S. 2292 A BILL TO PROVIDE FOR CONTINUED ACCESS BY THE FEDERAL GOVERNMENT TO LAND REMOTE SENSING DATA FROM SATELLITES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000200280015-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Document Release Date: September 11, 2008
• Sequence Number: 15
• Publication Date: February 9, 1984
• Content Type: OPEN SOURCE

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T February 9, 1984
CONGMSSIONAL RECORD - SENATE S 1243
the surreys carried out under) this para-
graph.
"(E) For the fuepaess of paragraph
and section 111(c)(43 of the hensive
Environmental Response,
and Liability Act of 1980, the "health
surveys" shalt include pre asseaw
ments of the potential risk to h health
posed by Individual sites and ties sub-
ject to this paragraph. based on ch factors
as the nature and extent of co titian,
the existence or portential for ways of
human exposure (including groim d or sur-
face water contalllination, air a ions, and
food chain ce#airoination), the and po
tential susceptibility of the community
within the likely pathways of re, the
comparions of expected hum exposure
levels to the short-term long-term
health effects associated wi identified
contaminants and any av ble recom-
mended exposure or tole limits for
such contaminants, and the oo n of
existing morbidity and mortal data on
diseases that may be associated th the ob-
served levelp of exposure. A pu of such
prellminary, assessments shall to help de-
termine whether full-scale or epide-
miological studies and medical evaluations
b$ undertak-
of exposed populations shall
en.".
(d) The amendments made by [this section
shall be effective with respect tp fiscal year
1985 and each fiscal year there rA
contin-
S. 2282. A 1 to provide or e
ed ace y the Federal vrnment
to remote sensing da from sat-
ellites and for other pu to the
Committee on Commerce, encer and
Transportation.
LAND aE~IOTEN ICA aalfSlli(i SA TE
COMMUTIONS ACT Or 994
Mr. GORTON. Mr. Presi nt, I am
introducing today on my half and
on behalf of the distinguish Senator
from Arizona (Mr. GoLDW ) a bill
to provide for a continue U.S. land
t3 to the
remote sensing capability an or-
derly transfer of this cape or-
private sector.
Our current experimeital land
remote sensing satellite (Landsat)
system has established United
States as the undisputed w id leader
in remote sensing techno . Four
satellites have been laud during
the past 12 years, and a , called
Landat D-prime, w1f11 be la ched next
month. Data from thes satellites
have enabled us to see the rth In a
way never previously possi and our
policy of no data
access, or "open skies," has made
Landsat a provider of wo bene-
fit and international good .
Recently, other nations have begun
developing their own 1 d remote
sensing systems. I must my col-
leagues that not only I. ou leadership
in this area threatened, bu uncertain-
ty over the future of Lan t has Jeop-
ardized the existence of U.S. land
remote sensing capability t all. Our
inability to resolve the deb to between
those who believe the Lan at system
should be commercialized and those
who feel the Government d con-
tinue to sponsor the sys has left us
with no plans for any cap after
Landsat D-prime, which is expected to
function for 3 years.
Last March, the addaistaation pro-
posed to commessialiae the Landsat
system. This decision was based on the
fact that the system is very costly to
operate and generates very little reve-
nue. The idea behind commercializa-
tion Is that the private sector eould
operate the technology at less expense
than the Government, and that a pri-
vate marketing effort could greatly
expand the market for data.
The problem with the administra-
tion'b proposal was that it included
commercialization of our meteorologi-
cal satellite (Metsat) system an idea
that had no congressional support
Last year, when I Introduced a resolu-
tion opposing Metsat commercializa-
tion, I expressed my feeling that the
outcry over the prospect of commer-
cializing Metsat was preventing Con-
gress from focusing on the more rele-
vant issue of Landsat. Now that the
resolution and its House companion
have overwhelmingly passed and the
Metsat commercialization proposal
has been dropped, we can give Landsat
commercialization proper considera-
tion.
Mr. President, as chairman of the
Commerce Committee's Subcommittee
on Science. Technology, and Space, I
have followed this issue very closely,
and I have come to see two fundamen-
tal facts.
First, the market for land remote
sensing data is currently very small,
and will not develop without private
sector initiative and marketing exper-
tise. Several years of private market-
ing will be required to make land
remote sensing a profitable business,
and no adequate private systems are
likely to be developed until the poten-
tial for profit exists.
Second, Landsat D-prime represents
the final product of more than a bil-
lion dollars of Federal expenditure,
and should not be turned over to the
private sector for a price that would
reflect only the revenues that can cur-
rently be realized from its operation.
The legislation I am introducing
today would provide for a phased com-
mercialization of Landsat, beginning
with data marketing and expanding to
space system management as market
development enables wholly private
system to prosper.
Under this approach, the Govern-
ment would maintain ownership of
Landsat D-prime and contract for pri-
vate marketing of the data and possi-
bly private operations of the system.
Concurrently, the Government would
work with the private sector on devel-
opment of a follow-on system with at
least equivalent capabilities. Private
involvement in system development
would reduce Federal costs from the
expense of constructing another ex-
perimental Government satelli,.te, and
private operation and data marketing
would further develop the market for
data. In the future, wholly private sys-
tems would be licenset by the Secre-
tary of Commerce.
Last month the Department of Com-
merce issued a request for proposals
asking private parties to bid for the
Landsat system and development of a
follow-on system. Current law stipu-
lates that ' legislation must be enacted
to permit any such transfer. and this
legislation would authorize the trans-
fer while setting forth' conditions
under which it is acceptable to the
Congress.
Mr. President, I feel this legislation
would insure continued U.S. involve-
ment in remote senstag, expedite the
development of an expanded data
market, and minimize Federal ex-
penses in transferring this capability
to the private sector.
I hope the bill will stir debate on the
issue, and I eagerly await the com-
ments and suggestions of the private
sector, the administration, and my col-
leagues.
I ask unanimous consent that the
bill be printed in the Rscolw.
There being no objection, the bill
was ordered to be printed in the
Rzcoiw, as follows:
8.2292
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled That this
Act be cited as the "Land Remote Sensing
Statellite Communications Act of 1964".
TITLE I-DECLARATION OF FINDINGS
AND PURPOSES
FINDInas
Sac. 101. The Congress finds and declares
that-
(1) the Federal Government's experimen-
tal LANDSAT system has established the
United States as the world leader in land
remote sensing satellite technology;
(2) the continuous collection of land
remote sensing data from satellites is of
major benefit in managing the Earth's natu-
ral resources;
(3) private sector involvement In space can
provide sound bases for the future growth
of space-based technologies;
(4) it is necessary to determine the extent
to which it. is appropriate and In the nation-
al interest for the private sector to assume
responsibility for civil land remote sensing
satellite system operation and data manage-
ment;
(5) the existing viva land remote sensing
system of the United States involves impor-
tant international oommibments,
(8) civil land remote sensing involves rele-
vant national security concerns;
(7) it is in the national Interest to promote
the establishment of private land remote
sensing ventures;
(8) land remote sensing development has
been inhibited by lack of market develop-
ment and private industry is best suited to
develop the data market;
(9) it is doubtful that the private sector
alone currently can develop a total land
remote sensing system because of the high
risk and large capital expenditure involved;
(10) cooperation between the Federal Gov-
ernment and private industry is necessary to
manage effectively the existing LANDSAT
system so as to ensure data continuity, to
honor international and national security
responsibilities, and to broaden the data
market enough to support self-sufficient
private ventures; and
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 S 1244
(11) such cooperation should be struc-
tured to minimize the amount of support
and regulation by the Federal Government,
while assuring continuous availability to the
Federal Government of land remote sensing
data.
PURPOSES
SEC. 102. The purposes of this Act are to-
(1) guide the Federal Government in
achieving proper involvement of the private
sector by providing a framework for gradual
commercialization of land remote sensing,
allowing an increasing private role as the
market for data expands, and assuring con-
tinuous data availability to the Federal Gov-
ernment;
(2) preserve the leading position of the
United States in civil land remote sensing,
preserve the national security, and honor
the international obligations of the United
States;
(3) reaffirm the right of all nations to
sense the Earth's surface and acquire land
remote sensing data, so long as such data
are made% available to all potential users on
a non-discriminatory basis; and
(4) minimize the duration and amount of
further Federal investment necessary to
assure data continuity while achieving com-
mercialization of civil land remote sensing.
DEFINITIONS
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(2) the launch, orbit, and data collection than 5 days to a day certain are excluded in
of LANDSAT D-prime, and disposition of the computation of such period.
LANDSAT D-prime upon the termination of
lished by the Secretary; SEC. 203. The Secretary shall award any
(3) ground equipment and facilities which such contract on the basis of--
are used to operate the LANDSAT system; (1) the financial return to the United
and States Government, based on any initial fee
(4) provision of data to foreign ground sta- offered for marketing rights and any per-data the under the terms of existing Memoran- United States over receipts a offered to da of Understanding between the United United States Government; and
States Government and nations that oper- (2) the ability to expand the market for
ate ground stations. unenhanced land remote sensing data.
(b) The Secretary may extend any such TITLE III-DATA CONTINUITY AFTER
Memoranda of Understanding if such exten- THE LANDSAT SYSTEM
sion provides for their expiration upon the PURPOSE
termination of the useful operation of the SEC. 301. It is the purpose of this title to-
LANDSAT system. (1) provide for a transition from operation
(c) The provisions of this section shall not by the Federal Government to private, com-
prohibit the National Oceanic and Atmos- mercial operation of land remote sensing
pheric Administration from continuing to satellite systems;
contract for the operation of the LANDSAT
system, so long as the Administration re- (2) determine, with risk during
tains- the proposed transition sition minimal period, whether
(1) ownership of the system; wholly private operation of land remote
(2) ownership of the unenhanced data; sensing is in the best interests of the United
and States; and
(3) authority to make decisions concerning (3) provide for the continuity of land
operation of the system. remote sensing satellite data after the ter-
,,,,1 _ ____ .,..a.., SEC. 302. The Secretary shall evaluate pro-
term- to the extent provided in advance by appro-
(1) "LANDSAT system" means LANDSAT priations Acts and in accordance with the posals from United States private entities
4 and LANDSAT D-prime, and related provisions of subsection (c) of this section, for a contract for the development of a
ground equipment, systems and facilities; contract with a United States private entity system capable of generating land remote
(2) "non-discriminatory basis" means for the marketing of unenhanced data col- sensing data and marketing such unen-
without preference, bias, or any arrange- lected according to the provisions of section danced data for a period of 6 years. Such
ment that favors any purchaser or class of 201 of this title. Any such contract shall evaluation and any solicitation of proposals
purchasers over another, such that- provide that- Live shall be process. by means of a nimu i-
(A) data products are made available to all (1) the contractor may set the prices of . Such proposals, at a minimum,
shall
potential buyers at standard, published unenhanced data products, if the products specify-
(1) the quantities and qualities of data ex-
prices: are always available to all potential buyers petted from the system;
(B) all purchasers are given the same op- published. non-discriminatory prices and (2) the
portunities for access to data, such as timeli. terms of access; projected date upon which oper-
ness of availbility and terms of delivery; and (2) the contractor shall compensate the ations could begin;
(C) special arrangements, other than any United States Government for the right to (3) the number of satellites to be con-
arrangement for exclusive access to data by sell the data by payment of an initial fee, a strutted and their expected lifetimes;
any purchaser, such as volume discounts, percentage of data sales receipts, or some (4) any need for Federal funding to devel-
gathering of data with certain characteris- combination of such fee and receipts; op the system;
tics requested by a purchaser, and mainte- (3) the contractor shall pay to the United fered (5) any percentage of sales receipts of-
nance of secrecy regarding any such ar- States Government the full purchase price to the Federal Government; and
rangements, are permissible if the avail- of any unenhanced data that the contractor (6) plans for expanding the market for
ability and prices of such services are pub- elects to utilize for purposes other than land remote sensing data.
lished and uniformly available to the data sale, in accordance with paragraph (4) of NOTIFICATION REGARDING AWARDING OF THE
purchasers; this subsection; and CONTRACT
"
(3)
Secretary" means the Secretary of (4) the contractor shall not engage in any
Commerce; sale of processed data except in a manner
(4) "unenhanced data" means digital or consistent with applicable antitrust laws.
minimally processed signals collected from (b) Prior to entering into such a contract,
civil land remote sensing satellites involving the Secretary shall publish the require-
rectification of distortions, registration with ments of subsection (a)(1) through (4) of
respect to features of the Earth, and cali- this section, and the contract shall be sub.
bration of spectral response; the term does ject to such requirements.
not include conclusions, manipulations, or Cc)(1) Any decision or proposed decision
calculations derived from such signals or by the Secretary to enter into any such con-
combination of the signals with other data tract shall be transmitted to the Committee
or information; and on Commerce, Science, and Transportation
(5) "United States private entity" means of the Senate and the Committee on Sci-
any non-governmental entity or consortium ence and Technology of the House of Rep-
of entities, the majority of whose assets is resentatives for their review. No such deci-
owned by citizens of the United States, the sion or proposed decision shall be imple-
majority of whose personnel is comprised of mented unless (A) a period of 30 days of
citizens of the United States, and whose continuous session of Congress has passed
principal place of business is in the United after the receipt by each such committee of
States. such transmittal or (B) each such commit-
TITLE II-OPERATION AND DATA tee before the expiration of such period has
MARKETING OF LANDSAT SYSTEM transmitted to the Secretary written notice
OPERATION to the effect that such committee has no ob-
SEC. 201. (a) The National Oceanic and At. jection to the decision or proposed decision.
mospheric Administration shall be responsi- shala Secretary
include the information specified in
ble for- subsection (a)(1) through (4) of this section.
(1) the orbit and data collection of LAND- (2) For purposes of this section-
SAT 4, and disposition of LANDSAT 4 upon (A) continuity of session is broken only by
the termination of its useful operation, as an adjournment sine die; and
SEC. 303. (a) The Secretary shall evaluate
the proposals referred to in section 302 of
this title and, to the extent provided in ad-
vance by appropriations Acts, may contract
with a United States private entity for the
development of a system capable of generat-
ing land remote sensing data and marketing
such unenhanced data for a period of 6
years. As part of such evaluation, the Secre-
tary shall analyze the expected outcome of
each proposal, in terms of-
(1) the availability to the Federal Govern-
ment of at least the quantities and qualities.
of data used by the Federal Government in
fiscal year 1983;
(2) the availability of such data upon the
expected termination of the LANDSAT
system:
(3) the cost to the Federal Government of
developing the recommended system;
(4) the potential to expand the market for
data;
(5) any percentage of data sales offered to
the Federal Government, in accordance
with section 304 of this title; and
(6) such other factors as the Secretary
deems appropriate and relevant.
(b)(1) Any decision or proposed decision
by the Secretary to enter into any such con-
tract shall be transmitted t
th
o
e Committee
(B) days on which either House is not in on Commerce. Science, and, Transportation
session because of an adjournment of more
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CONGRESSIONAL RECORD - SENATE February 9, 1984
 February 9, IM4
of the Senate and the Comm
merited unless (A) a period of
continuous session of Congress
transmitted to the Secretary
to the effect that such commi
shall include the information
subsection taX1) through (6) of
Sac. 304. in order to prom
lated increases in sales levels.
SALE OP DATA
Sac. 305. Any contract ente
Cory basis;
(2) the contractor will
Government from the cent
wZPOaT
Sac. 306. Within 2 years
the Secretary shall report to
on the progress and feasibility
recommendations to sec
tion.
TaZenlnATr44f Or ADT
TITLE IV- PRIVATE
SENSING SY
license qualified United
ties to operate civil land
stone of this title.
OOIWITBON$ FOR O
Sac. 402. (a) No party or
operate any land rernete
this title.
(b) A party or consortium s
to operate its system it-
(1) unenhanced land rem
are made available to all po
a non-discriminatory basis;
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CONGRESSIONAL RECORD-SENATE S 1245
on Sci- (4) the license provides that, before any tion, the Administrator of tare 10aa11onat oce-
party or consortium minutes- its o-- anic and Atmospheric Administration, and
se of Rep- such decd- ations under the license, it will make dispo- the heads of ether of agencies shall
be imps s(tion o1 any satellites in space in a manner continue land reatsts tat research and
30 days of satisfactory tethe president,, and development, and are a e$araged to con-
has paeaed (b) the entity earning to obtain the license duct experimental space remote sensing pro-
.,....1...~1.. nreneofle s priagrara6)
MMI"ecel
it Commit- license. to provide in the Secretary any data and to develop remote senAr)g technologies
ten notice rZWry may-rq,as- Lor tie p-pose of -
has no eb- chiving. pursuant to section 942 of this Act. poses. in carrying out such programs, Feder-
- .. .. - are encot aged to cooperate
pecified in responsible for protection of national seen- USE OP EXPERIMENTAL DATA
section. MY interests and adherence to Internation-
al responsibilities of the United States
only by which are relevant to operation of private
land remote sensing satellite systems, in-
United States;
(B} liability for damage caused by space
objects under registration or license by the
Federot Goverment; and
(CA registration with appropriate interna-
tional author ies of ail obiecls launched
into space by non-goveaunentsl entities of
the United States.
(2) In order to carry out paragraph (1) of
this subsection, the Secretary shall. before
licensing any private land remote sensing
the private entity or consortium that It
will-
(A) furnish the Secretary with complete
orbit and data collection Characteristics of
the system obtain advance approval of any
intended devitation from such characteris-
tics, and inform the Secretary immediately
of any unintended deviation:
(B) obtain advance approval from the Sec-
retary of any agreement it intends to enter
.with a foreign nation. entity, or consortium
involving foreign nations or entities; and
the date on (C) operate the System in a manner that is
e Congress (13) The Secretary. in order to carry out
the trarnd- the responsibilities specified in this title.
Speratl0- may-
y legislative records of any esntity that holds a license
such transt- P>nsuunt to this title;
(B) promulgate regulations to implement
the provisions of this title; and
(C) provide, within the licenses or regula-
by this tions issued, for penalties for nonoompll-
the date once with the requirements of such licenses
entered or regulations. Including termination of It-
Sac. 406. Federal agencies are authorized
and encouraged to engage in joint activities
United States private sector activities:,
(2) such activities are appropriate to an
tarn may aaency's missions and activities; and
-p - d f._d a" *"eflable for
a: safxulm
jurisdiction that purpose,
ion 401 Of Sac. 404. The authority contained in this
title shall termhratUe at the expiration of 10
1 be licensed yews after the deft of enactment of this
Act it no firm or consortium has been 11-
mental land remote sensing programs may
be used in related research and development
programs funded by the Federal Govern-
ment, including applications programs, but
not for commercial uses or in competition
with private sector activities, except as per-
mitted by section 503 of this title.
SALS OT EXPERIMENTAL DATA
Svc. 503. Data gathered in Federal experi-
mental land remote sensing programs may
be competitively sold an bloc (consistent
with national security interests and interna-
tional obligations of the United States) to
any United States entity which will market
the data on a nondbcrhntnatory basis.
TITLE VI-GENERAL PROVISIONS
"OP?r se ien"
Sac. 601. (a) Unenhaneed land remote
sensing satellite data generated by any
system operator under the provisions of this
Act shall be made available to all users on a
non-discriminstorY9boalt.,in accordance with
the requirements of thisAoL
(b) For the purposes of this title. the term
..system operator" means a contractor
under title II or III or a license bolder
under title IV of this Act,
AaCKrVTM OVSATA
SEC. 602. (a) In order to preserve many of
the public benefits of civil remote sensing
from space, including long-term global envi-
ronmental monitoeim the Secretary shall
provide for long-terra storage and mainte-
aance of data, as dearsitsd in subsection (b)
of this section. and for access to such data.
(bXl) The Secretary shall continue to pro-
vide storage, asaintenaace, and access for
unenhanced data franc the LAKDSAT
system.
(2) The Secretary serail provide storage,
maintenance, and access for unenhanced
data generated pursuant to title III of this
Act. The Secretary may obtain and examine
such data to deterzalan whether such data
have potential publievalne, and to store and
maintain data that are dethrmthed to be of
value.
(3) The Secretary may provide storage,
maintenance, and access for unenhanced
data generated by license holders under title
IV of this Act if the Secretary finis that
such data have sufficient public valve.
(c) All data generated by any system oper-
ator under titles III or IV of this Act shall
be made available to the Secretary by the
system operator in a form suitable for proc-
essing for data storage, maintenance. and
access. The Secretary may (as provided in
advance by approMrisitis * Acts) pay to such
system operator reasonable costs for repro-
duction and transmittal At the data.
(dXl).Copies of siarsd,data may not be
made available from She archive except (A)
alum; ~- -
issued under DNVZLQemm (2) Copies of stored data nnq be trade
holder from Sac. 50L The Administrator of the Na- available to Personssagenathrg arch copies
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S 1246 CONGRESSIONAL RECORD - SENATE
vided the data so authorizes the secretary ernment insurance of deposits in First, it updates the definitions of
(w tingles of stored data may be made banks and 'thrift institutions just as "broker" and "dealer" in the Federal
available to persons requesting such copies the Garn-St Germain Act, which the Securities Exchange Act of 1934 by in-
without authorization of the system opera- Congress passed in 1982, modernized cludin
tor after 10 years after the date of the gen- and reformed the Nation's financial g persons in the business o en-
eration of such data. institutions. As a result of passage of Thus, these persons ons will in depedit o
(4) Persons or system operators requesting the Garn-St Germain Act, financial in- , r wons ecu be req nded r-
and receiving copies of such data from the stitutions have become increasingly register Commission the Securities and sub-
archive shall pay to the Secretary reason- competitive. This is no less true when change the and will be -ply
able costs of reproduction and transmittal. it comes to seeking new sources of tort ro the requirements which apply
(5) Nothing in tis subsection shall release funds for their deposits. Gathering de- tr brokers and dealers which such as
the Secretary from the Secretary's obliga- transactions in securities such as
tion to provide data storage, maintenance, posits on a national basis through the
and access, use of brokerage intermediaries has stocks and bonds. There is no good
(e) In carrying out the functions of this become an increasingly popular and reason why the public should not have
section, the Secretary may use existing effective means of raising deposit dol- the protection which Federal securi-
facilities or may contract with a private lars. ties laws provide when dealing with in-
sector party or parties for performance of These changes in the way financial termediaries who place deposits for
such functions, to the extent provided in ad- institutions raise their deposits have them or engage in other transactions
vance by appropriations Acts. produced both positive negative in deposits. NONREPRODUCTION effects. The use of intermediaries to except from the definition hof "broker"
SEC. 603. Unprocessed land remote sensing raise funds has made it possible for in- and "dealer," banks and thrift institu-
data generated by any system operator stitutions of all sizes, including small tions, since they are already adequate-
under the provisions of this Act may be sold amd medium-sized banks and thrift in- ly supervised by the Federal banking
on the condition that such data shall not be stitutions, to tap national markets for agencies.
chaser.
reproduced and disseminated by the pur- their needed deposit dollars. This Second, the bill would recognize that
REIMBURSEMENT FOR ASSISTANCE makes additional funds available for the public can place deposits through
SEC. 604. RS Administrator of the Na- use in their local communities. registered broker-dealers and retain
bona. Aeronautics min Space A the a- The brokerage intermediaries pro- their insurance deposits. The bill re-
tion, the Secretary of Defense, and the vide the consumer with an efficient ve- jects, as too extreme, a by
heads of other Federal agencies may pro- hicle for obtaining the maximum proposal the c
vide assistance to operators of remote sens- return on his or her investment dol- Federal insurance agencies which
Ing systems under the provisions of this Act. lars, consistent with the safety of Fed- would members
effectivley of he deny insurance regis-
Substantial assistance, such as launch serv- eral insurance of deposits. Financial ed brokers. the public who use rould
ices, shall be reimbursed by the operator. institutions, too, use this new method preserve rb Thus, the sly vald
RADIO FREQUENCY ALLOCATION to make their investment. Many credit ble to all the benefits
institutions, nclud-
SEC. 605. The Federal Communications unions, banks, and thrift institutions ing small ainsured institutions, icl institu-
Commission is authorized and encouraged now place substantial amounts of idle do sand medium-sized al mar-
to allocate to any license holder under title funds with other institutions through kets-without to raise capital on national mar-
to of this Act access to Government radio brokerage intermediaries. Florida y-withouc p expense
frequencies and other civil radio frequencies credit union managers tell me that branchsn campaigns
o of interstate
appropriate for land remote sensing systems g or interstate
in a timely manner, consistent with the na- with their small staffs there would be branch networks. Often only the very
tional interest. a great loss if they could not use bro- largest institutions can afford to ralso
CONSULTATION kers to seek out the highest return on deposits in this way. The bill also
SEC. 606. (a) The Sshall consult investments. means that the public can continue to
with 0 (a) The Secretary
Defense on all matt At the same time, the Federal regu- enjoy the benefits of investing their
unthe der Secreta
ters this
Act offDefe a onal secs- lators have expressed concern that dollars at maximum rates of interest
rity. The Secretary of Defense shall be re- this ready availability of. funds can with continued Federal insurance
sponsible for identifying and notifying the lead to abuse by financial institutions without the prohibitive expense of
Secretary of those national security con- and by the intermediaries who raise placing these funds themselves.
terns of the United States which are rele- funds for them. They maintain that at Third, the bill contains two impor-
vant to activities under this Act. the financial institution level, some in- tant exceptions designed to safeguard
(b) The Secretary shall consult with the stitutions in weak financial condition the Federal insurance funds by grant-
Secretary of State on all international mat- have used brokerage firms to maintain ing the agencies the authority to re-
ters arising under this Act. The Secretary of
State shall be responsible for identifying their liquidity without giving adequate strict the use of brokers by new or fi-
and notifying the Secretary of those inter- consideration to their ability to repay. nancially impaired financial institu-
national obligations and commitments of Apparently some newly formed insti- tions.
the United States which are relevant to ac- tutions, intent of rapid growth, have In sum, the bill presents a balanced
tivities under this Act. turned a virtue into a vice, and have
approach grown faster than they are able to s the problem of bringing
By Mrs. HAWKINS: prudently Federal insurance of deposits current
S. 2294. A bill to require the registra- invest, with the marketplace realities of
tits of 4. A il brokers with tSecu- Finally, because of uncertainty over today. It reaffirms that insured depos-
tions and Exchange Commission, the h oS, u- the status of deposits as securities its may be raised on a nationwide basis
ri sire the Federal depository inn, to under the Federal securities laws, cer- using qualified
q tain brokerage firms have not been Profrowth can be too
tion insuring agencies to better police subject to oversight of their activities it recognizes that growth can be too
the funds acquisition activities of by the Securities and Exchange Com- much of a good thing, t providing growth
au-
newly insured and financially impaired mission. This lack of oversight has for new o the agencies to limit growth
depository institutions, to amend the been a major source of concern for for new or financially impaired institu-
depository Exchange Act of 1934, the Federal regulators and has left the tits-.
Federal Deposit Insurance Act, the consumer, without the protections Mr. President, I urge my colleagues
National Housing Act, and for other which the Federal securities laws pro- to join me in support of this legisla-
purposes; to the Committee on Bank- vide. tion. I ask unanimous consent that the
ing, Housing, and Urban Affairs. The Federal Deposit Insurance text of the bill be
FEDERAL DEPOSIT INSURANCE REFORM ACT OF Reform Act of.1984, which I am intro- placed the
Iae~ RECORD at the conclusion of my re-
ducing today, updates Federal law to marks.
? Mrs. HAWKINS. Mr. President, I bring it current with these important There being no objection, the bill
am today introducing legislation to marketplace developments, the bill is was ordered to be printed in the
modernize and reform Federal Gov- simple and straight-forward.
RECORD, as follows:
Approved For Release 2008/09/11: CIA-RDP86B00338R000200280015-6