91ST CONGRESS 1ST SESSION

S. 993

IN THE SENATE OF THE UNITED STATES

APRIL 15, 1969

Referred to the Committee on Public Works and ordered to be printed

AMENDMENT

Intended to be proposed by Mr. MURPHY to S. 993, a bill to provide assistance to the State of California for the reconstruction of areas damaged by recent storms, floods, landslides, and high waters, viz: On page 5, beginning with line 12, strike out all through line 17 on page 6, and insert in lieu thereof the following:

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SEC. 5. In the administration of the disaster loan pro

gram under section 7 (b) (1) of the Small Business Act, as 3 amended (15 U.S.C. 636 (b) (1)), in the case of property 4 loss or damage sustained by any person in the State of 5 California as a result of the storms, floods, landslides, and 6 high waters occurring subsequent to November 30, 1968, and

7 prior to June 1, 1969, the Small Business Administration,

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to the extent such loss or damage is not compensated for by

Amdt. No. 11

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1 insurance or otherwise and upon a determination by the Ad2 ministration that the failure of such person to obtain insur

ance to cover such loss or damage resulted from the unavail

4 ability of such insurance on reasonable terms and conditions(1) may make direct loans to such person without regard to whether (A) the required financial assistance

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is otherwise available from private sources, or (B) such

person has personal or business assets which could be

used to alleviate the loss or damage sustained: Provided,

That, except in the case of a loan to a low-income individual (determined in accordance with such standards and criteria as the Administration shall by regulation prescribe), the interest rate on any such loan shall be the average annual interest rate on all interest-bearing obli

gations of the United States having maturities of twenty

years or more then forming a part of the public debt as computed at the end of the fiscal year next preceding the date of the loan and adjusted to the nearest one-eighth of 1 per centum; and

(2) shall, in the case of a loan to a low-income individual, on that part of the loan in excess of $500 and

at the borrower's option, (A) cancel up to $2,500 of the principal obligation of the loan, or (B) waive interest

due on the loan in a total amount of not more than

$2,500 over a period of not to exceed three years.

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SEC. 6. In the administration of the emergency loan 2 program under subtitle C of the Consolidated Farmers Home 3 Administration Act of 1961, as amended (7 U.S.C. 19614 1967), in the case of property loss or damage sustained by 5 any person in the State of California as a result of the storms, 6 floods, landslides, and high waters occurring subsequent to 7 November 30, 1968, and prior to June 1, 1969, the Secre8 tary of Agriculture, to the extent such loss or damage is not 9 compensated for by insurance or otherwise and upon a deter10 mination by the Secretary that the failure of such person to 11 obtain insurance to cover such loss or damage resulted from 12 the unavailability of such insurance on reasonable terms and 13 conditions

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(1) may make loans to such person without regard to whether the required financial assistance is otherwise available from private sources: Provided, That, except in the case of a loan to a low-income individual (determined in accordance with such standards and criteria as the Secretary shall by regulation prescribe), the interest rate on any such loan shall be the

average annual interest rate on all interest-bearing obligations of the United States having maturities of twenty years or more then forming a part of the public debt as

computed at the end of the fiscal year next preceding the

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date of the loan and adjusted to the nearest one-eighth

of 1 per centum; and

(2) shall, in the case of a loan to a low-income individual, on that part of the loan in excess of $500 and

at the borrower's option, (A) cancel up to $2,500 of the principal obligation of the loan, or (B) waive interest due on the loan in a total amount of not more than

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$2,500 over a period of not to exceed three years.

Senator JORDAN. Our first witness this morning is the sponsor of S. 993, the distinguished senior Senator from California and a former member of this committee, Senator George Murphy.

Senator, it is a pleasure to welcome you and we look forward to your presentation. We are delighted to have you with us this morning, Senator, and will be glad to hear from you at this time, sir.

STATEMENT OF HON. GEORGE MURPHY, A U.S. SENATOR FROM THE STATE OF CALIFORNIA

Senator MURPHY. Thank you very much, sir.

Needless to say, I am delighted to have the opportunity to appear before this distinguished committee, on which I had the pleasure of serving for 4 years. As a member I came to know my colleagues as being objective and farsighted in evaluating the need for new programs, and I am certain at the conclusion of these hearings, when the dimension of this disaster and the personal tragedies that have accompanied it are made known, you will give early and favorable consideration to S. 993. The people of California will be particularly grateful. Mr. Chairman, I have taken the liberty this morning to bring three experts from the State of California: Mr. James Moe, director of public works for the State; Mr. Charles P. Samson, director of the California State disaster office; and Mr. James G. Stearns, director of conservation, all of whom have much wider experience and more expert knowledge than I have of the matter at hand.

Mr. Chairman, this disaster is one of the worst disasters ever to hit my State. The destruction literally exceeds any figment of the imagination.

Homeowners, unable to obtain insurance, who invested in property and a home for their families, have lost a lifetime of work and savings. Farmers and growers have not only seen the destruction of their property, but have come to realize in many instances that their land will be uncultivable for years-washing away livelihoods and dreams of the future.

Heavily traveled roads, streets, trails, and highways in many cases exist only on maps today.

Dams have been breached.

Water, electrical, and sewer systems have been ruined.

And, worst of all, lives have been swept away in the downpours' aftermath.

While the State, county, and local governments, and individuals are receiving emergency aid through legislation which this committee has recommended and approved previously, the cost of reconstruction, as the devastation worsens, is making restoration impossible without further Federal assistance.

As you will note, sections 1 through 3 of S. 993, provide for the repair and rebuilding of highways, streets, roads and timber trails, and other privately and publicly owned facilities which have been so extensively damaged. Section 4 allows those acquiring title to public lands additional time to fulfill requirements if they were delayed in doing so by the storms. Sections 5 and 6 insure that existing Federal loan programs are structured so as to be of assistance to anyone who suffers