time. Section 316(g) was later added in order to give deserving farmers more time to file these leases. Last year Public Law 89-29 extended the time for filing these leases until June 15, 1965.

Again this year the committee has been presented with problems in the administration of this aspect of the tobacco program. In order to provide an adequate remedy for this problem for 1966 and the 3 subsequent years, the committee has approved this bill which would permit any lease and transfer of an allotment to be effective notwithstanding the failure to file a copy of the lease with the county committee prior to the closing date if (1) the Secretary finds that a lease in compliance with the provisions of this section was agreed upon prior to such closing date, and (2) the terms of the lease are reduced to writing and filed in the county office in which the farms involved are located not later than the 31st day of July of the crop year to which the lease relates.

The committee recognizes that in some cases, through mistake or misunderstanding, the copy of the lease was not filed with the county committee within the prescribed time. Unless there is an opportunity to correct this mistake, tobacco planted pursuant to such leases will be subject to marketing penalties. This bill would extend the time for filing such leases with the county committee until July 31 of each year.

It would not extend the time for entering into such leases, its only purpose being to correct situations resulting from late filing.

DEPARTMENTAL APPROVAL

Hearings were held on this bill on June 2 by the Tobacco Subcommittee. A spokesman for the Department testified in favor of the bill as amended by the committee.

COST

There would be no additional cost to the Government as the result of the enactment of this bill.

COMMITTEE POSITION

The committee does not like to see any farmer penalized because of a mere inadvertent failure to comply with a technicality of law or departmental regulation. Neither does it wish to burden the House with frequent requests to correct the inequities that arise under present law. The committee points out, therefore, that this bill should meet the problem faced by these tobacco growers during the period of time that section 316 remains in effect.

CHANGES IN EXISTING LAW

In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, and existing law in which no change is proposed is shown in roman):

AGRICULTURAL ADJUSTMENT ACT OF 1938

*

SEC. 316. Notwithstanding any other provision of this Act for the crop years 1962 through 1969, the owner and operator of any farm for which a tobacco acreage allotment (other than a Burley tobacco acreage allotment, or a cigar-filler and cigar-binder (types 42, 43, 44, 53, 54, and 55) tobacco acreage allotment) is established may lease any part of such allotment to any other owner or operator of a farm in the same county for use in such county on a farm having a current tobacco allotment of the same kind. Such lease and transfer of allotment shall be recognized and considered valid by the county committee provided the conditions set forth in this section are met. In the case of Maryland (type 32) tobacco, no farm shall be eligible for lease of 1962 or 1963 allotment from the farm unless at least 75 per centum of the allotment for the farm was actually planted during each of the years 1960 and 1961, nor shall a farm be eligible for lease of 1964 through 1969 Maryland tobacco allotment from the farm unless at least 75 per centum of the allotment for the farm was actually planted on such farm during each of the two immediately preceding years.

(b) Any lease shall be made on an annual basis and on such terms and conditions, except as otherwise provided in this section, as the parties thereto agree.

(c) The lease and transfer of any allotment shall not be effective until a copy of such lease is filed with and determined by the county committee of the county in which the farms involved are located to be in compliance with the provisions of this section. Such lease and transfer shall not be effective unless a copy of the lease is filed with the county committee prior to a closing date established by the Secretary, which date shall be no later than the normal planting time in the county: Provided, That any lease and transfer of an allotment shall be effective, notwithstanding the failure to file a copy of the lease with the county committee prior to such closing date, if (1) the Secretary finds that a lease in compliance with the provisions of this section was agreed upon prior to such closing date, and (2) the terms of the lease are reduced to writing and filed in the county office in which the farms involved are located not later than the 31st day of July of the crop year to which the lease relates.

If the normal yield established by the county committee for the farm to which the allotment is transferred does not exceed the normal yield established by the county committee for the farm from which the allotment is transferred by more than 10 per centum, the lease and transfer shall be approved acre for acre. If the normal yield for the farm to which the allotment is transferred exceeds the normal yield for the farm from which the allotment is transferred by more than 10 per centum, the county committee shall make a downward adjustment in the amount of the acreage allotment transferred by multiplying the normal yield established for the farm from which the allotment is transferred by the acreage being transferred and dividing the result by the normal yield established by the farm to which the allotment is transferred.

(d) The lease and transfer of any part of a tobacco acreage allotment determined for a farm shall not affect the allotment for the farm from which such acreage allotment is transferred or the farm to which it is transferred, except with respect to the crop year specified in the lease. The amount of acreage allotment which is leased from a farm shall be considered for purpose of determining future allotments to have been planted to tobacco on the farm from which such allotment is transferred and the production pursuant to the lease and transfer shall not be taken into account in establishing allotments for subsequent years for the farm to which such allotment is transferred. The lessor shall be considered to have been engaged in the production of tobacco for the purpose of eligibility to vote in the referendum.

(e) Under the provisions of this section not more than five acres of allotment may be leased and transferred to any farm: Provided, That the total acreage allotted to any farm after such transfer shall not exceed 50 per centum of the acreage of cropland in the farm.

(f) The Secretary shall prescribe such regulations as he considers necessary for carrying out the provisions of this section.

(g) Notwithstanding the provisions of subsection (c) relating to the filing of a lease with the county committee, the lease and transfer of an allotment for the 1965 crop year shall be effective if, (1) the Secretary finds that a lease in compliance with the provisions of this section was agreed upon prior to the normal planting time in the county, as determined by the Secretary, or June 15, 1965, whichever is earlier, and (2) the terms of the lease are reduced to writing and filed in the county office in which the farms involved are located within twenty days of the date this subsection becomes law.

(h) Notwithstanding the provisions of subsection (c) relating to the filing of a lease with the county committee, the lease and transfer of an allotment for the 1963 crop year shall be effective if, (1) the County Committee, with the approval of a representative of the State Committee, finds that a lease in compliance with the provisions of this section was agreed upon prior to the normal planting time in the county, as determined by the Secretary, or June 15, 1963, whichever is earlier, and (2) the terms of the lease are reduced to writing and filed in the county office in which the farms involved are located within twenty days of the date this subsection becomes law.

89TH CONGRESS 2d Session

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HOUSE OF REPRESENTATIVES

REPORT No. 1607

PUBLIC DEBT LIMIT

JUNE 2, 1966.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. MILLS, from the Committee on Ways and Means, submitted the

following

REPORT

[To accompany H.R. 15202]

The Committee on Ways and Means, to whom was referred the bill (H.R. 15202) to provide, for the period beginning on July 1, 1966, and ending on June 30, 1967, a temporary increase in the public debt limit set forth in section 21 of the Second Liberty Bond Act, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

I. SUMMARY

Your committee's bill, H.R. 15202, provides a temporary debt limitation of $330 billion beginning on July 1, 1966, and ending on June 30, 1967. The administration recommended a debt limitation of $332 billion for this period. Your committee concluded that the $330 billion limitation is restrictive, yet contains enough flexibility to permit efficient management of the public debt.

The temporary debt limitation for the fiscal year ending June 30, 1966, is $328 billion. On July 1, 1966, unless this bill is passed, the debt limitation will revert to the permanent limitation of $285 billion. It is expected that there will be outstanding at that time a debt subject to limitation of approximately $319 billion.

The actual debt limitations for selected years since 1947, together with the proposed limitation under this bill, are shown in table 1, below.

TABLE 1.-Statutory debt limitations, specified fiscal years 1947 through 1966, and proposed limitation for the fiscal year 1967

In June 1965, Congress increased the temporary additional statutory debt limitation from $39 billion (for the fiscal year 1965) to $43 billion for the fiscal year 1966. This action raised the combined permanent and temporary additional debt limitation to $328 billion for the fiscal year ending on June 30, 1966. Previously, in June 1964, Congress increased the temporary additional debt limitation from $30 billion to $39 billion for the last 2 days of the fiscal year 1964 and for the entire fiscal year 1965. This action set the combined permanent and temporary additional debt limitation at $324 billion for the period from June 29, 1964, through June 30, 1965.

Under existing law, the temporary additional debt limitation is scheduled to expire at the close of June 30, 1966. If the expiration is permitted, the debt limitation will revert to the permanent ceiling of $285 billion, well below the $319 billion of debt subject to limitation expected to be outstanding at that time.

Estimates of the Federal budget totals for fiscal years 1966 and 1967

The January budget. The budget document presented by the President in January of this year projected administrative budget receipts of $100.0 billion in fiscal year 1966 and administrative budget expenditures of $106.4 billion. The budget, therefore, indicated a deficit of $6.4 billion for fiscal year 1966. With respect to fiscal year 1967, the budget projected administrative budget receipts of $111.0 billion, expenditures of $112.8 billion, and a deficit of $1.8 billion.

Current estimates of receipts.-In his appearance before your committee on May 23, the Secretary of the Treasury with respect to the fiscal year 1966 stated: "While a refined estimate of the improvement in revenue is not possible at this time, we are using $102.5 billion of revenues as our planning base. We may do somewhat better than this perhaps as much as one half billion dollars better-but for