• Those programs duplicative of other departments or agencies are consolidated. • Those programs that serve a valid purpose are transferred to more appropriate agencies. • Those programs which can be better performed outside the government will be privatized. Following is a brief agency-by-agency description of the legislation. The terminations, transfers and consolidations are to be completed over a 36 month period under the direction of a temporary Commerce Programs Resolution Agency. The savings indicated are preliminary Congressional Budget Office Figures over 5 years. Administrative Functions The office of the Secretary, General Counsel, Inspector General, and other administrative functions are terminated. Estimated Savings: $250 million Economic Development Administration The EDA provides grants and assistance to loosely-defined "economically depressed" regions. EDA's functions are duplicated by numerous other federal agencies including the Departments of Agriculture, HUD, and Interior, the Small Business Administration, the Tennessee Valley Authority and the Appalachian Regional Commission. The parochial nature of the program often targets EDA grants to locations with healthy economies which do not need federal assistance. The EDA is terminated and its grant programs eliminated, transferring outstanding obligations to the Treasury Department for management or sale. Estimated Savings: $1.139 billion Minority Business Development Agency Although MBDA has spent hundreds of millions on management assistance—not capital assistance, since 1971, the program has never been formally authorized by Congress. The MBDA's stated mission, to help minority-owned businesses get government contracts, is duplicated by such agencies and programs as the Small Business Administration and its failed 8(a) loan program, and Small Business Development Centers, along with the private sector. The MBDA would be terminated and its 98 field offices closed. Estimated Savings: $183 million United States Travel and Tourism Administration This Administration seeks to promote travel and tourism in the United States through trade fairs and other promotional activities. According to the Heritage Foundation, "the agency often works with private sector organizations, including the Travel Industry Association of America, to organize events such as the 'Discover America Pow Wow' or the 'Pow Wow Europe.' There is no justification for federal involvement in such promotional activities of a commercial nature." Because functions such as these are already extensively addressed by states, localities, public sector organizations, and the private sector, the USTTA is immediately terminated. Estimated Savings: $75 million Technology Administration The Technology Administration currently works with industry to promote the use and development of new technology. Because government in general, and the Federal Government in particular, is poorly equipped to “pick winner and loser” in the marketplace frequently allowing political criteria rather than market criteria determine the choice-this agency is terminated, including the Offices of Technology Policy, Technology Commercialization, and Technology Evaluation and Assessment. The Industrial Technology Service programs, including the Advanced Technology Program (ATP) and the Manufacturing Extension Partnerships, are terminated; these programs are often cited as prime examples of corporate welfare, wherein the Federal Government invests in applied research programs which should be conducted in the private sector. The weights and measures functions of the National Institute for Standards & Technology would be transferred to the National Science Foundation. The National Technical Information Service, a clearinghouse for technical government information, would be privatized. Estimated Savings: $1.872 billion COMMITTEE ON GOVERNMENTAL AFFAIRS WILLIAM V. ROTH, JR., Delaware, Chairman TED STEVENS, Alaska JOHN GLENN, Ohio CARL LEVIN, Michigan DAVID PRYOR, Arkansas JOSEPH I. LIEBERMAN, Connecticut DANIEL K. AKAKA, Hawaii BYRON L. DORGAN, North Dakota Franklin G. Polk, Staff Director and Chief Counsel Opening statements: Senator Cohen CONTENTS Senator Glenn Senator Smith Senator Pryor Senator Dorgan Senator Levin Senator Lieberman Prepared statement: Senator Akaka WITNESSES TUESDAY, JULY 25, 1995 Hon. Robert Dole, a U.S. Senator from the State of Kansas Hon. Ernest F. Hollings, a U.S. Senator from the State of South Carolina Hon. John D. Rockefeller IV, a U.S. Senator from the State of West Virginia L. Nye Stevens, Director, Federal Management Issues, U.S. General Account- Allan I. Mendelowitz, Managing Director, International Trade, Finance, and THURSDAY, JULY 27, 1995 Ambassador Clayton Yeutter, former Secretary of Agriculture, and former 122 Barbara Hackman Franklin, former Secretary of Commerce 129 137 147 Paul Huard, Senior Vice President for Policy, National Association of Manufacturers 151 Edward Hudgins, Director of Regulatory Studies, The Cato Institute 155 John Knauss, Dean Emeritus, Graduate School of Oceanography, University of Rhode Island 166 Murray Comarow, The American University 170 Jeffrey C. Smith, Executive Director, Commercial Weather Services Association 174 Bryan Norcross, Chief Meteorologist, WTVJ-NBC, Miami, FL 186 Edward Kwiatkowski, Director, Great Lakes Manufacturing Technology Center, and Vice President, Cleveland Advanced Manufacturing Program National Telecommunications and Information Administration The NTIA, an advisory body on national telecommunications policy, would be terminated, including its grant programs. Federal spectrum management functions would be transferred to the Federal Communications Commission. Estimated Savings: $315 million Patent & Trademark Office Providing for patents and trademarks is a Constitutionally-mandated government function. Our proposal would transfer this office to the Justice Department, requiring the PTO to be supported completely through fee collection. Estimated Savings: $375 million Economic & Statistics Administration The Bureau of the Census, another Constitutionally-mandated function, is transferred to the Treasury Department. Select General Accounting Office recommendations for savings at the Bureau would be implemented. The Bureau of Economic Analysis is transferred to the Federal Reserve System to ensure the integrity of data. The superfluous ESA bureaucracy would be eliminated. Estimated Savings: $827 million National Oceanic & Atmospheric Administration While the activities of NOAA are only tangentially related to the promotion of commerce, it makes up over 40 percent of the Department of Commerce budget. The individual functions of this agency would be sent to more appropriate agencies or departments: National Marine Fisheries Service-The enforcement functions of this agency would be transferred to the Coast Guard, while the scientific functions would be transferred to the Fish and Wildlife Service. Seafood inspection would be transferred to the Department of Agriculture, which already carries out most food inspection programs. State fishery grants and commercial fisheries promotion are terminated. National Ocean Service-Geodesy functions are transferred to the U.S. Geological Survey. Coastal and water pollution research duplicated by the Environmental Protection Agency is terminated. Marine and estuarine sanctuary management would be transferred to the Interior Department, which already manages some fisheries. Nautical and aeronautical charting is privatized, as the private sector undertakes this activity already. National Environmental Satellite, Data & Information Service-The weather satellites of this agency are transferred to the National Weather Service to consolidate these functions, while the NESDIS data centers would be privatized. Office of Oceanic & Atmospheric Research-Because many of its activities are duplicative of other federal agencies or could be better served by the private sector, this office is terminated. The labs which could operate in the private sector will be sold and the remaining labs will be transferred to the Interior Depart ment. NOAA Corp-The NOAA Corps is terminated and its vessels sold to the private sector. Services can be obtained in the private sector and its fleet is in disrepair. Estimated Savings: $2.338 billion Bureau of Export Administration The BXA is one of several agencies responsible for monitoring U.S. Exports that may compromise National security. Because this function remains important to the country, our legislation would reassign these functions as follows: Export Licensing Functions transferred to the Defense Department—The determination of export controls would be transferred to the Defense Department. The United States Trade Representative would advise the Defense Department in disputed cases. Export Enforcement Functions transferred to Customs Service-The Customs Service, which already has the staff, expertise, and facilities, would enforce the export licensing determined by the Defense Department. Estimated Savings: $91 million International Trade Administration The Department of Commerce claims to be the lead in trade promotion, but actually plays a small part. Five percent of Commerce's budget is dedicated to trade promotion, and it comprises only 8 percent of total federal spending on trade promotion. The ITA is the primary trade agency within the Department of Commerce. Our legislation would transfer the offices of the ITA to agencies where their functions may be better performed: Import Administration transferred to the Office of the United States Trade Representative-The USTR, which already plays a role in this area, would make determinations of unfair trade practices. U.S. And Foreign Commercial Service transferred to the Office of the United States Trade Representative-The domestic component of USFCS is terminated, and the foreign component would be transferred to the Office of the United States Trade Representative, which already takes the lead in trade policy. International Economic Policy terminated-This office would be terminated, and these functions would continue to be carried out by the USTR. Trade Development Functions terminated—The functions of this office would be terminated and replaced with a series of Industry Advisory Boards, composed of representatives from the private sector to provide advice to policy makers, at no cost to the Federal Government. Estimated Savings: $294 million TOTAL SAVINGS OVER FIVE YEARS: $7.765 Billion Hon. SPENCER ABRAHAM United States Senate, Washington, DC 20510 NATIONAL TAXPAYERS UNION DEAR SENATOR ABRAHAM: National Taxpayers Union is pleased to endorse the "Commerce Department Dismantling Act of 1995," as proposed by you and Congressman Dick Chrysler. Your excellent proposal will streamline the Federal Government and provide significant savings for America's taxpayers. The terminations, transfers and consolidations provided in your proposed legislation would be completed over a thirty-six-month period. The "Abraham/Chrysler Act" would save $7.765 billion over 5 years. The General Accounting Office has reported that the Commerce Department "faces the most complex web of divided authorities," sharing its "missions with at least 71 federal departments, agencies, and offices." Your bill will finally end this wasteful duplication. Again NTU is pleased to endorse the “Abraham/Chrysler Commerce Department Dismantling Act of 1995." We urge your colleagues to join you in this effort. Sincerely, DAVID KEATING, Executive Vice President. DK/br BUSINESS LEADERSHIP COUNCIL Hon. SPENCER ABRAHAM United States Senate, Washington, DC 20510 DEAR SENATOR ABRAHAM: The Business Leadership Council a newly-formed business association of entrepreneurial business leaders who are committed to working to limit the size of government and to expand global economic growth strongly endorses the Abraham-Chrysler Commerce Department Dismantling Act of 1995. BLC represents businesses of all types and sizes who want what is best for America rather than a perk or subsidy that may be best in the narrow, short-term, selfinterest of their individual business. Its members are willing to take bold, principled positions and are not afraid to confront the status quo. They recognize that, although some of their businesses may benefit from particular Commerce Department programs it is clear America is better off saving the money, reducing subsidies, and eliminating unnecessary regulations. |