S. 3619, the Disaster
Relief Act of 1970. At the outset may
I commend the chairman of the Sub-
committee on Flood Control, my good
friend, the gentleman from Alabama
(Mr. JONES), the ranking minority
member of that subcommittee, the
gentleman from California (Mr. DON
CLAUSEN) and all the members of the
subcommittee for the fine work they
have done on this needed legislation.
The Committee on Public Works
has moved expeditiously and rapidly
through the years responding to dis-
asters of all types which have stricken
all sections of the country. On numer-
ous occasions we have sent subcom-
mittees to these areas to obtain first
hand information on the disaster and
to meet with our fellow citizens who
have been afflicted by these disasters.
In addition, we have enacted legis-
lation over the years to help in these
areas which can be seen from the acts
of 1966 and 1969.
We have come to the conclusion in
the committee that there is need for
permanent legislation to embody into
law those many sections of legisla-
tion we have passed in the past to
help stricken areas which have proved
so helpful in relieving the stricken
area. The legislation before us makes
permanent many of these needed sec-
tions so that immediately upon the
declaration for Federal assistance
under this legislation there will be
available under the bill needed assist-
ance provided at once. I think this
bill is needed and I support it.
Mr. PICKLE. Mr. Speaker, since
the beginning of this year, I have
witnessed four major disasters in my
own State, one of them—the floods
at San Marcos—directly in my con-
gressional district. Needless to say,
we still have a long way to go to
recover from these catastrophes, and
many other States face similar situa-
tions.
As it is now proposed, S. 3619 not
only improves our ability to recover
from future natural disasters, but will
greatly aid us in our continued efforts
to recover from those disasters in our
recent past. This legislation widens
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998
LEGAL COMPILATION—GENERAL
the aid offered to State and local gov-
ernments to assist in their own re-
covery and to replace destroyed public
facilities. It helps those who stand to
lose their' homes because their jobs
were destroyed in the disaster.
And in a key provision, this bill
takes into account our rising con-
struction costs and property values
by raising the amount of a disaster
loan which may be canceled and by
making this provision retroactive.
This latter provision applies to loans
administered in disasters declared by
the President, by the Farmers Home
Administration, or by the Small Busi-
ness Administration. It will be a cru-
cial factor in helping many home-
owners and businessmen to recover. It
is particularly the case where our low-
income and middle-income homeowners
and businessmen are concerned.
The previous law allowed loan can-
cellations of up to $1,800 on loans
over $500 at 3 percent. This new leg-
islation proposes upping the amount
eligible for cancellation to $2,500 at
no more than 6 percent and makes
this provision retroactive to Decem-
ber 1, 1968. The borrower is allowed
to choose between the old and new
rates, depending on which will be
best for his individual needs. Although
the interest rate is raised, the overall
benefit will still weigh heavily with
the borrower. And although this pro-
vision will create some additional work
for the agencies lending the money, I
do not think the additional trouble
will be nearly enough to offset the
good of this provision.
My colleague from Texas, Senator
YARBOROUGH, led the battle for ini-
tiating the retroactive character of
this provision on the Senate side. The
Senate version of the disaster bill
makes the loan cancellation provision
retroactive to April 1, 1970. I am
pleased to see that the House has
picked up the ball and increased the
number of disaster areas that would
be included in this retroactive pro-
vision.
In summary, I would say that this
is not only an important bill, it is a
sound and balanced bill. I urge your
support of this excellent piece of
legislation.
Mr. BELL of California. Mr. Speak-
er, I join my colleagues today in sup-
port of S. 3619, legislation which will
revise and expand Federal programs
to deal with disasters such as the re-
cent tragic forest and brush fires in
the State of California.
These most disastrous fires in the
history of the State of California
cost 14 lives and over $200 million in
damage.
About 800 homes were destroyed.
Over 1,200 other structures, including
four houses of worship, were deci-
mated. Fourteen people were killed,
and over 350 were injured. Thousands
were forced to leave their homes to
escape the blazes.
The California Disaster Office esti-
mated private property loss at over
$154 million and public damage of
at least $11 million.
The fires were fanned by violent
winds, and they cut a path nearly
40 miles long from Newhall in the San
Fernando Valley through Malibu and
Topanga Canyons down to the sea.
The magnitude of human suffering
as a result of these disasters is un-
measurable.
Our firemen—over 2,000 of them—
demonstrated magnificent courage.
Working hour after hour with no
sleep, firefighters battled the intense
heat to save untold numbers of lives,
homes, and valuable acreage.
The magnitude of these disasters
calls for swift, efficient, and compre-
hensive action by the Federal Gov-
ernment to assist local and State
efforts to remedy the effects of this
holocaust. The legislation which I
am supporting today would extend
coverage offered by the Federal Gov-
ernment so that homes, businesses,
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STATUTES AND LEGISLATIVE HISTORY
999
highways, and other property damage
and losses can be compensated.
This legislation provides for the
temporary housing of disaster vic-
tims and authorizes the President to
provide financial assistance in the
form of mortgage or rental payments
to individuals or families who have
[p. 34797]
suffered financial disaster caused by
a major disaster.
It provides for relocation assistance
payments and for the removal of de-
bris from lands and waters with the
aid of Federal agencies. Grants would
be made to local governments to com-
pensate for substantial loss of prop-
erty tax revenues.
Finally, the act provides for studies
by the Office of Emergency Prepared-
ness to determine what plans, proce-
dures, and facilities are needed to
help prevent a recurrence of such a
disaster.
Hopefully, the relief provided by
this legislation will alleviate a portion
of the enormity of suffering occa-
sioned by the most disastrous fires in
the history of the State of California.
Mr. ANDERSON of California. Mr.
Speaker, I rise in support of S. 3619,
a bill to revise and expand Federal
programs for relief from the effects
on major disasters.
My home State of California has
been particularly hard hit by natural
disasters over the last 2 years. In
January 1969, heavy rain storms
brought flooding and mudslides in
their wake. Roads, bridges, dikes, and
levees were destroyed. Residents were
forced to move from their homes. On
January 26, 1969, 37 of California's
58 counties were declared disaster
areas. More recently, fires have
wreaked havoc on major portions of
California.
I am particularly pleased to be a
member of the Public Works Com-
mittee which has primary responsi-
bility for initiating legislation to aid
those who have suffered from natural
disasters, and to attempt to reduce
the impact of disasters in the future.
Last year, our committee initiated
the National Disaster Relief Act of
1969 primarily to relieve those com-
munities which were hit in California
by floods and to aid the victims of
Hurricane Camille.
Due to this legislation and other
action, California was the recipient
of over $111 million in the form of
Federal disaster assistance.
Mr. Speaker, while one disaster
death is one too many, I feel that our
efforts over the years to protect lives
have been successful and the legisla-
tion should be extended and broad-
ened. For example, at the turn of the
century, the Galveston flood caused
about $30 million worth of damage;
however, 6,000 lives were lost. Com-
pare this with Hurricane Camille in
which $1.5 billion in damage was
caused, but the death toll stood at
258. In addition, experts have esti-
mated that $3 in losses have been
prevented for $1 invested in flood
control structures.
Mr. Chairman, the act before us
(S. 3619) is a progressive step. Sec-
tion 2 extends the scope of Federal
aid to permit making permanent re-
pairs and replacements of public fa-
cilities. The Federal contribution
would be limited to the cost of restor-
ing1 the facility using the basis of
design of that facility as it existed
immediately prior to the disaster.
Section 5 is designed to aid those
communities which have lost property
tax revenue when a substantial por-
tion of a community's property tax
base is destroyed by a natural dis-
aster. Under this section, the Presi-
dent is authorized to make grants to
any local government which, as a
result of a major disaster, has suf-
fered a substantial loss of both real
and personal property tax revenue.
Last year, I introduced H.R. 14781
which would provide earthquake and
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1000
LEGAL COMPILATION—GENERAL
earthslide insurance under the Hous-
ing and Urban Development flood in-
surance program. In order to imple-
ment this program, the Department
of Housing and Urban Development
feels that more knowledge and ex-
perience is needed in order to estab-
lish an actuarial insurance rate for
earthslides and earthquakes.
Under section 7 of the Disaster
Relief Act of 1970, the Director of
the Office of Emergency Preparedness
is directed to study ways to provide
effective action to prevent or lessen
losses of property and personal in-
jury or deaths which could result
from earthquakes, tsunami, storm
surges and tides, and floods. This re-
port should aid the Federal Insurance
Administrator in making determina-
tions for extending the present flood
insurance program to other areas.
Again, Mr. Speaker, I commend you
for your action in this field, and
heartily endorse S. 3619, the Disaster
Relief Act of 1970.
The SPEAKER. The question is on
the motion offered by the gentleman
from Alabama (Mr. JONES) that the
House suspend the rules and pass the
bill S. 3619, as amended.
The question was taken; and (two-
thirds having voted in favor thereof)
the rules were suspended and the bill,
as amended, was passed.
A motion to reconsider was laid on
the table.
[p. 34798]
1.8a(4)(c) Dec. 15, 17: House debated and agrees to conference
report, pp. 42212-42214
CONFERENCE REPORT ON S.
3619, DISASTER RELIEF ACT
OF 1970
Mr. JONES of Alabama. Mr.
Speaker, I call up the conference re-
port on the bill (S. 3619) to revise
and expand Federal programs for the
relief of the effects of major disasters,
and for other purposes, and ask unani-
mous consent that the statement of
the managers on the part of the House
be read in lieu of the report.
The Clerk read the title of the bill.
The SPEAKER. Is there objection
to the request of the gentleman from
Alabama?
Mr. GROSS. Mr. Speaker, reserving
the right to object, the gentleman does
intend to take some time to explain
what transpired at the conference;
does he not?
Mr. JONES of Alabama. Yes. I will
be glad to accommodate the gentle-
man from Iowa. The gentleman from
California (Mr. DON H. CLAUSEN)
and I will be available for answers
to any questions.
Mr. GROSS. Mr. Speaker, I with-
draw my reservation of objection.
The SPEAKER. Is there objection
to the request of the gentleman from
Alabama?
There was no objection.
The Clerk read the statement.
(For conference report and state-
ment, see proceedings of the House of
December 15, 1970).
(Mr. JONES of Alabama asked and
was given permission to revise and
extend his remarks.)
Mr. JONES of Alabama. Mr.
Speaker, S. 3619, which we now bring
back from conference for approval
of this House is one of the finest ex-
amples of complete cooperation be-
tween this body and the Senate. The
Senate approach in dealing with the
need for disaster relief assistance was
to repeal all existing major substan-
tive provisions dealing with this sub-
ject and replace them with one basic
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STATUTES AND LEGISLATIVE HISTORY
1001
law. The House of Representatives
approach was simply to amend the
basic laws and to add several new
badly needed provisions. During the
conference with the Senate it became
obvious that we were to a great extent
attempting to reach the same end re-
sult by differing means.
The conferees unanimously agreed
to consolidate into one act the numer-
ous provisions of the law which pres-
ently exist in the basic 1950 act,
Public Law 875, 81st Congress; the
1966 Disaster Relief Act, Public Law
89-769; and the Disaster Relief Act
of 1969, Public Law 91-79. This con-
solidation and broadening of the law
takes into consideration the experience
gained by the Congress and the Fed-
eral and State Governments from the
numerous disasters which have oc-
curred over the years. I am pleased to
state that the House position, in the
few occasions that it differed on sub-
stantive matters with that of the
Senate, was generally concurred in
by the other body.
The conference report generally re-
tains the House position on making
repairs to, restoring to service, or
replacing public facilities of State and
local governments damaged or de-
stroyed by a major disaster with
the stipulations that the Federal con-
tribution will not exceed the net cost
of restoring the facilities on the basis
of the design of the facility as it
existed immediately before the dis-
aster and the restoration would be in
conformity with current codes, speci-
fications, and standards.
The House version of S. 3619 au-
thorized the use of Federal agencies
to clear debris from publicly and pri-
vately owned lands and waters, when
determined to be in the public inter-
est. Authorization was also provided
for grants to any State for similar
[p. 42212]
debris clearance. A requirement was
imposed that State and local govern-
ments must arrange to provide un-
conditional authorizations for the re-
moval of such debris and that the
Federal Government be indemnified
against claims arising from such re-
moval. The conference report includes
this provision.
With respect to temporary housing
assistance, the conference report in-
cludes a provision which would au-
thorize the Director to provide tem-
porary housing or other emergency
shelter, including mobile homes, for
those who as a result of a major
disaster require temporary housing
or other emergency shelter. For the
first 12 months of occupancy, no rental
shall be established. Thereafter, rent-
als will be based on fair market value
of the accommodations being fur-
nished, adjusted to take into consid-
eration financial ability of the occu-
pant. Emergency housing which is
acquired by purchase may be sold
directly to the occupants at prices
that are fair and equitable. Any
mobile home or readily fabricated
dwelling is to be placed on a site
complete with utilities provided by
State or local government or by the
owner or occupant of the site without
charge to the United States. The Di-
rector may elect to provide other more
economical and accessible sites at Fed-
eral expense if he determines it to
be in the public interest. Further, the
President is authorized to provide as-
sistance on a temporary basis in the
form of mortgage or rental payments
in the same manner as is provided in
the House amendment. The President
is authorized for the purposes of this
provision and in furtherance of the
purposes of section 240 of this act to
provide reemployment assistance serv-
ices under other laws to individuals
who are unemployed as a result of a
major disaster.
The conference report provides that
in the administration of the disaster
loan program under section 7 (b) (1),
(2), and (4) of the Small Business
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1002
LEGAL COMPILATION—GENERAL
Act in the case of property loss or
damage or injury resulting from a
major disaster as determined by the
President or a disaster determined by
the Small Business Administrator,
such Administrator:
First, to the extent the loss, damage,
or injury is not compensated for by
insurance or otherwise shall on that
part of the loan in excess of $500
cancel the principal, except that the
total amount so canceled is not to be
more than $2,500. This clause, how-
ever, is to apply only to loans made to
cover losses, damages, and injuries
resulting from major disasters deter-
mined by the President, and may defer
interest or principal payments or both
in whole or in part during the first
3 years of the term of the loan, these
deferred payments, however, are to
bear interest at the rate determined
under section 234 of the act.
Second, to the extent it is not com-
pensated for by insurance or other-
wise, may grant any loan to repair,
rehabilitate, or replace property dam-
aged or destroyed, whether or not
financial assistance is otherwise avail-
able from private sources;
Third, may, in the case of total de-
struction or substantial damage of a
home or business concern, refinance
mortgages or other liens outstanding
against that property if it is to be
restored, rehabilitated, or replaced
with the limitation that the amount
refinanced is not to exceed the amount
of the physical loss sustained and that
this refinancing is to be subject to the
provisions of caluses (1) and (2) of
this section.
Similar provisions in the case of the
Farmers Home Administration emer-
gency loans were provided in the con-
ference report as were included in the
case of Small Business Administration
loans.
The conferees agreed essentially
with the other House provisions re-
lating to the disaster loan programs
to the effect that a loan made under
those provisions is not to exceed the
current cost of repairing and replac-
ing the disaster injury, loss, or dam-
age in conformity with current codes
and specifications. Any such loan is
to bear interest at a rate determined
by the Secretary of the Treasury,
taking into consideration the current
average market yield on outstanding
marketable obligations of the United
States with remaining periods to ma-
turity of 10 to 12 years reduced by
not to exceed 2 percent per annum
but in no event is any such loan to
bear interest at a rate in excess of
6 percent per annum.
I might point out that the House
version of S. 3619 included a 1-per-
cent reduction and not the 2 percent
agreed upon—but in light of the 6-
percent maximum and the present
interest rate, this difference is im-
material.
One other provision I would partic-
ularly npte involves assistance to
communities for tax losses. Here
again the House position prevailed.
This section would authorize the Pres-
ident to make grants to any local
government, which, as a result of a
major disaster has suffered a sub-
stantial loss of property tax revenue—
both real and personal. The limita-
tions placed upon these grants are:
First, they may only be made for the
tax year in which disaster occurred
and for each of the following 2 tax
years; second, the grant shall not
exceed the difference between the an-
nual average of all property tax rev-
enues received during the 3-tax-year
period immediately preceding the tax
year in which the major disaster
occurred and the actual property tax
revenue received for the tax year in
which the disaster occurred and for
each of the 2 succeeding tax years;
and, third, there must be no reduction
in tax rates and tax assessment evalu-
ation factors of the local government.
If, however, there has been such a
reduction, a grant may still be made
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STATUTES AND LEGISLATIVE HISTORY
1003
for the year or years when such re-
duction is in effect, but, the President
shall use the tax rates and tax as-
sessment factors in effect at the time
of the disaster without reduction in
order to determine revenues which
would have been received. These rev-
enues will then be used in calculating
the difference as the basis of deter-
mining the grant instead of the actual
revenues.
I believe that this may well be one
of the most meaningful new provi-
sions in disaster relief assistance leg-
islation.
Mr. Speaker, this is without ques-
tion one of the finest conference re-
ports I have had the privilege of
bringing to this floor of the House.
The conferees from both Houses came
together to reconcile our differences
so as to bring back to our colleagues
meaningful legislation. This we have
accomplished.
I would like to conclude my remarks
by thanking all the members of the
conference on both sides of the aisle
for their outstanding work on this
important piece of legislation, this
includes the gentleman from Cali-
fornia (Mr. JOHNSON), the gentleman
from Texas (Mr. WRIGHT), the rank-
ing minority member of the Subcom-
mittee on Flood Control, the gentle-
man from California (Mr. DON H.
CLAUSEN), and the gentleman from
Iowa (Mr. SCHWENGEL). I would also
commend the staff of the House com-
mittee for their fine work in the prep-
aration of the material that went into
the report, and in particular Mr.
Lester Edelman, the committee coun-
sel for his diligence, devotion, and
hard work on the entire bill through
the House and conference report.
Mr. GROSS. Mr. Speaker, will the
gentleman yield?
Mr. JONES of Alabama. I yield to
the gentleman from Iowa.
Mr. GROSS. I thank the gentleman.
What is the standard for deter-
mining "low-income individuals," who
would qualify for free legal assist-
ance? What is a low-income indi-
vidual?
Mr. JONES of Alabama. Well, that
has various meanings. Under the
Farmers Home Administration they
have their own criteria, the Small
Business Administration has its cri-
teria as well as other agencies of the
Government. However, we bring into
play all of the agencies connected
with the Federal Government which
may be able to give relief under their
various acts. Therefore, this evalua-
tion is made by the agency itself—
and we do not seek to establish any
certain amount for indigents or people
who are not capable of taking care
of their own needs—
Mr. GROSS. So, what constitutes
a low-income individual c^uld be sub-
ject to a number o* srpret^ions?
Mr. JONES G- Alabama. Yes.
Mr. GROSS. Depending upon che
agency of the Government which
would make the determination?
Mr. JONES of Alabama. The gen-
tleman from Iowa is entirely correct.
Mr. DON H. CLAUSEN. Mr.
Speaker, will the gentleman yield?
Mr. JONES of Alabama. I yield to
the gentleman from California.
Mr. DON H. CLAUSEN. Mr.
Speaker, in further response to the
gentleman from Iowa (Mr. GROSS),
I will say to the gentleman that in
this type of relief we are dealing with
individuals in the private sector and
as a result of established procedure
their particular situation will be eval-
uated on an individual basis by the
loaning agencies and in some cases,
for instance, by the Red Cross, the
Salvation Army, and other organiza-
tions, representatives of which will
actually sit down with that person
and find out what their situation was
at the time of the disaster and then
make a determination as to whether
or not there is a need for assistance.
-------
1004
LEGAL COMPILATION—GENERAL
Mr. SPEAKER. The conference re-
port before the House today on S.
3619, the Disaster Relief Act of 1970,
reflects certain changes in approach
that the conference committee adopted
in the interest of simplifying the law.
Simply put, the proposed legislation
substitutes an entire new act for dis-
aster relief legislation. Members of
the House will recall that the bill, as
it passed the House, was essentially
an amendment or rather a series of
amendments of existing disaster relief
[p. 42213]
acts. The other body chose to relate
the acts that were in existence by the
new act in which virtually the entire
act of disaster relief law would be in-
cluded.
Naturally, this approach required us
to repeat those portions of existing
law which we wish to preserve. Other-
wise, such things would have been re-
pealed that were not intended to be
repealed. Thus, Members, in reading
the conference report, will find much
material that was not in the House
bill but was in the existing law.
Once the decision was made to adopt
the approach of a new statute, much
of the language that appeared in the
Senate bill was acceptable to the con-
ference members. Those provisions,
which the managers, on the part of
the House, felt should be included as
representative of the position of the
House, were included. For example,
section 203, concerning emergency and
permanent repair or replacement of
public facilities of State and local gov-
ernments when those facilities were
damaged as a result of a major disas-
ter, contains the essential portions of
the House position drafted into the
language of a new act. Those provi-
sions concerning predisaster assist-
ance, which I personally consider so
important, and which authorize the
President to take effective action to
divert or lessen the effects of a catas-
trophe which threatens to become a
major disaster, have been retained.
The provisions in the House bill per-
taining to debris removal are in the
present substitute.
The area of temporary housing as-
sistance, the Director of the Office of
Emergency Preparedness is author-
ized to provide temporary housing for
12 months without rental. Following
that, rentals would be based on fair
market value of accommodations being
furnished, adjusting to take into con-
sideration financial ability of the occu-
pant. Emergency housing, acquired by
purchase, may be sold directly to the
occupant at prices that are fair and
equitable. Provision is made for utili-
ties provided by State or local gov-
ernments. Assistance in the form of
mortgage or rental payments is re-
tained in the same manner as in the
House bill.
In essence, this section combines the
features of both the House and Senate
bill and retains the basic intent of the
House provision. The all-important
loan provisions that appeared in the
House version have been retained with
minor variations in the case of loans
resulting from major disasters.
This legislation, in my opinion, ac-
complishes all the purposes of the
House passed bill with the additional
advantage of making the law simpler
to understand and easier to codify. I,
therefore, recommend the acceptance
by this House of the conference report
to the Members of this body.
(Mr. DON H. CLAUSEN asked
and was given permission to revise
and extend his remarks.)
Mr. JONES of Alabama. Mr.
Speaker, I call the previous question
on the conference report.
The previous question was ordered.
The conference report was agreed
to.
[p. 42214]
-------
STATUTES AND LEGISLATIVE HISTORY 1005
1.8a(4)(d) Dec. 18: Senate agrees to conference report, p. 42369
[No Relevant Discussion on Pertinent Section]
1.8a(5) STATEMENT BY THE PRESIDENT UPON SIGNING
THE BILL INTO LAW
December 31,1970, Weekly Compilation of Presidential Documents, Vol. 7,
No. 1, January 4, 1971
DISASTER RELIEF ACT OF 1970
Statement by the President Upon Signing the Bill Into
Law, December 31, 1970
I have today signed S. 3619, the "Disaster Relief Act of 1970."
This bill establishes a permanent, comprehensive program to
extend emergency relief and necessary assistance to individuals,
organizations, businesses, and States and local communities suf-
fering from major disasters. It also strengthens the administra-
tion and coordination of Federal disaster assistance efforts.
On April 22, 1970, I sent a message to the Congress outlining
this administration's proposals for improving the assistance which
the Federal Government can provide in time of major disasters.
My recommendations included:
—a property tax revenue maintenance plan for local communi-
ties whose tax bases have been partially destroyed;
—authority to permanently repair or fully replace damaged
public facilities;
—improvement in the programs that provide disaster loans to
stricken individuals; and
—authority to assist States and localities in averting or lessen-
ing the effects of potentially major disasters.
The Congress, while altering the particulars of many of these
proposals, has incorporated all of the essential features of a sound
disaster assistance program. I am pleased with this bill which
responds to a vital need of the American people. The bill demon-
strates that the Federal Government in cooperation with State and
local authorities is capable of providing compassionate assistance
to the innocent victims of natural disasters.
[p. 12]
-------
1006 LEGAL COMPILATION—GENERAL
1.9 INTEREST ON CERTAIN GOVERNMENT OBLIGATIONS
26 U.S.C. §103(c)(4) as amended (1971)
§ 103. INTEREST ON CERTAIN GOVERNMENTAL OBLIGA-
TIONS
(a) GENERAL RULE.—Gross-income does not include interest
on—
(1) the obligations of a State, a Territory, or a possession
of the United States, or any political subdivision of any of the
foregoing, or of the District of Columbia;
(2) the obligations of the United States; or
(3) the obligations of a corporation organized under Act of
Congress, if such corporation is an instrumentality of the
United States and if under the respective Acts authorizing
the issue of the obligations the interest is wholly exempt from
the taxes imposed by this subtitle.
(b) EXCEPTION.—Subsection (a) (2) shall not apply to interest
on obligations of the United States issued after September 1, 1917
(other than postal savings certificates of deposit, to the extent
they represent deposits made before March 1, 1941), unless under
the respective Acts authorizing the issuance thereof such interest
is wholly exempt from the taxes imposed by this subtitle.
(c) INDUSTRIAL DEVELOPMENT BONDS.—
(1) SUBSECTION (a) (1) NOT TO APPLY.—Except as other-
wise provided in this subsection, any industrial development
bond shall be treated as an obligation not described in sub-
section (a) (1).
(2) INDUSTRIAL DEVELOPMENT BOND.—For purposes of
this subsection, the term "industrial development bond"
means any obligation—
(A) which is issued as part of an issue all or a major
portion of the proceeds of which are to be used directly
or indirectly in any trade or business carried on by any
person who is not an exempt person (within the meaning
of paragraph (3)), and
-------
STATUTES AND LEGISLATIVE HISTORY 1007
(B) the payment of the principal or interest on which
(under the terms of such obligation or any underlying
arrangement) is, in whole or in major part—
(i) secured by any interest in property used or to
be used in a trade or business or in payments in
respect of such property, or
(ii) to be derived from payments in respect of
property, or borrowed money, used or to be used in a
trade or business.
(3) EXEMPT PERSON.—For purposes of paragraph (2)
(A), the term "exempt person" means—
(A) a governmental unit, or
(B) an organization described in section 501 (c) (3)
and exempt from tax under section 501 (a) (but only
with respect to a trade or business carried on by such
organization which is not an unrelated trade or business,
determined by applying section 513 (a) to such organiza-
tion).
(4) CERTAIN EXEMPT ACTIVITIES.—Paragraph (1) shall
not apply to any obligation which is issued as part of an issue
substantially all of the proceeds of which are to be used to
provide—
(A) residential real property for family units,
(B) sports facilities,
(C) convention or trade show facilities,
(D) airports, docks, wharves, mass commuting facili-
ties, parking facilities, or storage for training facilities
directly related to any of the foregoing,
(E) sewage or solid waste disposal facilities or facili-
ties for the local furnishing of electric energy or gas,
(F) air or water pollution control facilities, or,
(G) facilities for furnishing of water, if available on
reasonable demand to members of the general public.
Aug. 16, 1954, c. 736, 68A Stat. 29; Dec. 10, 1971, Pub. L. 92-178,
Title III, § 315(a), 85 Stat. 529.
-------
1008 LEGAL COMPILATION—GENERAL
1.9a AMENDMENTS TO INTEREST ON CERTAIN
GOVERNMENT OBLIGATIONS
June 28,1968, P.L. 90-364, Title I, § 107(a), 82 Stat. 266
SEC. 107. INDUSTRIAL DEVELOPMENT BONDS.
(a) AMENDMENT OF SECTION 103.—Section 103 (relating to
interest on certain governmental obligations) is amended by relet-
tering subsection (c) as subsection (d) and by inserting after
subsection (b) the following new subsection:
"(c) INDUSTRIAL DEVELOPMENT BONDS.—
"(1) SUBSECTION (a) (1) NOT TO APPLY.—Except as other-
wise provided in this subsection, any industrial development
bond shall be treated as an obligation not described in subsec-
tion (a)(l).
"(2) INDUSTRIAL DEVELOPMENT BOND.—For purposes of
this subsection, the term 'industrial development bond' means
any obligation—
"(A) which is issued as part of an issue all or a major
portion of the proceeds of which are to be used directly or
indirectly in any trade or business carried on by any person
[p. 266]
who is not an exempt person (within the meaning of para-
graph (3)), and
"(B) the payment of the principal or interest on which
(under the terms of such obligation or any underlying ar-
rangement) is, in whole or in major part—
" (i) secured by any interest in property used or to
be used in a trade or business or in payments in re-
spect of such property, or
"(ii) to be derived from payments in respect of
property, or borrowed money, used or to be used in a
trade or business.
"(3) EXEMPT PERSON.—For purposes of paragraph (2) (A),
the term 'exempt person' means—
"(A) a governmental unit, or
"(B) an organization described in section 501 (c) (3) and
exempt from tax under section 501 (a) (but only with respect
to a trade or business carried on by such organization which
is not an unrelated trade or business, determined by applying
section 513 (a) to such organization).
-------
STATUTES AND LEGISLATIVE HISTORY 1009
"(4) CERTAIN EXEMPT ACTIVITIES.—Paragraph (1) shall not
apply to any obligation which is issued as part of an issue substan-
tially all of the proceeds of which are to be used to provide—
" (A) residential real property for family units,
"(B) sports facilities,
" (C) convention or trade show facilities,
" (D) airports, docks, wharves, mass commuting facilities,
parking facilities, or storage or training facilities directly
related to any of the foregoing,
"(E) sewage or solid waste disposal facilities or facilities
for the local furnishing of electric energy, gas, or water, or
" (F) air or water pollution control facilities.
*******
[p. 267]
1.9a(l) HOUSE COMMITTEE ON WAYS AND MEANS
H.R. REP. No. 1104, 90th Cong., 2d Sess. (1968)
TAX ADJUSTMENT ACT OF 1968
FEBRUARY 23, 1968.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. MILLS, from the Committee on Ways and Means,
submitted the following
REPORT
[To accompany H.R. 15414]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 15414) to continue the existing excise tax rates on
communication services and on automobiles, and to apply more
generally the provisions relating to payments of estimated tax by
corporations, having considered the same, report favorably there-
on without amendment and recommend that the bill do pass.
[No Relevant Discussion on Pertinent Section]
-------
1010 LEGAL COMPILATION—GENERAL
1.9a(2) SENATE COMMITTEE ON FINANCE
S. REP. No. 1014, 90th Cong., 2d Sess. (1968)
TAX ADJUSTMENT ACT OF 1968
MARCH 15, 1968.—Ordered to be printed
Mr. LONG of Louisiana, from the Committee on Finance, submit-
ted the following
REPORT
[To accompany H.R. 15414]
The Committee on Finance, to which was referred the bill (H.R.
15414) to continue the existing excise tax rates on communication
services and on automobiles, and to apply more generally the pro-
visions relating to payments of estimated tax by corporations,
having considered the same, reports favorably thereon with
amendments and recommends that the bill as amended do pass.
[P-1]
[No Relevant Discussion on Pertinent Section]
1.9a(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 1533, 90th Cong., 2d Sess. (1968)
[No Relevant Discussion on Pertinent Section]
1.9a(4) CONGRESSIONAL RECORD, Vol. 114 (1968)
1.9a(4)(a) Feb. 29: Debated and passed House, p. 4704;
[No Relevant Discussion on Pertinent Section]
1.9a(4)(b) March 26, 28, April 2: Debated in Senate, pp. 8147,
8159-8162;
Mr. RIBICOFF. Mr. President, I
ask unanimous consent that further
reading of the amendment be dis-
pensed with.
The ACTING PRESIDENT pro
tempore. Without objection, it's so
ordered; and, without objection, the
amendment will be printed in the
RECORD.
The amendment is as follows:
-------
STATUTES AND LEGISLATIVE HISTORY
1011
At the end of the amendment insert tb
following:
"SEC. 14. INDUSTRIAL DEVELOPMENT BONDS
"(a) Section 103 of the Internal Revenue
Code of 1954 (relating to interest on certain
governmental obligations) is amended by re-
letteri ng subsection (c) as subsection (d)
and by inserting after subsection (b) the
following new subsection:
"'(c) INDUSTRIAL DEVELOPMENT BONDS.—
"'(1) SUBSECTION (a)(l) NOT TO APPLY.—
Any industrial development bond (as denned
in paragraph (2) ) issued after August 1,
1968, shall not be considered an obligation
described in subsection (a) (1).
" '(2) INDUSTRIAL DEVELOPMENT BONDS DE-
FINED.—
"'(A) IN GENERAL.—For purposes of this
subsection, the term "industrial development
bond" means an obligation the payment of
the principal or interest on which is—
" '(i) secured in whole or in part by a lien,
mortgage, pledge, or other security interest
in property of a character subject to the al-
lowance for depreciation, or
" '(ii) secured in whole or in part by an
interest in (or to be derived primarily from)
payments to be made in respect of money or
property of a character subject to the allow-
ance for depreciation
which is or will be used, under a lease, sale
or loan arrangement, for industrial or com-
mercial purposes.
" '(B) EXCEPTIONS.—For purposes of sub-
paragraph (A), property shall not be treated
as used for industrial or commercial pur-
poses if it is used—
" ' (i) to provide entertainment (including
coming events) or recreational facilities for
the general public;
" ' (ii) to provide facilities for the holding
of a convention, trade show, or similar event;
"'(in) as an airport, flight training facili-
ties, dock, wharf, grain storage facility, park-
ing facility, or similar transportation facility;
"'(iv) in the furnishing or sale of electric
energy, gas, water, sewage or solid waste
disposal services or air or water pollution
abatement facilities; or
" '(v) in an active trade or business owned
and operated by any organization described
in subsection (a) (I)/
" (b) The amendment made by subsection
(a) shall apply with respect to taxable years
ending after August 1, 1968."
*****
[p. 8147]
Mr. PERCY. Mr. President, I am
very grateful that the distinguished
Senator from Connecticut [Mr. RIBI-
COFP] has proposed this amendment,
and I am happy to join him as a co-
sponsor. I believe the amendment rep-
resents a very sound approach to a
problem that has faced the Senate in
two previous votes this year. It repre-
sents a balanced disposition of the
question of the tax status of the in-
come from municipal industrial bonds,
and I hope it will be agreed to.
Mr. President, on behalf of my col-
league, the most distinguished senior
Senator from Illinois [Mr. DIEKSEN],
I thank the Senator from Connecticut
for accepting a change in his amend-
ment which is a departure from the
form of his original proposal. The ex-
ception relating to bonds for the con-
struction of air and water pollution
control is, we feel, responsive to a
genuine need throughout the Nation.
It will retain an avenue for immediate
action against a very real and grow-
ing problem with which, it seems,
everyone is much concerned, but upon
which we are slow in mounting a
meaningful attack at the grassroots
level.
Mr. President, the citizens of the
State of Illinois will vote on a $1 bil-
lion general obligation bond issue this
year. A substantial part of the pro-
ceeds of this issue will provide the
means for financing water pollution
control facilities so desperately needed
in our State, particularly in the Chi-
cago area. Many small communities
have plans for similar issues, in order
to match the State moneys.
An interesting possible application
of this exception is described in a
paper prepared by Mr. James H. Mc-
Call, of the corporate finance depart-
ment of Goodbody & Co., in Chicago.
[p. 8159]
But more important, the paper, de-
livered at a recent meeting of repre-
sentatives of concerned organizations,
outlines graphically the tremendous
needs in this critical area of pollution
control, not only in Chicago and Illi-
nois, but in the Nation, as well. I ask
-------
1012
LEGAL COMPILATION—GENERAL
unanimous consent that it be printed
in the RECORD, together with the
names of those who participated in
the discussion of ways to meet this
important need.
I urge Senators to vote for the Ribi-
coff amendment, I hope it will be
agreed to.
There being no objection, the paper
and list of participants were ordered
to be printed in the RECORD, as fol-
lows:
A PLAN FOR ENVIRONMENTAL CONTROL
FINANCING
(By James H. McCall, Goodbody & Co., March
12, 1968)
INTRODUCTION
The questions and problems of pollution
control are being studied on all levels of
government and business. The actual defini-
tion of many forms of pollution has yet to
be agreed upon—the tolerable degree of efflu-
ent in one or another stream or airshed is
governed by what is the best economic and
social usage of each of those courses. Never-
theless, we know pollution has no benefits
in itself, and it must be minimized to help
control our environment and our ability to
maintain our well-being.
The technological approach to these prob-
lems is properly being taken on an individual
basis, and definitions of need, approach and
attack proposed for each individual case are
well delineated as to the micro-economics of
that portion of the total system it is to satisfy.
But the economics of the whole of the
communities' problems must be taken in more
broadly in order to be realistic, and a macro-
economic approach must be established in
order to make full use of the most efficient
application of any proposed solution.
THE FEDERAL GOVERNMENT'S ENVIRONMENTAL
APPROACH
The federal government has quietly moved
in this direction with the introduction of the
two bills in the Senate for the organization
of an Environmental Council, and with the
President's latest message covering all aspects
of environment and not one or another area—
water, air or solid waste. Under these pro-
posals, the respective Secretaries of Interior
and Health, Education and Welfare would
work in harness with the Council, and their
respective efforts would complement one an-
other. The highly interrelated problems of air
pollution, water pollution and disposal of our
solid wastes, which are complex in their crea-
tion, would likewise be approached and solved
on an interrelated basis, in which the eco-
nomics would play an important roit. This
broad approach must be made by the State
and local governments as well as the Federal,
if any progress will be made.
ACTIO N NEEDED NOW
Unless this broad base is created at the
outset of the attack on local problems, some
formidable and perhaps insurmountable ob-
stacles will arise that will not permit the new
pollution technology to be implemented. If
industry and governmental officials do not
take an initiative today to provide the proper
economic vehicles for effective environmental
control, the road to clean air and useful
waters is going to be detoured through a
sticky political swamp.
A PLAN FOR ACTION
What we are here today to propose to you
and to ask your help on, is the creation of
a new environment —if you will pardon the
pun—that of industry-government cooperation
to give the existing regulatory agencies a real
chance to do their job, and have some sound,
business-like support to get it done; financial
support that is not dependent upon relative
needs dictated by political pressures, foreign
aid, available taxes, or referendums; and op-
erating support that is efficient, effective and
comprehensive.
We have a plan which we think can pro-
vide Chicago and Illinois an opportunity to
lead the nation by providing such a vehicle
to aid in resolving problems of environmental
control.
BACKGROUND
For over two years, we have intensively put
our minds to questions of ways and means
of meeting pollution problems. In connection
with this, I have, on behalf of Goodbody,
visited cities from coast to coast and have
discussed first-hand with city officials and civic
and industrial leaders the problems and diffi-
culties which they have. We have explored
approaches and concepts that might most
quickly and most efficiently be employed to
diagnose the particular pollution problems,
what causes them, and on what economic basis
they can be resolved. We are very much aware
that new technologies are being developed to
meet these problems. Implementing the new
technologies requires the development of new
methods of financing. Mr. Reilly of our firm
is a nationally recognized authority on de-
veloping and applying new municipal financing
techniques.
NEEDS
First, what are our needs in Chicago and
Illinois? It is conservatively estimated that
during the next five years the capital require-
ments for pollution and environmental con-
-------
STATUTES AND LEGISLATIVE HISTORY
1013
trol merely to cover present rates of new con-
struction in the Northeastern Illinois area
will be at least 1.3 billion dollars. This figure
is based on moderate population projections,
the standard current per capita expense on
water and sanitary facilities and the current
share of industrial capital expenditures allo-
cated to pollution control. This estimate does
not take into account the development of new
technologies or any acceleration in the rate
of spending. On a statewide basis, far
greater sums will be needed over the next few
years.
On a national basis, the need for municipal
and industrial water pollution control facili-
ties over the next five years will require
between 20 and 23 billion dollars. From that,
we can also estimate that the share of water
pollution control facilities in Northeastern
Illinois alone could easily require one billion
dollars or more.
INDUSTRY INCENTIVES
Since the huge investment required does
not produce income for those private indus-
tries who must bear much of the cost, it is
important that incentives be provided to in-
duce maximum cooperation. Control of our
environment is a public, as well as a private,
responsibility; therefore, it is appropriate that
public agencies cooperate with private industry
in financing the cost. Only by sharing the load
can there be an effective effort to obtain full
use of our air, lakes, streams, and rivers. A
good example of a joint effort is the low
income dwelling rehabilitation now being un-
dertaken by several major corporations and
federal and local governments.
OTHER PROPOSALS
We have reviewed legislation and proposals
under consideration in other states, such as
Ohio, Nebraska and New York, and systems
in other countries such as the Ruhr Valley
in Germany. We have also studied the back-
ground on the proposition for referendum
coming up this year in Illinois. We see some
good ideas in all these plans but nothing
comprehensive enough to provide a strong
economic basis for the type of action that is
going to have to be taken. The provisions for
real and practical incentives for industry to
provide its own corrective systems are ac-
tually few, and industry needs these incen-
\ tives, as well as regulations, to stimulate
action on many of our most pressing problems.
THE PROPOSAL
Out of this research we think we have
found a basis for financing of many of the
needed environmental control projects, and
we feel that we have developed a unique
proposal which is simple, economical, efficient,
and which will result in a minimal cost to
the taxpayer. What we now propose is the
application of the principles of municipal
revenue bond financing to the problem of rais-
ing capital for pollution control not only for
public agencies but also for private industry.
This program is designed to meet the re-
quirements of the Federal government for
matching funds, and as outlined in the Presi-
dent's environmental message of March 8.
We asked our legal counsel, Mr. Richard G.
Ferguson of Isham, Lincoln & Beale to pre-
pare a draft of legislation to provide a vehicle
for our plan. The legislation is now in draft
form and can be readied to be introduced
without delay at the forthcoming reconvening
of the State Legislature.
Specifically, the legislation as drafted calls
for the following:
1. The creation of local Environmental Con-
trol Districts. These districts would be created
by counties acting either separately or jointly
with other countries. In countries where a mu-
nicipality has over one-third of the over-all
population, the District would be established
by joint action of the municipality and the
county. These local districts would acquire
air and water pollution control equipment and
facilities for lease, contracts, or to provide
services to private or public interests with
pollution control problems. The local districts
will also be authorized to provide disposal
services for solid wastes arising from all pollu-
tion control efforts on a contract basis for
other political subdivisions or for private in-
dustry.
2. The creation of a state level Environ-
mental Control Commission. The purpose of
this Commission would be to supervise and
coordinate all pollution control policies and
planning undertaken by local and regional
agencies as well as by other state agencies.
It would be composed of state agency officials,
citizens, and representatives of the local dis-
tricts. The Commission would issue and mar-
ket state revenue bonds payable out of the
pooled revenues produced by the lease or sale
of tbe environmental control facilities and
equipment or for services provided by any
of these facilities, by the local districts. The
proceeds from the sale of these bonds would
be distributed to local districts in direct pro-
portion to their actual capital needs to deal
with their localized problems. By having the
state agency market and issue the bonds
backed by the revenue to be received by the
local districts, the bonds could be issued in
large enough amounts so as to provide the
lowest net interest cost for the financing.
The revenues would be further backed by
guarantees of the leases to smaller firms un-
der a lease guarantee plan developed and ad-
ministered by the private insurance industry
and the SBA. This would save substantial
amounts for the community and for industry
-------
1014
LEGAL COMPILATION—GENERAL
and the bonds would be readily marketable
instruments. The Commission would also ren-
der technical and engineering advice to private
industry and to government agencies to assist
in determining the feasibility, capacity and
necessity for various pollution control projects.
This Commission would in no way replace
or curtail the status or powers of any existing
State or local agency, but would exist solely
to provide an efficient, expedient and business-
like method of implementing their actions.
Our proposal is analogous to the financing
[p. 8160]
techniques used by the Public Building Com-
mission for public agencies, and to the in-
dustrial aid bond technique in its application
to private industry.
ADVANTAGES
Of course, the important advantage to pri-
vate industry from this plan is the reduc-
tion in the cost of financing pollution con-
trol facilities through the use of the relatively
low interest rate, tax free municipal bonds
and the incentives of exemption from all
property taxes on these facilities arising from
public ownership. The advantage to the public
from this proposal is clear; there would be
an immediate opportunity to accelerate a major
part of our pollution control efforts, no addi-
tional taxes need be imposed, and in fact,
Illinois citizens could be relieved of many of
the additional taxes contemplated by the bond
referendum to solve a number of the pollution
problems caused by the private sector of the
economy.
It may be possible for the agency to de-
velop income by reason of services it could
also render to the municipalities and industry.
This income could provide an effective offset
to the costs of financing and the service
charges to the municipalities and to industry,
by providing them with credits on their pay-
ments.
COORDINATION WITH BOND ISSUE
This program would coordinate well with
the one billion dollar statewide general obli-
gation bond issue to be presented to the voters
in Illinois in 1968. Since revenue bonds could
provide a means to finance the bulk of pollu-
tion facilities required by private industry and
the various local governments, that part of the
proceeds of the statewide issue now intended
to be used for such purposes would be sub-
stantially decreased. The state would then be
able either to reduce the amount of bonds
actually issued (thereby minimizing the tax-
payer's burden) or apply more of the bond
proceeds toward water resources and flood
control projects. It would be helpful if some
small portion of the proposed billion-dollar
bond issue could be applied toward start-up
operating costs of the various local environ-
mental control districts which might be created.
Thus, the funds to be available from the
revenue bonds would be available without
the statewide referendum and without the im-
position of a statewide property tax.
EXAMPLE
As an example of the operation of the
proposed legislation, suppose, that in Cook
County a number of industries need facilities
and equipment to meet the pollution control
standards promulgated by various federal, state
and local agencies. The tight money market
with high interest costs makes it difficult and
expensive for these private businesses to ac-
quire the needed facilities themselves.
APPLICATION TO INDUSTRY
Under the proposed legislation the industries
could lease the necessary equipment from the
local Environmental Control District formed
jointly by the County Board and the Chicago
City Council. The facilities could thus be made
available for the public benefit to the indus-
tries without impinging upon the capital re-
sources needed by companies for regular busi-
ness purposes. These facilities would become
available to industry at an over-all lower cost
due to the tax advantages of public bond
financing and the economic advantages accru-
ing from the local district providing pollution
control facilities on a greater scale. The
program would also be particularly consonant
with modern business management attitudes
toward the acquisition of nonproductive equip-
ment, which is to have the use of such equip-
ment by lease and not to tie up the working
capital of the businea for such reasons.
APPLICATION TO MUNICIPALITIES
By the same method, the District could
purchase and lease facilities to a municipality
or sanitary district that had reached its tax-
ing limits, or for some other reason did not
choose to issue additional bonds. These leases
or term purchase arrangements are perfectly
legal under current legislation, and can be
paid for with user charges in many instances
where taxes cannot be levied. The cost, be-
cause of the revenue pooling arrangements,
and loan guarantee programs, may approxi-
mate what the municipality would pay on its
own.
STATE ISSUES BONDS
The state Environmental Control Commis-
sion would then issue its revenue bonds based
on the capital needs of the local district and
the proceeds of the bonds would go in our
example to the Cook County Environmental
Control District to acquire or construct the
necessary facilities to meet the local needs.
-------
STATUTES AND LEGISLATIVE HISTORY
1015
The facilities could thus be made available
to industry without any direct cost to the
public and without additional taxation. By
coordinating with the local district, the state
agency could insure that local efforts would
employ sound technology and responsible fi-
nancing.
ECONOMIES
Moreover, by the coordinating of various
individual pollution efforts, the local districts
and the state agency could make additional
economies available to the users by the shar-
ing of some facilities among them wherever
possible. The technical advice which could
be offered by the state experts could result
in more efficient implementation of technology
as applied to the particular industries in-
volved. For instance, new techniques are pro-
viding ways to recover many pollutants as
useful raw materials which can be resold or
recycled to offset the costs involved in pollu-
tion control. We have found in a Houston
project we financed that material recycling
now significantly off-sets operating costs with
the re-use of 30% to 35% of the input volume.
There are many instances where wastes and
by-products of one industry become raw ma-
terials for another, only because the volumes
were able to be coordinated and timed. It
seems inevitable that additional discoveries of
this type will be soon forthcoming. Thus, the
industries receiving the control district facili-
ties could be aided in making their own opera-
tions more efficient.
SOLID WASTE DISPOSAL
Another interrelated problem which plagues
both industrial and municipal agencies is the
problem of solid waste disposal which is not
a part of the pending $1 billion bond referen-
dum. The combination of increased population
and increased waste per capita presents an
exploding and ominous problem that involves
not only the treatment of residential and
industrial wastes, but also that of getting rid
of the final wastes after treatment. It is
important that any solid waste program be
coordinated with the air and water pollution
control programs because generally the final
product of these projects is an unwelcome
sludge which is hard to dispose of in any
volume. This problem of solid waste disposal
is an area in which economies of scale are
most evident. The greater the volume of solid
wastes or sludge treated by a facility or to be
disposed of, the lower the per-ton cost can
be brought.
There are great opportunities for additional
revenues and income to be generated here.
Solely out of elimination of duplicate facilities,
coordination of collection and transfer stations,
and the economies of large volume material
handling, the district could provide a cheaper
service, yet generate income to reduce the
overall costs of environmental control, com-
pared to what would be the cost of that
handled with today's fragmented approach.
In addition, a major hazard could be averted
in the regional systematizing of the refuse
disposal problem which will become critical
within a few years.
The City of Chicago now generates almost
3 million tons of solid wastes (excluding
sewage sludges) each year. About 50% of this
volume is exported for disposal in other areas.
Of the 22 regions in Northeastern Illinois
surveyed in 1963, 16 had less than 10 years
life in disposal areas, and 10 are now exporting
all refuse. In addition, only 28 of the 82 dis-
posal facilities in the area were publicly
owned, and no regulations exist on the rates
charged by the private sites. In the last year,
at least one of the major operators of these
sites doubled his rates.
By closely coordinating with both public
and private refuse operations, the District
could provide regional disposal operations
that would most efficiently take advantage of
logistics, and provide the lowest cost, yet most
up-to-date technological facilities for disposal
of all solids generated with the Northeastern
Illinois area. By operating as a profit-making
operation, it could be self supporting, and
maintain the lowest costs for the communities
and industries it serves.
ASSISTANCE ON THE PROGRAM
The program we have developed reflects the
thi nking of many people, all of whom are
willing to offer their time and talents to re-
fine and perfect the programs and mechanics
and to serve in any way to help implement it.
We have the experience and background to
bri ng to bear on the economics and legal
aspects of the bond issues and can advise all
state and local agencies involved. In addition,
we at Goodbody & Co. are prepared to secure
the assistance of the financial community to
underwrite and distribute the bonds which
will be issued by the Commission. All of us
have developed this program together in order
to bring the critical problem of environmental
control into a solvable perspective and to
provide a sound economic basis for our com-
munity to meet these challenges. We have
discussed this concept in general with officials
of several large corporations, engineers and
civic leaders, with a uniformly positive re-
sponse. We are confident that the support for
this coordinated plan will be widespread and
enthusiastic.
OPPORTUNITIES FOR CHICAGO
For Chicago in particular, we believe that
this program will provide:
1. An acceleration of the implementation
-------
1016
LEGAL COMPILATION—GENERAL
of needed pollution control and abatement
methods.
2. The provision of a modern method of
adequate financing in keeping with the ever-
advancing state of the art of pollution con-
trol, by offering immediate, direct and attrac-
tive financial incentives to industry and the
community.
3. Continued national leadership for the
City of Chicago in meeting the growing chal-
lenge of urban and social problems. This
program will demonstrate that this effort
need not be based on property taxation and
that it can be supported by industry. The
program would be a model for others to
follow.
PARTICIPANTS, ENVIRONMENTAL CONTROL
FINANCING LUNCHEON, MARCH 12, 1968
Todd Gayer, Deputy Regional Construction
Grants Program Director, Federal Water Pollu-
tion Control Administration, Chicago, Illinois.
Frank E. Dalton, Chief Engineer, Metro-
politan Sanitary District of Greater Chicago.
Stephen Denning, General Partner, Good-
body & Co., Chicago, Illinois.
Robert G. Ducharme, Assistant Director,
Northeastern Illinois Planning Commission,
Chicago, Illinois.
Richard G. Ferguson, Partner, Isham, Lin-
coln & Beale, Chicago, Illinois.
James V. Fitzpatrick, Commissioner, Dept.
of Streets & Sanitation, Chicago, Illinois.
James Flannery, Chief Economist, Federal
Water Pollution Control Administration,
Washington, D.C.
[p. 8161]
Robert Gentz, Vice President, Inland Steel
Co., Chicago, Illinois.
G. Findley Griffiths, President, Interlake
Steel Corp., Chicago, Illinois.
H. Harper, Vice President, Northern Illi-
nois Gas Company, Chicago, Illinois.
E. F. Heizer, Jr., Assistant Treasurer, All-
state Insurance Company, Northbrook, Illinois.
Allen S. Lavin, Chief Counsellor, Metro-
politan Sanitary District of Greater Chicago.
Richard C. Lonergan, Vice President, All-
state Insurance Company, Northbrook, Illinois.
James H. McCall, Corporate Finance Dept.,
Goodbody & Co., Chicago, Illinois.
Ronald D. Michaelson, Administrative As-
sistant, Board of Commissioners of Cook
County, Illinois.
Morgan Murphy, Jr., Partner, Coughlan,
McGloon, Joyce & Murphy, Chicago, Illinois.
William F. Palmer, Engineering Consultant,
Goodbody & Co., New York, New York.
Preston E. Peden, Director of Governmental
Affairs Division, Chicago Association of Com-
merce and Industry, Chicago, Illinois.
James F. Reilly, General Partner, Goodbody
& Co., New York, New York.
John R. Sheaffer, Research Associate, Center
for Urban Studies. University of Chicago.
Charles F. Willson, Director of Area Devel-
opment, Continental Illinois National Bank
and Trust Company, Chicago, Illinois.
Richard A. Young, Manager, Institutional
Department, Goodbody & Co., Chicago, Illinois.
Mr. MONRONEY. I yield back the
remaining time.
Mr. RIBICOFF. I yield back the re-
mainder of my time.
The PRESIDING OFFICER. All
remaining time having been yielded
back, the question is on agreeing to
the amendment. The yeas and nays
have been ordered, and the clerk will
call the roll.
The result was announced—yeas 50,
nays 32, as follows: * * *
So Mr. RIBICOFF'S amendment was
agreed to.
[p. 8162]
-------
STATUTES AND LEGISLATIVE HISTORY
1017
1.9a(4)(c) June 20: House considers and passes conference
report, p. 18006;
[No Relevant Discussion on Pertinent Subsection]
1.9a(4)(d)
p. 18179.
June 21: Senate agrees to conference report,
The PRESIDING OFFICER (Mr.
MUSKIE in the chair). Pursuant to the
previous order, the vote will now take
place on the adoption of the confer-
ence report. On this question the yeas
and nays have been ordered, and the
clerk will call the roll.
The bill clerk called the roll.
*****
The result was announced—yeas 64,
nays 16, as follows:
*****
[p. 18179]
1.9b REVENUE ACT OF 1971
December 10, 1971, P.L. 92-178, Title III, §315 (a), 85 Stat. 529
An Act
To provide a Job development investment credit, to reduce individual income
taxes, to reduce certain excise taxes, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) SHORT TITLE.—This Act may be cited as the "Revenue Act
of 1971."
[P.1]
SEC. 315. INDUSTRIAL DEVELOPMENT BONDS.
(a) ISSUES FOR WATER FACILITIES.—Section 103 (c) (4) (relat-
ing to certain exempt activities) is amended—
(1) by striking out in subparagraph (E) "energy, gas, or
water, or" and by inserting in lieu thereof "energy or gas,";
(2) by striking out the period at the end of subparagraph
(F) and inserting in lieu thereof ", or"; and
(3) by adding at the end thereof the following:
"(G) facilities for the furnishing of water, if available
on reasonable demand to members of the general public."
[p. 33]
-------
1018 LEGAL COMPILATION—GENERAL
1.9b(l) HOUSE COMMITTEE ON WAYS AND MEANS
H.R. REP. No. 92-533, 92d Cong., 1st Sess. (1971)
[No relevant discussion on pertinent section]
1.9b(2) SENATE COMMITTEE ON FINANCE
S. REP. No. 92-437, 92d Cong., 1st Sess. (1971)
[No relevant discussion on pertinent section]
1.9b(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 92-708, 92d Cong., 1st Sess. (1971)
REVENUE ACT OF 1971
DECEMBER 4, 1971.—Ordered to be printed
Mr. MILLS of Arkansas, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 10947]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the Senate to the bill (H.R. 10947)
to provide a job development investment credit, to reduce individ-
ual income taxes, to reduce certain excise taxes, and for other
purposes, having met, after full and free conference, have agreed
to recommend and do recommend to their respective Houses as
follows:
That the Senate recede from its amendments numbered 4, 21, 29,
34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 60, 65, 68, 70, 71, 72, 73, 74, 75,
77, 78, 80, 83, 84, 86, 93, 103, 106, 114, 115, 116, 117, 120, 121, 123,
125, and 126.
That the House recede from its disagreement to the amendments
of the Senate numbered 2, 3, 5, 6, 8,12,13, 16,17,18,19, 20, 22, 23,
24, 25, 26, 27, 31, 32, 33, 45, 46, 48, 51, 52, 53, 54, 55, 56, 57, 58, 59,
62, 63, 79, 82, 87, 88, 89, 90, 91, 92, 94, 95, 96, 97, 98, 99, 100, 102,
104,105,107,108,109,110, and 112, and agree to the same.
[p-l]
INDUSTRIAL DEVELOPMENT BONDS
Amendment No. 67: Under present law, certain small issues of
industrial development bonds are exempted from the rule which
provides that industrial development bonds are not obligations the
interest on which is excluded from tax. Generally, these are issues
-------
STATUTES AND LEGISLATIVE HISTORY
1019
of $1,000,000 or less, but under certain conditions, can be as much
as $5,000,000. Senate amendment no. 67 increased the $1,000,000
limit to $5,000,000, and eliminated the special provisions for issues
of $5,000,000 or less.
Also present law exempts obligations issues for certain specified
purposes from the industrial development bond rule. One of the
specified purposes is facilities for the local furnishing of water.
Senate amendment no. 67 eliminates the requirement that water
facilities must be local and provides an exemption for facilities for
the furnishing of water if the facilities are available on reasonable
demand to members of the general public.
[p. 47]
The House recedes with amendments. The conference agreement
retains the provisions of the Senate amendment relating to facili-
ties for the furnishing of water. The conference agreement retains
the provisions of existing law with respect to the dollar limits
(both the $1,000,000 and $5,000,000 limits) on small issues which
are exempt from the industrial development bond rule, but in-
creases from $250,000 to $1,000,000 the amount of expenditures
which may be disregarded in applying the conditions relating to
issues of $5,000,000 or less where the expenditures are required by
circumstances which could not be reasonably foreseen or arise out
of mistake of law or fact. Included in these expenditures are ex-
penditures necessitated by erroneous cost estimates, by increases
in costs due to inflation, strikes, delays, or architectural modifica-
tions but not increases due to expansions.
[p. 48]
1.9b(4) CONGRESSIONAL RECORD, VOL. 117 (1971)
1.9b(4)(a) Oct. 5, 6: Considered and passed House, pp. H9155-
H9178, H9229
[No relevant discussion on pertinent section.]
1.9b(4)(b) Nov. 15: Considered and passed Senate, amended,
pp. S18564-S18579
AMENDMENT NO. 655
The PRESIDING OFFICER (Mr.
BYKD of Virginia). Pursuant to the
previous order, the Chair now lays be-
fore the Senate amendment No. 655
which the clerk will report.
The legislative clerk read as fol-
lows:
-------
1020
LEGAL COMPILATION—GENERAL
Add at the end of title III thereof a new
section as follows:
SBC. 316. (a) Section 103(c) (4) of the In-
ternal Revenue Code of 1964 (relating to cer-
tain exempt activities) is amended—
(1) by striking out in subparagraph (E)
"energy, gas, or water, or" and by inserting
in lieu thereof "energy or gas,";
(2) by striking out the period at the end
of subparagraph (F) and inserting in lieu
thereof ", or"; and
(3) by adding at the end thereof the fol-
lowing :
"(G) facilities for the furnishing of water,
if available on reasonable demand to mem-
bers of the general public."
(b) Section 103(c)(6) of such Code (relat-
ing to exemption from industrial develop-
ment bond treatment for certain small
issues) is amended—
(1) by striking out "$1,000,000" in sub-
paragraph (A) and by inserting in lieu
thereof "$5,000,000"; and
(2) by striking out subparagraphs (D),
(E), (F), (G), and (H).
(c) The amendments made by this section
shall apply with respect to obligations issued
after January 1, 1969.
ORDER OF BUSINESS
Mr. RIBICOPF. Mr. President,
could I ask unanimous consent to have
this amendment postponed, as I have
an amendment to the amendment
which is in the process of being drawn
up and which is not out of the type-
writer yet.
Mr. McCLELLAN. Mr. President,
reserving the right to object
The PRESIDING OFFICER. Who
yields time?
Mr. SPARKMAN. Mr. President, I
ask unanimous consent that we may
have a short discussion, without the
time being charged to either side.
Mr. BYRD of West Virginia. Mr.
President, reserving the right to ob-
ject
The PRESIDING OFFICER. Is
there objection?
Mr. BYRD of West Virginia. Mr.
President, I ask unanimous consent
that that discussion be limited to 2
minutes.
The PRESIDING OFFICER. Is
there objection? The Chair hears none,
and it is so ordered.
Mr. SPARKMAN. Mr. President, I
want to ask the Senator from West
Virginia, what would be the next
amendment and how long would it
take?
Mr. BYRD of West Virginia. Mr.
President, in response to the inquiry
of the able Senator from Alabama,
the next amendment which has been
clocked into the program, by unani-
mous consent, following the Spark-
man amendment, will be an amend-
ment by the distinguished Senator
from South Carolina (Mr. ROLLINGS)
on which there is a time limitation of
2 hours. That would be followed by
another amendment by the Senator
from South Carolina (Mr. ROLLINGS)
on which there is a limitation of 1
hour. That would be followed by an
amendment by the distinguished Sen-
ator from Indiana (Mr. BAYH) on
which there is a limitation of 1 hour.
That makes a total of 4 hours, not
counting the time for roll call votes
or any time on amendments in the
second degree, motions, or appeals.
Mr. SPARKMAN. I had assured
the Senator from Arkansas, after get-
ting clearance with the leadership,
that this amendment would be called
up in the early afternoon because the
Senator has to leave and he was very
much interested in the amendment.
Mr. BYRD of West Virginia. Mr.
President, I ask unanimous consent
that 1 additional minute be allowed
for this colloquy.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. McCLELLAN. Mr. President, I
have the same understanding of the
leadership. I do not want to oppose
anything the Senator from Connecti-
cut has in mind, but I want to be here
to support the amendment and to be
able to vote for it.
Mr. RIBICOFF. My feeling is, in
view of the fact that the Senator has
half an hour, by the time his time
expires my amendment will be out of
the typewriter.
[p. S18564]
-------
STATUTES AND LEGISLATIVE HISTORY
1021
Mr. SPARKMAN. Very well. We
will go ahead.
PRIVILEGE OF THE FLOOR
Mr. BYRD of West Virginia. Mr.
President, I ask unanimous consent
on behalf of the Senator from Con-
necticut (Mr. RIBICOFF) that Mr. John
Koskinen and Mr. Theodore Leary of
his staff be allowed the privilege of
the floor during consideration of the
Sparkman amendment and any
amendments thereto.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Who yields time?
Mr. SPARKMAN. Mr. President, I
ask unanimous consent that Mr.
Robert Locklin of my staff also be
permitted the privilege of the floor
during consideration of this amend-
ment and any amendments thereto.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. BYRD of West Virginia. Mr.
President, at the request of the Sena-
tor from Maine (Mr. MUSKIE), I ask
unanimous consent that Richard Fay
be allowed on the floor of the Senate,
except during roll call votes, while the
Senate is debating H.R. 10947.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. SPARKMAN. Mr. President,
do I correctly understand that we
have 30 minutes to a side on this
amendment?
The PRESIDING OFFICER. The
Senator is correct.
Mr. SPARKMAN. I yield myself 5
minutes.
The PRESIDING OFFICER. The
Senator from Alabama is recognized
for 5 minutes.
Mr. SPARKMAN. Mr. President, I
ask unanimous consent that the names
of the Senator from Arkansas (Mr.
FULBRIGHT) and the Senator from
West Virginia (Mr. RANDOLPH) be
added as co-sponsors of this amend-
ment.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. SPARKMAN. Mr. President.
this amendment has to do with indus-
trial development bonds. Senators will
recall that several years ago, the
Congress authorized tax-exempt status
for industrial development bond issues
not exceeding $5 million. During the
time that Congress was considering
this legislation, as a part of a compro-
mise worked out with the Treasury
Department, the section providing ex-
emption for these small issues made
the further provision that the exemp-
tion be available only if the total
capital expenditures made on the de-
velopment project during the 6-year
period beginning 3 years before the
date of the bond issue and ending 3
years after that date did not exceed
$5 million.
Mr. President, this provision in the
law has created a number of prob-
lems. Obviously, when one of these
exempt bond issues is used, the indus-
try for which it is used is limited in
the amount of further capital expendi-
tures that it, or anyone else, may
make on the industrial development
project. This is because of the fact
that, under the law as presently writ-
ten, should the capital expenditures
on the project amount to $1 more than
$5 million during the 6-year period,
the tax-exempt status of the bonds is
lost. This not only affects the market-
ability of the bonds; it brings about
numerous requests for tax rulings on
the question of what constitutes a
capital expenditure, and, more impor-
tant, it has the effect of discouraging
industrial expansion.
Mr. President, this provision in the
law has simply created so many prob-
lems that it has seriously hindered
the utilization of this very fine pro-
gram which contributes so much to
industrial development. My amend-
ment will clear up this provision in
the law by doing away with the 6-year
limitation on capital expenditures. If
my amendment is adopted, the tax ex-
emption will continue to be limited to
-------
1022
LEGAL COMPILATION—GENERAL
issues of no more than $5 million. The
amendment simply removes the re-
striction against further capital ex-
penditures. Of course, if further cap-
ital expenditures are made and if they
are financed by bonds, those bonds
would be taxable.
Mr. President, there is the provi-
sion in the law that the limitation on
these bond issues will not apply to is-
sues which are used to provide vari-
ous kinds of public facilities, one of
which is water systems. However, this
provision has been interpreted by reg-
ulations insofar as water systems are
concerned to cover only water systems
which serve a single municipality or
two counties, whichever is the greater.
In many areas of the country, there is
a need for water systems which serve
more than two counties.
Accordingly, my amendment would
also remove this restriction.
Mr. President, the exemption in our
tax laws for small issues of industrial
development bonds has made a tre-
mendous contribution to industrial de-
velopment throughout the country. It
has been especially helpful in provid-
ing jobs in rural areas of the coun-
try. All Senators are aware, I am
sure, of the great need to provide jobs
in rural areas in order to halt the in-
creasing urbanization of our popula-
tion. I do not mean to say that this
program has not been helpful in urban
areas. It has. But it has truly made
a significant contribution in rural
America.
Mr. President, I reserve the re-
mainder of my time.
Mr. President, I yield 5 minutes to
the Senator from Arkansas (Mr. Mc-
CLELLAN).
The PRESIDING OFFICER. The
Senator from Arkansas is recognized
for 5 minutes.
Mr. McCLELLAN. Mr. President, I
wish to commend the distinguished
Senator from Alabama (Mr. SPARK-
MAN) for offering this amendment,
and I am very happy that I am per-
mitted to cosponsor it.
Mr. President, national attention
has been focused on the pressing
plight of our cities for so long and
with such intensity that we have often
overlooked the equally pressing prob-
lems of our rural areas.
Today, however, that situation is
changing and concern over the deterio-
rating economic conditions of many of
our rural sections is being voiced
daily. The President has spoken on the
issue many times. And in the last
Congress more than 40 bills were in-
troduced dealing with rural problems.
During the latter part of the 91st
Congress, I urged the President in
Senate Resolution 463, to adopt and
implement a national policy which
would encourage industry to decen-
tralize and expand in rural areas.
Thirty-eight Senators cosponsored
that resolution. This year I introduced
S. 10, a more comprehensive version
of that resolution. To date 43 Sena-
tors have joined me in cosponsoring
this bill. I am hopeful of getting this
bill passed during this Congress.
Some hearings have been held and
more are to be scheduled.
Mr. President, S. 10 has a dual ob-
jective—to revitalize withering, rural
economies while at the same time giv-
ing urban areas—especially our de-
caying and compacted inner cities—
an opportunity to concentrate on their
own programs of revitalization and
restoration.
S. 10 is not a complicated bill. It
would simply establish a national
growth policy by encouraging rural
development and thereby reverse pres-
ent migration trends which only serve
to further drain the ebbing resources
of our major cities.
The pending amendment to the tax
bill to remove restrictions on the $5
million limitation on tax-exempt in-
dustrial development bonds is, I be-
lieve, another effective way to help
-------
STATUTES AND LEGISLATIVE HISTORY
1023
develop rural America. Certainly, it
is in keeping with the expressed con-
cern over trying to help some of our
job-starved rural areas. As members
know, present law prohibits public
financing support of large projects by
limiting the capital spending of the
recipient firm to a total of $5 million
in any one location over a period of 3
years before and 3 years after the
issue. In my judgment this limitation
should be removed, thereby providing
much more flexibility to municipalities
which are trying to build an indus-
trial base and generate jobs.
My own view is that the Senate
should seriously consider raising the
limitation from $5 million to $10 mil-
lion. Certainly at today's inflated
prices an increase to $10 million is
modest.
The industrial development bond is
a simple, straight-forward method of
helping the rural areas to help them-
selves. It does not involve a big new
Government agency or a complex Fed-
eral administrative apparatus. It
simply gives the people an opportunity
to use this developmental tool as a
means to grow and to create new jobs.
Prior to 1968 municipalities had
the authority to issue tax-exempt in-
dustrial bonds. In 1968 the issues were
limited first to $1 million and then to
$5 million with certain restrictive pro-
visions. I was pleased to join with the
Senator from Nebraska (Mr. CURTIS)
in sponsoring legislation to increase
the limitation to $5 million (S. 3782,
90th). That increase was subsequently
incorporated into law by way of an
amendment to a revenue act. The
House accepted the increase to $5 mil-
lion; however, it did impose restric-
tions which were written into the final
law. The limitation and restrictions
[p. S18565]
were deemed necessary since there
were apparently some abuses in the
authority.
Mr. President, I concur in the need
to place a reasonable limitation on the
authority—a limitation that gives due
regard for Federal revenues—and I
have no reservations about imposing
appropriate restrictions to curb any
possibilities of abuses.
In my judgment, however, we are
unnecessarily restricting and hamper-
ing rural growth by unrealistic limi-
tations on these issues.
Mr. President, our rural areas need
help.
If we want to be constructive and
successful in our efforts to put rural
America back into the economic main-
stream;
If we want to effectively implement
our concern about the lack of jobs in
those areas;
If we are ever to reverse the migra-
tory trends that are depleting the
countryside and adding to the big-city
woes, then we should adopt this mod-
est amendment.
Mr. President, this is what has hap-
pened in my State with respect to
this amendment.
According to information furnished
by the Arkansas Industrial Develop-
ment Commission, Arkansas has had
306 issues of industrial bonds since
June 16, 1959, in the amount of
$667,594,350. The industries involved
employ 50,553.
Since the limitation on these bonds
was put into effect in October 1968,
there have been 61 issues in the
amount of $114,188,000 to plants em-
ploying 7,909.
Thus, in the 9 years before the limi-
tation, average annual issues totaled
$61,489,593 with a resulting average
total jobs amounting to 3,738. In the
3 years since the limitation was
placed on industrial bonds, the aver-
age annual issues totaled $38,062,783
with jobs averaging 2,636.
Average annual issue Jobs
$61,489,593—Prelimitation 3,738
$38,062,783—Postiimitation 2,636
$23,426,810 1,102
In other words, Mr. President, the
annual growth rate was 1,100 jobs
-------
1024
LEGAL COMPILATION—GENERAL
greater before the limitation was im-
posed than at the present time.
The PRESIDING OFFICER. The
time of the Senator has expired.
Mr. LONG. Mr. President, I yield
the Senator from Arkansas 1 addi-
tional minute.
The PRESIDING OFFICER. The
Senator from Arkansas is recognized
for 1 additional minute.
Mr. McCLELLAN. Mr. President,
these jobs that are being kept in my
State are responsible for relieving the
pressure on the big cities and con-
gested centers of this country where
people go to find jobs. If they cannot
find jobs, they wind up on the relief
rolls.
For this reason, it is much cheaper
to grant this tax exemption. It is
much more economical when the Gov-
ernment provides these jobs where the
people are born and raised than to
pay the welfare costs arising from
their relocation.
States are not able to finance the
bonds without this tax exemption.
Without it the people will go into the
metropolitan centers where they can-
not find jobs and then go on welfare
where they become a burden to that
community and a burden to the Gov-
ernment.
The amendment should be agreed to.
Mr. LONG. Mr. President, I favor
the amendment. I yield to the Senator
from Arizona.
Mr. FANNIN. Mr. President, I
yield myself 5 minutes.
The PRESIDING OFFICER. The
Senator from Arizona is recognized
for 5 minutes.
Mr. FANNIN. Mr. President, I cer-
tainly agree that we want to help pro-
vide jobs for our people. At the same
time, we do have problems as to how
it is done.
Mr. President, this amendment to
section 103 of the Internal Revenue
Code would again open the door to
abuse in the area of sale—and lease
back of property by municipalities to
corporations for the purpose of un-
fairly enticing corporations to relo-
cate at the expense of the Federal
Government.
Section 103 of the code, provides
that interest on obligations of State
and local governments generally is ex-
empt from Federal income tax. The
term "obligations" means some kind
of a written instrument executed by
the State or political subdivision
thereof, in the exercise of its borrow-
ing power.
The Revenue and Expenditure Con-
trol Act of 1968 withdrew tax exempt
status from industrial revenue bonds
which State and local governments
were using to finance and attract pri-
vate industrial development within
their jurisdictions. This legislation ap-
plies generally to industrial develop-
ment bonds issued after April 30,
1968, and was intended to prevent
State and local governments from
abusing the tax-exempt status of their
obligations by using it as a basis for
interstate competition to attract in-
dustry. The legislation, however, pro-
vides a special exemption for indus-
trial development bonds which are
part of an issue of $1 million or less
and where substantially all of the pro-
ceeds from the issue are used first to
acquire, construct, reconstruct, or im-
prove land or depreciable property, or
second to redeem all or part of a
prior bond issue which was issued to
acquire the property described above.
Mr. President, if we increase the
limitations from $1,000,000 to
$5,000,000 we will again be in an area
where this method of financing is sub-
ject to abuse.
Mr. President, this is my great con-
cern. A similar amendment was con-
sidered in the committee and voted
down. It was a little more expensive
in amount, but not as to coverage.
The cost to the government would be
less expensive, though the issue was
up to $10 million rather than $5 mil-
lion. However, as I say, it did not pro-
-------
STATUTES AND LEGISLATIVE HISTORY
1025
vide the coverage that is provided
under the pending amendment.
Mr. President, this is, from every-
one's standpoint, a very undesirable
change in the tax law. It is proposed
under the guise of benefiting local
governmental authorities, but in fact
it will operate to the serious detri-
ment of the overwhelming majority of
State and local governments.
Industrial development bonds are
simply a device to enable private busi-
ness to borrow funds by using the tax
exemption privilege of State and local
governments. The device arose as a
means of attracting industry to a lo-
cality by the significantly lower fi-
nancing costs available through tax
exempt borrowing.
This device was stopped by Con-
gress in 1968 because nearly every
State had begun to issue industrial
development bonds. Before Congress
acted, the ability of any one State or
locality had been, for the most part,
neutralized; on the contrary, the State
and local governments had found it
necessary to offer the tax exempt
financing benefits to industry as a de-
fensive matter—they had to offer this
advantage to keep from losing indus-
try. The problem we have is that the
States outbid each other. I know that
most of the States in this country now
have provision in the State to permit
issue of these bonds.
The principal undesirable result
that flowed from all of this was the
increased competition for the very
limited funds available for purchase
of tax exempt bonds. This, of course,
forced the interest rate on all tax ex-
empt issues to rise, in turn raising
significantly the financing costs of
States and localities attempting to
meet the pressing demands for capital
needed to provide critical govern-
mental services such as police and fire
protection, schools, and sewage dis-
posal.
Thus the 1968 legislation served its
purpose well. Appropriate exceptions
were made for semigovernmental
functions carried on by private indus-
try which had traditionally been fi-
nanced through tax exempt bonds—
such as airports, mass transit facil-
ities, pollution control facilities, and
others. Also an exception was made
for issues of $1 million and less.
The present amendment would in-
crease the $1 million exemption to $5
million; to that extent it would allow
the competition among States and lo-
calities to be renewed—to the detri-
ment of financing for traditional gov-
ernmental functions.
In short, a vote for this amendment
is a vote against the cities and other
local governmental authorities most in
need of help. The least we can do is
help these hard-pressed local govern-
ments by protecting the integrity of
their tax exempt financing privilege.
The cost is estimated at $350 mil-
lion.
Mr. President, to go into this mat-
ter in a little more depth I want my
colleagues to know that the Treasury
is strongly opposed to this amend-
ment.
Under present tax law, a State or
local government may issue up to $5
million of tax-exempt industrial reve-
nue bonds, but only if the total capital
expenditures with respect to the facil-
ity being financed by the bonds do not
exceed $5 million during the 3 years
before, and the 3 years after, the date
of issue. The proposed amendment
would increase this $5 million exemp-
tion to $10 million.
Industrial development bonds are a
mechanism to provide tax-exempt fi-
nancing for private industry. Typi-
cally, a State or local government will
issue its tax-exempt bonds and use
the proceeds to construct a facility
for the use of a
[p. S18566]
private business. The facility is leased
to the private user at a rental
sufficient to meet the debt service on
the bonds. Since the interest paid on
-------
1026
LEGAL COMPILATION—GENERAL
the bonds is exempt from Federal
taxes, the cost of borrowing is lower
for the municipality, and this savings
is passed on to the industrial user in
the form of a lower rent.
At current interest rates, the avail-
ability of tax-exempt financing repre-
sents a significant savings in the
annual interest paid with respect to
borrowings to finance such facilities.
For example, if the taxable interest
cost on a $10 million facility is 7.5
percent and the tax-exempt cost is
5 percent, the proposed amendment
would result in an annual savings to
the user of approximately $250,000.
Over the life of a 20-year bond, the
use of tax-exempt financing could re-
sult in a subsidy of some $5 million
for each facility.
This tax bill already includes two
significant steps to reduce the cost of
capital equipment for industry. The
7 percent job development credit is
designed to reduce the cost of new
machinery and equipment and thus
facilitate the construction of new
factories. The new class life deprecia-
tion system represents a liberalization
of tax depreciation policies on capital
investment and also will act as such
an incentive. These incentives en-
courage new capital investment in a
healthy way which will increase the
productivity of our workers without
any serious and disruptive side effects
on the economy.
Additional tax incentives for indus-
trial investment in the form of tax-
exempt financing through industrial
development bonds will, however, have
very serious disruptive effects on State
and local government financing, and
this additional kind of incentive sim-
ply is not necessary or advisable at
this time.
The provisions in this bill are also
opposed by the Securities and Ex-
change Commission because other
problems are involved.
I have a memorandum from the
Securities and Exchange Commission
which states in part:
Although it does not appear on the face of
the bill, the proposed amendment would
also affect the amount of such bonds which
would be exempt from certain provisions of
the Securities Act of 1933, the Securities Ex-
change Act of 1934 and the Trust Indenture
Act of 1959, in view of the provisions of Title
IV of the Employment Security Amendments
of 1970 (Public Law 91-373) which were en-
acted August 10, 1970, as explained below.
Mr. President, I ask unanimous con-
sent that the memorandum prepared
by the Securities and Exchange Com-
mission be printed in the RECORD at
this point.
There being no objection, the memo-
randum was ordered to be printed in
the RECORD, as follows:
MEMORANDUM PREPARED BY THE SECURITIES
AND EXCHANGE COMMISSION FOR THE SENATE
COMMITTEE ON FINANCE WITH RESPECT TO
S. 1644, 92D CONGRESS
S. 1644 which was introduced on April 23,
1971 by Senator Dole, would amend Section
103(c) (6) of the Internal Revenue Code of
1954 so as to increase the small issue exemp-
tion thereunder for certain classes of indus-
trial development bonds from $5,000,000 to
$10,000,000 under Clause (D), and from
$250,000 to $500,000 under Clause (F).
Although it does not appear on the face
of the bill, the proposed amendment would
also affect the amount of such bonds which
would be exempt from certain provisions of
the Securities Act of 1933, the Securities Ex-
change Act of 1934 and the Trust Indenture
Act of 1939, in view of the provisions of Title
IV of the Employment Security Amendments
of 1970 (Public Law 91-373) which were en-
acted August 10, 1970, as explained below.
Insofar as S. 1644 would increase the
amount of industrial development bonds which
would be exempt under the Securities Act of
1933, the Securities Exchange Act of 1934 and
the Trust Indenture Act of 1939, all of which
are administered by this Commission, the
Securities and Exchange Commission would
be opposed to enactment of the bill in its
present form. However, the Commission takes
no position with respect to the effect of the
bill on the exemptions for such bonds under
the Internal Revenue Code as such, and this
memorandum will discuss only those aspects
of the bill which would have an impact on the
federal securities laws mentioned above.
I. BACKGROUND OF PERTINENT FEDERAL
SECURITIES LEGISLATION
The Securities Act of 1933 was enacted to
afford to investors generally full and fair
disclosure of the nature and character of the
-------
STATUTES AND LEGISLATIVE HISTORY
1027
securities which are offered for sale in inter-
state commerce or through the mails so as to
enable them to exercise an informed judg-
ment regarding their suitability for their in-
vestment objectives.
The Securities Exchange Act of 1934 was
enacted the following year to provide gen-
erally for continuous information to be avail-
able to securityholders regarding the issuer
of securities listed on national securities ex-
changes which they may have acquired, to
give them a voice with respect to their in-
terests in the issuer and to prevent unfair
use by corporate insiders of information re-
garding the issuer which is not available to
all securityholders. This Act was amended
in 1964 to extend such benefits and protec-
tions to holders of unlisted securities of
issuers having over $1,000,000 in assets and
500 or more shareholders.
The Trust Indenture Act of 1939 was en-
acted to afford to holders of debt securities
the benefits of disinterested and impartial
trustees, under trust indentures meeting spe-
cified statutory requirements, to look out for
their interests and to act in their best interests
in the event of a default by the obligor on
the securities, as well as to eliminate conflicts
of interests between such trustees and the
issuer and underwriters of such securities.
Certain exemptions are provided by each of
these Acts for securities of certain classes, for
securities involved in certain types of trans-
actions, or for securities issued by certain
classes of issuers. Among the latter are the
exemptions provided in Section 3(a) (2) of
the Securities Act of 1933- [15 U.S-C. 77c(a)
(2)] and Section 3(a) (12) of the Securities
Exchange Act of 1934 [15 U.S.C. 78c(a) (12)]
for securities issued or guaranteed by the
Federal, State or local municipal govern-
ments or their political subdivisions or in-
strumentalities.
Prior to enactment of Public Law 91-373,
Section 3 (a) (2) of the Securities Act of 1933
exempted from all except the anti-fraud pro-
visions of that Act:
"Any securities issued or guaranteed by the
United States or any Territory thereof, oo- by
the District of Columbia, or by any State of
the United States, or by any political sub-
division of a State or Territory, or by any
public instrumentality of one or more States
or Territories, or by any person controlled or
supervised by and acting as an instrumental-
ity of the Government of the United States
pursuant to authority granted by the Con-
gress of the United States, . . ."
During such period, Section 3(a) (12) of
the Securities Exchange Act of 1934 provided
that for the purposes of that Act:
". . . The term 'exempted security* or 'ex-
empted securities' shall include securities
which are direct obligations of or obliga-
tions guaranteed as to principal and interest
by the United States; such securities issued
or guaranteed by corporations in which the
United States has a direct or indirect interest
as shall be designated for exemption by the
Secretary of the Treasury as necessary or ap-
propriate in the public interest and for the
protection of investors; securities which are
direct obligations of or obligations guaran-
teed as to principal and interest by a State
or any political subdivision thereof or any
agency or instrumentality of a State or any
political subdivision thereof or any municipal
corporate instrumentality of one or more
States; . . ."
Section 304(a) (4) of the Trust Indenture
Act of 1939 [15 U.S.C. 777d(a)(4)] incor-
porates by reference for the purposes of this
Act the exemption set forth in Section 3(a)
(2) of the Securities Act of 1933 and in Sec-
tion 3(a) (12) of the Securities Exchange Act
of 1934.
II. HISTORY OP EXEMPTION FOR INDUSTRIAL
REVENUE BONDS
A, Under The Federal Securities Laws
Industrial revenue bonds as in use today
were unknown at the time of the passage of
the Securities Act of 19&3 and the Securities
Exchange Act of 1934. Their genesis springs
from the municipal revenue bonds which
came into existence during the mid-30s at
a time when municipalities had reached the
maximum permissible limits of their legal
debt obligations or taxing power. At that
time a new type of security was devised to
raise funds with which to acquire and pro-
vide for the benefit of the citizens of a com-
munity certain services which prior to then
might normally have been obtained with
funds raised through taxation. Such serv-
ices included new toll roads, bridges, tunnels,
as well as airports, municipal water works,
municipal power plants, sewer and sewage
disposal systems, etc. Revenues obtained from
such service were designated to be used for
the payment of principal and interest on such
revenue bonds, and the holders of such bonds
could look to such sources for payment, except
that in some cases the full faith and credit of
the municipality or State issuing such bonds
were also pledged in an effort to obtain more
favorable interest rates.
The present-day industrial revenue bond
came into existence after World War II as
a variation on the municipal revenue bond,
but for an entirely different purpose. It was
used as an inducement to entice manufac-
turers and other industries and employers to
move into their communities so as to provide
jobs as a solution to the post-war unemploy-
ment problems, and also to help boost sagging
local economies. Funds obtained from their
sale were employed in the purchase of land
-------
1028
LEGAL COMPILATION—GENERAL
and construction of plants thereon which were
then leased to such potential employers and
businesses on a long-term basis generally
geared to the normal life expectancy of the
plant which had been constructed. Such bonds
usually provide that the revenues obtained
from such lease arrangements are pledged to
the payment of interest and principal on the
bonds in question, and the purchaser can look
only to such revenues for repayment since the
full faith and credit of the issuing mu-
nicipality or authority are not pledged there-
under and they cannot be paid- from tax
revenues. Such arrangement is designed to
obviate any constitutional challenge on the
right of a municipality or an agency thereof
to issue such securities for such private pur-
poses and on the issuance of general obliga-
tion bonds without a vote of the electorate.
As a fringe benefit, the municipalities may
[p. S18567]
also exempt the lessee from local taxation on
such property for certain periods primarily
because title to the lands is in the name of
the municipality or its agency. Lease pay-
ments in such cases are normally scaled so
as to pay off the entire obligation on the
bonds in question during the life of the lease.
As industrial revenue bonds grew in popu-
larity as a means of encouraging local eco-
nomic expansion, the amounts required to
accomplish such purposes increased, and
problems in financing were created since the
local investors could not always absorb all of
the issues proposed. In such cases, such
bonds began to be offered in neighboring
States and to be underwritten by under-
writers and offered in interstate commerce.
When brought to the attention of the Com-
mission, the securities in question were
found not to meet the test for exemption un-
der the Securities Act of 1933 when they
were offered and sold outside of the State,
and thus were not eligible for either the ex-
emption in Section 3(a) (11) of the Act for
purely local financing, or the exemption in
Section 3 (a) (2) of the Act since investors
could not lock to the government or govern-
mental agency named thereon for payment,
but could only look to the revenues produced
on the property constructed for private
lessees not engaged in any essential govern-
mental function or service for the commu-
nity within the meaning of that section. For
the same reason they failed to meet the re-
quisite test for exemption under Section 3
(a) (12) of the Securities Exchange Act of
1934 and were likewise not exempt under the
Trust Indenture Act of 19&9.
After asserting this conclusion on a case by
case basis for several years the Commission
decided in February 1968 to clarify this posi-
tion by publishing a proposed rule under
both Acts for public comment [Release NOB.
33-4896, 34-8248, published at 33 Federal Reg-
ister 31421. On August 28, 1968, the Com-
mission announced adoption of Rule 131
under the Securities Act of 1933 [17 CFR
230.131] and Rule 3b-5 under the Securities
Exchange Act of 1934 [17 CFR 240.8b-5], in
Release Nos. 33-4921, 34-8388 [published at
33 Federal Register 12647 ]. Copies of these
rules as proposed and adopted are attached
thereto, and the releases contain an ex-
planation of the rationale behind their adop-
tion.
Following adoption of such rules, some
municipalities raised questions concerning the
impact of these rules on the issuance of
bonds by municipal and other governmental
units of the type described earlier as mu-
nicipal revenue bonds, and the Commission
thereupon amended Rule 131 and 8b-5 to
make it clear that those bonds issued by a
State or municipality to finance revenue
producing projects of a governmental service
nature such as toll roads, municipal water
systems, transportation facilities, municipal
recreational facilities and the like were still
regarded as exempt under Section 3(a) (2) of
the Securities Act of 1933- and Section 3(a)
(12) of the Securities Exchange Act of 1934 as
were also the industrial revenue type bonds
under which the full faith and credit of the
State or municipality were pledged for pay-
ment of principal and interest. The amend-
ment to these rules was to make it clear that
only those industrial revenue bonds for the
payment of which the investor-purchaser
could look only to the revenues produced
under the leasing arrangement and not the
full faith and credit or taxing power of
the State or municipality would be subject
to these Acts [attached Release Nos. 33-5055,
34-8850; 35 Federal Register 6000].
B. ENACTMENT OF TITLE IV OF PUBLIC LAW
91-37&
When the Employment Security Amend-
ments of 1970 bill was introduced as H.R.
14705 and passed by the House of Represen-
tatives on November 13, 1969 it contained no
provision relating to exemptions under the
federal securities laws for industrial revenue
bonds, nor was such a provision in the bill
when it was reported out to the Senate hy
its Committee on Finance. However, Title IV
was added to the bill during debate on the
floor of the Senate on April 7, 1970 when it
was presented as an amendment to H.R. 14705
and was adopted by voice vote [Congressional
Record, Vol. 116, Part 8, pp. 10578-10579].
The Conference Committee retained Title IV
in the bill and it was accepted by both Houses
of Congress when the Conference Report was
adopted by them [ Congressional Record, Vol.
116, Part 19, pp. 25608 to 25617, and Daily
-------
STATUTES AND LEGISLATIVE HISTORY
1029
Issue, August 4, 1970, pp. S-12756 to S-12773],
and the bill was enacted into law on August
10, 1970 as Public Law 91-373.
Title JV of Public Law 91-373 amended
both Section 3(a) (2) of the Securities Act
of 19S3 and Section 3 (a) (12) of the Securi-
ties Exchange Act of 1934 to add to each of
them the following language: "or any secu-
rity which is an industrial development bond
(as denned in section 103(c) (2) of the Inter-
nal Revenue Code of 1954) the interest on
which is excluded from gross income under
section 103 (a) (1) of such Code if, by reason
of the application of paragraph (4) or (6) of
section 103(c) of such Code (determined as
if paragraphs (4) (A), (5), and (7) were not
included in such section 103 (c)), paragraph
(1) of such section 103(c) does not apply to
such security;".
As a result of such amendment, securities
which heretofore were not exempt were to be
treated the same as those issued by a State
or municipal government or governmental
authority where the full faith and credit
as well as the taxing power of such State or
municipality were pledged or where they
were issued in connection with the furnish-
ing of an essential governmental function or
activity. The exemption was limited to a
maximum of $1,000,000 except that it could
be increased in certain instances to $5,000,000
by action of the government concerned upon
certain specified findings spelled out in the
Internal Revenue Code.
in. COMMISSION'S VIEWS ON EXEMPTIONS
ADDED BY TITLE W OF P.L. 91-373
The Commission was not afforded an ad-
vance opportunity to comment on the pro-
posed amendment in Title IV of Public Law
91*373 either through an oversight or through
a misunderstanding regarding what may have
been believed to have been a change of posi-
tion. The first notice of such amendment was
received after Title IV had been added and
the bill had been sent to Conference, when the
Commission received informal word of such
action from the Office of Management and
Budget. It was the concensus then that the
only way any Commission objection to Title
IV could be given recognition was by way of
delaying further consideration of the Employ-
ment Security Amendments of 1970 which
could have been fatal to the bill since it was
so close to the time for adjournment of Con-
gress. It was also decided that it would not be
proper at that time for the Commission to
recommend a veto to the President merely on
the basis of the inclusion of this rider since
the bill itself was otherwise a very important
piece of legislation which had been sought
by the Administration and by most members
of the Congress.
Nevertheless, the Commission felt then, and
it feels now, that such an amendment was
ill-advised and runs contrary to the purpose
and intent of the federal securities laws that
investors are entitled to exercise informed
judgment in purchasing securities based on
full and fair disclosure of the nature and
character of the securities which they are
asked to purchase.
The Commission feels that an investor
could easily be misled to believe that he is
purchasing a "government guaranteed" secu-
rity where the name of the State or munici-
pality or that of one of its agencies appears
on the security and only after reading the
fine print does he find out that he cannot
look to that issuer for payment but can only
hope that the enterprise leasing the partic-
ular property involved is successful long
enough to be able to pay off the interest and
principal on the bonds as they become due.
He is not afforded the protections of the
federal securities laws in obtaining the mini-
mum essential information prior to making
up his mind and in giving him the remedies
to which he would be entitled for any breach
of the requirements of such laws. He should
be entitled to know before making such pur-
chase, for example, that his investment would
depend upon the success of the lessee's venture
and that it could be unfavorably affected if
the enterprise leasing the property is not
successful, if the lessee's business should ter-
minate, become insolvent or be rendered
obsolete and no other lessee could be found
for the property on at least the same terms,
and that in any case he could not rely upon
the issuer of the bonds to make good on the
payment of interest and principal if the
revenue generated from the property in ques-
tion is insufficient.
The Commission believes that the Title IV
exemptions added to the federal securities
laws are unfair to the investors concerned
and that there appears to be no substantial
reason for expanding them any further; in
fact the Commission would prefer that such
exemptions be repealed rather than enlarged.
Accordingly, the Commission does not favor
enactment of S. 1644 insofar as it would affect
those provisions of the Internal Revenue Code
incorporated by reference by Title IV of
Public Law 91-373, and which would have
the affect of expanding further the federal
securities laws exemptions for industrial de-
velopment bonds.
NOTICE of PROPOSED RULE 131 UNDER THE
SECURITIES ACT OP 1933 AND PROPOSED RULE
3b-5 UNDER THE SECURITIES EXCHANGE ACT
OF 1934
Notice is hereby given that the Securities
and Exchange Commission has under consid-
eration a proposal to adopt two new rules
relating to "industrial revenue bonds"; Rule
-------
1030
LEGAL COMPILATION—GENERAL
131 under the Securities Act of 1933 and Eule
3b-5 under the Securities Exchange Act of
1934. "Industrial revenue bonds" generally are
instruments issued in the name of a govern-
ment or its instrumentality to finance the ac-
quisition of a revenue producing facility which
is leased to a private commercial or industrial
company, to whose specifications the facility
is usually created. The principal and interest
on the bonds are payable from the proceeds
of the lease, and the bonds are not backed
by the taxing power and general credit of
the governmental instrumentality in whose name
they are issued. Such a bond is an instru-
ment that represents: (1) an obligation on
the part of the government or its instru-
mentality to perform certain acts, usually to
collect the rental under the lease and to use
it to discharge interest, sinking fund and
other monetary obligations contained in the
instrument; and (2) an interest in the obli-
gation of the private company to make pay-
ments under the lease in order to provide
funda for payment by the governmental in-
strumentality in whose name the bond is
issued of principal and interest on the bond.
Since the purchaser of an industrial revenue
bond looks principally, if not entirely, to the
lease payments for the payment of principal
and interest on the bond, he is in reality
purchasing an interest in the lease obliga-
tion of the private company. The new rules
are proposed for the purpose of identifying
the interest in the obligation of the private
company as a separate "security" issued by
the private company. These rules do not re-
late to, and have no effect on, the obligation
of the government or its instrumentality nor
do they require registration by the govern-
[p. S18568]
ment or instrumentality. The purpose of
the rules is to provide prospective investors
with adequate information concerning the
nature of the obligation of the private lessee
and sufficient information about the lessee
and its business as well as the terms, nature
and identity of the persons involved in the
distribution to enable investors to make in-
formed investment judgments.
Since the typical industrial revenue bond
financing plan represents a financing by a
private company, investors should be given
information concerning the business, prior
experience, fiscal responsibilities and earn-
ings of the company that has leased the
facility, as well as the terms and conditions
of the lease arrangement, in order to assess
the worth of such investment. The munici-
pality or other governmental unit usually has
no significant obligation under the bond, ex-
cept to the extent of applying lease payments
received from the private company to the
payment of principal and interest. The in-
vestor cannot look to the municipality for
interest payments or repayment of the prin-
cipal; he can look only to the possibility of
success or failure of the private company. The
municipality serves as a conduit through
which the amounts payable under the lease
arrangement flow from the private company
to the bondholder. In these circumstances,
the investor is offered an interest in an ob-
ligation of the private company which is a
"security" within the meaning of the secu-
rities acts and should have the benefit of the
disclosures required by the Securities Act of
1933 and the Securities Exchange Act of 1934
when applicable.
The proposed rules do not question the
availability of the exemption, provided in
Section 3 (a) (2) of the Securities Act, to the
obligations of municipalities or of the states
or their political subdivisions or instrumen-
talities. Such exemption is not available, how-
ever, to the separate security issued by the
private company. Absent an exemption under
the Act, the securities of the private com-
pany will be subject to the registration and
prospectus delivery requirements of Section
5 of the Securities Act. Registration will not
be required by the municipality or other poli-
tical subdivision or instrumentality.
On the basis of available information, it
appears that substantial amounts of these
bonds have been sold to the public. Accord-
ingly, the Commission believes that the pro-
posed rules are appropriate to inform persons
who may be issuers of securities identified by
the rules, as well as person offering, selling,
distributing or dealing in such securities, as
to their obligations under the securities acts.
Consideration should also be given to the
applicability of the Trust Indenture Act of
1939 to the securities identified in the rules.
It should be emphasized that the application
of the registration requirements of the Secur-
ities Act to the securities of private com-
panies which are identified in the proposed
rules is intended to provide investors with
material financial and other information con-
cerning the private company and the nature
and limitations of its obligations. The rules
are not intended to affect the determination
whether to utilize financing plans involving
the issuance of industrial revenue bonds.
PROPOSED RULE 131
Under paragraph (a) of the proposed role,
any part of an obligation evidenced by any
bond, note, debenture, or other evidence of
indebtedness issued by any state or territory
of the United States, any political subdivi-
sion of a state or territory, or any agency or
instrumentality of one or more states, terri-
tories or political subdivision thereof, which
is payable from rentals received in respect
-------
STATUTES AND LEGISLATIVE HISTORY
1031
to property which will be used* under a lease
by or for industrial or commercial enterprises,
shall be deemed to be a separate security
issued by the lessee under the lease. In
addition, as essentially the same kind of
financing plan could be carried out by a gov-
ernmental body or instrumentality loaning:
the proceeds of the bonds to private enter-
prise or selling: the revenue producing facili-
ties to private enterprise on a deferred pay-
ment basis, paragraph (a) provides that any
part of the obligation evidenced by any bond,
etc. which is payable from payments re-
ceived under a loan or sale arrangement, shall
be deemed to be a separate security issued by
the obligor under such loan or sale arrange-
ment.
The proposed rule is directed to financing
plans in which any part of the principal and/
or interest on a bond, note, debenture or
evidence of indebtedness issued in the name
of a government or its instrumentality is
payable from payments which are to be made
under a lease, sale or loan arrangement by
private enterprise for property or money to
be used by industrial or commercial enter-
prises. The rule does not apply to revenue
bonds issued by a state, a political subdivi-
sion, a municipality or a public instrumen-
tality to finance a revenue producing public
project operated by such issuer, such as toll
roads, municipal water systems, transporta-
tion systems or municipal recreational facili-
ties. The rule also is not intended to apply
to financing plans involving the issuances of
revenue bonds which are to be funded by
payments under a lease, sale or loan arrange-
ment if the user of the facility or property
is a state or a political subdivision or pub-
lic instrumentality of a state or a munici-
pality which is the lessee or obligor.
The Commission is aware that for many
years issuers of the securities identified in this
rule have not considered their obligation to
be separate securities and that they have
acted in reliance on the view, which they
believed to be the view of the Commission,
that registration under the Securities Act was
not required. Under the circumstances the
Commission does not believe that such is-
suers are subject to any penalty or other
damages resulting from entering into such
arrangements in the past. Paragraph (b)
provides that the rule shall apply to trans-
actions of the character described in para-
graph (a) only with respect to bonds or
other evidences of indebtedness issued after
the adoption of the rule.
The text of the proposed rule is as follows:
Rule 131. Definition of Security Issued
Under Governmental Obligations.
(a) Any part of an obligation evidenced
by any bond, note, debenture, or other evi-
dence of indebtedness issued by any State
or Territory of the United States, any po-
litical subdivision of a State or Territory,
or any agency or instrumentality of one or
more States, Territories or political subdi-
visions thereof, which is payable from pay-
ments to be made in respect of property or
money which is or will be used, under a
lease, sale, or loan arrangement, by or for
industrial or commercial enterprises, shall
be deemed to be a separate "security" with-
in the meaning of Section 2(1) of the Act,
issued by the lessee or obligor under the
lease, sale or loan arrangement.
(b) This rule shall apply to transactions
of the character described in paragraph (a)
only with respect to bonds, notes, debentures
or other evidences of indebtedness issued
after , 1968.
Proposed Rule Sb-5
The Commission believes that it is appro-
priate to adopt proposed Rule 3b-5 to make
it clear that securities identified under Rule
131 are also "securities" within the meaning
of Section 3(a) (10) of the Securities Ex-
change Act of 1934. The provisions of the
proposed rule correspond to those of Rule
131. The proposed rule is intended to inform
brokers and dealers who deal in industrial
revenue bonds, that consideration should be
given to the existence of separate securities
issued in connection with the issuance of
industrial revenue bonds, in determining
their obligations under the Securities Ex-
change Act, where any part of the obliga-
tion evidenced by any bond, note, debenture
or other evidence of indebtedness is payable
from payment made in respect of property
or money which is or will be used under
a lease, sale or loan arrangement by or for
industrial or commercial enterprises. Such
separate securities ordinarily would not be
exempted securities within the meaning of
Section 3(a) (12) of the Act.
The text of the proposed rule is as follows:
Rule 3b-5. Non-Exempt Securities Issued
Under Governmental Obligations.
(a) Any part of an obligation evidenced
by any bond, note, debenture, or other evi-
dence of indebtedness issued by any State
or Territory of the United States, any politi-
cal subdivision of a State or Territory, or
any agency or instrumentality of one or
more States, Territories or political subdi-
visions thereof, which is payable from pay-
ments to be made in respect of property
or money which is or will be used, under
a lease, sale or loan arrangement, by or for
industrial or commercial enterprises, shall
be deemed to be a "separate" security within
the meaning of Section 3(a) (10) of the Act,
issued by the lessee or obligor under the lease,
sale or loan arrangement.
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1032
LEGAL COMPILATION—GENERAL
(b) This rule shall apply to transactions
of the character described in paragraph (a)
only with respect to bonds, notes, debentures
or other evidences of indebtedness issued
after , 1968.
All interested persons are invited to sub-
mit their views and comments on the pro-
posed rules, in writing, to the Securities and
Exchange Commission, Washington, D.C.
20549, on or before March 29, 1968. Except
where it is requested that such communica-
tions not be disclosed, they will be con-
sidered available for public inspection.
By the Commission.
OBVAL L. DuBois,
Secretary.
ADOPTION OF RULE 131 UNDER THE SECURITIES
ACT OP 1933 AND RULE 3b-5 UNDER THE SE-
CURITIES EXCHANGE ACT OF 1934
The Securities and Exchange Commission
announced today that it has adopted the
Rule 131 under the Securities Act of 1933 and
Rule 3b-5 under the Securities Exchange Act
of 1934. The new rules relate to "industrial
revenue bonds."
Proposed rules were published for com-
ment on February 1, 1968 in Securities Act
Release No. 4896 (Securities Exchange Act
Release No. 8248). The Commission received
many helpful comments that pointed out
p roblems that would be created by the rules
in the form in which they were proposed,
and that suggested means of overcoming
these problems. In light of these comments,
the Commission determined to revise the
proposed rules to meet the objections raised
in these comments and- incorporate some of
the suggestions for revision.
As was pointed out in the Release announc-
ing the proposed rules, the typical industrial
revenue bond financing plan represents a
financing by a private company. Accordingly,
investors should be given information con-
cerning the business, prior experience, fiscal
responsibilities and earnings of the company
that has leased the facility, as well as the
terms and conditions of the lease arrange-
ment, in order to assess the worth of such
investment. The municipality or other govern-
mental unit usually has no significant
obligation under the bond, except to the ex-
tent of applying lease payments received from
the private company to the payment of prin-
cipal and interest. The investor cannot look
to the municipality for interest payments or
repayment of the principal; he can look only
[p. S18569]
to the possibility of success or failure of the
private company. The municipality serves as
a conduit through which the amounts pay-
able under the lease arrangement flow from
the private company to the bondholder. In
these circumstances, the investor is offered
an interest in an obligation of the private
company which is a "security" within the
meaning of the securities acts and should
have the benefit of the disclosures required
by the Securities Act of 1933 and the Secu-
rities Exchange Act of 1934 when applicable.
There appeared to be a failure on the part
of many persons who submitted comments
to understand that the proposed rules were
interpretive rules that identify securities of
private companies which are offered and solo-
in industrial revenue bond financing plans,
and that the proposed rules were not in-
tended to affect the exemptions for munici-
pal or governmental bonds contained in the
securities acts. In addition, in some of the
comments it was noted that although the
Release announcing the proposed rules
pointed out that the rules would not affect
the exemption for municipal or governmen-
tal bonds, they were broad enough in scope
to have a contrary implication. As a conse-
Quence, the rules have been revised to re-
move such implication.
BULB 131
Paragraph (a) of the rule has been modi-
fied to relate specifically to Section 3(a) (2)
of the Act. This was accomplished by de-
leting the words "State or Territory of the
United States, any political subdivision of
a State or Territory, or any agency or in-
strumentality of one or more States, Terri-
tories or political subdivisions thereof," and
substituting therefor the words "govern-
mental unit specified in Section 3(a) (2) of
the Act."
Many of the comments that were received
pointed out that a definition of the term
"industrial or commercial enterprises" should
be included in the rules, and gave suggestions
as to. how that term should be defined. In
the light of those comments, the Commission
has added a new paragraph (b), which states
that "An obligation shall not be deemed pay-
able from industrial or commercial enterprises
if such obligation relates to a public project
or facility owned and operated by or on behalf
of and under the control of a governmental
unit specified in Section 3(a) (2) of the Act."
This paragraph -would make it clear that
registration is not required where the lessee is
a governmental unit specified in Section 3 (a)
(2) of the Securities Act.
Paragraph (b) of the proposed rule has
been relettered (c) and the word "issued"
in the last line of the paragraph has been
changed to the word "sold" and1 the rule
will become effective January 1, 1969. These
changes were made in response to comments
that pointed out certain technical and tim-
-------
STATUTES AND LEGISLATIVE HISTORY
1033
ing problems that were raised by the proposed
rule.
The rule is directed to financing plans in
which any part of the principal and/or inter-
est on a bond, note, debenture or evidence
of indebtedness issued in the name of a
government or its instrumentality ia pay-
able from payments which are to be made
under a lease, sale or loan arrangement by
private enterprise for property or money to
be used by industrial or commercial enter-
prises. The rule does not have the effect of
requiring registration of revenue bonds is-
sued by a state, a political subdivision, a
municipality or a public instrumentality to
finance a revenue producing public project
operated by such issuer, such as toll roads,
municipal water systems, transportation fa-
cilities and systems or municipal recre-
ational facilities, or revenue bonds which
are to be funded by payments under a lease,
sale or loan arrangement if the user of the
facility or property is a state or a political
subdivision or public instrumentality of a
state or a municipality which is the lessee
or obligor. New paragraph (b) of the rule
is designed to remove all doubt as to the
effect of the rule. In this connection, con-
cern was expressed in many comments that
the rule would have the effect of requiring
registration of bonds issued to finance con-
struction of airports, wharves, recreational
and sporting facilities and convention fa-
cilities. Paragraph (b) would clearly make
the rule inapplicable to the financings of
such facilities that are owned by a munici-
pality and operated by it or a public instru-
mentality.
It should be noted, however, that if the
municipality were not to control the facil-
ity but were to lease it or sell it to a private
enterprise to operate for a profit, the bonds
would be payable from an industrial or com-
mercial enterprise and registration would be
required, absent an available exemption. On
the other hand, the Section 3(a) (2) exemp-
tion would be applicable where a govern-
mental unit having taxing authority or other
resources guarantees payment of the bond
obligation in the event of default under the
lease, or where such governmental unit is
responsible for all the bond payment obliga-
tion even though a portion or all of the facil-
ity is leased to a private enterprise. Further,
whether or not Section 3 (a) (2) of the Act
is applicable, if the securities are offered and
sold exclusively to residents of the state in
which the lessee company is organized and
doing business and in which the facility is
located, the exemption in Section 3(a) (11)
of the Act would be available; or if the se-
curities are not publicly offered, the exemp-
tion in Section 4(2) of the Act would be
available.
It should be noted that the rule relates only
to that part of an obligation evidenced by
industrial revenue bonds which is payable from
an industrial or commercial enterprise. Thus,
if the lease obligation is in an amount less
than the principal amount of the bonds, regis-
tration would be required of only that portion
representing the lease obligation. Similarly, if
a facility were leased to two separate lessee
companies, each of which was obligated to
make lease payments representing a portion of
the principal amount of the bonds, each would
be required to register the respective portion
of the lease obligation.
The Commission has determined, based on a
number of lease obligations that have recently
been registered, that existing rules, procedures
and policies under the Trust Indenture Act of
1939 are adequate in connection with the ap-
plicability of that Act to the securities identi-
fied in the rules. For example, the indenture,
which contains the provisions required by the
Trust Indenture Act of 1939, may be executed
between the trustee and the lessee and the
lessee will be required to file the necessary re-
ports and perform the other obligations of a
obligor thereunder. However, it has been the
practice for the municipality to execute the
indenture and to assign its rights under the
lease to the indenture trustee, in which case
the lessee assumes the statutory functions of
an oblig-or in the lease.
The text of Rule 131 follows:
Rule 13-1. Definition of Security Issued Under
Governmental Obligations.
(a) Any part of an obligation evidenced by
any bond, note, debenture, or other evidence of
indebtedness issued by any governmental unit
specified in Section 3(a) (2) of the Act which
is payable from payments to be made in re-
spect of property or money •which is or will
be used, under a lease, sale, or loan arrange-
ment, by or for industrial or commercial enter-
prise, shall be deemed to be a separate "secu-
rity" within the meaning of Section 2(1) of
the Act, issued by the lessee or obligor under
the lease, sale or loan arrangement,
(b) An obligation shall not be deemed pay-
able from industrial or commercial enterprises
if such obligation relates to a public project or
facility owned and operated by or on behalf of
and under the control of a governmental unit
specified in Section 3(a) (2) of the Act.
(c) This rule shall apply to transactions of
the character described in paragraph (a) only
with respect to bonds, notes, debentures or
other evidences of indebtedness sold after De-
cember 31, 1968.
Rule Sb-5
Kule 3b-5 has been modified in the same
manner as Rule 131.
Rule 3b-5 makes it clear that securities
identified under Rule 131 are also "securities"
within the meaning of Section 3(a) (10) of the
-------
1034
LEGAL COMPILATION—GENERAL
Securities Exchange Act of 1934. The provi-
sions of the rule correspond to those of Rule
131. The rule informs brokers and dealers who
deal in industrial revenue bonds, that consid-
eration should be given to the existence of
separate securities issued in connection with
the issuance of industrial revenue bonds, in de-
termining their obligations under the Securities
Exchange Act, where any part of the obliga-
tion evidenced by any bond, note, debenture or
other evidence of indebtedness is payable from
industrial or commercial enterprises. Such
separate securities ordinarily would not be ex-
empted- securities within the meaning of Sec-
tion 3 (a) (12) of the Act. In such instances all
the provisions of the Exchange Act and the
Commission's rule thereunder will apply to any
part of the obligation evidenced by the bond
which is not issued by a lessee or obligor de-
scribed in Section 3 (a) (12) of that Act.
The text of Rule 3b-5 follows:
Rule 3b-5. Non-Exempt Securities Issued Un-
der Governmental Obligations.
(a) Any part of an obligation evidenced by
any bond, note, debenture, or other evidence
of indebted-ness issued by any governmental
unit specified in Section 3(a) (12) of the Act
which is payable from payments to be made in
respect of property or money which is or will
be used, under a lease, sale, or loan arrange-
ment, by or for industrial or commercial enter-
prise, shall be deemed to be a separate "secu-
rity" within the meaning of Section 3(a)(10)
of the Act, issued by the lessee or obligor un-
der the lease, sale or loan arrangement.
(b) An obligation shall not be deemed pay-
able from industrial or commercial enterprises
if such obligation relates to a public project or
facility owned and operated by or on behalf of
and- under control of a governmental unit
specified in Section 3(a) (12) of the Act.
(c) This rule shall apply to transactions of
the character described in paragraph (a) only
with respect to bonds, notes, debentures or
other evidences of indebtedness sold after De-
cember 31, 1968.
By the Commission.
OBVAL L. DuBois, Secretary.
AMENDMENT OP RULE 131 UNDER THE SECURITIES
ACT OP 1933 AND RULE 8b-5 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
The Securities and Exchange Commission
has amended Rule 131 under the Securities
Act of 1933 and Rule 3b-5 under the Securities
Exchange Act of 1934. Each rule relates to
"industrial revenue bonds" and was designed to
d-efine those circumstances where bonds issued
by a municipality or other governmental unit
specified in Section 3(a) (2) of the Securities
Act and in Section 3-(a) (12) of the Securities
Exchange Act of 1934 would be deemed to in-
volve the issuance of a separate security by an
industrial or commercial enterprise under a
lease, sale or loan arrangement. The purpose
of the amendment is to clarify certain situa-
tions where no
[p. S18570]
such separate security will be deemed to be
involved.
Questions have been raised concerning the
impact of the registration requirements of the
Securities Act and Rule 131 thereunder to the
issuance of bonds by municipal and other gov-
ernmental units to finance airport improve-
ments for leasing to airlines serving their
areas. A similar question has been raised under
Rule 3b-5 as to the existence of a separate
security for the purposes of the Securities Ex-
change Act. These questions have been raised
notwithstanding the following statement which
was included in the Commission's Release No.
4921 under the Securities Act, announcing the
adoption of Rule 131:
". . . The rule does not have the effect of re-
quiring registration of revenue bonds issued by
a state, a political subdivision, a municipality
or a public instrumentality to finance a reve-
nue producing public project operated by such
issuer, such as toll roads, municipal water sys-
tems, transportation facilities and systems or
municipal recreational facilities, or revenue
bonds which are to be funded by payments un-
der a lease, sale or loan arrangement if the
user of the facility or property is a state or a
political subdivision or public instrumentality
of a state or a municipality which is the lessee
or obligor. New paragraph (b) of the rule is
designed to remove all doubt as to the effect of
the rule. In this connection, concern was ex-
pressed in many comments that the rule would
have the effect of requiring registration of
bonds issued to finance construction of airports,
wharves, recreational and sporting facilities
and convention facilities. Paragraph (b) would
clearly make the rule inapplicable to the fi-
nancing of such facilities that are owned- by a
municipality and operated by it or a public
instrumentality."
In view of the concern which has been ex-
pressed that paragraph (b) of Rule 131 as
presently written might be construed as being
applicable only if, for example, a particular
airport facility, such as a hangar or a com-
missary, were to be operated and controlled
by or on behalf of a governmental unit, the
Commission has concluded that paragraph (b)
should be clarified in such respect. The amend-
ment of paragraph (b) of Rule 131 would
make it clear in subdivision (3) thereof that
it is not the purpose of the paragraph to re-
quire as a condition to its applicability that
each separate facility constituting a part of a
public project be operated and controlled by a
governmental unit if the public project as a
whole is owned by and under general control
of a governmental unit or an instrumentality
thereof.
-------
STATUTES AND LEGISLATIVE HISTORY
1035
The amendment also makes explicit in sub-
division (1) what had previously been implicit
in Securities Act Release No. 4921 that the
rules would not apply to any obligation which
is payable not only out of the payments from
the arrangements referred to in paragraph
(a) but also from other substantial sources of
revenue of the governmental unit.
The text of amended Rule 131 (b) under the
Securities Act of 1933 is as follows:
(b) An obligation shall not be deemed a
separate "security" as denned in paragraph
(a) hereof if, (1) the obligation is payable
from the general revenues of a governmental
unit, specified in Section 3 (a) (2) of the Act,
having other resources which may be used for
the payment of the obligation, or (2) the obli-
gation relates to a public project or facility
owned and operated by or on behalf of and
under the control of a governmental unit
specified in such section, or (3) the obligation
relates to a facility which is leased to and un-
der the control of an industrial or commercial
enterprise but is a part of a public project
which, as a whole, is owned by and under the
general control of a governmental unit specified
in such section, or an instrumentality thereof.
The text of amended Rule 3b-5(b) under the
Securities Exchange Act of 1934 is as follows:
(b) An obligation shall not be deemed a
separate "security" as defined in paragraph
(a) hereof if, (1) the obligation is payable
from the general revenues of a governmental
unit, specified in Section 3 (a) (12) of the Act,
having other resources which may be used for
payment of the obligation, or (2) the obliga-
tion relates to a public project or facility
owned and operated by or on behalf of and
under the control of a governmental unit speci-
fied in such section, or (3) the obligation re-
lates to a facility which is leased to and under
the control of an industrial or commercial en-
terprise but is a part of a public project
which, as a whole, is owned by and under the
general control of a governmental unit speci-
fied in such section, or an instrumentality
thereof.
The foregoing action was taken pursuant to
Section 19 (a) of the Securities Act of 1933 and
Section 23(a) of the Securities Exchange Act
of 1934. Since the action relates to interpreta-
tive rules and is simply a clarification of the
Commission's prior interpretation of the scope
of the statutory exemptions for securities of
governmental instrumentalities, the Commis-
sion finds that notice is unnecessary and that
the amendments to the rules may be made ef-
fective immediately. Accordingly, the amended
rules shall be effective as of March 31, 1970.
By the Commission.
OBVAL L. DuBois, Secretary.
Mr. PROXMIRE. Mr. President,
this is, from everyone's standpoint, a
very undesirable change in the tax
law. It is proposed under the guise of
benefiting local governmental author-
ities, but in fact it will operate to the
serious detriment of the overwhelming
majority of State and local govern-
ments.
Industrial development bonds are
simply a device to enable private busi-
nesses to borrow funds by using the
tax exemption privilege of State and
local governments. The device arose
as a means of attracting industry to
a locality by the significantly lower
financing costs available through tax
exempt borrowing.
This device was stopped by Congress
in 1968 because nearly every State
had begun to issue industrial develop-
ment bonds. Before Congress acted,
the ability of any one State or locality
had been, for the most part, neutral-
ized; on the contrary, the State and
local governments had found it neces-
sary to offer the tax exempt financing
benefits to industry as a defensive
matter—they had to offer this advan-
tage to keep from losing industry.
The principal undesirable result that
flowed from all of this was the in-
creased competition for the very
limited funds available for purchase
of tax exempt bonds. This, of course,
forced the interest rate on all tax
exempt issues to rise, in turn raising
significantly the financing costs of
States and localities attempting to
meet the pressing demands for capital
needed to provide critical governmen-
tal services such as police and fire
protection, schools, and sewage dis-
posal.
Thus the 1968 legislation served its
purpose well. Appropriate exceptions
were made for semigovernmental
functions carried on by private indus-
try which had traditionally been fi-
nanced through tax exempt bonds—
such as airports, mass transit facili-
ties, pollution control facilities and
others. Also an exception was made
for issues of $1 million and less.
The present amendment would in-
-------
1036
LEGAL COMPILATION—GENERAL
crease the $1 million exemption to $5
million; to that extent it would allow
the competition among States and lo-
calities to be renewed—to the detri-
ment of financing for traditional gov-
ernmental functions.
In short, a vote for this amendment
is a vote against the cities and other
local governmental authorities most
in need of help. The least we can do
is help these hard-pressed local gov-
ernments by protecting the integrity
of their tax exempt financing privi-
lege.
Mr. RIBICOFF. Mr. President, I
have an amendment to the Sparkman
amendment which I send to the desk.
The PRESIDING OFFICER. Is the
Senator simply sending an amendment
to the desk?
Mr. RIBICOFF. Yes. I will call it
up at the proper time.
The PRESIDING OFFICER. The
amendment is received, and will lie on
the desk.
Who yields time?
Mr. RIBICOFF. Mr. President, will
the Senator from Arizona yield to me
10 minutes in opposition to the
amendment?
Mr. FANNIN. Mr. President, how
much time do I have remaining?
The PRESIDING OFFICER. The
Senator from Arizona has 23 minutes
remaining.
Mr. FANNIN. I yield 10 minutes to
the Senator from Connecticut.
Mr. RIBICOFF. Mr. President, the
problem of the tax treatment of in-
dustrial bonds is not a new one. We
dealt with it first in the Revenue and
Expenditure Control Act of 1968.
When we considered the Renegotia-
tion Act later the same year the treat-
ment of industrial revenue bonds was
liberalized.
The problem which faced us at that
time was that industrial revenue bonds
were being used extensively and often
abused. Originally, industrial revenue
bonds may have had a worthwhile
purpose; namely, to attract industry
to areas in need of economic develop-
ment. This original purpose, however,
has been long gone. According to my
last count there were 44 States using
industrial revenue bonds. As a result,
industrial revenue bonds generally do
not make investment in one State
more attractive than investment in
another State. Instead, these bonds
merely represent an unjustified sub-
sidy reducing the interest cost to in-
dustrial corporations and representing
a tax loophole for wealthy investors.
The worst part of it is—and this is
the point which is usually overlooked—
the tremendous growth in the use of
industrial revenue bonds in recent
years has actually hurt rather than
helped State and local governments.
The demand for increasing and new
varieties of governmental services have
caused States and local governments to
rely more and more on the municipal
bond market to obtain necessary funds.
The increased need for these funds has
placed severe demands on the munici-
pal bond market and driven up the cost
of these bonds. The tremendous growth
of industrial revenue bonds has fur-
ther aggravated this situation since
these bonds have used up the rela-
tively limited quantity of funds avail-
able for State and local bonds. Gen-
[p. S18571]
erally, the effect has been to substan-
tially increase the cost of State and
local government bond financing. Un-
der today's conditions this is the very
last thing we should seek to do.
Mr. President, it was reasons of
this type which led the Senate to
limit the income-tax exemption for
interest on industrial revenue bonds
to a maximum of $1,000,000. Later
some of my colleagues argued that we
ought to permit plants to be built up
to a limit of $5,000,000 on the grounds
that these were small industries. I
approved that proposal. However, the
Congress agreed finally to permit in-
dustrial revenue bonds to be used up
-------
STATUTES AND LEGISLATIVE HISTORY
1037
to a total of $5,000,000 but only where
the total expenditure may with re-
spect to a plant in the period begin-
ning 3 years before and ending 3 years
after the bond issue, aggregated no
more than $5,000,000. Now, the distin-
guished Senator from Alabama (Mr.
SPARKMAN) proposed to take this
restriction off. He would permit any
industrial bond issue to be exempt
up to a total of $5,000,000.
This will have the effect of exemp-
ting a very large portion of all indus-
trial revenue bonds and will almost
put us back into the same position we
were in when the tax-free issues of
industrial bonds were first limited.
The average size of an industrial
plant issue today amounts to about
$9,000,000, so you can see from this
that if we exempt the first $5,000,000
of any issue we will in fact be exemp-
ting more than one-half of all indus-
trial issues if they seek State or local
industrial bond financing. I can think
of no more crippling amendment that
we could provide insofar as State and
local governments, generally, are con-
cerned. Nothing that I can think of
would be so likely to drive up the cost
of the financing and to make it diffi-
cult to finance new issues for school
construction, for highways, for sew-
age treatment plants, and the many
other pressing needs of our local
governments.
The Treasury Department for much
the same reasons that I have given
you, strongly opposes this amendment.
The Treasury Department opposes
this amendment not only because it
increases the use of tax exempt bonds
in a manner which will have serious
disruptive effects on the State and
local bond market, but also because it
narrows the tax base by substituting
more tax exempt income for taxable
income and in this manner extenuates
the problem of tax preferences.
The SEC opposes this amendment
because these issues are excluded from
the reporting requirements of the Se-
curities Act and, as a result, even
though these, in fact, are corporation
issues rather than true Government
issues, investors are not afforded
proper protection.
It is ironic that this amendment
should be added at this time when we
are restoring the 7-percent invest-
ment credit. The 7-percent credit will
be a substantial aid to industrial de-
velopment throughout the country and
certainly we need not add further to
this by increasing the exemption with
respect to interest on industrial bonds.
I strongly oppose this amendment.
Historically we have heard that these
bonds help develop jobs, but the AFL-
CIO has always opposed the program.
Local government supposedly favors
these bonds but the National Associa-
tion of Counties has always objected
to their use. And the Advisory Coun-
cil on Intergovernmental Relations—
representing a broad cross-section of
State, local, and Federal officials—has
sought to have industrial development
bonds totally removed from the tax
exempt market.
We successfully curbed a large part
of the abuses in this program in 1968.
I would hope that we would not sub-
ject the cities and States of our coun-
try to those abuses again.
Mr. President, I therefore urge my
colleagues to oppose the amendment of
the Senator from Alabama.
Mr. FANNIN. Mr. President, if I
believed that this amendment would
provide an advantage to State and
local governments in attracting in-
dustry, I would be very much in favor
of it. But it does not provide an ad-
vantage to State and local govern-
ments in attracting industry since
virtually all States authorize indus-
trial revenue bonds. It does not have
the great appeal that has been ex-
pressed. Congress dealt with this prob-
lem in 1968, and allowed industrial
development bonds up to $5 million
only where the total cost of the facil-
ity was under $5 million. Even with
-------
1038
LEGAL COMPILATION—GENERAL
that restriction, the use of these bonds
is glowing at a faster rate today than
in the early 1960's.
Mr. President, I have a chart which
shows the industrial revenue bond
issues for 1960 to 1970. They reached
a peak in 1967 and 1968 and then fell
off in 1969, following the legislative
action of Congress. These bond issues,
however, started picking up again in
1970.
Mr. President, I ask unanimous con-
sent that the chart be printed in the
RECORD at this point.
There being no objection, the chart
was ordered to be printed in the
RECORD, as follows:
INDUSTRIAL REVENUE BONDS, 1960-70
[Dollar amounts in millions]
Year
Number Average
of amount
issues Amount per issue
1960 .
1961
1962 .
1963 .
1964
1965 .
1966
1967 .
1968
1969 .
1970
55
46
66
69
90
91
124
180
165
68
82
$ 41
72
84
133
192
210
499
1,372
1,606
51
110
$0.7
1.6
1.3
19
2.1
2.3
4.0
7.6
9.7
.8
1.3
Source: Investment Bankers Association
Mr. FANNIN. Mr. President, in
1968, Congress enacted tax changes to
halt the proliferation of industrial de-
velopment bonds. During the 1960's, a
large number of State and local gov-
ernments authorized the issuance of
industrial development bonds. The
practice was initially developed as a
means to attract new industry to un-
derdeveloped areas by offering busi-
ness the use of the issuer's tax exemp-
tion. As more States authorized these
bonds, the competitive advantage in
luring industry to a particular area
was neutralized. Large numbers of
industrial development bond issues
were competing with school bonds,
sanitary bonds, and so forth. Thus,
while the industrial users were sav-
ing money through the use of tax-
exempt issues, there was a corres-
ponding increase in the interest paid
on traditional municipal financings.
Prior to the 1968 legislation limit-
ing the use of industrial development
bonds, there had been a steady in-
crease in the use of this device. In
1960, 55 such issues were sold, repre-
senting a total face amount of $41
million; an average of $700,000 per
issue. In 1968, the last year before the
new provision was in effect, there
were 165 such issues representing an
annual face amount of $1.6 billion;
an average of $9.7 million per issue.
From 1960 through 1968, the aggre-
gate face amount of industrial reve-
nue bonds was over $4 billion.
The 1968 legislation continued to
allow tax-exempt financing of proj-
ects whose total cost does not exceed
$5 million.
In other words, that legislation con-
tinued to allow the use of industrial
revenue bonds for small industrial
plants.
The amendment before us, however,
would extend this privilege of issuing
$5 million of tax-exempt bonds for an
industrial plant to all plants, regard-
less of their size—regardless of
whether a $5 million or $100 million
plant was involved. Under the pro-
posed amendment, the first $5 million
of costs of any industrial plant—re-
gardless of its size—could be financed
by tax-exempt municipal bonds.
Mr. SPARKMAN. Mr. President,
will the Senator yield?
Mr. FANNIN. I yield.
Mr. SPARKMAN. The Senator
pointed out that this big increase
swelled up to 1968.
Mr. FANNIN. Yes.
Mr. SPARKMAN. We all recognize
the fact that there was an abuse of
the old law.
The PRESIDING OFFICER. The
Senator's 2 minutes have now expired.
Mr. SPARKMAN. I yield myself 1
minute.
-------
STATUTES AND LEGISLATIVE HISTORY
1039
We all recognize the fact that it had
been abused.
We agreed to a limitation back in
1968. As I recall it, we wrote it into
the bill on the Senate floor, but when
we got to the House they wrote in
these 6 drag years, under which no
company could spend a dollar on capi-
tal expenditures. We are not changing
the limitation. We are trying to re-
move those 6 years.
This operates primarily under the
section 502 program of the Small
Business Administration. All through
this land we can find places where
these section 502 projects have gone
in and utilized this program and pro-
vided jobs in areas where they badly
needed jobs. We gave liberally to big
business. This is a plea for small
business. The amount is no more in
my amendment than it is under the
present law. It takes away the 6 drag
years.
Mr. PANNIN. I do agree that States
orginally had some benefits. Many indi-
[p. S18572]
vidual States have had benefits, my
own State included. But by 1968, so
many States were issuing these bonds
that the competitive advantage had
disappeared. The procedure we fol-
lowed in 1965 in allowing small issues
of these bonds was to prevent a $100
million plant from being constructed
with it. There were limitations, and
they were called for.
I am concerned about the long-term
effect of the expansion in tax exempt
industrial development financing
which this amendment would permit
and, in fact, encourage. This effect
will be an increase in the cost of
financing for traditional government
projects, such as schools, bridges, po-
lice, and fire protection. States will
have to pay more to finance these serv-
ices because of the subsidies this
amendment will provide to private in-
dustry. In other words, financing for
these activities would be forced to
compete with large industrial develop-
ment bond issues. Local taxpayers
will have to pay higher taxes to fi-
nance their schools, so that some
States can attempt to lure industry
away from other States in an effort
that in the end is bound either to dis-
rupt the economy as a whole or to
fail because all States offer the same
subsidy.
The Senator knows this is a com-
petitive situation. One State will offer
an incentive. Then another State in
competition with it for these indus-
tries will offer the same or more lucra-
tive opportunities for the industry.
So it goes back and forth, without
really making a great change, other
than increasing the cost to the tax-
payers, and here we are talking about
$350 million, which is a sizable sum.
The Securities and Exchange Com-
mission also is opposed to any expan-
sion of the small issue exemption. Un-
der a 1970 amendment to the securi-
ties laws, industrial development
bonds which are exempt as "small
issues" under the tax law are also
exempt from the application of the
Federal securities laws. This means
that prospective investors in such
bonds are not afforded the protection
of the disclosure requirements in
those laws. An investor could easily
be misled to believe that he is pur-
chasing a Government guaranteed se-
curity where the name of the issuing
municipality appears on the security.
Since the proposed amendment would
bring a number of issues into the
category of exempt small issues, it
would have the undesirable effect of
expanding the scope of this exclusion
from SEC disclosure requirements.
Mr. SPARKMAN. Mr. President,
will the Senator yield for a question?
Mr. FANNIN. On the Senator's
time.
Mr. SPARKMAN. Mr. President, I
yield myself 2 minutes.
I have the highest regard for the
Senator from Arizona, but the state-
-------
1040
LEGAL COMPILATION—GENERAL
ment that has been prepared for him
simply does not jibe with the facts
and does not make sense. It does not
cost the Government anything more,
because the limit is still the same, $5
million. It just takes away the 6 years
in which that company or that plant
or that man could not spend one extra
dollar for capital improvements. If he
does, he loses his whole tax benefit.
Why put these chains on him? This is
a small business proposal.
I did not hear this argument made
in connection with rapid depreciation,
which I support. I did not hear any of
this argument in connection with the
7-percent investment credit, which I
support. I think they are both good
for the economy of the country. But
now when we have this small business
provision, which I ako think is good
for the economy of the country, I do
not see how one could stand up here
and blandly vote for rapid deprecia-
tion and investment tax credit—I did,
and I believe in them—but when we
come to the small businessman, say it
is going to cost the Government more
money. It cannot exceed the sum al-
ready provided. The limit is the same.
All we are doing is keeping the law,
except we are saying to small busi-
ness, "When you get this $5 million
tax exempt loan, you are handcuffed
for 6 years. You cannot spend another
dollar."
There is another provision which
lets money made available under the
program which the distinguished Sen-
ator from Vermont wrote into the law
a few years ago go into water and
sewer systems throughout the country.
This has benefited very greatly small
towns and rural areas. There is a
limitation there, under the interpreta-
tion of the Internal Revenue Service,
that they cannot go outside a metro-
politan area or an area that is bigger
than two counties.
I know that in my State there are
places where three or four or five
counties are trying to work together
to get the benefits written into the
law, and which was promised to peo-
ple in the rural areas, which would
provide them with the decent living
provided by water and sewer systems.
That is what we are trying to do. All
this is a part of the amendment. I
say it is a good amendment, which
should be written into law.
Mr. FANNIN. Mr. President, how
much time do I have remaining?
The PRESIDING OFFICER. The
Senator from Arizona has 12 minutes
remaining.
Mr. FANNIN. Mr. President, with
reference to what the distinguished
Senator from Alabama has said, I
would not expect him to be for this
amendment unless he thought it would
increase the issuance of industrial de-
velopment bonds. Now, if it does in-
crease industrial development bond is-
sues, it is going to cost more money.
If I thought we were going to have
additional benefits from the amend-
ment, I would be in favor of what
is proposed, but no one area of the
country would receive any competitive
advantage from the increased usage
of industrial development bonds, be-
cause practically all States now have
that privilege. So I do not think the
amendment would have the effect the
Senator from Alabama refers to.
Moreover, as I indicated, it is not a
small business amendment since it
would allow tax-exempt bond financ-
ing regardless of whether a $10 mil-
lion or a $100 million plant were in-
volved.
I certainly want to help create jobs,
but I do not agree at all that the way
to do that is to encourage the issuance
of industrial development bonds. To-
day, the only one who benefits from
industrial development bond financ-
ing is the private industry which ob-
tains lower cost financing for a plant
it was going to build in any event. The
State issuing the bonds obtains no
benefit and the taxpayers obtain no
benefits.
-------
STATUTES AND LEGISLATIVE HISTORY
1041
There are many reasons why this
proposal should not be adopted. I
think the principal reason, however,
is that it would create tremendous ad-
ditional pressures on the municipal
bond market and thus would drive up
interest costs on all municipal bonds,
especially those affecting our schools
and our other pressing local govern-
mental needs.
I reserve the remainder of my time.
Mr. SPARKMAN. Mr. President,
how much time do I have?
The PRESIDING OFFICER. The
Senator has 15 minutes remaining.
Mr. SPARKMAN. I yield 3 minutes
to the Senator from Tennessee (Mr.
BAKER) .
Mr. BAKER. Mr. President, I thank
my colleague from Alabama for yield-
ing so I may make these remarks in
support of the amendment
I was happy to cosponsor the
amendment which effectuated the com-
promise on this issue when it was
offered by the distinguished Senator
from Alabama some time ago. In
that debate I think all of us agreed—
and the distinguished Senator from
Connecticut was in the forefront of
that debate—that there were substan-
tial abuses in the industrial develop-
ment bond concept.
So a compromise was worked out
that provided for a $5 million limita-
tion on the amount of bonds that
might be sold and still maintain a tax
free status. As I say, I participated
in those negotiations and that com-
promise, and I think it was a good
compromise. I think $5 million is a
realistic and reasonable limitation to
put on them.
But, Mr. President, we now run up
against one of those situations which
not infrequently occur, that some of
our friends in the executive depart-
ment of the Government do not
exactly interpret the statute the same
way we thought we understood it, so
that the unfortunate effect has been
to provide that we put an unrealistic
ceiling on the further operation, de-
velopment, or expansion of facilities
built with the proceeds of industrial
development bonds.
The example used by the Senator
from Alabama, as I understood him,
was that if $5 million in industrial
development bonds were sold, and the
interest income from those bonds qual-
ified as tax-free income, and then
later the lessee company that operated
that plant chose to use its own money,
say $1 million of its own private
funds to expand, upgrade, renovate,
or modernize that plant, then the in-
terest income from the whole $5 mil-
lion would lose its qualification as
tax-free income.
That situation, Mr. President, was
not one of the intended effects of the
compromise we reached. The amend-
ment by the distinguished Senator
from Alabama, in my judgment, does
nothing more than clarify an unin-
tended conflict which has developed
between the interpretation of the
statute as we passed it and what we
as legislators intended at the time.
So I think the amendment is neces-
sary and desirable, and I commend the
Senator from Alabama for offering it.
[p. S18573]
The PRESIDING OFFICER. Who
yields time?
Mr. FANNIN. Mr. President, is
there any Senator who would like to
make a further statement in opposi-
tion?
If not, I am prepared to yield back
the remainder of my time.
Mr. SPARKMAN. No, no, Mr. Pres-
ident, I cannot do that.
Mr. FANNIN. How much time re-
mains, Mr. President?
The PRESIDING OFFICER. The
Senator from Arizona has 8 minutes.
The Senator from Alabama has 12
minutes.
Mr. FANNIN. I reserve the re-
mainder of my time.
Mr. SPARKMAN. Mr. President, I
-------
1042
LEGAL COMPILATION—GENERAL
yield 3 minutes to the Senator from
Georgia (Mr. GAMBRELL).
Mr. GAMBRELL. Mr. President, I
should like first to address a question
to the distinguished Senator from
Alabama with reference to this
amendment, to clarify it for me.
If this amendment is adopted, as I
understand, if there is additional in-
vestment within the 3-year period,
that is not exempted; in other words,
it is only the principal investment
that is made that is under tax-exempt
financing, but any additional invest-
ment would not be, within that period?
Mr. SPARKMAN. Five million dol-
lars is the maximum of the tax ex-
emption. But it is worse than the
Senator says. If the $5 million loan is
made, then for 3 years after that, the
borrower cannot spend one single dol-
lar of capital payments. Suppose
something breaks down, and he has
to buy new machinery. He loses his
exemption. All in the world I am try-
ing to do is take out those 3 years,
before and after.
Mr. GAMBRELL. After the amend-
ment is adopted, if that situation
should arise and an additional invest-
ment should be made, based on bor-
rowed money, would that be subject
to tax exemption?
Mr. SPARKMAN. It would not.
Mr. GAMBRELL. It would not?
Mr. SPARKMAN. It would not.
Only the $5 million would be tax
exempt.
Mr. GAMBRELL. So the effect of
the amendment does not extend the
$5-million limit?
Mr. SPARKMAN. No; not by $1.
Mr. GAMBRELL. This is, I think,
a very important point, because, as
the Senator has said several times,
this is not an effort to increase the
amount of the exemption, and in that
respect does not deny the Federal
Treasury one single tax dollar by way
of any additional exemptions.
My own experience in this field of
municipal finance and tax-exempt fi-
nancing—and the Senator knows this,
I am sure, very well—has been that in
the bond market for municipal se-
curities, any kind of little possible
variation which might cause the bonds
to lose their tax exemption does not
simply impair their marketability, it
just abolishes it. The possibility that
at some later date within 3 years,
someone out there would make a mis-
take or forget they were not supposed
to make a capital investment, is some-
thing that would break the tax-exempt
status, and this is something the
market has no control over. The bonds
are sold into the hands of people all
over the country, and they become
subject to tax exemption. How do you
tell the investor in this market that
his bond has now become subject to
taxation? I think this is an important
point.
The PRESIDING OFFICER. The
Senator's 3 minutes have expired.
Mr. SPARKMAN. Mr. President, I
ask unanimous consent that the names
of the Senator from Texas (Mr.
BENTSEN) and the Senator from Geor-
gia (Mr. GAMBRELL) be added as co-
sponsors of the amendment.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
Mr. SPARKMAN. Mr. President, I
yield 3 minutes to my colleague from
Alabama.
Mr. ALLEN. I thank my distin-
guished colleague.
Mr. President, I urge my fellow
Senators to support amendment No.
655, because it is designed to promote
capital investment by industry and the
creation of additional jobs. I know of
no amendment that has been adopted,
on such a small scale, that will be as
productive as this amendment in pro-
moting capital investment and in cre-
ating jobs.
A companion bill has been intro-
duced in the House of Representatives
by the chairman of the Ways and
Means Committee, Mr. WILBUR MILLS.
I ask unanimous consent that a copy
-------
STATUTES AND LEGISLATIVE HISTORY
1043
of that bill, H.R. 11124, be printed in
the RECORD at this point.
There being no objection, the bill
was ordered to be printed in the
RECORD, as follows:
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled. That (a)
section 103(c) (4) of the Internal Revenue
Code of 1954 (relating to certain exempt
activities) is amended—
(1) by striking out in subparagraph (E)
"energy, gas, or water, or" and by inserting
in lieu thereof "energy or gas,";
(2) by striking out the period at the end
of subparagraph (F) and inserting in lieu
thereof ", or"; and
(3) by adding at the end thereof the fol-
lowing :
"(G) facilities for the furnishing of water,
whether or not to the general public."
(b) Section 103(c)(6) of such Code (re-
lating to exemption from industrial devel-
opment bond treatment for certain small
issues) is amend-ed—
(1) by striking out "$1,000,000" in sub-
paragraph (A) and by inserting in lieu
thereof "$5,000,000"; and
(2) by striking out subparagraphs (D),
(E), (F), (G), and (H).
(c) The amendments made by this Act
shall apply with respect to obligations issued
after January 1, 1970.
Mr. SPARKMAN. Mr. President,
may I ask the Senator, is that not
almost identical with our amendment?
Mr. ALLEN. It is identical, word
for word, except as to the issue date
of the securities proposed to be
affected by the amendment, and a little
different language which will assure
that these water systems provided for
in the amendment will be available on
reasonable demand to the general
public.
This amendment would remove a
provision from the existing law that
pretty well nullifies the exemption
sought to be given thereby, because
the existing law provides that if
the entity issuing the bonds has
made capital investments in the 3
years preceding the issuance of the
bonds, or if it makes capital invest-
ments in the ensuing 3 years, then
the securities cannot be tax exempt.
This puts a tremendous burden on
the issuing entity, and it is self-de-
feating, in that once the bonds are
issued and the improvements are
made, then no further improvements
can be made for 3 years, even if
there is great need for additional
improvements.
So the pending amendment elimi-
nates the 3 back years and the 3
prospective years in which there may
be no capital investments.
There was no real reason for that
prohibition in the original law, that
the junior Senator from Alabama can
detect. This amendment would leave
the ceiling exactly where it is, at $5
million, but would provide a method
for getting the bonds issued and the
capital investment made.
The PRESIDING OFFICER (Mr.
BROCK). The Senator's 3 minutes have
expired.
Mr. ALLEN. I yield myeslf 1 addi-
tional minute.
I know of at least one industry
waiting on the passage of this bill to
add to its existing facilities in my
State, to the extent of several million
dollars. They contemplate putting on
some 2,500 new employees. This bill
does carry the concept of the Presi-
dent's plan to create more jobs, to
provide for more capital investment,
and to promote rural development,
for most of the plants are in small
towns and rural areas.
I urge my colleagues to vote favor-
ably on the amendment.
Mr. SPARKMAN. Mr. President,
how much time do I have remaining?
The PRESIDING OFFICER. The
Senator from Alabama has 4 minutes
remaining.
Mr. SPARKMAN. Mr. President,
the Senator from Alabama will bear
me out in this statement. Under the
industrial bond development plan, we
have been able, in Alabama, to locate
in small towns, in rural areas, many
small businesses that have given em-
ployment to people who needed jobs.
Is that not correct?
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1044
LEGAL COMPILATION—GENERAL
Mr. ALLEN. That is definitely cor-
rect. Furthermore, it carries out the
concept of rural development which
the administration is interested in,
which the Committee on Agriculture
and Forestry is interested in, and
which the Subcommittee on Rural De-
velopment, headed by the distinguished
Senator from Minnesota (Mr. HUM-
PHREY), is greatly interested in.
Mr. SPARKMAN. We have bills
here that the administration sent up,
urging rural development.
Mr. President, one thing I am afraid
of in the President's economic pro-
gram—and I am supporting it whole-
heartedly—the only part in it of
which I am afraid, is that of unem-
ployment. Yet, here is something that
makes it possible to get jobs where
they are needed.
I want to point out another thing. I
want to emphasize what the Senator
from Georgia said. As it stands now,
if this law continues, how are you going
[p. S18574]
to sell a $5 million bond issue?
You would almost have to shave it
down by something so as to make
room for those capital improvements.
The way it is now, you spend $1 on
capital improvements after you get
that loan, and then the tax-exempt
status is lost with respect to the
whole issue. Who would buy a bond
issue of that kind?
Mr. President, I have referred to
section 502 of the Small Business Act.
I want to say that that was written
into the small business law primarily
upon the example that New England
had set. Several States in New Eng-
land, if not all of them, had local in-
dustrial development associations, and
many of them were assisted by the
States. Arkansas had one. It was
primarily upon the example that we
had from those areas that we wrote
into the law section 502. It is under
that section that most of these bond
issues are made. It is a rural devel-
opment program. It is a small business
program. It is one that makes for bet-
ter economy throughout the country,
and we certainly ought to vote for it.
Mr. President, I am ready to yield
back the remainder of my time, if I
have any more time.
Mr. FANNIN. Mr. President, I will
take 2 minutes, and then I will yield
back the remainder of my time.
Mr. SPARKMAN. I reserve the re-
mainder of my time, then.
Mr. FANNIN. Mr. President, why
was this device stopped by Congress
in 1968? Because there is a limited
market for tax-exempt bonds—high-
bracket individual investors—and the
floodings of the market with these
bonds had sharply raised interest rates
on all other bona fide State and local
bond issues—for school financing, road
construction, and other needed State
and local government purposes. I
think we need to reemphasize that.
The net effect of these industrial de-
velopment bond issues is that State
and local taxpayers, in general, pay
a higher interest rate to finance their
government needs so that some States
can lure manufacturing plants away
from other States by enabling the
private business to pay a lower in-
terest rate to finance their factories.
The PRESIDING OFFICER. Does
the Senator from Arizona yield back
the remainder of his time?
Mr. FANNIN. If the Senator from
Alabama will.
Mr. SPARKMAN. I yield back the
remainder of my time.
Mr. FANNIN. I yield back the re-
mainder of my time.
The PRESIDING OFFICER. All
time on the amendment has been
yielded back.
Mr. RIBICOFF. Mr. President, I
have at the desk an amendment to
amendment No. 655 which I believe
could correct some of its deficiencies.
The PRESIDING OFFICER. The
amendment will be stated.
The assistant legislative clerk pro-
ceeded to read the amendment.
-------
STATUTES AND LEGISLATIVE HISTORY
1045
Mr. RIBICOFF. Mr. President, I
ask unanimous consent that further
reading of the amendment be dis-
pensed with.
The PRESIDING OFFICER. With-
out objection, it is so ordered; and,
without objection, the amendment will
be printed in the RECORD.
The amendment is as follows:
On page 2, line 15, insert the following;
Section 103 (c) is further amended by
adding a new paragraph (8) as follows:
(8) Employee Housing: The exception pro-
vided in paragraph (6) shall not apply to
any industrial development bond issued by
any state, territory or possession of the
United States or any political subdivision
thereof that has not complied with the fol-
lowing requirements:
Definitions
(A) As used in paragraph (8), except where
otherwise specified, the following terms shall
bear the definitions provided—
(i) "facility" shall mean any building,
complex of buildings, plant, factory, instal-
lation or other place of business financed by
an industrial development bond which is oc-
cupied by more than 25 employees;
(ii) "company" shall mean any person,
corporation, partnership, or association with
more than twenty-five employees;
(iii) "immediate area" sha]] mean any area
which is within the corporate limits of the
community in which a facility is located and
which is within a reasonable commuting dis-
tance as defined by the Secretary;
(iv) "Secretary" shall mean the Secretary
of Housing and Urban Development or his
designee;
(v) "Commissioner" shall mean the Com-
missioner of the Internal Revenue Service
or his designee;
(vi) "community" shall mean any political
subdivisions of a State;
Community Agreement
(B) (i) Before approving the tax exempt
status for any industrial development bond
issue under this section, the Commissioner
must have received from the Secretary cer-
tification that the community in which the
facility is to be located has entered into an
agreement with the Secretary whereby ade-
quate housing is or will be made available
to persons employed as a result of the con-
struction of the facility.
(ii) Should, after the acceptance of the
agreement by the Secretary, any community
fail to comply with its approved agreement,
the Secretary shall bring suit in the United
States District Court for the District of
Columbia to secure an injunction to require
such community to conform to its agreement.
(iii) The agreement required by paragraph
(B) (i) shall contain a timetable for provision
of the housing units required under the
agreement: Provided* That at least one-half
of such units shall be in existence within six
months after the actual completion date of
the facility, with the remaining units to be in
existence within twelve months after the
completion date.
(C) (i) Should the Secretary determine that
a change in the local situation, the size of the
facility or other relevant factors necessitates
a modification of the agreement, he may ap-
prove such modifications, if they are proposed
by the community or require a community to
make necessary modifications: Provided, That
such modifications do not impede the effectua-
tion or achievement of the purposes of para-
graph (8);
(ii) Should the Chairman determine that,
as a result of the size, location, and accessi-
bility of two or more communities, it would
facilitate implementation of the purposes of
this Act for such communities to develop a
joint agreement he may approve such a plan:
Provided, That any such agreement otherwise
meets the requirements of paragraph (8);
And provided further, That each such com-
munity shall be jointly and severally liable
for specific performance under paragraph (B)
(ii).
(D) The community's agreement shall also
provide the necessary assurances from the
company that any previous employees of the
company who might lose their jobs as a re-
sult of the new facility shall be given the
right of first refusal for the new jobs.
FINANCIAL ASSISTANCE
(E) Each community that files an agree-
ment under paragraph (8) may also file an
application with the Secretary for financial
assistance and the Secretary shall grant to
each an amount not to exceed $100,000 to re-
imburse such community for the expense of
developing an agreement to conform to the
requirements of paragraph (8).
APPROPRIATIONS
(F) For fiscal year beginning July 1, 1971,
and for each fiscal year thereafter there are
authorized to be appropriated sufficient funds
to allow the Secretary to fulfill the require-
ments of paragraph (8).
The PRESIDING OFFICER. Each
side on the amendment to the amend-
ment has 15 minutes.
Mr. RIBICOFF. Mr. President, I
have opposed the use of industrial de-
velopment bonds for many years be-
cause they are a subterfuge which
only serves to undermine the legiti-
mate municipal bond market.
-------
1046
LEGAL COMPILATION—GENERAL
I am also opposed to them because
these tax exempt bonds are being used
by communities which have exhibited
a noticeable lack of concern for meet-
ing the needs of the incoming com-
pany's employees.
I do not believe that such local com-
munities should be allowed to tap the
Federal treasury and then turn their
backs on problems these bonds create
—such as the shortage of housing for
the new workers. Yet this is precisely
what is happening across the Nation.
Federal funds are being used to es-
tablish plants in communities which
do not have an adequate supply of
housing.
Consider the situation nationwide.
The growth of manufacturing and
service jobs in the suburbs and beyond
has begun to distort our labor market
because those most able to fill those
jobs are often unable to reach them.
Our present housing policies have
served to effectively exclude millions
of low- and moderate-income Ameri-
cans from new employment opportun-
ities.
Most of the Nation's housing units
now being constructed are going up
outside the cities. The housing being
built, however, is simply too expensive
for low- and moderate-income fami-
lies. The land is there to be used, but
all but the most expensive housing has
been zoned out through the use of
large-lot zoning and the absence of
any provisions for low density multi-
family housing.
For example, the 20 local govern-
ments in a 400 square mile area
around Princeton, N.J., have zoned
enough underdeveloped land for in-
dustry and research firms to support
1,200,000 jobs. The same towns, how-
ever, have zoned the remaining land
to house only 144,000 workers—one-
tenth of the potential work force.
The effect of such practices is obvi-
ous.
The House Banking and Currency
Committee found earlier this year that
28.4 million families—101 million peo-
ple—cannot afford payments on a
$20,000 mortgage. Yet the median
sales price for an existing single fam-
ily home is now over $25,000.
In fact, approximately 80 percent of
the housing on the market nationally
now is above the level a family with an
[p. S18575]
$8,000 income can afford. This means
that the people who need the jobs
opening up in new areas are trapped
in the central city. The result is a
scarcity of needed employment for the
poor and in some cases an actual
shortage of low- and moderate-income
employees for new concerns. Numer-
ous communities are now discovering
that they have even priced their teach-
ers, firemen, policemen and other
municipal employees out of their own
cities.
The only solution to this housing
shortage and labor market distortion
is to build more housing units near
the new jobs. Unless the Government
begins to assist in building the neces-
sary housing, the unemployment,
welfare and social dependency now
endemic to the central cities will con-
tinue to soar upward at an alarming
rate.
I believe it is unconscionable for the
Federal Government to subsidize the
establishment of industry in a com-
munity which does not have an ade-
quate supply of housing for its em-
ployees.
Yet this is how many tax-exempt
industrial development bonds are be-
ing used.
Too many towns offering such bonds
want the benefits an industry brings
in, but none of the responsibilities,
such as schooling or housing the new
employees.
Furthermore, people in the town
which is losing the industry to another
community find that people who have
worked for 20 or 25 years, no longer
have a job.
-------
STATUTES AND LEGISLATIVE HISTORY
1047
The purpose of this amendment is
simply to bring equity to the situa-
tion. If a community wants to use tax
exempt industrial development bonds,
it has an obligation to arrange for
adequate supply of housing for the
new employees the bonds will bring us.
Furthermore, any employee whose
job is being lost because a plant is
moving from one section of the coun-
try to another section of the country
should have priority on that job. So,
if a company should be moving from
Wisconsin or Rhode Island or Con-
necticut to Alabama, Georgia, or
Arkansas, the employee in Connecti-
cut or Rhode Island or Wisconsin
should have the right of first refusal
on the job opening up in the new
plant.
That, in essence, is the amendment
I have offered to the amendment of
the distinguished Senator from Ala-
bama.
Mr. NELSON. Mr. President, will
the Senator yield for a question?
Mr. RIBICOFF. I yield.
Mr. NELSON. Do I correctly un-
derstand that the theory of the re-
quirement in the Senator's amend-
ment, that they give first preference
to a current employee, is that if we
are going to have legislation which
uses tax exempt revenue bonds, under
a statute passed by Congress, to in-
duce industries to build in a particu-
lar community, they should then be
required to give their older employees
—that is, their current employees—-in
whatever community they are now liv-
ing, the right to their job in the new
plant, as a preferential matter, over
any other new employee?
Mr. RIBICOFF. That is correct.
It has been said that these new
plants will generate new jobs in rural
areas. The distinguished Senator from
Alabama referred to a new plant that
gave 2,500 jobs to people in Alabama.
That is all well and good. But where
did that plant come from, and what
happened to those 2,500 employees in
the community that lost that plant?
Mr. ALLEN. Mr. President, will
the Senator yield?
Mr. NELSON. The Senator from
Connecticut has the floor.
Mr. RIBICOFF. I yield.
Mr. ALLEN. I will state, for the
Senator's benefit, inasmuch as he was
quoting the junior Senator from Ala-
bama, that this is an enlargement of
an existing plant that has been in
Alabama for several decades, and it
is not a plant that has been raided
from another State. It is merely an
enlargement of an existing plant.
Mr. RIBICOFF. I am pleased to be
corrected. But in many instances they
are not the enlargement of existing
plants, but they are plants that are
being taken from one section of the
country to another and are aided by
tax-exempt industrial development
bonds.
Nothing is as cruel as to take a job
from a man who has worked on it and
lived in a community for 20 or 25
years, who is now 50 or 52 years of
age, and who suddenly finds the plant
is sold out from under him, and has
gone to another community, which is-
sues tax-exempt bonds that Uncle
Sam pays for. If that man is willing
to move to the new community, he
should have the first shot at any new
job he can qualify for.
Mr. PASTORE. If the Senator will
yield, as a matter of fact, that is the
historic story of the moving, the
exodus, of the textile industry out of
New England. I mean, concessions
were made in other States to which
we had been making concessions on
this floor time and again because of
their low per capita wealth. In every
case we gave them the advantage and
the consideration because they were
the more depressed States and we
were happy to do this. Then along
with that in those States came special,
nontax situations which were attract-
ing textiles to go out of Rhode Island.
-------
1048
LEGAL COMPILATION—GENERAL
When I was Governor of Rhode Is-
land, the gross income of my State
was 45 percent from the textile indus-
try. Today it is less than 15 percent.
Mr. President, do you know where
those factories are? They are in Ala-
bama, North Carolina, and South
Carolina. They are all over the South.
Mr. RIBICOFF. May I ask the Sen-
ator at that point, what happened to
the workers in Rhode Island who lost
their jobs?
Mr. PASTORE. Many of them went
on relief.
Mr. SPARKMAN. Mr. President,
will the Senator from Connecticut
yield right there?
Mr. RIBICOFF. I am pleased to
yield.
Mr. SPARKMAN. There is not a
single textile plant in the State of
Alabama that came down. We have
had textile plants from 1830 and we
have had them ever since throughout
the State. Furthermore, I want to an-
swer the question of the Senator from
Rhode Island—he may not remember
but JOHN McCLELLAN remembers and
BILL FULBRIGHT remembers, because
they were here when we had a terrific
fight over trying to equalize freight
rates in this country. In those days,
they could buy cotton from the South,
have it shipped to New England,
manufacture it into goods, and then
send it to Chicago and sell it there
more cheaply than we could in the
South, because of freight rates.
Mr. PASTORE. I never resisted
that
Mr. SPARKMAN. I am not saying
that the Senator did, but when those
freight rates were equalized and made
fair, then there was no need to ship
cotton to New England or to manu-
facture it there and ship it back to
the South.
Mr. PASTORE. That may be so
Mr. SPARKMAN. That is the rea-
son the plants came down.
Mr. PASTORE. I am saying that
Federal money was used to finance
and construct the mills—modern
mills
Mr. SPARKMAN. Not in my State.
Mr. PASTORE. I do not know
whether in the Senator's State, but in
the South—in the South
Mr. RIBICOFF. If that is the case,
may I make this comment to my col-
league. If we say the purpose is not
to raid the northern plants then, may
I ask, what objection is there to giv-
ing priority to the northern worker
from the northern plant who has fol-
lowed his job south? I mean, is there
any objection on your part, then, to
complying with a request to give pri-
ority to that northern worker who has
lost his job after 30 years? I would
like an answer to that from my South-
ern colleagues.
Several Senators addressed the
Chair.
Mr. RIBICOFF. I yield to the Sen-
ator from Georgia.
Mr. GAMBRELL. I am not sure I
can answer that question specifically,
but I would like to say that I think
there is a red herring running loose
in this Chamber today, because the
tax-exempt financing we are talking
about is just as available in Connecti-
cut as it is in Georgia. We are not
talking about the matter of conces-
sions to build a textile plant in
Georgia, in North Carolina, in South
Carolina, or in Alabama. The same
financing program can be used to
build textile plants in Connecticut or
in Rhode Island, and if there is a need
to keep jobs in Connecticut or Rhode
Island, this plant can be used.
Mr. RIBICOFF. May I say to the
distinguished Senator from Georgia
that Connecticut does not permit the
use of these bonds. Nevertheless, if a
northern town took a plant from the
South, then the new plant should give
priority to the Southern worker who
lost his job. This should apply through-
out the 50 States.
Mr. PASTORE. Mr. President, I
will give you one example. We were
-------
STATUTES AND LEGISLATIVE HISTORY
1049
called upon to support the TV A. We
supported the TVA. Since they were
not paying any taxes to the Federal
Government, they were able to give
reduced rates to their commercial
users. What happened? You would
pick up the New York Times or News-
week and you would find their invita-
tion, "Come to us because electricity
is cheaper." This was after we had
helped them build the plant at the
TVA, and only because they were tax
free. In our State,
[p. S18576]
because our public utilities are not tax
free, they have to pay taxes to the
tune of 52 percent of their profits. So
that we were losing our mills. So what
did we do? We came on the floor of
the Senate and developed and financed
the TVA and then they used the TVA
to take our industries away from us.
If that is not pirating, I do not know
what pirating is.
Mr. RIBICOFF. Mr. President, I
ask for the yeas and nays on this
amendment.
The yeas and nays were ordered.
Mr. JORDAN of North Carolina.
Mr. President, will the Senator yield
to me?
Mr. RIBICOFF. The Senator from
South Carolina (Mr. HOLLINGS) asked
me to yield to him and I would like to
do that now and then yield later to
the Senator from North Carolina.
Mr. HOLLINGS. Mr. President, my
friend from Rhode Island comes on
and talks about his concern for the
textile mills. Well, he could just as
well be talking about Tokyo now. The
fact is, the Senator could very well
talk about two things: One is about
the municipal tax-free bonds—the in-
dustrial development bonds. There are
no other States developing more in-
dustry in the South than the State of
South Carolina. Governor Hodges and
myself, we never used the new devel-
opment bonds in bringing industry to
our State. We came to the Senator's
State of Connecticut and adopted his
program of industrial and technical
programs and we put those in, but we
never used TVA power in South Caro-
lina, either.
The fact is, that is the worst way
to run industry away, that is, to take
away from the taxing power of a par-
ticular community which is going to
build a school or wants to provide
public facilities. Industry is not com-
ing to southern communities where
they have been denuded of their tax-
ing power by giveaways and gimmicks
and otherwise. They cannot provide
for fine community facilities. They
could say, "Here we have good educa-
tional facilities," and you are in the
wrong key."
Regarding the textile industry, I
had the Senator from Maine (Mr.
MUSKIE) come down and he could not
find it, if it had moved down 10 years
before, because it has gone over to
Tokyo now.
Mr. RIBICOFF. Will the Senator
from Alabama (Mr. SPAEKMAN) yield
time to some of his colleagues on this
colloquy so that I may have a few
minutes left for my side? I will be
glad to yield to the Senator from
North Carolina (Mr. JORDAN) and to
the Senator from Arkansas (Mr. Mc-
CLELLAN) on the time of the Senator
from Alabama.
Mr. SPARKMAN. Mr. President,
how much time do I have remaining?
The PRESIDING OFFICER (Mr.
BROCK). The Senator from Connecti-
cut has 4 minutes and the Senator
from Alabama has 15 minutes.
Mr. SPARKMAN. How many?
The PRESIDING OFFICER. Fif-
teen minutes.
Mr. RIBICOFF. I have 4 minutes.
Mr. SPARKMAN. Mr. President,
the Senator from Alabama has not
used any of his time. The Senator
from Connecticut yielded to me on
this colloquy so that the Senator from
Alabama has not used any of his own
time yet.
-------
1050
LEGAL COMPILATION—GENERAL
Mr. RIBICOFF. The Senator has
15 minutes remaining.
Mr. SPARKMAN. Oh, was it 15
minutes? I am sorry. I thought we
had 20 minutes. Yes, I yield.
Mr. RIBICOFF. If the Senator
would please yield some of his time to
his colleagues so that I could answer
some of their questions.
Mr. SPARKMAN. Yes, I am very
pleased to yield—wait a minute—wait
a minute
Mr. RIBICOFF. Go ahead.
Mr. SPARKMAN. I thought the
Senator was going to yield some time.
Mr. President, I wonder whether I
could say a few words before we con-
tinue. I have considerable sympathy
with the Senator from Connecticut in
his general overall thesis here. He
presented a program to the Commit-
tee on Banking, Housing and Urban
Affairs which was much more compre-
hensive than this one. When he pre-
sented it to me today, I said, "I wish
you would wait and let it come on the
housing bill and let us see what we
can do with it as a part of the hous-
ing bill."
Mr. McCLELLAN. Mr. President,
will the Senator from Alabama yield
right there?
Mr. SPARKMAN. We are going to
act on that in the early part of the
new year.
I want to remind the Senator from
Rhode Island (Mr. PASTORE) that it
is true the TVA is not taxed, as you
and I are; but they give more money
to the Federal Treasury each year, I
suppose, than any taxation on them
would amount to. They do not pay on
navigation or on flood control and
neither does any other part of the
country, but they pay on their power.
Every dollar's worth of power that
they sell they pay into the Treasury.
Mr. PASTORE. Mr. President, will
the Senator yield?
Mr. SPARKMAN. I yield.
Mr. PASTORE. Mr. President, will
the Senator deny that in other States
they buy TVA power that is tax free
and at a much lower rate than the
rate in Rhode Island.
Mr. SPARKMAN. They are not tax
free since they are required by law to
pay into the Treasury a certain
amount each year.
Mr. PASTORE. A certain amount
that they cannot use.
Mr. SPARKMAN. They are far
ahead of the payment schedule.
Mr. President, I yield 2 minutes to
the Senator from North Carolina.
The PRESIDING OFFICER. The
Senator from North Carolina is
recognized for 2 minutes.
Mr. JORDAN of North Carolina.
Mr. President, we never have used it.
We do not get TVA power there. We
do not get any of it in North Caro-
lina. They do have some cheaper rates,
that is quite true. However, I think
the distinguished Senator from South
Carolina (Mr. ROLLINGS) hit the nail
on the head when he said we had bet-
ter go to Tokyo, South Korea, Tai-
wan, and Hong Kong to find out what
happened to the plants. American
money was spent to accomplish that.
Mr. PASTORE. Mr. President, no
one fought harder about the situation
that the Senator is talking about than
the Senator from Rhode Island. I have
been defending the mills in the South.
However, we are talking about tax
concessions to build plants and, at the
same time, taking the work out of
other States. Whether it goes into
Rhode Island or South Carolina or
North Carolina, when this is done, we
should give the jobs to the people who
have lost jobs because of those con-
cessions. What is wrong with that? It
works both ways.
If we in Rhode Island were to take
advantage of this market and build a
mill and take it out of South Caro-
lina, the workers in South Carolina
would have first preference to come to
Rhode Island and work in that mill.
What is fair for one is fair for the
other.
-------
STATUTES AND LEGISLATIVE HISTORY
1051
Mr. JORDAN of North Carolina.
Is the Senator saying that they have
to move or that they have a right to
move?
Mr. RIBICOFF. No. My amend-
ment provides that in the event a com-
pany uses tax-exempt bonds to move
a plant from one section of the coun-
try to another, two things must be
done. The company must give first
priority to the people that had been
working in the plant at its previous
location.
Mr. JORDAN of North Carolina.
Does the Senator mean the worker
has to move there?
Mr. RIBICOFF. No. The worker
must be given the opportunity to move
there if he wants to do so.
Second, if he chooses to move, the
community must make arrangement
for a sufficient supply of adequate
housing so that when a person moves,
he will have a decent place in which
to live.
Mr. JORDAN of North Carolina. Is
the Senator proposing to put him on
a pension before he moves?
Mr. RIBICOFF. No. He may, how-
ever, be forced to go on welfare if he
does not move because his job was
shipped out from under by the use of
tax exempt industrial development
bonds.
Mr. AIKEN. Mr. President, will the
Senator yield?
Mr. SPARKMAN. I yield 2 minutes
to the Senator from Vermont.
The PRESIDING OFFICER. The
Senator from Vermont is recognized
for 2 minutes.
Mr. AIKEN. Mr. President, Ver-
mont lost its lowest wage industry, the
textile industry, some years ago. We
have been better off since that textile
industry went to other lower-wage
States. It has been replaced by elec-
tronic and plastic industries and by
other high-grade industries until to-
day the average worker in Vermont
gets a larger rate of pay and takes
home more pay than workers in four
of the other New England States. The
only reason that he does not get more
than the worker in Connecticut is that
Connecticut has been so involved in
Government contracts and contracts
at higher prices that they can con-
tinue to pay higher wages. Although
at present Connecticut has a much
higher level of unemployment.
I will say that Vermont encourages
people to come there with their indus-
tries. And when an industry moves
from Connecticut or any other State
to Vermont, their employees have
usually come
[p. S18577]
with them if they want to. However,
up to recently they have not had the
opportunity. New industry has now
been developed to encourage them to
come to Vermont. The latest census
shows Vermont to have had a 14-
percent increase in population in the
last decade.
The State of Vermont pays one-
fourth the cost of rural water and
sewage programs. That has been a
tremendous help in developing rural
living and rural industry. It is the
only State that does that, so far as I
know.
Mr. President, I want to add one
other thing. We do not have the TVA
in Vermont. However, we have the
lowest electric rates of any State in
the Northeast. We are, in effect, the
yardstick for the Northeast in the
electric field.
The PRESIDING OFFICER. The
time of the Senator has expired.
Mr. SPARKMAN. Mr. President, I
yield 1 additional minute to the Sen-
ator from Vermont.
The PRESIDING OFFICER. The
Senator from Vermont is recognized
for 1 additional minute.
Mr. AIKEN. Mr. President, the
monopoly-minded utility boys in the
other States around our State do not
like that one bit. They are now doing
the best they can to make our power
-------
1052
LEGAL COMPILATION—GENERAL
companies fail so that they can take
them over.
We are doing all right. One com-
pany in southern New England which
bought a machine tool business in Ver-
mont and took it over has been losing
business to foreign countries so fast
that it is not funny. Overall we still
have the best wage rates in the North-
east, the lowest power rates, the low-
est rate of unemployment, and the
most contented men and women that
one ever saw.
Mr. SPARKMAN. Mr. President,
how much time do I have remaining?
The PRESIDING OFFICER. The
Senator from Alabama has 6 minutes
remaining.
Mr. SPARKMAN. Mr. President, I
yield 1 minute to the Senator from
Mississippi.
The PRESIDING OFFICER. The
Senator from Mississippi is recognized
for 1 minute.
Mr. STENNIS. Mr. President, in
addition to the other points that have
been mentioned, I know that as a mat-
ter of fact, this is, in the first place, a
very small tax exemption. It just in-
creases it to $5 million.
Mr. SPARKMAN. Mr. President, it
does not change the amount.
Mr. STENNIS. We had a terrible
struggle a few years ago to even sur-
vive there.
I appreciate the fact that it was set
at a certain figure and the Senator
from Rhode Island was agreeable to
that.
A great deal of this is used to
create small, new industries for vil-
lages and rural communities that are
helping to supply the expanded de-
mand of the economy of the Nation.
With respect to lightbulbs, for in-
stance, \he first factory in the South
that made lightbulbs was located in
Mississippi a few years ago. We have
been the purchasers and the consum-
ers for many years. Now through this
little effort, we are getting the oppor-
tunity to have small industry located
there. It benefits those with small
incomes. It is a miraculous thing to
watch how it works.
I hope the amendment is agreed to.
Mr. SPARKMAN. Mr. President, I
yield 2 minutes to the Senator from
Arkansas.
The PRESIDING OFFICER. The
Senator from Arkansas is recognized
for 2 minutes.
Mr. FULBRIGHT. Mr. President,
the existing law has worked extremely
well in my State. Of the plants that
I am aware of in my State, the major
ones use the domestic raw materials
such as the aluminum in the bauxite
which is to be found there and the
fuel and water transportation.
It appears to me that the amend-
ment is not necessarily to provide
housing.
The senior Senator from Arkansas
has discussed with me, and we are all
aware of the fact, that we face a
shortage of housing and that there is
unfunded appropriation for housing
already. We cannot get the money.
Mr. McCLELLAN. Mr. President,
will the Senator yield?
Mr. FULBRIGHT. I yield.
Mr. McCLELLAN. Mr. President,
in the last 2 fiscal years, 5,178 units
have been authorized and funded at a
cost of $21,000,000-plus. We have
pending applications for 14,028 units.
We had applied for funding in the
amount of $96 million. In other
words, we were only able to get one-
third of what we wanted to get
funded. If we want to achieve the ob-
jectives of the distinguished Senator
from Connecticut, we ought to be
given priority to build houses.
Mr. FULBRIGHT. They do not
move the plants there. Those plants
are indigenous to our local climate
and raw materials.
We have only a few textile plants.
They did not come from New Eng-
land. There is one that makes a cer-
-------
STATUTES AND LEGISLATIVE HISTORY
1053
tain kind of velveteen. It is a branch
of a plant from Virginia. It did not
originate in New England.
It appears that the Senator's
amendment is designed to prevent the
Sparkman amendment from being
agreed to.
If he is serious about doing some-
thing about housing, which I would
support, I do not know why the Sen-
ator does not pursue the matter in
the regular course with the chairman
of the Committee on Housing, who
has already stated it would be put in
the regular bill carrying the housing
authority. I am for the housing bill
and I would vote for more money.
We have been under-funded. This
money for rural water and sewers,
which is very much needed in my
State, has been impounded. But there
are many implications involved here.
The Sparkman amendment is a con-
structive way to reduce the popula-
tion trend toward the swelling urban
ghettos of the north and to encour-
age people to live in rural areas. I
would guess an insignificant percent-
age of employees in plants in Arkan-
sas come from other areas.
The PRESIDING OFFICER. The
time of the Senator has expired.
Mr. RIBICOFF. Mr. President, I
yield myself 1 minute in order to
reply.
The PRESIDING OFFICER. The
Senator from Connecticut is recog-
nized.
Mr. RIBICOFF. If what the Sen-
ator from Arkansas states is so, there
would be no problem because if they
did not take a plant from another sec-
tion of the country there would be no
obligation to give an employee a job.
I am trying to be practical and
fair, and so far I have heard nothing
to controvert the equity, soundness,
and decency of my amendment.
Mr. FULBRIGHT. There is nothing
here that says they have to pick up
the plant and bodily move it.
The PRESIDING OFFICER. The
Senator's time has expired.
Mr. SPARKMAN. Mr. President,
how much time do I have remaining?
The PRESIDING OFFICER. The
Senator has 2 minutes remaining.
Mr. SPARKMAN. I yield 1 minute
to the Senator from Tennessee.
The PRESIDING OFFICER. The
Senator from Tennessee is recognized.
Mr. BAKER. Mr. President, I want
to say that in the overall view the
amendment to the amendment offered
by the distinguished Senator from
Connecticut, in my humble judgment,
has the effect of making a challenge
to the validity for this method of
financing.
I believe the ultimate question on
the vote is whether we will have in-
dustrial development revenue bonds
with a tax-free status. I thought we
settled that question in the previous
session when we had extended debate
and agreed on a compromise between
unlimited financing of this type and
the limitation of $5 billion. I think $5
million is reasonable.
If the Senate were to agree to this
amendment to the amendment it
would have the practical effect of kill-
ing industrial bonds for industrial
financing, and I am opposed to it.
Mr. RIBICOFF. Mr. President, I
will vote for the Sparkman amend-
ment if my amendment is agreed to.
My purpose is to put some social pur-
pose behind the use of tax exempt in-
dustrial development bonds.
Mr. PASTORE. I know there is
very little time left but I wish to
say that is my sentiment too. If the
amendment of the Senator from Con-
necticut is not carried I will vote for
the Sparkman amendment. I am not
gauging one against the other.
Mr. BAKER. Mr. President, do I
have time remaining?
The PRESIDING OFFICER. The
Senator's time has expired.
Mr. SPARKMAN. Mr. President,
how much time do I have remaining?
-------
1054
LEGAL COMPILATION—GENERAL
The PRESIDING OFFICER. The
Senator has 1 minute remaining.
Mr. SPARKMAN. Mr. President, I
shall use that minute for one purpose.
I have read this amendment. I do
not see any tie-in with a plant being
moved. The only place we have any-
thing about employees with respect to
being in some other plant is where it
states:
The community's agreement shall also
provide the necessary assurances from the
company that any previous employees of the
company who might lose their jobs as a re-
sult of the new facility shall be given the
right of first refusal for the new jobs.
There is nothing there about hous-
ing and there is nothing there about
plants being reimbursed.
The PRESIDING OFFICER. The
Senator's time has expired.
[p. S18578]
Mr. RIBICOFF. Mr. President, the
answer is in section (B) (1) of my
amendment. Section (D) provides that
if a company does move as a result of
these bonds the first refusal of jobs
should be given the employee whose
plant was moved out from under him.
That is the substance of my amend-
ment.
The PRESIDING OFFICER: All
time has expired on the amendment.
Mr. AIKEN. Mr. President, what
amendment is the Senate now going
to vote on?
The PRESIDING OFFICER. This
is the amendment of the Senator from
Connecticut to the amendment of the
Senator from Alabama.
Mr. AIKEN. We are voting on the
amendment offered by the Senator
from Connecticut to the amendment
offered by the Senator from Alabama?
The PRESIDING OFFICER. The
Senator correctly stated the parlia-
mentary situation.
The yeas and nays have been
ordered, and the clerk will call the
roll.
The legislative clerk called the roll.
Mr. BYRD of West Virginia. I an-
nounce that the Senator from Okla-
homa (Mr. HARRIS), the Senator from
Indiana (Mr. HARTKE), the Sen-
ator from Iowa (Mr. HUGHES), the
Senator from Minnesota (Mr. HUM-
PHREY), the Senator from Washing-
ton (Mr. JACKSON), the Senator from
South Dakota (Mr. McGovERN), and
the Senator from New Mexico (Mr.
MONTOYA) are necessarily absent.
I further announce that the Sen-
ator from Louisiana (Mr. ELLENDER) ,
the Senator from Montana (Mr.
MANSFIELD), and the Senator from
Georgia (Mr. TALMADGE) are absent
on official business.
I further announce that, if present
and voting, the Senator from Wash-
ington (Mr. JACKSON) and the Sen-
ator from Iowa (Mr. HUGHES) would
vote "yea."
Mr. GRIFFIN. I announce that the
Senator from Colorado (Mr. ALLOTT),
the Senator from Montana (Mr.
CURTIS), the Senator from Idaho (Mr.
JORDAN), the Senator from South
Carolina (Mr. THURMOND), and the
Senator from Texas (Mr. TOWER) are
necessarily absent.
The Senator from Ohio (Mr. SAXBE)
and the Senator from Alaska (Mr.
STEVENS) are absent on official busi-
ness.
The Senator from South Dakota
(Mr. MUNDT) is absent because of
illness.
The Senator from Arizona (Mr.
GOLDWATER), the Senator from Penn-
sylvania (Mr. SCOTT), and the Sena-
tor from North Dakota (Mr. YOUNG)
are detained on official business.
If present and voting, the Senator
from Nebraska (Mr. CURTIS), the
Senator from Pennsylvania (Mr.
SCOTT), the Senator from South Caro-
lina (Mr. THURMOND), and the Sena-
tor from Texas (Mr. TOWER) would
each vote "nay."
-------
STATUTES AND LEGISLATIVE HISTORY
1055
The result was announced—yeas
37, nays 42, as follows:
[No. 333 Leg.]
YEAS—37
Bayh
Bible
Brooke
Burdick
Cannon
Case
Church
Cranston
Eagleton
Gravel
Griffin
Hart
Aiken
Allen
Anderson
Baker
Beall
Bellmon
Bennett
Bentsen
Boggs
Brock
Buckley
Byrd, Va.
Bryd, W.
Chiles
Allott
Curtis
Ellenter
Goldwater
Harris
Hartke
Hughes
Hatfield Nelson
Hollings Packwood
Inouye Pastore
Javits Pell
Kennedy Percy
Magnuson Proxmire
Mathias Ribicofl
McGee Schweiker
Mclntyre Smith
Metcalf Symington
Mondale Tunney
Moss Williams
Muskie
NAYS— 42
Cook Jordan, N.C.
Cooper Long
Cotton McClellan
Dole Miller
Dominick Pearson
Eastland Randolph
Ervin Roth
Fannin Sparkman
Fong Spong
Fulbright Stafford
Gambrell Stennis
Gurney Stevenson
Va. Hansen Taft
Hruska Weicker
NOT VOTING— 21
Humphrey Saxbe
Jackson Scott
Jordan, Idaho Stevens
Mansfield Talmadge
McGovern Thurmond
Montoya Tower
Mundt Young
So the Ribicoff-Nelson amendment
to the Sparkman amendment was re-
jected.
The PRESIDING OFFICER. The
question now recurs on agreeing to
the amendment of the Senator from
Alabama (Mr. SPARKMAN).
Mr. SPARKMAN. Mr. President, I
ask for the yeas and nays.
The yeas and nays were ordered.
The PRESIDING OFFICER. On
this question, the yeas and nays have
been ordered, and the clerk will call
the roll.
The second assistant legislative
clerk called the roll.
Mr. BENNETT (after having voted
in the negative). Mr. President, on
this vote, I have a pair with the Sena-
tor from Nebraska (Mr. CURTIS). If
he were present and voting, he would
vote "yea." If I were at liberty to
vote, I would vote "nay." Therefore,
1 withdraw my vote.
Mr. BYRD of West Virginia. I an-
nounce that the Senator from Okla-
homa (Mr. HARRIS), the Senator from
Indiana (Mr. HAHTKE), the Senator
from Iowa (Mr. HUGHES), the Sena-
tor from Minnesota (Mr. HUMPHREY),
the Senator from Washington (Mr.
JACKSON), the Senator from South
Dakota (Mr. MCGOVERN), and the
Senator from New Mexico (Mr. MON-
TOYA) are necessarily absent.
I further announce that the Sena-
tor from Louisiana (Mr. ELLENDER),
the Senator from Montana (Mr.
MANSFIELD), and the Senator from
Georgia (Mr. TALMADGE) are absent
on official business,
I further announce that if, present
and voting, the Senator from Wash-
ington (Mr. JACKSON) and the Sena-
tor from Iowa (Mr. HUGHES) would
each vote "yea."
Mr. GRIFFIN. I announce that the
Senator from Colorado (Mr. ALLOTT),
the Senator from Nebraska (Mr. CUR-
TIS), the Senator from Idaho (Mr.
JORDAN), the Senator from South
Carolina (Mr. THURMOND), and the
Senator from Texas (Mr. TOWER) are
necessarily absent.
The Senator from Ohio (Mr. SAXBE)
and the Senator from Alaska (Mr.
STEVENS) are absent on official busi-
ness.
The Senator from South Dakota
(Mr. MUNDT) is absent because of
illness.
The Senator from Arizona (Mr.
GOLDWATER), the Senator from Penn-
sylvania (Mr. SCOTT), and the Sena-
tor from North Dakota (Mr. YOUNG)
are detained on official business.
If present and voting, the Senator
from Texas (Mr. TOWER) would vote
yea."
-------
1056
LEGAL COMPILATION—GENERAL
The pair of the Senator from Ne-
braska (Mr. CURTIS) has been pre-
viously announced.
On this vote, the Senator from
South Carolina (Mr. THURMOND) is
paired with the Senator from Penn-
sylvania (Mr. SCOTT). If present and
voting, the Senator from South Caro-
lina would vote "yea" and the Senator
from Pennsylvania would vote "nay."
The result was announced — yeas 55,
nays 23, as follows:
[No. 334 Leg.]
YEAS— 55
Aiken Dominick Miller
Allen Eagleton Mondale
Baker Eastland Moss
Bayh Ervin Muskie
Beall Fong Packwood
Belhnon Fulbright Pastore
Bentsen Gambrell Pearson
Bible Gravel Pell
Boggs Hansen Percy
Brock Rollings Randolph
Burdick Hruska Roth
Byrd, W. Va. Inouye Sparkman
Cannon Jordan, N.C. Stafford
Chiles Long Stennis
Cook Magnuson Stevenson
Cooper McClellan Symington
Cranston McGee Tunney
Dole Mclntyre Weicker
Metcalf
NAYS— 23
Anderson Griffin Proxmire
Brooke Gurney Ribicoff
Buckley Hart Schweiker
Byrd, Va. Hatfield Smith
Case Javits Spong
Church Kennedy Taft
Cotton Mathias Williams
Fannin Nelson
PRESENT AND GIVING A LIVE
PAIR, AS PREVIOUSLY RECORD-
ED—I
Bennett, against.
NOT VOTING— 21
Allott Humphrey Saxbe
Curtis Jackson Scott
Ellender Jordan, Idaho Stevens
Gold-water Mansfield Talmadge
Harris McGovern Thurmond
Hartke Montoya Tower
Hughes Mundt Young
So Mr. SPARKMAN'S amendment
was agreed to.
Mr. SPARKMAN. Mr. President, I
move to reconsider the vote by which
the amendment was agreed to.
Mr. LONG and Mr. RANDOLPH
moved to lay the. motion on the table.
The motion to lay on the table was
agreed to.
[p. S18579]
1.9b(4) (c) Dec. 9: House agreed to conference report, pp. H12114-
H12134
[No Relevant Discussion on Pertinent Section]
1.9(4)(d) Dec. 9: Senate agreed to conference report, pp. S21095-
S21109
[No Relevant Discussion on Pertinent Section]
-------
STATUTES AND LEGISLATIVE HISTORY 1057
1.10 UNIFORM RELOCATION ASSISTANCE AND REAL
PROPERTY ACQUISITION POLICIES FOR FEDERAL
AND FEDERALLY ASSISTED PROGRAMS
42 U.S.C. §4633 (1971)
SUBCHAPTER I.—GENERAL PROVISIONS
Sec.
4601. Definitions.
4602. Effect upon property acquisition.
SUBCHAPTER II.—UNIFORM RELOCATION ASSISTANCE
4621. Declaration of policy.
4622. Moving and related expenses.
(a) General provision.
(b) Displacement from dwelling; election of payments; moving ex-
pense and dislocation allowance.
(c) Displacement from business or farm operation; election of pay-
ments; limitations; eligibility for business payments; "average
annual net earnings" defined.
4623. Replacement housing for homeowner; mortgage insurance.
4624. Replacement housing for tenants and certain others.
4625. Relocation assistance advisory services.
(a) Program for displaced persons and economically injured occu-
pants of adjacent property.
(b) Cooperation between assisting and displacing agencies to assure
maximum assistance.
(c) Measures, facilities, or services; description.
(d) Coordination of relocation activities with project work and gov-
ernmental actions in the community or nearby areas affecting
carrying out relocation assistance programs.
4626. Housing replacement by Federal agency as last resort.
4627. State required to furnish real property incident to Federal assistance
(local cooperation).
4628. State acting as agent for Federal program.
4629. Public works programs and projects of District of Columbia govern-
ment and Washington Metropolitan Area Transit Authority.
4630. Requirements for relocation payments and assistance of Federally
assisted program; assurance of availability of housing.
4631. Federal share of costs.
4632. Administration; relocation assistance in programs receiving Federal
financial assistance.
4633. Regulations and procedures.
4634. Annual report to President; Presidential report to Congress.
4635. Planning and other preliminary expenses for additional housing.
4636. Payments not to be considered as income for revenue purposes or for
eligibility for assistance under Social Security Act or other Federal
law.
4637. Displacement by code enforcement, rehabilitation, and demolition pro-
grams receiving Federal assistance.
4638. Transfers of surplus property.
-------
1058 LEGAL COMPILATION—GENERAL
SUBCHAPTER III.—UNIFORM REAL PROPERTY ACQUISITION POLICY
Sec.
4651. Uniform policy on real property acquisition practices.
4652. Buildings, structures, and improvements.
4653. Expenses incidental to transfer of title to United States.
4654. Litigation expenses.
4655. Requirements for uniform land acquisition policies; payments of ex-
penses incidental to transfer of real property to State; payment of
litigation expenses in certain cases.
SUBCHAPTER I.—GENERAL PROVISIONS
§ 4601. Definitions
As used in this chapter—
(1) The term "Federal agency" means any department, agency,
or instrumentality in the executive branch of the Government
(except the National Capital Housing Authority), any wholly
owned Government corporation (except the District of Columbia
Redevelopment Land Agency), and the Architect of the Capitol,
the Federal Reserve banks and branches thereof.
(2) The term "State" means any of the several States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, any territory or possession of the United States, the
Trust Territory of the Pacific Islands, and any political subdivi-
sion thereof.
(3) The term "State agency" means the National Capital Hous-
ing Authority, the District of Columbia Redevelopment Land
Agency, and any department, agency, or instrumentality of a
State or of a political subdivision of a State, or any department,
agency, or instrumentality of two or more States or of two or
more political subdivisions of a State or States.
(4) The term "Federal financial assistance" means a grant,
loan, or contribution provided by the United States, except any
Federal guarantee or insurance and any annual payment or capi-
tal loan to the District of Columbia.
(5) The term "person" means any individual, partnership, cor-
poration, or association.
(6) The term "displaced person" means any person who, on or
after January 2, 1971, moves from real property, or moves his
personal property from real property, as a result of the acquisi-
tion of such real property, in whole or in part, or as the result of
the written order of the acquiring agency to vacate real property,
for a program or project undertaken by a Federal agency, or with
Federal financial assistance; and solely for the purposes of sec-
-------
STATUTES AND LEGISLATIVE HISTORY 1059
tions 4622(a) and (b) and 4625 of this title, as a result of the
acquisition of or as the result of the written order of the acquiring
agency to vacate other real property, on which such person con-
ducts a business or farm operation, for such program or project.
(7) The term "business" means any lawful activity, excepting a
farm operation, conducted primarily—
(A) for the purchase, sale, lease and rental of personal and
real property, and for the manufacture, processing, or mar-
keting of products, commodities, or any other personal prop-
erty;
(B) for the sale of services to the public;
(C) by a nonprofit organization; or
(D) solely for the purposes of section 4622(a) of this title,
for assisting in the purchase, sale, resale, manufacture, proc-
essing, or marketing of products, commodities, personal prop-
erty, or services by the erection and maintenance of an out-
door advertising display or displays, whether or not such
display or displays are located on the premises on which any
of the above activities are conducted.
(8) The term "farm operation" means any activity conducted
solely or primarily for the production of one or more agricultural
products or commodities, including timber, for sale or home use,
and customarily producing such products or commodities in suffi-
cient quantity to be capable of contributing materially to the oper-
ator's support.
(9) The term "mortgage" means such classes of liens as are
commonly given to secure advances on, or the unpaid purchase
price of, real property, under the laws of the State in which the
real property is located, together with the credit instruments, if
any, secured thereby.
Pub.L. 91-646, Title I, § 101, Jan. 2, 1971, 84 Stat. 1894.
§ 4602. Effect upon property acquisition
(a) The provisions of section 4651 of this title create no rights
or liabilities and shall not affect the validity of any property
acquisitions by purchase or condemnation.
(b) Nothing in this chapter shall be construed as creating in
any condemnation proceedings brought under the power of emi-
nent domain, any element of value or of damage not in existence
immediately prior to January 2,1971.
Pub.L. 91-646, Title I, § 102, Jan. 2, 1971, 84 Stat. 1895.
-------
1060 LEGAL COMPILATION—GENERAL
SUBCHAPTER II.—UNIFORM RELOCATION ASSISTANCE
§ 4621. Declaration of policy
The purpose of this subchapter is to establish a uniform policy
for the fair and equitable treatment of persons displaced as a
result of Federal and federally assisted programs in order that
such persons shall not suffer disproportionate injuries as a result
of programs designed for the benefit of the public as a whole.
Pub.L. 91-646, Title II, § 201, Jan. 2,1971, 84 Stat. 1895.
§ 4622. Moving and related expenses—General provision
(a) Whenever the acquisition of real property for a program or
project undertaken by a Federal agency in any State will result in
the displacement of any person on or after January 2, 1971, the
head of such agency shall make a payment to any displaced per-
son, upon proper application as approved by such agency head,
for—
(1) actual reasonable expenses in moving himself, his fam-
ily, business, farm operation, or other personal property;
(2) actual direct losses of tangible personal property as a
result of moving or discontinuing a business or farm opera-
tion, but not to exceed an amount equal to the reasonable
expenses that would have been required to relocate such prop-
erty, as determined by the head of the agency; and
(3) actual reasonable expenses in searching for a replace-
ment business or farm.
Displacement from dwelling; election of payments; moving
expense and dislocation allowance
(b) Any displaced person eligible for payments under subsec-
tion (a) of this section who is displaced from a dwelling and who
elects to accept the payments authorized by this subsection in lieu
of the payments authorized by subsection (a) of this section may
receive a moving expense allowance, determined according to a
schedule established by the head of the Federal agency, not to
exceed $300; and a dislocation allowance of $200.
Displacement from business or farm operation; election of payments; limita-
tions; eligibility for business payments; "average annual net earnings"
defined
(c) Any displaced person eligible for payments under subsection
(a) of this section who is displaced from his place of business or
from his farm operation and who elects to accept the payment
authorized by this subsection in lieu of the payment authorized by
subsection (a) of this section, may receive a fixed payment in an
amount equal to the average annual net earnings of the business
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STATUTES AND LEGISLATIVE HISTORY 1061
or farm operation, except that such payment shall be not less than
$2,500 nor more than $10,000. In the case of a business no pay-
ment shall be made under this subsection unless the head of the
Federal agency is satisfied that the business (1) cannot be relo-
cated without a substantial loss of its existing patronage, and (2)
is not a part of a commercial enterprise having at least one other
establishment not being acquired by the United States, which is
engaged in the same or similar business. For purposes of this
subsection, the term "average annual net earnings" means one-
half of any net earnings of the business or farm operation, before
Federal, State and local income taxes, during the two taxable
years immediately preceding the taxable year in which such busi-
ness or farm operation moves from the real property acquired for
such project, or during such other period as the head of such
agency determines to be more equitable for establishing such earn-
ings, and includes any compensation paid by the business or farm
operation to the owner, his spouse, or his dependents during such
period.
Pub.L. 91-646, Title II, § 202, Jan. 2, 1971, 84 Stat. 1895.
§ 4623. Replacement housing for homeowner; mortgage insur-
ance
(a) (1) In addition to payments otherwise authorized by this
subchapter, the head of the Federal agency shall make an addi-
tional payment not in excess of $15,000 to any displaced person
who is displaced from a dwelling actually owned and occupied by
such displaced person for not less than one hundred and eighty
days prior to the initiation of negotiations for the acquisition of
the property. Such additional payment shall include the following
elements:
(A) The amount, if any, which when added to the acquisition
cost of the dwelling acquired by the Federal agency, equals the
reasonable cost of a comparable replacement dwelling which is a
decent, safe, and sanitary dwelling adequate to accommodate such
displaced person, reasonably accessible to public services and
places of employment and available on the private market. All
determinations required to carry out this subparagraph shall be
made in accordance with standards established by the head of the
Federal agency making the additional payment.
(B) The amount, if any, which will compensate such displaced
person for any increased interest costs which such person is re-
quired to pay for financing the acquisition of any such comparable
replacement dwelling. Such amount shall be paid only if the dwell-
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1062 LEGAL COMPILATION—GENERAL
ing acquired by the Federal agency was encumbered by a bona fide
mortgage which was a valid lien on such dwelling for not less than
one hundred and eighty days prior to the initiation of negotiations
for the acquisition of such dwelling. Such amount shall be equal to
the excess in the aggregate interest and other debt service costs of
that amount of the principal of the mortgage on the replacement
dwelling which is equal to the unpaid balance of the mortgage on
the acquired dwelling, over the remainder term of the mortgage
on the acquired dwelling, reduced to discounted present value. The
discount rate shall be the prevailing interest rate paid on savings
deposits by commercial banks in the general area in which the
replacement dwelling is located.
(C) Reasonable expenses incurred by such displaced person for
evidence of title, recording fees, and other closing costs incident to
the purchase of the replacement dwelling, but not including pre-
paid expenses.
(2) The additional payment authorized by this subsection shall
be made only to such a displaced person who purchases and occu-
pies a replacement dwelling which is decent, safe, and sanitary not
later than the end of the one year period beginning on the date on
which he receives from the Federal agency final payment of all
costs of the acquired dwelling, or on the date on which he moves
from the acquired dwelling, whichever is the later date.
(b) The head of any Federal agency may, upon application by a
mortgagee, insure any mortgage (including advances during con-
struction) on a comparable replacement dwelling executed by a
displaced person assisted under this section, which mortgage is
eligible for insurance under any Federal law administered by such
agency notwithstanding any requirements under such law relating
to age, physical condition, or other personal characteristics of
eligible mortgagors, and may make commitments for the insur-
ance of such mortgage prior to the date of execution of the mort-
gage.
Pub.L. 91-646, Title II, § 203, Jan. 2,1971, 84 Stat. 1896.
§ 4624. Replacement housing for tenants and certain others
In addition to amounts otherwise authorized by this subchapter,
the head of the Federal agency shall make a payment to or for any
displaced person displaced from any dwelling not eligible to re-
ceive a payment under section 4623 of this title which dwelling
was actually and lawfully occupied by such displaced person for
not less than ninety days prior to the initiation of negotiations for
acquisition of such dwelling. Such payment shall be either—
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STATUTES AND LEGISLATIVE HISTORY 1063
(1) the amount necessary to enable such displaced person
to lease or rent for a period not to exceed four years, a decent,
safe, and sanitary dwelling of standards adequate to accom-
modate such person in areas not generally less desirable in
regard to public utilities and public and commercial facilities,
and reasonably accessible to his place of employment, but not
to exceed $4,000, or
(2) the amount necessary to enable such person to make a
downpayment (including incidental expenses described in sec-
tion 4623(a) (1) (C) of this title) on the purchase of a
decent, safe, and sanitary dwelling of standards adequate to
accommodate such person in areas not generally less desirable
in regard to public utilities and public and commercial facili-
ties, but not to exceed $4,000, except that if such amount
exceeds $2,000, such person must equally match any such
amount in excess of $2,000, in making the downpayment.
Pub.L. 91-646, Title II, § 204, Jan. 2,1971, 84 Stat. 1897.
§ 4625. Relocation assistance advisory services—Program for
displaced persons and economically injured occupants of adjacent
property
(a) Whenever the acquisition of real property for a program or
project undertaken by a Federal agency in any State will result in
the displacement of any person on or after January 2, 1971, the
head of such agency shall provide a relocation assistance advisory
program for displaced persons which shall offer the services de-
scribed in subsection (c) of this section. If such agency head
determines that any person occupying property immediately adja-
cent to the real property acquired is caused substantial economic
injury because of the acquisition, he may offer such person reloca-
tion advisory services under such program.
Cooperation between assisting and displacing agencies to
assure maximum assistance
(b) Federal agencies administering programs which may be of
assistance to displaced persons covered by this chapter shall coop-
erate to the maximum extent feasible with the Federal or State
agency causing the displacement to assure that such displaced
persons receive the maximum assistance available to them.
Measures, facilities, or services; description
(c) Each relocation assistance advisory program required by
subsection (a) of this section shall include such measures, facili-
ties, or services as may be necessary or appropriate in order to—
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1064 LEGAL COMPILATION—GENERAL
(1) determine the need, if any, of displaced persons, for
relocation assistance;
(2) provide current and continuing information on the
availability, prices, and rentals, of comparable decent, safe,
and sanitary sales and rental housing, end of comparable
commercial properties and locations for displaced businesses;
(3) assure that, within a reasonable period of time, prior to
displacement there will be available in areas not generally
less desirable in regard to public utilities and public and com-
mercial facilities and at rents or prices within the financial
means of the families and individuals displaced, decent, safe,
and sanitary dwellings, as defined by such Federal agency
head, equal in number to the number of and available to such
displaced persons who require such dwellings and reasonably
accessible to their places of employment, except that the head
of that Federal agency may prescribe by regulation situations
when such assurances may be waived;
(4) assist a displaced person from his business or farm
operation in obtaining and becoming established in a suitable
replacement location;
(5) supply information concerning Federal and State hous-
ing programs, disaster loan programs, and other Federal or
State programs offering assistance to displaced persons; and
(6) provide other advisory services to displaced persons in
order to minimize hardships to such persons in adjusting to
relocation.
Coordination of relocation activities with project work and governmental
actions in the community or nearby areas affecting carrying out relocation
assistance programs
(d) The heads of Federal agencies shall coordinate relocation
activities with project work, and other planned or proposed gov-
ernmental actions in the community or nearby areas which may
affect the carrying out of relocation assistance programs.
Pub.L. 91-646, Title II, § 205, Jan. 2,1971, 84 Stat. 1897.
§ 4626. Housing replacement by Federal agency as last resort
(a) If a Federal project cannot proceed to actual construction
because comparable replacement sale or rental housing is not
available, and the head of the Federal agency determines that such
housing cannot otherwise be made available he may take such
action as is necessary or appropriate to provide such housing by
use of funds authorized for such project.
(b) No person shall be required to move from his dwelling on or
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STATUTES AND LEGISLATIVE HISTORY 1065
after January 2, 1971, on account of any Federal project, unless
the Federal agency head is satisfied that replacement housing, in
accordance with section 4625 (c) (3) of this title, is available to
such person.
Pub.L. 91-646, Title II, § 206, Jan. 2,1971, 84 Stat. 1898.
§ 4627. State required to furnish real property incident to Fed-
eral assistance (local cooperation)
Whenever real property is acquired by a State agency and fur-
nished as a required contribution incident to a Federal program or
project, the Federal agency having authority over the program or
project may not accept such property unless such State agency has
made all payments and provided all assistance and assurances, as
are required of a State agency by sections 4630 and 4655 of this
title. Such State agency shall pay the cost of such requirements in
the same manner and to the same extent as the real property
acquired for such project, except that in the case of any real
property acquisition or displacement occurring prior to July 1,
1972, such Federal agency shall pay 100 per centum of the first
$25,000 of the cost of providing such payments and assistance.
Pub.L. 91-646, Title II, § 207, Jan. 2, 1971, 84 Stat. 1898.
§ 4628. State acting as agent for Federal program
Whenever real property is acquired by a State agency at the
request of a Federal agency for a Federal program or project,
such acquisition shall, for the purposes of this chapter, be deemed
an acquisition by the Federal agency having authority over such
program or project.
Pub.L. 91-646, Title II, § 208, Jan. 2,1971, 84 Stat. 1899.
§ 4629. Public works programs and projects of District of Col-
umbia government and Washington Metropolitan Area Transit
Authority
Whenever real property is acquired by the government of the
District of Columbia or the Washington Metropolitan Area
Transit Authority for a program or project which is not subject to
sections 4630 and 4631 of this title, and such acquisition will
result in the displacement of any person on or after January 2,
1971, the Commissioner of the District of Columbia or the Wash-
ington Metropolitan Area Transit Authority, as the case may be,
shall make all relocation payments and provide all assistance re-
quired of a Federal agency by this chapter. Whenever real prop-
erty is acquired for such a program or project on or after January
2,1971, such Commissioner or Authority, as the case may be, shall
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1066 LEGAL COMPILATION—GENERAL
make all payments and meet all requirements prescribed for a
Federal agency by subchapter III of this chapter.
Pub.L. 91-646, Title II, § 209, Jan. 2, 1971, 84 Stat. 1899.
§ 4630. Requirements for relocation payments and assistance of
Federally assisted program; assurances of availibility of housing
Notwithstanding any other law, the head of a Federal agency
shall not approve any grant to, or contract or agreement with, a
State agency, under which Federal financial assistance will be
available to pay all or part of the cost of any program or project
which will result in the displacement of any person on or after
January 2, 1971, unless he receives satisfactory assurances from
such State agency that—
(1) fair and reasonable relocation payments and assistance
shall be provided to or for displaced persons, as are required
to be provided by a Federal agency under sections 4622, 4623,
and 4624 of this title;
(2) relocation assistance programs offering the services de-
scribed in section 4625 of this title shall be provided to such
displaced persons;
(3) within a reasonable period of time prior to displace-
ment, decent, safe, and sanitary replacement dwellings will be
available to displaced persons in accordance with section
4625 (c) (3) of this title.
Pub.L. 91-646, Title II, § 210, Jan. 2, 1971, 84 Stat. 1899.
§ 4631. Federal share of costs
(a) The cost to a State agency of providing payments and
assistance pursuant to sections 4626, 4630, 4635, and 4655 of this
title, shall be included as part of the cost of a program or project
for which Federal financial assistance is available to such State
agency, and such State agency shall be eligible for Federal finan-
cial assistance with respect to such payments and assistance in the
same manner and to the same extent as other program or project
costs, except that, notwithstanding any other law in the case
where the Federal financial assistance is by grant or contribution
the Federal agency shall pay the full amount of the first $25,000 of
the cost to a State agency of providing payments and assistance
for a displaced person under sections 4626, 4630, 4635, and 4655
of this title, on account of any acquisition or displacement occur-
ring prior to July 1, 1972, and in any case where such Federal
financial assistance is by loan, the Federal agency shall loan such
State agency the full amount of the first $25,000 of such cost.
(b) No payment or assistance under section 4630 or 4655 of this
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STATUTES AND LEGISLATIVE HISTORY 1067
title shall be required or included as a program or project cost
under this section, if the displaced person receives a payment
required by the State law of eminent domain which is determined
by such Federal agency head to have substantially the same pur-
pose and effect as such payment under this section, and to be part
of the cost of the program or project for which Federal financial
assistance is available.
(c) Any grant to, or contract or agreement with, a State agency
executed before January 2, 1971, under which Federal financial
assistance is available to pay all or part of the cost of any pro-
gram or project which will result in the displacement of any
person on or after January 2, 1971, shall be amended to include
the cost of providing payments and services under sections 4630
and 4655 of this title. If the head of a Federal agency determines
that it is necessary for the expeditious completion of a program or
project he may advance to the State agency the Federal share of
the cost of any payments or assistance by such State agency pur-
suant to sections 4626, 4630, 4635, and 4655 of this title.
Pub.L. 91-646, Title II, § 211, Jan. 2, 1971, 84 Stat. 1900.
§ 4632. Administration; relocation assistance in programs re-
ceiving Federal financial assistance
In order to prevent unnecessary expenses and duplications of
functions and to promote uniform and effective administration of
relocation assistance programs for displaced persons under sec-
tions 4626, 4630, and 4635 of this title, a State agency may enter
into contracts with any individual, firm, association, or corpora-
tion for services in connection with such programs, or may carry
out its functions under this subchapter through any Federal or
State governmental agency or instrumentality having an estab-
lished organization for conducting relocation assistance programs.
Such State agency shall, in carrying out the relocation assistance
activities described in section 4626 of this title, whenever practica-
ble, utilize the services of State or local housing agencies, or other
agencies having experience in the administration or conduct of
similar housing assistance activities.
Pub.L. 91-646, Title II, § 212, Jan. 2,1971, 84 Stat. 1900.
§ 4633. Regulations and procedures
(a) In order to promote uniform and effective administration of
relocation assistance and land acquisition of State or local housing
agencies, or other agencies having programs or projects by Fed-
eral agencies or programs or projects by State agencies receiving
Federal financial assistance, the heads of Federal agencies shall
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1068 LEGAL COMPILATION—GENERAL
consult together on the establishment of regulations and proce-
dures for the implementation of such programs.
(b) The head of each Federal agency is authorized to establish
such regulations and procedures as he may determine to be neces-
sary to assure—
(1) that the payments and assistance authorized by this
chapter shall be administered in a manner which is fair and
reasonable, and as uniform as practicable;
(2) that a displaced person who makes proper application
for a payment authorized for such person by this subchapter
shall be paid promptly after a move or, in hardship cases, be
paid in advance; and
(3) that any person aggrieved by a .determination as to
eligibility for a payment authorized by this chapter, or the
amount of a payment, may have his application reviewed by
the head of the Federal agency having authority over the
applicable program or project, or in the case of a program or
project receiving Federal financial assistance, by the head of
the State agency.
(c) The head of each Federal agency may prescribe such other
regulations and procedures, consistent with the provisions of this
chapter, as he deems necessary or appropriate to carry out this
chapter.
Pub.L. 91-646, Title II, § 213, Jan. 2, 1971, 84 Stat. 1900.
§ 4634. Annual report to President; Presidential report to Con-
gress
The head of each Federal agency shall prepare and submit an
annual report to the President on the activities of such agency
with respect to the programs and policies established or author-
ized by this chapter, and the President shall submit such reports
to the Congress not later than January 15 of each year, beginning
January 15, 1972, and ending January 15, 1975, together with his
comments or recommendations. Such reports shall give special
attention to: (1) the effectiveness of the provisions of this chapter
assuring the availability of comparable replacement housing,
which is decent, safe, and sanitary, for displaced homeowners and
tenants; (2) actions taken by the agency to achieve the objectives
of the policies of Congress, declared in this chapter, to provide
uniform and equal treatment, to the greatest extent practicable,
for all persons displaced by, or having real property taken for,
Federal or federally assisted programs; (3) the views of the Fed-
eral agency head on the progress made to achieve such objectives
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STATUTES AND LEGISLATIVE HISTORY 1069
in the various programs conducted or administered by such
agency, and among the Federal agencies; (4) any indicated effects
of such programs and policies on the public; and (5) any recom-
mendations he may have for further improvements in relocation
assistance and land acquisition programs, policies, and implement-
ing laws and regulations.
Pub.L. 91-646, Title II, § 214, Jan. 2,1971, 84 Stat. 1901.
§ 4635. Planning and other preliminary expenses for additional
housing
In order to encourage and facilitate the construction or rehabili-
tation of housing to meet the needs of displaced persons who are
displaced from dwellings because of any Federal or Federal finan-
cially assisted project, the head of the Federal agency administer-
ing such project is authorized to make loans as a part of the cost
of any such project, or to approve loans as a part of the cost of
any such project receiving Federal financial assistance, to non-
profit, limited dividend, or cooperative organizations or to public
bodies, for necessary and reasonable expenses, prior to construc-
tion, for planning and obtaining federally insured mortgage financ-
ing for the rehabilitation or construction of housing for such
displaced persons. Notwithstanding the preceding sentence, or any
other law, such loans shall be available for not to exceed 80 per
centum of the reasonable costs expected to be incurred in plan-
ning, and in obtaining financing for, such housing, prior to the
availability of such financing, including, but not limited to, prelim-
inary surveys and analyses of market needs, preliminary site engi-
neering, preliminary architectural fees, site acquisition, applica-
tion and mortgage commitment fees, and construction loan fees
and discounts. Loans to an organization established for profit shall
bear interest at a market rate established by the head of such
Federal agency. All other loans shall be without interest. Such
Federal agency head shall require repayment of loans made under
this section, under such terms and conditions as he may require,
upon completion of the project or sooner, and except in the case of
a loan to an organization established for profit, may cancel any
part or all of a loan if he determines that a permanent loan to
finance the rehabilitation or the construction of such housing
cannot be obtained in an amount adequate for repayment of such
loan. Upon repayment of any such loan, the Federal share of the
sum repaid shall be credited to the account from which such loan
was made, unless the Secretary of the Treasury determines that
such account is no longer in existence, in which case such sums
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1070 LEGAL COMPILATION—GENERAL
shall be returned to the Treasury and credited to miscellaneous
receipts.
Pub.L. 91-646, Title II, § 215, Jan. 2,1971, 84 Stat. 1901.
§ 4636. Payments not to be considered as income for revenue
purposes or for eligibility for assistance under Social Security
Act or other Federal law
No payment received under this subchapter shall be considered
as income for the purposes of Title 26; or for the purposes of
determining the eligibility or the extent of eligibility of any per-
son for assistance under the Social Security Act or any other
Federal law.
Pub.L. 91-646, Title II, § 216, Jan. 2,1971, 84 Stat. 1902.
§ 4637. Displacement by code enforcement, rehabilitation, and
demolition programs receiving Federal assistance
A person who moves or discontinues his business, or moves
other personal property, or moves from his dwelling on or after
January 2, 1971, as a direct result of any project or program
which receives Federal financial assistance under title I of the
Housing Act of 1949, as amended, or as a result of carrying out a
comprehensive city demonstration program under title I of the
Demonstration Cities and Metropolitan Development Act of 1966
shall, for the purposes of this subchapter, be deemed to have been
displaced as the result of the acquisition of real property.
Pub.L. 91-646, Title II, § 217, Jan. 2, 1971, 84 Stat. 1902.
§ 4638. Transfers of surplus property
The Administrator of General Services is authorized to transfer
to a State agency for the purpose of providing replacement hous-
ing required by this subchapter, any real property surplus to the
needs of the United States within the meaning of the Federal
Property and Administrative Services Act of 1949, as amended.
Such transfer shall be subject to such terms and conditions as the
Administrator determines necessary to protect the interests of the
United States and may be made without monetary consideration,
except that such State agency shall pay to the United States all
amounts received by such agency from any sale, lease, or other
disposition of such property for such housing.
Pub.L. 91-646, Title II, § 218, Jan. 2,1971, 84 Stat. 1902.
SUBCHAPTER III.—UNIFORM REAL PROPERTY ACQUISITION POLICY
§ 4651. Uniform policy on real property acquisition practices
In order to encourage and expedite the acquisition of real prop-
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STATUTES AND LEGISLATIVE HISTORY 1071
erty by agreements with owners, to avoid litigation and relieve
congestion in the courts, to assure consistent treatment for owners
in the many Federal programs, and to promote public confidence
in Federal land acquisition practices, heads of Federal agencies
shall, to the greatest extent practicable, be guided by the following
policies:
(1) The head of a Federal agency shall make every reasonable
effort to acquire expeditiously real property by negotiation.
(2) Real property shall be appraised before the initiation of
negotiations, and the owner or his designated representative shall
be given an opportunity to accompany the appraiser during his
inspection of the property.
(3) Before the initiation of negotiations for real property, the
head of the Federal agency concerned shall establish an amount
which he believes to be just compensation therefor and shall make
a prompt offer to acquire the property for the full amount so
established. In no event shall such amount be less than the agen-
cy's approved appraisal of the fair market value of such property.
Any decrease or increase in the fair market value of real property
prior to the date of valuation caused by the public improvement
for which such property is acquired, or by the likelihood that the
property would be acquired for such improvement, other than that
due to physical deterioration within the reasonable control of the
owner, will be disregarded in determining the compensation for
the property. The head of the Federal agency concerned shall
provide the owner of real property to be acquired with a written
statement of, and summary of the basis for, the amount he estab-
lished as just compensation. Where appropriate the just compen-
sation for the real property acquired and for damages to remain-
ing real property shall be separately stated.
(4) No owner shall be required to surrender possession of real
property before the head of the Federal agency concerned pays the
agreed purchase price, or deposits with the court in accordance
with section 258a of Title 40, for the benefit of the owner, an
amount not less than the agency's approved appraisal of the fair
market value of such property, or the amount of the award of
compensation in the condemnation proceeding for such property.
(5) The construction or development of a public improvement
shall be so scheduled that, to the greatest extent practicable, no
person lawfully occupying real property shall be required to move
from a dwelling (assuming a replacement dwelling as required by
subchapter II of this chapter will be available), or to move his
business or farm operation, without at least ninety days' written
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1072 LEGAL COMPILATION—GENERAL
notice from the head of the Federal agency concerned, of the date
by which such move is required.
(6) If the head of a Federal agency permits an owner or tenant
to occupy the real property acquired on a rental basis for a short
term or for a period subject to termination by the Government on
short notice, the amount of rent required shall not exceed the fair
rental value of the property to a short-term occupier.
(7) In no event shall the head of a Federal agency either ad-
vance the time of condemnation, or defer negotiations or condem-
nation and the deposit of funds in court for the use of the owner,
or take any other action coercive in nature, in order to compel an
agreement on the price to be paid for the property.
(8) If any interest in real property is to be acquired by exercise
of the power of eminent domain, the head of the Federal agency
concerned shall institute formal condemnation proceedings. No
Federal agency head shall intentionally make it necessary for an
owner to institute legal proceedings to prove the fact of the taking
of his real property.
(9) If the acquisition of only part of a property would leave its
owner with an uneconomic remnant, the head of the Federal
agency concerned shall offer to acquire the entire property.
Pub.L. 91-646, Title III, § 301, Jan. 2,1971, 84 Stat. 1904.
§ 4652. Buildings, structures, and improvements
(a) Notwithstanding any other provision of law, if the head of
a Federal agency acquires any interest in real property in any
State, he shall acquire at least an equal interest in all buildings,
structures, or other improvements located upon the real property
so acquired and which he rejquires to be removed from such real
property or which he determines will be adversely affected by the
use to which such real property will be put.
(b) (1) For the purpose of determining the just compensation
to be paid for any building, structure, or other improvement re-
quired to be acquired by subsection (a) of this section, such build-
ing, structure, or other improvement shall be deemed to be a part
of the real property to be acquired notwithstanding the right or
obligation of a tenant, as against the owner of any other interest
in the real property, to remove such building, structure, or im-
provement at the expiration of his term, and the fair market value
which such building, structure, or improvement contributes to the
fair market value of the real property to be acquired, or the fair
market value of such building, structure, or improvement for re-
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STATUTES AND LEGISLATIVE HISTORY 1073
moval from the real property, whichever is the greater, shall be
paid to the tenant therefor.
(2) Payment under this subsection shall not result in duplica-
tion of any payments otherwise authorized by law. No such pay-
ment shall be made unless the owner of the land involved disclaims
all interest in the improvements of the tenant. In consideration for
any such payment, the tenant shall assign, transfer, and release to
the United States all his right, title, and interest in and to such
improvements. Nothing in this subsection shall be construed to
deprive the tenant of any rights to reject payment under this
subsection and to obtain payment for such property interests in
accordance with applicable law, other than this subsection.
Pub.L. 91-646, Title III, § 302, Jan. 2,1971, 84 Stat. 1905.
§ 4653. Expenses incidental to transfer of title to United States
The head of a Federal agency, as soon as practicable after the
date of payment of the purchase price or the date of deposit in
court of funds to satisfy the award of compensation in a condem-
nation proceeding to acquire real property, whichever is the ear-
lier, shall reimburse the owner, to the extent the head of such
agency deems fair and reasonable, for expenses he necessarily
incurred for—
(1) recording fees, transfer taxes, and similar expenses
incidental to conveying such real property to the United
States;
(2) penalty costs for prepayment of any preexisting re-
corded mortgage entered into in good faith encumbering such
real property; and
(3) the pro rata portion of real property taxes paid which
are allocable to a period subsequent to the date of vesting title
in the United States, or the effective date of possession of
such real property by the United States, whichever is the
earlier.
Pub.L. 91-646, Title III, § 303, Jan. 2, 1971, 84 Stat. 1906.
§ 4654. Litigation expenses
(a) The Federal court having jurisdiction of a proceeding insti-
tuted by a Federal agency to acquire real property by condemna-
tion shall award the owner of any right, or title to, or interest in,
such real property such sum as will in the opinion of the court
reimburse such owner for his reasonable costs, disbursements, and
expenses, including reasonable attorney, appraisal, and engineer-
ing fees, actually incurred because of the condemnation proceed-
ings, if—
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1074 LEGAL COMPILATION—GENERAL
(1) the final judgment is that the Federal agency cannot
acquire the real property by condemnation; or
(2) the proceeding is abandoned by the United States.
(b) Any award made pursuant to subsection (a) of this section
shall be paid by the head of the Federal agency for whose benefit
the condemnation proceedings was instituted.
(c) The court rendering a judgment for the plaintiff in a pro-
ceeding brought under section 1346(a) (2) or 1491 of Title 28
awarding compensation for the taking of property by a Federal
agency, or the Attorney General effecting a settlement of any such
proceeding, shall determine and award or allow to such plaintiff,
as a part of such judgment or settlement, such sum as will in the
opinion of the court or the Attorney General reimburse such plain-
tiff for his reasonable costs, disbursements, and expenses, includ-
ing reasonable attorney, appraisal, and engineering fees, actually
incurred because of such proceeding.
Pub.L. 91-646, Title III, § 304, Jan. 2, 1971, 84 Stat. 1906.
§ 4655. Requirements for uniform land acquisition policies; pay-
ments of expenses incidental to transfer of real property to State;
payment of litigation expenses in certain cases
Notwithstanding any other law, the head of a Federal agency
shall not approve any program or project or any grant to, or
contract or agreement with, a State agency under which Federal
financial assistance will be available to pay all or part of the cost
of any program or project which will result in the acquisition of
real property on and after January 2, 1971, unless he receives
satisfactory assurances from such State agency that—
(1) in acquiring real property it will be guided, to the
greatest extent practicable under State law, by the land acqui-
sition policies in section 4651 of this title and the provisions
of section 4652 of this title, and
(2) property owners will be paid or reimbursed for neces-
sary expenses as specified in sections 4653 and 4654 of this
title.
Pub.L. 91-646, Title III, § 305, Jan. 2, 1971, 84 Stat. 1906.
-------
STATUTES AND LEGISLATIVE HISTORY 1075
l.lOa UNIFORM RELOCATION ASSISTANCE AND
REAL PROPERTY ACQUISITION POLICIES ACT OF 1970
January 2, 1970, P.L. 91-646, §213, 84 Stat. 1900
REGULATIONS AND PROCEDURES
Sec. 213. (a) In order to promote uniform and effective admin-
istration of relocation assistance and land acquisition of State or
local housing agencies, or other agencies having programs or pro-
jects by Federal agencies or programs or projects by State agen-
cies receiving Federal financial assistance, the heads of Federal
agencies shall consult together on the establishment of regulations
and procedures for the implementation of such programs.
(b) The head of each Federal agency is authorized to establish
such regulations and procedures as he may determine to be neces-
sary to assure—
(1) that the payments and assistance authorized by this
Act shall be administered in a manner which is fair and
reasonable, and as uniform as practicable;
(2) that a displaced person who makes proper application
for a payment authorized for such person by this title shall be
paid promptly after a move or, in hardship cases, be paid in
advance; and
(3) that any person aggrieved by a determination as to
eligibility for a payment authorized by this Act, or the
amount of a payment, may have his application reviewed by
the head of the Federal agency having authority over the
applicable program or project, or in the case of a program or
project receiving Federal financial assistance, by the head of
the State agency.
(c) The head of each Federal agency may prescribe such other
regulations and procedures, consistent with the provisions of
this Act, as he deems necessary or appropriate to carry out
this Act.
[p. 1900]
-------
1076 LEGAL COMPILATION—GENERAL
1.10a(l) SENATE COMMITTEE ON GOVERNMENT
OPERATIONS
S. REP. No. 91-488, 91st Cong., 1st Sess. (1969)
UNIFORM RELOCATION ASSISTANCE AND LAND
ACQUISITION POLICIES ACT OF 1969
OCTOBER 21, 1969.—Ordered to be printed
Mr. MUSKIE, from the Committee on Government Operations,
submitted the following
REPORT
[To accompany S. 1]
The committee on Government Operations, to which was re-
ferred the bill (S. 1) to provide for uniform and equitable treat-
ment of persons displaced from their homes, businesses, or farms
by Federal and federally assisted programs and to establish uni-
form and equitable land acquisition policies for Federal and feder-
ally assisted programs, having considered the same, reports favor-
ably thereon, with amendment, and recommends that the bill, as
amended, do pass.
PURPOSE
S. 1, the Uniform Relocation Assistance and Land Acquisition
Policies Act of 1969, is designed to provide for uniform and equi-
table treatment of persons displaced from their homes, businesses,
or farms by Federal or federally assisted programs, and to estab-
lish uniform and equitable land acquisition policies for Federal
and federally assisted programs.
The accelerating demands for public services of all kinds, and
the attendant growth in population, particularly in urban areas,
has brought with it the shattering effect of people displaced from
their homes, their neighborhoods, and their businesses to make
way for public projects.
In its studies and its hearings, the Subcommittee on Intergov-
ernmental Relations demonstrated, the effects of this displacement
and the need for fair and reasonable measures of assistance for
those being displaced.
[p-l]
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STATUTES AND LEGISLATIVE HISTORY 1077
In large part, S. 1 is designed to permit the Federal Government
to deal consistently and fairly with all those whose property is
taken for public projects and all those who are displaced from
their homes and their businesses. It follows as closely as possible
the substantive provisions of the Housing and Urban Development
Act and the Federal Highway Act, modifying them only as neces-
sary to achieve a system of requirements and aids that can be
applied uniformly in all Federal and federally assisted programs.
It gives particular attention to the need for consistency in deal-
ings with property owners and displaced persons. It places respon-
sibility for coordination of all Federal operations under the act in
the Executive Office of the President.
The bill further provides that one State or local agency may
make relocation payments and provides relocation assistance on
behalf of all programs causing displacements in the locality. This
will reduce conflict and confusion in the federally aided program
areas.
EXPLANATION OF AMENDMENTS
S. 1, as amended, has four titles: "Title I—Definitions," "Title
II—Uniform Relocation Assistance," "Title III—Uniform Land
Acquisition Policy," and "Title IV—Judicial Review."
Title IV of the amended bill was added by the committee.
The principal changes made by amendment, title by title, are as
follows:
[p. 2]
TITLE II—UNIFORM RELOCATION ASSISTANCE
S. 1, as introduced, did not provide for comparability of assist-
ance provisions between farm and business operations. Section
211 (c) (1 )and (d) (1), as amended, would provide for such com-
parability of assistance.
In recognition of the problem of small business displacement,
the committee added language to section 211 (c) (1) providing for
assistance on behalf of the so-called mom-and-pop enterprise.
Section 213, as amended, includes provision of more flexible
reimbursement provisions to fit the economic characteristics of
different parts of the country, in order to take into account ex-
traordinarily high cost-of-living areas.
As introduced, section 214 provided for fund availability for
both Federal and federally assisted programs. This section was
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1078 LEGAL COMPILATION—GENERAL
shifted in order to eliminate possible confusion on the intent of the
measure to cover both types of programs, and is now section 254.
S. 1, as introduced, did not provide that relocation payments
could be made administratively by the head of the Federal agency
acquiring real property nor that none of the relocation provisions
in any way affected any condemnation action or the just compen-
sation to be determined or payment to the landowner in such
action. Accordingly the committee amended the bill to make such
provisions by adding a new subsection 211 (h),
In recognition of the fact that relocation assistance might not be
available to persons displaced by peculiar sets of circumstance, or
who were not otherwise included under the provisions of the bill,
the committee added section 233 which is intended to cover such
situations.
Thus, section 233 would make eligible for relocation relief resi-
dents who and businesses which remained on, or moved to, prop-
erty after it was acquired by a Federal agency, but left such
property on or after January 1, 1969, and before the effective date
of the act, providing they remained on the property at least 1 year
prior to the date of enactment of the legislation. Such residents
and businesses would be covered only where the Federal Govern-
ment acquired and held the property for at least 5 years prior to
the effective date of the act.
All such persons and businesses on the property subsequent to
the effective date of the act would be entitled to its benefits if
forced to relocate.
[p. 3]
HEARINGS
Public hearings were held by the Senate Subcommittee on Inter-
governmental Relations on February 19, 20, 25, 26, and 27, 1969,
on S. 1, the proposed Uniform Relocation Assistance and Land
Acquisition Policies Act of 1969.
More than 30 witnesses testified, including, among others: U.S.
Senators Charles McC. Mathias, and Joseph D. Tydings, both of
Maryland, and Frank E. Moss, of Utah; U.S. Representatives
Henry B. Gonzalez, 21st Congressional District of Texas, and Ed-
ward I. Koch, 17th Congressional District of New York; Phillip S.
Hughes, Deputy Director, Bureau of the Budget, accompanied by
James M. Frey, Deputy Director, Office of Legislative Reference;
William G. Coleman, Executive Director, Advisory Commission on
Intergovernmental Relations, accompanied by David B. Walker,
Assistant Director (Governmental Structure and Functions) ;
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STATUTES AND LEGISLATIVE HISTORY 1079
James L. Martin, assistant director, office of Federal-State rela-
tions, National Governors' Conference; Mrs. Gladys N. Spellman,
member of the Board of County Commissioners, Prince Georges
County, Md., and vice president of the National Association of
Counties, accompanied by Jerry Laughlin, legislative assistant,
National Association of Counties; Hon. Thomas D'Alesandro,
mayor of the city of Baltimore, accompanied by Arthur G. Chris-
tensen, acting director for relocation, department of housing and
community development; L. Thomas Appleby, vice president for
renewal, National Association of Housing & Redevelopment
[p. 5]
Officials and president of the United Nations Development Corpo-
ration, New York, N.Y., accompanied by Miss Mary K. Nenno,
associate director, program policy/research, NAHRO, and Peter
R. Reimer, Deputy Director for Operations, Redevelopment Land
Agency of Washington, D.C.; Clarence Mitchell, director, Wash-
ington bureau, National Association for the Advancement of Col-
ored People, accompanied by Jesse H. Hamilton, chairman of the
board of directors of the Frederick Douglass United Community
Center, and Anacostia Merchants and Citizens Committee; David
K. Hartley, director of institute development, American Institute
of Planners; Ross G. Stapp, president, American Association of
State Highway Officials, accompanied by A. E. Johnson, executive
director; Phillip Tocker, president, Outdoor Advertising Associa-
tion of America, accompanied by Frank Blake, vice president, and
John E. Murray, counsel; Lawson B, Knott, Administrator, Gen-
eral Services Administration, accompanied by Joe E. Moody, Dep-
uty Administrator; Berkeley G. Burrell, president, National Busi-
ness League, accompanied by Buxton Cooke, associate director of
research; Matt Triggs, assistant legislative director, American
Farm Bureau; Richard C. Van Dusen, Under Secretary, Depart-
ment of Housing and Urban Development, accompanied by Sher-
man Unger, General Counsel; F. C. Turner, Director, Bureau of
Public Roads, accompanied by John Jamieson, Acting Federal
Highway Administrator; John O'Marra, Assistant Postmaster
General Bureau of Facilities, accompanied by David A. Nelson,
General Counsel; Woodrow L. Berge, Director of Real Estate,
Army Corps of Engineers, accompanied by Loney W. Hart, Chief,
Legislative Services, and Roy Markon, Chief, Acquisition Division.
In opening the hearings, Chairman Muskie said:
We begin hearings on legislation to establish a uniform
policy with respect to relocation assistance and land ac-
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1080 LEGAL COMPILATION—GENERAL
quisition involving Federal and federally assisted pro-
grams.
In my opinion, this is as high priority a measure as
stands before the Senate today. There are more than 50
Federal programs which result in the condemning of
land and, literally, the bulldozing of hundreds of thou-
sands of people from their homes and businesses each
year.
A large number of these people are low-income fami-
lies. They are the elderly. They are small farmers and
small businessmen. Most of their entire lives and eco-
nomic well-being have centered around the property or
neighborhoods which are being uprooted.
We know what we are doing to these people, but what
are we doing for them? The record is clear. Nearly all
federally assisted programs have differing and conflict-
ing provisions for helping those displaced. They range
from no assistance at all in some cases to liberal benefits
and protection in others, such as that provided by urban
renewal.
The letters that we have received from the displaced
persons describing the inequities in this treatment are
heart rending.
In a typical hardship neighborhood, people on one side
of the street were receiving special relocation assistance
and fairly negotiated prices for their land, while on the
other, they were being evicted with no assistance and
[p. 6]
compensation, and prices were being offered by Federal
authorities at below the appraised value. Up the street an
expressway was coming through with a set of moderate
benefits and land-taking policies—a situation which has
been cleaned up substantially by last year's Federal Aid
Highway Act. And in another section of the neighbor-
hood, small businesses were receiving little or no assist-
ance either in relocation or economic adjustment.
The supreme irony of this is the fact that these were
problems caused by Federal programs where Federal
taxpayer money was involved.
This lack of uniformity only provides irritation and
confusion in the communities affected. It provides an un-
-------
STATUTES AND LEGISLATIVE HISTORY 1081
fortunate image of the Federal Government at the State
and local level. It results in a continuing and annoying
conflict between Federal agencies and State and local aid
recipients. And it undermines confidence in and support
for Government programs.
This problem has been explored in depth by the sub-
committee over the past 4 years. Building on the recom-
mendations of the Select Subcommittee on Real Property
Acquisition of the House Public Works Committee, a spe-
cial report of the Advisory Commission on Intergovern-
mental Relations, and other basic studies in the field, we
held hearings in 1965, and reported out S. 1681, which
was passed unanimously by the Senate during the 89th
Congress.
Hearings were held again in the 90th Congress, and
the legislation was improved and strengthened. It was
added as a part of S. 698, the Intergovernmental Cooper-
ation Act, which also passed the Senate unanimously.
During the 90th Congress, Congress included in its
Highway Act of 1968 a substantial part of the relocation
provisions of S. 698, and expanded HUD's relocation au-
thorizations under the Housing Act of 1949.
Although the House passed S. 698, it did not include
the relocation and land acquisition sections of the bill
because the House Public Works Committee had not com-
pleted its consideration of these issues. Nevertheless, the
conferees on S. 698 were in agreement on the desirability
of congressional action on a uniform relocation and ac-
quisition bill, and recommended that action be taken as
soon as possible.
We understand the House Public Works Committee
plans hearings and active consideration of such legisla-
tion this session.
The present bill is almost identical with the bill which
passed the Senate last year. But, because we have a new
administration and several new committee members, I
thought it would be desirable to conduct hearings prior
to subcommittee and committee action in this Congress.
Our primary objective in sponsoring S. 1 is to estab-
lish a uniform policy among Federal agencies, and State
and local recipients of Federal funds in their dealings
[p. 7]
-------
1082 LEGAL COMPILATION—GENERAL
with property owners and others displaced by Federal or
federally aided land acquisitions.
The economic and social problems created by the im-
pact of such acquisitions have long been at the top of our
country's list of domestic burdens. Various estimates in-
dicate the displacement of over 1 million families,
180,000 businesses, and 40,000 farms over the next 10
years.
Much of this problem will be relieved by the present
relocation and acquisition programs of HUD, and the
new programs under the Highway Act to which I have
referred. But many other agencies and programs still
lack any consistency or identity with requirements of
these programs.
The result of these inconsistencies has caused serious
confusion and hardship, and will continue to do so unless
there is a coordination of all Federal and federally as-
sisted operations in the Executive Office of the President.
The uprooting of an individual, his family, his business
or farm, and the taking of his land is a very personal
matter. We cannot make the process painless, but we can
insure fair and even-handed administration, consistent
with protection of individual rights and community
needs, no matter what agency is involved.
S. 1 seeks to do this in two ways:
First, it provides for relocation payments, advisory
assistance, assurance of available relocation housing, and
economic adjustments and other assistance to owners,
tenants, and others displaced.
Second, it establishes policies to guide all Federal and
federally assisted agencies in negotiation with owners
for the acquisition of real property for public use.
The testimony of the witnesses was overwhelmingly in
support of the objectives of the legislation—produced
suggestions for additions and improvements—all of
which were thoroughly considered by the committee.
SECTION-BY-SECTION ANALYSIS
[p. 8]
-------
STATUTES AND LEGISLATIVE HISTORY 1083
TITLE II—UNIFORM RELOCATION ASSISTANCE
Declaration of policy
Section 201 states that it is the purpose of this title to establish
a uniform policy for the fair and equitable treatment of owners,
tenants, and other persons displaced by the acquisition of real
property in Federal or federally assisted programs to the end that
such persons shall not suffer disproportionate injuries as a result
of programs designed for the benefit of the public as a whole. It
provides that such a policy shall be uniform as practicable as to
relocation payments, advisory assistance, assurance of availability
of standard housing, and Federal reimbursement for relocation
payments under federally assisted programs.
*******
[P. 10]
States furnishing real property incident to Federal assistance
Section 213 provides that whenever real property is acquired by
a State agency and furnished as a required contribution incident
to a Federal project to improve a locality, the Federal agency may
not accept such property unless the acquiring State agency has
made relocation payments, provided relocation assistance, and pro-
vided assurance of availability of housing as required in the case
of acquisitions of real property by a Federal agency. The State
agency shall bear the costs of relocation payments and assistance
as a part of the real property acquisition cost, except that the
Federal agency having authority over the project shall contribute
the first $25,000 of the cost of providing such payments and assist-
ance to any person displaced prior to July 1, 1972. The figure is
increased to $27,500 if the displaced person, at the time of dis-
placement, lives in a State which is not contiguous to any other
State.
[P. 13]
-------
1084 LEGAL COMPILATION—GENERAL
1.10a(2) HOUSE COMMITTEE ON PUBLIC WORKS
H.R. REP. No. 91-1656, 91st Cong., 2d Sess. (1970)
UNIFORM RELOCATION ASSISTANCE AND REAL
PROPERTY ACQUISITION POLICIES ACT OF 1970
DECEMBER 2, 1970.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. FALLON, from the Committee on Public Works,
submitted the following
REPORT
[To accompany S. 1]
The Committee on Public Works, to whom was referred the bill
(S. 1) to provide for uniform and equitable treatment of persons
displaced from their homes, businesses, or farms by Federal and
federally assisted programs and to establish uniform and equitable
land acquisition policies for Federal and federally assisted pro-
grams, having considered the same, report favorably thereon with
an amendment and recommend that the bill as amended do pass.
The amendment is as follows :
Strike out all after the enacting clause and insert in lieu thereof
the matter that appears in italic type in the reported bill.
PURPOSE
The Uniform Relocation Assistance and Real Property Acquisi-
tion Policies Act of 1970 is the culmination of lengthy and exten-
sive efforts to develop legislation establishing a uniform policy for
the fair and equitable treatment of persons who are displaced, or
have their real property taken for Federal and federally assisted
programs. The need for such legislation arises from the increasing
impact of Federal and federally assisted programs as such pro-
grams have evolved to meet the needs of a growing and increas-
ingly urban population. In a less complex time, Federal and feder-
ally assisted public works projects seldom involved major displace-
ments of people. There was relatively little taking of residential or
commercial property for farm-to-market routes or for reservoirs
or public buildings. Indeed, local support for such projects often
-------
STATUTES AND LEGISLATIVE HISTORY 1085
resulted in little, if any, cost for land acquisition or rights-of-way.
However, with the growth and development of an economy which
is increasingly urban and metropolitan, the demand for public
[p.l]
facilities and services has increasingly centered on such urban
areas, and the acquisition of land for such projects has become the
most difficult facet of many undertakings by public agencies. Also,
a major public project—be it a highway, urban renewal project,
or hospital—inevitably involves the acquisition and clearance of
sites which now provide residential, commercial, or other services.
As the thrust of Federal and federally assisted programs have
shifted from rural to urban situations, it became increasingly
apparent that the application of traditional concepts of valuation
and eminent domain resulted in inequitable treatment for large
numbers of people displaced by public action. When applied to
densely populated urban areas, with already limited housing, the
result can be catastrophic for those whose homes or businesses
must give way to public needs. The result far too often has been
that a few citizens have been called upon to bear the burden of
meeting public needs.
These circumstances have received long and careful examina-
tion by committees of the Congress. In October 1961, the House
Committee on Public Works established the Select Committee on
Real Property Acquisition for the specific purpose of providing a
comprehensive appraisal of the impact of Federal and federally
assisted programs on displaced persons and property owners. This
select subcommittee was chaired by the late Clifford Davis, of
Tennessee, whose long experience in legislative affairs made a
tremendous contribution to the workings of the subcommittee. The
staff report to that subcommittee stands as the most comprehen-
sive and authoritative work on the subject ever undertaken (Com-
mittee Print 31, 88th Congress, second session, 1964).
The imperative need for a uniform, fair, and comprehensive
program in this area has been further documented in three major
surveys. These are: Relocation: Unequal Treatment of People and
Businesses Displaced by Governments, by the Advisory Commis-
sion on Intergovernmental Relations (January 1965) ; Housing of
Relocated Families—Summary of the Bureau of the Census Sur-
vey of Families Recently Displaced from Urban Renewal Sites, by
the then Housing and Home Finance Agency, Office of the Admin-
istrator (March 1965) ; and the Highway Relocation Assistance
Study, required by section 12, Public Law 89-574, 89th Congress,
-------
1086 LEGAL COMPILATION—GENERAL
second session, prepared by Bureau of Public Roads of the Depart-
ment of Transportation (July 1967).
In addition, several committees of Congress have held numerous
hearings on the subject in an effort to develop a comprehensive
Federal policy. A major precedent was established in the Federal-
Aid Highway Act of 1968, which provided a far more equitable
and just system of relocation payments for both property owners
and tenants displaced by federally assisted highway projects. On
November 20, 1969, H.R. 14898 was introduced by Chairman Fal-
lon to establish uniform policies for all Federal and federally
assisted land acquisition programs. Beginning in December 1969
and continuing into the spring of this year, the committee held
extensive hearings and received very helpful testimony from a
variety of witnesses with knowledge and experience in this field.
The bill as recommended is necessary to eliminate the great
inconsistencies that exist among Federal and federally assisted
programs with respect to the amount and scope of payments, other
[p. 2]
assistance provided, and assurance of housing offered. It recog-
nizes that relocation is a serious and growing problem in the
United States and that the pace of displacement will accelerate in
the years immediately ahead. It recognizes that advisory assist-
ance is of special importance in the relocation process especially
for the poor, the nonwhite, the elderly, and people engaged in
small business. It recognizes the need for more equitable land
acquisition policies in connection with the acquisition of real prop-
erty for these programs. In short, this legislation recognizes that
the Federal Government has a primary responsibility to provide
uniform treatment for those forced to relocate by Federal and
federally aided public improvement programs and to ease the im-
pact of such forced moves.
This legislation refines and strengthens the basic principles and
programs in S. 1, as passed by the Senate. It provides a humani-
tarian program of relocation payments, advisory assistance, assur-
ance that comparable, decent, safe, and sanitary replacement hous-
ing will be available for displaced persons prior to displacement,
economic adjustments, and other assistance to owners and tenants
displaced from their homes, farms, and places of business. It es-
tablishes a uniform policy on real property acquisition practice for
all Federal and federally assisted programs. And, perhaps most
important of all, it gets to the heart of the dislocation problem by
-------
STATUTES AND LEGISLATIVE HISTORY 1087
providing the means for positive action to increase the available
housing supply for displaced low and moderate income families
and individuals.
Each element of the reported bill is discussed in some detail in
the section-by-section explanation that follows in this report.
The committee believes that this bill as reported provides for
relief of the economic dislocation which occurs in the acquisition
of real property for Federal and federally assisted programs. The
tools in the reported bill are adequate to deal with the problem.
The Congress, however, can only provide such tools. Their effec-
tive use depends upon the attitudes and skill of the officials in the
executive branch of the Government responsible for their adminis-
tration. The principle of adequate housing, for example, will re-
quire not only the use of the more liberal financial allowances
authorized by the reported bill, but also imagination, ingenuity,
and a desire on the part of its administrators to translate this
authorization into equitable and satisfactory conditions for the
people affected. It is the committee's intention to review the imple-
mentation of this legislation periodically with special emphasis on
its impact on displaced persons.
This bill, as reported, is reported unanimously. It is a compre-
hensive effort to provide equitably for all persons affected by Fed-
eral or federally assisted programs.
[P-3]
SECTION-BY-SECTION EXPLANATION
*******
TITLE II—UNIFORM RELOCATION ASSISTANCE
*******
Section 213. Regulations and procedures
In order to promote uniform and effective administration of
relocation assistance and land acquisition programs or projects
conducted by Federal agencies or by State agencies with Federal
financial assistance, subsection (a) requires the heads of Federal
agencies to consult together on the establishment of regulations
and procedures for implementing the bill.
Subsections (b) and (c) authorize the heads of Federal agen-
-------
1088 LEGAL COMPILATION—GENERAL
cies to establish regulations and procedures for carrying out the
purposes of the bill, including provisions to assure that—
(1) the payments and assistance authorized by the bill
shall be administered in a manner which is fair and reasona-
ble, and as uniform as practicable;
(2) a displaced person who makes proper application for a
payment authorized for such person by title II shall be paid
promptly after a move or, in hardship cases, be paid in ad-
vance ; and
(3) any person aggrieved by a determination as to eligibil-
ity for a payment authorized by the bill, or the amount of a
payment, may have his application reviewed by the head of
the Federal agency having authority over the applicable pro-
gram or project, or in the case of a program or project receiv-
ing Federal financial assistance, by the head of the State
agency.
The Committee believes that this section, together with sections
212, 214, and other provisions of the bill, offers a reasonable means
for achieving the Congressional objective to provide a uniform
policy that will assure fair and equitable treatment for displaced
persons in all Federal and Federal financially assisted programs,
without unnecessary interference with the jurisdiction and au-
thority of any Federal agency over programs which it administers,
or with present intergovernmental relationships.
The vesting of authority in the heads of each Federal agency
provides flexibility for agencies to formulate procedures consistent
with their respective programs. Uniformity can and should be
accomplished by a coordinated effort among the various agencies.
The Committee anticipates that major program personnel,
among others, in the Executive Office of the President will partici-
pate in discussions with the Federal agency heads, and that pro-
posed regulations and procedures will be reviewed within that
Office, or in cooperation with an advisory group of knowledgeable
people representing a variety of interests, before permanent regu-
lations and procedures are issued by the agencies. The Committee
expects that interim instructions will, in any event, be issued
promptly.
*******
[p. 18]
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STATUTES AND LEGISLATIVE HISTORY
1089
1.10a(3) CONGRESSIONAL RECORD
1.10a(3)(a) Vol. 115 (1969), Oct. 27: Passed Senate, pp. 31533-
31535
UNIFORM RELOCATION ASSIST-
ANCE AND LAND ACQUISI-
TION POLICIES ACT OF 1969
The Senate resumed the considera-
tion of the bill (S. 1) to provide for
uniform and equitable treatment of
persons displaced from their homes,
businesses, or farms by Federal and
federally assisted programs and to
establish uniform and equitable land
acquisition policies for Federal and
federally assisted programs.
Mr. MUSKIE. Mr. President, the
Uniform Relocation Assistance and
Land Acquisition Policies Act of 1969
will establish a uniform policy with
respect to relocation assistance and
land acquisition involving Federal and
federally assisted programs. S. 1 came
to the floor of the Senate with the
sponsorship of 42 Senators, the en-
dorsement of many public officials
throughout the country and the strong
support of citizen groups devoted to
the public interest. Hearings were held
on February 19, 20, 25, 26, and 27,
and the bill was approved by the Sub-
committee on Intergovernmental Rela-
tions on April 16, 1969. Favorable ac-
tion was taken by the Committee on
Government Operations on September
23, 1969.
This is as high priority a measure
as stands before the Senate. There are
more than 50 Federal programs which
result in the condemning of land and
quite literally, the bulldozing of hun-
dreds of thousands of people from
their homes and businesses annually.
Many of these people are low-income
families. Many are the elderly. They
are small farmers and small business-
men. In most cases, their entire lives
and economic and social well-being
have centered around the property or
neighborhoods which are being up-
rooted.
This is what we have been doing to
them. The question that must be an-
swered is: What are we to do for
them?
Here, the record is clear. Nearly all
federally assisted programs have dif-
fering, if not conflicting, provisions
for helping those displaced. They
range from no assistance in some
cases to liberal benefits and protection
in others. This lack of uniformity only
provides irritation and confusion, as
well as an unfortunate image of the
Federal Government at the State and
local level. It has served to undermine
confidence in and support for many
Federal programs.
The problem has been explored thor-
oughly by the Subcommittee on Inter-
governmental Relations over the past
4 years. Building on the recommenda-
tion of the Select Subcommittee on
Real Property Acquisition of the
House Public Works Committee as
well as a special report on the prob-
lem developed by ACIR, and on other
basic studies in the field, legislation
was developed and passed unanimously
by the Senate during the 89th Con-
gress. Again, during the 90th Con-
gress, the legislation, as part of the
Intergovernmental Cooperation Act of
1968, was improved and strengthened
and passed by the Senate. At the
same time, the Congress included in
its Highway Act of 1968, a substantial
part of the relocation provision devel-
oped through earlier efforts, and ex-
panded HUD's relocation authoriza-
tions under the Housing Act of 1949.
Although the House passed the In-
tergovernmental Cooperation Act, it
had not completed its consideration of
the issue of relocation and land ac-
quisition. Conferees on the bill were,
however, in agreement regarding de-
sirability of congressional action on
-------
1090
LEGAL COMPILATION—GENERAL
the matter and recommended that it
be taken up as soon as possible.
I understand that the House Public
Works Committee plans hearings and
active consideration of this legislation
this session.
The primary objective of S. 1 is to
establish a uniform policy among Fed-
eral agencies, and State and local re-
cipients of Federal funds in their deal-
ing with property owners and others
displaced by Federal or federally
aided land acquisitions.
Specifically, S. 1, does this in two
ways: First, it provides for relocation
payments, advisory assistance, assur-
ance of available relocation housing,
and economic adjustments and other
assistance to owners, tenants and oth-
ers displaced; and second, it estab-
lishes policies to guide all Federal and
federally assisted agencies in negotia-
tions with owners for the acquisition
of real property for public use.
With regard to relocation assist-
ance, the displaced person is entitled
to payments including a moving ex-
pense and a dislocation allowance.
The individual's need for readjust-
ment allowance is covered by the bill's
provision that he receive an amount
equal to the average annual net earn-
ings of his business or farm, or $5,000,
whichever is less, if the enterprise had
net earnings of less than $10,000. For
the small farm operator with earnings
of less than $1,000 annually, the bill
provides payment of $1,000.
For the large number of individuals
displaced from their homes, and not
eligible for assistance as owners, the
bill provides payment up to $1,500.
For the owner-occupier, the bill pro-
vides for an amount, which when
added to the acquisition payment,
equals the price required for a decent,
safe, and sanitary dwelling.
The bill further provides that the
Federal Government will provide the
first $25,000 of the cost of providing
such payments and assistance to any
person displaced prior to July 1, 1972.
Relocation policies of the past have
failed to account for the need of advi-
sory assistance for those being dis-
placed by acquisitions for public im-
provements. The bill would require
that steps be taken to assure that the
displaced persons receive the maxi-
mum help necessary to make the move.
These would include the following:
First, determination of the needs of
the displaced families, individuals,
business concerns, and farm operators
for such assistance.
Second, assurance that there will be
adequate services in the areas to which
the affected persons will move, includ-
ing utilities, commercial facilities, and
housing, as well as accessibility to
their places of employment.
Third, assistance to businesses and
farm operators in obtaining and be-
coming established in suitable location.
Fourth, supplying of information
concerning FHA home acquisition pro-
gram benefits, and the small business
disaster loan program and other such
programs offering assistance to dis-
placed persons.
Fifth, assistance in minimizing
hardships incurred as a result of ad-
justing to dislocation.
Sixth, assurance that the coordina-
tion of relocation activities with other
governmental actions undertaken in
the community or nearby areas will be
done.
With regard to uniform land ac-
quisition policies and procedures, the
bill sets forth a congressional man-
date of 12 provisions which must be
followed in the taking of property for
Federal purposes. They are as fol-
lows:
First. Transactions must be carried
out in a manner that will assure that
the person whose property is taken is
no worse off economically than before
the property was taken.
Second. Every reasonable effort
must be made to acquire the property
at a negotiated price.
Third. Real property must be ap-
praised before the negotiations begin,
and the owner is given the opportunity
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STATUTES AND LEGISLATIVE HISTORY
1091
to accompany the appraiser during
his inspection of the property.
Fourth. Before negotiations begin,
the Federal agency head involved will
establish an amount he believes to be
just compensation, but the amount
cannot be less than the approved ap-
praised value of the property. This
[p. 31533]
provision is intended to assure that
the Government will reimburse an
owner in an amount which is fair and
reasonable, and that its offer will not
be less than the appraised value. It is
not intended to preclude effective ne-
gotiation nor establish a one-price
policy.
Fifth. No owner is required to sur-
render possession of real property be-
fore the agency concerned pays the
agreed purchase price.
Sixth. Construction will be sched-
uled to provide the owner/occupant
with at least 90 days' notice to move.
Seventh. If the structure is not re-
quired, he shall offer to permit its
owner to remove it.
Eighth. Those who are permitted to
occupy the property on a rental basis
for a short term, are to be charged a
fair rental value figure.
Ninth. Condemnation time cannot
be advanced nor deferred. Every ef-
fort must be made to assure that the
owner is given reasonable time to
negotiate with the agency.
Tenth. No Federal agency shall in-
tentionally make it necessary for an
owner to institute legal proceedings to
prove the fact of the taking of his
property.
Eleventh. If only a portion is to be
acquired, leaving the unacquired por-
tion without economic use, the Federal
agency concerned shall offer to ac-
quire the whole property.
Twelfth. In determining the bound-
aries of a proposed public improve-
ment, the Federal agency is required
to take into account human considera-
tions including the economic and social
effects on the owners and tenants of
the property in the area.
The testimony of witnesses was
overwhelmingly in support of the ob-
jectives of the legislation.
The problems created by the impact
of such acquisitions have long been
one of the Nation's top domestic bur-
dens. Various estimates place the dis-
placement figure, over the next 10
years, in excess of one million people,
180,000 businesses and 40,000 farms.
Much of this problem will be covered
by the present relocation and acquisi-
tion programs of HUD and the new
programs authorized under the High-
way Act of 1968. Yet, many other
agencies and programs still lack con-
sistency as well as identity with re-
quirements of these programs.
The results of these inconsistencies
have caused confusion and hardship—
often of a very serious nature. They
will continue to do so unless there is
coordination of all operations.
The uprooting of an individual, his
family, his business or farm, and the
taking of his land is a very personal
matter. We cannot make the process
painless, but we can insure fair and
evenhanded administration—consist-
ent with protection of individual
rights and community needs. To do
less is to continue to exact a high
price from people who are least able
to absorb the burden of these Federal
programs.
Mr. President, I ask unanimous con-
sent that the committee amendments
be agreed to en bloc.
The ACTING PRESIDENT pro
tempore. Is there objection? The Chair
hears none, and it is so ordered.
Mr. MUNDT. Mr. President, I want
to associate myself with the remarks
of my colleague, the senior Senator
from Maine, in support of passage of
S. 1. This legislation would provide
fair and just treatment for those
whose home and businesses are taken
for projects of the Federal Govern-
ment or by State and local govern-
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1092
LEGAL COMPILATION—GENERAL
ment with Federal financial assist-
ance.
This bill has one basic purpose and
that is to make these people so dis-
placed "economically whole." Our Con-
stitution provides that when property
is taken for a public purpose that the
owner will receive just compensation.
However, when the fair price is paid
for the property it does not provide
for expenses that are incurred by the
owner for being disrupted and in seek-
ing a new location for his home or
business. This bill would seek to com-
pensate for these expenses and would
seek to establish uniform land acquisi-
tion policies in the hope that the Gov-
ernment as buyer and the landowner
as seller can arrive at a just price
without going into condemnation court.
The effort to provide additional
compensation was recognized by Con-
gress when it approved the urban re-
newal legislation and more recently in
the Highway Act of 1968. Our bill
seeks to carry the benefit of these two
statutes to all Federal and federally
assisted land acquisition to provide
uniformity of policy so badly needed
in this area.
The Senate approved the essential
language of S. 1 in both the 89th and
90th Congresses in recognition of this
need and I hope it will see fit to do so
again today.
Mr. JAVITS. Mr. President, it is a
fact, is it not, that this legislation is
really a landmark measure, and I ask
that with real deference to the Sena-
tor from Maine, because so many of
us have joined with him so often in
legislative matters.
Mr. MUSKIE. It is a landmark
measure. And I welcome the opportu-
nity to express my appreciation to the
distinguished Senator from New York
and all the other cosponsors who have
taken a real and active interest in the
legislation.
The fact that the measure passed so
easily is a reflection of the fact that
over the past 3 years a great deal of
time and effort has been devoted to it
and many committee hearings have
been held in which the Senator was
involved.
I hope that this year the Senate ac-
tion will be matched on the House
side.
Mr. JAVITS. Mr. President, this
matter has been and is of profound
importance. It is so difficult for peo-
ple to understand the structure of the
inequities involved here in respect to
housing and road construction when
we are dealing with the homes of in-
dividuals. Under the leadership of the
distinguished Senator from Maine
(Mr. MUSKIE), this measure has been
brought to passage. It is a matter
that has been long overdue.
Mr. President, we all owe a debt of
gratitude to the distinguished Senator
from South Dakota (Mr. MUNDT) , the
ranking member of the committee.
Mr. MUSKIE. Mr. President, the
distinguished Senator from South Da-
kota (Mr. MUNDT) has taken affirma-
tive, positive, and a cooperative atti-
tude toward the bill during the 3 or 4
years we have studied the measure
and has made invaluable contributions
to its structure. He has been of great
assistance. I have welcomed his help
and support over the years.
Mr. JAVITS. Mr. President, I think
it is fair for us to express a deep feel-
ing of grievance over the inequities
which the bill seeks to cure. I hope
very much for that reason that it will
find a response in the other body.
The Senator from Maine, the Sena-
tor from South Dakota, and I and
others will do our utmost in this en-
deavor.
Mr. President, relating to the so-
called outdoor advertising industry
amendment, this measure also dealt
with moving expenses for billboards.
I want to confirm that by collabora-
tion between the majority and minor-
ity, the expenses of moving the bill-
boards were limited to what they are
really entitled to under the present
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STATUTES AND LEGISLATIVE HISTORY
1093
Federal law, and that there is no ex-
pansion of anything but the concepts
established by virtue of codification
which is the inheritance from the old
bill.
Mr. MUSKIE. The Senator is cor-
rect. I know that he has taken a spe-
cial interest in this problem and with
his help, the outdoor advertising busi-
ness is helped to the extent of making
it eligible for actual moving costs and
no more. This is the sort of assistance
which is available to many displaced
businesses.
Mr. JAVITS. Mr. President, I thank
the Senator.
Mr. President, I congratulate the
Senator from Maine. It has been a
longstanding fight. I think that really
out of deference to him we ought to
move heaven and earth to get this
matter enacted into law.
Mr. MUSKIE. I thank the Senator
from New York.
THE MOM AND POP AMENDMENT
Mr. TYDINGS. Mr. President, as a
cosponsor of S. 1, the Uniform Relo-
cation Assistance and Land Acquisi-
tion Policies Act of 1969, I am pleased
that the Senate will shortly enact the
bill and want to congratulate the jun-
ior Senator from Maine for his fine
effort on the Intergovernmental Rela-
tions Subcommittee in preparing this
legislation.
Providing for uniform and equita-
ble treatment of persons displaced
from their homes, businesses, or farms
by Federal or federally assisted proj-
ects is only fair.
The disruptive impact on people as
they are displaced is now all too fa-
miliar. Hearings held by the sub-
committee have illustrated the damag-
ing effects on individuals resulting
from displacement. They brought out
the confusion and unfairness caused
by the basic inadequacy and inconsist-
ency of the measures available to the
public agencies to relieve the conse-
quent hardship.
This bill will go a long way toward
removing this inconsistency and in-
adequacy.
Mr. President, of special interest to
[p. 31534]
me is the effect of land acquisition,
clearance, and relocation of small bus-
inesses, particularly those owned by
the elderly—such as the "mom and
pop" grocery or candy store. The price
of progress here in urban renewal is
very high. It often means destruction
of the livelihood of the small neigh-
borhood storekeeper.
I know of a corner candy store
owner in Baltimore who lived in the
same location for 40 years. His store
was a hub of neighborhood activity,
part and parcel of the community. I
lived nearby when I was a student at
the University of Maryland and often
stopped off at the store to chat and
buy a newspaper or last-minute gro-
ceries.
An urban renewal project was
begun in the neighborhood a number
of years later, land was acquired and
the store owner reimbursed for his
property. But the amount was insuffi-
cient. The owner was too old to start
again. His clientele was gone, his
goodwill a thing of the past. He was
set adrift at age 65 with little or no
future.
I felt that such an individual de-
served additional assistance.
I, therefore, offered an amendment
which provided a lump-sum payment,
in lieu of relocation and moving ex-
penses, equal to three times the aver-
age annual net earnings of the busi-
ness for the last 3 years to be made to
a store owner over 50 years of age.
This was known as the "mom and
pop amendment" and provided for the
small business proprietor who could
not start over again.
The subcommittee accepted my
amendment but changed the payment
to twice the annual net earnings, lim-
ited the payments to not more than
$5,000, and raised the age requirement
-------
1094
LEGAL COMPILATION—GENERAL
to 62. I felt that, while a step in the
right direction, this still fell short of
what was really needed.
I thus urged the subcommittee at its
hearings on February 20 of this year
to increase the amount of the possible
payment and, at the minimum, to
lower the age limitation to 58 years.
This would not substantially in-
crease the cost of the program, but
would soften significantly the impact
of dislocation on our older, small busi-
nessmen.
The subcommittee agreed to in-
crease the upper limitation of the pay-
ment to not more than $6,000, an in-
crease of $1,000; to allow the payment
to be equal to three times the average
annual net earnings, as originally pro-
vided, rather than twice; and to lower
the age requirements from 62 to 60.
The amendment, the last sentence in
section 211(c)(l) of the bill, now
reads:
Notwithstanding the preceding sentence, in
the case of a displaced person who is sixty
years of age or over, this payment shall be
in an amount equal to three times the aver-
age annual net earnings of the business or
$6.000, whichever is less.
The subcommittee deserves high
marks for this action which demon-
strates their continued concern for the
Nation's older, small businessman. I
am delighted that it has, to a very
large extent, accepted my "mom and
pop amendment" and want to call this
amendment to the attention of my col-
leagues.
The "mom and pop amendment" will
cushion the impact of federally neces-
sitated relocation programs on many
of our older citizens and ease the often
difficult adjustment period that re-
sults. It is completely within the tra-
dition of a government "for the peo-
ple."
Mr. COOPER. Mr. President, last
year when the Senate Committee on
Public Works, on which I serve as the
ranking minority member, extended
the biennial highway authorizations
and enacted one of the most construc-
tive measures to be recommended to
the Senate during my service on the
committee, it included in the Federal-
Aid Highway Act of 1968 a title II
providing relocation assistance to
families, farms and businesses dis-
placed by road construction. The com-
mittee, under the leadership of our
chairman, the Senator from West Vir-
ginia (Mr. RANDOLPH), and largely on
the initiative of the Senator from
Maine (Mr. MUSKIE), devoted a great
deal of attention and the most careful
consideration to the provisions of title
II, which added a new chapter 5 to
title 23 of the United States Code.
I think it fair to say that we con-
sidered at that time that this legisla-
tion could provide a model for reloca-
tion assistance in the programs of
other Federal agencies which acquire
property in carrying out Federal con-
struction and Federal grant programs.
In fact, in my statement of views,
which were made a part of the com-
mittee report on the Highway Act of
1968, I called attention to the signifi-
cance of this legislation in these
words:
Of great importance, title II will establish
a comprehensive program of relocation assist-
ance designed to assure fair treatment and
reasonable help to those individuals, families,
farms, and businesses displaced by highway
construction projects. I consider these provi-
sions fair, proper, and a great advance in
compensating those who are uprooted and dis-
located by Federal projects. The Intergovern-
mental Relations Subcommittee of the Com-
mittee on Government Operations has given
leadership in this field, and I hope very much
that the relocation assistance provided by this
bill for the highway programs will be extended
to the construction projects of the Corps of
Engineers, and to the other Federal agencies.
I also spoke in the Senate in sup-
port of this wonderful new program—
because I have been interested for
many years in securing fair and better
treatment for those who are displaced
by great dam, highway or other proj-
ects, and I have had a good deal of
experience with those problems as
they have arisen in connection with
projects in my own State of Kentucky.
-------
STATUTES AND LEGISLATIVE HISTORY
1095
The Senators from Maine and from
West Virginia will recall that I sug-
gested at that time that these provi-
sions ought to be extended to Corps of
Engineers' projects, which are also
under the jurisdiction of the Commit-
tee on Public Works.
As I understand, the bill now before
the Senate, S. 1, which has come to us
from the Committee on Government
Operations, would extend to all Fed-
eral agencies and programs the land
acquisition policy and relocation as-
sistance program first applied to road
construction by the 1968 Highway Act
—and its purpose is to do so on a uni-
form basis. While S. 1 technically
would repeal title II of the 1968 act,
those provisions would be incorporated
in this act, and applied to other pro-
grams as well as to the Federal-aid
highway program.
The States are now implementing
the provisions of the 1968 Highway
Act, and as its provisions, or the pro-
visions of S. 1 if adopted by the
House of Representatives, are put into
effect, no doubt some problems may
arise, as is usually the case with any
new program of such scope. But I
hope very much that "the experience
under the Highway Act will prove
helpful. If difficulties arise in apply-
ing these principles to highway or
civil works projects, I am sure that
our committee will want to be helpful.
Providing just compensation, and
equitable assistance to those who are
displaced, so that their lives are not
unduly disrupted by public projects
and they are kept "whole" as we say,
is not simple or easy. But it is right
and necessary, and I have been glad
to support this measure. I commend
the Senator from Maine, and his col-
leagues from South Dakota (Mr.
MUNDT) and New York (Mr. JAVITS)
for what I know was long and careful
work in bringing this bill before the
Senate for its approval.
The ACTING PRESIDENT pro
tempore. The bill is open to further
amendment; if there be no further
amendment to be proposed, the ques-
tion is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed
for a third reading, was read the
third time, and passed.
Mr. MUSKIE. Mr. President, I
move to reconsider the vote by which
the bill was passed.
Mr. BYRD of West Virginia. Mr.
President, I move to lay that motion
on the table.
The motion was agreed to.
[p. 31535]
1.10a(3)(b) Vol. 116 (1970), Dec. 7: Amended and passed House,
pp. 40169-40172
Mr. KYL. Mr. Speaker, I thank the
gentleman for yielding. In this bill we
talk about some of the inequities that
have been forced on individuals by the
administrative departments, and I
would not want to let this opportunity
pass without pointing out some of the
injury which the Congress itself im-
poses in land acquisition propositions
when we continually authorize proj-
ects of various kinds, such as park
and recreation areas, without appro-
priating funds to implement them, and
then literally tying the hands and
capabilities of property owners for
years, until the Congress—not the ad-
ministrative agencies—takes care of
the proposition.
I think this is a good moment to try
to point out that this body is at times
—and quite frequently, I add—guilty
of doing just that. Therefore, we too,
must be conscious of this business of
protecting the rights of the individual
[p. 40169]
-------
1096
LEGAL COMPILATION—GENERAL
property owners, as well as reminding
the administrative departments of
their responsibilities.
Mr. EDMONDSON. Mr. Speaker, I
thank the gentleman from Iowa for
his observations.
Mr. COHELAN. Mr. Speaker, it is
with pleasure and satisfaction that I
rise today to support S. 1, a bill that
will provide uniform and equitable
treatment for all persons displaced
from their homes, businesses, or farms
by a federally assisted project. For
many years I have been vitally inter-
ested in this type of legislation. Two
years ago, I introduced H.R. 386 in
the 90th Congress. At that time, I said
that several extensive studies includ-
ing the relocation report of the Ad-
visory Commission on Intergovernmen-
tal Relations and hearings before
House and Senate committees had
documented, beyond question, the in-
creasing size in inequities of Govern-
ment-caused displacement of persons
and businesses. The compensation as-
sistance is unequal, inadequate, and
causes extraordinary burdens for the
elderly, the poor, and our minority
citizens.
The situation existing at that time
is still with us today but its effect has
been magnified. It is estimated that
within the next 10 years over 1 million
households, 180,000 businesses, and
40,000 farms will be forced to relocate.
The burden of this displacement falls
most heavily on the elderly, the poor,
and the underprivileged groups, which
increasingly inhabit our central cities.
For them the absence of adequate
housing near jobs at prices they can
afford is particularly severe.
We must also note that not only
does the burden of relocating consti-
tute an extreme hardship to these peo-
ple but also that most of the relocation
takes place in the central city—the
very area that these people inhabit. In
effect, our Federal and federally as-
sisted urban and rural improvement
program commonly presents us with a
tragic paradox. We want to improve
the lives and surroundings of our peo-
ple and so we push ahead with urban
renewal, mass transit, and highways;
yet many of those who need to benefit
most from these programs actually
suffer the most. With this bill we can
do much better.
There, of course, have been reloca-
tion assistance programs in operation.
These have been conflicting programs,
however, and S. 1 gives us the oppor-
tunity to establish a uniform Federal
standard applicable to all Federal and
federally assisted projects. This past
year in the 91st Congress, I intro-
duced H.R. 14965. This bill, a uniform
relocation measure, was similar to
S. 1 but included provisions which
would have extended the benefits for
those persons displaced primarily
from older but substantial and ade-
quate homes. I am very pleased to
note that a number of the provisions
in H.R. 14965 have been adopted in
modified form in the House version of
S. 1, which is before us today.
One of the things we must recognize
is that under the traditional concepts
of eminent domain the value paid on
a piece of condemned property is equal
to its market value. Very often a
property that is sound and adequate
is often undervalued due to its loca-
tion in a semi-industrial zoned area—
for instance, in such cases a house
may have a legitimate market value
of $7,000 to $10,000. This, of course,
is far less than what would be needed
to purchase a home of comparable size
and convenience in another area of the
city. Under the bill being considered
today, section 203 provides additional
payments to cover such circumstances.
The authorized supplemental payment
will not exceed $15,000 under this
measure. While the $15,000 supple-
mental will not bridge the gap be-
tween the eminent domain market
value standard and the actual reason-
able cost which a displaced home-
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STATUTES AND LEGISLATIVE HISTORY
1097
owner must pay for a comparable
dwelling it goes far in that direction.
I must commend the Committee on
Public Works for passing out an ex-
ceptional and far-reaching piece of
important legislation. And I strongly
urge that this measure be accepted by
the House.
Mrs. MINK. Mr. Speaker, I rise in
support of S. 1, legislation to provide
for uniform and equitable treatment
of persons displaced from their homes,
businesses, or farms by Federal and
federally assisted programs and to
establish uniform and equitable land
acquisition policies for such programs.
My interest in this bill particularly
concerns several projects in Hawaii
where Federal land is being acquired
by the State under federally assisted
programs. These are the John Rodgers
and Manana veterans housing areas.
I am hopeful that this bill will help
persons affected by these transactions
receive fair and equitable payment
and/or relocation assistance.
When the John Rodgers property,
formerly owned by the Navy but being
acquired by the State for expansion of
Honolulu International Airport, is
conveyed, the displacing agency will
be the State Department of Trans-
portation. The second project involves
the sale of land to the Hawaii Hous-
ing Authority of 5.5 acres for housing
developments and conveyance of the
remaining 14.7 acres to the State for
low-rent public housing purposes.
This legislation provides a humani-
tarian program of relocation pay-
ments, advisory assistance, assurance
that comparable, decent, safe, and
sanitary replacement housing will be
available for displaced persons prior
to displacement, economic adjust-
ments, and other assistance to owners
and tenants displaced from their
homes, farms, and places of business.
The need for such legislation has long
been apparent as mushrooming Fed-
eral programs have ousted thousands
from their homes with no uniform
guarantee of proper compensation or
treatment.
In view of the importance of this
bill to Hawaii and our other States, I
strongly urge its adoption.
Mr. JOHNSON of California. Mr.
Speaker, some 9 years ago, the House
of Representatives established a Select
Committee on Real Property Acquisi-
tion, chaired by that distinguished
gentleman from Tennessee, the late
Judge Clifford Davis. I was privileged
to serve on that select committee.
Over a period of more than 3 years,
the committee traveled throughout the
Nation, from the heart of redevelop-
ment areas in Boston to the mountains
of California, holding hearings and
uncovering vast inequities in the ac-
quisition programs of the various Fed-
eral agencies.
We found not only a lack of uni-
formity among the agencies, but also
uncovered serious cases of discrimina-
tion and abuse of power by acquisition
officials representing the Federal Gov-
ernment. After the committee com-
pleted its work in 1965, I introduced
an omnibus bill incorporating the nu-
merous recommendations made by the
committee in its final report.
Since that first introduction, we
have worked on several proposals, re-
fining them, improving them, modify-
ing them until we have before us
today the Uniform Relocation Assist-
ance and Real Property Acquisition
Policies Act of 1970 which, in the
words of House Report 91-1656 is
"the culmination of lengthy and ex-
tensive efforts to develop legislation
establishing a uniform policy for the
fair and equitable treatment of per-
sons who are displaced or have their
real property taken for Federal and
federally assisted programs."
The hearings of the select commit-
tee and the reviews subsequently con-
ducted by the Committee on Public
Works, headed by its outstanding
chairman, the gentleman from Mary-
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1098
LEGAL COMPILATION—GENERAL
land (Mr. FALLON) have demonstrated
dramatically the urgency for action.
It is always difficult to force an indi-
vidual to move as we expand hospital,
sanitation, transportation, and other
public facilities, to serve a growing
population. But it is cruel to force
those who are suffering personal hard-
ships because of this displacement to
suffer economic hardship as well.
The few should not be made to pay
unfairly for the progress that will
benefit the many. This is not our
American way, but has happened, and
without an equitable policy for land
acquisition, this will continue to occur.
In brief, the legislation before us
today provides a humanitarian pro-
gram of relocation payments, advisory
assistance; assurance that compara-
ble, decent, safe, and sanitary replace-
ment housing will be available for dis-
placed persons prior to displacement;
economic adjustments, and other as-
sistance to owners and tenants dis-
placed from their homes, farms, and
places of business. It establishes a
uniform policy on real property ac-
quisition practice for all Federal and
federally assisted programs. And, per-
haps most important of all, it gets to
the heart of the dislocation problem
by providing the means for positive
action to increase the available hous-
ing supply for displaced low- and mod-
erate-income families and individuals.
In conclusion, Mr. Speaker, I would
call on my colleagues to give unani-
mous support to the proposal we have
before us today. I urge this not only
because it is the fair and proper
course of action by which we can pro-
tect the rights and interests of those
whose property is being acquired for
public purposes, but also, Mr. Speaker,
because action on this proposal would
bring to a successful conclusion a mas-
sive and important effort undertaken
in recent years by one of the finest
men I have served with in this distin-
[p. 40170]
guished House of Representatives, our
respected and beloved friend, Judge
Davis.
Mr. BROTZMAN. Mr. Speaker, in
the 90th Congress I first introduced
legislation to make the Government's
real property acquisition policies more
equitable. While S. 1 does not contain
all of the important features con-
tained in the legislation I have spon-
sored, I believe it materially improves
the existing law, and I hope the bill
wins speedy approval.
My interest in fairly compensating
individuals and businesses forced to
vacate their premises so that worth-
while public projects may be erected
dates back quite a few years. In the
private practice of law, as the U.S.
attorney for the district of Colorado,
and as a Congressman, I have had
occasion to witness the strengths and
weaknesses of our current eminent
domain laws.
In an effort to improve condemna-
tion proceedings and alleviate hard-
ship on the condemnees, I introduced
a three-bill legislative package in both
the 90th and 91st Congresses. One of
the bills would have provided for a
more equitable treatment of persons
affected by capital gains caused by the
sale of real property through eminent
domain proceedings to the Federal
Government or for federally assisted
projects. The second bill would have
amended the Small Business Act to
provide assistance for owners and em-
ployees of small business concerns dis-
placed or injured by Federal or fed-
erally assisted programs. The provi-
sions of these two bills are not now
before us, but I would hope that we
might have the opportunity to con-
sider them in the 92d Congress.
The third part of my legislative
package is largely incorporated in S.
1. The bill provides for moving ex-
penses for displaced persons. In the
case of persons displaced from busi-
nesses or farms, provision is made for
relocation assistance. For homeown-
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STATUTES AND LEGISLATIVE HISTORY
1099
ers, new relief is included so that con-
demnees will not be economically
worse off as a result of their being
forced to move. This program of re-
location assistance is urgently needed.
When a home or business is con-
demned, merely tendering the fair
market value is insufficient. Experi-
ence has shown that there are often
additional costs involved if the af-
fected person is to be successfully re-
located. If the project is in the public
interest, the public ought to be willing
to share these additional costs.
Title III of the bill establishes a uni-
form policy for real property acquisi-
tion. The emphasis is on equal treat-
ment for all landowners and the
avoidance of litigation. Great care is
taken to assure that the Federal Gov-
ernment act to assist displaced fami-
lies and businesses. While I would
have preferred language guarantee-
ing the accessibility of appraisals to
condemnees, I take comfort in the
bill's recognition of the pitfalls of the
appraisal process. Provision is made
for the property owner to accompany
the appraiser on his inspection and
responsibility is placed on the acquir-
ing agency to determine, in advance
of negotiations, an amount which it
regards as the fair market value of
the property, and to make an offer to
the property owner for the full
amount so determined. I am also
pleased by the recognition that an
across-the-board recovery of attorney
fees in condemnation proceedings
would be an invitation to litigation.
Attorney fees would be recoverable
only where the court determines that
a condemnation was unauthorized,
where the Government abandons a
condemnation, or where the property
owner wins compensation in an in-
verse condemnation proceeding.
Mr. Speaker, it is too late to assist
the citizens who have already had
their land taken, but it is not too late
to help the nearly 200,000 persons who
have their land condemned by the
Federal Government each year. In my
own district, it is probable that sev-
eral public works projects will be ini-
tiated in the near future, and I would
feel safe in predicting that each of
the 435 congressional districts will, to
some degree, be affected by the land
acquisition policies of the Federal
Government within the next few years.
In conclusion, Mr. Speaker, I want
to congratulate the distinguished mem-
bers of the Public Works Committee
for reporting the Uniform Relocation
Assistance and Real Property Acquisi-
tion Policies Act of 1970, and I urge
its adoption.
Mr. BENNETT. Mr. Speaker, I
appreciate this opportunity to speak
in favor of S. 1, the Uniform Reloca-
tion Assistance and Land Acquisition
Policies Act. I have legislation which
is identical to S. 1, but I do not claim
authorship or expertise in developing
this bill, which has already passed the
Senate. I believe it is a good bill, and
I hope the House will promptly pass it.
I have introduced this legislation
and testified before the Public Works
Committee in part because of a situa-
tion which occurred in my hometown
of Jacksonville, Fla., last year.
The Public Works Committee in
1966 approved the prospectus for con-
struction of a much needed new postal
facility in Jacksonville. In January
1969 the site for the building was se-
lected by the Post Office Department.
The 19.4-acre site included several
businesses and about 200 families,
mostly below the stated poverty level
with less than $3,000 annual income.
The displacement of these families
was of great concern to me and to
Jacksonville city officials. I contacted
the Post Office Department to see what
relief might be given to these families
when their homes would be destroyed
and they would be forced to leave their
property. The Post Office Department
wrote in March 1969:
We appreciate your concern for these fami-
lies (in Jacksonville, Florida) and would like
to assure you that the Department is keenly
-------
1100
LEGAL COMPILATION—GENERAL
aware of the problem. Our inability to provide
for relocation assistance is due to the lack of
statutory authority to pay for relocation costs.
As a result, on April 23, 1969, I in-
troduced H.R. 10525, a bill to provide
for relocation payments to individuals,
families, and business concerns dis-
placed by the construction of a postal
facility in Jacksonville, Fla. This bill
was referred to the Committee on the
Judiciary.
It was my feeling at the time, and
it is today, that when any agency of
the Federal Government displaces an
individual then the Government has an
obligation to aid that individual and
provide whatever relocation assistance
is necessary under the circumstances.
In reporting on my earlier bill, H.R.
10525, the Bureau of the Budget re-
ferred to the House Public Works
Committee's Select Subcommittee on
Real Property Acquisition Report of
1965. The report found that Federal
and federally assisted programs for
relocation "have fallen short of fair-
ness in the treatment of those dis-
placed by Government programs."
The Bureau of the Budget said it be-
lieved that comprehensive relocation
legislation was needed that would "as-
sure adequate and uniform relocation
assistance to all who are displaced
when land is acquired for use in all
Federal or federally assisted pro-
grams." The legislation, which passed
the Senate last year, S. 1, was recom-
mended as a broader based bill to
cover the problem which we faced in
constructing the new Jacksonville
postal facility. The General Services
Administration also recommended the
more uniform legislation contained in
S. 1. On January 21, 1970, I intro-
duced H.R. 15479 which is identical
to S. 1.
This bill will not directly affect my
constituents who were forced to move
because of the proposed construction
of a new post office building in Jack-
sonville because the bill will not retro-
actively include Federal construction
projects. I do feel, however, even
though I no longer have a parochial
interest, the concept of the bill is
good and merits passage.
Mr. ANNUNZIO. Mr. Speaker, I
rise in support of the Equitable Land
Acquisition Policies Act.
This legislation is sorely needed to
deal with a problem of increasing
complexity and magnitude. I wish to
commend the distinguished chairman
and members of the Public Works
Committee for developing an outstand-
ing measure to introduce equity and
uniformity in the treatment of hun-
dreds of thousands of citizens who are
dislocated under numerous Federal
and federally assisted programs.
As all of us recognize, rapid popu-
lation growth and technological change
make imperative the Federal pro-
grams to assist in building and re-
building our cities, highways, and air-
ports. These programs have been en-
acted and must go forward for the
benefit of our entire society. But they
should not impose an undue burden
upon those individuals and businesses
whose properties have to be acquired
to make way for the necessary im-
provements to benefit the rest of us.
Construction of public improve-
ments frequently takes place in the
older sections of our urban areas.
Residents and businesses located in
such areas are the ones who can least
afford to absorb a financial setback
occasioned by the need to relocate.
They are the poor and the elderly and
the small businesses. Many find it
difficult or impossible to move from
older low-rent areas to newer build-
ings whose costs and rents reflect the
inflation that has taken place over the
past several years.
For many businesses, the financial
burden of relocation can be so great
that they have to close up shop. Em-
ployees as well as employers suffer.
We can ill afford such shutdowns.
When businesses are forced to seek
distant relocations, in order to obtain
reasonably priced land, some em-
[p. 40171]
-------
STATUTES AND LEGISLATIVE HISTORY
1101
ployees cannot move with the business.
Older employees may simply retire.
Again, both employees and business
owners suffer.
All of you are no doubt aware of
examples of dislocation, with resulting
suffering and financial loss. There is
one in the city of Chicago with which
I am most familiar. Hundreds of peo-
ple who live in my own congressional
district and surrounding areas are em-
ployed by Edward Don E. Co. This
company has been in business for 50
years. It is now being forced to relo-
cate because part of the new Inter-
state Highway System is being built
through the center of our city.
This case can be multiplied a thou-
sandfold. The number of people who
will suffer from the effects of Govern-
ment-sponsored dislocation in their
economic and personal activities can
literally be counted in the tens of thou-
sands. Unless the Government can
provide equal and equitable relief to
all who are thus affected, the disillu-
sionment that is abroad in our land
will become more and more wide-
spread.
At this time, the unequal treatment
of dislocation households, businesses,
and farms under different federally
supported programs is, in itself, a
cause for deep dissatisfaction. The in-
adequacy of relocation payments under
some of the programs is grounds for
justifiable resentment by those who
are injured.
The provisions of S. 1 would serve
to ameliorate the situation. The au-
thorized relocation payments under the
different programs would be uniform.
There would also be some compensa-
tion above the modest moving and dis-
location allowances for the small busi-
nessman who is dislocated, with spe-
cial consideration for the elderly
displaced businessman who may not
be able to start over again in a new
location. There is also special consid-
eration for the small farm operator
who is dislocated. A payment above
the acquisition price would be allowed
for homeowners, to offset the effects
of inflation and enable them to acquire
an adequate home in a suitable loca-
tion.
Federal agencies which acquire
property will also have to provide
positive relocation assistance to those
who are displaced.
Renters who are displaced from
residences will also be eligible to re-
ceive assistance payments toward pay-
ments of rent in a decent, safe, and
sanitary dwelling over the succeeding
2 years.
These and other provisions for fi-
nancial assistance cannot compensate
for the dislocation of lives for persons
who must leave neighborhoods in
which they had established many per-
sonal ties. By providing financial as-
sistance, however, we can allay the
economic hardships that are caused by
dislocation, we can encourage the con-
tinuation of business and employment
at new sites and we can minimize the
suffering and despair of those who
are displaced.
Enactment and implementation of
S. 1 will help us greatly in coping with
the relocation problem that has been
created by Government programs. I
strongly urge that all the Members of
this body vote to pass this bill.
Mr. KOCH. Mr. Speaker, I would
like to note at this time my support
for S. 1, the Uniform Relocation As-
sistance and Real Property Acquisi-
tion Policies Act of 1970 which we are
now considering.
For too long citizens have been sub-
ject to differing and often deficient
relocation policies. The economic dis-
location and hardship for a man los-
ing his home or business is the same
whether the federally sponsored proj-
ect forcing his move falls under the
jurisdiction of one agency or another.
But to date, the assistance he has been
eligible for has varied from none at
all to several thousand dollars depend-
ing on the sponsoring agency. S. 1
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1102
LEGAL COMPILATION—GENERAL
would provide for the uniform and
equitable treatment of all persons dis-
placed from their homes, businesses
or farms by Federal and federally
assisted programs and provide uni-
form acquisition policies for all these
projects.
This legislation is of interest to me
in part because shortly after I was
elected to Congress in 1968, the first
request I had was from a group of
citizens who were being displaced
from their homes in New York City
to make way for a new post office, but
were to receive no relocation benefits
at all. They further told me that they
could not understand why this was
since their friends in another part of
town who had been similarly displaced
to make way for another post office
had been given both relocation serv-
ices and financial assistance. My first
reaction to this was that certainly
some bureaucratic error had been
made. I soon learned, however, that
the facts my constituents had were
correct—that they were not eligible
for assistance because the Post Office
Department was undertaking the con-
struction directly while the other post
office had been constructed by private
enterprise on a leaseback arrange-
ment. The private corporation was
subject to the city's relocation re-
quirements; the Federal Government
was not. I must say that I felt a little
foolish trying to explain that while it
was true that a post office was being
built in both instances, the Govern-
ment in this case could not give relo-
cation benefits, while the private com-
pany did.
Today's legislation, which I had a
hand in drafting, rectifies this situa-
tion. It fills the gaps where assistance
is not available while providing a sin-
gle uniform policy for all of the Gov-
ernment's agencies.
During the past 2 years I have
worked with the committee on this bill
making certain that it would provide
equitable benefits to these constituents.
A great deal of consideration and time
has been given by the committee to
this bill to assure the enactment and
implementation of a comprehensive
and equitable program. I hope it will
receive the support of this body.
The SPEAKER. The question is on
the motion of the gentleman from
Oklahoma (Mr. EDMONDSON), that the
House suspend the rules and pass the
bill S. 1, as amended.
The question was taken; and (two-
thirds having voted in favor thereof)
the rules were suspended and the bill,
as amended, was passed.
A motion to reconsider was laid on
the table.
*****
[p. 40172]
1.10a(3)(c) Vol. 116 (1970), Dec. 17: Senate agrees to House
amendment with an amendment, pp. 42137-42140
Mr. MUSKIE. Mr. President, I
think it is appropriate in the closing
days of the Congress to finally take
up action on the first bill introduced
in this Congress, S. 1. It is legislation
dealing with the establishment of a
uniform policy for the fair and equita-
ble treatment of people who are dis-
placed by Federal and federally sup-
ported programs.
The Senate has enacted this legisla-
tion twice, once last Congress and
once early in this Congress. The House
has now acted on it with some amend-
ments in disagreement which we have
discussed with the House. The House
is unwilling to go to conference. So
we have undertaken to work out
amendments to which the House will
agree so that we can avoid the con-
ference.
That is the substance of the amend-
-------
STATUTES AND LEGISLATIVE HISTORY
1103
ments which I have offered on the
floor this afternoon.
The principal amendment has to do
with the question of judicial review.
The Senate bill, as enacted, provided
for judicial review. The House struck
out that provision.
We are now offering an amendment
that will leave the question of review
in the existing law.
The distinguished Senator from
North Carolina (Mr. ERVIN) and the
distinguished Senator from Massachu-
setts (Mr. KENNEDY) have both been
concerned with this issue. The amend-
ment I am offering has met with their
agreement and approval.
I think we are ready to move at this
point this afternoon.
Mr. ERVIN. Mr. President, will the
Senator yield without losing his right
to the floor?
Mr. MUSKIE. Mr. President, I yield
to the Senator from North Carolina.
Mr. ERVIN. Mr. President, the dis-
tinguished Senator from Maine has
worked very hard on this bill for sev-
eral years. As he stated, it has passed
the House twice.
The Senator from Maine stated very
eloquently when the bill was intro-
duced during the present Congress
that the uprooting of an individual,
his family, his business or farm, and
the taking of his land is a very per-
sonal matter. We cannot make the
process painless, but we can assure
fair and evenhanded—
Mr. BYRD of West Virginia. Mr.
President, may we have order in the
Chamber? There are too many collo-
quies taking place. Senators in the
rear cannot hear what the Senator
from North Carolina is saying. Will
the Chair ask Senators to take their
seats?
The PRESIDING OFFICER. The
Chair requests Senators to take their
seats.
Mr. ERVIN. Mr. President, I am
quoting the statement made by the
distinguished Senator from Maine
when he introduced the bill early in
this Congress.
He said:
The uprooting of an individual, his family,
his business, or farm, and the taking of his
land is a very personal matter. We cannot
make the process painless, but we can assure
fair and even-handed administration of that
process, consistent with the protection of in-
dividual rights and community needs, no matter
what agency is involved.
Pursuant to the thought thus ex-
pressed by the distinguished Senator
from Maine on the predecessor of this
bill and on the present bill containing
the provision, title 4, secured to every
person adversely affected and every
public agency of a State adversely af-
fected by one of these Federal proj-
ects which necessitates the relocation
of an individual's home or business,
the right to have a judicial review of
any rights that might be placed in
jeopardy by such action.
The members of the Senate'commit-
tee which handled this bill have been
strongly in favor of expressly secur-
ing the right of judicial review to
those who are adversely affected by
such Federal action having to do with
relocation.
I concur in the present position of
the Senator from Maine. I believe it
is rather essential to have judicial
protection of the rights of persons,
State agencies, and State subdivisions
[p. 42137]
which are dislocated by Federal proj-
ects. However, this bill has some very
fine provisions to insure their being
dealt with justly.
I feel that these provisions have
been too long delayed by the failure
of the House to follow the action of
the Senate in this area.
For this reason I concur, with reluc-
tance, in the motion made by the Sen-
ator from Maine.
I point out that it will take some
time to implement the provisions of
this bill. I believe that there would be
ample opportunity for those of us who
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1104
LEGAL COMPILATION—GENERAL
are interested in this problem to intro-
duce in the next session of the Con-
gress with at least a reasonable hope
of being able to have the House follow
our lead on the matter, provisions
which will secure the right of judicial
review in this connection.
For this reason, I am sure that the
Senator from Maine feels as I do
about this matter and that he and the
Senator from Massachusetts will join
me in an amendment to try to supply
this omission in the legislation.
Mr. MUSKIE. The Senator is cor-
rect. I have asked the staff to prepare
the legislation for introduction early
in the new Congress. I will promise
to hold early hearings so that we can
get at this question at an early stage
in the next Congress.
I think there is sufficient support on
this side so that there will be no diffi-
culty in processing the legislation very
quickly.
Mr. ERVIN. Mr. President, with
that assurance, I join with the Sen-
ator in asking that the Senate take
the action he has suggested.
Mr. PERCY. Mr. President, will the
Senator yield?
Mr. MUSKIE. Mr. President, I
yield to the Senator from Illinois.
Mr. PERCY. Mr. President, the
Senator from Illinois worked with the
distinguished Senator from Maine on
this subject. It is certainly legislation
that is desired by mayors and Gov-
ernors throughout the country.
The Senate's will has been frus-
trated on a number of occasions in the
past because the matter has not passed
the House.
There are some significant differ-
ences between the House-passed ver-
sion and the Senate-passed version.
I ask unanimous consent that a
memorandum prepared analyzing the
differences between the House and
Senate versions be printed in the
RECORD.
There being no objection, the memo-
randum was ordered to be printed in
the RECORD, as follows:
S. 1, THE UNIFORM RELOCATION ASSISTANCE
AND LAND ACQUISITION POLICIES ACT
The House passed their version of S. 1,
Monday, December 7. The essential differences
between House-Senate versions of the blil are:
MAJOR CHANGES
1. Judicial Review—House version strikes
Title IV provisions of S. 1. All determinations
made by heads of federal agencies regarding
relocation/acquisition, are final. Nothing in
the bill is to be construed as creating any
element of value or damage under condem-
nation proceedings.
2. Rules and Regulations for implementa-
tion—The Senate version placed responsibility
for preparation and execution with the Presi-
dent. The House version authorizes head of
each agency involved with relocation/acquisi-
tion to establish regulations and procedures.
These, in turn, to be uniform to the maxi-
mum extent possible through consultation
with heads of other agencies.
The House version requires preparation of
an annual report beginning January 15, 1972,
and for each year until January 15, 1975,
which will detail for the President, and also
for the Congress, the effectiveness of the bill,
actions taken to achieve Congressional ob-
jectives, views on progress made toward such
objectives, effects on the public, and recom-
mended changes, improvements, etc. These
reports would be the nucleus for additional
Congressional action should implementation
of the law prove difficult in terms of achieving
uniformity and equity.
Comment: (i) The judicial review feature
included in the Senate version was knocked
out because neither Justice nor BOB felt it
served any immediately useful purpose. (Ex-
cessive litigation and crowded dockets being
the reasons.) The House provisions require
considerable discretion on the part of the
administrator, inasmuch as judicial review
could effectively hamstring implementation of
any project while the parties sought resolu-
tion through the courts, its omission undoubt-
edly will free the hand of the administrator
in his approach to individual eases. (House
staff have indicated that if the Senate insists
on it being included, the hill will be lost.)
(ii). The Rules and Regulations procedures
imply substantial good will on the part of
the administrators. Where the Senate bill
attempts to fix responsibility in the Presi-
dential office, it is left to agency heads to
iron out their differences. The Senate version
was conceived without consideration of the
coordinative role of the newly created Office
of Management and Budgeting, which promul-
gate the necessary procedures under which
-------
STATUTES AND LEGISLATIVE HISTORY
1105
agency heads consult and work toward common
solutions. The annual report should provide
sufficient opportunity for Congressional review
and reactions.
OTHER CHANGES
The House bill increases basic moving and
dislocation allowances from $200 and $100 to
$300 and $200 respectively. In lieu of fixed
allowances, the bill provides for payment of
"actual" reasonable costs, etc.," not less than
$2,500 nor more than $10,000 (up from $5,000
in S. 1). This is based on average annual
net earnings. (The House allows computation
over either the two previous years, or such
other 2-year period as would be determined
more equitable, i.e. in cases where the previous
two year period was affected by bad business
conditions, etc.)
The House bill provides for expanded re-
placement housing costs through supplemental
payment of up to $15,000—to bridge the gap
between acquisition payment and actual rea-
sonable cost to reenter the housing market.
Replacement housing must be available before
displacement. House bill also provides cover-
age of such items as interest rate differential
on mortgages, unpaid debt at time of acqui-
sition, etc., through the $15,000 supplemental
payment,
The House bill provides for tenant dis-
placement through a replacement allowance
of up to $4,000 necessary to enable lease or
rent for a period not to exceed 4 years. Ten-
ant can enter housing market by use of up to
$4.000 (matched by his own sum) for making
a downpayment.
The House bill provides for expanded re-
location assistance services, including deter-
mination of needs for assistance, information,
assurance in advance of availability, loan pro-
grams information, etc.
The House bill provides for housing re-
placement by the displacing Federal agency
as a last resort, including direct construction
of new housing, acquisition and rehabilita-
tion of existing housing, relocation of exist-
ing housing, and jointly financed projects
which could aggregate rental housing require-
ments into feasible units. Examples include
HUD, Agriculture work out programs for con-
struction for low or moderate income families/
individuals.
The House version provides for full Federal
funding of the first $25,000 (same as in S. 1
except for Hawaii and Alaska), for any ac-
quisition or displacement prior to July 1, 1972.
In the case of federally-assisted projects, State
can establish a trust fund, using an advance
from the Feds (the costs being 100% Feder-
ally reimbursable up to $25,000). This would
permit States to overcome any legal incapaci-
ties with respect to the expending of State
funds until such period of full Federal funding
expires.
The effective date of the bill is enactment,
except where a State is unable to comply
fully, in which case it becomes effective as
soon as the State can comply, and in every
case, after July 1, 1972.
The special case of the Murray Hill Post
Office Station is taken care of by the bill, and
the mandates for a uniform land acquisition
policy are included with minor exceptions and
changes. The expenses provided for by S. 1
are retained in the House bill, i.e. recording
fees, transfer taxes, etc., but, in addition, the
House bill will reimburse the owner for litiga-
tion expenses within reason.
Mr. PERCY. Mr. President, there
are some points of concern that the
administration has with respect to
this bill. I ask unanimous consent
that these differences of opinion that
the administration has had with re-
spect to this bill be printed in the
RECORD at this point.
There being no objection, the memo-
randum was ordered to be printed in
the RECORD, as follows:
POINTS OF SIGNIFICANT CONCERN WITH HOUSE-
PASSED S. 1, THE PROPOSED RELOCATION AND
LAND ACQUISITION POLICIES ACT
I. The following are items in the House bill
of particular concern.
a. Implementing regulations. The House bill
provides in section 213 for the establishment
of regulations and procedures by the heads
of the various displacing1 agencies. It thus
does not provide, as does the Senate bill, for
the assured uniformity that would be provided
through Presidential regulations. It also omits
provisions requiring centralized determinations
with respect to housing availability and stand-
ards so as to assure uniformity in handling
these matters among different agencies and
programs.
b. Availability of replacement dwellings.
The House bill in section 205(c)(3) weakens
the requirement of availability of replacement
housing by requiring assurance that suitable
replacement dwellings will be available prior
to displacement only "to the extent that can
reasonably be accomplished." The Committee
report states that this limiting phrase is used
only "to provide for emergency or other
extraordinary situations where immediate pos-
session of real property is of crucial impor-
tance." Nevertheless, this phrase is still sub-
ject to interpretation by the heads of various
displacing agencies. The Senate version is
preferable in that it establishes an absolute
-------
1106
LEGAL COMPILATION—GENERAL
requirement that replacement housing be avail-
able, subject only to Presidential waiver.
c. Replacement housing for homeowners.
Although the concept of providing additive
payments to assist owner-occupants in ob-
taining decent, safe and sanitary replacement
dwellings is essential, the $15,000 maximum
payment proposed in section 203 of the House
[p. 42138]
bill is exorbitant and would create pressure
for unnecessarily high costs for public im-
provements. The limit of $5,000 established in
the Senate version is adequate, based upon
operating experience, to meet the legitimate
cost of assuring suitable replacement housing.
d. Compensation for increased interest costs.
Section 203(a)(l)(B) would provide a pay-
ment to homeowners whose property is mort-
gaged to compensate them for the increased
cost, if any, of obtaining a new mortgage ut
higher interest rates. This provision would
present serious administrative difficulties and
could result in substantial windfall payments
to homeowners where the new mortgage is
not held for the full period for which the
homeowner has been compensated. It would
also remove the incentive to seek the lowest
interest rate mortgage available, and hence
would contribute to inflationary pressure.
e. Mortgage insurance for displacees. This
provision in section 203 (b) of the House bill
would allow Federal agencies administering
mortgage insurance programs to insure mort-
gages of displacees eligible for assistance under
this section •without regard to their age, physi-
cal condition or other characteristics. This
provision would create a new insurance pro-
gram characterized by limited applicability
and high risks. No new insurance fund has
been provided to cover this new class of high
risk policies. In view of the numerous techni-
cal problems which such a program would
entail, any decision concerning it should be
deferred to consideration in connection with
new housing legislation.
f. Effective date. Section 221 of the House
bill provides that the bill is effective im-
mediately. The Senate bill is preferable in
that it provides necessary time for the assign-
ment of responsibility and for the drafting
of regulations for direct Federal programs.
Time will also be required in order to make
adjustments between existing relocation sys-
tems and the new system authorized by the
legislation.
g. Interest free loans for housing studies.
Section 215 would authorize the administering
Federal agency to make or approve loans to
a variety of organizations for the purpose of
meeting preliminary expenses of providing
replacement housing. Fragmented management
and inefficient organization would result from
having every agency separately undertaking
this type of activity.
h. Transfer of surplus property. Section 218
would authorize the Administrator of General
Services to transfer surplus property without
monetary consideration to State agencies for
the purpose of providing replacement housing.
While the Congress has authorized special
write-downs for land to be used for low cost
housing, the 100 percent donation authorized
here is excessive and unnecessary because the
bill provides adequate reimbursement of ex-
penses.
i. Displacement by a specific program. Sec-
tion 219 contains a special provision for the
relief of individuals who have been (or may
be) displaced from certain property acquired
and held by the Post Office Department in the
City of New York. This is special legislation
and has no place in general legislation, the
major purpose of which is uniformity. This
provision should be deleted from the bill, and
the subject should be considered separately.
j. Mortgage penalty costs. Both the House
and Senate versions of S. 1 provide that the
head of the acquiring Federal agency shall
reimburse the owner for penalty costs for pre-
payment of preexisting mortgages. The House
bill, however, fails to provide that such reim-
bursement may be made only if such mort-
gage is on record on the date of the official
announcement of the project. Experience has
shown this safeguard which is in the Senate
bill is workable and necessary.
k. Instituting formal condemnation pro-
ceedings. Section 301 (8) of the House bill
provides that if any interest in real property
is to be acquired by the exercise of the power
of eminent domain, the head of the Federal
agency shall institute formal condemnation
proceedings. The heads of Federal agencies
do not institute such proceedings, except in
the case of the Tennessee Valley Authority,
where they request the Attorney General to
institute such proceedings. This subject is
better dealt with in Section 301 (a) (10) of
the Senate bill.
1. Litigation expense*. Section 304(c) would
provide that in any action brought against
the United States for the recovery of just
compensation for the taking of any interest
in real property where it is determined that
such taking occurred without a tender of com-
pensation to the plaintiff or that the juat
compensation exceeds the amount tendered
before the institution of the action, the United
States shall be liable for all the expenses of
court costs, including attorneys' fees, appraisal
and engineering fees actually incurred. This
provision is highly objectionable as it would
result in all cases of this type going to court.
The usual situation of this type takes place
when a Government action inadvertently floods
or in some other way takes property which
-------
STATUTES AND LEGISLATIVE HISTORY
1107
^ras not expected to be taken in the project.
At the time the Government becomes aware
of the fact that it has taken the property, the
agency usually makes an offer or seeks funds
so that it can buy. If court costs would be
reimbursed in every such case, the owner
would always sue for a higher amount and
no cases would be settled out of court.
II. In addition to the above, there are a
number of other items which are major
differences of a kind which should warrant
a conference.
a. Judicial review and finality of deter-
minations. The Senate version of S. 1 would
apply the administrative procedure and judicial
review provisions of the APA to all deter-
minations under this bill. The House bill omits
this and, in addition contains in section 102,
a finality of determination provision which
would preclude judicial review of any deter-
minations under titles II and III, including a
preclusion against raising any violation of
the proposed Act as a defense in any court.
b. Definition of displaced person. The House
bill would limit the status of displaced person
to those who move as the result of the ac-
quisition of, or written notice to vacate, real
property. The Senate version would provide a
broader definition which includes those who
move as the result of acquisition or reasonable
expectation of acquisition.
c. Construction of replacement housing. The
House version of S. 1 would provide for con-
struction of replacement housing by any dis-
placing Federal agency, if suitable replacement
housing cannot otherwise be made available.
The Senate bill does not contain a similar
authorization.
Mr. PERCY. As I understand it,
it would have been far more desirable
for us to have perfected this legisla-
tion by having a conference. However,
the time involved is simply inadequate
and the House refused a conference
on this particular legislation. The de-
sire of the mayors, Governors, and
many branches of the Federal Gov-
ernment is so great that I think the
legislation should be enacted at this
time, and the two points the House
agreed to accept, I think, are good
modifications.
I recommend that we now pass this
legislation. We must take into account
that in the final analysis the decision
ultimately has to be made by the
White House when legislation comes
before the President for signature.
There is a possibility the President
might veto the legislation, but be-
cause of the lateness of the hour I
believe this is the best we could do
and I recommend that the legislation
pass with these amendments.
Mr. MUSKIE. I thank the Senator
from Illinois, who has been concerned
with this matter from the beginning.
There are differences between the view
of the Senate and the view of the
House, involving modest increases in
moving and dislocation expenses, but
I think these increases reflect in-
creases in the cost of living that have
taken place since the bill was first
taken up. I hope the administration
will undertake to accept the bill. It
has taken us two Congresses to move
the legislation to this point. This is
important legislation and we should
accept it as such and move on from
this base which has been so long in
establishment.
Mr. COOPER. Mr. President, as a
member of the Public Works Commit-
tee, I have studied and interested
myself over a long period of time with
the problems relating to the diverse
land acquisition policies of the Federal
Government and the need for uni-
formity.
During this period I was constantly
made aware of the efforts of the senior
Senator of Alabama to remedy this
situation.
Senator SPARKMAN'S interest in this
matter arose particularly out of his
concern for the problems of small
businesses and individuals displaced
by urban renewal and other Federal
and federally assisted projects. These
problems had come to his attention
as chairman of the Senate Select Com-
mittee on Small Business and through
his work on the Small Business and
Housing Subcommittees of the Bank-
ing and Currency Committee.
I believe it would be appropriate to
recall the constructive approach of
Senator SPARKMAN in his early pro-
posals and his recognition of the prob-
lems with which S. 1 deals. To that
-------
1108
LEGAL COMPILATION—GENERAL
end, I ask unanimous consent that
the statements he made on January
30, 1961, when he introduced S. 671
be included in the RECORD at this
point.
There being no objection, the state-
ment was ordered to be printed in the
RECORD, as follows:
COMMISSION To STUDY COMPENSATION FOR LAND
CONDEMNED UNDER FEDERAL PROGRAMS
Mr. SPARKMAN. Mr. President, in recent
years the Federal Government has instituted
programs under which millions of acres of
land have been acquired from private owners.
While much of the land has been acquired
by purchase, a great deal has been acquired
through condemnation proceedings; and in the
cases in which voluntary sales were effected,
the threat of condemnation proceedings was in
the background.
These Federal programs include some in
which Federal agencies use the land directly—
for example, in the military programs; in
other cases, the land is owned by State or local
agencies—for example, in most road programs;
and, in other cases, the land may be resold for
private use—for example, in the urban renewal
program. But regardless of these differences
in the purpose of the taking or the use to
which the land is put, the individual or busi-
ness dispossessed or otherwise affected by
the acquisition suffers the same loss.
[p. 43139]
Probably the biggest acquisition program
has been that of the military. I am advised
that in 1940, the War and Navy Departments
used about 2% million acres of land. By the
close of the war, these two Departments had
the use of 52 million acres—about equal in size
to Kansas or Utah.
By June 30, 1955, the land used for military
purposes by the Army, the Navy, the Air
Force, and the AEC, amounted to more than
23 million acres—about the size of Indiana,
Virginia, Kentucky, or Tennessee. Other Fed-
eral programs have acquired or are acquiring
substantial amounts of land.
In the urban renewal program under title
I of the Housing Act of 1949, the first 400
projects have called for the clearance of about
15,000 acres, not including streets and alleys.
Unlike much of the land used for military
programs, these 15,000 net acres are located
in urban areas, and consist mostly of developed
land. The Federal highway programs also call
for the acquisition of large areas; including
both expensive developed land in cities, and
farmland and wasteland outside cities. For the
Interstate Highway System, $621 million—of
which the Federal share will be $418 million—
is authorized for the acquisition of rights-of-
way during the fiscal year 1959. Under the
regular Federal highway programs, $126 mil-
lion—of which the Federal share will be $65
million—is authorized for acquisition of rights-
of-way during the fiscal year 1959. Other
Federal programs, such as the public works
programs, involve the acquisition of large
areas.
The acquisition of land in this volume is
very different from the Federal acquisition
of land during the 19th century, or even
during the 20th century, up to World War II.
The problems created when, under Federal
programs, thousands of acres of land are ac-
quired in rural areas, or scores of acres are
acquired in developed urban areas, are dif-
ferent, both in kind and in degree, from the
problems created in earlier days, when Federal
acquisitions of land amounted merely to taking
enough land for the construction of a post
office, an arsenal, or even an army post. And
the problem becomes particularly acute when
an urban-renewal project cleans out an entire
section of town —the houses, stores, office
buildings, movie theaters, banks, churches, and
all other structures.
The banking and Currency Committee has
heard testimony which has set forth in dra-
matic detail the problems facing businesses,
both large and small, which have been wiped
out by urban-renewal projects or by Federal
highway projects. Three bills on this subject
have been introduced: S. 1340, by Senator
HUMPHREY; S. 1351, by Senator BEALL; and
S. 1777, by Senator CLARK and Senator JAVITS,
which would provide for loans to small busi-
ness concerns affected by the highway and
urban-renewal programs.
The problem, of course, is not limited to
small businesses or to these two Federal pro-
grams. The problem affects all sizes of busi-
ness, and it affects all Federal programs un-
der which land is acquired—particularly, of
course, when the land acquisitions are very
extensive. It was, I think, for this reason that
the Banking and Currency Committee did
not take action on any of these three bills
in connection with either the small business
legislation or the housing legislation.
It seems to me the question is a matter
of much broader concern, and one which
basically goes back to the requirement of
the fifth amendment to the Constitution that
private property shall not be taken for public
use without just compensation.
Over many years, this constitutional re-
quirement has been spelled out in judicial
decisions and in statutes within the frame-
work of the constitutional requirement. For
the most part, this occurred before acquisi-
tions of land by the Federal Government
were substantial or had drastic effects upon
wide areas. As I have said, there is a differ-
-------
STATUTES AND LEGISLATIVE HISTORY
1109
ence in kind, as well as a difference in degree,
between acquiring enough land for a Federal
office building, or even acquiring the Federal
Triangle, and acquiring a square mile of city
land for an urban-renewal project or acquiring
a whole valley for the purpose of flooding it in
connection with the construction of a dam.
It is because of this change in the nature
and the effect of land acquisitions under Fed-
eral programs, either by condemnation or
under threat of condemnation, that I think it
desirable to make a thorough and impartial
study of condemnation under Federal pro-
grams. This study should be under the high-
way program, under public works programs,
under urban-renewal programs, under military
programs, and any other Federal programs.
It should also be broad enough to cover all
the effects of land acquisition, including its
effects on owners, on tenants, and on nearby
property and businesses. The study should be
made in the broad spirit of the just-com-
pensation provision of the fifth amendment.
It should not be limited to a determination
of the legal bounds of that provision or of any
particular statute. Instead, it should cover the
broader subject of the extent to which the
cost of Federal programs is paid by individ-
uals or firms whose property is taken or
whose property or business is either destroyed
or is reduced in value by the taking of neigh-
boring property, and the extent to which it
would be feasible and proper to compensate
these individuals and firms for the losses they
suffer by reason of the Federal program.
Accordingly, I introduce a bill which would
establish a bipartisan Federal Commission on
Property Condemnation Compensation, to con-
sist of 15 members, 7 to be appointed by the
President, 4 to be appointed by the Vice Presi-
dent, and 4 to be appointed by the Speaker.
The Commission would make a thorough
study of compensation in connection with the
condemnation of land, and would file a report
with the Congress by December 31, 1961.
In introducing this bill, I do not, of course
wish to take the position that any particular
judicial awards have been either too high or
too low; nor do I wish to take the position
that any condemnation statute now on the
books needs to be amended. But the testi-
mony, which has been presented to the Bank-
ing and Currency Committee, on the effects
on individuals and businesses of the wide-
spread land acquisitions under Federal pro-
grams convinces me that this matter should
be thoroughly reviewed.
The VICE PRESIDENT. The bill will be re-
ceived and appropriately referred.
The bill (S. 2802) to provide for a com-
prehensive study of the disposition of claims
for just compensation for persons affected by
the acquisition of property by the United
States or under Federal programs through
condemnation proceedings or otherwise, in-
troduced by Mr SPARKMAN, was received,
read twice by its title, and referred to the
Committee on the Judiciary.
The PRESIDING OFFICER. The
question is on agreeing to the motion.
The motion was agreed to.
[p. 42140]
1.10a(3)(d) Vol. 116 (1970), Dec. 18: House concurs in Senate
amendment, pp. 42506-42507
UNIFORM RELOCATION ASSIST-
ANCE AND LAND ACQUISITION
POLICIES ACT OF 1969
Mr. EDMONDSON. Mr. Speaker, I
ask unanimous consent to take from
the Speaker's desk the bill (S. 1) to
provide for uniform and equitable
treatment of persons displaced from
their homes, businesses, or farms by
Federal and federally assisted pro-
grams and to establish uniform and
equitable land acquisition policies for
Federal and federally assisted pro-
grams., with Senate amendments to
the House amendment thereto, and
concur in the Senate amendments to
the House amendment.
The Clerk read the title of the bill.
The Clerk read the Senate amend-
ments to the House amendment as
follows:
Page 4, of the House engrossed amendment,
strike out lines 10 to 17, inclusive, and insert:
"EFFECT UPON PBOPERTY ACQUISITION"
Page 4, line 18, of the House engrossed
amendment, strike out "(b)" and insert
"SEC. 102. (a)".
Page 4, line 21, of the House engrossed
amendment. Strike out "(c)" and insert
"(b)".
-------
1110
LEGAL COMPILATION—GENERAL
On Page 4, line 24, of the House engrossed
amendment, strike out "on" and insert "im-
mediately prior to".
Page 12, lines 1 and 2, of the House en-
grossed amendment, strike out ", to the extent
that can reasonably be accomplished,".
Page 12, line 10, of the House engrossed
amendment, after "employment" insert ",
except that the head of that Federal agency
may prescribe by regulation situations when
such assurances may be waived".
The SPEAKER. Is there objection
to the request of the gentleman from
Oklahoma?
Mr. DON H. CLAUSEN. Mr.
Speaker, reserving the right to ob-
ject, would the gentleman explain the
Senate amendments so that we can
have a full understanding of what is
taking place?
Mr. EDMONDSON. Mr. Speaker,
will the gentleman yield?
Mr. DON H. CLAUSEN. I am
happy to yield to the gentleman from
Oklahoma.
Mr. EDMONDSON. The substance
of the amendments added to the House
bill by the Senate can be stated in
about 1 minute.
In the first place, the Senate strikes
out language which they thought op-
erated to limit judicial review. They
make it quite clear as to any eminent
domain or condemnation case that
there would be full judicial review
afforded. I believe it is agreeable to
both sides, insofar as the committee
is concerned, to accept this amend-
ment.
They also strike from the House-
passed bill the word "on" and substi-
tute "immediately prior to" for clari-
fying purposes.
They also strike out the phrase "to
the extent that can reasonably be ac-
complished." By that amendment, I
believe, they make even more certain
the requirement that there be relo-
cation housing available before people
are displaced from their homes by a
Federal land-taking action.
[p. 42506]
The final amendment is that they
add:
Except that the head of that Federal agency
may prescribe by regulation situations when
such assurances may be waived.
That is to provide for an emergency
situation of very critical nature, a
defense requirement that was very
critical or something of that sort.
I believe the overall effect of the
Senate amendments is to make a better
bill. I believe the Senate has in that
sense clarified a point or two which
needed clarification, and I believe the
House should concur in the Senate
amendments.
Mr. HALL. Mr. Speaker, will the
gentleman yield?
Mr. DON H. CLAUSEN. I yield to
the gentleman from Missouri.
Mr. HALL. I appreciate the gentle-
man yielding. I want to compliment
the managers on the part of the
House for bringing up this bill in
this manner. In view of their con-
tent, strengthening, germaneness, and
lack of additional cost, it simply ex-
pedites our business.
I agree with both the gentleman
from California and the gentleman
from Oklahoma who have conferred
with me about this. It takes the rights
of the individuals who are not "will-
ing sellers" into greater consideration
and assures them of proper reloca-
tion before the right of eminent do-
main is enforced on them. This is
important in areas where there have
been sudden condemnations for addi-
tional land rather than using some
of the 34 percent of the land acreage
of the United States that the Federal
Government already has under its
control.
I compliment the committee, and I
appreciate the gentleman yielding to
me.
Mr. DON H. CLAUSEN. Mr.
Speaker, I want to make a final com-
ment that this legislation is the cul-
mination of some 7 years of work on
-------
STATUTES AND LEGISLATIVE HISTORY
1111
the part of the Committee on Public
Works. It has brought about what I
think will be one of the most sig-
nificant pieces of legislation advanced
in this Congress. Having served on
the original Select Subcommittee on
Real Property Acquisition that held
hearing's prior to the advancement of
this bill.
I want it known that we Republican
members of the minority support the
position taken by the committee
unanimously.
The SPEAKER. Is there objection
to the request of the gentleman from
Oklahoma?
There was no objection.
The Senate amendments to the
House amendment were concurred in.
A motion to reconsider was laid on
the table.
[p. 42507]
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1112 LEGAL COMPILATION—GENERAL
1.11 DEPARTMENTAL REGULATIONS, AS REVISED
5 U.S.C. §301 (1966)
DEPARTMENTAL REGULATIONS
5 § 301. Departmental regulations
The head of an Executive department or military department
may prescribe regulations for the government of his deparment,
the conduct of its employees, the distribution and performance of
its business, and the custody, use, and preservation of its records,
papers, and property. This section does not authorize withholding
information from the public or limiting the availability of records
to the public. Pub.L. 89-554, Sept. 6, 1966, 80 Stat. 379.
l.lla CODIFICATION OF 5 U.S.C. §301
September 6, 1966, P.L. 89-554, 80 Stat. 379
§ 301. Departmental regulations
The head of an Executive department or military department
may prescribe regulations for the government of his department,
the conduct of its employees, the distribution and performance of
its business, and the custody, use, and preservation of its records,
papers, and property. This section does not authorize withholding
information from the public or limiting the availability of records
to the public.
[p. 379]
-------
STATUTES AND LEGISLATIVE HISTORY 1113
l.lla(l) SENATE COMMITTEE ON THE JUDICIARY
S. REP. No. 1380, 89th Cong., 2d Sess. (1966)
TITLE 5, UNITED STATES CODE, "GOVERNMENT
ORGANIZATION AND EMPLOYEES"
JULY 21, 1966.—Ordered to be printed
Mr. ERVIN, from the Committee on the Judiciary, submitted the
following
REPORT
[To accompany H.R. 10104]
The Committee on the Judiciary, to which was referred the bill
(H.R. 10104), to enact title 5, United States Code, "Government
Organization and Employees," codifying the general and perma-
nent laws relating- to the organization of the Government of the
United States and to its civilian officers and employees, having
considered the same, reports favorably thereon, with amendments,
and recommends that the bill, H.R. 10104, as amended, do pass.
[p. 1]
STATEMENT
H.R. 10104 was referred to the Subcommittee on Revision and
Codification of the Committee on the Judiciary of the U.S. Senate.
On September 30, 1965, a notice of the pendency of H.R. 10104
was inserted in the Congressional Record. Briefly, the purpose of
this notice was to advise any and all interested parties of the
consideration of this legislation by the subcommittee and to re-
quest that those interested inform the subcommittee of their inter-
est therein, together with such suggestions or modifications that
would from their point of view be reasonable and desirable. In
addition thereto, agencies, departments, and committees of the
Senate, were advised by writing of the pendency of this legislation
and were requested to submit their comments thereon. As the
result of such notice and letters many communications were re-
ceived by the committee. Some of the received reports expressed
approval of the legislation while others recommended amendments
and modifications to the bill. All of these communications were
studied and as a result of the suggestions, numbers of the pro-
-------
1114 LEGAL COMPILATION—GENERAL
posed amendments or modifications were accepted while others
were rejected. In many instances where there were rejections,
such acts were based upon the fact that the committee deemed that
they were unnecessary or constituted a substantive change in exist-
ing law which is not within the concept of a codification.
Purpose.—The purpose of this bill is to restate in comprehensive
form, without substantive change, the statutes in effect before
July 1,1965, that relate to Government employees, the organization
and powers of Federal agencies generally, and administrative
procedure, and to enact title 5 of the United States Code. Queries
have been raised as to the effect of this bill on laws passed sub-
sequent to July 1, 1965. This bill will in no way affect them. Only
those laws existing prior to July 1, 1965, are the subject matter of
this bill. The amendatory effect of laws effective on or after July 1,
1965, which will be covered by a supplemental codification bill, is
preserved by section 7 (a) of the bill. The bill, like any codification,
does not constitute a current legislative endorsement of the sub-
stantive provisions of statutes in effect before July 1, 1965, some
of which are being currently studied by Congress for possible sub-
stantive amendment. As stated in the House report (No. 901) on
H.R. 10104, in the revised title 5, simple language has been sub-
stituted for awkward and obsolete terms, and superseded, execut-
ed, and obsolete statutes have been eliminated. This bill is a part
of the program of the Committee on the Judiciary of the House
of Representatives to enact into law all 50 titles of the United
States Code.
History.—The statutes that relate to Government personnel
begin with the first statute enacted by Congress (1 Stat. 23). With
the growth of the United States and the accompanying growth in
the size of the Government's work force and the complexity of
their duties, the personnel statutes grew in number and in com-
plexity. Attempts were made periodically to consolidate personnel
statutes, but these attempts had only partial success and grew
obsolete through the enactment of subsequent statutes. The Com-
mission on Organization of the Executive Branch of the Govern-
ment (Hoover Commission), in its report on personnel and civil
service, February 1955, recommended that the Civil Service Com-
mission prepare and that Congress enact a statute to codify the
personnel statutes of the United States (Recommendation 17, pp.
82-83). The need for codification of the statutes relating to per-
sonnel has also been recognized by the Committees on Post Office
and Civil Service of both Houses, the Bureau of the Budget, and
the Civil Service Commission.
-------
STATUTES AND LEGISLATIVE HISTORY 1115
In June of 1956, the Civil Service Commission directed its Gen-
eral Counsel, L. V. Meloy, to undertake the recodification of title 5.
The recodification effort resulted in two earlier bills, H.R. 8748,
86th Congress, 1st session, which was introduced on August 20,
1959, and H.R. 4158, 88th Congress, 1st session, which was intro-
duced on February 25, 1963. Both bills were circulated among the
departments and agencies of the Government and, after receipt,
consideration, and adoption of the constructive comments submit-
ted, and incorporation of subsequent legislation, the bill was re-
vised into the form in which it was received by the Senate upon its
passage by the House of Representatives.
[p. 19]
Standard changes.—Certain standard changes are made uni-
formly throughout title 5 as revised. Some of these are explained
in chapter 1, "Organization", and chapter 21, "Definitions". The
most significant of the other standard changes are explained in the
following paragraphs.
As far as possible, the statute is stated in the present tense and
in the active voice. Where there is a choice of two or more words,
otherwise of equal legal effect, the more commonly understood
word is used.
The word "shall" is used in the mandatory and imperative
sense. The word "may" is used in the permissive sense, as "is
permitted to" and "is authorized to". The words "may not" are
used in a prohibitory sense, as "is not authorized to" and "is not
permitted to". The words "no individual may" mean that no indi-
vidual is required, authorized, or permitted to do the act.
The word "includes" means includes but is not limited to. The
word "considered" denotes the exercise of judgment. The word
"deemed" is used where a legal fiction, or what may in some cases
be a legal fiction, is intended. The word "is" is used for statements
of fact.
*******
[p. 20]
CHAPTER 3—POWERS
Sec.
301. Departmental regulations.
302. Delegation of authority.
303. Oaths to witnesses.
304. Subpenas.
305. Systematic agency review of operations.
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1116 LEGAL COMPILATION—GENERAL
SECTION 301
Derivation: United States Code Revised Statutes and Statutes at Large
5 U.S.C. 22 R.S. § 161.
Aug. 12, 1958, Pub. L. 85-619, 72 Stat.
547.
The words "Executive department" are substituted for "depart-
ment" as the definition of "department" applicable to this section
is coextensive with the definition of "Executive department" in
section 101. The words "not inconsistent with law" are omitted as
surplusage as a regulation which is inconsistent with law is in-
valid.
The words "or military department" are inserted to preserve
the application of the source law. Before enactment of the Na-
tional Security Act Amendments of 1949 (63 Stat. 578), the De-
partment of the Army, the Department of the Navy, and the
Department of the Air Force were Executive departments. The
National Security Act Amendments of 1949 established the De-
partment of Defense as an Executive Department including the
Department of the Army, the Department of the Navy, and the
Department of the Air Force as military departments, not as
Executive departments. However, the source law for this section,
which was in effect in 1949, remained applicable to the Secretaries
of the military departments by virtue of section 12 (g) of the
National Security Act Amendments of 1949 (63 Stat. 591), which
provided:
"All laws, orders, regulations, and other actions relating to
the National Military Establishment, the Departments of the
Army, the Navy, or the Air Force, or to any officer or activity
of such establishment or such departments, shall, except to
the extent inconsistent with the provisions of this Act, have
the same effect as if this Act had not been enacted; but, after
the effective date of this Act, any such law, order, regulation,
or other action which vested functions in or otherwise related
to any officer, department, or establishment, shall be deemed
to have vested such function in or relate to the officer or
department, executive or military, succeeding the officer, de-
partment, or establishment in which such function was
vested. For purposes of this subsection the Department of
Defense shall be deemed the department succeeding the Na-
tional Military Establishment, and the military departments
of Army, Navy, and Air Force shall be deemed the depart-
[P. 23]
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STATUTES AND LEGISLATIVE HISTORY 1117
ments succeeding the Executive Departments of Army, Navy,
and Air Force."
This section was part of title IV of the Revised Statutes. The
Act of July 26, 1947, ch. 343, § 201 (d), as added Aug. 10, 1949, ch.
412, § 4, 63 Stat. 579 (former 5 U.S.C. 171-1), which provides
"Except to the extent inconsistent with the provisions of this Act
[National Security Act of 1947], the provisions of title IV of the
Revised Statutes as now or hereafter amended shall be applicable
to the Department of Defense" is omitted from this title but is not
repealed.
Standard changes are made to conform with the definitions ap-
plicable and the style of this title as outlined in the preface to the
report.
[p. 24]
l.lla(2) CONGRESSIONAL RECORD, VOL. 112 (1966)
l.lla(2)(a) July 25: Amended and passed Senate, p. 17010
[No Relevant Discussion on Pertinent Section]
l.lla(2)(b) Aug. 11: House concurs in Senate amendments,
p. 19077
[No Relevant Discussion on Pertinent Section]
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1118 LEGAL COMPILATION—GENERAL
1.12 PUBLIC HEALTH SERVICE ACT, AS AMENDED
42 U.S.C. §§ 203, 215, 241, 242, 242b, c, d, f, i, j, 243, 244, 244a, 245, 246, 247, 264
(1970)
§ 203. Organization of Service
The Service shall consist of (1) the Office of the Surgeon Gen-
eral, (2) the National Institutes of Health, (3) the Bureau of
Medical Services, and (4) the Bureau of State Services. The Sur-
geon General is authorized and directed to assign to the Office of
the Surgeon General, to the National Institutes of Health, to the
Bureau of Medical Services, and to the Bureau of State Services,
respectively, the several functions of the Service, and to establish
within them such divisions, sections, and other units as he may
find necessary; and from time to time abolish, transfer, and con-
solidate divisions, sections, and other units and assign their func-
tions and personnel in such manner as he may find necessary for
efficient operation of the Service. No division shall be established,
abolished, or transferred, and no divisions shall be consolidated,
except with the approval of the Secretary. The National Institutes
of Health shall be administered as a part of the field service. The
Surgeon General may delegate to any officer or employee of the
Service such of his powers and duties under this chapter except
the making of regulations, as he may deem necessary or expedient.
July 1, 1944, c. 373, Title II, § 202, 58 Stat. 683; June 16, 1948, c.
481, § 6 (b), 62 Stat. 469; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr.
11, 1953, 18 F.R. 2053, 67 Stat. 631.
§ 215. Detail of personnel to governmental departments, States
and subdivisions, and certain institutions; payment of salaries
and allowances
(a) The Secretary is authorized, upon the request of the head of
an executive department, to detail officers or employees of the
Service to such department for duty as agreed upon by the Secre-
tary and the head of such department in order to cooperate in, or
conduct work related to, the functions of such department or of
the Service. When officers or employees are so detailed their sala-
ries and allowances may be paid from working funds established
as provided by law or may be paid by the Service from applicable
appropriations and reimbursement may be made as agreed upon
by the Secretary and the head of the executive department con-
cerned. Officers detailed for duty with the Army, Air Force, Navy
or Coast Guard shall be subject to the laws for the government of
the service to which detailed.
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STATUTES AND LEGISLATIVE HISTORY 1119
(b) Upon the request of any State health authority or, in the
case of work relating to mental health, any State mental health
authority, personnel of the Service may be detailed by the Surgeon
General for the purpose of assisting such State or a political
subdivision thereof in work related to the functions of the Service.
(c) The Surgeon General may detail personnel of the Service to
nonprofit educational, research, or other institutions engaged in
health activities for special studies of scientific problems and for
the dissemination of information relating to public health.
(d) Personnel detailed under subsections (b) and (c) of this
section shall be paid from applicable appropriations of the Serv-
ice, except that, in accordance with regulations such personnel
may be placed on leave without pay and paid by the State, subdivi-
sion, or institution to which they are detailed. The services of
personnel while detailed pursuant to this section shall be consid-
ered as having been performed in the Service for purposes of the
computation of basic pay, promotion, retirement, compensation
for injury or death, and the benefits provided by section 213 of
this title.
July 1, 1944, c. 373, Title II, § 214, 58 Stat. 690; July 3, 1946, c.
538, § 6, 60 Stat. 423; Oct. 12, 1949, c. 681, Title V, § 521 (e), 63
Stat. 835; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. April 11, 1953, 18
F.R. 2053, 67 Stat. 631.
SUBCHAPTER II.—GENERAL POWERS AND DUTIES
Part A.—Research and Investigations
§ 241. Research and investigations generally
The Surgeon General shall conduct in the Service, and encour-
age, cooperate with, and render assistance to other appropriate
public authorities, scientific institutions, and scientists in the con-
duct of, and promote the coordination of, research, investigations,
experiments, demonstrations, and studies relating to the causes,
diagnosis, treatment, control, and prevention of physical and men-
tal diseases and impairments of man, including water purification,
sewage treatment, and pollution of lakes and streams. In carrying
out the foregoing the Surgeon General is authorized to—
(a) Collect and make available through publications and other
appropriate means, information as to, and the practical applica-
tion of, such research and other activities;
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1120 LEGAL COMPILATION—GENERAL
(b) Make available research facilities of the Service to appro-
priate public authorities, and to health officials and scientists en-
gaged in special study;
(c) Establish and maintain research fellowships in the Service
with such stipends and allowances, including traveling and sub-
sistence expenses, as he may deem necessary to procure the assist-
ance of the most brilliant and promising research fellows from the
United States and abroad;
(d) Make grants-in-aid to universities, hospitals, laboratories,
and other public or private institutions, and to individuals for
such research or research training projects as are recommended
by the National Advisory Health Council, or, with respect to can-
cer, recommended by the National Advisory Cancer Council, or,
with respect to mental health, recommended by the National Advi-
sory Mental Health Council, or, with respect to heart diseases,
recommended by the National Advisory Heart Council, or, with
respect to dental disease and conditions, recommended by the Na-
tional Advisory Dental Research Council; and include in the
grants for any such project grants of penicillin and other anti-
biotic compounds for use in such project; and make, upon recom-
mendation of the National Advisory Health Council, grants-in-aid
to public or nonprofit universities, hospitals, laboratories, and
other institutions for the general support of their research and
research training programs: Provided, That such uniform per-
centage, not to exceed 15 per centum, as the Surgeon General may
determine, of the amounts provided for grants for research or
research training projects for any fiscal year through the appro-
priations for the National Institutes of Health may be transferred
from such appropriations to a separate account to be available for
such research and research training program grants-in-aid for
such fiscal year;
(e) Secure from time to time and for such periods as he deems
advisable, the assistance and advice of experts, scholars, and con-
sultants from the United States or abroad;
(f) For purposes of study, admit and treat at institutions, hos-
pitals, and stations of the Service, persons not otherwise eligible
for such treatment;
(g) Make available, to health officials, scientists, and appropri-
ate public and other nonprofit institutions and organizations, tech-
nical advice and assistance on the application of statistical meth-
ods to experiments, studies, and surveys in health and medical
fields;
(h) Enter into contracts during the fiscal year ending June 30,
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STATUTES AND LEGISLATIVE HISTORY 1121
1966, and each of the eight succeeding fiscal years, including con-
tracts for research in accordance with and subject to the provi-
sions of law applicable to contracts entered into by the military
departments under sections 2353 and 2354 of Title 10, except that
determination, approval, and certification required thereby shall
be by the Secretary of Health, Education, and Welfare; and
(i) Adopt, upon recommendation of the National Advisory
Health Council, or, with respect to cancer, upon recommendation
of the National Advisory Cancer Council, or, with respect to men-
tal health, upon recommendation of the National Advisory Mental
Health Council, or, with respect to heart diseases, upon recommen-
dation of the National Advisory Heart Council, or, with respect to
dental diseases and conditions, upon recommendations of the Na-
tional Advisory Dental Research Council, such additional means as
he deems necessary or appropriate to carry out the purposes of
this section.
July 1, 1944, c. 373, Title III, § 301, 58 Stat. 691; July 3, 1946, c.
538, § 7 (a, b), 60 Stat. 423; June 16, 1948, c. 481, § 4 (e, f), 62
Stat. 467; June 24, 1948, c. 621, § 4 (e, f), 62 Stat. 601; June 25,
1948, c. 654, § 1, 62 Stat. 1017; July 3, 1956, c. 510, § 4, 70 Stat.
490; Sept. 15, I960, Pub.L. 86-798, 74 Stat. 1053; Oct. 17, 1962,
Pub.L. 87-838, § 2, 76 Stat. 1073; Aug. 9, 1965, Pub.L. 89-115,
§ 3, 79 Stat. 448; Dec. 5, 1967, Pub.L. 90-174, § 9, 81 Stat. 540;
and amended Oct. 30, 1970, Pub.L. 91-515, Title II, § 292, 84 Stat.
1308.
§ 242b. Research and demonstrations relating to health facilities
and services—Grants and contracts for projects for research,
experiments, or demonstrations and related training; cost
limitation; wage rates, labor standards, and other conditions;
payments
(a) (1) The Secretary is authorized—
(A) to make grants to States, political subdivisions, univ-
ersities, hospitals, and other public or nonprofit private agen-
cies, institutions, or organizations for projects for the con-
duct of research, experiments, or demonstrations (and related
training), and
(B) to make contracts with public or private agencies,
institutions, or organizations for the conduct of research, ex-
periments, or demonstrations (and related training), relating
to the development, utilization, quality, organization, and
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1122 LEGAL COMPILATION—GENERAL
financing of services, facilities, and resources of hospitals,
facilities for long-term care, or other medical facilities (in-
cluding, for purposes of this section, facilities for the men-
tally retarded, as denned in the Mental Retardation Facilities
and Community Mental Health Centers Construction Act of
1963), agencies, institutions, or organizations or to develop-
ment of new methods or improvement of existing methods of
organization, delivery, or financing of health services, includ-
ing, among others—
(i) projects for the construction of units of hospitals, facil-
ities for long-term care, or other medical facilities which in-
volve experimental architectural designs or functional layout
or use of new materials or new methods of construction, the
efficiency of which can be tested and evaluated, or which
involve the demonstration of such efficiency, particularly pro-
jects which also involve research, experiments, or demonstra-
tions relating to delivery of health services, and
(ii) projects for development and testing of new equipment
and systems, including automated equipment, and other new
technology systems or concepts for the delivery of health
services, and
(iii) projects for research and demonstration in new ca-
reers in health manpower and new^ways of educating and
utilizing health manpower, and
(iv) projects for research, experiments, and demonstra-
tions dealing with the effective combination or coordination
of public, private, or combined public-private methods or sys-
tems for the delivery of health services at regional, State, or
local levels, and
(v) projects for research and demonstrations in the provi-
sion of home health services.
(2) Except where the Secretary determines that unusual cir-
cumstances make a larger percentage necessary in order to effec-
tuate the purposes of this subsection, a grant or contract under
this subsection with respect to any project for construction of a
facility or for acquisition of equipment may not provide for pay-
ment of more than 50 per centum of so much of the cost of the
facility or equipment as the Secretary determines is reasonably
attributable to research, experimental, or demonstration purposes.
The provisions of clause (5) of the third sentence of section 291e
(a) of this title and such other conditions as the Secretary may
determine shall apply with respect to grants or contracts under
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STATUTES AND LEGISLATIVE HISTORY 1123
this subsection for projects for construction of a facility or for
acquisition of equipment.
(3) (A) Payments of any grants or under any contracts under
this subsection may be made in advance or by way of reimburse-
ment, and in such installments and on such conditions as the
Secretary deems necessary to carry out the purposes of this sub-
section.
(B) The amounts otherwise payable to any person under a
grant or contract made under this subsection shall be reduced by—
(i) amounts equal to the fair market value of any equip-
ment or supplies furnished to such person by the Secretary
for the purpose of carrying out the project with respect to
which such grant or contract is made, and
(ii) amounts equal to the pay, allowances, traveling ex-
penses, and related personnel expenses attributable to the per-
formance of services by an officer or employee of the Govern-
ment in connection with such project, if such officer or em-
ployee was assigned or detailed by the Secretary to perform
such services,
but only if such person requested the Secretary to furnish
such equipment or supplies, or such services, as the case may
be.
Systems analysis of national health care plans; cost and coverage report on
existing legislative proposals
(b) (1) (A) The Secretary shall develop, through utilization of
the systems analysis method, plans for health care systems de-
signed adequately to meet the health needs of the American peo-
ple. For purposes of the preceding sentence, the systems analysis
method means the analytical method by which various means of
obtaining a desired result or goal is associated with the costs and
benefits involved.
(B) The Secretary shall complete the development of the plans
referred to in subparagraph (A), within such period as may be
necessary to enable him to submit to the Congress not later than
September 30, 1971, a report thereon which shall describe each
plan so developed in terms of—
(i) the number of people who would be covered under the
plan;
(ii) the kind and type of health care which would be
covered under the plan;
(iii) the cost involved in carrying out the plan and how
such costs would be financed;
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1124 LEGAL COMPILATION—GENERAL
(iv) the number of additional physicians and other health
care personnel and the number and type of health care facili-
ties needed to enable the plan to become fully effective;
(v) the new and improved methods, if any, of delivery of
health care services which would be developed in order to
effectuate the plan;
(vi) the accessibility of the benefits of such plan to various
socioeconomic classes of persons;
(vii) the relative effectiveness and efficiency of such plan
as compared to existing means of financing and delivering
health care; and
(viii) the legislative, administrative, and other actions
which would be necessary to implement the plan.
(C) In order to assure that the advice and service of experts in
the various fields concerned will be obtained in the plans author-
ized by this paragraph and that the purposes of this paragraph
will fully be carried out—
(i) the Secretary shall utilize, whenever appropriate, per-
sonnel from the various agencies, bureaus, and other depart-
mental subdivisions of the Department of Health, Education,
and Welfare;
(ii) the Secretary is authorized, with the consent of the
head of the department or agency involved, to utilize (on a
reimbursable basis) the personnel and other resources of
other departments and agencies of the Federal Government;
and
(iii) the Secretary is authorized to consult with appropri-
ate State or local public agencies, private organizations, and
individuals.
(2) (A) The Secretary shall, in accordance with this para-
graph, conduct a study of each legislative proposal which is intro-
duced in the Senate or the House of Representatives during the
Ninety-first Congress, and which undertakes to establish a na-
tional health insurance plan or similar plan designed to meet the
needs of health insurance or for health services of all or the
overwhelming majority of the people of the United States.
(B) In conducting such study with respect to each such legisla-
tive proposal, the Secretary shall evaluate and analyze such pro-
posal with a view to determining—
(i) The costs of carrying out the proposal; and
(ii) the adequacy of the proposal in terms of (I) the por-
tion of the population covered by the proposal, (II) the type
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STATUTES AND LEGISLATIVE HISTORY 1125
health care provided, paid for, or insured against under the
proposal, (III) whether, and if so, to what extent, the pro-
posal provides for the development of new and improved
methods for the delivery of health care and services.
(C) Not later than March 31, 1971, the Secretary shall submit
to the Congress a report on each legislative proposal which he has
been directed to study under this paragraph, together with an
analysis and evaluation of such proposal.
Authorization of appropriations
(c) (1) There are authorized to be appropriated for payment
of grants or under contracts under subsection (a) of this section,
and for purposes of carrying out the provisions of subsection (b)
of this section, $71,000,000 for the fiscal year ending June 30,
1971 (of which not less than $2,000,000 shall be available only
for purposes of carrying out the provisions of subsection (b))
of this section, $82,000,000 for the fiscal year ending June 30,
1972, and $94,000,000 for the fiscal year ending June 30, 1973.
(2) In addition to the funds authorized to be appropriated
under paragraph (1) to carry out the provisions of subsection
(b) of this section there are hereby authorized to be appropriated
to carry out such provisions for each fiscal year such sums as
may be necessary.
July 1, 1944, c. 373, Title III, § 304, as added July 28, 1955, c.
417, § 3, 69 Stat. 382, and amended Aug. 2, 1956, c. 871, Title V,
§ 502, 70 Stat. 930; Dec. 5, 1967, Pub.L. 90-174, § 3 (a), 81 Stat.
534; and amended June 30, 1970, Pub.L. 91-296, Title IV, §
401 (b) (1) (A), 84 Stat. 352; Oct. 30, 1970, Pub.L. 91-515,
Title II, §§ 201-203, 84 Stat. 1301, 1303.
§ 242c. National health surveys and studies—Determination of
extent of illness and disability and related information; develop-
ment and test of methods for obtaining current data; use and
publication of information.
(a) The Surgeon General is authorized (1) to make, by sam-
pling or other appropriate means, surveys and special studies of
the population of the United States to determine the extent of
illness and disability and related information such as: (A) the
number, age, sex, ability to work or engage in other activities,
and occupation or activities of persons afflicted with chronic or
other disease or injury or handicapping condition; (B) the type
of disease or injury or handicapping condition of each person so
afflicted; (C) the length of time that each such person has been
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1126 LEGAL COMPILATION—GENERAL
prevented from carrying on his occupation or activities; (D) the
amounts and types of services received for or because of such
conditions; (E) the economic and other impacts of such condi-
tions; (F) health care resources; (G) environmental and social
health hazards; and (H) family formation, growth, and dissolu-
tion; and (2) in connection therewith, to develop and test new
or improved methods for obtaining current data on illness and
disability and related information. No information obtained in
accordance with this paragraph may be used for any purpose
other than the statistical purposes for which it was supplied
except pursuant to regulations of the Secretary; nor may any
such information be published if the particular establishment or
person supplying it is identifiable except with the consent of such
establishment or person.
Development of uniform system of health information and statistics
(b) The Secretary is authorized, directly or by contract, to
undertake research, development, demonstration, and evaluation,
relating to the design and implementation of a cooperative system
for producing comparable and uniform health information and
statistics at the Federal, State, and local levels.
Publication of results
(c) The Surgeon General is authorized, at appropriate intervals,
to make available, through publications and otherwise, to any
interested governmental or other public or private agencies, orga-
nizations, or groups, or to the public, the results of surveys or
studies made pursuant to subsection (a )of this section.
Authorization of appropriations
(d) There are authorized to be appropriated to carry out
this section $15,000,000 for the fiscal year ending June 30,
1971, $20,000,000 for the fiscal year ending June 30, 1972, and
$25,000,000 for the fiscal year ending June 30, 1973.
Cooperation with other Governmental or State agencies
(e) To assist in carrying out the provisions of this section the
Surgeon General is authorized and directed to cooperate and
consult with the Departments of Commerce and Labor and any
other interested Federal Departments or agencies and with State
health departments. For such purpose he shall utilize insofar as
possible the services or facilities of any agency of the Federal
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STATUTES AND LEGISLATIVE HISTORY 1127
Government and, without regard to section 5 of Title 41, of any
appropriate State or other public agency, and may, without regard
to section 5 of Title 41, utilize the services or facilities of any
private agency, organization, group, or individual, in accordance
with written agreements between the head of such agency, orga-
nization, or group, or such individual, and the Secretary of Health,
Education, and Welfare. Payment, if any, for such services or
facilities shall be made in such amounts as may be provided in
such agreement.
July 1, 1944, c. 373, Title III, § 305, as added July 3, 1956, c. 510,
§ 3, 70 Stat. 490; and amended Oct. 30, 1970, Pub.L. 91-515,
Title II, § 210, 84 Stat. 1303.
§ 242d. Graduate or specialized training for physicians, engineers,
nurses, and other professional personnel—Appropriations
(a) There are authorized to be appropriated for the fiscal year
ending June 30, 1957, and for each of the next twelve fiscal years,
such sums as the Congress may determine, but not to exceed
$4,500,000 for the fiscal year ending June 30, 1965, $7,000,000
for the fiscal year ending June 30, 1966, $8,000,000 for the fiscal
year ending June 30, 1967, $10,000,000 each for the fiscal year
ending June 30, 1968, and the two succeeding fiscal years,
$14,000,000 for the fiscal year ending June 30, 1971, $16,000,000
for the fiscal year ending June 30, 1972, and $18,000,000 for the
fiscal year ending June 30, 1973, to cover the cost of traineeships
for graduate or specialized training in public health for physi-
cians, engineers, nurses, sanitarians, and other professional health
personnel.
Awards of traineeships to individuals or institutions
(b) Traineeships under this section may be awarded by the
Surgeon General either (1) directly to individuals whose applica-
tions for admission have been accepted by the public or other
nonprofit institutions providing the training, or (2) through
grants to such institutions.
Payments; time; conditions; limitations
(c) Payments under this section may be made in advance or
by way of reimbursement, and at such intervals and on such
conditions, as the Surgeon General finds necessary. Such payments
to institutions may be used only for traineeships, and payments
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1128 LEGAL COMPILATION—GENERAL
under this section with respect to any traineeship shall be limited
to such amounts as the Surgeon General finds necessary to cover
the cost of tuition and fees, and a stipend and allowances (includ-
ing travel and subsistence expenses) for the trainee.
Advisory committee; composition and functions
(d) The Surgeon General shall appoint an expert advisory com-
mittee, composed of persons representative of the principal health
specialties in the fields of public health administration and train-
ing, to advise him in connection with the administration of this
section and section 242g of this title, including the development
of program standards and policies and including, in the case of
section 242g of this title, certification to the Surgeon General of
projects which it has reviewed and approved.
Conference; representatives; appraisal of traineeships; report and
recommendations
(e) The Surgeon General shall, between June 30, 1958, and
December 1, 1958, call a conference broadly representative of the
professional and training groups interested in and informed
about training of professional public health personnel, and includ-
ing members of the advisory committee appointed pursuant to
subsection (d) of this section, to assist him in appraising the
effectiveness of the traineeships under this section in meeting
the needs for trained public health personnel; in considering
modifications in this section, if any, which may be desirable to
increase its effectiveness; and in considering the most effective
distribution of responsibilities between Federal and State govern-
ments with respect to the administration and support of public
health training. The Surgeon General shall submit to the Congress,
on or before January 1, 1959, a report of such conference, includ-
ing any recommendations by it relating to the limitation, exten-
sion, or modification of this section. The Surgeon General shall,
between June 30, 1963, and December 1, 1963, call a similar con-
ference, and shall submit to the Congress, on or before January
1, 1964, a report of such conference, including any recommenda-
tions by it relating to the limitation, extension, or modification of
this section. The Surgeon General shall, between June 30, 1967,
and December 1, 1967, call a similar conference, and shall submit
to the Congress, on or before January 1, 1968, a report of such
conference, including any recommendations by it relating to the
limitation, extension, or modification of this section.
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STATUTES AND LEGISLATIVE HISTORY 1129
Supervision of personnel or curriculum
(f) Except as otherwise provided in this section, nothing con-
tained in this section shall be construed as authorizing any depart-
ment, agency, officer, or employee of the United States to exercise
any direction, supervision, or control over the personnel or cur-
riculum of any training institution.
July 1, 1944, c. 373, Title III, § 306, as added Aug. 2, 1956, c. 871,
Title I, § 101, 70 Stat. 923, and amended July 23, 1959, Pub.L.
86-105, § 1, 73 Stat. 239; Sept. 8, 1960, Pub.L. 86-720, § l(b),
74 Stat. 820; Aug. 27, 1964, Pub.L. 88-497, § 2, 78 Stat. 613;
Aug. 16, 1968, Pub.L. 90-490, Title III, § 302 (b), 82 Stat. 789;
and amended Mar. 12, 1970, Pub.L. 91-208, § 3, 84 Stat. 52;
Oct. 30,1970, Pub.L. 91-515, Title VI, § 601 (b) (2), 84 Stat. 1311.
§ 242f. International cooperation—Use of health research and
research training resources
(a) To carry out the purposes of clause (1) of section 2101 of
Title 22, the Surgeon General may, in the exercise of his authority
under this chapter and other provisions of law to conduct and
support health research and research training, make such use of
health research and research training resources in participating
foreign countries as he may deem necessary and desirable.
Fellowships; equipment; meetings and conferences; interchange of scientists
and experts; consultants; compensation and travel expenses
(b) In carrying out his responsibilities under this section the
Surgeon General may—
(1) establish and maintain fellowships in the United States
and in participating foreign countries;
(2) make grants to public institutions or agencies and to
nonprofit private institutions or agencies in the United States
and in participating foreign countries for the purpose of es-
tablishing and maintaining fellowships;
(3) make grants or loans of equipment, medical, biological,
physical, or chemical substances or other materials, for use by
public institutions or agencies, or nonprofit private institu-
tions or agencies, or by individuals, in participating foreign
countries;
(4) participate and otherwise cooperate in any interna-
tional health research or research training meetings, confer-
ences, or other activities;
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1130 LEGAL COMPILATION—GENERAL
(5) facilitate the interchange between the United States
and participating foreign countries, and among participating
foreign countries, of research scientists and experts who are
engaged in experiments and programs of research or research
training, and in carrying out such purpose may pay per diem
compensation, subsistence, and travel for such scientists and
experts when away from their places of residence at rates not
to exceed those provided in section 73b—2 of Title 5 for
persons in the Government service employed intermittently;
and
(6) procure, in accordance with the provisions of section
55a of Title 5, the temporary or intermittent services of ex-
perts or consultants; individuals so employed shall receive
compensation at a rate to be fixed by the Secretary, but not in
excess of $50 per diem, including travel time, and while away
from their homes or regular places of business may be al-
lowed travel expenses, including per diem in lieu of subsist-
ence, as authorized by section 73b—2 of Title 5 for persons in
the Government service employed intermittently.
Building construction prohibition
(c) The Surgeon General may not, in the exercise of his author-
ity under this section, assist in the construction of buildings for
research or research training in any foreign country.
Definitions
(d) For the purposes of this section—
(1) The term "health research" shall include, but not be
limited to, research, investigations, and studies relating to
causes and methods of prevention of accidents, including but
not limited to highway and aviation accidents.
(2) The term "participating foreign countries" means
those foreign countries which cooperate with the United
States in carrying out the purposes of this section.
July 1, 1944, c. 373, Title III, § 308, as added July 12, 1960, Pub.
L. 86-610, § 3, 74 Stat. 364.
§ 242i. Administration of grants in multigrant projects; pro-
mulgation or regulations
For the purpose of facilitating the administration of, and expe-
diting the carrying out of the purposes of, the programs estab-
lished by subchapter VII of this chapter, and sections 242b,
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STATUTES AND LEGISLATIVE HISTORY 1131
246(a), 246(b), 246(c), 246(d), and 246(e) of this title in situa-
tions in which grants are sought or made under two or more of
such programs with respect to a single project, the Secretary is
authorized to promulgate regulations—
(1) under which the administrative functions under such
programs with respect to such project will be performed by a
single administrative unit which is the administrative unit
charged with the administration of any of such programs or
is the administrative unit charged with the supervision of two
or more of such programs;
(2) designed to reduce the number of applications, reports,
and other materials required under such programs to be sub-
mitted with respect to such project, and otherwise to sim-
plify, consolidate, and make uniform (to the extent feasible),
the data and information required to be contained in such
applications, reports, and other materials; and
(3) under which inconsistent or duplicative requirements
imposed by such programs will be revised and made uniform
with respect to such project;
except that nothing in this section shall be construed to authorize
the Secretary to waive or suspend, with respect to any such pro-
ject, any requirement with respect to any of such programs if
such requirement is imposed by law or by any regulation required
by law.
July 1, 1944, c. 373, Title III, § 310A, as added Oct. 30, 1970,
Pub.L. 91-515, Title II, § 270, 84 Stat. 1306.
§ 242j. Annual report by Secretary on activities related to health
facilities and services and expenditure of funds
On or before January 1 of each year, the Secretary shall trans-
mit to the Congress a report of the activities carried on under the
provisions of subchapter VII of this chapter and sections 242b,
242c, 246(a), 246(b), 246(c), 246(d), and 246(e) of this title
together with (1) an evaluation of the effectiveness of such activi-
ties in improving the efficiency and effectiveness of the research,
planning, and delivery of health services in carrying out the pur-
poses for which such provisions were enacted, (2) a statement of
the relationship between Federal financing and financing from
other sources of the activities undertaken pursuant to such provi-
sions (including the possibilities for more efficient support of such
activities through use of alternate sources of financing after an
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1132 LEGAL COMPILATION—GENERAL
initial period of support under such provisions), and (3) such
recommendations with respect to such provisions as he deems ap-
propriate.
July 1, 1944, c. 373, Title III, § 310B, as added Oct. 30, 1970,
Pub.L. 91-515, Title II, § 280, 84 Stat. 1307.
Part B.—Federal-State Cooperation
§ 243. General grant of authority for cooperation—Enforcement
of quarantine regulations; prevention of communicable
diseases
(a) The Secretary is authorized to accept from State and local
authorities any assistance in the enforcement of quarantine regu-
lations made pursuant to this chapter which such authorities may
be able and willing to provide. The Secretary shall also assist
States and their political subdivisions in the prevention and sup-
pression of communicable diseases, shall cooperate with and aid
State and local authorities in the enforcement of their quarantine
and other health regulations and in carrying out the purposes
specified in section 246 of this title, and shall advise the several
States on matters relating to the preservation and improvement of
the public health.
Comprehensive and continuing planning; training of personnel for State and
local health work
(b) The Secretary shall encourage cooperative activities be-
tween the States with respect to comprehensive and continuing
planning as to their current and future health needs, the establish-
ment and maintenance of adequate public health services, and
otherwise carrying out the purposes of section 246 of this title.
The Secretary is also authorized to train personnel for State and
local health work.
Problems resulting from disasters; emergencies; reimbursement of
United States
(c) The Secretary may enter into agreements providing for
cooperative planning between Public Health Service medical facili-
ties and community health facilities to cope with health problems
resulting from disasters, and for participation by Public Health
Service medical facilities in carrying out such planning. He may
also, at the request of the appropriate State or local authority,
extend temporary (not in excess of forty-five days) assistance to
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STATUTES AND LEGISLATIVE HISTORY 1133
States or localities in meeting health emergencies of such a nature
as to warrant Federal assistance. The Secretary may require such
reimbursement of the United States for aid (other than planning)
under the preceding sentences of this subsection as he may deter-
mine to be reasonable under the circumstances. Any reimburse-
ment so paid shall be credited to the applicable appropriation of
the Public Health Service for the year in which such reimburse-
ment is received.
July 1, 1944, c. 373, Title III, § 311, 58 Stat. 693; Nov. 3, 1966,
Pub.L. 89-749, § 5, 80 Stat. 1190; Dec. 5, 1967, Pub.L. 90-174, § 4,
81 Stat. 536; and amended Oct. 30, 1970, Pub.L. 91-515, Title II, §
282, 84 Stat. 1308.
§ 244. Health conferences
A conference of the health authorities of the several States shall
be called annually by the Secretary. Whenever in his opinion the
interests of the public health would be promoted by a conference,
the Secretary may invite as many of such health authorities and
officials of other State or local public or private agencies, institu-
tions, or organizations to confer as he deems necessary or proper.
Upon the application of health authorities of five or more States it
shall be the duty of the Secretary to call a conference of all State
and Territorial health authorities joining in the request. Each
State represented at any conference shall be entitled to a single
vote. Whenever at any such conference matters relating to mental
health are to be discussed, the mental health authorities of the
respective States shall be invited to attend.
July 1, 1944, c. 373, Title III, § 312, 58 Stat. 693; July 3, 1946, c.
538, § 8, 60 Stat. 424; Dec. 5, 1967, Pub.L. 90-174, § 12 (b), 81
Stat. 541; and amended Oct. 30, 1970, Pub.L. 91-515, Title II,
§§ 282, 84 Stat. 1308.
§ 244a. Birth and death statistics; annual collection; compensa-
tion for transcription
There shall be a collection of the statistics of the births and
deaths in registration areas annually, the data for which shall be
obtained only from and restricted to such registration records of
such States and municipalities as in the discretion of the Secretary
of Health, Education, and Welfare possess records affording satis-
factory data in necessary detail, the compensation for the tran-
scription of which shall not exceed 4 cents for each birth or death
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1134 LEGAL COMPILATION—GENERAL
reported; or a minimum compensation of $25 may be allowed in
the discretion of the Secretary of Health, Education, and Welfare,
in States or cities registering less than five hundred deaths or five
hundred births during the preceding year.
July 1, 1944, c. 373, Title III, § 312a, as added Aug. 31, 1954, c.
1158, § 2, 68 Stat. 1025.
§ 245. Collection of vital statistics
To secure uniformity in the registration of mortality, morbid-
ity, and vital statistics the Secretary shall prepare and distribute
suitable and necessary forms for the collection and compilation of
such statistics which shall be published as a part of the health
reports published by the Secretary.
July 1, 1944, c. 373, Title III, § 313, 58 Stat. 693; and amended
Oct. 30, 1970, Pub.L. 91-515, Title II, § 282, 84 Stat. 1308.
§ 246. Grants and services to States—Comprehensive health
planning and services
(a) (1) In order to assist the States in comprehensive and
continuing planning for their current and future health needs, the
Secretary is authorized during the period beginning July 1, 1966,
and ending June 30, 1973, to make grants to States which have
submitted, and had approved by the Secretary, State plans for
comprehensive State health planning. For the purposes of carry-
ing out this subsection, there are hereby authorized to be appro-
priated $2,500,000 for the fiscal year ending June 30, 1967,
$7,000,000 for the fiscal year ending June 30, 1968, $10,000,000 for
the fiscal year ending June 30, 1969, $15,000,000 for the fiscal year
ending June 30, 1970, $15,000,000 for the fiscal year ending June
30, 1971, $17,000,000 for the fiscal year ending June 30, 1972, and
$20,000,000 for the fiscal year ending June 30, 1973.
(2) In order to be approved for purposes of this subsection, a
State plan for comprehensive State health planning must—
(A) designate, or provide for the establishment of, a single
State agency, which may be an interdepartmental agency, as
the sole agency for administering or supervising the adminis-
tration of the State's health planning functions under the
plan;
(B) provide for the establishment of a State health plan-
ning council, which shall include representatives of Federal,
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STATUTES AND LEGISLATIVE HISTORY 1135
State, and local agencies (including as an ex-officio member,
if there is located in such State one or more hospitals or other
health care facilities of the Veterans' Administration, the in-
dividual whom the Administrator of Veterans' Affairs shall
have designated to serve on such council as the representative
of the hospitals or other health care facilities of such Admin-
istration which are located in such State) and nongovernmen-
tal organizations and groups concerned with health, (includ-
ing representation of the regional medical program or pro-
grams included in whole or in part within the State) and of
consumers of health services, to advise such State agency in
carrying out its functions under the plan, and a majority of
the membership of such council shall consist of representa-
tives of consumers of health services;
(C) set forth policies and procedures for the expenditure
of funds under the plan, which, in the judgment of the Secre-
tary are designed to provide for comprehensive State plan-
ning for health services (both public and private) and includ-
ing home health care, including the facilities and persons
required for the provision of such services, to meet the health
needs of the people of the State and including environmental
considerations as they relate to public health;
(D) provide for encouraging cooperative efforts among
governmental or nongovernmental agencies, organizations
and groups concerned with health services, facilities, or man-
power, and for cooperative efforts between such agencies, or-
ganizations, and groups and similar agencies, organizations,
and groups in the fields of education, welfare, and rehabilita-
tion ;
(E) contain or be supported by assurances satisfactory to
the Secretary that the funds paid under this subsection will
be used to supplement and, to the extent practicable, to in-
crease the level of funds that would otherwise be made availa-
ble by the State for the purpose of comprehensive health
planning and not to supplant such non-Federal funds;
(F) provide such methods of administration (including
methods relating to the establishment and maintenance of
personnel standards on a merit basis, except that the Secre-
tary shall exercise no authority with respect to the selection
tenure of office, and compensation of any individual employed
in accordance with such methods) as are found by the Secre-
tary to be necessary for the proper and efficient operation of
the plan;
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1136 LEGAL COMPILATION—GENERAL
(G) provide that the State agency will make such reports,
in such form and containing such information, as the Secre-
tary may from time to time reasonably require, and will keep
such records and afford such access thereto as the Secretary
finds necessary to assure the correctness and verification of
such reports;
(H) provide that the State agency will from time to time,
but not less often than annually, review its State plan ap-
proved under this subsection and submit to the Secretary
appropriate modifications thereof;
(I) effective July 1, 1968, (i) provide for assisting each
health care facility in the State to develop a program for
capital expenditures for replacement, modernization, and ex-
pansion which is consistent with an overall State plan devel-
oped in accordance with criteria established by the Secretary
after consultation with the State which will meet the needs of
the State for health care facilities, equipment, and services
without duplication and otherwise in the most efficient and
economical manner, and (ii) provide that the State agency
furnishing such assistance will periodically review the pro-
gram (developed pursuant to clause (i) of each health care
facility in the State and recommend appropriate modification
thereof;
(J) provide for such fiscal control and fund accounting
procedures as may be necessary to assure proper disburse-
ment of and accounting for funds paid to the State under this
subsection; and
(K) contain such additional information and assurances as
the Secretary may find necessary to carry out the purposes of
this subsection.
(3) (A) From the sums appropriated for such purpose for each
fiscal year, the several States shall be entitled to allotments deter-
mined, in accordance with regulations, on the basis of the popula-
tion and the per capita capital income of the respective States;
except that no such allotment to any State for any fiscal year shall
be less than 1 per centum of the sum appropriated for such fiscal
year pursuant to paragraph (1). Any such allotment to a State for
a fiscal year shall remain available for obligation by the State, in
accordance with the provisions of this subsection and the State's
plan approved thereunder, until the close of the succeeding fiscal
year.
(B) The amount of any allotment to a State under subpara-
graph (A) for any fiscal year which the Secretary determines will
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STATUTES AND LEGISLATIVE HISTORY 1137
not be required by the State, during the period for which it is
available, for the purposes for which allotted shall be available for
reallotment by the Secretary from time to time, on such date or
dates as he may fix, to other States with respect to which such a
determination has not been made, in proportion to the original
allotments to such States under subparagraph (A) for such fiscal
year, but with such proportionate amount for any of such other
States being reduced to the extent it exceeds the sum the Secre-
tary estimates such State needs and will be able to use during such
period; and the total of such reductions shall be similarly reallot-
ted among the States whose proportionate amounts were not so
reduced. Any amount so reallotted to a State from funds appropri-
ated pursuant to this subsection for a fiscal year shall be deemed
part of its allotment under subparagraph (A) for such fiscal year.
(4) From each State's allotment for a fiscal year under this
subsection, the State shall from time to time be paid the Federal
share of the expenditures incurred during that year or the suc-
ceeding year pursuant to its State plan approved under this
subsection. Such payments shall be made on the basis of estimates
by the Secretary of the sums the State will need in order to
perform the planning under its approved State plan under this
subsection, but with such adjustments as may be necessary to take
account of previously made underpayments or overpayments. The
"Federal share" for any State for purposes of this subsection shall
be all, or such part as the Secretary may determine, of the cost of
such planning, except that in the case of the allotments for the
fiscal year ending- June 30, 1970, it shall not exceed 75 per centum
of such cost.
Project grants for areawide health planning; authorization of appropriations;
prerequisites for grants; application; contents
(b) (1) (A) The Secretary is authorized, during the period be-
ginning July 1, 1966, and ending June 30, 1973, to make, with the
approval of the State agency administering or supervising the
administration of the State plan approved under subsection (a) of
this section, project grants to any other public or nonprofit private
agency or organization (but with appropriate representation of
the interests of local government where the recipient of the grant
is not a local government or combination thereof or an agency of
such government or combination) to cover not to exceed 75 per
centum of the cost of projects for developing (and from time to
time revising) comprehensive regional, metropolitan area, or
other local area plans for coordination of existing and planned
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1138 LEGAL COMPILATION—GENERAL
health services, including the facilities and persons required for
provision of such services; and including the provision of such
services through home health care except that in the case of pro-
ject grants made in any State prior to July 1, 1968, approval of
such State agency shall be required only if such State has such a
State plan in effect at the time of such grants. No grant may be
made under this subsection after June 30, 1970, to any agency or
organization to develop or revise health plans for an area unless
the Secretary determines that such agency or organization pro-
vides means for appropriate representation of the interests of the
hospitals, other health care facilities, and practicing physicians
serving such area, and the general public. For the purposes of
carrying out this subsection, there are hereby authorized to be
appropriated $5,000,000 for the fiscal year ending June 30, 1967,
$7,500,000 for the fiscal year ending June 30, 1968, $10,000,000 for
the fiscal year ending June 30, 1969, $15,000,000 for the fiscal year
ending June 30, 1970, $20,000,000 for the fiscal year ending June
30, 1971, $30,000,000 for the fiscal year ending June 30, 1972, and
$40,000,000 for the fiscal year ending June 30, 1973.
(B) Project grants may be made by the Secretary under sub-
paragraph (A) to the State agency administering or supervising
the administration of the State plan approved under subsection
(a) of this section with respect to a particular region or area, but
only if (i) no application for such a grant with respect to such
region or area has been filed by any other agency or organization
qualified to receive such a grant, and (ii) such State agency certi-
fies, and the Secretary finds, that ample opportunity has been
afforded to qualified agencies and organizations to file application
for such a grant with respect to such region or area and that it is
improbable that, in the foreseeable future, any agency or organi-
zation which is qualified for such a grant will file application
therefor.
(2) (A) In order to be approved under this subsection, an
application for a grant under this subsection must contain or be
supported by reasonable assurances that there has been or will be
established, in or for the area with respect to which such grant is
sought, an areawide health planning council. The membership of
such council shall include representatives of public, voluntary, and
nonprofit private agencies, institutions, and organizations con-
cerned with health (including representatives of the interests of
local government, of the regional medical program for such area,
and of consumers of health services). A majority of the members
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STATUTES AND LEGISLATIVE HISTORY 1139
of such council shall consist of representatives of consumers of
health services.
(B) In addition, an application for a grant under this subsec-
tion must contain or be supported by reasonable assurances that
the areawide health planning agency has made provision for as-
sisting health care facilities in its area to develop a program for
capital expenditures for replacement, modernization, and expan-
sion which is consistent with an overall State plan which will meet
the needs of the State and the area for health care facilities,
equipment, and services without duplication and otherwise in the
most efficient and economical manner.
Project grants for training, studies, and demonstration; authorization of
appropriations
(c) The Secretary is also authorized, during the period begin-
ning July 1, 1966, and ending June 30,1973, to make grants to any
public or nonprofit private agency, institution, or other organiza-
tion to cover all or any part of the cost of projects for training,
studies, or demonstrations looking toward the development of im-
proved or more effective comprehensive health planning through-
out the Nation. For the purposes of carrying out this subsection,
there are hereby authorized to be appropriated $1,500,000 for the
fiscal year ending June 30, 1967, $2,500,000 for the fiscal year
ending June 30, 1968, $5,000,000 for the fiscal year ending June
30, 1969, $7,500,000 for the fiscal year ending June 30, 1970,
$8,000,000 for the fiscal year ending June 30, 1971, $10,000,000 for
the fiscal year ending June 30, 1972, and $12,000,000 for the fiscal
year ending June 30, 1973.
Grants for comprehensive public health services; authorization of appropria-
tions; State plans; allotments; payments to States; Federal share;
allocation of funds
(d) (1) There are authorized to be appropriated $70,000,000 for
the fiscal year ending June 30, 1968, $90,000,000 for the fiscal year
ending June 30, 1969, $100,000,000 for the fiscal year ending June
30, 1970, $130,000,000 for the fiscal year ending June 30, 1971,
$145,000,000 for the fiscal year ending June 30, 1972, and
$165,000,000 for the fiscal year ending June 30, 1973, to enable the
Secretary to make grants to State health or mental health authori-
ties to assist the States in establishing and maintaining adequate
public health services, including the training of personnel for
State and local health work. The sums so appropriated shall be
used for making payments to States which have submitted, and
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1140 LEGAL COMPILATION—GENERAL
had approved by the Secretary, State plans for provision of public
health services, except that, for any fiscal year ending after June
30, 1968, such portion of such sums as the Secretary may deter-
mine, but not exceeding 1 per centum thereof, shall be available to
the Secretary for evaluation (directly or by grants or contracts)
of the program authorized by this subsection and the amount
available for allotments hereunder shall be reduced accordingly.
(2) In order to be approved under this subsection, a State plan
for provision for public health services must—
(A) provide for administration or supervision of adminis-
tration by the State health authority or, with respect to men-
tal health services, the State mental health authority;
(B) set forth the policies and procedures to be followed in
the expenditure of the funds paid under this subsection;
(C) contain or be supported by assurances satisfactory to
the Secretary that (i) the funds paid to the State under this
subsection will be used to make a significant contribution
toward providing and strengthening public health services in
the various political subdivisions in order to improve the
health of the people; (ii) such funds will be made available to
other public or nonprofit private agencies, institutions, and
organizations, in accordance with criteria which the Secre-
tary determines are designed to secure maximum participa-
tion of local, regional, or metropolitan agencies and groups in
the provision of such services; (iii) such funds will be used to
supplement and, to the extent practical, to increase the level
of funds that would otherwise be made available for the pur-
poses for which the Federal funds are provided and not to
supplant such non-Federal funds; and (iv) the plan is com-
patible with the total health program of the State;
(D) provide for the furnishing of public health services
under the State plan in accordance with such plans as have
been developed pursuant to subsection (a) of this section;
(E) provide that public health services furnished under the
plan will be in accordance with standards prescribed by regu-
lations, including standards as to the scope and quality of
such services;
(F) provide such methods of administration (including
methods relating to the establishment and maintenance of
personnel standards on a merit basis, except that the Secre-
tary shall exercise no authority with respect to the selection,
tenure of office, and compensation of any individual employed
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STATUTES AND LEGISLATIVE HISTORY 1141
in accordance with such methods) as are found by the Secre-
tary to be necessary for the proper and efficient operation of
the plan;
(G) provide that the State health authority or, with re-
spect to mental health services, the State mental health au-
thority, will from time to time, but not less often than an-
nually, review and evaluate its State plan approved under this
subsection and submit to the Secretary appropriate modifica-
tions thereof;
(H) provide that the State health authority or, with re-
spect to mental health services, the State mental health au-
thority, will make such reports, in such form and containing
such information, as the Secretary may from time to time
reasonably require, and will keep such records and afford
such access thereto as the Secretary finds necessary to assure
the correctness and verification of such reports;
(I) provide for such fiscal control and fund accounting
procedures as may be necessary to assure the proper disburse-
ment of and accounting for funds paid to the State under this
subsection;
(J) contain such additional information and assurances as
the Secretary may find necessary to carry out the purposes of
this subsection;
(K) provide for services for the prevention and treatment
of drug abuse and drug dependence, commensurate with the
extent of the problem; and
(L) provide for services for the prevention and treatment
of alcohol abuse and alcoholism, commensurate with the ex-
tent of the problem.
(3) From the sums appropriated to carry out the provisions of
this subsection the several States shall be entitled for each fiscal
year to allotments determined, in accordance with regulations, on
the basis of the population and financial need of the respective
States, except that no State's allotment shall be less for any year
than the total amounts allotted to such State under formula grants
for cancer control, plus other allotments under this section, for the
fiscal year ending June 30, 1967.
(4) (A) From each State's allotment under this subsection for a
fiscal year, the State shall be paid the Federal share of the expend-
itures incurred during such year under its State plan approved
under this subsection. Such payments shall be made from time to
time in advance on the basis of estimates by the Secretary of the
sums the State will expend on the basis of estimates by the Secre-
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1142 LEGAL COMPILATION—GENERAL
tary of the sums the State will expend under the State plan, except
that such adjustments as may be necessary shall be made on ac-
count of previously made underpayments or overpayments under
this subsection.
(B) For the purpose of determining the Federal share for any
State, expenditures by nonprofit private agencies, organizations,
and groups shall, subject to such limitations and conditions as may
be prescribed by regulations, be regarded as expenditures by such
State or a political subdivision thereof.
(5) The "Federal share" for any State for purposes of this
subsection shall be 100 per centum less that percentage which
bears the same ratio to 50 per centum as the per capita income of
such State bears to the per capita income of the United States;
except that in no case shall such percentage be less than 33 Va per
centum or more than 66% per centum, and except that the Fed-
eral share for the Commonwealth of Puerto Rico, Guam, Ameri-
can Samoa, the Trust Territory of the Pacific Islands, and the
Virgin Islands shall be 66% per centum.
(6) The Federal shares shall be determined by the Secretary
between July 1 and September 1 of each year, on the basis of the
average per capita incomes of each of the States and of the United
States for the most recent year for which satisfactory data are
available from the Department of Commerce, and such determina-
tion shall be conclusive for the fiscal year beginning on next July
1. The populations of the several States shall be determined on the
basis of the latest figures for the population of the several States
available from the Department of Commerce.
(7) At least 15 per centum of a State's allotment under this
subsection shall be available only to the State mental health au-
thority for the provision under the State plan of mental health
services. Effective with respect to allotments under this subsection
for fiscal years ending after June 30, 1968, at least 70 per centum
of such amount reserved for mental health services and at least 70
per centum of the remainder of a State's allotment under this
subsection shall be available only for the provision under the State
plan of services in communities of the State.
Project grants for health services and related training; authorization of
appropriations; review of application by appropriate areawide health
planning agency
(e) There are authorized to be appropriated $90,000,000 for the
fiscal year ending June 30, 1968, $95,000,000 for the fiscal year
ending June 30, 1969, $80,000,000 for the fiscal year ending June
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STATUTES AND LEGISLATIVE HISTORY 1143
30, 1970, $109,500,000 for the fiscal year ending June 30, 1971,
$135,000,000 for the fiscal year ending June 30, 1972, and
$157,000,000 for the fiscal year ending June 30, 1973, for grants to
any public or nonprofit private agency, institution, or organization
to cover part of the cost (including equity requirements and amor-
tization of loans on facilities acquired from the Office of Economic
Opportunity or construction in connection with any program or
project transferred from the Office of Economic Opportunity) of
(1) providing services (including related training) to meet health
needs of limited geographic scope or of specialized regional or
national significance, or (2) developing and supporting for an
initial period new programs of health services (including related
training). Any grant made under this subsection may be made
only if the application for such grant has been referred for review
and comment to the appropriate area-wide health planning agency
or agencies (or, if there is no such agency in the area, then to such
other public or nonprofit private agency or organization (if any)
which performs similar functions) and only if the services as-
sisted under such grant will be provided in accordance with such
plans as have been developed pursuant to subsection (a) of this
section.
Repeal
Subsec. (f) of this section repealed (less applicability
to commissioned officers of the Public Health Service)
by Pub.L. 91-648, Title IV, §§ 403, 404, Jan. 5, 1971, 84
Stat. 1925, effective sixty days after Jan. 5, 1971.
Interchange of personnel with States
(f) (1) For the purposes of this subsection, the term "State"
means a State or a political subdivision of a State, or any agency
of either of the foregoing engaged in any activities related to
health or designated or established pursuant to subparagraph (A)
of paragraph (2) of subsection (a) of this section; the term "Sec-
retary" means (except when used in paragraph (3) (D) the Secre-
tary of Health, Education, and Welfare; and the term "Depart-
ment" means the Department of Health, Education, and Welfare.
(2) The Secretary is authorized, through agreements or other-
wise, to arrange for assignment of officers and employees of States
to the Department and assignment to States of officers and em-
ployees in the Department engaged in work related to health, for
work which the Secretary determines will aid the Department in
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1144 LEGAL COMPILATION—GENERAL
more effective discharge of its responsibilities in the field of health
as authorized by law, including cooperation with States and the
provision of technical or other assistance. The period of assign-
ment of any officer or employee under an arrangment shall not
exceed two years.
(3) (A) Officers and employees in the Department assigned to
any State pursuant to this subsection shall be considered, during
such assignment, to be (i) on detail to a regular work assignment
in the Department, or (ii) on leave without pay from their posi-
tions in the Department.
(B) Persons considered to be so detailed shall remain as officers
or employees, as the case may be, in the Department for all pur-
poses, except that the supervision of their duties during the period
of detail may be governed by agreement between the Department
and the State involved.
(C) In the case of persons so assigned and on leave without
pay—
(i) if the rate of compensation (including allowances) for
their employment by the State is less than the rate of compen-
sation (including allowances) they would be receiving had
they continued in their regular assignment in the Dpartment,
they may receive supplemental salary payments from the De-
partment in the amount considered by the Secretary to be
justified, but not at a rate in excess of the difference between
the State rate and the Department rate; and
(ii) they may be granted annual leave and sick leave to the
extent authorized by law, but only in circumstances consid-
ered by the Secretary to justify approval of such leave.
Such officers and employees on leave without pay shall, notwith-
standing any other provision of law, be entitled—
(iii) to continuation of their insurance under the Federal
Employees' Group Life Insurance Act of 1954, and coverage
under the Federal Employees Health Benefits Act of 1959, so
long as the Department continues to collect the employee's
contribution from the officer or employee involved and to
transmit for timely deposit into the funds created under such
Acts the amount of the employee's contributions and the Gov-
ernment's contribution from appropriations of the Depart-
ment; and
(iv) (I) in the case of commissioned officers of the Service,
to have their service during their assignment treated as pro-
vided in section 215(d) of this title for such officers on leave
without pay, or (II) in the case of other officers and employees
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STATUTES AND LEGISLATIVE HISTORY 1145
in the Department, to credit the period of their assignment
under the arrangement under this subsection toward periodic
or longevity step increases and for retention and leave accrual
purposes, and, upon payment into the civil service retirement
and disability fund of the percentage of their State salary,
and of their supplemental salary payments, if any, which
would have been deducted from a like Federal salary for the
period of such assignment and payment by the Secretary into
such fund of the amount which would have been payable by
him during the period of such assignment with respect to a
like Federal salary, to treat (notwithstanding the provisions
of the Independent Offices Appropriation Act, 1959, under the
head "Civil Service Retirement and Disability Fund") their
service during such period, as service within the meaning of
the Civil Service Retirement Act;
except that no officer or employee or his beneficiary may receive
any benefits under the Civil Service Retirement Act, the Federal
Employees Health Benefits Act of 1959, or the Federal Employees'
Group Life Insurance Act of 1954, based on service during an
assignment hereunder for which the officer or employee or (if he
dies without making such election) his beneficiary elects to receive
benefits, under any State retirement or insurance law or program,
which the Civil Service Commission determines to be similar. The
Department shall deposit currently in the funds created under the
Federal Employees' Group Life Insurance Act of 1954, the Federal
Employees Health Benefits Act of 1959, and the civil service re-
tirement and disability fund, respectively, the amount of the Gov-
ernment's contribution under these Acts on account of service
with respect to which employee contributions are collected as
provided in subparagraph (iii) and the amount of the Govern-
ment's contribution under the Civil Service Retirement Act on
account of service with respect to which payments (of the amount
which would have been deducted under that Act) referred to in
subparagraph (iv) are made to such civil service retirement and
disability fund.
(D) Any such officer or employee on leave without pay (other
than a commissioned officer of the Service) who suffers disability
or death as a result of personal injury sustained while in the
performance of his duty during an assignment hereunder, shall be
treated, for the purposes of the Federal Employees' Compensation
Act, as though he were an employee, as denned in such Act, who
had sustained such injury in the performance of duty. When such
person (or his dependents, in case of death) entitled by reason of
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1146 LEGAL COMPILATION—GENERAL
injury or death to benefits under that Act is also entitled to bene-
fits from a State for the same injury or death, he (or his depend-
ents in case of death) shall elect which benefits he will receive.
Such election shall be made within one year after the injury or
death, or such further time as the Secretary of Labor may for
good cause allow, and when made shall be irrevocable unless other-
wise provided by law.
(4) Assignment of any officer or employee in the Department to
a State under this subsection may be made with or without reim-
bursement by the State for the compensation (or supplementary
compensation), travel and transportation expenses (to or from
the place of assignment), and allowances, or any part thereof, of
such officer or employee during the period of assignment, and any
such reimbursement shall be credited to the appropriation utilized
for paying such compensation, travel or transportation expenses,
or allowances.
(5) Appropriations to the Department shall be available, in
accordance with the standardized Government travel regulations
or, with respect to commissioned officers of the Service, the joint
travel regulations, for the expenses of travel of officers and em-
ployees assigned to States under an arrangement under this
subsection, on either a detail or leave-without-pay basis and, in
accordance with applicable law, orders, and regulations, for ex-
penses of transportation of their immediate families and expenses
of transportation of their household goods and personal effects, in
connection with the travel of such officers and employees to the
location of their posts of assignment and their return to their
official stations.
(6) Officers and employees of States who are assigned to the
Department under an arrangement under this subsection may (A)
be given appointments in the Department covering the periods of
such assignments, or (B) be considered to be on detail to the
Department. Appointments of persons so assigned may be made
without regard to the civil service laws. Persons so appointed in
the Department shall be paid at rates of compensation determined
in accordance with the Classification Act of 1949, and shall not be
considered to be officers or employees of the Department for the
purposes of (A) the Civil Service Retirement Act, (B) the Fed-
eral Employees' Group Life Insurance Act of 1954, or (C) unless
their appointments result in the loss of coverage in a group health
benefits plan whose premium has been paid in whole or in part by
a State contribution, the Federal Employees Health Benefits Act
of 1959. State officers and employees who are assigned to the
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STATUTES AND LEGISLATIVE HISTORY 1147
Department without appointment shall not be considered to be
officers or employees of the Department, except as provided in
subsection (7), nor shall they be paid a salary or wage by the
Department during the period of their assignment. The supervi-
sion of the duties of such persons during the assignment may be
governed by agreement between the Secretary and the State in-
volved.
(7) (A) Any State officer or employee who is assigned to the
Department without appointment shall nevertheless be subject to
the provisions of sections 203, 205, 207, 208, and 209 of Title 18.
(B) Any State officer or employee who is given an appointment
while assigned to the Department, or who is assigned to the De-
partment without appointment, under an arrangement under this
subsection, and who suffers disability or death as a result of per-
sonal injury sustained while in the performance of his duty during
such assignment shall be treated, for the purpose of the Federal
Employees' Compensation Act, as though he were an employee, as
defined in such Act, who had sustained such injury in the per-
formance of duty. When such person (or his dependents, in case of
death) entitled by reason of injury or death to benefits under that
Act is also entitled to benefits from a State for the same injury or
death, he (or his dependents, in case of death) shall elect which
benefits he will receive. Such election shall be made within one
year after the injury or death, or such further time as the Secre-
tary of Labor may for good cause allow, and when made shall be
irrevocable unless otherwise provided by law.
(8) The appropriations to the Department shall be available, in
accordance with the standardized Government travel regulations,
during the period of assignment and in the case of travel to and
from their places of assignment or appointment, for the payment
of expenses of travel of persons assigned to, or given appoint-
ments by, the Department under an arrangement under this
subsection.
(9) All arrangements under this subsection for assignment of
officers or employees in the Department to States or for assign-
ment of officers or employees of States to the Department shall be
made in accordance with regulations of the Secretary.
Consultation with State authorities; failure to comply with statute or rules
and regulations; definitions
(g) (1) All regulations and amendments thereto with respect to
grants to States under subsection (a) of this section shall be made
after consultation with a conference of the State health planning
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1148 LEGAL COMPILATION—GENERAL
agencies designated or established pursuant to subparagraph (A)
of paragraph (2) of subsection (a) of this section. All regulations
and amendments thereto with respect to grants to States under
subsection (d) of this section shall be made after consultation
with a conference of State health authorities and, in the case of
regulations and amendments which relate to or in any way affect
grants for services or other activities in the field of mental health,
the State mental health authorities. Insofar as practicable, the
Secretary shall obtain the agreement, prior to the issuance of such
regulations or amendments, of the State authorities or agencies
with whom such consultation is required.
(2) The Secretary, at the request of any recipient of a grant
under this section, may reduce the payments to such recipient by
the fair market value of any equipment or supplies furnished to
such recipient and by the amount of the pay, allowances, traveling
expenses, and any other costs in connection with the detail of an
officer or employee to the recipient when such furnishing or such
detail, as the case may be, is for the convenience of and at the
request of such recipient and for the purpose of carrying out the
State plan or the project with respect to which the grant under
this section is made. The amount by which such payments are so
reduced shall be available for payment of such costs (including the
costs of such equipment and supplies) by the Secretary, but shall,
for purposes of determining the Federal share under subsection
(a) or (d) of this section, be deemed to have been paid to the
State.
(3) Whenever the Secretary, after reasonable notice and oppor-
tunity for hearing to the health authority or, where appropriate,
the mental health authority of a State or a State health planning
agency designated or established pursuant to subparagraph (A)
of paragraph (2) of subsection (a) of this section, finds that, with
respect to money paid to the State out of appropriations under
subsection (a) or (d) of this section, there is a failure to comply
substantially with either—
(A) the applicable provisions of this section;
(B) the State plan submitted under such subsection; or
(C) applicable regulations under this section;
the Secretary shall notify such State health authority, mental
health authority, or health planning agency, as the case may be,
that further payments will not be made to the State from appro-
priations under such subsection (or in his discretion that further
payments will not be made to the State from such appropriations
for activities in which there is such failure), until he is satisfied
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STATUTES AND LEGISLATIVE HISTORY 1149
that there will no longer be such failure. Until he is so satisfied,
the Secretary shall make no payment to such State from appro-
priations under such subsection, or shall limit payment to activi-
ties in which there is no such failure.
(4) For the purposes of this section—
(A) The term "nonprofit" as applied to any private agency,
institution, or organization means one which is a corporation
or association, or is owned and operated by one or more
corporations or associations, no part of the net earnings of
which inures, or may lawfully inure, to the benefit of any
private shareholder or individual; and
(B) The term "State" includes the Commonwealth of
Puerto Rico, Guam, American Samoa, the Trust of Territory
of the Pacific Islands, the Virgin Islands, and the District of
Columbia and the term "United States" means the fifty States
and the District of Columbia.
July 1, 1944, c. 373, Title III, § 314, 58 Stat. 693; July 3, 1946, c.
538, § 9, 60 Stat. 424; June 16, 1948, c. 481, § 5, 62 Stat. 468; 1953
Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat.
631; Aug. 1, 1956, c. 852, § 18, 70 Stat. 910; July 22, 1958, Pub.L.
85-544, § 1, 72 Stat. 400; Oct. 5, 1961, Pub.L. 87-395, § 2(a)-(d),
75 Stat. 824; Sept. 25, 1962, Pub.L. 87-688, § 4(a)-(1), 76 Stat.
587; Aug. 5, 1965, Pub.L. 89-109, § 4, 79 Stat. 436; Nov. 3, 1966,
Pub.L. 89-749, § 3, 80 Stat. 1181; Dec. 5, 1967, Pub.L. 90-174,
§§2(a)-(f), 3(b) (2), 8(a), (b), 12 (d), 81 Stat. 533-535, 540,
541; June 30, 1970, Pub.L. 91-296, Title I, § IH(b), Title IV,
§ 401 (b) (1) (C), (D), 84 Stat. 340, 352; Oct. 27, 1970, Pub.L.
91-513, Title I, § 3(b), 84 Stat. 1241; Oct. 30, 1970, Pub.L.
91-515, Title II, §§ 220, 230, 240, 250, 260(a), (b), (c) (1), 282,
84 Stat. 1304-1306, 1308; and amended Dec. 31, 1970, Pub.L. 91-
616, Title III, § 331, 84 Stat. 1853.
§ 247. Publication of health educational information
From time to time the Secretary shall issue information related
to public health, in the form of publications or otherwise, for the
use of the public, and shall publish weekly reports of health condi-
tions in the United States and other countries and other pertinent
health information for the use of persons and institutions engaged
in work related to the functions of the Service.
July 1, 1944, c. 373, Title III, § 315, 58 Stat. 695, amended Oct. 30,
1970, Pub.L. 91-515, Title II, § 282, 84 Stat. 1308.
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1150 LEGAL COMPILATION—GENERAL
Part G.—Quarantine and Inspection
§ 264. Regulations to control communicable diseases; apprehen-
sion, detention, and release of certain persons from particular
places
(a) The Surgeon General, with the approval of the Secretary, is
authorized to make and enforce such regulations as in his judg-
ment are necessary to prevent the introduction, transmission, or
spread of communicable diseases for foreign countries into the
States, or possessions, or from one State or possession into any
other State or possession. For purposes of carrying out and en-
forcing such regulations, the Surgeon General may provide for
such inspection, fumigation, disinfection, sanitation, pest extermi-
nation, destruction of animals or articles found to be so infected
or contaminated as to be sources of dangerous infection to human
beings, and other measures, as in his judgment may be necessary.
(b) Regulations prescribed under this section shall not provide
for the apprehension, detention, or conditional release of individu-
als except for the purpose of preventing the introduction, trans-
mission, or spread of such communicable diseases as may be speci-
fied from time to time in Executive orders of the President upon
the recommendation of the National Advisory Health Council and
the Surgeon General.
(c) Except as provided in subsection (d) of this section, regula-
tions prescribed under this section, insofar as they provide for the
apprehension, detention, examination, or conditional release of in-
dividuals, shall be applicable only to individuals coming into a
State or possession from a foreign country or a possession.
(d) On recommendation of the National Advisory Health Coun-
cil, regulations prescribed under this section may provide for the
apprehension and examination of any individual reasonably be-
lieved to be infected with a communicable disease in a communica-
ble stage and (1) to be moving or about to move from a State to
another State; or (2) to be a probable source of infection to
individuals who, while infected with such disease in a communica-
ble stage, will be moving from a State to another State. Such
regulations may provide that if upon examination any such indi-
vidual is found to be infected, he may be detained for such time
and in such manner as may be reasonably necessary.
July 1, 1944, c. 373, Title III, § 361, 58 Stat. 703; 1953 Reorg.
Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631;
July 12, 1960, Pub.L. 86-624, § 29 (c), 74 Stat. 419.
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STATUTES AND LEGISLATIVE HISTORY 1151
U2a THE PUBLIC HEALTH SERVICE ACT
July 1, 1944, P.L. 78-410, Title II, §§ 202, 214, Title III,
§§ 301, 304, 305, 306, 311, 312, 313, 314, 315, 361, 58 Stat. 683, 690, 693, 695, 703
COMMISSIONED CORPS
SEC. 203. There shall be in the Service a commissioned Regular
Corps and, for the purpose of securing a reserve for duty in the
Service in time of national emergency, a Reserve Corps. All com-
missioned officers shall be citizens and shall be appointed without
[p. 683]
regard to the civil-service laws and compensated without regard to
the Classification Act of 1923, as amended. Commissioned officers
of the Reserve Corps shall be appointed by the President and
commissioned officers of the Regular Corps shall be appointed by
him by and with the advice and consent of the Senate. Commis-
sioned officers of the Reserve Corps shall at all times be subject to
call to active duty by the Surgeon General, including active duty
for the purpose of training and active duty for the purpose of
determining their fitness for appointment in the Regular Corps.
All active service in the Reserve Corps, as well as service in the
Regular Corps, shall be credited for the purpose of promotion in
the Regular Corps.
[p. 684]
REGULATIONS
SEC. 215. (a) The President shall from time to time prescribe
regulations with respect to the appointment, promotion, retire-
ment, termination of commission, titles, pay, uniforms, allowances
(including increased allowances for foreign service), and disci-
pline of the commissioned corps of the Service.
(b) The Surgeon General, with the approval of the Administra-
tor, unless specifically otherwise provided, shall promulgate all
other regulations necessary to the administration of the Service,
including regulations with respect to travel, transportation of
household goods and effects, and uniforms for employees, and reg-
ulations with respect to the custody, use, and preservation of the
records, papers, and property of the Service.
(c) No regulation relating to qualifications for appointment of
medical officers or employees shall give preference to any school of
medicine.
[p. 690]
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1152 LEGAL COMPILATION—GENERAL
TITLE III—GENERAL POWERS AND DUTIES OF PUBLIC
HEALTH SERVICE
PART A—RESEARCH AND INVESTIGATIONS
IN GENERAL
SEC. 301. The Surgeon General shall conduct in the Service, and
encourage, cooperate with, and render assistance to other appro-
[p. 691]
priate public authorities, scientific institutions, and scientists in
the conduct of, and promote the coordination of, research, investi-
gations, experiments, demonstrations, and studies relating to the
causes, diagnosis, treatment, control, and prevention of physical
and mental diseases and impairments of man, including water
purification, sewage treatment, and pollution of lakes and streams.
In carrying out the foregoing the Surgeon General is authorized
to—
(a) Collect and make available through publications and
other appropriate means, information as to, and the practical
application of, such research and other activities;
(b) Make available research facilities of the Service to
appropriate public authorities, and to health officials and sci-
entists engaged in special study;
(c) Establish and maintain research fellowships in the
Service with such stipends and allowances, including travel-
ing and subsistence expenses, as he may deem necessary to
procure the assistance of the most brilliant and promising
research fellows from the United States and abroad;
(d) Make grants in aid to universities, hospitals, laborato-
ries, and other public or private institutions, and to individu-
als for such research projects as are recommended by the
National Advisory Health Council, or, with respect to cancer,
recommended by the National Advisory Cancer Council;
(e) Secure from time to time and for such periods as he
deems advisable, the assistance and advice of experts, schol-
ars, and consultants from the United States or abroad;
(f) For purposes of study, admit and treat at institutions,
hospitals, and stations of the Service, persons not otherwise
eligible for such treatment; and
(g) Adopt, upon recommendation of the National Advisory
Health Council, or, with respect to cancer, upon recommenda-
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STATUTES AND LEGISLATIVE HISTORY 1153
tion of the National Advisory Cancer Council, such additional
means as he deems necessary or appropriate to carry out the
purposes of this section.
[p. 392]
PART B—FEDERAL-STATE COOPERATION
IN GENERAL
SEC. 311. The Surgeon General is authorized to accept from
State and local authorities any assistance in the enforcement of
quarantine regulations made pursuant to this Act which such au-
thorities may be able and willing to provide. The Surgeon General
shall also assist States and their political subdivisions in the pre-
vention and suppression of communicable diseases, shall cooperate
with and aid State and local authorities in the enforcement of
their quarantine and other health regulations and in carrying out
the purposes specified in section 314, and shall advise the several
States on matters relating to the preservation and improvement of
the public health.
HEALTH CONFERENCES
SEC. 312. A conference of the health authorities of the several
States shall be called annually by the Surgeon General. Whenever
in his opinion the interests of the public health would be promoted
by a conference, the Surgeon General may invite as many of such
health authorities to confer as he deems necessary or proper. Upon
the application of health authorities of five or more States it shall
be the duty of the Surgeon General to call a conference of all State
and Territorial health authorities joining in the request. Each
State represented at any conference shall be entitled to a single
vote.
COLLECTION OF VITAL STATISTICS
SEC. 313. To secure uniformity in the registration of mortality,
morbidity, and vital statistics the Surgeon General shall prepare
and distribute suitable and necessary forms for the collection and
compilation of such statistics which shall be published as a part of
the health reports published by the Surgeon General.
GRANTS AND SERVICES TO STATES
SEC. 314. (a) To enable the Surgeon General to carry out the
purposes of section 301 with respect to developing more effective
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1154 LEGAL COMPILATION—GENERAL
measures for the prevention, treatment, and control of venereal
diseases, and to assist, through grants and as otherwise provided
in this section, States, counties, health districts, and other political
subdivisions of the States in establishing and maintaining ade-
quate measures for the prevention, treatment, and control of such
diseases, including the training of personnel for State and local
health work, and to enable him to prevent and control the spread
of the venereal diseases in interstate traffic, and to meet the cost
of pay, allowances, and traveling expenses of commissioned
officers and other personnel of the Service detailed to assist in
carrying out the purposes of this section with respect to the ve-
nereal diseases, and to administer this section with respect to such
diseases, there is hereby authorized to be appropriated for each
fiscal year a sum sufficient to carry out the purposes of this
subsection.
(b) To enable the Surgeon General to carry out the purposes of
section 301 with respect to developing more effective measures for
the prevention, treatment, and control of tuberculosis, and to as-
sist, through grants and as otherwise provided in this section,
States, counties, health districts, and other political subdivisions
of the States in establishing and maintaining adequate measures
for the prevention, treatment, and control of such disease, includ-
ing the provision of appropriate facilities for care and treatment
[p. 693]
and including the training of personnel for State and local health
work, and to enable him to prevent and control the spread of
tuberculosis in interstate traffic, and to meet the cost of pay,
allowances, and traveling expenses of commissioned officers and
other personnel of the Service detailed to assist in carrying out the
purposes of this section with respect to tuberculosis, and to admin-
ister this section with respect to such disease, there is hereby
authorized to be appropriated for the fiscal year ending June 30,
1945, the sum of $10,000,000, and for each fiscal year thereafter a
sum sufficient to carry out the purposes of this subsection.
(c) To enable the Surgeon General to assist, through grants and
as otherwise provided in this section, States, counties, health dis-
tricts, and other political subdivisions of the States in establishing
and maintaining adequate public health services, including grants
for demonstrations and for the training of personnel for State and
local health work, there is hereby authorized to be appropriated
for each fiscal year a sum not to exceed $20,000,000. Of the sum
appropriated for each fiscal year pursuant to this subsection there
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STATUTES AND LEGISLATIVE HISTORY 1155
shall be available an amount, not to exceed $2,000,000, to enable
the Surgeon General to provide demonstrations and to train per-
sonnel for State and local health work and to meet the cost of pay,
allowances, and traveling expenses of commissioned officers and
other personnel of the Service detailed to assist States in carrying
out the purposes of this subsection.
(d) For each fiscal year, the Surgeon General, with the ap-
proval of the Administrator, shall determine the total sum from
the appropriation under subsection (a), the total sum from the
appropriation under subsection (b), and, within the limits speci-
fied in subsection (c), the total sum from the appropriation under
that subsection which shall be available for allotment among the
several States. He shall, in accordance with regulations, from time
to time make allotments from such sums to the several States on
the basis of (1) the population, (2) the size of the venereal-dis-
ease problem, the size of the tuberculosis problem, and the size of
other special health problems, respectively, and (3) the financial
need of the respective States. Upon making such allotments the
Surgeon General shall notify the Secretary of the Treasury of the
amounts thereof.
(e) The Surgeon General, with the approval of the Administra-
tor, shall from time to time determine the amounts to be paid to
each State from the allotments to such State, and shall certify to
the Secretary of the Treasury, the amounts so determined, reduced
or increased, as the case may be, by the amounts by which he finds
that estimates of required expenditures with respect to any prior
period were greater or less than the actual expenditures for such
period. Upon receipt of such certification, the Secretary of the
Treasury shall, through the Division of Disbursement of the
Treasury Department and prior to audit or settlement by the
General Accounting Office, pay in accordance with such certifica-
tion.
(f) The moneys so paid to any State shall be expended solely in
carrying out the purposes specified in subsection (a), or subsec-
tion (b), or subsection (c) of this section, as the case may be, and
in accordance with plans presented by the health authority of such
State and approved by the Surgeon General.
(g) Money so paid shall be paid upon the condition that there
shall be spent in such State for the same general purpose from
funds of such State and its political subdivisions an amount deter-
mined in accordance with regulations.
[p. 694]
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1156 LEGAL COMPILATION—GENERAL
(h) Whenever the Surgeon General, after reasonable notice and
opportunity for hearing to the health authority of the State, finds
that, with respect to money paid to the State out of appropriations
under subsection (a), or subsection (b), or subsection (c), as the
case may be, there is a failure to comply substantially with
either—
(1) the provisions of this section;
(2) the plan submitted under subsection (f) ; or
(3) the regulations;
the Surgeon General shall notify such State health authority ei-
ther that further payments will not be made to the State from
appropriations under such subsection (or in his discretion that
further payments will not be made to the State from such appro-
priations for activities in which there is such failure), until he is
satisfied that there will no longer be any such failure. Until he is
so satisfied the Surgeon General shall make no further certifica-
tion for payment to such State from appropriations under such
subsection, or shall limit payment to activities in which there is no
such failure.
(i) All regulations and amendments thereto with respect to
grants to States under this section shall be made after consulta-
tion with a conference of the State health authorities. Insofar as
practicable, the Surgeon General shall obtain the agreement of the
State health authorities prior to the issuance of any such regula-
tions or amendments.
(j) Funds appropriated under subsection (a) and funds appro-
priated under subsection (b), in addition to being available for
payments to States, shall also be available for expenditure by the
Surgeon General in otherwise carrying out the respective subsec-
tions, including expenditures for printing and binding of the find-
ings of investigations, and for pay and allowances and traveling
expenses of personnel of the Service engaged in activities author-
ized by the respective subsections.
HEALTH EDUCATION AND INFORMATION
SEC. 315. From time to time the Surgeon General shall issue
information related to public health, in the form of publications or
otherwise, for the use of the public, and shall publish weekly
reports of health conditions in the United States and other coun-
tries and other pertinent health information for the use of persons
and institutions engaged in work related to the functions of the
Service.
[p. 695]
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STATUTES AND LEGISLATIVE HISTORY 1157
PART G—QUARANTINE AND INSPECTION
CONTROL OF COMMUNICABLE DISEASES
SEC. 361. (a) The Surgeon General, with the approval of the
Administrator, is authorized to make and enforce such regulations
as in his judgment are necessary to prevent the introduction,
transmission, or spread of communicable diseases from foreign
countries into the States or possessions, or from one State or
possession into any other State or possession. For purposes of
carrying out and enforcing such regulations, the Surgeon General
may provide for such inspection, fumigation, disinfection, sanita-
tion, pest extermination, destruction of animals or articles found
to be so infected or contaminated as to be sources of dangerous
infection to human beings, and other measures, as in his judgment
may be necessary.
(b) Regulations prescribed under this section shall not provide
for the apprehension, detention, or conditional release of individu-
als except for the purpose of preventing the introduction, trans-
mission, or spread of such communicable diseases as may be speci-
fied from time to time in Executive orders of the President upon
the recommendation of the National Advisory Health Council and
the Surgeon General.
(c) Except as provided in subsection (d), regulations pre-
scribed under this section, insofar as they provide for the appre-
hension, detention, examination, or conditional release of individ-
uals, shall be applicable only to individuals coming into a State or
possession from a foreign country, the Territory of Hawaii, or a
possession.
[p. 703]
(d) On recommendation of the National Advisory Health Coun-
cil, regulations prescribed under this section may provide for the
apprehension and examination of any individual reasonably be-
lieved to be infected with a communicable disease in a communica-
ble stage and (1) to be moving or about to move from a State to
another State; or (2) to be a probable source of infection to
individuals who, while infected with such disease in a communica-
ble stage, will be moving from a State to another State. Such
regulations may provide that if upon examination any such indi-
vidual is found to be infected, he may be detained for such time
and in such manner as may be reasonably necessary.
[p. 704]
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1158 LEGAL COMPILATION—GENERAL
1.12a(l) HOUSE COMMITTEE ON INTERSTATE
AND FOREIGN COMMERCE
H.R. REP. No. 1364, 78th Cong., 2d Sess. (1944)
CONSOLIDATION AND REVISION OF LAWS RELATING TO
THE PUBLIC HEALTH SERVICE
APRIL 20, 1944.—Ordered to be printed
Mr. BULWINKLE, from the Committee on Interstate and Foreign
Commerce, submitted the following
REPORT
[To accompany H.R. 4624]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (H. R. 4624) to consolidate and revise the
laws relating to the Public Health Service, and for other purposes,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.
GENERAL STATEMENT
The bill for the most part is merely a restatement of the laws
relating to the Public Health Service.
It proposes to bring together, in a compact and orderly arrange-
ment, substantially all existing law on the subject except obsolete
provisions; to repeal obsolete laws; to resolve certain ambiguities
in existing law; and to make a number of revisions which operat-
ing experience has shown to be necessary or desirable.
At the present time the laws applicable to the Public Health
Service are the result of the accumulation, over a century and a
half, of a great number of separate enactments. Since 1878, when
the codification accomplished by the Revised Statutes was com-
pleted, there have been many further enactments, often consisting
of isolated provisions in appropriation acts, bearing on the func-
tions of the Public Health Service. Passed at different times, these
provisions of law have generally neither expressly repealed nor
expressly amended their predecessors, but have simply superim-
posed new duties and authorities on those already existing.
Couched in different terms, frequently providing different proce-
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STATUTES AND LEGISLATIVE HISTORY 1159
dures, they have led to serious inconsistencies and ambiguities, as
well as to gaps and duplications in substantive authority, to such
[p. 1]
an extent as to impede the efficient discharge by the Service of its
responsibilities. The number and volume of these enactments is
indicated by the fact that the repealing section occupies over 14
pages of the present bill.
At the time of its consideration last year of the bill which
became the Public Health Service Act of 1943 (Public Law 184,
78th Cong.), the Committee recognized the unsatisfactory state of
the law regarding the Public Health Service. The need for prompt
action on that measure, in order to enable the Service better to
meet its wartime responsibilities, precluded any substantial revi-
sion of existing law in connection with that bill. At the instance of
the committee, however, work was begun upon a comprehensive
bill which would substitute for the existing mass of uncorrelated
legislation a compact and logically arranged law governing the
Public Health Service. In October 1943, H. R. 3379 was introduced
to accomplish this purpose. Hearings on that bill were commenced
on March 1 and concluded on March 14, 1944. As a result of
further study since the introduction of the bill, of suggestions
made at the hearing, and especially of the enactment in November
of the Public Health Service Act of 1943, many changes in the bill
were found to be necessary. The present bill, H. R. 4624, incorpo-
rates these changes.
Enactment of the bill is recommended by the Federal Security
Agency and by the president of the Association of State and Ter-
ritorial Health Officers. No witness at the hearing opposed it, or
urged more than minor amendments.
The bill consists of six titles. The first contains the short title
and definitions, and the second deals with the organization, admin-
istration, and personnel of the Public Health Service. The third
title contains the basic operating authority of the Service, and is
subdivided into seven parts, dealing, respectively, with research
and investigations, Federal-State cooperation, hospitals and medi-
cal examinations and medical care, lepers, narcotic addicts, biolog-
ical products, and quarantine and inspection. The fourth title con-
tinues the existence and functions of the National Cancer Insti-
tute. Title V contains miscellaneous provisions of a permanent
nature, while title VI, which would not be a part of the Public
Health Service Act, contains certain temporary provisions and
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1160 LEGAL COMPILATION—GENERAL
amendments of certain other statutes, as well as the repeal of the
existing provisions of law relating to the Public Health Service.
Large portions of the bill consist merely of reenactment of
existing legislation with minor textual changes proposed in the
interest of clarity and consistency. In some fields, however, the
inadequacies of present law have necessitated a complete rewrit-
ing. In the process of clarification some doubtful authorities would
be confirmed, and in a few instances, where administrative experi-
ence has shown the need for it, wholly new authority would be
conferred.
The bill does not include the subject matter of the so-called
Nurse Training Act (Public Law 74, 78th Cong., as amended),
because that act will by its own terms expire with the termination
of hostilities in the present war. As it is a separate and self-con-
tained enactment there is no need to incorporate it in even the
temporary provisions of the bill.
[P. 2]
PRINCIPAL ADDITIONS TO AND CHANGES IN EXISTING LAW
The section by section explanation of the bill which is appended
indicates the additions to and changes in substantive law which
would be effected by the bill. The most important are these:
The President would be authorized to create special temporary
positions in the Public Health Service for important work in time
of war or emergency (sec. 207 (a)). The classes of persons eligi-
ble for appointment to the regular corps of the Service would be
enlarged to include scientists in such fields as biology and zoology
(sec. 208 (a)). The authority to employ special consultants, now
conferred by the National Cancer Institute Act, would be broad-
ened to apply to all branches of the work of the Service (sec. 208
(c)). Provision is included for allowances to female commissioned
officers on account of their actual dependents (sec. 209 (d)). The
provisions governing retirement of commissioned officers, now
contained in regulations, would be written into law, but without
any major changes (sec. 211). The regulatory authority would be
divided, more clearly and logically than at present, between the
President, on the one hand, and the Surgeon General and the
Federal Security Administrator, on the other (sec. 215).
The authority to make grants, in aid of research work, to public
or private institutions, now contained in the National Cancer Insti-
tute Act, would be expanded to include all fields of research re-
-------
STATUTES AND LEGISLATIVE HISTORY 1161
lated to the public health (sec. 301 (d)). Appropriations for
grants to the States for general public health work would be
authorized in the sum of $20,000,000 annually, of which up to
$2,000,000 would be available, in the discretion of the Surgeon
General, for direct Federal expenditure for purposes related to
such grants (sec. 314 (b)). The present limitation is $11,000,000
for such grants, with an additional authorization for the Federal
expenditures. From the grants to the States, both for general
health work and for venereal-disease control, the bill would permit
allotments and payments to be made from time to time (sec. 314
(c) and (d)). At present allotments are made at the beginning of
the fiscal year, and payments are made quarterly. Provisions relat-
ing to State matching of funds granted and to withdrawal of
funds if they have been misapplied by a State, now contained in
regulations issued with the approval of the State health authori-
ties, would be incorporated in law (sec. 314 (f) and (g)).
Groups entitled to medical care and hospitalization by the Serv-
ice would include enrollees of the United States Maritime Service
and members of the Merchant Marine Cadet Corps (sec. 322 (a)
(6)). At present these persons are cared for by the Service,
through an arrangement under the Economy Act. In cases of
emergency, treatment at Service hospitals of persons not other-
wise eligible would be authorized (sec. 322 (d)). Federal prison-
ers who are narcotic addicts would be entitled to commutation of
sentence for work in prison industries, as are other Federal pris-
oners, but could not be released under this provision before they
are cured (sec. 343 (b)).
Destruction of infected animals or contaminated articles would
be permitted as a part of interstate or foreign quarantine proce-
[p. 3]
dures, where such animals or articles are likely to infect human
beings with a dangerous disease and no disposition other than
destruction can safely be made (sec. 361 (a)). Persons subject to
quarantine detention upon entering the country might be released
on condition of reporting subsequently to health authorities (sec.
361 (b) and (c)). Under regulations recommended by the Na-
tional Advisory Health Council, individuals reasonably believed to
be infected with certain diseases and to be likely to infect others,
might be isolated and examined (sees. 361 (d) and 363). This
authority would be limited to the prevention of interstate spread
of disease, and the protection in time of war of the military forces
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1162 LEGAL COMPILATION—GENERAL
and war workers. Persons so isolated would be entitled to treat-
ment by the Service (sec. 322 (c)). Quarantine laws and regula-
tions could, by regulation, be made applicable to civil air naviga-
tion and civil aircraft (sec. 367). The penalties for violation of
quarantine laws and regulations would be made uniform (sec.
368).
Money collected from some classes of pay patients is now cov-
ered into the Treasury as miscellaneous receipts and that collected
from others is credited to the applicable appropriation. Under the
bill such collections would in all cases be credited to the applicable
appropriation (sec. 503). A penalty would be provided for unau-
thorized wearing of the Public Health Service uniform (sec. 510).
EXPLANATION OF THE BILL BY TITLES AND SECTIONS
[p. 4]
[p. 5]
SECTION 214
Subsection (a) of section 214, which authorizes details of
officers or employees to Federal agencies and prescribes the proce-
dure for paying salaries and allowances of personnel detailed,
modifies existing law (42 U. S. C. 17a) only slightly. In order to
remove any doubt of the propriety of such details, particularly to
the Army, Navy, and Coast Guard, for the purpose of rendering
medical services to personnel, the present statutory limitation of
details to only those agencies which are carrying on a public-
health activity is omitted. The subsection also allows more flexibil-
ity in financial arrangements regarding such details than is now
permitted under the statute cited above, and in this respect is
drawn from the Economy Act (31 U. S. C. 686) with regard to
interdepartmental details of personnel. Officers detailed to the
armed forces would be subject to the laws governing the service to
which detailed. Present law (42 U. S. C. 20) so provides, but only
in time of war.
Subsection (b) relates to the detail of personnel to States and is
substantially the same as 42 U. S. C. 803. It modifies existing law
only to the extent of using slightly broader language in describing
the purposes for which such details may be made and making it
clear.
[p. 13]
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STATUTES AND LEGISLATIVE HISTORY 1163
PART A—RESEARCH AND INVESTIGATIONS
SECTION 301
Part A of this title would consolidate and restate the basic
authority of the Public Health Service in the whole field of re-
search, so as to grant, in clear and unmistakable terms, broad
authority to carry on investigations through its own personnel,
and to cooperate and assist in the investigation by others, of all
problems bearing on the physical and mental health of our people.
Under present law the research authority of the Public Health
Service is no less broad, but is scattered through a number of
statutes. By the act of August 14, 1912 (42 U. S. C. 7) the Service
was authorized to "study and investigate the diseases of man and
conditions influencing the propagation and spread thereof." Sec-
tion 603 of the Social Security Act (42 U. S. C. 803) conferred a
general authority for "investigation of disease and problems of
sanitation." In addition, the Service has specific authorization for
research work in the fields of the venereal diseases (42 U. S. C.
25), cancer (42 U. S. C. 137), and narcotics (21 U. S. C. 196).
Finally, gifts may be accepted "for study, investigation, and re-
search in the fundamental problems of the diseases of man and
matters pertaining thereto" (42 U. S. C. 23b). The first sentence
of section 301 would replace all of these provisions of present law
by a comprehensive grant of authority.
The grant, like present law on the subject, includes certain
matters which lie also within the province of other Federal agen-
cies. With respect to research activities precise jurisdictional limi-
tations are neither practicable nor desirable. Just as wise adminis-
tration must determine in other respects what lines of research
are sufficiently promising to warrant pursuit, so it must be relied
upon to avoid improper duplication of effort.
For historical reasons the bill specifically includes, as matters
for study, water purification, sewage treatment, and the pollution
of lakes and streams. The act of 1912, after the general language
quoted above, contains a specific mention of these items; and
though the general language of section 301 of the bill undoubtedly
embraces them, failure to list them separately might cause misun-
derstanding. By the specification of these subjects it is not in-
tended to limit the scope of the general grant of authority. No
similar occasion is presented for reference to other particular
research functions of the Service, except with respect to narcotics,
dealt with in section 302 of the bill. Under sections 301 and 3,02
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1164 LEGAL COMPILATION—GENERAL
the Service will be enabled to engage in all fields of research in
which it has heretofore engaged or been authorized to engage.
The seven subsections of this section amplify, and in certain
respects make more specific, the general provisions relating to
research. They would grant, in the main, no new authority, al-
though they would generalize the authority to make grants for
research purposes and to secure the services of consultants, now
contained only in the National Cancer Institute Act.
Subsection (a), authorizing the collection and dissemination of
the results of public health research work, is taken from the last
clause of 42 U. S. C. 7. The words "and other appropriate means"
are added, in order to make clear that such informational media as
moving pictures may be used.
[p. 16]
Subsection (b) would permit research facilities of the Service
to be made available to non-Federal public and private investiga-
tors. It is a composite of sections 8 (a) and 23 (e) of 42 U. S. C.
Subsections (c), (d), and (e), relating, respectively, to fellow-
ships, to grants for research work, and to employing consultants,
are drawn from sections 23c, 137a (e), 137d (c), 137d (d), and
137d (e) of 42 U. S. C. As stated above, the authority to make
grants and to employ consultants is broadened, experience under
the National Cancer Institute Act having demonstrated the value
of these procedures.
Subsection (f) would permit the admission to Service hospitals
of patients for study. It is derived from 24 U. S. C. 13, omitting a
numerical limitation.
Subsection (g) authorizes the use of other means to carry out
the purposes of the section, and is like a provision in the National
Cancer Institute Act (42 U. S. C. 137d (f)).
PART B—FEDERAL-STATE COOPERATION
SECTION 311
Section 311 is a general direction to the Surgeon General to
assist and cooperate with State and local authorities in public
health work, and an authorization to accept their assistance in the
enforcement of Federal quarantine regulations. This section clari-
fies and makes more explicit the existing law contained in 42 U. S.
C. 92, 92a, and 803.
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STATUTES AND LEGISLATIVE HISTORY 1165
SECTION 312
Section 312, providing for conferences of State health authori-
ties annually or upon call, is the same in substance as 42 U. S. C.
29. By reason of the definition of "State" in section 2, specific
mention of the District of Columbia and the Territories is no
longer necessary.
SECTION 313
Section 313, dealing with collection of vital statistics, involves
no changes of substance from 42 U. S. C. 30.
SECTION 314
Section 314 combines, with certain changes, the provisions of
title VI of the Social Security Act (42 U. S. C. 801-803) relating
to grants to the States for general public-health purposes and the
provisions for grants under the Venereal Disease Control Act of
1918 (42 U. S. C. 25a-25e). These two related statutes differ in
many respects, in most of them without apparent reason. A few of
the major differences are preserved, but others have been elimi-
nated.
Subsection (a) contains substantially the same authority as 42
U. S. C. 25a, which is the basic authorizing section in the Venereal
[p. 17]
Disease Control Act. Like present law, it contains an unlimited
authorization to appropriate funds for this purpose.
Subsection (b) would authorize appropriations for grants for
general public-health work. In lieu of a present authorization of
$11,000,000 in title VI of the Social Security Act, and a separate
authorization for the pay of personnel to be detailed to assist State
health authorities, this subsection would establish an over-all limi-
tation of $20,000,000, of which up to $2,000,000 would be made
available for such details of personnel. A spokesman for the State
health authorities, as well as the Surgeon General of the Public
Health Service, testified that present appropriations are inade-
quate ; and it is manifest that these grants provide almost effective
means of bringing public-health services to the people of the coun-
try.
One other change in the effect of subsection (b) results from
the inclusion of the Virgin Islands in the definition of "State" in
section 2. At present grants are made to those islands under the
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1166 LEGAL COMPILATION—GENERAL
venereal-disease program but not under title VI of the Social Secu-
rity Act.
The remaining subsections in this section provide the machinery
for handling these grants.
Subsection (c) follows the Venereal Disease Act in directing the
Surgeon General, with the approval of the Federal Security Ad-
ministrator, to determine what part of the appropriations should
be allotted to the States; but in the case of the general public-
health grants under subsection (b) this discretion would be lim-
ited to the $2,000,000 available for direct Federal expenditure.
The basis of allotment among the States is not changed from
present law, and involves consideration of population, the extent
of the health problems, and the financial need of the States. Pres-
ent regulations define financial need in relation to per capita in-
come in the respective States during the preceding 5-year period.
Subsection (c) would permit allotments to the States to be made
"from time to time," instead of annually as under present law.
The change will make for more efficient use of the funds when, for
instance, a State finds in the course of a fiscal year that it cannot
utilize all the money allotted to it. A similar change has been made
in subsection (d) relating to payments to the States.
Subsection (e), requiring the granted funds to be expended for
the stated purposes and in accordance with approved State plans,
involves no change from existing law (42 U. S. C. 25 (c), 802
(d)).
Subsections (f) and (g) are not contained in either of the
present statutes, but have been taken from regulations. They pro-
vide, respectively, for State matching of Federal grants, on a basis
to be determined by regulations; and for withdrawal of grants if,
after hearing, a State is found to have violated the law or regula-
tions or to have misused the money. Subsection (g) is more ex-
plicit than the regulations have been in providing for an adminis-
trative hearing prior to withholding funds, and also in authorizing
a partial as well as a complete withholding. The State health
authorities have approved the regulations in the past and have
offered no objection to incorporation of these provisions into the
statute.
Subsection (h) requires consultation with State health authori-
ties prior to the issuance of regulations, and is substantially the
same as present law (42 U. S. C. 25d, 802c), except that a direc-
tion to obtain agreement from the State authorities whenever
practicable has been added at their instance.
[p. 18]
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STATUTES AND LEGISLATIVE HISTORY 1167
Subsection (i) is an amplification of subsection (a), and picks
up some details of the present law concerning expenditures (42 U.
S. C. 25a) that are omitted from that subsection.
SECTION 315
Section 315 provides for the issuance of information relating to
the public health, "in the form of publications or otherwise," for
the use of the public. It would replace certain parts of two provi-
sions of present law (42 U. S. C. 7, 93), eliminating unnecessary
detail. One omitted provision, relating to reports by consular
officers, is included in section 365 (a) of the bill. The use of the
words "or otherwise" in section 315 should be read with the words
"and other appropriate means" in section 301 (a), referred to
above.
[p. 19]
SECTIONS 361 AND 363
The basic authority to make regulations to prevent the spread
of disease into this country or between the States is contained in
section 361 (a), unencumbered by the confusing limitations found
in the act of February 15, 1893 (42 U. S. C. 92). These limitations
have ceased to serve any useful purpose. So, too, the act of March
27, 1890 (42 U. S. C. 95) authorizing special regulations to control
cholera, yellow fever, smallpox, or plague no longer conforms to
modern quarantine procedure. Section 361 (a) would also ex-
pressly sanction the use of conventional public-health enforcement
methods, heretofore practiced under authority of regulations
based upon implication rather than upon explicit authority (see, e.
g., 42 U. S. C. 87, 94, 105). In addition, it would authorize destruc-
tion of contaminated articles or infected animals which are dan-
gerous to man, in those cases where no other disposition is safely
possible.
A provision of present law (42 U. S. C. 87) for charging vessels
with the cost of fumigation and inspection would be omitted.
These services are rendered only when deemed necessary to pro-
tect the public health, and are in no substantial sense services to
the shipowner.
Subsection (b) would provide that those diseases which are to
be the basis for quarantine of persons must be specified in Execu-
tive orders of the President upon recommendation of the National
Advisory Health Council and the Surgeon General. At present
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1168 LEGAL COMPILATION—GENERAL
such diseases, except for a few specifically listed in statutes (see
42 U. S. C. 95, 105), are prescribed by regulation.
Subsection (c) would continue the authority, long exercised
under the Quarantine Act of 1893 (42 U. S. C. 92), to apprehend,
detain, and examine persons entering the country from abroad.
Subsections (b) and (c) would permit persons who are subject
to detention under the foreign quarantine provisions to be released
on condition; for example, on condition that they report to public-
health authorities for subsequent examination. This authority is
important because the speed of air travel makes it possible for
persons who may have contracted disease in foreign countries to
arrive in the United States before the disease has become detecta-
ble.
Subsection (d) would confer an authority, in a limited group of
cases in which interstate spread of disease is particularly likely, to
isolate infected persons for the purpose of interstate rather than
foreign quarantine. The authority, which would be similar to the
familiar quarantine power of State and local health officers, may
already exist in the Public Health Service under the act of 1893
(see also, 42 U. S. C. 25). The bill would also confer, in section
363, a like authority in time of war, which does not now exist, for
the protection of members of the armed forces and civilian war
workers. Persons detained under either of these provisions would
be entitled to medical treatment, in accordance with section 322
(c).
[p. 24]
SUMMARY OF STATUTES REPEALED
On account of the difficulties involved in literally complying
with the requirements of paragraph 2a of rule XIII of the Rules
of the House of Representatives, and because of the printing ex-
pense which would be involved in attempting to set forth the exact
text of the many provisions of law the repeal of which is proposed
by the bill, the committee is of the opinion that the only practica-
ble method of informing the House regarding these repealed pro-
visions is to include in the report a summary of such provisions.
Such a summary is set forth below. In the left-hand column refer-
ence is made to the basic law being repealed, in the center column
the repealed provision is summarized, and in the right-hand col-
umn there is indicated the section or sections of the bill dealing
with the subject matter of the repealed provision. It will be noted
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STATUTES AND LEGISLATIVE HISTORY
1169
that in the case of obsolete provisions, the substance of which has
not been incorporated in the bill, no section reference appears in
the right-hand column.
Citations of provisions
to be repealed
Subject matter of provisions to be repealed
Sections of H. R.
4624 dealing with
the subject matter
Ch. 66, 20 Stat. 37..
Ch. 202, 20 Stat. 484..
Sec. 4: Surgeon General to notify Federal, State, and local
authorities of information received under sec. 2.
Sec. 5: Officers and agents of State or local quarantine
system authorized to act as officers or agents of national
quarantine system, without Federal compensation. At
ports where there is no such State or local system,
officers or agents of the Service shall perform duties
assigned by the Surgeon General in connection with
national quarantine regulations, but without interference
with any State quarantine laws and regulations.
Sec. 6: Inconsistent statutes repealed.
Sec. 2 Board to obtain information and advise the Govern-
ment, the States, and the District of Columbia on the
preservation and improvement of the public health.
* * * *
* * * *
315.
311.
* * * <
301(a); 315.
[P- 34]
Ch. 541, 26 Stat. 908, 923..
Ch. 114, 27 Stat. 449..
Last sentence of paragraph headed "Office of Supervising 214(a).
Surgeon General, Marine Hospital Service:" Detail
authorized of 2 surgeons and 2 passed assistant surgeons
to the Bureau.
***** * * * a
***** ****
Sec. 3: Supervising Surgeon General of Marine Hospital 361(a); 311.
Service shall cooperate with State and municipal boards
of health to enforce their regulations and Treasury
regulations in regard to spread of disease; Secretary of
the Treasury may issue additional regulations where
local regulations are inadequate.
Sec. 4: Weekly sanitary reports to be made by consuls to 365(a); 315.
Secretary of the Treasury, who shall publish and dis-
tribute the information to designated authorities.
Ch. 174, 28 Stat. 162,179..
*****
Ch. 177, 28 Stat. 764, 780..
Ch. 349, 30 Stat. 976..
Last sentence of paragraph headed "Office of Supervising 214(a).
Surgeon General, Marine Hospital Service:" Supervising
Surgeon General authorized to detail additional medical
officer and 1 hospital steward for duty in the Bureau.
***** ****
Last sentence of paragraph headed "Office of the Super- 214(a).
vising Surgeon General, Marine Hospital Service:" Super-
vising Surgeon General authorized to detail 2 hospital
attendants from port of New York for duty in the labo-
ratory of the Bureau.
Supervising Surgeon General to appoint commission of 301.
medical officers of Service to investigate origin and
prevalence of leprosy.
***** * * * *
-------
1170
LEGAL COMPILATION—GENERAL
Citations of provisions
to be repealed
Subject matter of provisions to be repealed
Sections of H.R.
4624 dealing with
the subject matter
Sec. 84, Ch. 1369, 32 Stat. 691, 711.
Ch. 1370, 32 Stat. 712..
Part of third paragraph: Public health and quarantine laws 361(a).
shall apply to vessels entering a United States port
from the Philippine Islands.
*****
Sec. 7: Surgeon General may call conference of State health 312.
and quarantine officers, in interests of public health,
and shall call an annual conference.
Sec. 8: Surgeon General to distribute forms for collection 313.
of vital statistics after the annual conference.
***** *****
[p. 35]
Ch. 288, 37 Stat. 309_.
Sec. 1: Changes name of Public Health and Marine Hospital 301, 315.
Service to Public Health Service: authorizes investi-
gation of diseases of man and conditions influencing
their propagation and spread, including sanitation,
sewage and the pollution of navigable streams and lakes,
and the publication of information.
[p. 36]
1.12a(2) SENATE COMMITTEE ON EDUCATION AND LABOR
S. REP. No. 1027, 78th Cong., 2d Sess. (1944)
CONSOLIDATION AND REVISION OF LAWS RELATING TO
THE PUBLIC HEALTH SERVICE
JUNE 21 (legislative day, MAY 9), 1944.—Ordered to be printed
Mr. THOMAS of Utah, from the Committee on Education and
Labor, submitted the following
REPORT
[To accompany H. R. 4624]
The Committee on Education and Labor, to whom was referred
the bill (H. R. 4624) to consolidate and revise the laws relating to
the Public Health Service, and for other purposes, having consid-
-------
STATUTES AND LEGISLATIVE HISTORY
1171
ered the same, report favorably thereon with amendments and, as
amended, recommend that the bill do pass.
The bill for the most part is merely a restatement of the laws
relating to the Public Health Service.
It proposes to bring together, in a compact and orderly arrange-
ment, substantially all existing law on the subject except obsolete
provisions; to repeal obsolete laws; to resolve certain ambiguities
in existing law; and to make a number of revisions which opera-
ting experience has shown to be necessary or desirable.
At the present time the laws applicable to the Public Health
Service are the result of the accumulation, over a century and a
half, of a great number of separate enactments. Since 1878, when
the codification accomplished by the Revised Statutes was com-
pleted, there have been many further enactments, often consisting
of isolated provisions in appropriation acts, bearing on the func-
tions of the Public Health Service. Passed at different times, these
provisions of law have generally neither expressly repealed nor
expressly amended their predecessors, but have simply superim-
posed new duties and authorities on those already existing.
Couched in different terms, frequently providing different proce-
dures, they have led to serious inconsistencies and ambiguities, as
well as to gaps and duplications in substantive authority to such
an extent as to impede the efficient discharge by the Service of its
responsibilities. The number and volume of these enactments is
indicated by the fact that the repealing section occupies over 14
pages of the present bill.
[P. 1]
At the time of its consideration last year
of the bill which became the Public Health
Service Act of 1943 (Public Law 184, 78th
Cong.), the committee recognized the unsatis-
factory state of the law regarding the Public
Health Service. The need for prompt action
on that measure, in order to enable the
Service better to meet its wartime responsi-
bilities, precluded any substantial revision of
existing law in connection with that bill. At
the instance of the committee, however, work
was begun upon a comprehensive bill which
would substitute for the existing mass of un-
correlated legislation a compact and logically
arranged law governing the Public Health
Service. In October 1943, H. R. 3379 was
introduced to accomplish this purpose. Hear-
ings on that bill were commenced on March 1
and concluded on March 14, 1944. As a result
of further study, since the introduction of
the bill, of suggestions made at the hearing,
and especially of the enactment in November
of the Public Health Service Act of 1943,
many changes in the bill were found to be
necessary. The present bill (H. R. 4624) in-
corporates these changes.
Enactment of the bill is recommended by
the Federal Security Agency and by the presi-
dent of the Association of State and Terri-
torial Health Officers. No witness at the hear-
ing opposed it, or urged more than minor
amendments.
The bill consists of six titles. The first
contains the short title and definitions, and
the second deals with the organization, ad-
ministration, and personnel of the Public
Health Service. The third title contains the
basic operating authority of the Service, and
is subdivided into seven parts, dealing, respec-
tively, with research and investigations, Fed-
eral-State cooperation, hospitals and medical
examinations and medical care, lepers, narcotic
addicts, biological products, and quarantine
and inspection. The fourth title continues the
-------
1172
LEGAL COMPILATION—GENERAL
existence and functions of the National Cancer
Institute. Title V contains miscellaneous pro-
visions of a permanent nature, while title VI,
which would not be a part of the Public
Health Service Act, contains certain tem-
porary provisions and amendments of certain
other statutes, as well as the repeal of the
existing: provisions of law relating to the
Public Health Service.
Large portions of the bill consist merely oi
reenactment of existing legislation with minor
textual changes proposed in the interest of
clarity and consistency. In some fields, how-
ever, the inadequacies of present law have
necessitated a complete rewriting. In the proc-
ess of clarification some doubtful authorities
would be confirmed, and in a few instances,
where administrative experience has shown
the need for it, wholly new authority would
be conferred.
The bill does not include the subject matter
of the so-called Nurse Training Act (Public
Law 74, 78th Cong., as amended), because
that act will by its own terms expire with
the termination of hostilities in the present
war. As it is a separate and self-contained
enactment there is no need to incorporate
it in even the temporary provisions of the bill.
The report of the Committee on Interstate
and Foreign Commerce of the House of Rep-
resentatives (Kept. No. 1364) contains the full
explanation of the provisions of the bill
as it was reported by that committee, and
also a detailed statement of those changes
in existing law which are effected in the
process of consolidation.
[p. 2]
1.12a(3) CONGRESSIONAL RECORD, VOL. 90 (1944)
1.12a(3)(a) May 22: Amended and passed House, pp. 4794-4797,
4811
CONSOLIDATION AND REVISION OF
LAWS RELATING TO THE PUBLIC
HEALTH SERVICE
Mr. SABATH. Mr. Speaker, I call
up House Resolution 555, for imme-
diate consideration.
The Clerk read as follows:
Resolved, That immediately upon the adop-
tion of this resolution it shall be in order to
move that the House resolve itself into the
Committee of the Whole House on the state
of the Union for the consideration of the bill
(H. R. 4624) to consolidate and revise the laws
relating to the Public Health Service, and for
other purposes. That after general debate,
which shall be confined to the bill and shall
continue not to exceed 2 hours to be equally
divided and controlled by the chairman and
the ranking minority member of the Com-
mittee on Interstate and Foreign Commerce,
the bill shall be read for amendment under
the 5-minute rule. At the conclusion of the
reading of the bill for amendment, the Com-
mittee shall rise and report the same to the
House with such amendments as may have
been adopted, and the previous question shall
be considered as ordered on the bill and
amendments thereto to final passage without
intervening motion except one motion to
recommit.
Mr. SABATH. Mr. Speaker, later I
shall yield 30 minutes to the gentle-
man from Ohio [Mr. BROWN]. I make
this statement now so he will' under-
stand I am not going to try to deprive
him of the usual time.
Mr. Speaker, this rule makes in
order H. R. 4624, a very important
bill coming from the Committee on
Interstate and Foreign Commerce
under the leadership of the gentleman
from North Carolina [Mr. BULWIN-
KLE] . The gentleman from North Car-
olina and members of his subcom-
mittee have given months and months
of study to this restatement of the
laws relating to the Public Health
Service. The full committee has unani-
mously reported this bill.
The bill would bring together in a
compact and orderly arrangement sub-
stantially all existing law on the sub-
ject except obsolete laws and resolve
certain ambiguities in existing law
and make a number of revisions which
operating experience has shown to
be necessary or desirable in connec-
tion with the Public Health Service.
Little or nothing has been done on this
line since 1878.
-------
STATUTES AND LEGISLATIVE HISTORY
1173
I want to congratulate the gentle-
man from North Carolina and his
subcommittee upon the splendid work
they have done. Nearly everybody I
have contacted about the bill states
that it is in the right direction, that
he endorses the bill and urges early
and favorable consideration, and this
I hope it will receive.
The committee has filed a compre-
hensive report. I want to compliment
the gentleman from North Carolina
upon complying so completely with
the Ramseyer rule, for the report
gives full and complete information
as to the various changes and modifi-
cations that are embodied in this bill.
There are a few changes in present
law. Some of the acts were passed
over a hundred years ago and need
modification and clarification. The
committee has done this and has
liberalized many of the provisions.
The bill contains one provision
which I feel it important to call to
your attention and that is the au-
thorization of $20,000,000 as against
the former $11,000,000 as grants to
the States for general public health
work. These grants to various States
will be made in accordance with the
demonstrated needs and the justifica-
tions made. In view of the splendid
work that has been rendered the
country by the Federal Government
in connection with public health, and
especially in view of the great inter-
est of this administration, particularly
the President, in safeguarding the
health of our people, which is near
and dear to the President's heart. I
believe that authorization also should
be approved and the bill should be
passed.
I do not wish to detain the House
because the chairman of the subcom-
mittee and the gentlemen who drafted
the bill are here and ready to make
further and fuller explanation of the
provisions of this rather long—it con-
tains 94 pages—bill. In view of that
I shall yield to the gentleman from
North Carolina [Mr. BULWINKLE]
such of the time remaining to me as
he desires after first yielding 30 min-
utes to the gentleman from Ohio [Mr.
BROWN].
Mr. Speaker, I reserve the re-
mainder of my time.
[p. 4794]
Mr. Speaker, I ask unanimous con-
sent to revise and extend the remarks
I made earlier in the day.
The SPEAKER. Without objection,
it is so ordered.
There was no objection.
Mr. BROWN of Ohio. Mr. Speaker,
as the able chairman of the Com-
mittee on Rules has explained, House
Resolution 555 makes in order the
bill H. R. 4624, to consolidate and
revise the laws relating to the Public
Health Service, and for other pur-
poses.
It also waives certain provisions of
the Ramseyer rule made necessary
because of the fact H. R. 4624 repeals
a number of obsolete sections of the
statutes and because it would be con-
fusing and costly to attempt to print
in the original text of this bill all of
the various sections that have been
repealed.
For some time there has been evi-
dence of a great need for the con-
solidation of the public-health laws
into one act so that there may be one
central authority for the functioning
of the Public Health Service. This bill
has been carefully considered by the
Interstate and Foreign Commerce
Committee of the House and by a sub-
committee thereof and has the unani-
mous support and endorsement of
every agency of the Government in-
terested in public-health matters. It
has also the support and recommen-
dation of all the various State agen-
cies of the United States interested
in public-health affairs.
We had before us the representa-
tives of the various medical and other
public-health associations, as well as
-------
1174
LEGAL COMPILATION—GENERAL
representatives of various Govern-
ment agencies, and I am firmly con-
vinced that both the subcommittee and
the full Committee on Interstate and
Foreign Commerce of the House have
done an excellent piece of work in
preparing this legislation for the con-
sideration of the House.
Mr. JENKINS. Will the gentleman
yield for a question?
Mr. BROWN of Ohio. I yield to the
gentleman from Ohio.
Mr. JENKINS. The gentleman
knows very well that there is a natural
fear among the medical profession of
the Nation in reference to the Gov-
ernment's encroachment upon the
province of the medical men. Has
there been any opposition interposed
anywhere by medical men to this bill?
Mr. BROWN of Ohio. No; with the
exception that the committee member-
ship just a day or so ago received a
communication from a representative
of the dental association. However,
that matter has been or will easily
be cleared up because of the fact that
while a change has been made in one
section of the law the bill also makes
a change in another section and that
leaves dentists in exactly the same
position they were prior to the pas-
sage of this act, or perhaps even in
a better position.
Mr. JENKINS. I have had some
little experience with the Public
Health Service, especially in connec-
tion with floods and certain calamities.
I have found that it has been a great
organization, it has done a great work,
but also everyone owes an allegiance
to the medical profession of this
country, and we should not impose
upon them any unnecessary restric-
tions that will invade their profession
or rights.
Mr. BROWN of Ohio. Let me say
to the gentleman from Ohio that in
considering this legislation both the
officials of the Public Health Service
and the membership of the subcom-
mittee, and I happen to be a member
of that subcommittee as well as a
member of the Rules Committee, were
very careful to make certain that we
in no way invaded the field of private
medical practice. We did, in this meas-
ure, content ourselves only with a
service as far as public health is con-
cerned that can be called a real pub-
lic service. In other words, we have
not extended the activities or the
range of authority of the Public
Health Service further than now per-
tains except in one or two instances
where there have been new develop-
ments. For instance, we have given
them authority over some new alka-
loids and some new drugs that have
been discovered that are habit-form-
ing, and which were not mentioned in
the old law. We have given them some
additional authority, for instance, in
employing consultants who are not
citizens of this country. Those consul-
tants are being employed and used in
foreign ports and in foreign stations
where, because of the war, the Public
Health Service must today function;
and we have given them, by that par-
ticular section, the right and authority
to go anywhere in the world and get
as aids, or assistants and consultants,
anyone who may have special knowl-
edge of some tropical disease, let us
say, that we in America have had no
experience with whatsoever; yet, in
order to save American lives it is
necessary that we get the benefit of
the knowledge that these men in for-
eign countries may have.
Mr. DONDERO. Will the gentleman
yield?
Mr. BROWN of Ohio. I yield to the
gentleman from Michigan.
Mr. DONDERO. Does this come
with a unanimous report to the
House?
Mr. BROWN of Ohio. It is a unani-
mous report.
Mr. DONDERO. Was the medical
profession called in and consulted in
the preparation of this legislation?
Mr. BROWN of Ohio. The medical
-------
STATUTES AND LEGISLATIVE HISTORY
1175
profession and different representa-
tives and groups appeared or had an
opportunity to be heard. I want to
be entirely fair in reference to this.
As I mentioned a moment ago, the
Dental Association was invited and,
as I understand it, did not appear,
but later wrote a letter pointing out
that in one section of the redrafted
bill, or the clean bill, as we call it,
the dental profession as a profession
had been deleted or stricken out of
the law. However, we pointed out to
that association that in another sec-
tion the same authority that they now
have and the same rights that they
now enjoy have been protected.
Mr. ROBSION of Kentucky. Will
the gentleman yield?
Mr. BROWN of Ohio. I yield to the
gentleman from Kentucky.
Mr. ROBSION of Kentucky. Did
the committee have representatives of
the American Medical Association be-
fore it?
Mr. BROWN of Ohio. Yes; we ex-
tended an opportunity to be heard to
the representatives of all the different
branches of medicine.
Mr. ROBSION of Kentucky. They
approved it?
Mr. BROWN of Ohio. Yes; as I
understand it, they did. May I ask
the chairman of the subcommittee to
answer that?
Mr. BULWINKLE. The chairman
of the legislative committee of the
Public Health Association appeared.
There was no opposition at all from
anyone in the medical profession.
Mr. ROBSION of Kentucky. Did
anyone representing the American
Medical Association appear?
Mr. BULWINKLE. They had notice
of it. May I say to the gentleman from
Kentucky that this is not a curative
bill. The Public Health Service is
organized to prevent the spread of
contagious and other diseases in the
United States. It does not, as the
gentleman from Ohio said, take one
thing away from the medical profes-
sion which it now has.
Mr. BROWN of Ohio. This is not
for the regulation of the private prac-
tice of medicine in any way. As I un-
derstood it, Dr. Riley and these other
gentlemen who appeared are officers of
the American Medical Association,
and they are satisfied.
Mr. ROBSION of Kentucky. The
bill does not infringe on private
practice?
Mr. BULWINKLE. Not in the
least.
Mr. ROBSION of Kentucky. How
about the hospitals? Is there any
report on that? Did anybody appear?
Mr. BULWINKLE. Yes.
Mr. ROBISON of Kentucky. Did
anyone representing the hospitals ex-
press any opposition?
Mr. BULWINKLE. No; not in the
least.
Mr. JENSEN. Will the gentleman
yield?
Mr. BROWN of Ohio. I yield to the
gentleman from Iowa.
Mr. JENSEN. Does this bill seek
to change any present laws relative
to the veterans or their wives or de-
pendents?
Mr. BROWN of Ohio. Oh, no, it
does not touch veterans' legislation or
veterans' hospitals except that there
is a provision, and I wish to be cor-
rected if I am wrong, that in foreign
ports, where there are hospital facili-
ties of the Public Health Service, a
veteran is entitled to emergency serv-
ice at those hospitals where he can-
not get to a veterans' hospital quickly.
Mr. JENSEN. The gentleman
thinks that is the only place?
Mr. BROWN of Ohio. Yes; there
is no infringement on the adminis-
tration of veterans law in any way.
Let me say there is only an added
help provided for veterans at any
time they call on the Public Health
Service.
Mr. SMITH of Ohio. Will the gen-
tleman yield?
-------
1176
LEGAL COMPILATION—GENERAL
Mr. BROWN of Ohio. I yield to the
gentleman from Ohio.
Mr. SMITH of Ohio. Referring to
page 28 and the grants and services
to States. I read section 314 very
carefully and it seems to me this is
[p. 4795]
a rather heavy encroachment by the
Federal Government up to the States.
Mr. BROWN of Ohio. Of course,
that is simply a reenactment of the
present law.
Mr. SMITH of Ohio. I understand
the present law. There is, for example,
the control of venereal disease. Is that
a State function or a Federal func-
tion? I think it is a State function.
Mr. BROWN of Ohio. I can agree
with the gentleman very quickly that
it is a State function, primarily; but
this does not attempt, if the gentleman
will read the section carefully, to con-
trol venereal disease within a State.
It is only for the purpose of develop-
ing more effective measures for the
prevention, treatment, and control of
venereal disease, and not to carry
out the actual cure thereof. It is only
to experiment, conduct research, fur-
nish information, and give help as
may be called for by the States.
Mr. SMITH of Ohio. We all know
what it means when the Federal Gov-
ernment says those things. It means
the Federal Government is going in
and take charge.
Mr. BROWN of Ohio. Let me say
that all of the State health depart-
ments and the various local health
officials of the different States of the
Union have a different viewpoint than
that expressed by the gentleman from
Ohio, Dr. SMITH, because each and
every one of them has approved this
bill. They call upon the Federal
Health Service only in the case of epi-
demics, and for information on re-
search and experimentation conducted
in the central hospitals or facilities
of the Public Health Service.
Mr. SMITH of Ohio. Would not
the gentleman expect those health of-
ficers to approve this measure? But
what I want to know is where the
individual physician or the individual
citizen stands on this proposition.
Mr. BROWN of Ohio. Of course,
I cannot answer for what the gentle-
man may have in his mind. Let me
say again that this provision is sim-
ply an extension of the present law.
We have codified only this particular
provision of the present law on that
subject, and your discourse goes back
to whether or not the original law
should have been enacted, not as to
whether it should be recodified. In
other words, if this bill is defeated,
the law on this particular subject
will remain just the same as it is
today, or, if it is passed, the present
law will not be changed.
Mr. SMITH of Ohio. But there
might be this difference. In this in-
stance certainly more funds are going
to be granted.
Mr. BROWN of Ohio. Slightly more
because of the feeling that there will
be a greater health problem during
the next few years as we reconvert
millions of men from the Army and
the Navy back to civilian life; many
of them coming back with malaria, or
other tropical disease so there will be
more help needed by the local health
boards and communities than in the
past. Federal expenditures are still
under the control of the Congress,
and appropriations must be made by
the Congress for any amounts that
are used for Public Health Service
purposes.
Mr. SMITH of Ohio. The one point
I would like to make is that it costs
the State much less money to control
venereal diseases than it does the
Federal Government.
Mr. BROWN of Ohio. The Federal
Government does not attempt to con-
trol venereal diseases, except as it
makes ready for use of the private
physician, and of the State and local
-------
STATUTES AND LEGISLATIVE HISTORY
1177
health authorities, such information
as it may obtain through its research
and other work in the field of vene-
real diseases.
Mr. SMITH of Ohio. This says, in
so many words, to enable the Surgeon
General to carry out the purposes of
section 301 with respect to developing
more effective measures for the pre-
vention, treatment, and control of
venereal diseases.
Mr. BROWN of Ohio. With respect
to developing more effective measures
for the prevention thereof, certainly.
They find some new way to control
the disease, and they pass that in-
formation on.
Mr. SMITH of Ohio. Will the gen-
tleman admit that there is now a
tendency on the part of the Federal
Government to encroach upon the
States?
Mr. BROWN of Ohio. Certainly;
and there has been no man in this
House who has been more zealous in
protecting the rights of the States
and the local communities against en-
croachment from the Federal Gov-
ernment than I, with the possible
exception of the gentleman who ad-
dresses me, Dr. SMITH of Ohio.
Mr. AUGUST H. ANDRESEN.
Mr. Speaker, will the gentleman yield?
Mr. BROWN of Ohio. I yield to the
gentleman from Minnesota.
Mr. AUGUST H. ANDRESEN.
As I understand it, in this bill you
have written existing law. I would
like to ask the gentleman this ques-
tion: Is there anything in this bill
that might authorize the socialization
of medicine?
Mr. BROWN of Ohio. No; just di-
rectly the opposite, in my opinion.
Mr. SABATH. Mr. Speaker, I yield
to the gentleman from North Caro-
lina [Mr. BULWINKLE] 10 minutes.
Mr. BULWINKLE. Mr. Speaker,
as was so well stated by the gentle-
man from Ohio and the chairman of
the Committee on Rules, this is a bill
to revise and consolidate the public-
health laws. The public-health laws
date back originally to the old mari-
time laws, which provided maritime
hospitalization in 1792. There really
has not been a consolidation or codi-
fication of the public-health laws since
1875. A great many laws have been
enacted by amendments to appropria-
tion bills.
Several years ago a subcommittee
of the Committee on Interstate and
Foreign Commerce introduced a bill,
but we found that in some particulars
it merely overlapped what was already
in existing law. In order to have the
law before us, and in order to do
away with and repeal all these obso-
lete laws, the committee then started
to work, with the aid of the legisla-
tive counsel of the House and of the
Federal Security Administration, to
revise all the laws relating to public
health.
I may say that there are no great
changes in existing law. The only
change that has been made, as I said,
is the repeal of the obsolete sections
and rationalizing inconsistent provi-
sions, resolving doubts and ambi-
guities in existing law and making
certain revisions that are found neces-
sary by long administrative exper-
ience.
So I say that the entire bill was
carefully gone over. I have never seen
any men more conscientious than the
gentleman from Ohio [Mr. BROWN],
the gentleman from Tennessee [Mr.
REECE], the gentleman from Penn-
sylvania [Mr. SCOTT], the gentleman
from Tennessee [Mr. PRIEST] , and the
gentleman from Pennsylvania [Mr.
MYERS], who were present practically
all the time at the hearings when we
went over this matter.
The first bill was introduced in Oc-
tober. When the hearings were held,
notice was sent to everyone. I am say-
ing this because I want to call to your
attention that in two particulars the
committee will introduce committee
amendments, one of which I feel—
-------
1178
LEGAL COMPILATION—GENERAL
and I know the gentleman from Ohio
feels the same way—should be en-
acted. We had practically stated that
one amendment would be put in the
bill, as applied to the shipping on the
Great Lakes, and that is the word
"primarily."
The other is on page 14, line 12, to
insert the word "pharmacist" after
the words "sanitary engineering offi-
cers."
If there is any question that any
Member wishes to ask, if I am able
to do so, I will be glad to answer.
Mr. KEEFE. Mr. Speaker, will the
gentleman yield?
Mr. BULWINKLE. I yield to the
gentleman from Wisconsin.
Mr. KEEFE. Will the gentleman
explain those two amendments again?
Mr. BULWINKLE. The first
amendment that will be offered is on
page 2, line 19, in the definition of
"seamen." The definition of "seamen"
as now construed is with the word
"primarily" omitted. After some hear-
ings we decided or thought we had
better place that in there, on account
of the fact that in some instances
there are men on board vessels who
are not seamen, who would come un-
der the provisions of this act, and
who only had a temporary position
on board. The shipping people on the
Great Lakes said that this would af-
fect them. Mr. BROWN and I prac-
tically told them we would agree to
take it out, but we overlooked it, and
for that reason I am asking, when the
time comes, that we be permitted to
do that. There was no objection at all
at the time of the hearings. The State
health authorities were all present,
and the Members of the Congress
spoke to me, as did the gentleman
from Wisconsin, about amendments
which we saw fit to place in the bill.
The second amendment was the
pharmacist field on page 14, line 11,
"commissioned officers other than med-
ical, dental, and sanitary engineering
officers shall be promoted in accord-
ance with regulations of the Presi-
dent." We felt that they should be
classed with these others. It does not
make any material difference, and so
[p. 4796]
we agreed to put them in.
Mr. KEEFE. As I understand, the
second amendment relates to the in-
clusion of a pharmacist.
Mr. BULWINKLE. Yes.
Mr. KEEFE. In the provision to be
found in paragraph 4, on page 14.
Mr. BULWINKLE. Yes.
[p. 4797]
Mr. BULWINKLE. Mr. Speaker,
I sent two amendments to the Clerk's
desk.
The Clerk read as follows:
Amendment offered by Mr. BULWINKLE:
On page 2, line 19, strike out the word "pri-
marily."
The amendment was agreed to.
The Clerk read as follows:
Amendment offered by Mr. BULWINKLE:
Page 14, line 12, strike out the words "sani-
tary engineering" and insert "sanitary engi-
neering and pharmacist."
The amendment was agreed to.
The bill was ordered to be en-
grossed and read a third time, was
read the third time, and passed, and
a motion to reconsider was laid on the
table.
[p. 4811]
-------
STATUTES AND LEGISLATIVE HISTORY
1179
1.12a(3)(b) June 22: Debated, amended, and passed Senate, pp.
6486-6487, 6498-6500
REVISION OF LAWS RELATING
TO PUBLIC HEALTH SERVICE
The bill (H. R. 4624) to consolidate
and revise the laws relating to the
Public Health Service, and for other
purposes, was announced as next in
order.
Mr. REVERCOMB. I ask that the
bill be passed over.
The ACTING PRESIDENT pro
tempore. The bill will be passed over.
Mr. THOMAS of Utah. Mr. Presi-
dent, I trust the Senator from West
Virginia will not ask that the bill go
over. I should like to make an ex-
planation of it, if he wishes. It is a
bill which is needed about as badly as
any measure we can think of. It is a
bill which has been worked upon for
at least 2 years by a committee of
the House of Representatives, and
it passed the House of Representa-
tives unanimously. It was reported
from the Senate Committee on Edu-
cation and Labor unanimously. It does
not in any way, with the exception of
the provision with respect to tuber-
culosis, add to the expenses of the
Government. The tuberculosis section
was adopted by the House of Repre-
sentatives unanimously, and has been
reported favorably by the Committee
on Education and Labor of the Sen-
ate. There was not a single person
who appeared against it in the hear-
ings held in the House of Represen-
tatives or the hearing held in the
Senate.
Mr. REVERCOMB. Mr. President,
will the Senator yield?
Mr. THOMAS of Utah. I am glad
to yield.
Mr. REVERCOMB. I may say that
I do not know what the bill contains.
There is no print of it on my desk. I
have not been able to find it. My docket
and my book of printed bills ends
with Calendar No. 1043, The title of
the bill which is being discussed by
the able Senator from Utah is "An
act to consolidate and revise the laws
relating to the Public Health Service."
I certainly should want to have an
opportunity to see the bill and to
learn what is in it before we pass it
on the Consent Calendar.
Mr. THOMAS of Utah. Of course,
Mr. President, no one can object to
what the Senator from West Virginia
has just stated. However, the bill has
been printed, it has been available,
it has been studied, but the new print-
ing, with the amendments which were
added, has not been sent to the
Printing Office for some reason. I do
not know what the reason is.
If the Senator will look at the re-
port, he will find that every change is
noted by page and by line in the most
minute detail. That was done, because
there has been the closest cooperation
between the Senate committee and the
House committee, and every amend-
ment submitted to our committee re-
ceived the informal approval of the
House committee before we considered
it and before it was put into the bill.
This bill is a codification of laws
which have been in existence since
Defore the Constitution of the United
States, as public-health legislation
started in the Continental Congress.
We now find ourselves in the war
mergency, and discover conditions
as they are, and realize, for example,
that there has not been adequate in-
spection of a single boat during war-
;ime, that our boys are coming home
'rom all parts of the world, and we
can appreciate that the risks to our
country are so great that to delay
action at this time is deemed hazard-
ous by the public-health authorities.
The bill was given careful con-
sideration by both the House com-
mittee and the Senate committee. It
-------
1180
LEGAL COMPILATION—GENERAL
was carefully studied. It does not
add to the law of the land, nor does
it take away from the law of the
land, but merely brings the law up to
date, in such a way that one of the
most vital and most necessary agen-
cies of our Government may operate
unhampered, at a time when our
country is really imperiled. The tu-
berculosis provision alone shows that,
and there are coming back to our
country from all parts of the world
men afflicted with malaria and other
sicknesses.
Mr. REVERCOMB. Will the Sena-
tor yield further?
Mr. THOMAS of Utah. I yield.
Mr. REVERCOMB. I am not
doubting for a moment that the able
Senator has the views he expresses
about the bill. I do not know what is
in the bill. The print is not here. I
do not think any other Senators know
what is contained in the bill, and I
do not wish to agree to the passage
of a measure without adequate con-
sideration by the Senate, and when
we do not even have a print before
us.
Let me say to the Senator that
there is no one in this Chamber more
interested than I in looking after the
public health and the welfare of the
citizens of this country, and par-
ticularly those engaged in the armed
service, but I must ask that the bill
go over during the consideration of
measures on the Consent Calendar,
until I at least have an opportunity
to discuss it with the Senator from
Utah. That is my feeling about this
subject, as it would be about any other
subject of legislation.
Mr. THOMAS of Utah. I am won-
dering whether the Senator from
West Virginia would be willing to
have the bill taken up tomorrow under
special order, or would consent to
some arrangement. If I were not so
sure that the Senator from West
Virginia could find no objection, and
will find no objection, I would not
press it, but never has a bill been
more carefully examined than has
this bill by the Committee on Inter-
state and Foreign Commerce of the
House of Representatives. I know of
that study because it has been going
on for over 2 years, and I introduced
a companion bill, and the Senate
committee has been studying it at the
same time.
Mr REVERCOMB. If the Senator
will yield further, I wish to point out,
from the report, that we are dealing
with the codification of laws applicable
to the Public Health Service which are
the result of the accumulation over a
century and a half of a great number
of enactments. However meritorious
the bill may be from the viewpoint
of the Senator from Utah, for whose
opinion I have great respect, I care
not how meritorious it may be from
the viewpoint of those who are man-
aging the bill on the floor, we should
have opportunity to consider it, and
we should not let it pass without con-
sideration. That is why at this time
I ask that the bill go over. I wish to
discuss it with the Senator from Utah
or with someone else interested in
the bill.
Mr. GEORGE. Mr. President, this
bill is voluminous, as a document.
When the bill passed the House and
came to the Senate, there was some
question of the committee jurisdic-
tion, and perhaps the fact that a simi-
lar or identical bill had been intro-
duced by the distinguished Senator
from Utah was overlooked. At any
rate, some question arose with the
Presiding Officer of the Senate as to
whether the bill should go to the
Finance Committee, because it dealt
with customs, or should go to the
Committee on Commerce, because it
was considered by the Committee on
Interstate and Foreign Commerce in
the House.
I looked into the bill, made some
examination of it, and gave it some
scrutiny to see whether it was a
-------
STATUTES AND LEGISLATIVE HISTORY
1181
mere codification or clarification, and
was intended to be that only, without
adding new laws. I reached the con-
clusion that it was, just as the Sena-
tor from Utah has stated. I suggested
to the Presiding Officer that the bill
be referred to the Committee on Com-
merce, thinking that the committee
[p. 6486]
was the only other committee which
perhaps would have jurisdiction.
Subsequently, on the motion of the
Committee on Commerce, the bill was
referred to the Committee on Educa-
tion and Labor, and the chairman of
the Committee on Commerce brought
the matter to my attention. So I have
looked into the bill from time to time,
and I believe the Senator from West
Virginia might very well satisfy him-
self by tomorrow of the contents of
the bill, and might conclude that it is
a highly desirable piece of legislation.
I hope very much the Senator can do
so by tomorrow. I am sure the Sena-
tor from Utah will be very glad to
enter into conference with the Sena-
tor from West Virginia.
Mr. HILL, Mr. President, I concur
in what the Senator from Georgia
has stated. I happen to be the chair-
man of the subcommittee of the Com-
mittee on Education and Labor which
held hearings on the bill. What the
Senator from Georgia has said is
absolutely correct. This is a codifica-
tion of existing law, without new
matter, except the tuberculosis pro-
vision to which the Senator from Utah
has called attention. The provision
with reference to tuberculosis has
already passed the House of Repre-
sentatives in a separate bill.
As the Senator from Utah has said,
the bill has been most carefully con-
sidered. The subcommittee of the
House Committee on Interstate and
Foreign Commerce, of which Repre-
sentative BULWINKLE is chairman,
gave the bill long and careful con-
sideration, and the minority was ably
represented by the distinguished Rep-
resentative from Ohio, Mr. BROWN.
I know that both Representative
BROWN and Representative BUL-
WINKLE have worked for a long time
on this bill. The subcommittee of the
Senate committee, in giving it con-
sideration, have kept in touch with
both Representative BULWINKLE and
Representative BROWN. The subcom-
mittee of the House committee re-
ported the bill unanimously to the full
committee, the full committee reported
the bill unanimously to the House,
and the House passed the bill by
unanimous vote.
Mr. REED. Mr. President, a par-
liamentary inquiry.
The PRESIDING OFFICER. The
Senator will state it.
Mr. REED. Are we proceeding
under the 5-minute rule?
Mr. HILL. Mr. President, I would
not expect my friend the Senator
from Kansas to ask that question.
There might be some Senators whom
I could expect to ask such a question,
but not my friend the Senator from
Kansas. If he will withhold his in-
quiry for a moment, I wish to urge
the Senator from West Virginia to
give the bill his prompt consideration,
and let us see if we cannot pass the
bill so it will become law before the
Senate recesses. There are many im-
pelling reasons why the measure
should be passed quickly.
Mr. REVERCOMB. Mr. President,
I shall insist that the bill go over,
but at the same time I will give it my
consideration, and will discuss it with
the Senator from Utah or any other
Senators interested in the passage of
the proposed legislation, today if
possible.
Mr. THOMAS of Utah. Mr. Presi-
dent, I shall request that the bill be
considered tomorrow. I give notice
that I will call it up tomorrow, be-
cause it is a matter on which action
-------
1182
LEGAL COMPILATION—GENERAL
is necessary immediately, and I feel
we are justified in requesting con-
sideration of the measure tomorrow.
*****
[p. 6487]
CONSOLIDATION AND
REVISION OF LAWS
RELATING TO THE
PUBLIC HEALTH SERVICE
Mr. THOMAS of Utah. Mr. Presi-
dent, when the calendar was called
House bill 4624, Calendar No. 1045,
was reached. That is the last bill on
the calendar. Objection was made to
consideration of the bill at the time
by the Senator from West Virginia
[Mr. REVERCOMB]. We have discussed
the matter with the Senator from
West Virginia and other Senators,
and an agreement has been reached
that if one of the Senate committee
amendments shall be disagreed to
there will be no other objections
raised to the bill.
Mr. President, since the bill is one
which will need House approval, and
since we have worked in harmony with
the House committee with respect to
it, I ask unanimous consent for im-
mediate consideration of the bill.
The PRESIDING OFFICER. Is
there objection to the present con-
sideration of the bill?
There being no objection, the Sen-
ate proceeded to consider the bill
(H. R. 4624) to consolidate and revise
the laws relating to the Public Health
[p. 6498]
Service, and for other purposes, which
had been reported from the Com-
mittee on Education and Labor with
amendments.
Mr. REVERCOMB. Mr. President,
I understand it is agreed that the
committee amendment on page 64 of
the bill, section 371, under the head-
ing "Training of Nurses," shall be
disagreed to.
Mr. THOMAS of Utah. That is
orrect, Mr. President.
The PRESIDING OFFICER. The
lerk will state the amendments of
the committee.
The first amendment of the Com-
mittee on Education and Labor was,
in section 210, on page 14, line 13,
after the word "promotion," to strike
out "after not more than 2 years of
service" and insert "in accordance
with regulations of the President."
The amendment was agreed to.
The next amendment was, in sec-
tion 215, on page 22, line 12, after
the word "effects", to strike out "allot-
ments from their pay by commissioned
officers."
The amendment was agreed to.
The next amendment was in sec-
tion 314, on page 30, after line 4, to
insert the following paragraph:
(b) To enable the Surgeon General to carry
out the purposes of section 301 with respect
to developing more effective measures for
the prevention, treatment, and control of
tuberculosis, and to assist, through grants
and as otherwise provided in this section,
States, counties, health districts, and other
political subdivisions of the States in estab-
lishing and maintaining adequate measures
for the prevention, treatment, and control
of such disease, including the provision of
appropriate facilities for care and treatment
and including the training of personnel for
State and local health work, and to enable
him to prevent and control the spread of
tuberculosis in interstate traffic, and to meet
the cost of pay, allowances, and traveling
expenses of commissioned officers and other
personnel of the Service detailed to assist in
carrying out the purpose of this section with
respect to tuberculosis, and to administer this
section with respect to such disease, there
is hereby authorized to be appropriated for
the fiscal year ending June 30, 1945, the sum
of $10,000,000, and for each fiscal year there-
after a sum sufficient to carry out the purposes
of this subsection.
The amendment was agreed to.
The next amendment was, on the
same page, in line 25, to change the
paragraph designation from "(b)"
to "(c)."
The amendment was agreed to.
-------
STATUTES AND LEGISLATIVE HISTORY
1183
The next amendment was, on page
31, line 16, to change the paragraph
designation from "(c)" to "(d)"; in
line 18, after "subsection (a)", to
strike out the word "and"; in line 19,
after "subsection (b)", to insert "and,
within the limits specified in sub-
section (c), the total sum from the
appropriation under that subsection";
and on page 32, line 1, after the word
"problem", to insert "the size of the
tuberculosis problem."
The amendment was agreed to.
The next amendment was, on page
32, line 6, to change the paragraph
designation from "(d)" to "(e)."
The amendment was agreed to.
The next amendment was, on the
same page, line 18, to change the
paragraph designation from "(e)" to
"(f)", and in line 20, after the word
"subsection", to strike out "(a)" and
insert "(a)," and in the same line,
after "(b)", to insert "or subsection
(c)."
The amendment was agreed to.
The next amendment was, on the
same page, line 24, to change the
paragraph designation from "(f)"
to "(g)."
The amendment was agreed to.
The next amendment was, on page
33, line 3, to change the paragraph
designation from "(g)" to "(h)"; in
line 6, after the word "subsection", to
strike out "(a)" and insert "(a),";
in line 7, after "subsection (b)", to
insert "or subsection (c)"; and in line
10, after the word "subsection", to
strike out "(e)" and insert "(f)."
The amendment was agreed to.
The next amendment was, on page
33, in line 22, to change the paragraph
designation from (h) to (i).
The amendment was agreed to.
The next amendment was, on page
34. in line 4, to change the paragraph
designation from (i) to (j); in the
same line, after "subsection (a)", to
strike out "of this section" and insert
"and funds appropriated under sub-
section (b)"; in line 8, after the
word "out", to strike out "such sub-
section" and insert "the respective
subsections", and in line 12, after the
word "by", to strike out "such sub-
section" and insert "the respective
subsections."
The amendment was agreed to.
The next amendment was, in section
321, on page 35, after line 4, to insert
the following: "and from time to
time, with the approval of the Presi-
dent, select suitable sites for and
establish such additional institutions,
hospitals, and stations in the States
and possessions of the United States
as in his judgment are necessary to
enable the Service to discharge its
functions and duties."
The amendment was agreed to.
The next amendment was, in section
326, on page 41, after line 2, to strike
out:
Such cost shall be at such uniform rate as
may be prescribed in such regulations of the
President.
And insert:
Such cost shall be at such uniform rate as
may be prescribed from time to time by the
President for the hospitalization of depend-
ents of naval and Marine Corps personnel at
any naval hospital, pursuant to section 2
of the act of May 10, 1943 (57 Stat. 80).
The amendment was agreed to.
The next amendment was, in sec-
tion 343, on page 46, line 2, after the
word "transfers", to insert:
When sentence is pronounced against any
person whom the prosecuting officer believes
to be an addict, such officer shall report to
the authority vested with the power to desig-
nate the place of confinement, the name of
such person, the reasons for his belief, all
pertinent facts bearing on such addiction, and
the nature of the offense committed.
The amendment was agreed to.
The next amendment was, in sec-
tion 344, on page 49, line 22, to change
the paragraph designation from (d)
to (c) and on page 50, line 5, to
change the paragraph designation
from "(c)" to "(d)."
-------
1184
LEGAL COMPILATION—GENERAL
The amendment was agreed to.
The next amendment was, in sec-
tion 351, on page 53, line 12, after
the word "purity", to insert "and",
and after the word "potency" to strike
out "and efficaciousness."
The amendment was agreed to.
The next amendment was, in the
same section, on page 54, line 10,
after the paragraph designation
"(g)", to strike out "the persons and
the products to which this section is
applicable shall be subject also to the
provisions of the" and to insert
"Nothing contained in this act shall
be construed as in any way affecting,
modifying, repealing, or superseding
the provisions of the", and in line 14,
after the word "Act", to strike out
the comma and the following: "except
that section 505 of such act shall not
apply in the case of any virus, serum,
toxin, antitoxin, or other product
propagated, manufactured, or pre-
pared pursuant to an unsuspended
and unrevoked license issued under
this section" and insert "(U.S.C.,
1940 ed., title 21, ch. 9)."
The amendment was agreed to.
The next amendment was, in sec-
tion 366, on page 59, line 19, after
"(a)", to strike out "Any" and insert
"Except as otherwise prescribed in
regulations, any."
The amendment was agreed to.
The next amendment was, in the
same section, on page 61, line 13,
after the word "treaty", to strike out
"or may be designated by regulation;
nor, to the extent prescribed by reg-
ulations, to such of the other vessels
referred to in subsection (a) hereof
as may be designated in such regula-
tions."
The amendment was agreed to.
The next amendment was, in the
same section, on page 62, line 1, after
the word "vessel", to insert:
The certificate required by this subsection
shall be procurable from the quarantine officer,
upon arrival of the vessel at the quarantine
station and satisfactory inspection thereof, at
any time within which quarantine services
are performed at such station.
The amendment was agreed to.
The next amendment was, in sec-
tion 367, on page 62, line 8, after the
words "application to", to strike out
"civil", and in line 9, before the word
"aircraft", to strike out "civil."
The amendment was agreed to.
The next amendment was, in sec-
tion 368, page 62, line 24, after the
word "section", to strike out "364 or
section"; in line 25, after the word
"regulations", to strike out "there-
under," and insert "thereunder"; on
page 63, after the word "section", to
strike out "367" and insert "364."
The amendment was agreed to.
The next amendment was, on page
64, line 1, to insert the following:
PART H—TRAINING
TRAINING OF NURSES
SEC. 371. The Surgeon General is author-
ized to provide for training and instruction
of persons in nursing and related subjects,
in educational and other training institutions
which have been approved by' the Surgeon
General as meeting standards prescribed by
regulations of the President; payment for
such training and instruction, and for tuition,
fees and subsistence, to be made through cer-
tification from time to time by the Surgeon
General, in accordance with regulations of
[p. 6499]
the President, to the Secretary of the Treasury
of the name of the approved institution and
the amount to be paid; and the Secretary shall
make payment in accordance with such certifi-
cation prior to audit or settlement by the
General Accounting Office.
Mr. THOMAS of Utah. Mr. Presi-
dent, I ask that the amendment on
page 64 be rejected.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment beginning on page 64, line 1.
The amendment was rejected.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment beginning on page 64, line 1.
The next amendment was in section
406, on page 69, line 9, after the word
"limiting" to strike out "(1)" and in-
-------
STATUTES AND LEGISLATIVE HISTORY
1185
sert "(a)", and in line 13, after the
word "or" to strike "(2)" and insert
"(b)."
The amendment was agreed to.
The next amendment was in section
501, page 71, after line 24 to insert
the following:
(e) Donations of $50,000 or over in aid of
research may be acknowledged by the estab-
lishment within the National Institute of
Health of suitable memorials to the donors.
The amendment was agreed to.
The next amendment was, in sec-
tion 610, on page 82, after line 11 to
strike out the following:
(b) Subject to regulations of the President,
lightkeepers and assistant lightkeepers (who
during their active service were entitled to
medical relief at hospitals and other stations
of the Public Health Service), and officers
and crews of vessels of the former Lighthouse
Service, who have been or who may hereafter
be retired under the provisions of section 6
of the Act of June 20, 1918, as amended (U.
S. C., 1940 edition, title 33, sec. 763), shall
be entitled to medical, surgical, and dental
treatment and hospitalization by the Public
Health Service.
And to insert:
(b) Subject to regulations of the President,
lightkeepers, assistant lightkeepers, and offi-
cers and crews of vessels of the former Light-
house Service, including any such persons
who subsequent to June 30, 1939, have involun-
tarily been assigned to other civilian duty in
the Coast Guard, who were entitled to medical
relief at hospitals and other stations of the
Public Health Service prior to enactment of
this act, and who are now or hereafter on
active duty or who have been or may here-
after be retired under the provisions of section
6 of the act of June 20, 1918, as amended
(U. S. C., 1940 ed., title 33, sec.. 763), shall
be entitled to medical, surgical, and dental
treatment and hospitalization at hospitals and
other stations of the Public Health Service:
Provided, That such persons while on active
duty shall also be entitled to care and treat-
ment in accordance with the provisions of
section 322 (e) of this act.
(c) For the duration of the present war
and for 6 months thereafter, seamen employed
on foreign-flag vessels which are owned or
operated by citizens of the United States or by
corporations incorporated under the law of
the United States or of any State shall be
entitled to the same benefits as are provided
by section 322 (a) (1) for seamen employed
on vessels of the United States.
The amendment was agreed to.
The next amendment was in section
611, after line 22, to insert:
The two paragraphs under the subheading
"Marine—hospital establishment (customs:)"
under the heading "Under the Treasury De-
partment" in section 3689 in title XLI of the
Revised Statutes of the United States;
The amendment was agreed to.
The next amendment was on page
84, line 3, to strike out "Section 3689
in title XLI, and sections" and insert
"Sections."
The amendment was agreed to.
The next amendment was, on page
94, line 25, after the words "public
health", to strike out "wherever they
appear."
The amendment was agreed to.
The next amendment was, on page
95, at the beginning of line 1, to
strike out "the second sentence of."
The amendment was agreed to.
The next amendment was, on page
95, line 16, after the numerals "228",
to insert "chapter 725, 49 Statutes at
Large 1827, at page 1839;".
The amendment was agreed to.
The next amendment was, on page
97, line 8, after the numerals "547",
to insert "at page 548."
The amendment was agreed to.
The next amendment was, on page
98, line 7, after the word "Congress",
to strike out the comma and the
words "at page 4."
The amendment was agreed to.
The PRESIDING OFFICER. That
completes the committee amendments.
The bill is before the Senate and
open to further amendment. If there
be no further amendment to be pro-
posed, the question is on the engross-
ment of the amendments and the
third reading of the bill.
The amendments were ordered to be
engrossed and the bill to be read a
third time.
The bill (H. R. 4624) was read the
third time and passed.
[p. 6500]
-------
1186 LEGAL COMPILATION—GENERAL
1.12a(3)(c) June 23: House concurs in Senate amendments, pp.
6663-6664
[No Relevant Discussion on Pertinent Sections]
1.12b NATIONAL MENTAL HEALTH ACT
July 3,1946, P.L. 79-487, §§ 6, 7 (a, b), 9, 60 Stat 423, 424
DETAIL OF PERSONNEL
SEC. 6. Subsection (b) of section 214 of the Public Health Serv-
ice Act24 is amended to read as follows:
"(b) Upon the request of any State health authority or, in the
case of work relating to mental health, any State mental health
authority, personnel of the Service may be detailed by the Surgeon
General for the purpose of assisting such State or a political
subdivision thereof in work related to the functions of the Serv-
ice."
RESEARCH, INVESTIGATIONS, AND TRAINING
SEC. 7. (a) Paragraph (d) of section 301 of the Public Health
Service Act25 is amended to read as follows:
"(d) Make grants in aid to universities, hospitals, laboratories,
and other public or private institutions, and to individuals for
such research projects as are recommended by the National Advi-
sory Health Council, or, with respect to cancer, recommended by
the National Advisory Cancer Council, or, with respect to mental
health, recommended by the National Advisory Mental Health
Council;".
(b) Paragraph (g) of such section is amended to read as fol-
lows:
"(g) Adopt, upon recommendation of the National Advisory
Health Council, or, with respect to cancer, upon recommendation
of the National Advisory Cancer Council, or, with respect to men-
tal health, upon recommendation of the National Advisory Mental
Health Council, such additional means as he deems necessary or
appropriate to carry out the purposes of this section."
(c) Part A of title III of the Public Health Service Actz« \a
further amended by adding at the end thereof the following new
section:
[p. 423]
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STATUTES AND LEGISLATIVE HISTORY 1187
GRANTS TO STATES
SEC. 9. (a) Subsection (c) of section 314 of the Public Health
Service Act is amended to read as follows:
"(c) To enable the Surgeon General to assist, through grants
and as otherwise provided in this section, States, counties, health
districts, and other political subdivisions of the States in establish-
ing and maintaining adequate public health services, including
grants for demonstrations and for the training of personnel for
State and local health work, there is hereby authorized to be ap-
propriated for each fiscal year a sum not to exceed $30,000,000. Of
the sum appropriated for each fiscal year pursuant to this subsec-
tion there shall be available an amount, not to exceed $3,000,000,
to enable the Surgeon General to provide demonstrations and to
train personnel for State and local health work and to meet the
cost of pay, allowances, and traveling expenses of commissioned
officers and other personnel of the Service detailed to assist States
in carrying out the purposes of this subsection."
(b) Subsection (d) of such section is amended to read as fol-
lows:
" (d) For each fiscal year, the Surgeon General, with the ap-
proval of the Administrator, shall determine the total sum from
the appropriation under subsection (a), the total sum from the
appropriation under subsection (b), and, within the limits speci-
fied in subsection (c), the total sum from the appropriation under
that subsection which shall be available for allotment among the
several States. He shall, in accordance with regulations, from time
to time make allotments from such sums to the several States on
the basis of (1) the population, (2) the extent of the venereal-dis-
ease problem, the extent of the tuberculosis problem, and the ex-
tent of the mental health problem and other special health prob-
lems, respectively, and (3) the financial need of the respective
States. Upon making such allotments the Surgeon General shall
notify the Secretary of the Treasury of the amounts thereof."
(c) Subsection (f) of such section is amended to read as fol-
lows:
" (f) The moneys so paid to any State shall be expended solely
in carrying out the purposes specified in subsection (a), or subsec-
tion (b), or subsection (c) of this section, as the case may be, and
in accordance with plans, approved by the Surgeon General, which
have been presented by the health authority of such State and, to
the extent any such plan contains provisions relating to mental
health, by the mental health authority of such State."
-------
1188 LEGAL COMPILATION—GENERAL
(d) Subsection (h) of such section is amended to read as fol-
lows:
"(h) Whenever the Surgeon General, after reasonable notice
and opportunity for hearing to the health authority or, where
appropriate, the mental health authority of the State, finds that,
with respect to money paid to the State out of appropriations
under subsection (a), or subsection (b), or subsection (c), as the
case may be, there is a failure to comply substantially with
either—
" (1) the provisions of this section;
"(2) the plan submitted under subsection (f) ; or
" (3) the regulations;
the Surgeon General shall notify such State health authority or
mental health authority either that further payments will not be
made to the State from appropriations under such subsection (or
in his discretion that further payments will not be made to the
State from such appropriations for activities in which there is
such failure), until he is satisfied that there will no longer be any
such failure. Until he is so satisfied the Surgeon General shall
make no further certification for payment to such State from
appropriations under such subsection, or shall limit payment to
activities in which there is no such failure."
(e) Subsection (i) of such section is amended to read as fol-
lows:
"(i) All regulations and amendments thereto with respect to
grants to States under this section shall be made after consulta-
tion with a conference of the State health authorities and, in the
case of regulations or amendments which relate to or in any way
affect grants under subsection (c) for work in the field of mental
health, the State mental health authorities. Insofar as practicable,
the Surgeon General shall obtain the agreement, prior to the issu-
ance of any such regulations or amendments, of the State health
authorities and, in the case of regulations or amendments which
relate to or in any way affect grants under subsection (c) for
work in the field of mental health, the State mental health authori-
ties."
[p. 424]
-------
STATUTES AND LEGISLATIVE HISTORY 1189
1.12b(l) HOUSE COMMITTEE ON INTERSTATE
AND FOREIGN COMMERCE
H.R. REP. No. 1445, 79th Cong., 1st Sess. (1945)
NATIONAL MENTAL HEALTH ACT
DECEMBER 14, 1945.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. PRIEST, from the Committee on Interstate and Foreign Com-
merce, submitted the following
REPORT
[To accompany H. R. 4512]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (H. R. 4512) to amend the Public Health
Service Act to provide for research relating to psychiatric disor-
ders and to aid in the development of more effective methods of
prevention, diagnosis, and treatment of such disorders, and for
other purposes, having considered the same, report favorably
thereon with amendments and recommend that the bill as amended
do pass.
The amendments are as follows:
1. Page 4, strike out all of line 5 after the letter "(d)" and
insert in lieu thereof "The National Advisory Mental Health
Council".
2. Page 7, line 20, insert "receiving such training and instruc-
tion" after "persons".
3. Page 8, line 2, strike out "clinc" and insert in lieu thereof
"clinic".
4. Page 8, line 19, strike out "mental-" and insert in lieu thereof
"mental".
5. Page 10, line 3, insert "and" and after the second comma;
and in line 4, strike out "problem, and the extent of" and insert in
lieu thereof "problem and".
The first, third, and fourth amendments are proposed solely for
the purpose of correcting obvious typographical errors.
The second amendment is for the purpose of making it clear
that the Advisory Council is to fix the number of persons receiving
training and instruction.
-------
1190 LEGAL COMPILATION—GENERAL
Fifth amendment: Section 314 (d) of the Public Health Service
Act contains the formula for the making of allotments among the
States of funds made available for public health services. The inten-
tion of the bill is to modify this formula so as to make specific ref-
erence to the mental health problem, without, however, placing that
[p-l]
PRINCIPAL FEATURES OP THE BILL
The bill projects into the field of mental health the authority
which the Congress has in the past bestowed upon the Public
Health Service—and which was revised and consolidated last year
in the Public Health Service Act—with regard to research,
grants-in-aid and fellowships, aid to the States, and cooperation
with the States in the solution of their public health problems. The
authority conferred by the bill would be specifically addressed to
the mental health problem, and would, together with authority
given the Public Health Service under existing law, permit the
establishment of an effective program in this field of public health
activity.
The bill establishes a National Advisory Mental Health Council
to assist the Surgeon General in the planning and development of
a national mental health program, including recommendations to
the Surgeon General as to grants-in-aid for research projects. It
authorizes the Service to provide training, instruction, and demon-
strations in the field of mental health and to make grants to the
States for this purpose. The bill would also provide for giving
special emphasis to the mental health problem in making grants to
the States for general public health services. Finally, the bill
would authorize construction of buildings and facilities to be
known as the National Institute of Mental Health to serve as a
focal point for research, experimentation, and advanced or special-
ized training, and as a clearinghouse for the collection and dissem-
ination of information concerning advances in the prevention, di-
agnosis, and treatment of psychiatric disorders.
Your committee believes, and it was the consensus of the wit-
nesses at the public hearings, that the legislation here recom-
mended will provide the leadership, stimulus, and financial re-
sources necessary to develop a national mental health program,
and that such a program is of immediate and vital importance to
the Nation.
[p. 6]
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STATUTES AND LEGISLATIVE HISTORY 1191
SECTION 6
Subsections (a) and (b) of this section amend paragraphs (d)
and (g) of section 301 of the Public Health Service Act by desig-
nating the new National Advisory Mental Health Council as the
body to make recommendations to the Surgeon General on the
awarding of grants-in-aid for research projects and on additional
means for carrying out the purposes of section 301.
Subsection (c) of section 6 of the bill adds a new section, sec-
tion 303, to part A of title III of the Public Health Service Act.
Under paragraph (a) of the new section 303 the Surgeon General
is authorized, for purposes of study, to admit and treat at the new
National Institute of Mental Health (established under sec. 10 of
the bill) voluntary patients, whether or not they are otherwise
eligible for treatment by the Service. This authorization is pat-
terned after similar authority granted to the Surgeon General
with respect to the institutions, hospitals, and stations of the Serv-
ice under paragraph (f) of section 301 of the Public Health Serv-
ice Act. Paragraph (a) of the new section 303 would also author-
ize the transfer to the new Institute, for purposes of study, of
patients from St. Elizabeths Hospital; such transfers to be
[P. 8]
1.12b(2) SENATE COMMITTEE ON EDUCATION
AND LABOR
S. REP. No. 1353, 79th Cong., 2d Sess. (1946)
NATIONAL MENTAL HEALTH ACT
MAY 16 (legislative day, MAKCH 5), 1946.—Ordered to be printed
Mr. PEPPER, from the Committee on Education and Labor, submit-
ted the following
REPORT
[To accompany H. R. 4512]
The Committee on Education and Labor to whom was referred
the bill (H. R. 4512) to amend the Public Health Service Act to
provide for research relating to psychiatric disorders and to aid in
the development of more effective methods of prevention, diagno-
sis, and treatment of such disorders, and for other purposes, hav-
-------
1192 LEGAL COMPILATION—GENERAL
ing held hearings and given consideration thereto, reports the
same (with amendments) and recommends that the bill as
amended do pass.
[P. 1]
PRINCIPAL FEATURES OF THE BILL
The authority which Congress has bestowed upon the Public
Health Service in the consolidated Public Health Service Act, Pub-
lic Law 410, Seventy-eighth Congress, with regard to research,
grants-in-aid, fellowships, aid to the States, and cooperation with
the States in the solution of their public health problems, is ex-
tended to the field of mental health. The bill would cover the
mental health problem specifically and would, together with the
authority given the Public Health Service under existing law, per-
mit the establishment of an effective program in this field of
public health.
The bill establishes a National Advisory Mental Health Council
to assist the Surgeon General in the planning and development of
a mental health program, including recommendations to the Sur-
geon General as to grants-in-aid for research projects. It grants
authority to the Public Health Service to provide training, instruc-
tion, and demonstrations in the field of mental health and to make
grants to public and other nonprofit institutions for this purpose.
The bill also provides for recognition of the mental health prob-
lem in making grants to the States for general public health
services. Finally, the bill authorizes the Surgeon General to pro-
vide for the construction of buildings and facilities to be known
as the National Institute of
[p. 9]
SECTION 6
This section amends subsection (b) of section 214 of the Public
Health Service Act. Under the existing provisions the Surgeon
General may detail personnel of the Public Health Service for the
purpose of assisting any State in work related to the functions of
the Service, upon the request of the State health authority. The
amendment provides that the request shall come from the State
mental health authority, where that differs from the general
health authority, in the case of work relating to mental health.
-------
STATUTES AND LEGISLATIVE HISTORY 1193
SECTION 7
Subsections (a) and (b) of this section amend paragraphs (d)
and (g) of section 301 of the Public Health Service Act by desig-
nating the new National Advisory Mental Health Council as the
[p. 12]
body to make recommendations to the Surgeon General on the
awarding of grants-in-aid for research projects and on additional
means for carrying out the purposes of section 301.
Subsection (c) of section 7 of the bill adds a new section, sec-
tion 303, to part A of title III of the Public Health Service Act.
Under paragraph (a) of the new section 303 the Surgeon General
is authorized, for purposes of study, to admit and treat at the new
National Institute of Mental Health (established under sec. 11 of
the bill) voluntary patients, whether or not they are otherwise
eligible for treatment by the Service. This authorization is pat-
terned after similar authority granted to the Surgeon General
with respect to the institutions, hospitals, and stations of the Serv-
ice under paragraph (f) of section 301 of the Public Health Serv-
ice Act. Paragraph (a) of the new section 303 would also author-
ize the transfer to the new Institute, for purposes of study, of
patients from St. Elizabeths Hospital; such transfers to be made
pursuant to arrangements, approved by the Federal Security Ad-
ministrator, between the superintendent of the hospital and the
Surgeon General.
As the bill passed the House the new paragraph (a) contained a
proviso requiring the consent of a legal guardian to be obtained
before the transfer of a patient from St. Elizabeths Hospital to
the National Institute of Mental Health for treatment for pur-
poses of study. Because your committee believed this proviso
would cause difficulties in administration not warranted by any
advantages which might accrue to the patients, the proviso has
been removed. In many cases there may be no legal guardian
whose consent can be obtained for the transfer since many of the
commitments to St. Elizabeths Hospital are made by the judiciary
without the intervention of a legal guardian. In other cases, if
there does happen to be a legal guardian, he or she may be in some
far off place, such as in Alaska, or on the west coast.
Clause (1) of paragraph (b) of the new section 303 would
authorize the Surgeon General to provide training and instruction
in matters relating to mental health to persons found by him to
have proper qualifications and also to pay a per diem allowance to
-------
1194 LEGAL COMPILATION—GENERAL
tHose of the persons selected by him for such training, and in-
struction as he might designate. The number of persons receiving
such training during any period or periods, however, could not
exceed the number specified by the National Advisory Mental
Health Council. The provisions of this clause are patterned after
the provisions of paragraph (c) of section 402 and the provisions
of paragraph (2) of subsection (a) of section 403 of the Public
Health Service Act which give similar authority to the Surgeon
General, but without any numerical limitation, in the case of can-
cer work.
Clause (2) of subsection (b) of the new section 303 would
authorize the Surgeon General to provide the training and instruc-
tion, and demonstrations, in the field of mental health through
grants to public and other nonprofit institutions, but only upon
recommendation of the National Advisory Mental Health Council.
Such grants could also be made under the bill as reported out by
your committee, although not under the bill as passed by the
House, for the construction, acquisition, or leasing of facilities
which may be necessary in order to provide the training and
instruction. As pointed out in the earlier part of this report, one
of the primary purposes of the bill is to provide a means of
[p. 13]
remedying the great lack of trained psychiatrists and other per-
sonnel needed to operate mental health facilities. While the Na-
tional Institute of Mental Health will serve as a focal point for
research, experimentation, and advanced or specialized training in
the field of mental health work it is contemplated that the bulk of
the training will be done by public and private schools and institu-
tions. However, the hearings on the bill made it abundantly clear
that the schools and institutions would need considerable assist-
ance in expanding not only their staffs, but their facilities as well,
if this important objective of the bill is to be accomplished. Clause
(2) of paragraph (b), as amended by your committee, is intended
to give the Surgeon General authority to make grants for these
purposes, as well as to make grants for the purpose of enabling
the States to conduct demonstrations.
SECTION 9
This section amends the various provisions of section 314 of the
Public Health Service Act relating to grants to the States for the
establishment and maintenance of adequate public health services.
Section 314 now provides for grants to the States for three pri-
-------
STATUTES AND LEGISLATIVE HISTORY 1195
mary purposes—for work in the field of venereal diseases, for
work in the field of tuberculosis, and for work in the field of
general public health. S. 1160 would have established a fourth
category by providing for grants for work in the field of mental
health separate from those already authorized for general public
health work. Subsection (c) of section 314, which relates to grants
for the establishment and maintenance of adequate public health
services, is broad enough to permit funds granted under its provi-
sions to be used for work in the field of mental health. Conse-
quently, H. R. 4512, as passed by the House and as reported out by
your committee, in lieu of establishing a fourth grant-in-aid pro-
gram, amends the provisions of section 314 relating to grants for
the establishment and maintenance of adequate public health serv-
ices so as to provide that special consideration be given in making
those grants to the mental-health problem. Your committee be-
lieves this will be adequate to permit accomplishment of the objec-
tives of S. 1160 in the matter of grants to States while at the same
time preserving the basic principles of section 314 of the Public
Health Service Act.
Since H. R. 4512 contemplates increased grants to States for
general public health work to take care of the expansion of mental
health work, it seemed necessary to change the present limitation
in subsection (c) of section 314 on the amount which may be
appropriated for grants to the States for general public health
work from $20,000,000 to $30,000,000. Similarly, it was thought
necessary to raise from $2,000,000 to $3,000,000 the ceiling on the
amount which may be used under that subsection for the provision
of demonstrations and personnel to assist the States and for the
[P. 14]
training of personnel by the Public Health Service for State and
local health work. The raising of these two limitations is the only
change the bill would make in subsection (c) of section 314 of the
Public Health Service Act.
Subsection (b) of section 9 of the bill amends subsection (d) of
section 314 of the Public Health Service Act which sets forth the
method for determining the amount to be allotted to each State for
work in the field of venereal diseases, tuberculosis, and general
public health, respectively. The amendment provides that in deter-
mining the amount to be allotted to each State for general public
health work the Surgeon General shall give special consideration
to the extent of the mental health problem, as well as the other
special health problems, in the respective States.
-------
1196
LEGAL COMPILATION—GENERAL
Subsections (c), (d), and (e) of section 9 of the bill amend sub-
sections (f), (h), and (i), respectively, of section 314 of the
Public Health Service Act so as to provide that, in matters relating
to work in the field of mental health, the Surgeon General shall
deal with the State mental health authorities where they differ
from the general health authorities.
[p. 15]
1.12b(3) COMMITTEE OF CONFERENCE
H.R. REP. No. 2350, 79th Cong., 2d Sess. (1946)
NATIONAL MENTAL HEALTH ACT
CONFERENCE REPORT
[To accompany H. R. 4512]
The committee of conference on the
disagreeing votes of the two Houses
on the amendments of the Senate to
the bill (H. R. 4512) to amend the
Public Health Service Act to provide
for research relating to psychiatric
disorders and to aid in the develop-
ment of more effective methods of
prevention, diagnosis, and treatment
of such disorders, and for other pur-
poses, having met, after full and free
conference, have agreed to recom-
mend and do recommend to their re-
spective Houses as follows:
That the Senate recede from its
amendment numbered 2.
That the House recede from its dis-
agreement to the amendments of the
Senate numbered 1 and 4, and agree
to the same.
Amendment numbered 3: That the
House recede from its disagreement
to the amendment of the Senate num-
bered 3, and agree to the same with
an amendment as follows: In lieu of
the matter proposed to be inserted by
the Senate amendment insert the fol-
lowing: "but only to the extent neces-
sary for the purposes of such training
and instruction"; and the Senate
agree to the same.
J. PERCY PRIEST,
ALFRED L. BULWINKLE,
VIRGIL CHAPMAN,
CLARENCE J. BROWN,
THOMAS D. WINTER,
Managers on the Part of the House.
CLAUDE PEPPER,
JAMES E. MURRAY,
LISTER HILL,
ROBERT A. TAFT,
GEORGE D. AIKEN,
Managers on the Part of the Senate.
STATEMENT
The managers on the part of the
House at the conference on the dis-
agreeing votes of the two Houses on
the amendments of the Senate to the
bill (H. R. 4512) to amend the Public
Health Service Act to provide for re-
search relating to psychiatric dis-
orders and to aid in the development
of more effective methods of preven-
tion, diagnosis, and treatment of such
disorders, and for other purposes,
submit the following statement in ex-
planation of the effect of the action
agreed upon by the conferees and
recommended in the accompanying
conference report:
Amendment No. 1: In the provi-
sions of the bill relating to the Na-
tional Advisory Mental Health Coun-
-------
STATUTES AND LEGISLATIVE HISTORY
1197
cil it is provided that six appointed
members shall be selected from lead-
ing medical or scientific authorities
who are outstanding in the study,
diagnosis, or treatment of psychiatric
disorders. The bill as it passed the
House contained a sentence providing
that three of the appointed members
shall be selected from a panel of six
such authorities to be submitted to the
Surgeon General by the deans of the
approved medical colleges and schools
in the United States. This amend-
ment of the Senate struck out this
sentence. The House recedes.
Amendment No. 2: The bill in the
proposed new section 303 of the Pub-
lic Health Service Act authorizes the
Surgeon General, in carrying out the
purposes of section 301 with respect
to mental health, to admit and treat,
at the National Institute of Mental
Health, patients of St. Elizabeths
Hospital transferred from the hos-
pital pursuant to the arrangements
made by the Surgeon General and
the Superintendent of the hospital
with the approval of the Federal
Security Administrator. In the bill as
it passed the House this provision con-
tained a proviso that the consent of
a legal guardian shall be obtained
before the transfer of any patient
from St. Elizabeths Hospital for such
treatment. This Senate amendment
struck out the proviso contained in
the bill as it passed the House. The
Senate recedes.
Amendment No. 3: In the new sec-
tion 303 of the Public Health Service
Act, in the bill as it passed the House,
the Surgeon General is authorized by
clause (1) of subsection (b) to pro-
vide training and instruction, in mat-
ters relating to psychiatric disorders,
to persons found by him to have
proper qualifications, and, by clause
(2), to provide such training and in-
struction, and demonstrations,
through grants, upon recommendation
of the National Advisory Mental
Health Council, to public and other
nonprofit institutions. By this amend-
ment the Senate added a provision to
clause (2) providing that such grants
could include grants to such institu-
tions "for the construction, acquisi-
tion, and leasing of hospital, clinic,
laboratory, and related facilities, but
only to the extent necessary for the
purposes of such training and instruc-
tion." The House recedes with an
amendment which eliminates that
part of the Senate language which
would authorize grants to such insti-
tutions for the construction, acquisi-
tion, and leasing of hospital, clinic,
laboratory, and related facilities, but
retains the other language of the
Senate amendment so that clause (2)
will read as follows: "(2) to provide
such training and instruction, and
demonstrations, through grants, upon
recommendation of the National Ad-
visory Mental Health Council, to pub-
lic and other nonprofit institutions,
but only to the extent necessary for
the purposes of such training and in-
struction."
Amendment No. 4: Section 11 of
the bill as it passed the House author-
ized the appropriation of not to ex-
ceed $4,500,000 for the erection and
equipment, for the use of the Public
Health Service in the carrying out of
the provisions of this legislation, of
suitable and adequate hospital build-
ings and facilities, including neces-
sary living quarters for personnel,
and of suitable and adequate labora-
tory buildings and facilities, such
buildings and facilities to be known
as the National Institute of Mental
Health. This Senate amendment
struck out "$4,500,000" and inserted
"$7,500,000." The House recedes.
J. PERCY PRIEST,
ALFERD L. BULWINKLE,
VIRGIL CHAPMAN,
CLARENCE J. BROWN,
THOMAS D. WINTER,
Managers on the Part of the House.
-------
1198
LEGAL COMPILATION—GENERAL
U2b(4) CONGRESSIONAL RECORD (VOL. 92 (1946)
1.12b(4)(a) March 14, 15: Amended and passed House, pp. 2283,
2284-2286, 2291, 2292, 2293, 2294, 2295
Mr. SABATH.
*****
This bill should have the unanimous
support of the House, Mr. Speaker. I
am sure that not even those gentle-
men who customarily rise to object to
all measures which seem to put the
Federal Government into a position of
helping the States and local units can
find grounds for opposing this hu-
manitarian measures which will en-
rich medical and psychological knowl-
edge. The bill is skillfully designed to
give the utmost responsibility to the
local governments. The bureaucrats
cannot be charged with wanting to
extend their power here. It provides
help and guidance for all the States,
even for those States that contribute
the least, and on a basis of equity
and fairness. The gentlemen who love
to criticize will find little in this bill
to object to.
*****
[p. 2283]
Mr. EOBSION of Kentucky. This
does not border on or take on any-
thing of the features of socialized
medicine, does it?
Mr. BROWN of Ohio. Absolutely
not. I checked very carefully, and
other members of the committee also
checked just as carefully, to be certain
we did not step across the line I men-
tioned a moment ago and go into the
field of socialized medicine or into en-
deavors which properly belong to the
States or the local communities. This
is purely for research, it is purely for
instruction, to render a service that
the States and local communities can-
not render for themselves except at
an expense which would be unbear-
able.
Mr. ROBSION of Kentucky. It
brings together and makes available
to the States and the hospitals of the
States the latest information of the
whole Nation?
Mr. BROWN of Ohio. That is cor-
rect.
Mr. EATON. Mr. Speaker, will the
gentleman yield?
Mr. BROWN of Ohio. I yield to the
gentleman from New Jersey.
[p. 2284]
Mr. EATON. I feel, of course, as
the gentleman does, that the need for
this service in this country is tremen-
dous at the present time. I am only
anxious to be assured that these
grants by the Federal Government
will not further intrude upon the sov-
ereignty of the States.
Mr. BROWN of Ohio. We took out
of this bill every line and every word
that we believed would in any way in-
trude upon the sovereignty of the
States, would lead toward socialized
medicine, or would in any way inter-
fere with the normal functioning of
local hospitals, and understood that
the work of the Federal Government
in this respect will be confined purely
to research, to instruction, to training,
to tests, to examinations, to experi-
ments, and so forth.
Mr. EATON. Has the gentleman
any hope that this research in the
mental condition of America will dis-
cover why a majority of our people
have kept the New Deal in power for
14 years?
Mr. BROWN of Ohio. I do not be-
lieve I want to discuss that at this
time. I am hoping that this bill will
be passed.
Mrs. BOLTON. Mr. Speaker, will
the gentleman yield?
Mr. BROWN of Ohio. I yield to the
gentlewoman from Ohio.
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STATUTES AND LEGISLATIVE HISTORY
1199
Mrs. BOLTON. As I understand,
this research at Bethesda will in no
way interfere with any research that
is now going on in the States in pri-
vate or in public institutions?
Mr. BROWN of Ohio. Oh, no. I
would like to say to the gentlewoman,
and I believe I should have explained
it to the House, that all of the re-
search which will be done will be in
conjunction with research in other
institutions, and will bring to this
Federal research institution here the
latest discoveries, and methods worked
out in other research institutions.
There will actually be much more
money spent in these private research
institutions than will be spent here in
the Federal Government institution.
Not only that, but representatives of
every State public health administra-
tion, every State welfare department,
and every hospital which has any-
thing to do with mental diseases, are
behind this bill. They have all ap-
proved it. They have all requested it.
There was no opposition to this bill.
Instead, there was general approval
of the measure, and I hope that this
rule will be adopted so that we may
consider this bill.
Mr. BROWN of Ohio. Mr. Speaker,
I yield 5 minutes to the g-entleman
from Pennsylvania [Mr. BRUM-
BAUGH].
CANCER IS THE SCOURGE OF MANKIND
Mr. BRUMBAUGH. Mr. Speaker,
this rule making in order H.R. 4512
now under consideration, and which
I sincerely hope will receive unani-
mous approval, provides funds for re-
search relating to psychiatric disor-
ders and to aid in the development of
more effective methods of prevention,
diagnosis, and treatment of such dis-
orders and for other purposes. It is
noteworthy that this legislation, which
amends the Public Health Service Act,
includes cancer among the diseases
that will be the subject of study and
research under the provisions of this
important bill.
[p. 2285]
Mr. COCHRAN. Mr. Speaker, I can
very easily go along with the commit-
tee so far as setting up this National
Institute of Mental Health is con-
cerned and having the Public Health
Service make a study of mental dis-
orders. But why the committee pro-
vides again for grants to the States,
and nonprofit institutions I do not un-
derstand. We have just had a lecture,
you might say another lecture, for we
have had many of them from the gen-
tleman from Texas [Mr. SUMNERS]
who tells us about the centralization
of power and the bureaucracy in the
Federal Government. He is going to
retire from service in this House. I
have known the gentleman ever since
he has been here, as it happens that
the gentleman from Texas [Mr. SUM-
NERS] is one of five Members of the
House today who were Members when
I came here to work as a secretary to
a Congressman 34 years ago. If he
wants to stop the centralization of
power and reduce bureaucracy that
you hear him talk so much about, the
way for him to do it is to stop these
grants to States and to stop Federal
aid to the States. You can make up
your mind that every time you pro-
vide for a grant to the States or Fed-
eral aid to the States, the Federal
Government is going to police the
money. They are going to go out to
the States and see that the money is
spent for the purposes for which it
was appropriated and allocated; and
in so doing, they wil police the activi-
ties of the States. If you think they
are not going to do it in connection
with this legislation, let me invite
your attention to paragraph (h) of
section 8, where it is provided that
they shall go into the States to see
that this money which is going to be
allocated is being used properly. They
will go not only to States but to hos-
-------
1200
LEGAL COMPILATION—GENERAL
pitals, universities, and so forth. Sec-
tion 8, paragraph (h), provides that
they will not spend any money until
they see that the regulations are fol-
lowed. Read it, do not take my word.
Mr. BROWN of Ohio. Mr. Speaker,
will the gentleman yield?
Mr. COCHRAN. I yield.
Mr. BROWN of Ohio. I would like
to impress upon the gentleman that
this section to which the gentleman
refers is in substance in the present
law and it has been for a long, long
time. The only thing that is done here
is to make it applicable also to mental
health.
Mr. COCHRAN. I understand, but
the gentleman from Ohio cannot deny
that you are spending $10,000,000
additional.
Mr. BROWN of Ohio. No.
Mr. COCHRAN. Oh, yes.
Mr. BROWN of Ohio. That $10,-
000,000 is not an aid to the States at
all.
Mr. COCHRAN. You are raising
the $20,000,000 to $30,000,000. Look
at your report.
Mr. PRIEST. Mr. Speaker, will the
gentleman yield?
Mr. COCHRAN. I yield.
Mr. PRIEST. As a matter of fact,
and I am sure the gentleman from
Ohio will agree with me, that the
amounts that go to the States are
rather negligible and the bulk of the
$10,000,000 will be spent in a train-
ing and research experimental pro-
gram by the Institute. There will be
here and there some minor grants-in-
aid. For instance, if a hospital con-
nected with a university in the State
of the gentleman from Missouri has
some special study under way and
they need some help, there will be a
small grant made but the amount
going to the State is negligible.
Mr. COCHRAN. Where are you
going to get the money that is going
to be distributed? Nowhere but from
the taxpayers of the States.
Mr. BROWN of Ohio. The money
can be gotten from the same place that
we got the billions of dollars that the
gentleman from Missouri has voted
away in the past 20 years.
Mr. COCHRAN. The State of Ohio
from which the gentleman comes is
known as one of the taxpaying States
of the Union, just as my State of
Missouri is. But there are many States
in the Union who get out of the Fed-
eral Treasury more money than they
put in. This matter of making Federal
grants and providing Federal aid, if
it is continued, is going to make it
absolutely impossible to balance your
normal budget.
The SPEAKER. The time of the
gentleman from Missouri has expired.
Mr. SABATH. Mr. Speaker, I yield
two additional minutes to the gentle-
man from Missouri.
Mr. COCHRAN. Every time we
make one of these Federal grants or
provide Federal aid, you know it will
stay on the statute books. On Monday
we passed a bill absolutely full of
Federal aid and Federal grants to
the States, the Agricultural Depart-
ment appropriation bill.
Try to repeal one of them. You do
not find any one of these gentlemen
who have been talking about central-
ization of power offering amendments
to strike from that Agricultural De-
partment appropriation bill any of
these items that are hand-outs to the
States. The thought comes to me we
had better be a little careful and stop
this distribution of Federal money if
you want to balance the budget.
Mr. BROWN of Ohio. Mr. Speaker,
will the gentleman yield?
Mr. COCHRAN. Yes; I yield.
Mr. BROWN of Ohio. If the gentle-
man will just take time, when he re-
tires from the well of the House, to
read section 8, which he has been dis-
cussing, he will see that a limitation
is placed in this section of $3,000,000,
to be used not only as an aid but for
the training of personnel.
Mr. COCHRAN. True, but the bill
-------
STATUTES AND LEGISLATIVE HISTORY
1201
also provides for an increase from
$20,000,000 to $30,000,000. It also,
aside from that, provides for money
to set up this institute. The gentle-
man cannot deny that. Set up the in-
stitute and stop there and I will go
along with you.
Mr. BROWN of Ohio. No one de-
nies anything, but I am attempting to
explain to the gentleman, and it seems
impossible for him to understand what
is in this bill.
Mr. COCHRAN. I know what is in
the bill.
Mr. BROWN of Ohio. I hope the
gentleman will read it again, and if
he will read it carefully, he will ascer-
tain that the limit that can possibly
be spent, including the training of
personnel, is $3,000,000 a year.
Mr. COCHRAN. If the gentleman
will look at the report under the Ram-
seyer rule, and read it, he will see that
it shows the existing law is changed
from $20,000,000 to $30,000,000. Here
is what the report says:
(c) To enable the Surgeon General to assist,
through grants and as otherwise provided in
this section. States, counties, health districts,
and other political subdivisions of the States
in establishing and maintaining adequate pub-
lic health services, including grants for dem-
onstrations and for the training of personnel
for State and local health work, there is hereby
authorized to be appropriated for each fiscal
year a sum not to exceed |$20,000,000| tSO,-
000,000. Of the sum appropriated for each
fiscal year pursuant to this subsection there
shall be available an amount, not to exceed
i$2,000,000| $3,000,000. to enable the Surgeon
General to provide demonstrations and to train
personnel for State and local health work and
to meet the cost of pay, allowances, and trav-
eling expenses of commissioned officers and
other personnel of the Service detailed to assist
States in carrying out the purposes of this
subsection.
Mr. HOFFMAN. Mr. Speaker, will
the gentleman yield?
Mr. COCHRAN. I yield.
Mr. HOFFMAN. As I understand,
the gentleman is against this bill be-
cause it carries an appropriation of
millions of dollars?
Mr. COCHRAN. I said I could go
along with them with reference to the
institute you want to set up, but I am
warning you that you are handing out
additional grants to the States, so
don't be complaining about centraliza-
tion of power and bureaucracy in
Washington when you make the
grants.
Look at section 303, page 8, and see
what you are going to do with the
money. I quote: "to provide such
training and instruction, and demon-
strations, through grants, upon rec-
ommendation of the National Advi-
sory Mental Health Council, to public
and other nonprofit institutions, in-
cluding grants to such institutions for
the construction, acquisition, or leas-
ing of hospital, clinic, and related fa-
cilities necessary for the purposes of
such training and instruction."
Here you are not only going to
spend the money for research, but you
are also going to use it for construc-
tion, acquisition, or leasing of hospi-
tals, and so forth.
Mr. HOFFMAN. The gentleman is
trying to convert the Republicans to
an economy program; is that it?
[p. 2286]
Mr. PRIEST. Since the statement
was made by the gentleman from
Michigan at the time he made the
point of order that a quorum was not
present that this particular bill au-
thorize the appropriation of $30,000,-
000 a year, I would like to explain
that point again. The gentleman from
Ohio [Mr. BROWN] has explained it
once.
There is now authority in existing
law for the appropriation of $20,000,-
000 a year to the Public Health Serv-
ice to be spent for the purposes con-
tained in the National Institute of
Health Act, the Tuberculosis Act, the
Cancer Institute and venereal disease
control programs. In order to make
this bill a part of the public health
code, we simply amended the code and
raised the ceiling to $30,000,000. This
-------
1202
LEGAL COMPILATION—GENERAL
bill, H.R. 4512, now before us, pro-
vides for an additional expenditure of
only $10,000,000 a year. Of that
amount the greater portion of it will
be spent largely in the matter of re-
search and investigation by the Na-
tional Mental Health Institute. There
will be available some funds that may
be spent for grants-in-aid to States or
private institutions, or to political sub-
divisions, if certain requirements are
met and if the application for such
grant-in-aid is approved. It might de-
velop, as I mentioned a short time ago,
that some hospital in the gentleman's
district, some hospital connected per-
haps with a university, will be carry-
ing on a special research experiment
in this field of mental health, and it
might become necessary or advisable
to lease some particular building or
clinic to further develop that project.
It would be possible under such a con-
dition, and provided the request for
such a grant were recommended by
the National Advisory Mental Health
Council and approved by the Surgeon
General as well as by the Federal Se-
curity Administrator, for a grant-in-
aid to be made in cooperation with
the National Mental Health Institute
to carry out such a program.
[p. 2291]
Mr. PRIEST. In paying part of the
cost; no. This is not a matching fund
proposition. May I say to the gentle-
man that it follows almost word for
word, insofar as its provisions are
concerned, the Cancer Institute Act,
the tuberculosis, and other programs
of that nature. It is not a matching
fund proposition. There is only
$10,000,000 additional money made
available. That is a rather small be-
ginning, in a way, in this great fertile
field for investigation and research.
There is no provision for State par-
ticipation on a matching-fund basis.
The big thought, the big purpose, the
great objective of the bill is to begin
to train personnel, to begin to con-
duct more adequate research and coor-
dinate all of the activities in this field,
and to furnish an impetus for State
and other subdivisions to do what the
gentleman from Missouri has just said
was being done in his State; to devote
more attention to getting mental pa-
tients out of hospitals rather than
locking the doors on them and keep-
ing them there the rest of their lives.
Mr. KNUTSON. The national debt
is now approaching the saturation
point. There is not a State treasury
but what is infinitely better situated
than the Federal Government. Is
seems to me that the time has come
when we should begin drawing on the
States.
[p. 2292]
Mr. GWYNNE of Iowa. Mr. Chair-
man, I doubt the advisability of this
legislation at this time. It seems to me
the conduct of this Congress in con-
stantly adding to the national debt and
in constantly building up bureaucracy
is driving more people crazy than this
bill will ever cure.
This is another grant-in-aid bill. In
other words, this Congress could not
legislate in this field if it did not buy
the right from the States and pay the
States for giving that right, with
their own money. This is a grant-in-
aid bill, although matching is not re-
quired. I will say that.
* * * * *
[p. 2293]
Mr. BROWN of Ohio. Mr. Chair-
man, I yield myself the balance of the
time on this side.
Mr. Chairman, it is rather depress-
ing to sit here today and realize how
much misinformation or lack of in-
formation obtains on this particular
piece of legislation. I have great fond-
ness and respect for my colleague
from Ohio, Dr. SMITH, who is a very
able medical man—one who has de-
voted a portion of his life in visiting
the great research medical centers of
-------
STATUTES AND LEGISLATIVE HISTORY
1203
America and across the seas to study
and to learn the latest in the field of
medical science. Evidently Dr. SMITH
appreciated the value of those great
research centers or he would not have
attended therii. I know, too, that the
doctor is a great defender of State
rights and that he is a great believer
in economy. Yet at times I am fearful
my old friend and colleague, in looking
at the forest, cannot see it for the few
trees that are directly in front of him.
I am fearful that at times, in his de-
sire to economize, he actually brings
about greater expenditure of public
moneys because of his failure or re-
fusal to spend a little at the proper
time.
The doctor is opposed to socialized
medicine. Certainly, too, I am opposed
to socialized medicine; and I say to
you that this bill is designed and is
brought here for the purpose of pre-
venting the enactment of legislation
which would actually socialize medi-
cine. Unless we have the good judg-
ment and the common sense to enact
legislation that will permit private
medicine and private and local insti-
tutions to render the service the peo-
ple demand in the medical field, then
we may find ourselves drifting into
socialized medicine. I do not want that
to occur.
The gentleman from Iowa [Mr.
GWYNNE] is another fine Member. I
have high respect for his judgment,
and certainly there is no man in this
body who is a more profound, capable,
or able student of the law and of the
Constitution than is he. However, he
made the statement that the various
States are already rendering this men-
tal-research service through their
public-welfare departments and their
State hospitals. I am not certain
where the gentleman obtained his in-
formation. Certainly not from the rec-
ord, because the record before us
proves exactly the contrary—directly
opposite, if you please. Every State
welfare department in the Nation—
every State department of health—
came on asking for this bill, either di-
rectly or through their chosen repre-
sentatives, saying to this committee,
which spent days and days on hear-
ings, that this legislation is necessary
and that this legislation, if enacted
into law, and if this Medical Health
Center is established and the research
work provided therein is carried on as
intended and expected, many millions
of dollars will be annually saved by
the States in the future.
Every organization, medical and
otherwise, interested in the problems
of mental health in the United States,
has come here and told us that the
only way we can have the mental-
disease research that is so badly
needed in this country, the only way
we can obtain and disseminate to the
various State and local hospitals, in-
formation and knowledge, on the new
methods, and the new means to com-
bat and solve the present mental
health problems that confront this
Nation, is through the enactment of
legislation such as this.
As I said in the beginning, when I
discussed the rule, I do not want the
Federal Government in the field of
private medicine, but I do believe the
Federal Government belongs in the
field of medical research. There are
certain things which Government can
do that belong primarily to the Fed-
eral Government. There is another
field into which the Federal Govern-
ment should never enter. This bill
provides for one of the things that can
and should be done by the Federal
Government.
[p. 2294]
Mr. KEEFE.
I am pleased that the committee has
seen fit to bring before this Congress
this authorizing legislation that will
-------
1204
LEGAL COMPILATION—GENERAL
permit the Government, acting through
this Congress, to authorize appropri-
ations up to $30,000,000, to be allo-
cated to the States, in accordance with
the formula herein set forth.
* * * * *
Mr. KEEFE. And in that institu-
tion to conduct the research that may
be spread out and disseminated to the
State institutions, to enable them to
more vigorously and more effectively
deal with this evergrowing menace of
mental illness.
[p. 2295]
1.12b(4)(b) June 15: Amended and passed Senate, p. 6995
AMENDMENT OP PUBLIC HEALTH SERVICE
ACT
Mr. TAPT. Mr. President, yester-
day the Senate passed Calendar No.
1378, House bill 4512, a bill to amend
the Public Health Service Act to pro-
vide for research relating to psychi-
atric disorders and to aid in the devel-
opment of more effective methods of
prevention, diagnosis, and treatment
of such disorders, and for other pur-
poses. The bill was passed in such
haste that no consideration was given
to the committee amendments. I move
that the vote by which the bill was
passed be reconsidered.
The ACTING PRESIDENT pro
tempore. The question is on agreeing
to the motion of the Senator from
Ohio.
The motion was agreed to.
Mr. AIKEN. Mr. President, does
the Senator intend to have the bill
taken up now?
Mr. TAFT. The bill was passed yes-
terday, and, unfortunately, without
amendments being agreed to which
had been proposed by the committee.
Mr. BARKLEY. I may say, Mr.
President, that the fact that the com-
mittee amendments were not acted
upon was a mere oversight, and the
Senator from Ohio has moved that
the Senate reconsider the vote by
which the bill was passed.
Mr. TAFT. Yes. It has been pro-
posed to amend one of the committee
amendments.
The ACTING PRESIDENT pro
tempore. The bill will be read by ita
title.
The LEGISLATIVE CLERK. A bill
(H.R. 4512) to amend the Public
Health Service Act to provide for re-
search relating to psychiatric disor-
ders and to aid in the development of
more effective methods of prevention,
diagnosis, and treatment of such dis-
orders and for other purposes.
The ACTING PRESIDENT pro
tempore. Is there objection to the
present consideration of the bill?
There being no objection, the Sen-
ate proceeded to consider the bill
which had been reported from the
Committee on Education and Labor
with amendments.
The first amendment was, on page
5, in line 10, to strike out:
Three of the appointed members shall be
selected from a panel of six such authoritiea
to be submitted to the Surgeon General by
the deans of the approved medical colleges
and schools in the United States.
The amendment was agreed to.
The next amendment was, on page
8, in line 14, after the word "Admin-
istrator", to strike out "Provided,
That consent of a legal guardian shall
be obtained before the transfer of any
patient from Saint Elizabeths Hospi-
tal for such treatment."
The amendment was agreed to.
The next amendment was, on page
9, in line 3 after the word "institu-
tions", to insert "including grants to
such institutions for the construction,
acquisition, and leasing of hospital,
-------
STATUTES AND LEGISLATIVE HISTORY
1205
clinic, laboratory, and related facili-
ties, but only to the extent necessary
for the purposes of such training and
instruction."
The amendment was agreed to.
The next amendment was, on page
13, in line 21, after the word "ex-
ceed", to strike out "$4,500,000" and
insert "$10,000,000."
Mr. TAFT. Mr. President, on page
13, in line 21, I move that "$10,000,-
000" be stricken out and in lieu there-
of "$7,500,000" be substituted. That
was the condition upon which the ob-
jections to consideration of the bill
were withdrawn yesterday.
The ACTING PRESIDENT pro
tempore. The question is on agreeing
to the amendment of the Senator from
Ohio to the committee amendment on
page 13, in line 21.
The amendment to the amendment
was agreed to.
The amendment as amended was
agreed to.
The ACTING PRESIDENT pro
tempore. That concludes the commit-
tee amendments.
The bill is before the Senate and
open to further amendment. If there
be no further amendment to be pro-
posed, the question is on the engross-
ment of the amendments and the third
reading of the bill.
The amendments were ordered to be
engrossed and the bill to be read a
third time.
[p. 6995]
1.12b(4)(c) June 26: Senate agrees to conference report, p. 7584
AMENDMENTS or PUBLIC HEALTH SEKVICE ACT
RELATING TO PSYCHIATRIC DISORDERS—CON-
FERENCE REPORT
Mr. PEPPER submitted the following report:
The committee of conference on the dis-
agreeing votes of the two Houses on the
amendments of the Senate to the bill (H. R.
4512) to amend the Public Health Service Act
to provide for research relating to psychiatric
disorders and to aid in the development of
more effective methods of prevention, diag-
nosis, and treatment of such disorders, and
for other purposes, having met, after full and
free conference, have agreed to recommend
and do recommend to their respective Houses
as follows:
That the Senate recede from its amendment
numbered 2.
That the House recede from its disagree-
ment to the amendments of the Senate num-
bered 1 and 4 and agree to the same.
That the House recede from its disagree-
ment to the amendment of the Senate num-
bered 3, and agree to the same with an amend-
ment, as follows: In lieu of the matter pro-
posed to be inserted by the Senate amendment
insert the following: ", but only to the extent
necessary for the purposes of such training
and instruction"; and the Senate agree to
the same.
CLAUDE PEPPER,
JAMES E. MURRAY,
LISTER HILL,
ROBERT A. TAFT,
GEORGE D. AIKEN,
Managers on the Part of the Senate.
3. PERCY PRIEST,
ALFERD L. BULWINKLE,
VIRGIL CHAPMAN,
CLARENCE J. BROWN,
THOMAS D. WINTER,
Managers on the Part of the House.
Mr. PEPPER. Mr. President, I ask
unanimous consent for the present
consideration of the report.
Mr. WHITE. Mr. President, let me
inquire of the Senator from Florida
whether the report represents the
unanimous action on the part of the
Senate conferees.
Mr. PEPPER. It is unanimous. The
Senator from Ohio [Mr. TAFT] was
one of the conferees, and he is on the
floor at this time.
Mr. TAFT. Mr. President, if the
Senator from Florida will yield to me,
let me say that the Senator from Ver-
mont [Mr. AIKEN] and I took part in
the conference, and I think the report
is entirely satisfactory. The House
conferees yielded in regard to the
amount involved for the construction
of the buildings, and the conferees on
the part of the Senate yielded on one
or two minor amendments.
-------
1206
LEGAL COMPILATION—GENERAL
The PRESIDING OFFICER. Is
there objection to the present consid-
eration of the report?
There being no objection, the report
was considered and agreed to.
[p. 7584]
1.12b(4)(d) June 28: House agrees to conference report, p. 7926
Mr. PRIEST. Mr. Speaker, this is
a unanimous report from the commit-
tee on conference.
There were four amendments to the
bill as it passed the House. The Sen-
ate receded on two, the House receded
on one, and an agreement with an
amendment was worked out on the
other. It is a unanimous report.
Mr. Speaker, I yield 2 minutes to
the gentleman from Ohio [Mr.
BROWN] .
Mr. BROWN of Ohio. Mr. Speaker,
as the gentleman from Tennessee has
said, this is a unanimous report of the
conference committee. The House
yielded, in fact, on only one amend-
ment, and that was a slight increase
in the amount set up in the bill for the
construction of the research center at
Bethesda and was necessary because
of the fact that the original estimated
cost had been made in 1939 or early
1940 before the present increase in
construction costs had come about. The
increase allowed is simply enough to
cover the increased costs of construc-
tion.
Mr. MARTIN of Massachusetts. Mr
Speaker, will the gentleman yield?
Mr. BROWN of Ohio. I yield.
Mr. MARTIN of Massachusetts. I
should like to know what the gentle-
man considers a slight increase these
days.
Mr. BROWN of Ohio. This increase
happens to be from $4,500,000 to
$7,500,000—a $3,000,000 increase. It
does not accurately reflect the cost
which has come about under the hold-
the-line order of the administration
of the gentleman from Tennessee, but
we held it down to as close a percent-
age as we could. If we had provided
for the actual increase, we should
probably have had to double the
amount. In fact, they figure that the
total increase would bring the cost to
something like $11,500,000, but the
House committee as usual stood for
economy and was able to hold it to
$7,500,000.
The SPEAKER. The question is on
agreeing to the conference report.
The conference report was agreed
to.
[p. 7926]
1.12c NATIONAL HEART ACT
June 16,1948, P.L. 80-655, §§ 4 (e,f), 5, 6, 62 Stat. 467
NATIONAL ADVISORY HEART COUNCIL
SEC. 4. (a) Section 217 of such Act is amended by adding at the
end thereof the following new subsection:
*******
(e) Paragraph (d) of section 301 of such Act is amended to
read as follows:
-------
STATUTES AND LEGISLATIVE HISTORY 1207
" (d) Make grants-in-aid to universities, hospitals, laboratories,
and other public or private institutions, and to individuals for
such research projects as are recommended by the National Advi-
sory Health Council, or, with respect to cancer, recommended by
[p. 467]
the National Advisory Cancer Council, or, with respect to mental
health, recommended by the National Advisory Mental Health
Council, or, with respect to heart diseases, recommended by the
National Advisory Heart Council;".
(f) Paragraph (g) of such section 301 is amended to read as
follows:
" (g) Adopt, upon recommendation of the National Advisory
Health Council, or, with respect to cancer, upon recommendation
of the National Advisory Cancer Council, or, with respect to men-
tal health, upon recommendation of the National Advisory Mental
Health Council, or, with respect to heart diseases, upon recommen-
dation of the National Advisory Heart Council, such additional
means as he deems necessary or appropriate to carry out the
purposes of this section."
CONTROL GRANTS
SEC. 5. (a) Section 314 of such Act is amended by redesignating
subsections (e) to (j), inclusive, as subsections (f), (g), (h), (i),
(j), and (k), respectively, and by inserting after subsection (d)
the following new subsection:
"(e) To enable the Surgeon General to carry out the purposes
of part B of title IV and to assist, through grants, States, counties,
health districts, and other political subdivisions of the State, and
public and nonprofit agencies, institutions, and other organiza-
tions, in establishing and maintaining organized community pro-
grams of heart disease control, including grants for demonstra-
tions and the training of personnel, there is hereby authorized to
be appropriated for each fiscal year such sums as may be neces-
sary for such purposes. For each fiscal year, the Surgeon General,
with the approval of the Administrator, shall determine the total
sum from the appropriation under this subsection which shall be
available for allotment among the several States, and shall, in
accordance with regulations, from time to time make allotments
from such sum to the several States on the basis of (1) the
population and (2) the financial need of the respective States.
Upon making such allotments the Surgeon General shall notify the
Secretary of the Treasury of the amounts thereof."
-------
1208 LEGAL COMPILATION—GENERAL
Ob) The subsection of such section 314 herein redesignated as
subsection (f) is amended by striking out the period at the end of
the first sentence of such subsection and inserting in lieu thereof
the following: ": Provided, That in the case of amounts to be paid
from allotments to any State under subsection (e), the Surgeon
General may determine and certify to the Secretary of the Treas-
ury amounts to be paid to a county, health district, other political
subdivision of the State or to any public or nonprofit agency,
institution, or other organization in the State, if he finds that
payment to such subdivision or other organization has been recom-
mended by the State health authority of the State, and (1) that
the State health authority has not, prior to August 1 of the fiscal
year for which the allotment is made, presented and had approved
a plan in accordance with subsection (g), or (2) that the State
health authority is not authorized by law to make payments to
such other organization."
(c) The subsection of such section 314 herein redesignated as
subsection (g) is amended to read as follows:
" (g) The moneys so paid to any State, or to any political subdi-
vision or other organization, shall be expended solely in carrying
out the purposes specified in subsection (a), or subsection (b), or
subsection (c), or subsection (e), as the case may be, and in
accordance with plans, approved by the Surgeon General, which
have been presented by the health authority of such State, or,
under the circumstances specified in subsection (f) (1), by the
political subdivision, or the agency, institution or other organiza-
[p. 468]
tion to whom the payment is made, and, to the extent that any
such plan contains provisions relating to mental health, by the
mental health authority of such State."
(d) The subsection of such section 3.14 herein redesignated as
subsection (h) is amended to read as follows:
"(h) Money so paid from allotments under subsections (a),
(b), (c), and (e), shall be paid upon the condition that there shall
be spent in such State for the same general purpose from funds of
such State and its political subdivisions (or in the case of pay-
ments to a political subdivision or to an agency, institution or
other organization under circumstances specified in subsection (f)
(1), from funds of such political subdivision or organization), an
amount determined in accordance with regulations."
(e) The subsection of such section 314 herein redesignated as
subsection (i) is amended to read as follows:
-------
STATUTES AND LEGISLATIVE HISTORY 1209
"(i) Whenever the Surgeon General, after reasonable notice
and opportunity for hearing to the health authority or, where
appropriate, the mental health authority of the State (or, in the
case of payments to any political subdivision or any agency, insti-
tution, or other organization under the circumstances specified in
subsection (f) (1), such subdivision or organization) finds that,
with respect to money paid to the State, subdivision, or organiza-
tion out of appropriations under subsection (a), or subsection
(b), or subsection (c), or subsection (e), as the case may be,
there is a failure to comply substantially with either—
" (1) the provisions of this section ;
"(2) the plan submitted under subsection (g); or
"(3) the regulations;
the Surgeon General shall notify such State health authority or
mental health authority, political subdivision, or organization that
further payments will not be made to the State subdivision, or
organization from appropriations under such subsection (or in his
discretion that further payments will not be made to the State,
subdivision, or organization from such appropriations for activi-
ties in which there is such failure), until he is satisfied that there
will no longer be any such failure. Until he is so satisfied the
Surgeon General shall make no further certification for payment
to such State, subdivision, or organization from appropriations
under such subsection, or shall limit payment to activities in
which there is no such failure."
GENERAL PROVISIONS
SEC. 6. (a) Section 2 of the Public Health Service Act, as
amended, is amended by striking out the word "and" at the end of
paragraph (1), by striking out the period at the end of paragraph
(m) and inserting in lieu thereof "; and", and by inserting after
paragraph (m) the following new paragraph:
" (n) The term 'heart diseases' means diseases of the heart and
circulation."
(b) The term "National Institute of Health", wherever appear-
ing in the Public Health Service Act, is hereby changed to "Na-
tional Institutes of Health".
(c) The word "title", wherever appearing in sections 403, 404,
and 406 of the Public Health Service Act, is hereby changed to
"part".
Approved June 16,1948.
[p. 469]
-------
1210 LEGAL COMPILATION—GENERAL
1.12c(l) SENATE COMMITTEE ON LABOR AND
PUBLIC WELFARE
S. REP. No. 1298. 80th Cong., 2d Sess. (1948)
PROVIDING FOR RESEARCH AND CONTROL RELATING
TO DISEASES OF THE HEART AND CIRCULATION
MAY 17 (legislative day, MAY 10), 1948.—Ordered to be printed
Mr. SMITH, from the Committee on Labor and Public Welfare,
submitted the following
REPORT
[To accompany S. 2215]
The Committee on Labor and Public Welfare, to whom was
referred the bill (S. 2215) to provide for research and control
relating to diseases of the heart and circulation, having considered
the same, report favorably thereon with amendments and recom-
mend that the bill as amended do pass.
The amendment recommended by the committee is as follows:
Strike out the preamble and strike out all after the enacting
clause and insert the following:
*******
[P. l]
The basic purpose of S. 2215, as amended, is to give proper
recognition to the problem and to place more emphasis on cardio-
vascular research and control activities. More specifically, it is in-
tended to authorize research, training, and control activities in the
field of cardiovascular diseases comparable to those already au-
thorized for cancer and mental diseases. Although the Public
Health Service Act (Public Law 410, 78th Cong.) now provides
rather broad authorization for the conduct of public-health re-
search, including cardiovascular research, it does not provide for
the establishment of an advisory council of outstanding experts in
the cardiovascular field to head up and coordinate a research pro-
gram of this type, nor does it contain other comparable authoriza-
tions that have been provided for the cancer and mental-health
programs.
In recommending passage of S. 2215, as amended, it is the
intention of the committee to authorize the United States Public
-------
STATUTES AND LEGISLATIVE HISTORY 1211
Health Service, through its National Institute of Health, to oper-
ate in the field of cardiovascular diseases in a manner comparable
to its present operations in the fields of cancer and mental di-
seases. Accordingly, S. 2215, as originally introduced, was re-
drafted as an amendment to the Public Health Service Act, em-
bodying the same applicable provisions that now govern these
other fields. The committee is of the opinion that at this time the
general authorization should be comparable for each field.
Although the committee is convinced that appropriate emphasis
needs to be given to research and control in various diseases,
particularly those that are the major causes of death and disabil-
ity, it does not believe that further, extensive categorization of
research, with a compartment for every conceivable disease, would
represent sound policy. It is an indisputable fact that discoveries
leading to the control of diseases frequently may come from basic
scientific research not specifically identified with a particular dis-
ease. Accordingly, while approving at this time the principle of
placing special emphasis on heart disease, the leading cause of
death, the committee does not subscribe to a policy of complete
compartmentalization of research for all diseases.
EXPLANATION OF THE BILL BY SECTIONS
[p. 5]
Section 4: This section provides for the creation of a National
Advisory Heart Council, consisting of six members appointed by
the Surgeon General, with the approval of the Federal Security
Administrator, to be selected from leading medical or scientific
authorities who are outstanding in the study, diagnosis, or treat-
ment of heart diseases. The Surgeon General ex officio is the chair-
man of the council.
This section also provides minor changes in the existing lan-
guage of specified parts of the Public Health Service Act, simply
incorporating appropriate reference to the National Advisory
Heart Council.
Section 5: This section merely provides certain typographic
changes and general provisions made necessary by this act. This
section also amends the title of the bill.
[P. 6]
-------
1212 LEGAL COMPILATION—GENERAL
1.12c(2) HOUSE COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
H.R. REP. No. 2144 80th Cong., 2d Sess. (1948)
AMENDING THE PUBLIC HEALTH SERVICE ACT TO PRO-
VIDE FOR A NATIONAL HEART INSTITUTE
JUNE 2, 1948.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. WOLVERTON, from the Committee on Interstate and Foreign
Commerce, submitted the following
REPORT
[To accompany S. 2215]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (S. 2215) to amend the Public Health Service
Act to support research and training in diseases of the heart and
circulation, and to aid the States in the development of community
programs for the control of these diseases, and for other purposes
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment strikes out all after the enacting clause of
S. 2215 and inserts new matter which is printed in the appendix
to this report.
[p. l]
GENERAL STATEMENTS
Another provision of the committee amendment makes a clear-
cut authorization for grants-in-aid in support of programs of
heart-disease detection, prevention, and related control activities.
These control activities, in the committee's opinion, are as vital as
are the provisions relating to research. For it is upon these so-
called control activities that we must depend to bridge the gap
between basic research discoveries and the application of these
discoveries to the benefit of victims of heart disease.
[p. 3]
-------
STATUTES AND LEGISLATIVE HISTORY 1213
EXECUTIVE OFFICE OF THE PRESIDENT,
BUREAU OF THE BUDGET,
Washington 25, D.C., April 7,191*8.
Hon. ROBERT TAFT,
Chairman, Committee on Labor and Public Welfare,
United States Senate, Washington 25, B.C.
MY DEAR SENATOR TAFT : In response to your request of March 1, 1948, for
the views of the Bureau of the Budget regarding the provisions of S. 2215, a
bill to provide for research and control relating to diseases of the heart and
circulation, the following comment is offered.
Much of the basic authority which would be provided in this bill already
exists in the Public Health Service Act. Section 301 of that act already gives
broad authority, including unlimited appropriation authorization, for financ-
ing both intramural and extramural "* * * research, investigation, experi-
ments, demonstrations, and studies relating to the causes, diagnosis, treat-
ment, control, and prevention of physical and mental diseases and impair-
ments of man * * *." This section also authorizes the establishment and
maintenance of research fellowships. Section 314 (c) of the act gives broad
authority (within a $30,000,000 annual appropriation limitation) for making
grants to States for maintaining adequate public health services, including
grants for the training of personnel for State and local public health work.
To aid in planning and administering the Public Health Service research
program, consultative and advisory services are provided to the Surgeon Gen-
eral by the National Advisory Health Council and he has authority to secure
such experts as may be desired for this purpose. There already has been estab-
lished by the National Institute of Health of the Service a Cardiovascular
Study Section, composed of specialists in heart disease, which is regularly
available for consultation and advice with regard to research activities and
proposals relating to that field.
Action has already been taken by the Congress upon the President's budget
recommendations, making available funds to construct a large clinical re-
search laboratory building at the National Institute of Health, which will
stress research in cardiovascular diseases.
Section 2(d) of the bill would authorize grants-in-aid for education, includ-
ing grants for construction of educational facilities. While there is little
doubt that improvement and expansion of medical and related education is
needed to provide adequate trained personnel to improve the Nation's health,
the advisability of providing for such aid on the basis of each disease category
is questioned. It would seem that Federal aid to education, at least in the
health field and probably in the total field of higher education, should be ap-
proached on an integrated basis.
The bill would establish within the Public Health Service a National Heart
Institute and would change the name of the National Institute of Health to
the National Institutes of Health. In the medical research field the premium
is upon the closest possible interchange of information and ideas, and upon
flexibility in the assignment and use of personnel and equipment. To achieve
this close working relationship the Congress has authorized the construction
of a great new medical research center at Bethesda which is to house in one
building scientists and doctors working on a wide variety of medical research
problems. Cancer, cardiovascular diseases, and mental health will be three of
the principal points of emphasis, but a great many other types of research
-------
1214 LEGAL COMPILATION—GENERAL
will be extensively pursued. When the building is complete it will house three
institutes: The National Institute of Health, the National Cancer Institute,
and the National Institute of Mental Health. What seems to us to be already
needed is not the building of additional organizational walls within this great
new institution by the creation of a new institute for each disease, creating
greater rigidity and more overhead cost for each institute. Rather, what seems
important is the exercise of every effort toward the closest possible organiza-
tional relationship of the men and women who are being brought together in
the new research center.
Section 7(f) of the bill would authorize the payment of salaries up to
$15,000 for the services of specially qualified scientific and professional per-
sonnel concerned with research activities in the National Institute of Health,
one bureau in the Public Health Service. While the National Institute of
Health is the main research bureau of the Service, much valuable research
is carried on by other bureaus of the Service. This provision should not be
extended to the one bureau, but should be Service-wide.
[P-18]
The emphasis placed upon and expenditures made by the Public Health
Service for research in and control of cardiovascular diseases is progressively
increasing. The rate by which these activities can be expanded is limited by
the number of qualified persons in the cardiovascular field. Most of the basic
authority which enactment of S. 2215 would provide already exists in the
Public Health Service Act. Provision for graduated expansion of adequately
planned programs under existing law would appear to make for a more inte-
grated and effective attack on cardiovascular diseases. At some early date it
would be necessary to increase the $30,000,000 limitation in section 314 (c) of
the existing law to provide additional grants to States for State and local con-
trol activities.
Sincerely yours,
FRANK PACE, Jr.,
Acting Director.
[p. 19]
"NATIONAL ADVISORY HEALTH, CANCER, HEART, AND MENTAL COUNCILS."
(c) Paragraph (d) of section 301 of such Act is amended to read as fol-
lows:
"(d) Make grants-in-aid to universities, hospitals, laboratories, and other
public or private institutions, and to individuals for such research projects
as are recommended by the National Advisory Health Council, or with respect
to cancer, recommended by the National Advisory Cancer Council, or, with
respect to mental health, recommended by the National Advisory Mental
Health Council, or, with respect to heart diseases, recommended by the Na-
tional Advisory Heart Council;".
(f) Paragraph (g) of such section 301 is amended to read as follows:
"(g) Adopt, upon recommendation of the National Advisory Health Coun-
cil, or, with respect to cancer, upon recommendation of the National Advisory
Cancer Council, or, with respect to mental health, upon recommendation of
the National Advisory Mental Health Council, or, with respect to heart dis-
-------
STATUTES AND LEGISLATIVE HISTORY 1215
eases, upon recommendation of the National Advisory Heart Council, such.
additional means as he deems necessary or appropriate to carry out the pur-
poses of this section."
[p.28]
CONTROL GRANTS
SEC. 5. (a) Section 314 of such Act is amended by redesignating subsections
(e) to (j), inclusive, as subsections (f), (g), (h), (i), (j), and (k), respec-
tively, and by inserting after subsection (d) the following new subsection:
"(e) To enable the Surgeon General to carry out the purposes of part B of
title IV and to assist, through grants, States, counties, health districts, and
other political subdivisions of the State, and public and nonprofit agencies, in-
stitutions, and other organizations, in establishing and maintaining organized
community programs of heart disease control, including grants for demon-
strations and the training of personnel, there is hereby authorized to be ap-
propriated for each fiscal year such sums as may be necessary for such pur-
poses. For each fiscal year, the Surgeon General, with the approval of the
Administrator, shall determine the total sum from the appropriation under
this subsection which shall be available for allotment among the several
States, and shall, in accordance with regulations, from time to time make
allotments from such sum to the several States on the basis of (1) the popu-
lation and (2) the financial need of the respective States. Upon making such
allotments the Surgeon General shall notify the Secretary of the Treasury of
the amounts thereof."
(b) The subsection of such section 314 herein redesignated as subsection
(f) is amended by striking out the period at the end of the first sentence of
such subsection and inserting in lieu thereof the following: ": Provided, That
in the case of amounts to be paid from allotments to any State under subsec-
tion (e), the Surgeon General may determine and certify to the Secretary of
the Treasury amounts to be paid to a county, health district, other political
subdivision of the State or to any public or nonprofit agency, institution, or
other organization in the State, if he finds that payment to such subdivision
or other organization has been recommended by the State health authority of
the State, and (1) that the State health authority has not, prior to August 1
of the fiscal year for which the allotment is made, presented and had approved
a plan in accordance with subsection (g), or (2) that the State health author-
ity is not authorized by law to make payments to such other organization."
(c) The subsection of such section 314 herein redesignated as subsection
(g) is amended to read as follows:
"(g) The moneys so paid to any State, or to any political subdivision or
other organization, shall be expended solely in carrying out the purposes
specified in subsection (a), or subsection (b), or subsection (c), or subsec-
tion (e), as the case may be, and in accordance with plans, approved by the
Surgeon General, which have been presented by the health authority of such
State, or, under the circumstances specified in subsection (f) (1), by the politi-
cal subdivision, or the agency, institution or other organization to whom the
payment is made, and, to the extent that any such plan contains provisions
relating to mental health, by the mental health authority of such State."
(d) The subsection of such section 314 herein redesignated as subsection
(h) is amended to read as follows:
"(h) Money so paid from allotments under subsections (a), (b), (c), and
-------
1216 LEGAL COMPILATION—GENERAL
(e), shall be paid upon the condition that there shall be spent in such State
for the same general purpose from funds of such State and its political sub-
divisions (or in the case of payments to a political subdivision or to an
agency, institution, or other organization under circumstances specified in
subsection (f) (1), from funds of such political subdivision or organization),
an amount determined in accordance with regulations."
(c) The subsection of such section 314 herein redesignated as subsection
(i) is amended to read as follows:
"(i) Whenever the Surgeon General, after reasonable notice and opportu-
nity for hearing to the health authority or, where appropriate, the mental
health authority of the State (or, in the case of payments to any political
subdivision or any agency, institution, or other organization under the cir-
cumstances specified in subsection (f)(l), such subdivision or organization)
finds that, with respect to money paid to the State, subdivision, or organiza-
tion out of appropriations under subsection (a), or subsection (b), or sub-
section (c), or subsection (e), as the case may be, there is a failure to comply
substantially with either—
"(1) the provisions of this section;
"(2) the plan submitted under subsection (g); or
" (3) the regulations;
[p. 29]
the Surgeon General shall notify such State health authority or mental health
authority, political subdivision, or organization that further payments will
not be made to the State subdivision, or organization from appropriations
under such subsection (or in his discretion that further payments will not be
made to the State, subdivision, or organization from such appropriations for
activities in which there is such failure), until he is satisfied that there will
no longer be any such failure. Until he is so satisfied the Surgeon General
shall make no further certification for payment to such State, subdivision, or
organization from appropriations under such subsection, or shall limit pay-
ment to activities in which there is no such failure."
GENERAL PROVISIONS
SEC. 6. (a) Section 2 of the Public Health Service Act, as amended, is
amended by striking out the word "and" at the end of paragraph (1), by strik-
ing out the period at the end of paragraph (m) and inserting in lieu thereof
":and", and by inserting after paragraph (m) the following new paragraph:
"(n) The term 'heart diseases' means diseases of the heart and circulation."
(b) The term "National Institute of Health", wherever appearing in the
Public Health Service Act, is hereby changed to "National Institutes of
Health".
(c) The word "title", wherever appearing in sections 403, 404, and 406 of
the Public Health Service Act, is hereby changed to "part".
(d) Section 209 of such Act is amended by adding at the end thereof the
following new subsection:
"(g) The Administrator is authorized to establish and fix the compensa-
tion for, within the Public Health Service, not more than thirty positions, in
the professional and scientific service, each such position being established to
effectuate those research and development activities of the Public Health
Service which require the services of specially qualified scientific or profes-
-------
STATUTES AND LEGISLATIVE HISTORY
1217
sional personnel: Provided, That the rates of compensation for positions
established pursuant to the provisions of this subsection shall not be less than
$10,000 per annum nor more than $15,000 per annum, and shall be subject to
the approval of the Civil Service Commission. Positions created pursuant to
this subsection shall be included in the classified civil service of the United
States, but appointments to such positions shall be made without competitive
examination upon approval of the proposed appointee's qualifications by the
Civil Service Commission or such officers or agents as it may designate for
this purpose."
(e) Section 633 (b) of the Public Health Service Act is amended by strik-
ing out "$25" and by inserting in lieu thereof "$50."
[p. 30]
1.12c(3) CONGRESSIONAL RECORD, VOL. 94 (1948)
1.12c(3)(a) May 24: Amended and passed Senate, pp. 6297, 6298
Mr. SMITH. Mr. President, the
committee, after considering the bill,
felt that the proper handling of the
matter was to establish an institute
identical in form with the present in-
stitute for research in cancer. Conse-
quently we have offered an amend-
ment containing practically all the
provisions as then introduced and pro-
viding for handling the question as it
is done under provisions of the Public
Service Health Act. It is identical in
form with the present provisions for
research in the field of cancer. The
committee reported the bill unani-
mously, and I sincerely hope that it
will be passed.
In answer to the question as to the
amount of the appropriation, no
amount is fixed. It will be necessary
for the institute to request appropria-
tions.
Mr. WHERRY. I am very much in
sympathy with the bill, but I felt that
it should be pointed out that it is an
authorization bill and that appropria-
tions will have to be made upon a
showing before the Appropriations
Committee.
Mr. SMITH. That is correct. It will
be operated on the same basis as the
cancer research is handled at the
present time, through private agen-
cies as in the case of cancer.
The PRESIDENT pro tempore.
T he clerk will state the committee
amendment.
The amendment was to strike out
all after the enacting clause and in-
sert:
That this act may be cited as the "National
Heart Act."
PURPOSE
SEC. 2. The purpose of this act is to im-
prove the health of the people of the United
States through the conduct of researches,
investigations, experiments, and demonstra-
tions relating to the cause, prevention, and
methods of diagnosis and treatment of dis-
eases of the heart and circulation; assist and
foster such researches and other activities
by public and private agencies, and promote
the coordination of all such researches and
activities and the useful application of their
results; provide training in matters relating
to heart diseases, including refresher courses
for physicians; and develop, and assist States
and other agencies in the use of, the most
effective methods of prevention, diagnosis,
and treatment of heart diseases.
NATIONAL ADVISORY HEART COUNCIL
SEC. 4. (a) Section 217 of such act is
amended by adding at the end thereof the
following new subsection:
[p. 6297]
-------
1218
LEGAL COMPILATION—GENERAL
(d) Subsection (e) of section 209 of such
act is amended to read as follows:
(e) Members of the National Advisory
Health Council, members of the National Ad-
visory Mental Health Council, members of
the National Advisory Cancer Council, and
members of the National Advisory Heart
Council, other than ex officio members, while
attending: conferences or meetings of their
respective Councils or while otherwise serv-
ing at the request of the Surgeon General,
shall be entitled to receive compensation at
a rate to be fixed by the Administrator, but
not exceeding $25 per diem, and shall also be
entitled to receive an allowance for actual
and necessary traveling and subsistence ex-
penses while so serving away from their
places of residence."
(e) Paragraph (d) of section 301 of such
act is amended to read:
" (d) Make grants-in-aid to universities,
hospitals, laboratories, and other public or
private institutions, and to individuals for
such research projects as are recommended
by the National Advisory Health Council, or,
with respect to cancer, recommended by the
National Advisory Cancer Council, or, -with
respect to mental health, recommended by
the National Advisory Mental Health Council,
or, with respect to heart diseases, recom-
mended by the National Advisory Heart
Council."
(f) Paragraph (g) of such section is
amended to read:
" (g) Adopt, upon recommendation of the
National Advisory Health Council, or, with
respect to cancer, upon recommendation of
the National Advisory Cancer Council, or,
with respect to mental health, upon recom-
mendation of the National Advisory Mental
Health Council, or, with respect to heart dis-
eases, upon recommendation of the National
Advisory Heart Council, such additional
means as he deems necessary or appropriate
to carry out the purposes of this section."
GENERAL PROVISIONS
SEC. 5. (a) Section 2 of the PubJic Health
Service Act is amended by striking out the
word "and" at the end- of paragraph (1), by
striking out the period at the end of para-
graph (m) and inserting in lieu thereof
"; and", and by inserting after paragraph
(m) the following new paragraph;
" (n) The term 'heart diseases' means dis-
eases of the heart and circulation."
fb) The term "National Institute of
Health," wherever appearing in the Public
Health Service Act, shall be changed to "Na-
tional Institutes of Health."
(c) The word "title," wherever appearing
in section 403, 404, and 406 of the Public
Health Service Act, shall be changed- to
"part."
Mr. MAGNUSON. Mr. President,
reserving the right to object, I should
like to ask the distinguished Senator
from New Jersey if he is satisfied
that the bill is not in conflict in any
way with the National Science Foun-
dation bill?
Mr. SMITH. Mr. President, it is
not in conflict. The scope of the bill is
different. It directly authorizes the re-
search to be done. Under the National
Science Foundation bill commissions
are established to explore the field
and to recommend. I feel that there is
no conflict between this bill and the
National Science Foundation bill.
Mr. MAGNUSON. Is it similar to
the Cancer Institute legislation?
Mr. SMITH. It is identical in its
language with the Cancer Institute
bill.
The PRESIDENT pro tempore.
The question is on agreeing to the
amendment reported by the commit-
tee.
The amendment was agreed to.
The bill was ordered to • be en-
grossed for a third reading, read the
third time, and passed.
The title was amended so as to
read: "A bill to amend the Public
Health Service Act to support re-
search and training in diseases of
the heart and circulation, and to aid
the States in the development of com-
munity programs for the control of
these diseases, and for other pur-
poses."
[p. 6298]
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STATUTES AND LEGISLATIVE HISTORY
1219
1.12c(3)(b) June 8: Amended and passed House, pp. 7405-7406
SPECIFIC PROVISIONS IN H. R. 6729
The provisions of this bill, as re-
ported by the committee are patterned
for the most part after the current
cancer program of the Public Health
Service, with some modifications
which experience under that program
has indicated to be desirable. In broad
outline this bill authorizes a well-bal-
anced program of research, training,
and control activities. While the Pub-
lic Health Service will be the focal
point in administering this program,
it is by no means limited to intra-
mural activities of the Service. On
the contrary, the bill provides for the
stimulation and assistance, in the
form of grants-in-aid, of research,
training, and control programs con-
ducted by non-Federal agencies, in-
cluding States and their political sub-
divisions, medical schools, hospitals,
laboratories, and other institutions.
The bill, as reported by the com-
mittee, while substantially the same
as S. 2215, differs from the Senate
bil! in several respects.
As passed by the Senate the bill
provides for a National Advisory
Heart Council composed of the Sur-
geon General, ex officio, and six ap-
pointed members, all of whom must be
specialists in the field of cardiovas-
cular diseases. The committee pro-
poses to extend this membership to
include three adidtional ex officio
members (representing the Army,
Navy, and Veterans' Administration)
and six additional appointed mem-
bers, who need not have any technical
or professional training in cardiovas-
cular diseases or other fields of med-
ical science. After a careful ap-
praisal of testimony on this point, the
committee is strongly of the opinion
that the inclusion of some lay mem-
bers on the Council would have a salu-
tory effect on the entire program.
Not only would it guard against any
;endency toward overemphasis of
technical considerations, but it would
also bring to the program the fresh
viewpoints and complementary talents
of men and women who have achieved
distinction in other fields of endeavor.
The provision of additional ex officio
members is designed to promote and
facilitate closer coordination among
the principal medical research agen-
cies of the Federal Government. The
committee also proposes to raise the
compensation of members of this and
other advisory councils in the Public
Health Service from $25 to $50 per
diem.
Another provision of the committee
amendment makes a clear-cut author-
ization for grants-in-aid in support of
programs of heart-disease detection,
prevention, and related control activ-
ities. These control activities, in the
committee's opinion, are as vital as
are the provisions relating to re-
search. For it is upon these so-called
control activities that we must depend
to bridge the gap between basic re-
search discoveries and the application
of these discoveries to the benefit of
victims of heart disease.
In the control provisions of this bill
the committee has followed the pat-
tern of the current cancer program of
the Public Health Service, under
which grants are made to States to
stimulate and support cancer-detec-
tion clinics, prevention and educa-
tional programs, and other control
activities. As in the case of the pres-
ent cancer program, heart-disease-
control grants may also be made,
under certain circumstances, to polit-
ical subdivisions of States and to
hospitals and other nonprofit institu-
tions. In heart disease, as well as the
degenerative diseases generally, par-
ticular emphasis must be given to the
clinical or hospital care of the patient
if we are to minimize their toll on
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1220
LEGAL COMPILATION—GENERAL
death and disability. Therefore the
committee believes that the facilities
of private institutions now equipped
to conduct such activities must not be
overlooked in planning a comprehen-
sive attack on heart disease. S. 2215
provides for traineeships for physi-
cians and research fellowships in the
National Heart Institute. The com-
mittee has expanded this provision to
authorize traineeships and research
fellowships in the institute "and else-
where." So that these opportunities
can be made available to other centers
of learning thoughout the Nation, the
committee has further amended the
bill to authorize the making of grants
to institutions which in turn offer
fellowships for study in the field of
cardiovascular diseases.
Finally, the committee recom-
mends a new provision authorizing
the Federal Security Administrator
to establish within the Public Health
Service not more that 30 professional
and scientific research positions at
rates up to $15,000 per annum with
the approval of the Civil Service Com-
mission. The language is similar to
that enacted for the Army and Navy
last year. It is increasingly clear that
the successful conduct of any medical
research program, and particularly
so with programs which must be
clearly expanded such as cardiovas-
cular research, depends upon attract-
ing and holding in key positions those
scientists who have the genius for
planning, executing, and directing
creative research of top national sig-
nificance. The success of any clinical
research program such as is needed
to make any real advance in heart
disease requires the appointment of
a few outstanding clinicians to col-
laborate closely with medical scien-
tists. Specialists of the caliber neces-
sary to assure success of the program
invested by this committee now com-
mand incomes well above even a $15,-
000 ceiling. The leadership of a rela-
tively small number of outstanding
men of science will insure more than
any other factor the scientific compe-
tence of the rest of the professional
staff in a research organization.
*****
[p. 7405]
the 9,000,000 others who suffer from
the crippling attacks by the heart
diseases. While there is no appropria-
tion in the bill, the amount required
is clearly dependent on the magnitude
of the attack Congress is willing to
make. The House approved estimate
allows the Public Health Service $2,-
644,088 for its program in cardio-
vascular diseases. This is less than
the $2,900,000 which the American
Heart Association urged be appro-
priated a year ago.
Recent estimates of the need based
on a mass attack using the available
manpower trained in this field and
the present facilities would be at
least $5,000,000 in the first year. It is
well known that no scientific or med-
ical program can proceed any faster
than the manpower and facilities
available to undertake the task. To
meet the forward program for a co-
ordinated mass attack in diseases of
the heart and circulatory system sim-
ilar to the present cancer program the
sum of $15,000,000 would be required.
Requirements for a National Heart Institute
1. Control grants to State J $3,000,000
2. Special trainees in cardiovascu-
lar diseases2 1,000,000
3. Research fellowships 2 1,000,000
4. Assistance to medical schools
for teaching1 1,760,000
5. Construction of research facil-
ities 3 3,500,000
6. Research grants4 3,750,000
7. Information center and admin-
istration" 250,000
8. National Heart Institute (intra-
mural research)6" 550,000
9. Preparation and distribution of
antistreptococcus typing serumea 100,800
10. Epidemiological studies6" 100,000
11. Demonstrations81 119,110
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STATUTES AND LEGISLATIVE HISTORY
1221
12. Technical development 57,869
IS. Survey of research and clinical
facilities * 125,000
Total 15,302,769
1 Similar to grants under National Cancer
Institute.
* 200 traineeships at $5,000 per annum; or
100 research fellowships at $5,000 per annum
for a minimum period of 2 years.
'This sum to be kept available until spent.
4 $1,875,000 to cover needs for 1 year, but
amount is doubled so as to provide for some
stability for research grants.
'Note that this is less than 2 percent of
entire requested appropriation.
• Present 1949 allowance in U.S. Public
Health Service budget, or the amount needed
for 1949. (a) Present allowance, (b) Where
additional amounts are requested.
Mr. Speaker, it will be observed
from the study of this bill and the
program proposed that it is es-
sentially an operating agency de-
signed to actively attack the diseases
of the heart and circulatory system.
There is no conflict in this bill with
the special commission on heart and
cardiovascular disease in the proposed
National Science Foundation bill,
whose function is to make a compre-
hensive survey of research, both pub-
lic and private in the heart field and
to recommend an over-all research
program in that field. The proposed
commission is by its nature an ad hoc
study group where public and private
interests in the heart field can meet
and plan an intelligent forward pro-
gram for the mass attack on heart
diseases. Mr. Speaker, H. R. 6729
would create an operating agency to
start at once an active program to
combat the ravages of heart disease.
I thank my colleagues for the wide-
spread interest they have indicated in
this bill.
Mr. KEEFE. Reserving the right to
object, Mr. Speaker, may I say that
this piece of legislation is designed to
provide a program in connection with
the study of the diseases of the circu-
lation and the heart, that will utilize
in a constructive manner the very
funds we are now appropriating to
the Public Health Service, and will
bring together at one place under
this law the expenditure of the money
we are now spending. Bear in mind
that the Congress has approved the
construction of a great research cen-
ter at Bethesda that will cost in the
aggregate perhaps $40,000,000 to con-
duct research in the field of heart,
cancer, and mental illness. You have
taken care of the mental illness by
passing the mental health bill. You
have taken care of the cancer situa-
tion by passing the cancer bill. If we
fail to pass this heart bill, and it has
the unanimous approval of everyone
familiar with the situation in this
country, we shall be taking a great
step backward and will not be follow-
ing the people of America who are
demanding that this program be put
into effect in order to try to cope
with this terrible, devastating heart
disease that affects so many people
in this country.
Mr. SCRIVNER. Mr. Speaker, will
the gentleman yield?
Mr. KEEFE. I yield to the gentle-
man from Kansas.
Mr. SCRIVNER. Can the gentleman
give the House any estimate as to
how much this bill will cost us?
Mr. KEEFE. Yes, I can tell you
how much this bill will cost.
Mr. SCRIVNER. How much?
Mr. KEEFE. It is going to cost
this next year exactly the sum of
money you have already appropriated
for that purpose.
Mr. SCRIVNER. How much is that?
Mr. KEEFE. The amount we have
already appropriated in all of the
aspects of the situation is in the
neighborhood of $3,500,000.
Mr. SCRIVNER. Does this legisla-
tion eradicate all of the objections
which were raised by the Army to the
previous bill relating to this subject?
In the report on page 15 Secretary
Royall sets out the objections; namely,
that the War Department has been
undertaking part of this program and
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1222
LEGAL COMPILATION—GENERAL
helping, and they say that the initial
appropriation is $5,000,000; and they
object to the bill.
Mr. KEEFE. There can be no addi-
tional appropriation under this bill
unless the Committee on Appropria-
tions brings an appropriation to the
Congress and the Congress approves
the appropriation.
Mr. SCRIVNER. Let me make an-
other inquiry of the gentleman, since
he is conversant with the bill. What
is the purpose of this amendment set
out here hiking the salaries of these
30 persons, whoever they may be, from
$10,000 to $15,000 a year? That has
nothing to do with the heart situation.
Mr. KEEFE. Does the gentleman
from New York desire to answer that?
Mr. JAVITS. May I just answer
both points as to the objections of the
Secretary of War?
My previous bill, H.R. 3762, which
was the original bill introduced in
June 1947 and supported by the
American Heart Association, on which
the bill before us was drafted, did
provide that there should be appro-
priations, but the gentleman from
New Jersey [Mr. WOLVERTON], when
he introduced this bill before us now
as the committee amendment, elimi-
nated all reference to appropriations.
Hence there is no provision for appro-
priations in this bill, only a provision
for establishing an organization and a
plan to coordinate and go forward
with the job of national heart-disease
research.
[p. 7406]
1.12c(3)(c) June 9: Senate concurs in House amendment, p. 7555
[No Relevant Discussion on Pertinent Section]
1.12d NATIONAL DENTAL RESEARCH ACT
June 24,1948, P.L. 80-755, § 4(e),(f), 62 Stat. 601
(e) Paragraph (d) of section 301 of such Act is amended to
read as follows:
" (d) Make grants-in-aid to universities, hospitals, laboratories,
and other public or private institutions, and to individuals for
such research projects as are recommended by the National Advi-
sory Health Council, or, with respect to cancer, recommended by
the National Advisory Cancer Council, or, with respect to mental
health, recommended by the National Advisory Mental Health
Council, or, with respect to heart diseases, recommended by the
National Advisory Heart Council, or, with respect to dental dis-
eases and conditions, recommended by the National Advisory
Dental Research Council;".
(f) Paragraph (g) of such section 301 is amended to read as
follows:
"(g) Adopt, upon recommendation of the National Advisory
-------
STATUTES AND LEGISLATIVE HISTORY 1223
Health Council, or, with respect to cancer, upon recommendation
of the National Advisory Cancer Council, or, with respect to men-
tal health, upon recommendation of the National Advisory Mental
Health Council, or, with respect to heart diseases, upon recommen-
dation of the National Advisory Heart Council, or, with respect to
dental diseases and conditions, upon recommendations of the Na-
tional Advisory Dental Research Council, such additional means as
he deems necessary or appropriate to carry out the purposes of
this section."
[p.601]
1.12d(l) SENATE COMMITTEE ON LABOR AND
PUBLIC WELFARE
S. REP. No. 436,80th Cong., 1st Sess. (1947)
NATIONAL INSTITUTE OF DENTAL RESEARCH ACT
JULY 7,1947.—Ordered to be printed
Mr. SMITH, from the Committee on Labor and Public Welfare,
submitted the following
REPORT
[To accompany S. 176]
The Committee on Labor and Public Welfare, to whom was
referred the bill (S. 176) to provide for, foster, and aid in coordi-
nating research relating to dental diseases and conditions, to es-
tablish the National Institute of Dental Research, and for other
purposes, having given consideration thereto, report the same and
recommend that the bill do pass.
A subcommittee of the Senate Committee on Education and
Labor of the Seventy-ninth Congress held hearings on the original
draft of the bill introduced as S. 190 in the Seventy-ninth Con-
gress. Sentiment was reported to be virtually unanimous in favor
of the bill at that time.
[p.l]
-------
1224 LEGAL COMPILATION—GENERAL
Section 4
This section provides that the National Advisory Dental Re-
search Council is authorized to:
3. Review applications for grants-in-aid from universities, hos-
pitals, laboratories, or other institutions, both public and private,
from individuals, for research projects relating to dental diseases
and conditions, and to certify to the Surgeon General its approval
of applications of projects which would make valuable contribu-
tions to human knowledge with respect to dental research.
4. Recommended to the Surgeon General for acceptance, condi-
tional gifts made under section 6 of the act and to make recom-
mendations to the Surgeon General in carrying out the provisions
of the act.
[p. 4]
1.12d(2) HOUSE COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
H.R. REP. No. 2158, 80th Cong. 2d Sess. (1948)
AMENDING THE PUBLIC HEALTH SERVICE ACT TO PRO-
VIDE FOR A NATIONAL INSTITUTE OF DENTAL RE-
SEARCH
JUNE 2, 1948.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. DOLLIVER, from the Committee on Interstate and Foreign
Commerce, submitted the following
REPORT
[To accompany H.R. 6726]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (H. R. 6726) to amend the Public Health
Service Act to provide for, foster, and aid in coordinating re-
search relating to dental diseases and conditions, and for other
-------
STATUTES AND LEGISLATIVE HISTORY
1225
purposes, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
[p.i]
IN GENERAL
SEC. 301. The Surgeon General shall conduct in the Service, and encourage,
cooperate with, and render assistance to other appropriate public authorities,
scientific institutions, and scientists in the conduct of, and promote the coor-
dination of, research, investigations, experiments, demonstrations, and studies
relating to the causes, diagnosis, treatment, control, and prevention of physi-
cal and mental diseases and impairments of man, including water purifica-
tion, sewage treatment, and pollution of lakes and streams. In carrying out
the foregoing the Surgeon General is authorized to—
(f) For purposes of study, admit and treat at institutions, hospitals, and
stations of the Service, persons not otherwise eligible for such treatment; and
(g) Adopt, upon recommendation of the National Advisory Health Council,
or, with respect to cancer, upon recommendation of the National Advisory
Cancer Council, or, with respect to mental health, upon recommendation of
the National Advisory Mental Health Council, or, with respect to dental dis-
eases and conditions, upon recommendation of the National Advisory Dental
Research Council, such additional means as he^deems necessary or appropriate
to carry out the purposes of this section.
[p. 8]
1.12d(3) CONGRESSIONAL RECORD, VOL. 94 (1948)
1.12d(3)(a) June 8: Amended and passed House, p. 7417
Mr. WOLVERTON.
GENERAL STATEMENT
This bill proposes to amend the
Public Health Service Act by estab-
lishing in the Public Health Service
a National Institute of Dental Re-
search, for the purpose of furthering
the purposes of the legislation, to
improve the dental health of the
people of the United States through
the conduct of researches, investiga-
tions, experiments, and studies re-
lating to the cause, diagnosis, and
treatment of dental diseases and
conditions; to assist and foster such
researches and other activities by pub-
lic and private agencies; to provide
training in matters relating to dental
diseases and conditions; and to pro-
mote the coordination of all such re-
searches and activities and the useful
application of their results, with a
view to the development and prompt
widespread use of the most effective
methods of prevention, diagnosis, and
treatment of dental diseases and
conditions.
H. R. 6726 recognizes the need to
support training of potential re-
searchers both within the Institute
-------
1226
LEGAL COMPILATION—GENERAL
and in the various institutions where
dental research will be conducted.
The establishment of a National In-
stitute of Dental Research, coupled
with a training program as provided
by this bill, would constitute a clear
demonstration that dental research
was on a sound basis and would en-
courage qualified candidates to pre-
pare themselves for research.
*****
[P- 7417]
1.12d(3)(b) June 12: Amended and passed Senate, p. 7934
[No Relevant Discussion on Pertinent Section]
1.12d(3)(c) June 14: House concurs in Senate amendments, p. 8175
Mr. BREHM. No, it does not. It
provides for private grants-in-aid.
This simply coordinates research and
we welcome research from any source,
public or private. At the present time
schools and colleges do not have ade-
quate facilities to utilize the funds
available for research purposes and
this bill simply puts it all under one
head or rather one roof.
Mr. PRIEST. I withdraw my reser-
vation of objection, Mr. Speaker.
Mr. RIVERS. Mr. Speaker, will the
gentleman yield?
Mr. BREHM. I yield.
Mr. RIVERS. These are only per-
fecting amendments.
Mr. BREHM. That is all. I want to
assure the gentleman from South
Carolina [Mr. RIVERS] and the gentle-
man from Tennessee [Mr. PRIEST]
that both the American Dental As-
sociation and I deeply appreciate their
assistance in behalf of this legislation.
Mr. SCRIVNER. Mr. Speaker, re-
serving the right to object, I wish to
inquire whether or not the language
on page 9 in lines 16, 17, 18, and 19
were in the bill as it passed the
House where they provide for $50 per
day plus expenses.
Mr. BREHM. That is right.
Mr. SCRIVNER. Was it in the bill
as it passed the House?
Mr. BREHM. That is correct. It
was.
The SPEAKER. Is there objection
to dispensing with further reading of
the Senate amendments?
There was no objection.
Is there objection to the request of
the gentleman from Ohio to concur
in the Senate amendments?
Mr. SCRIVNER. Mr. Speaker, re-
serving the right to object, if this
bill as presented from the Senate in-
cludes $2,000,000 for a building, I
object to its consideration.
Mr. BREHM. Mr. Speaker, the bill
is useless without a building because
that is for coordinating the research
now being carried on. We cannot con-
duct dental research out in a pasture
field or in a pup tent. As previously
stated the twenty-odd schools and
colleges engaged in research are
handicapped by lack of facilities to
do an adequate job. It is foolish to
waste funds in this manner. Either
research is necessary and essential to
benefit mankind in this instance, or
it is not necessary. If it is essential
as I maintain then let us have a de-
cent building and equipment so that
we can do a decent job.
Furthermore, the gentleman from
Kansas withdrew his reservation to
object just a moment ago when I
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STATUTES AND LEGISLATIVE HISTORY
1227
answered his question regarding the
$50-per-day provision contained in the
bill.
The SPEAKER. The Chair will
state to the gentleman from Kansas
that it is too late to object to the
consideration of the bill.
Is there objection to the request of
the gentleman from Ohio to concur
in the Senate amendments?
There was no objection.
The Senate amendments were
agreed to.
A motion to reconsider was laid
on the table.
[p.8175]
1.12e PUBLIC HEALTH SERVICE ACT AMENDMENTS
June 25,1948, P.L. 80-781, § 1, 62 Stat. 1017
Be it enacted by the Senate and House, of Representatives of the
United States of America in Congress assembled, That section 301
(d) of the Public Health Service Act, as amended (42 U. S. C. 241
(d)), is amended by changing the semicolon at the end thereof to
a comma and adding: "and include in the grants for any such
project grants of penicillin and other antibiotic compounds for use
in such project;".
[p. 1017]
1.12e(l) HOUSE COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
H.R. REP. No. 1927,80th Cong., 2d Seas. (1948)
AUTHORIZING CERTAIN EXPENDITURES FROM APPRO-
PRIATIONS OF THE PUBLIC HEALTH SERVICE
MAY 11, 1948.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. DOLLIVER, from the Committee on Interstate and Foreign
Commerce, submitted the following
REPORT
[To accompany H.R. 4114]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (H. R. 4114) to amend the Public Health
Service Act to permit certain expenditures, and for other pur-
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1228 LEGAL COMPILATION—GENERAL
poses, having considered the same, report favorably thereon with
amendments and recommend that the bill as amended do pass.
[p.i]
EXPLANATION OF THE BILL BY SECTIONS
The purpose of section 1 of the bill, which amends section 301
(d) of the Public Health Service Act, is to continue in basic
legislation the authority of the Public Health Service to purchase
and distribute penicillin and other antibiotic compounds for use in
research projects for which grants-in-aid are made pursuant to
section 301 (d) of the Public Health Service Act. There are sev-
eral sound reasons for continuing this authority, which is now and
has been contained in the appropriation acts. One is the great
saving to the Federal Treasury which results in many cases from
the central purchase of antibiotic compounds used in the various
research projects. It is frequently possible for the Public Health
Service to purchase the compounds for as little as one-half of the
amount it would have to expend for the same purpose in the form
of grants-in-aid if the compounds had to be purchased separately
for each individual research project or experiment. Another rea-
son is the desirability of conducting the diverse research experi-
ments and projects with a compound of uniform consistency, qual-
ity, and quantity so as to assure accuracy in evaluating results. A
third reason is the comparative difficulty which individual recipi-
ents of the research grants experience in attempting to purchase
the less readily available compounds.
[p-2]
FEDERAL SECURITY AGENCY,
Washington 25, D.C., June 11,19^7.
The honorable the SPEAKER OF THE HOUSE OF REPRESENTATIVES,
Washington 25, D.C.
DEAR MR. SPEAKER: I am enclosing for your consideration a draft of a bill
amending the Public Health Service Act (42 U.S.C., ch. 6A) to make perma-
nent authority, heretofore carried in annual appropriation acts, under which
the Public Health Service is permitted to make certain expenditures in carry-
ing out the purposes of that act.
The purpose of the first section, which amends section 301 (d) of the Public
Health Service Act, is to continue in basic legislation the authority of the
Public Health Service to purchase and distribute penicillin and other anti-
biotic compounds for use in research projects for which grants-in-aid are
[P. 4]
made pursuant to section 301 (d) of the Public Health Service Act (this au-
thorization was omitted from the Federal Security Agency Appropriation
Act, 1947, but is included in the President's Budget for the fiscal year 1948).
-------
STATUTES AND LEGISLATIVE HISTORY 1229
There are several sound reasons for continuing this authority. One is the de-
sirability of conducting the diverse research experiments and projects with a
compound of uniform consistency, quality, and quantity so as to assure accu-
racy in evaluating results. Such uniformity can be assured, particularly in
the case of compounds developed comparatively recently, only through central
purchase of the compound by the Public Health Service from the same
sources. It is almost impossible to achieve when the compounds are purchased
individually by the many institutions or agencies conducting the projects. An-
other reason is the comparative difficulty which individual recipients of the
grants-in-aid experience in attempting to purchase the less readily available
compounds. A third reason is the great saving to the Federal Treasury which
results in many cases from the central purchase of antibiotic compounds used
in the various research projects. It is frequently possible for the Public
Health Service to purchase the compounds for as little as one-half of the
amount it would have to expand for the same purpose in the form of grants-
in-aid if the compounds had to be purchased separately for each individual
research project or experiment.
* # * * -f * *
[p. 5]
PUBLIC HEALTH SERVICE ACT, AS AMENDED
* # * * =:- * *
TITLE III—GENERAL POWERS AND DUTIES OF PUBLIC HEALTH
SERVICE
PART A—RESEARCH AND INVESTIGATIONS
IN GENERAL
SEC. 301. The Surgeon General shall conduct in the Service, and encourage,
cooperate with, and render assistance to other appropriate public authorities,
scientific institutions, and scientists in the conduct of, and promote the coordi-
nation of, research, investigations, experiments, demonstrations, and studies
relating to the causes, diagnosis, treatment, control, and prevention of physi-
cal and mental diseases and impairments of man, including water purifica-
tion, sewage treatment, and pollution of lakes and streams. In carrying out
the foregoing the Surgeon General is authorized to—
(a) Collect and make available through publications and other appro-
priate means, information as to, and the practical application of, such
research and other activities;
(b) Make available research facilities of the Service to appropriate
public authorities, and to health officials and scientists engaged in special
study;
(c) Establish and maintain research fellowships in the Service with
such stipends and allowances, including traveling and subsistence ex-
penses, as he may deem necessary to procure the assistance of the most
brilliant and promising research fellows from the United States and
abroad;
(d) Make grants in aid to universities, hospitals, laboratories, and
other public or private institutions, and to individuals for such research
projects as are recommended by the National Advisory Health Council,
or, with respect to cancer, recommended by the National Advisory Cancer
Council, or, with respect to mental health, recommended by the National
-------
1230 LEGAL COMPILATION—GENERAL
Advisory Mental Health Council and include in the grants for any such
project grants of penicillin and other antibiotic compounds for use in such
project;
(e) Secure from time to time and for such periods as he deems advisa-
ble, the assistance and advice of experts, scholars, and consultants from
the United States or abroad;
(f) For purposes of study, admit and treat at institutions, hospitals,
and stations of the Service, persons not otherwise eligible for such treat-
ment; and
(g) Adopt, upon recommendation of the National Advisory Health
Council, or, with respect to cancer, upon recommendation of the National
Advisory Cancer Council, or, with respect to mental health, upon recom-
mendation of the National Advisory Mental Health Council, such addi-
tional means as he deems necessary or appropriate to carry out the pur-
poses of this section.
****** *
[P-8]
1.12e(2) SENATE COMMITTEE ON LABOR AND
PUBLIC WORKS
S. REP. No. 1578, 80th Cong., 2d Sess. (1948)
AMENDING THE PUBLIC HEALTH SERVICE ACT TO PER-
MIT CERTAIN EXPENDITURES
JUNE 9 (legislative day, JUNE 8, 1948.—Ordered to be printed
Mr. TAFT, from the Committee on Labor and Public Welfare,
submitted the following
REPORT
[To accompany H.R. 4114]
The Committee on Labor and Public Welfare, to whom was
referred the bill (H. R. 4114) to amend the Public Health Service
Act to permit certain expenditures, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that it do pass.
PURPOSE OF THE BILL
The sole purpose of the bill is to incorporate into the Public
Health Service Act, which is the basic law governing the Public
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STATUTES AND LEGISLATIVE HISTORY 1231
Health Service, the authority of the Service to expend funds for
certain specified purposes which have heretofore been authorized
annually in the appropriations for the Public Health Service. It
would not increase the present authority of the Public Health
Service; nor would it increase the current expenditures of the
Public Health Service.
EXPLANATION OF THE BILL BY SECTIONS
The purpose of section 1 of the bill, which amends section 301
(d) of ths Public Health Service Act, is to continue in basic
legislation the authority of the Public Health Service to purchase
and distribute penicillin and other antibiotic compounds for use in
research projects for which grants-in-aid are made pursuant to
section 301 (d) of the Public Health Service Act. There are sev-
eral sound reasons for continuing this authority, which is now and
has been contained in the appropriation acts. One is the substan-
tial saving of funds which results in many cases from the central
purchase of antibiotic compounds used in the various research
projects. It is frequently possible for the Public Health Service to
purchase the compounds for as little as one-half of the amount it
would have to expend for the same purpose in the form of grant-
[P-i]
in-aid if the compounds had to be purchased separately for each
individual research project or experiment. Another reason is the
desirability of conducting the diverse research experiments and
projects with a compound of uniform consistency, quality, and
quantity so as to assure accuracy in evaluating results. A third
reason is the comparative difficulty which individual recipients of
the research grants experience in attempting to purchase the less
readily available compounds.
[p. 2]
FEDERAL SECURITY AGENCY,
Washington, June 11,1947.
The honorable the PRESIDENT PRO TEMPORE,
United States Senate, Washington, D.C.
DEAR MR. PRESIDENT: I am enclosing for your consideration a draft of a
bill amending the Public Health Service Act (42 U.S.C., ch. 6A) to make
permanent authority, heretofore carried in annual appropriation acts, under
which the Public Health Service is permitted to make certain expenditures in
carrying out the purposes of that act.
The purpose of the first section, which amends section 301 (d) of the Public
Health Service Act, is to continue in basic legislation the authority of the
Public Health Service to purchase and distribute penicillin and other anti-
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1232 LEGAL COMPILATION—GENERAL
biotic compounds for use in research projects for which grants-in-aid are
made pursuant to section 301 (d) of the Public Health Service Act (this au-
thorization was omitted from the Federal Security Agency Appropriation Act,
1947, but is included in the President's Budget for the fiscal year 1948). There
are several sound reasons for continuing this authority. One is the desirability
of conducting the diverse research experiments and projects with a compound
of uniform consistency, quality, and quantity so as to assure accuracy in
evaluating results. Such uniformity can be assured, particularly in the case
of compounds developed comparatively recently, only through central pur-
chase of the compound by the Public Health Service from the same sources.
It is almost impossible to achieve when the compounds are purchased individ-
ually by the many institutions or agencies conducting the projects. Another
reason is the comparative difficulty which individual recipients of the grants-
in-aid experience in attempting to purchase the less readily available com-
pounds. A third reason is the great saving to the Federal Treasury which
results in many cases from the central purchase of antibiotic compounds used
in the various research projects. It is frequently possible for the Public
Health Service to purchase the compounds for as little as one-half of the
amount it would have to expend for the same purpose in the form of grants-
in-aid if the compounds had to be purchased separately for each individual
research project or experiment.
[p. 11]
1.12e(3) CONGRESSIONAL RECORD, VOL. 94 (1948)
1.12e(3)(a) May 18: Amended and passed House, p. 6008
[No Relevant Discussion on Pertinent Section]
1.12e(3)(b) June 12: Passed Senate, p. 7933
AMENDMENT OP PUBLIC HEALTH
SERVICE ACT
The bill (H. R. 4114) to amend the
Public Health Service Act to permit
certain expenditures, and for other
purposes, was considered, ordered to
a third reading, read the third time,
and passed.
[p. 7933]
1.12f CAREER COMPENSATION ACT OF 1949
October 12, 1949, P.L. 81-351, Title V, §521 (e), 63 Stat. 835
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(e) Subsection (d) of section 214 is amended by deleting there-
from the words "longevity pay" and substituting in lieu thereof
the words "the computation of basic pay".
[p. 835]
U. S. GOVERNMENT PRINTING OFFICE : 1974 O - 466-441 (Vol. No. 2)
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U.S. Etwiroriir/jr.to! Protection Apency
Region V. Ljb.a.'y ^*-
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