The Committee recommends that the States, as needed, adopt two additional measures to insure effective means of meeting natural disasters: 1. States that have not done so designate their State civil defense agency as the agency responsible for disaster-relief functions, as provided in the Model Civil Defense Act developed by the Council of State Governments and the Federal Civil Defense Administration. 2. Each State set up a disaster emergency or contingency fund, or make other arrangements by which assistance may be extended to localities in the event of natural disasters. The Joint Federal-State Action Committee recommends that 1. The President take such steps as necessary to put into effect a schedule of State-local expenditures to guide the Federal Civil Defense Administration in its grants of assistance. 2. The governors and legislative bodies of the several States insure that necessary resources are available to meet the minimum financial obligations before applying for disaster relief to the Federal Government. Suggested Schedule of Minimum State-Local Contributions for Natural Disaster Relief Before Receiving Federal Aid The Joint Federal-State Action Committee agrees that a greater share of the responsibility for the promotion and regulation of the peacetime uses of atomic energy, particularly in the fields of health and safety, should be vested in the State governments. The Joint Federal-State Action Committee recommends that the President urge Congress to amend for the present the Atomic Energy Act of 1954, which amendments should 1. Recognize that the States have authority to protect the public health and safety and that cooperation is essential between the States and Federal Government in the development of health and safety standards pertaining to the use of nuclear materials. 2. Include a specific statement recognizing the power of the States to adopt, inspect against, and enforce standards, not in conflict with those adopted by the Federal Government, for the protection of the public health and safety. 3. Authorize Federal-State agreements under which the States involved would assume, on behalf of the Federal Government, responsibilities for inspection of facilities and other appropriate functions within their States. 4. Specifically authorize Federal agencies to provide, with State financial participation, necessary training to State personnel in order to enable the States to render inspection and other services contemplated. Under this proposal the States would pay the salaries and expenses of State employees while in training in facilities and programs provided by Federal agencies. The Committee further recommends that the governors and the legislatures of the several States enact the necessary legislation to assume the increased responsibilities; to this end it is especially recommended that the States which have not already done so : 1. Provide for necessary top-level coordination of all aspects of atomic energy regulation and development, preferably by an official directly responsible to the governor. However, all operating functions should be lodged in appropriate State agencies in relation to their general functions. The establishment of radiation-protection standards at the State level, involving radiation sources regulated by the Atomic Energy Act, should be part of an integrated or at least closely coordinated set of standards for the limitation of radiation hazards from all controllable sources and should be assigned to the agency or agencies having general authority in this broad field. 2. Undertake studies of the many special problems involving State activities arising from the increasing use of nuclear materials for peacetime purposes. 3. Cooperate with other States, the AEC, the Department of Health, Education, and Welfare, the National Committee on Radiation Protection, and other interested bodies and agencies in the development of uniform comprehensive health and safety codes relating to radiation hazards from all controllable sources. 4. Undertake programs for training State personnel concerned with the regulation and development of atomic energy, and with the general field of radiation-hazard control, including participation in the Federal-State programs mentioned above. Urban Renewal The Joint Federal-State Action Committee believes that effective action to meet the problems of slum clearance and urban renewal requires increased financial and administrative participation by the States. The Committee further feels that the States should organize for this purpose and be ready to assist their communities-technically and financially. A first step in this direction can be the establishment of a State housing and urban renewal agency and the assumption of financial responsibility for making the planning advances in connection with title I of the Housing Act (urban renewal program). The Joint Federal-State Action Committee recommends that1. Each State create an agency with special responsibility for handling problems of urban development, housing, and metropolitan planning. As an early function, it should assume fiscal responsibility-either through loans or grants-for planning advances in connection with urban renewal projects. State effort should add to the total investment in attacking, on a comprehensive basis, urban blight and in promoting urban health. 2. The President direct the Housing and Home Finance Administration to assist in attaining this objective in every way possible. Local Telephone Service Tax Taxes The Joint Federal-State Action Committee believes that the local telephone service tax is a logical revenue source for State and local governments. It recommends, therefore, that the Federal tax on local telephone service be changed so as to provide a 40-percent tax credit to those States enacting a 4-percent local telephone tax, not counting taxes already levied prior to the adoption of the credit device. This would mean that the Federal liability under the local telephone service tax would be discharged to the extent of 40 percent for any taxpayer paying this amount of tax to his State government. At the end of 5 years, the Federal levy should be reduced 4 percentage points automatically. The Joint Federal-State Action Committee recommends that 1. The President request Congress to take necessary action to provide up to a 40-percent Federal tax credit against the Federal local telephone service tax for States enacting or increasing such taxes, the credit arrangement to last for 5 years at which time the Federal tax will automatically be reduced by 4 percentage points. 2. The governors and the legislatures of the several States take necessary steps to avail themselves of this additional revenue source. Part III: Pending Items Taxes The following taxes are under considertaion to make available additional revenue sources in general relation to the reduction of Federal expenditures as additional functions and responsibilities are assumed by States and localities. Estate Tax The Joint Committee has established a technical committee of experts to make recommendations as soon as possible in two major areas: (1) The most effective means of increasing the State credit against the Federal estate tax and (2) the most efficient method of simplifying, and to a practical degree, standardizing Federal and State inheritance tax and estate legislation. In this connection the technical committee is to suggest the elements of a model statute to promote this objective.. Cigarette Tax The technical tax group will submit recommendations for the most effective method of making a portion of the Federal tax on cigarettes available as an additional revenue source for State and local governments. Miscellaneous Excise Taxes The Joint Committee agrees that such miscellaneous excise taxes as those on admissions, amusements, club dues, and use of safe deposit boxes should be considered for repeal. If and when repealed, these tax sources should be made available primarily for the use of local governments. Functions Low-Rent Housing The Joint Committee has instructed the staffs to prepare revised recommendations for consideration at the next meeting. |