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PRIVATIZING CONNIE LEE

Mr. DODD. Mr. President, I am pleased to rise today in support of my legislation, included in the continuing resolution, to privatize the College Construction Loan Insurance Association, better known as Connie Lee .

For 10 years now, I have focused a great deal of attention and effort on Connie Lee legislation. I was there at its birth in 1986 as the author of the legislation creating Connie Lee , which passed as a part of the Higher Education Act amendments. And, today, as this legislation privatizing Connie Lee passes, I feel like a parent watching a child graduate from college to head out on her own.

Connie Lee was created with a vital and focused mission--to assist colleges in the repair, modernization and construction of their facilities. Like many institutions, colleges and universities need multi year financing to keep up with their construction and renovation needs. For institutions with strong financial backing and large endowments, issuing bonds and securing capital has not been a major problem. Institutions that are less secure and have a lower bond rating, however, face major obstacles in obtaining the necessary financing.

It was clear to us in 1986 that we, as a nation, have a major stake in assuring that our higher education institutions sit on a strong foundation--both literally and figuratively. Connie Lee was created to address this need and, since its incorporation in 1987, it has provided increased access to the bond markets for more than 100 needy institutions through bond insurance. Connie Lee has insured bond issues totaling over $2.5 billion and has assisted institutions such as the University of Denver, the University of Massachusetts Medical School, community colleges, and numerous other institutions in nearly every State.

With its significant record, Connie Lee has clearly proven its maturity and strength. Since its founding, Connie Lee has maintained its triple-A financial rating, and a recent Standard and Poor's report confirmed its strong financial position. The initial Federal investment of $19 million has clearly worked to form a strong and vibrant company, ready to sever its ties and fully privatize.

The privatization language included in this bill is quite straightforward and very similar to the administration's privatization bill, which I introduced last June. It repeals the section of the Higher Education Act that authorized the creation of Connie Lee and governs its activities. In addition, it requires that the Secretary of the Treasury sell the Federal Government's 15-percent share in Connie Lee within the next few months.

Mr. President, as simple as it sounds, this legislation is the product of a great deal of work. I would first like to thank my colleague from Vermont, Senator Jeffords, who has been an incredible partner in this effort. I would also like to acknowledge the assistance of the Departments of Treasury and Education, the staff of Connie Lee , and those in the private sector, who with their broad experience provided invaluable assistance in putting this bill together.

In an era when we hear so much about bad government, Connie Lee is an excellent example of how government can and does work well. With a modest Federal investment, Connie Lee has grown to be a dynamo in helping colleges repair their aging facility just as we had hoped in 1986. Connie Lee will continue this work, but no longer needs our venture capital. With this legislation, the Federal Government will sell its shares and recoup a good cash return on its original investment.

Mr. President, this is good legislation and I look forward to its passage as part of the larger continuing resolution.

SECTION 208

Mrs. MURRAY. Mr. President, the omnibus appropriations bill contains a provision in the Commerce, State, Justice appropriations area that needs clarification. Section 208 prevents the administration and councils from using funds to implement any individual fishing quota [IFQ] programs until fees are expressly authorized for such programs under the Magnuson Fishery Conservation and Management Act. This fee authority recently passed both the House and Senate and will soon be signed into law by the President, but there is some confusion about the implication of this appropriations provision on a particular IFQ program designed to regulate bycatch.

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