Kennedy Legislative Record, Page 4

Reorganization - Transportation

REORGANIZATION

Reorganization, 1961

Reorganization Plan No. 3 Effective July 3, 1961

To relieve the members of the Civil Aeronautics Board from the necessity of dealing with many matters of lesser importance and thus conserve their time for the consideration of major matters of policy and planning.

__________ FCC

S. 2034 Public Law 87192, approved August 31, 1961

As a substitute for Reorganization Plan No. II, this bill provides for facilitating the work of the FCC and improving its administrative process.

__________ Federal Trade Commission

Reorganization Plan No. 4 of 1961 Effective July 9, 1961

To provide flexibility in handling the business before the Federal Trade Commission and to permit its disposition at different levels to promote greater efficiency.

__________ Interstate Commerce Reorganization

H.R. 8033 Public Law 87247, approved September 14, 1961

Grants the ICC Commissioners the authority to establish boards of three or more qualified employees for reviewing recommended orders entered in cases in which hearings have been held.

__________ Maritime Commission

Organization Plan No. 7 Effective August 12, 1961

This reorganization plan establishes a fivemember Federal Maritime Commission. The members are to be appointed by the President and confirmed by the Senate, and are subject to removal by the President for inefficiency, neglect of duty, and malfeasance in office. The President will designate the Chairman. As Chairman, he will receive $500 a year more than the $20,000 yearly salary provided for the other commissioners. The plan abolishes the present three-member Maritime Board, and separates its functions between the Department of Commerce and the new statutory commission. The Department of Commerce is to be charged with the award of subsidies and promotional functions of the old board, and the new Commission is to be responsible for the regulatory functions of the old board.

__________ Reorganization Authority

S. 153 Public Law 8718, approved April 7, 1961

To continue the practice established by the Hoover Commission, this measure reinstates the authority granted to the President by the Reorganization Act of 1949, to submit reorganization plans to the Congress for reorganizations in the executive branch of the Government. This authority will expire on June 1, 1963. As provided in the act of 1949, the plans will become law unless disapproved by a majority of either the House or Senate by adopting a resolution of disapproval within 60 calendar days after the plan is submitted to Congress.

Reorganization, 1962

Army Department Reorganization

Effective February 17, 1962

Congress by unanimous approval permitted the Department of the Army to reorganize the command and management structures of the Army. The reorganization abolished certain command offices established by law; improved the organizational structure so it will respond quickly and effectively to varied threats across the whole spectrum of conflict from cold to limited to general war. The reorganization plan was submitted to the Armed Services Committees of Congress on January 17, 1962, subject to disapproval by Congress within 30 days. No disapproval resolutions were introduced.

__________ Office of Science and Technology

Reorganization Plan No. II Became effective June 8, 1962

This plan, as approved unanimously by Congress, establishes the Office of Science and Technology as a new unit within the Executive Office of the President to be headed by a Director appointed by the President and confirmed by the Senate, with a deputy appointed in the same manner. Under this arrangement the President will have permanent staff resources capable of advising and assisting him on matters of national policy affected by or pertaining to science and technology such as Major policies, plans, and programs of science and technology of the various agencies of the Federal Government giving appropriate emphasis to the relationship of science and technology to national security and foreign policy. Assessment of selected scientific and technical developments and programs in relation to their impact on national policies. Review, integration, and coordination of major Federal activities in science and technology. Assuring that good and close relations exist with the Nation's scientific and engineering communities so as to further in every appropriate way their participation in strengthening science and technology in the United States and the free world. The plan also prides for certain reorganizations within the National Science Foundation to strengthen the capability of the Director of the Foundation to exert leadership and otherwise further the effectiveness of administration of the Foundation. Specifically it Establishes a new Office of Director of the National Science Foundation. Substitutes for the now existing Executive Committee of the National Science Board a new Executive Committee, consisting of the Director of the Foundation, ex officio, as a voting member and Chairman of the Committee, and of four other members elected by the Board from among its appointive members. Requires the advisory committees to each of the divisions of the Foundation to make their recommendations only to the Director rather than to both the Director and the National Science Board.

SEC Reorganization

S. 2135 Public Law 87592, approved August 20, 1962

As a substitute for Reorganization Plan No. 1 of 1961, this bill authorizes the Securities and Exchange Commission to delegate any of its functions by published order or rule to a division of the Commission, an individual Commissioner, a hearing examiner, or an employee or employee board except rulemaking functions as defined in the Administrative Procedure Act.

Reorganization, 1963

SEC Reforms

S. 1642 Passed Senate July 30; pending in House Interstate and Foreign Commerce Committee

Extends to approximately 5,600 industrial, utility, and banking concerns whose stocks are traded over the counter, the financial disclosure, proxy and insider-trading requirements that have applied since 1934 to companies listed on stock exchanges. The second major objective of the bill is to strengthen the standards of entrance into the securities business, enlarge the scope of self-regulation, and strengthen Commission disciplinary controls over brokers, dealers, and their employees. Specifically the bill extends the reporting rules to over-the-counter companies with gross assets of $1 million or more with at least 750 stockholders on enactment of the legislation and 2 years later to those with at least 500 holders. The bill also provides that present Federal banking regulators, rather than the SEC, will supervise the new reporting provisions when banks are involved.

RESOURCE BUILDUP

Resource Buildup, 1961

Cape Cod Recreation Area

S. 857 Public Law 87126, approved August 7, 1961

This measure provides for the establishment on Cape Cod of a unit of the national park system to preserve the great beach area of Cape Cod as well as contiguous lands suitable and desirable for recreational purposes. The basic idea behind this proposal is to promote the area's unique cultural, scenic, historic, scientific, and recreational values. The area of about 26,670 acres will contain sections of Provincetown, Truro, Wellfleet, Eastham, Orleans, and Chatham and about 53 miles of beaches, 8 square miles of sand dunes, 20 freshwater lakes and important historic sites. Authorizes $16 million in contract authority to acquire land in the seashore.

__________ Delaware River Basin Compact

House Joint Resolution 225 Public Law 87328, approved September 27, 1961

Establishes the Delaware River Commission as a regional agency with jurisdiction over the Delaware River Basin including territory of each of the States of New York, Pennsylvania, New Jersey, and Delaware. The Commission is to have the character of both a State agency of each of the four States as well as an agency of the Federal Government, and its membership is to consist of the four Governors, ex officio, and one commissioner to be appointed by the President. Each member is to have a single vote, and in most instances, majority vote would control.

__________ Lead-Zinc Subsidies

H.R. 84 Public Law 87347, approved October 3, 1961

Authorizes the Secretary of Interior to pay small producers of lead 75 percent of the difference between 14 ½ cents a pound and the market price, and 55 percent of the difference between 14 ½ cents a pound and the market price of zinc.

__________ Migratory Waterfowl--Conservation

H.R. 7391 Public Law 87383, approved October 4, 1961

This measure authorizes for a 7year period, beginning with fiscal 1962, an appropriation not to exceed $105 million to purchase wet lands to be used by wild birds, particularly waterfowl. This appropriation is merely an advance to enable the Federal Government and the State to purchase the necessary lands as a conservation measure to preserve the migratory waterfowl. The $50 million will be repaid to the Treasury from the proceeds of the revenue received from the sale of the so-called duck stamp which, at present, amounts to some $4 million a year. It is estimated that receipts in future years will average between $5 and $6 million a year and, as required by this act, 75 percent of the duck stamp fund will be used to reimburse the Treasury until the entire amount is repaid. The bill requires approval by the Governor of the State involved or the appropriate State agency before funds from the migratory bird conservation fund can be used to purchase the necessary land.

__________ National Fuels Policy

Senate Resolution 105 Senate adopted September 11, 1961

Authorizes the Senate Interior and Insular Affairs Committee to (1) make a complete investigation and study of the current and prospective fuel and energy resources of the United States and their future consumption; (2) study existing and prospective governmental policies and laws affecting fuels to determine what changes should be made in order to provide an effective national fuels policy now and for the future. The committee is to make a report of its findings by January 31, 1962.

__________ Saline Water Conversion Program

H.R. 7916 Public Law 295, approved September 22, 1961

This measure extends the saline water conversion program, enacted in 1952, from 1962 through 1967 and authorizes a total appropriation of $75 million but does not limit the annual appropriation to a pro rata share of the total amount.

Resource Buildup, 1962

Arbuckle Reclamation Project, Oklahoma

H.R. 23 Public Law 87594, approved August 24, 1962

Authorized Federal construction of multiple purpose Arbuckle project in south-central Oklahoma to provide municipal, domestic, industrial water supplies, and food control at a cost of $13.3 million, of which $10.5 million is reimbursable.

__________ Baker Reclamation Project, Oregon

H.R. 575 Public Law 87706, approved March 31, 1962

Authorized Federal construction of Baker Federal reclamation project in Oregon at an estimated cost of $6,168,000. Of this amount, $4,354,600 is for irrigation purposes which is repayable and returnable to the reclamation fund over a 50year repayment period. A part of the multipurpose project is for flood control in the Baker Valley caused by an overflow in the Powder River. The flood control, fish and wildlife benefits and recreational activities will be non-reimbursable.

__________ Chief Joseph Dam Project, Washington

S. 1060 Public Law 87762, approved October 9, 1962

Authorized $3,210,000 to construct control works and a pumping plant at Palmer Lake to enlarge the facilities to irrigate an additional 1,500 acres and supply about 3,650 acre-feet of supplemental water annually to the remaining irrigable area.

__________ Delaware-New Jersey Compact

House Joint Resolution 783 Public Law 87678, approved July 31, 1962

Granted consent of Congress to the States of Delaware and New Jersey to enter into a compact to establish the Delaware River and Bay Authority for developing the area in both States bordering the Delaware River and Bay. The compact has been adopted by identical legislation of the two States.

__________ Frying-Pan-Arkansas Project, Colorado

H.R. 2206 Public Law 87590, approved August 16, 1962

Authorized Department of the Interior to spend up to $170 million to construct facilities for the diversion of water from the Colorado River Basin in western Colorado to the Arkansas River Basin. The water will be used for irrigation, flood control, power, and to meet the municipal water needs of Colorado Springs and other cities.

__________ Mann Creek Reclamation Project, Idaho

S. 405 Public Law 87589, approved August 16, 1962

Authorized Federal construction of Mann Creek Federal reclamation project in Idaho to provide supplemental irrigation water for 4,465 acres and a full supply for 595 acres of land on Mann and Monroe Creeks near the town of Weiser in western Idaho.

__________ National Fisheries and Aquarium Center in the District of Columbia

H.R. 8181 Public Law 87758, approved October 9, 1962

Authorized the Federal construction and operation of a $10 million National Fisheries Center and Aquarium in the District of Columbia or its vicinity. The Center will display freshwater, marine, and shellfishes and other aquatic resources for educational, recreational, cultural, and scientific purposes. Responsibility for operation and maintenance of the Center is lodged with the Department of the Interior. Established a nonpartisan advisory board to advise and confer with the Department concerning management and operation.

__________ Navajo-San Juan-Chama Projects

S. 107 Public Law 87483, approved June 13, 1962

This measure authorized $221 million in appropriations to construct the Navajo Indian irrigation project and the San Juan-Chama project to irrigate a total of 231,530 acres of land, to supplement water supplies for domestic and industrial uses, and to provide recreation and fish and wildlife benefits. The Navajo project is in New Mexico and the San Juan-Chama project is in Colorado and New Mexico. The primary purpose of the Navajo project is to provide approximately 17,000 Navajo Indians with an economy equal to the non-Indians. The San Juan-Chama project will improve and stabilize the economy of the water deficient Rio Grande and Canadian Basins of New Mexico by providing supplemental water to meet rapidly expanding needs. Approximately $106,600,000 of the $221 million is reimbursable, with interest, over a 50year period.

__________ Padre Island National Seashore, Tex.

S. 4 Public Law 87712, approved September 28, 1962

This measure carries out a Presidential recommendation preserving Padre Island National Seashore as a seashore recreational area. Padre Island stretches along the Texas gulf coast from Corpus Christi on the north almost to Mexico on the south for some 117 miles. Causeways at each end of the island make it readily accessible for recreational use. These approaches to the island at Corpus Christi and Brownsville area served by a network of high standard Federal and State highways; however, further highway development will be necessary following enactment of this measure. Limits to 80.5 miles the total mileage of the island to be taken for seashore area.

__________ Point Reyes National Seashore, Calif.

S. 476 Public Law 87657, approved September 13, 1962

To preserve a portion of the few remaining shoreline areas for public recreation, this bill established a 53,000acre area of the Point Reyes Peninsula, beginning approximately 15 miles north of the entrance to the Golden Gate Channel of San Francisco Bay and extending northward for 45 miles. Approximately 26,000 acres within the 53,000acre national seashore have been set aside to preserve most of the ranching and dairying lands as a pastoral zone. Thus, as long as this 26,000 acres are maintained for their present purposes, the Department of the Interior will not acquire this land, except for approximately 500 acres for access purposes.

__________ Rivers and Harbors and Flood Control

H.R. 13273 Public Law 87874, approved Oct. 23, 1962

Authorized $2.3 billion for 91 rivers and harbors projects and 105 flood control projects. This is a comprehensive measure designed to carry forward important programs for development and improvement of the rivers and harbors, for the protection of lives and property against ravages of flood waters, for protection of beaches against erosion, for development of hydroelectric power, and for the general development for all uses of our water resources.

Resource Buildup, 1963

Alaska Public Works Act Amendments

S. 1756 Public Law 88229, approved December 23, 1963

Authorizes the Secretary of Interior, either directly or through another appropriate Federal agency, to collect or settle by compromise or release, claims of the United States against cities and other Alaska public bodies arising out of agreements entered into between the United States and such public bodies pursuant to the Alaska Public Works Act held by him on June 30, 1963. The Alaska Public Works Act of 1949 authorized a program of useful public works to assist in developing Alaska. Under the provisions of the act, the Administrator of General Services was authorized to construct various public works and transfer these to applicant public bodies in Alaska pursuant to agreements under which the applicant agrees to pay not less than 25 percent and not more than 75 percent of the cost of such works. The act further required that the aggregate amount to be recovered under all agreements should not be less than 50 percent of the aggregate cost of all works provided by the United States. In certain cases, because of the work transferred, or the unusually difficult state of the city's finances, repayment of indebtedness according to the terms of the original agreement involves a particular hardship for the community concerned. This bill will permit the Secretary of Interior to negotiate and make such final settlement as he considers justified.

__________ Big Flat Irrigation District, Montana

S. 1687Passed Senate October 21; pending in House Interior and Insular Affairs Committee

Authorizes Secretary of Interior to negotiate and execute an amendment contract with the Big Flat Irrigation District of the Missoula Valley project, Montana. The amendatory contract will reduce the construction charge obligation of the district by $7,190, which represents the unmatured charges as of December 30, 1962, against 164.3 acres of land which have been classified as permanently nonproductive.

__________ Bureau of Reclamation Investigations

S. 46 Passed Senate August 28; pending in House Interior and Insular Affairs Committee

This bill makes non-reimbursable all costs of investigations of a general nature or investigations leading to authorization of reclamation projects or works to provide for uniformity throughout the Bureau of Reclamation and the entire Federal Government.

__________ Canyonlands National Park, Utah

S. 27Passed Senate August 2; pending in House Interior and Insular Affairs Committee

This bill authorizes the establishment of the "Canyonlands" of Utah as the Canyonlands National Park, to be comprised of some 257,000 acres near the confluence of the Colorado and Green Rivers in San Juan County, Utah. Authorizes the Secretary of Interior to acquire lands and interests in lands within the established boundary. Authorizes the continuation of livestock grazing and mining under regulations of the Secretary of the Interior with provisions for their eventual termination. Authorizes the Secretary to provide suitable access roads to the proposed park and to certain facilities and services required in the operation and administration of the park.

__________ Cochiti Reservoir

S. 614 Passed Senate June 19; pending in House Interior and Insular Affairs Committee

Authorizes approximately 50,000 acre-feet of water from the San Juan-Chama unit of the Colorado River storage project for filling a permanent pool for recreational purposes at Cochiti Reservoir of the Rio Grande Basin.

__________ Commercial Fisheries Research and Development Act of 1963

S. 627 Passed Senate July 22; pending in House Merchant Marine and Fisheries Committee

Provides a 5year $28,250,000 program of coordinated aid to the States to develop their commercial fisheries by stimulating research and development on the local level. To achieve this purpose, the Secretary of Interior is authorized to apportion among the States for 5 years an annual amount of $5 million on the basis of a formula designed to give each State a share proportionate with its commercial fishery activity as compared with total commercial fishery activity in the United States. In addition, the sum of $500,000 for each of the first 2 years of the program and $750,000 for each of the last 3 years of the program will be available to the Secretary for allocation to the States as he may determine but giving a preference to those States suffering a commercial fishery failure due to a resource disaster arising from natural causes and to those States in which a new commercial fishery can be developed where none existed before.

__________ Des Moines River Reservoir and Dam

H.R. 1135 Public Law 88117, approved September 6, 1963

Designates the dam being constructed and the reservoir to be formed on the Des Moines River, Iowa, as the Red Rock Dam and Lake Red Rock.

__________ Dixie Project, Utah

S. 26 Passed Senate October 30; pending in House Interior and Insular Affairs Committee

Authorized the Federal construction of the Dixie multipurpose project at an approximate cost of $44 million with almost $40 million reimbursable. The Dixie project will provide supplemental irrigation water to 9,445 acres of presently developed land and full irrigation for 11,615 acres of dry land. The project will provide for the production of electric energy, furnish municipal and industrial water supplies, provide fish and wildlife conservation, recreation, flood control, and sediment control.

__________ Gas and Oil Compact

Senate Joint Resolution 33Public Law 88115, approved September 6, 1963

Grants congressional consent to a 4year renewal and extension from September 1, 1963, to September 1, 1967, of the interstate compact to conserve oil and gas.

__________ Lake Mead National Recreational Area, Ariz. And Nev.

S. 653 Passed Senate August 2; H.R. House Calendar

This bill gives statutory authority to the Lake Mead National Recreation area in Arizona and Nevada created by inter-bureau agreement in 1936. Provides authority to negotiate administrative arrangements with the Hualapai Indians, who are owners of part of the land in the reclamation withdrawal. It also provides authority to acquire certain in-holdings that have prime recreation character. The Secretary of Interior is authorized to exchange federally owned lands outside the recreation area for private in-holdings, at fair market value, and to accept or pay cash to equalize the value. Authorizes hunting, fishing, and trapping within the recreation area in accordance with State law but permits the Secretary after consultation with the State fish and game commissions to designate no hunting areas where and when public safety requires. A major share of the private in-holdings can be acquired through the exchange procedure and it is estimated to acquire the remaining private lands will cost approximately $1,200,000.

__________ Lead-Zinc--Small Producers

H.R. 3845 Public Law 8875, approved July 25, 1963

This bill amends the Lead-Zinc Small Producers Stabilization Act of October 3, 1961, to make certain that payments under this act will be made only to small producers whose primary products are lead and zinc. This purpose is achieved by (a) providing that a small producer must have as his principal product or products lead and zinc; and (2) defining the term "principal product and products" to mean that more than 50 percent of the value of metal or minerals produced or sold is lead or zinc or a combination of both. Under existing law, primary producers of metals and minerals other than lead and zinc, to whom lead and zinc are byproducts, have been eligible to receive payments under the act.

__________ Local Rights in Federally Constructed Reservoirs

H.R. 1696 Public Law 88140, approved October 16, 1963

This act makes the rights for storage space acquired by States or local interests in reservoirs constructed by the Corps of Engineers available to such agencies so long as the space designated for their purpose is physically available. This provision applies to all dams and reservoirs which have or will be constructed by the U.S. Army Corps of Engineers in which local interests have or will contribute to the Government, or have or will contract to pay the Government over a specified period of years, money equivalent to the cost of providing space to be used for storage of water. The interest of the local interests is subject to fulfillment of the conditions under which their contractual agreements were executed.

__________ Michaud Flats Irrigation Project

S. 1582 Passed Senate August 28; pending in House Interior and Insular Affairs Committee

Amends the act of 1954 providing for the construction, maintenance, and operation of the Michaud Flats project, Idaho, by adding a new subsection to facilitate the execution of contracts for the delivery of water to individual Indian allotments.

__________ Nevada-Colorado River Commission

H.R. 277 Public Laws 8815, approved April 26, 1963

Extends to April 22, 1968, the time within which the Nevada-Colorado River Commission may submit its plan for development of approximately 15,000 acres of public lands previously authorized for purchase; and extended to April 22, 1970, the time within which the State may complete the purchase.

__________ Outdoor Recreation Act of 1963

S. 20 Public Law 8829, approved May 28, 1963

The Bureau of Outdoor Recreation established in the Department of the Interior in 1962 was given the overall leadership responsibility in the nationwide recreation effort by coordinating various Federal programs and assisting other levels of Government to meet the demands for outdoor recreation. This act implements and expands the work of the Bureau by authorizing it to Prepare and maintain a continuing inventory and evaluation of outdoor recreation needs and resources of the United States. Prepare a classification system to aid in more effective use and management of these resources. Formulate and maintain a comprehensive plan but take into consideration plans of the various Federal agencies, States and political subdivisions. The comprehensive plan will clarify the needs and demands of the public and focus attention on the current and foreseeable availability in the future of outdoor recreation resources to meet those needs. Plan will identify critical outdoor recreation problems, recommend solutions, and identify the desirable actions to be taken by the Government and private interests. Plan will be submitted to the President and Congress within 5 years; with revised plans at future 5year intervals. Provide technical assistance and advice to the states, political subdivisions, and private interests including nonprofit organizations. Encourage interstate and regional cooperation in planning, acquisition, and development of outdoor recreation resources. Sponsor and assist in research relating to outdoor recreation, directly or by contract or cooperative agreements; undertake studies and assemble information, directly or by contract or cooperative agreements, and disseminate information; cooperate with educational institutions and others in order to establish education programs and activities. Cooperate with and provide technical assistance to Federal departments and agencies and obtain from them information, data, reports, advice, and assistance that are needed and can be furnished; promote coordination of Federal plans and activities generally relating to outdoor recreation. Accept and use donations of money, property, personal services or facilities. Include within the term "United States," the District of Columbia and, to the extent practicable, Puerto Rico, the Virgin Islands, Guam, and American Samoa. In signing the bill into law, President Kennedy said:

I am pleased to sign S. 20 into law today--an act which will promote the coordination and development of effective outdoor recreation programs. The prompt action of the Congress in enacting this legislation which the executive branch recommended is a recognition by the Congress of the vital need to protect and wisely administer this Nation's great heritage of outdoor recreation resources. The bipartisan Outdoor Recreation Resources Review Commission established by the Congress in 1958 has submitted a valuable report demonstrating in a most persuasive manner the need for an affirmative program to insure the best possible use of those resources which will rapidly be swallowed up for other uses unless adequately protected and utilized. This legislation will enable the Department of the Interior, through its newly formed Bureau of Outdoor Recreation, to undertake the planning, research, and coordination tasks outlined by the Outdoor Recreation Resources Review Commission and the Congress. Significant as this legislation is, it is primarily an administrative tool permitting more effective and better coordinated procedures for administering the Federal estate and greater cooperation and assistance to the States. In order to implement this planning program and to provide the financial means for preserving our recreation resources, I hope the Congress will also enact the "land and water conservation fund" legislation which we recommended and which is now pending in the Congress. Overwhelming evidence has been received of the interest of the States in this legislation which would permit those who specifically benefit from our outdoor resources to help acquire land and water areas needed for the generations to come through user charges and other related revenues. The conservation fund will permit the States to assume the major role in preserving outdoor recreation opportunities and facilities, at the same time benefiting the national park, national forest, and national wildlife refuge systems. I believe all Americans will ultimately benefit from the enactment of S. 20, and I am pleased to approve it in the presence of those who were instrumental in its development and passage by the Congress.

__________ Ozark National Rivers

S. 16 Passed Senate October 22; pending in House Interior and Insular Affairs Committee

Provides for the establishment of the Ozark National Rivers in the State of Missouri as a part of the outdoor recreation program and to conserve and interpret unique scenic and other national values and objects of historic interest. This bill incorporates 94,000 acres, including 101 miles of the Current River and 39 miles of the Jacks Fork River, into a Federal Ozark National Rivers. The land will be a relatively narrow strip along the banks of the rivers except for one sizable block on the Current River to preserve a significant example of typical Ozark Mountain landscape and afford sites for administrative and public use developments without disturbing the natural setting of the rivers. The land to be taken is more than 85 percent timbered, 10 percent cropland, and 5 percent pasture. In the case of any farm tract of 500 acres or less, the Department of the Interior must acquire the whole tract unless the owner agrees to sale of a part. Lands acquired in this manner, not essential for park purposes, may be exchanged for other needed lands. Owners of improved property in the area to be acquired may retain the right of use and occupancy for noncommercial residential purposes until the death of the owner or spouse, or the death of the survivor of either of them. Establishes an Ozark National Rivers Commission composed of four members appointed on recommendations of the county courts of Carter, Dent, Shannon, and Texas Counties, Mo., two members appointed from recommendations of the Governor of the State, and one designated by the Secretary of the Interior. The life of the Commission is for 10 years and is to be consulted from time to time by the Secretary of the Interior relative to carrying out the establishment, development, and administration of the area.

__________ Pacific Northwest Power Sales

S. 1007 Conference report filed December 19, 1963

Guarantees electric consumers in the Pacific Northwest first call on electric energy generated at Federal hydroelectric plants of that region and guarantees electric consumers in other regions reciprocal priority. Purpose.To define the primary marketing area of the Bonneville Power Administration as the Pacific Northwest and to establish workable, economic ground rules for transfers of hydroelectric energy between the Pacific Northwest and any interconnected regions. Need.At present, there is no geographical limitation on the marketing area of the Bonneville Power Administration; only limitation is that of economic transmission distance. If a preference agency in the Pacific Southwest, or elsewhere in the West, has access to the Columbia River power system over an extra high voltage interconnection between the two regions, under existing law it can demand power that is needed in the Pacific Northwest. This applies to both secondary and firm power. Marketing area.Under this bill the primary marketing area of the Bonneville Power Administration includes Oregon, Washington, and that part of Montana west of the Continental Divide. Those portions of Nevada, Utah, and Wyoming which are within the Columbia drainage basin may be included if the Secretary of the Interior determines them to be within the marketing area of the Federal Columbia River power system. All or any part of Idaho may be included if the Secretary determines it to be within the marketing area. Also includes limited contiguous areas served by non-generating distribution cooperatives with distribution systems both within and without the region. Effect of the bill.Only surplus energy generated at Federal plants in the Pacific Northwest can be marketed outside of the above described area. Contracts for sale of energy outside the area can be terminated after 7days' notice of the power is needed in the Northwest area. However, marketing areas which sell power to the Northwest will have reciprocal preference for first call on their own power. Secretary of the Interior is required to give Bonneville Power Administration customers at least 30days' notice of any proposed contract for sale of surplus energy or peaking capacity for use outside the Bonneville Power marketing area.

__________ Pecos River Basin

Senate Joint Resolution 49 Passed Senate October 22; pending in House Interior and Insular Affairs Committee

Authorizes the Secretary of Interior to undertake a project for the control and reduction of phreatophytes in the Pecos River Basin in order to achieve savings of water.

__________ Rio Grande Dams

H.R. 4062 Public Law 88237, approved December 23, 1963

Authorizes the Secretary of Interior to dispose of the power to be generated at the Amistad Dam as he now does with Falcon Dam power. It also authorizes the construction of the necessary transmission lines to integrate the transmission of the two projects for a more effective operation if the interconnection of these two projects is determined to be financial feasible.

__________ River Basin Authorization

H.R. 8667 Public Law 88253, approved December 30, 1963

Authorizes a total of $816,847,000 for rivers and harbors and flood control for fiscal 1964 and 1965.

__________ River Basin Planning

S. 1111 Passed Senate December 4, pending in House Interior and Insular Affairs Committee

Authorizes a comprehensive long-range Federal-State program for the development of the Nation's natural resources through the coordinated planning of water and related land resources. Establishes a Federal Water Council composed of the Secretaries of Interior, Agriculture, HEW, and the Chairman of the Federal Power Commission, with the Chairman of the Council designated by the President. The Council is charged with the responsibility of preparing biennial assessments of water supplies and requirements of the various water resources regions of the United States, and for appraising the interrelationships of water regions and the adequacy of existing and proposed policies and programs to meet the Nation's water needs. Provides that the President may declare the establishment of a river basin water planning commission on request of the Water Resources Council and half of the States involved. The commission may be established in (1) a region, (2) a river basin, or (3) a group of river basins. Provides the commission with the necessary power to hold hearings, take testimony, and with the general authority to accomplish its purpose. Authorizes $5 million a year for 10 years as matching funds to aid States in intrastate and interstate water resources planning.

__________ Riverton Reclamation Project, Wyoming

H.R. 4423 Public Law 8810, approved April 19, 1963

Authorized the Secretary of Interior to continue furnishing water to irrigate lands in the Third division Riverton Reclamation project Wyoming, during calendar year 1963, pending a permanent solution to the repayment and drainage problems.

__________ Sleeping Bear Dunes

S. 792 Passed Senate December 20, 1963; pending in House Interior and Insular Affairs

Committee Authorizes the Department of Interior to establish in Leelanau and Benzie Counties, Mich., the Sleeping Bear Dunes National Lakeshore. The area includes some 32 miles along bays and bluffs, beaches, and dunes on the mainland, and 13 miles of varied shoreline on South Manitou Island. This encompasses about 77,000 acres including inland lakes which comprise about 11,000 acres and South Manitou Island which contains about 5,300 acres. Establishes an Advisory Commission with which the Secretary is required to consult on matters relating to the development of the lakeshore and the condemnation of property. Authorizes appropriations of not more than $4,750,000 for acquisition of necessary lands for the lakeshore.

__________ Small Reclamation Projects Act Amendments

S. 283 Passed Senate October 17; pending in House Interior and Insular Affairs Committee

Amends the Small Reclamation Project Act of 1956 to increase the authorization ceiling from $100 to $200 million and to provide that where an interest charge is required on any portion of the proposed works that it conform with the Water Supply Act of 1958. Adds a new section permitting the Secretary to advance up to half the funds necessary to planning a project and preparing a loan application. It permits the funds so advanced to be non-reimbursable in the even the project is not constructed. This provision is comparable with the current practices of the regular Federal reclamation programs where local organizations are required to provide half of the investigation funds and Federal expenditures are not recoverable if the project is not developed. These advances will be repaid in full if the project is built. The new section also provides authority to consolidate for repayment any loan that may have been made for planning purposes by another Federal agency, in order to avoid separate outstanding loans from two different agencies relating to the same project. The Small Reclamation Project Act of 1956 was enacted to supplement the Federal reclamation laws by providing for Federal loans to non-Federal irrigation or multiple purpose projects in the 17 Western States. It limits loans by the Secretary on irrigation developments to $5 million on a single project but provides for grants for flood control on projects where the cost does not exceed $10 million.

__________ Wapato Indian Irrigation Project, Washington

H.R. 641 Public Law 88159, approved October 28, 1963

Approves an order of the Secretary of Interior canceling and deferring certain delinquent irrigation charges and penalties amounting to $4,494.58 and $10,356.03, respectively, owed by non-Indian landowners served by the Wapato Indian irrigation project, Washington, and eliminated 78.12 acres of non-irrigable land from that project.

__________ Wilderness Act

S. 4 Passed Senate April 9, 1963: pending in House Interior and Insular Affairs

Committee Authorized "setting aside" some 35 million acres of the estimated 700 to 800 million acres of federally owned lands as a wilderness unavailable for commercial use or development on a lease or rental basis. Major provisions of the Wilderness Act:

Policy declaration.Establishes a National Wilderness Preservation System, composed of appropriate federally owned land, to assure the Nation of an enduring resource of wilderness. Wilderness definition as related to the bill.Areas where man's work is substantially unnoticeable, where there is outstanding opportunity for solitude or a primitive or unconfined type of recreation, which are of adequate size to make practicable preservation as wilderness, and which may have ecological, geological, or other scientific, educational, scenic, and historical values. Areas included.Four categories of wilderness type areas in the national forests will become units of the wilderness preservation system: Wild, wilderness, roadless (canoe), primitive. Wild, wilderness, and roadless areas have been reviewed by the Forest Service and reclassified as such areas by the Secretary of Agriculture; thus the bill completes their designation as part of the new wilderness system. The 37 unreviewed primitive areas are subject to review by Secretary of Agriculture and recommendation to Congress by the President with boundary adjustments considered proper to include only areas of predominant wilderness value. President may recommend exclusion of parts of any primitive area not of predominant wilderness value, and he may recommend inclusion of national forest lands adjacent to the primitive area which are of predominant wilderness value but not to exceed the original size of the primitive area. President's recommendation may be disapproved by either the House or Senate at any time during the next following complete session of Congress. If disapproved, the primitive area may be reviewed and resubmitted to Congress within 2 years. All primitive areas must be reviewed and recommendations submitted to Congress within 10 years. All areas not continued in the wilderness system under the procedure within 14 years10 years for review plus time for congressional consideration and a resubmittal return to the same status as other national forest lands. National park areas.Directs Secretary of Interior to review the park system units containing 5,000 acres or more of contiguous, roadless lands, and to report his recommendation for incorporation of each such unit into the wilderness system. Before Congress convenes each year, the President is to advise Congress of his recommendations and, as in the case of national forest areas, either the House or Senate, may disapprove. Wilderness refugees and game ranges.Provides for inclusion of portions of such areas as Secretary of Interior may recommend to the President within 10 years; the President recommends to Congress, and neither House may disapprove. Under similar procedure, the Secretary of Interior may recommend inclusion of portions of new refuges or ranges added to his jurisdiction in the next 15 years, but such recommendation by the Secretary must be made within 2 years after the addition of the new unit. Area protection.Provides protection for areas intended to be proposed for wilderness from any and all appropriation under public land laws, to the extent considered necessary by the appropriate Secretary, pending their review and consideration for wilderness status. However, such segregation ends in 5 years if no proposal has been submitted to Congress or on rejection of the proposal by the President or Congress. Area limitation.No area, other than national forest, park system, and wildlife refuge and game rangelands specifically provided for in the act, can be added to or eliminated from the wilderness system except by "specific, affirmative authorization by law." Hearings.Provides for public hearings prior to submission of recommendations to Congress on permanent inclusion of areas in the wilderness system, thus assuring that interested States, counties, and Federal agencies will be notified and given an opportunity to submit data on potential alternative uses of the area.

Commercial use.Prohibits any commercial enterprise in the wilderness, except as provided in the act, i.e., continuation of grazing in some areas and mining as stated below, and subject to existing private rights. Prohibits permanent road construction, use of motor vehicles or motorized equipment, motorboats, landing of aircraft, or use of any other mechanical transport. In the case of emergencies, these prohibitions could be relaxed briefly. Mining.Mining activities may continue in Mount McKinley National Park, Death Valley, Organ Pipe Cactus, and Glacier National Monuments. Commissions.Authorizes establishment of a fivemember Presidential Land Use Commission in any State having more than 90 percent of its total area owned by the Federal Government; thus, this section is applicable only to Alaska, where 99 percent of the land is federally owned.

__________ Wildlife Conservation in Oregon and California

S. 793 Passed Senate July 15; House Calendar

Provides a permanent basis for administration of the Tule Lake, Lower Klamath, and Upper Klamath National Wildlife Refuges in Oregon and California to promote the conservation of wildlife resources on the Pacific flyway.

__________ Water Resources Research Act

S. 2 Passed Senate April 23, pending in House Interior and Insular Affairs Committee

Authorizes up to a $20 million a year Federal aid program to colleges and universities to stimulate and expand water resources research and scientific training. Policy statement.To assure an abundance of water both as to quality and quantity, to stimulate research, investigations, and experimentation, and to encourage training of needed scientists. Title I.Authorizes payments starting at $75,000 and increasing to $100,000 a year to land-grant college, State university, or other institution of higher education in each State to establish a water resources research institute or center for research work in the water resources field. Authorizes an additional $1 million, increasing $1 million annually to $5 million in fiscal 1968 and thereafter on a dollar-for-dollar matching basis to be made available to State institutes or centers for water research projects. Places responsibility for administering the program under the Secretary of the Interior. Secretary must make an annual progress report to Congress. Title II.Establishes a second grant, matching, and contract fund for aid to educational institutions, private foundations, private firms or individuals or with local, State and Federal agencies to undertake research in water resources problems. Authorizes an appropriation of $5 million to the Secretary in 1964, increasing $1 million a year for 5 years and continuing at $10 million a year thereafter for grants, contracts, matching, or other arrangement for water resources research. Allocation of these funds not restricted to the centers or institutions established under title I but are to assure that any center of competence which can contribute to such needs will have an opportunity to do so within the dollar limits of the program.

SOCIAL SECURITY

Social Security, 1961

Social Security Amendments

H.R. 6027 Public Law 8764, approved June 30, 1961

The 1961 social security amendments provide new or increased benefits to 4.4 million people, totaling some $800 million in the first year, with the increased costs being met through additional payroll taxes. The major provisions as enacted into law are:

Increases in minimum benefit.From $33 to $40 the minimum monthly retirement benefit at 65 and the minimum monthly disability benefit, with proportionate increases in minimum benefits payable to dependents and survivors. This provision provides increased benefits for 2,175,000 persons, amounting to $170 million, during the first 12 months of operation. Benefits at age 62 for men.Provides the option of early retirement to men at age 62 with benefits on an actuarially reduced basis. In the first year 560,000 would get benefits amounting to $440 million. Liberalizes insured status requirements.Provides that a worker is fully insured for benefit purposes if he has one quarter of coverage for every year elapsing after 1950 and up to the year of disability, death, or attainment of age 65 for men and 62 for women. This would bring 160,000 people on to the rolls in the first year for a total of $65 million in benefits. Increases widow's, widower's, and parent's benefits.Increases aged widow's, widower's, and surviving parent's benefits from 75 to 82 ½ percent of the workers' retirement benefit. (Will affect 1,525,000 persons by $105 million in first 12 months.) Establishes a period of disability.Extends for 1 year, to June 30, 1962, the period within which a person may file to establish a period of disability to determine eligibility for and amount of old-age, survivors, and disability insurance benefits. Facilitates coverage for certain State and local employees.Adds New Mexico to list of States permitted this method of coverage, and employees who originally had chosen not to come under the program will be given an additional chance to elect to be in the group which has coverage. Time extended to December 31, 1962. Ministers and Christian Science practitioners have until April 16, 1962, to elect; however, if a minister or Christian Science practitioner dies after September 12, 1960, and before April 16, 1962, his survivor would have the right to elect coverage up to April 16, 1962. Increases tax rates.Beginning in 1962, contribution rates will be raised by one-eighth of 1 percent each for employees and employers and by approximately three-sixteenths of 1 percent for self-employed. Increases public assistance.Increases for 1 year (to June 30, 1962) the amount of public assistance payments which would be subject to Federal matching for old-age assistance, aid to the blind, and aid to the permanently and total disabled programs (by approximately $2.50), at an approximate cost of about $20 million. Increases in public assistance.As enacted into law, increases Federal matching for the lower payment States by increasing from $30 to $31 the amount the Federal Government will match at the 80percent base level, and increases the maximum which will be matched from $65 to 66effective October 1, 1961, for a 9month period instead of 1 year as in the Senate bill. Authorized assistance to U.S. nationals.As modified, the program will apply only to U.S. citizens rather than U.S. nationals, and will continue for only 1 year rather than indefinitely. As noted in the Senate provision, the temporary assistance is for those U.S. citizens who have returned, or been brought back to this country because of illness, destitution, war, threat of war, or invasion. Medical care.The Senate provision assuring freedom of choice to aged persons in selecting certain medical care has been held in abeyance to permit a more thorough exploration of its ultimate effect.

Social Security, 1962

Public Assistance Amendments

H.R. 10606 Public Law 87543, approved July 25, 1962

Liberalized many of the public assistance provisions of the Social Security Act and as enacted into law it Increases Federal matching for aged, blind, and disabled on public assistance by $5 a month each, effective October 1, 1962. New increase raises matching formula to twenty-nine thirty-fifths of the first $35 up to a maximum of $70. This means a total of $140 million in the first full year of operation and assists 2.7 million persons. Reinstates the unemployed parent provision in the aid to dependent children program which expired June 30, 1962. Program reinstated for 5 years, adds a provision for Federal matching for employable parents working on community projects. Assists approximately 275,000 persons and costs about $73 million a year. Makes permanent the provision allowing Federal matching for ADC children removed by courts into foster homes. Extends to June 30, 1964, assistance to citizens returning from foreign countries because of destitution, illness, or crisis. Increases Federal matching for public assistance rehabilitation services at a cost of $40 million a year. Provides for Federal matching for second parent in the ADC program at a cost of $34 million a year. Increases child welfare services authorization from present $25 million a year to $30 million for 1963, $35 million in 1964, and $40 million in 196566, $45 million in 196768, and $50 million in 1969 and thereafter. Earmarks $5 million of this amount for "day care" in 1963 and $10 million in subsequent years to be provided only in those instances where it is determined in the interest of the child and mother and that a need exists.

__________ Retirement Income Credit

H.R. 6371 Public Law 87876, approved October 24, 1962

Enacted a measure increasing to 1,524 from $1,200 the maximum annual amount a retired person can subtract from his tax payment. This retirement credit, which has to be reduced by any social security or railroad retirement benefits the retired person receives, is intended to give equal treatment to retired persons who do not receive Government-managed annuities.

__________ Self-employed Voluntary Pensions

H.R. 10 Public Law 87792, approved October 10, 1962

Enacted a bill to encourage establishment of voluntary pension plans by self-employed persons by permitting them to set aside up to $2,500 or 10 percent of their annual income, whichever is less, in an approved retirement program; and would permit them to deduct from taxable income up to a maximum of $1,250 in any one year for contributions to the fund. Bill permits a self-employed person who does not own more than 10 percent of his business to contribute these amounts through a partnership if the plan is not discriminatory among the partners. In addition the bill would Permit any self-employed person to contribute up to the lesser of 10 percent of earned income or $2,500; but he may deduct only one-half of the amount so contributed or a maximum of $1,250. Establish earned income as the base for deduction, which means professional fees and other compensation for personal services. When capital and personal services are material income-producing factors, earned income is considered to be 30 percent of business income or $2,500, whichever is greater. Require self-employed persons establishing retirement plans for themselves to cover all fulltime employees with more than 3 years' service in a comparable plan and requires immediate vesting for all covered employees. Provide for funding a pension plan through contributions to a trust with a bank as trustee, or by purchase of annuity contracts from an insurance company through custodial accounts if its investments are made solely in stock of a regulated investment company which issues only redeemable stock, or solely in life, endowment, or annuity contracts issued by an insurance company, through purchase of nontransferable face-amount certificates, or through direct investment in a new series of Government bonds issued for purposes of the bill. Permit additional contributions to the funds by employees, and also permits the owner-employee to make additional nondeductible contributions on his own behalf up to $2,500. Limit payment of benefits to owner-employees and their employees until they reach age 59 ½ except in the event of permanent disability of death; and requires payment to begin not later than age 70 ½. Require that if an owner-employee dies, his remaining interest must be either distributed to beneficiaries within 5 years, used within the same period to buy an annuity payable over the beneficiary's life expectance, or paid out under a plan of distribution already stated over a period no longer than the life expectance of the employee or the joint life expectance of the employee and his spouse. Require that lumpsum distributions be taxed by treating 20 percent of the distribution as taxable income. Require that all plans be approved by the Secretary of the Treasury.

SPACE

Space Race

Space, 1961

Aeronautics and Space Council

H.R. 6169 Public Law 8726, approved April 25, 1961

This is an administration proposal to make certain changed in section 201 of the National Aeronautics and Space Act of 1958, which established the National Aeronautics and Space Council to advise the President on space matters. The Council is composed of the President, the Secretary of State, the Secretary of Defense, the Administrator of NASA, and the Chairman of the Atomic Energy Commission; and authority is reposed in the President to appoint, by and with the advice and consent of the Senate, a member from the Federal departments and agencies of the Government and three civilian members. The President, in his request to Congress, stated that he contemplated making the Council an active and useful instrumentality. He further stated that he desired to place the Council under the chairmanship of the Vice President. The present measure would amend the law so as to replace the President by the Vice President, as Chairman of the Council. It would also repeal the existing authority of the President to appoint a member from the Federal departments and agencies of the Government and three members from civilian life, and would make certain conforming changes. There are no changes which would affect the present concept of the Council, which was established as an advisory body to the President.

__________ NASA Authorization for 1962

H.R. 6874 Public Law 8798, approved July 21, 1961

This measure authorizes a total appropriation of $1,784,300,000 to the National Aeronautical and Space Administration for fiscal 1962.

Space, 1962

Communications Satellite Act of 1962

H.R. 11040 Public Law 87624, approved August 31, 1962

Enacted a bill which would Create a private communications satellite corporation for profit but subject to Government regulation to operate a worldwide commercial communications satellite system. Permit the corporation to plan, establish, and operate with other foreign governments and businesses a commercial communications satellite system; however, its use must conform to this Nation's foreign policy. Corporation's authority extends to operating satellite terminal stations when licensed by the Federal Communications Commission. Permit voting stock, eligible for dividends, to be sold half to the communications companies and half to the public, issued initially not more than $100 a share. Require 6 of the corporation's 15 directors be elected by the communications companies, with no company voting for more than 3. Six to be elected by other stockholders and three appointed by the President with Senate approval. Require the President to coordinate activities of the various Government agencies, supervise the corporation's relations with foreign governments, enter into plans for the system, and permit the President to exercise his authority to help attain coordinated and efficient use of the spectrum. Require FCC to regulate the corporation, with advice from NASA on technical aspects of the system. Permit the corporation to negotiate with foreign governments, entities, or international agencies, but the corporation must notify the Department of State when entering into negotiations so the Department can advise the corporation of relevant foreign policy considerations. Subject the corporation to the provisions of the District of Columbia Business Corporation Act unless inconsistent with this act. Reserve the right to repeal, alter, or amend this act.

__________ Space Authorization Act

H.R. 11737 Public Law 87584, approved August 14, 1962

Authorized an appropriation of $3,744,115,250 in fiscal 1963 for National Aeronautics and Space Administration. Of the total $2,957,878,000 is for research, development, and operations, $786,237,250 for construction of facilities including $55 million for land purchases at Cape Kennedy, and $16 million for land purchases at Mississippi Test Facility.

Space, 1963

Space Authorization Act

H.R. 7500 Public Law 88113, approved September 6, 1963

Authorizes appropriations totaling $5,350,820,400 for National Aeronautics and Space Agency for fiscal 1964. Of the research and development fund, $42,175,000 was earmarked for the communications satellite program with the proviso that scientific or technological services could not be for the exclusive benefit of any private organization except on a reimbursable cost basis.

TAXES

Taxes, 1961

Corporate and Excise Extension of 1961

H.R. 7446 Public Law 8772, approved June 30, 1961

This measure continues to July 1, 1962, the present 52 percent corporate income tax rate which would otherwise revert to 47 percent, and the present rates of excise tax on distilled spirits, beer, wine, cigarettes, passenger cars, automobile parts and accessories, general telephone service, and transportation of persons.

__________ Clay and Shale--Tax Treatment

H.R. 7057 Public Law 87312, approved September 26, 1961

Permits miners of clay and shale to include as a depletion allowance the process of manufacturing brick and tile. For purposes of computing the percentage depletion deduction is to be 50 percent of the gross income from the finished product but not in excess of $12.50 for each ton of this clay or shale used in the finished product. The type of products for which the shale or specified types of clay must be used are building and paving brick, drainage and roofing tile, sewer pipe, flowerpots, or similar products. This provision is in the form of an election which taxpayers may make for all open years beginning before January 1, 1961.

__________ Identifying Numbers--Tax Returns

H.R. 8876 Public Law 87397, approved October 5, 1961

To improve enforcement and collection of internal revenue taxes, this measure facilities the expanded use of automatic data processing equipment by IRS and by enabling the Service to match information returns now filed with tax returns. Requires individuals who file tax returns to record their account numbers on their tax returns. Individuals filing information returns (such as dividends or interest) are required to request the account numbers of those about whom the information is being filed and include the numbers on the information returns. IRS intends to use social security numbers as the account numbers in order to minimize the number of persons having to be assigned new numbers.

__________ Membership Organization Taxes

H.R. 929 Public Law 87109, approved July 26, 1961

This bill provides that prepaid membership dues income of membership organization may, at the election of the taxpayer for tax purposes, be spread over the period during which there is a liability on the part of the organizations to provide the service. The membership organizations to which the provision applies are limited to those, such as automobile clubs, which have no capital stock and make no distributions of net earnings to members. A special rule is provided which spreads over a 5year period the revenue loss which would otherwise occur in each of the first 3 years of transition to the new method for reporting this prepaid income. The provision is effective for taxable years beginning with calendar 1961.

__________ State Tax Stamps

H.R. 1777 Public Law 87371, approved October 4, 1961

To prohibit transporting counterfeit State tax stamps in interstate and foreign commerce, this bill broadens the definition of "tax stamp" in the criminal code to include any tax stamp, tax token, tax matter imprint, or any other form of evidence of an obligation running to a State, or evidence of a discharge thereof.

__________ Unemployment Tax Credits

H.R. 2585 Public Law 87321, approved September 26, 1961

This bill is designed to prevent the imposition of a double tax in the case of the Federal and State unemployment taxes which arise because of a technical deficiency in the Federal tax laws. At present, due to State laws, cases can arise where the usual credit for State unemployment taxes is not available where a trade or business changes hands within the first 20 weeks of a calendar year. This bill corrects the faulty operation of the Federal laws by making the usual credit available in these cases. This measure applies prospectively only but will apply to all business corporations, both corporate and non-corporate.

Taxes, 1962

Consumer Finance Companies

H.R. 8824 Public Law 87768, approved October 9, 1962

Exempted certain consumer finance companies from the personal holding company tax.

__________ Disaster Areas--Tax Treatment

H.R. 641 Public Law 87426, approved March 31, 1962

This measure allowed taxpayers in any disaster area, declared as such by the President of the United States, to charge off their casualty losses on the preceding year's tax return when the disaster happens after January 1 and before the time prescribed by law for filing their income tax returns. This bill is directed toward the coastal areas hit by high winds and floods during the spring of 1962.

__________ Railroads--Tax Relief

H.R. 12526 Public Law 87710, approved September 27, 1962

Permitted any regulated transportation company to spread its net operating loss over 7 succeeding years in computing its taxable income. This is 2 years longer than the normal carry-forward provision for other businesses. This new 7year carry-forward can be used by regulated airlines, buslines, shipping lines, and truckers as well as railroads.

__________ Revenue Act of 1962

H.R. 10650 Public Law 87834, approved September 16, 1962

Enacted a major revision and reform of our Federal tax system. Major provisions:

Investment credit.Provides for a 7percent tax credit for business investments in depreciable machinery and equipment. Limits such credit to $25,000 plus 25 percent of the tax liability above such amount. Permits any unused investment credit to be carried forward and used in any of the 5 succeeding years or carried backward and used to offset tax liability during the preceding 3year period, but no carry-back could apply before December 31, 1962. Expense allowances.Allows expenses incurred with respect to appearances before or communications with legislative bodies or individual members of such bodies and expenses incurred in connection with informing employees or stockholders of legislative matters, as a trade or business expense for tax purposes. Entertainment deductions.Allows a deduction for entertainment-type expenses which directly preceded or followed a substantial and bona fide business discussion, including business meetings at a convention, if the taxpayer establishes that such items were associated with the active conduct of his trade or business. Mutual savings institutions.Provides new rules for calculating the deduction allowable for additions to bad debt reserves. Limits such reserves to 12 percent of the total deposits and the amount that may be transferred to such reserves to 60 percent of the taxable income (50 percent in cases of stock savings and loan associations) or a sum not to exceed 3 percent of the loans on real property. Specified that in no case may a thrift institution have reserves greater than those permitted under existing law, 12 percent of deposits. Distributions by foreign trusts.Provides for taxing American beneficiaries of foreign trusts created by U.S. grantors in substantially the same manner as if the income had been distributed to the beneficiary as it was earned. Mutual insurance companies.Provides for taxing both investment and underwriting income of mutual fire and casualty insurance companies at the ordinary corporate income tax rates. Provides an exemption for very small companies whose total receipts do not exceed $150,000 and exempts companies whose total receipts are between $150,000 and $500,000 from the tax on underwriting gains. Earned income from sources outside the United States.Limits the amount of annual income an American citizen living in a foreign country could exclude from U.S. taxation to $35,000 or $20,000 per year for each of the first 3 years. Controlled foreign corporations.Subjects the earnings of non-manufacturing foreign subsidiaries of American corporations to immediate taxation unless the subsidiary is located in an underdeveloped country and the earnings are reinvested in the underdeveloped country. Gains from sale of depreciable property.Provides for the taxation of gains from the sale of depreciable property as ordinary income instead of at the capital gains rate. Tax treatment of cooperatives.Provides for the taxation of earnings of cooperatives (except Rural Electrification Act coops) either as income for the cooperative or as dividends to the patrons. Foreign real property.Provides for the inclusion of foreign real property in the gross estate of decedents who are citizens or residents of the United States. Reporting of interest and dividends.Requires the reporting of dividends and interest payments of $10 or more during a year to the Internal Revenue Service. Sets civil penalties for noncompliance. Expenditures by farmers for clearing lands.Allows a tax deduction of up to $5,000 for expenses incurred in clearing land for use in farming.

__________ Tax Rate Extension Act of 1962

H.R. 11879 Public Law 87508, approved June 28, 1962

Extended for 1 year from July 1, 1962, the 30 percent normal tax on corporate income, also the excise tax rates on liquor, tobacco, automobiles, parts, and accessories. Those rates were scheduled for reduction on July 1, 1962, under the Tax Rate Extension Act of 1961. Effective November 15, 1962, the transportation tax on air travel is reduced from 10 percent to 5 percent, and the transportation tax on the domestic portion of international air travel is repealed. On the same date the transportation tax on other forms of travel is repealed. Effective January 1, 1963, repealed the 10percent communications tax on general telephone service, leased private telephones and teletypes, community television antennas, and closed circuits.

Taxes, 1963

Accrued Vacation Pay Deductible

H.R. 6246 Public Law 88153, approved October 17, 1963

Extends to January 1, 1965, period during which accrued vacation pay may be deducted as a business expense for income tax purposes even though liability to specific individual has not been established.

__________ Child Care Expenses

H.R. 2085 Public Law 884, approved April 2, 1963

Permits wives, deserted by their husbands, to deduct up to $600 a year for the care of a dependent son or daughter, stepson or stepdaughter under age 12, and also for dependents who are physically or mentally incapable of caring for themselves if the care is to enable the individual involved to be gainfully employed. To be eligible, the woman must have been deserted by her husband, must not know his whereabouts at any time during the taxable year, and must have applied to a court to compel him to pay support. Under existing law, this provision is available to widows.

__________ Redeemable Ground Rents

H.R. 1597 Public Law 889, approved April 10, 1963

This bill affects the tax treatment in the State of Maryland of both the buyer of a home subject to a redeemable ground rent and the person selling this real property subject to the redeemable ground rent. For the home buyer the ground rent paid is treated as a mortgage interest payment and is deductible by him for tax purposes. The seller of the real property subject to the redeemable ground rent is treated as if he had sold the property subject to a mortgage in a face amount equal to the redemption price of the redeemable ground rent. As a result, the redeemable ground rent is taken into account in determining his sale price for the property and is reflected in any gain, or loss, recognized to him. The deduction of ground rent, as the equivalent of a mortgage interest payment, is available for 1962 and subsequent years. In the case if the seller of the property, however, the new treatment (in this bill) in general applies only in the case of transactions occurring after the date of enactment.

__________ Tax Rate Extension Act of 1963

H.R. 6755 Public Law 8852, approved June 29, 1963

Continues for 1 year to July 1, 1964, the present corporate tax rate of 52 percent and the present rate of excise tax on distilled spirits, beer, wine, cigarettes, passenger cars, automobile parts and accessories, general telephone service, and the transportation of persons by air. Without this extension the following excise taxes would have been reduced or repealed on July 1, 1963 1. Distilled spirits, reduced from $10.50 to $9 per proof gallon; 2. Beer, reduced from $9 to $8 per barrel;

3. Wines, which are subject to various tax rates which would be reduced by approximately 11 percent 4. Cigarettes, reduced from 8 to 7 cents a pack;

5. Passenger cars, reduced from 10 to 7 percent of the manufacturers' price; 6. Auto parts and accessories, reduced from 8 to 5 percent of the manufacturers' price; 7. General telephone service, reduced from 10 percent of the amount paid to zero; 8. Transportation of persons by air, reduced from 5 percent of the amount paid to zero.

__________ Unemployment Tax

H.R. 4655 Public Law 8831, approved May 29, 1963

As enacted into law, this bill reduces the extra Federal unemployment tax attributable to the Temporary Extended Unemployment Compensation Act of 1961 from 0.4 to 0.25 percent with respect to wages paid in 1963. This will make the combined net Federal unemployment tax for 1963 wages 0.65 percent (apart from any reduced credit provisions that might apply in particular States). Substitutes for the $350 million limitation on grants to the States to cover the administrative costs of unemployment compensation and the employment service, a flexible ceiling of 95 percent of the estimated receipts under the regular 0.4 percent net Federal unemployment tax. Applied to fiscal year 1964, this ceiling will be about $460 million. Extends from 5 to 10 years the period during which States may obligate, for administrative purposes, certain funds transferred from excess Federal tax collections. Increases the ceiling on amounts which may be granted to States for administrative expenses for fiscal year ending June 30, 1963, from $400 million to $407,148,000.

__________ Unemployment Tax Rates

H.R. 8821 Public Law 88173, approved November 7, 1963

Eases Federal unemployment insurance taxes established to repay the Government for extra compensation payments made to unemployed workers between 1957 and 1960 by freezing the rates for from 4 to 5 years and stretching out the payments over a longer period of time. The 16 States faced with tax increases were Alabama, Alaska, Arkansas, California, Delaware, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, and West Virginia. The Temporary Unemployment Compensation Act of 1958 allowed States to extend the length of time during which unemployment checks could be paid to unemployed workers and, to finance these extra benefits, Congress authorized Federal loans to States that used the act. Each State was to reimburse the Federal Government before January 1, 1963 and, if it did not, the Government was to levy an additional tax of 0.15 percent of the State's taxable wage base on employers each year until the amount was paid. The above 16 States have not repaid and thus, under existing law, the employers were required to pay an extra 0.15 percent tax on 1963 wages, 0.30 percent on 1964 wages, 0.45 on 1965 wages, and 0.60 percent on 1966 wages. This bill does not change the higher tax rate for 1963 and 1964, but it does freeze the rate at 0.30 percent for 1965, 1966, 1967, and 1968. Alaska, Michigan, and Pennsylvania used another source of unemployment compensation funds to make payments to jobless workers in that they received advances from the Federal unemployment trust fund account under title XII of the Social Security Act. Existing law provided for repayment of advances made before September 13, 1960, in a manner similar to that provided under the Temporary Unemployment Compensation Act. It set an extra tax on employers of 0.15 percent beginning with wages paid in 1961 and increasing 0.15 each year through 1970 wages. This bill freezes the tax at 0.15 percent for 196367, after which the tax will increase by 0.15 percent each year until the advance is repaid. This bill also allowed the States to avoid having the extra Federal taxes levied on their employers for both the TUC and title XII advances by permitting the extra tax for any year not to go into effect if a State, prior to November 10 of a given year, paid to the Treasury a specific installment on the advances.

TRANSPORTATION

Transportation, 1961

Canadian Vessels--Alaska

S. 707 Public Law 8777, approved June 30, 1961

This bill permits Canadian vessels to provide passenger service between ports in southeastern Alaska, and passenger and freight service between Hyder, Alaska, and other points in southeastern Alaska and in the United States outside Alaska, either directly or via a foreign port, until such time as the Secretary of Commerce determines that U.S.flag service is available to provide the necessary transportation.

__________ Federal Aid Highway Act, 1961

H.R. 6713 Public Law 8761, approved June 29, 1961

The Senate adopted the conference report on the Federal Aid Highway Act of 1961, which is primarily a revised authorization and refinancing plan for the completion of the National System of Interstate and Defense Highways. The 13year program, authorized in 1956, was originally estimated to cost the Federal Government, in matching funds, approximately $25 billion. This figure, in the 1961 estimate, has been increased to $37 billion, which is a $11.56 billion increase. The total cost will be $41 billion, of which $37 billion is the Federal Government's share for the Interstate System. Upon completion, the Interstate System will be comprised of 41,000 miles of roads. To date, 10,408 miles have been completed, and some form of work is underway on a total of 25,383 miles, or about 62 percent of the total system. This measure permits a State or political subdivision to use or permit the use of the airspace above and below the highway, not only for parking, but for other purposes as well, provided such use will not impair the full use and safety of the highway or otherwise interfere with the free flow of traffic on the Interstate System. It also continues for another 2 years (July 1, 1963) the authority for "incentive" bonus to States which enter into agreements to control billboards on the Interstate System (one-half of 1 percent). A new feature is to authorize the use of defense access road funds to repair highways damaged by military equipment in constructing defense installations. This provision applies to damage caused by construction work begun before June 1, 1961, and still in progress on that date, and to damage caused by construction commenced or for which a contract is awarded on or after June 1, 1961. The 1960 act authorized $925 million for each of fiscal years 1962 and 1963 for primary, secondary, and urban (ABC) roads. This phase was not changed in this bill. To help finance the highway program, we have Continued gasoline and diesel fuel taxes at 4 cents a gallon through October 1, 1972. Increased taxes (through October 1, 1972) on Trucks weighing over 26,000 pounds from $1.50 to $3 per 1,000; Inner tubes from 9 cents to 10 cents a pound;

Highway tires from 8 cents to 10 cents a pound;

Tread rubber from 3 cents to 5 cents a pound.

Authorized truckowners to pay the Federal user tax in four quarterly installments, and made numerous technical and other changes. Requested the Treasury Department to make a scientific study to obtain data on the percentage of gasoline purchased by retail dealers which is lost by shrinkage or evaporation and to make a report before January 1, 1962. Provided for a 1year deferral of the diversion of the remaining onehalf5 percentage points of the Federal excise tax on trucks, buses, and trailers from the general funds of the Treasury to the highway trust fund.

__________ Mass Transit Program

S. 1922 Public Law 8770, approved June 30, 1961

Authorized a new $75 million program to help overcome commuting problems in cities$25 million is authorized for demonstration grants (covering up to twothirds of project cost) for projects to explore ways of overcoming mass transit problems; $50 million is authorized for low-interest rate loans to public bodies for acquiring, constructing, and improving transportation facilities and equipment.

Transportation, 1962

Federal Aid Highway Act of 1962

H.R. 12135 Public Law 87866, approved October 23, 1962

Authorized a total of $2.3 billion for fiscal years 196365 to continue the Federal-aid highway program for the regular system; for additional amounts for roads on Federal lands; for completion of the Rama Road in Nicaragua and the Inter-American Highway in Central America and Panama; and for relocation payments for families and businesses displaced by acquisition or clearance of rights-of-way for Federal-aid highways. It also authorizes relocation payments for families and businesses displaced by acquisition or clearance of rights-of-way for any Federal-aid highway. Authorizes a new category of public lands development roads and trails for important roads on the public domain. Permits use of secondary highway funds for roads on that system located in urban areas. Promotes cooperative transportation planning in certain urban areas by Federal, State, and local authorities. Permits use of additional Federal-aid funds for highway planning and research.

Transportation, 1963

Alaska Railroad

S. 622 Passed Senate June 24; House calendar

This bill gives congressional sanction to the methods of operating the Alaska Railroad which have been in effect by administrative discretion since shortly after the railroad was established in 1914. It allows the railroad to continue operations characteristic of private enterprise by vesting in the President the authority to set wages, establish rules and performance rating, and bargain collectively with chosen representatives of the employees without regard to the Civil Service Act or the Veterans' Preference Act. The Veterans' Preference Act will continue to be observed in all cases in the initial employment of personnel by the railroad.

__________ Coast Guard Authorization

H.R. 79 Public Law 8845, approved June 21, 1963

This bill provides that, after appropriations for fiscal year 1964 are completed, funds may not be appropriated for the use of the Coast Guard for construction of shore or offshore establishments, or for procurement of vessels or aircraft, unless the appropriation has been authorized by legislation enacted after December 31, 1963. The bill also gives the Secretary of the Treasury authority to use funds appropriated to the Coast Guard for construction purposes to replace facilities that have been damaged or destroyed. In addition such funds can be used to construct needed public works costing not more than $200,000 for any one project.

__________ Collisions at Sea--Prevention

H.R. 6012 Public Law 88131, approved September 24, 1963

Authorizes the President to accept, on behalf of the United States, regulations formulated at the Fourth International Conference on Safety of Life at Sea, held in London, May 17 to June 17, 1960, and to proclaim an effective date for the regulations consistent with that established by the Intergovernmental Maritime Consultative Organization. Requires the regulations to be published in the Federal Register, and after the date specified in the President's proclamation, that they have effect and be followed by all public and private vessels of the United States and by all aircraft of U.S. registry to the extent made applicable. The regulations will not apply to the harbors, rivers, and other inland waters of the United States nor to the Great Lakes and their connecting and tributary waters as far east as the lower exit of the St. Lambert lock at Montreal; nor to the Red River of the north and the rivers emptying into the Gulf of Mexico and their tributaries; nor to aircraft in any territorial waters of the United States. Provides that requirements of regulations relating to number, position, range of visibility, or arc of visibility of lights to be displayed by vessels will not apply to vessels of the Navy or the Coast Guard, whenever the Secretary of the Navy or of the Treasury certify that it is impossible for a particular vessel to comply with the regulations. In such a case, the vessel is required to conform as closely to the applicable regulations as is feasible.

Summary of the Three Year Kennedy Record (Legislation)