SPEAKERS CONTENTS INSERTS Tables
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57–593
1999
GRANTING THE CONSENT OF CONGRESS TO THE POTOMAC HIGHLANDS AIRPORT COMPACT ENTERED INTO BETWEEN THE STATES OF MARYLAND AND WEST VIRGINIA
HEARING
BEFORE THE
SUBCOMMITTEE ON
COMMERCIAL AND ADMINISTRATIVE LAW
OF THE
COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES
ONE HUNDRED FIFTH CONGRESS
SECOND SESSION
ON
S.J. Res. 51
SEPTEMBER 25, 1998
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Serial No. 103
Printed for the use of the Committee on the Judiciary
For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402
COMMITTEE ON THE JUDICIARY
HENRY J. HYDE, Illinois, Chairman
F. JAMES SENSENBRENNER, Jr., Wisconsin
BILL McCOLLUM, Florida
GEORGE W. GEKAS, Pennsylvania
HOWARD COBLE, North Carolina
LAMAR S. SMITH, Texas
ELTON GALLEGLY, California
CHARLES T. CANADY, Florida
BOB INGLIS, South Carolina
BOB GOODLATTE, Virginia
STEPHEN E. BUYER, Indiana
ED BRYANT, Tennessee
STEVE CHABOT, Ohio
BOB BARR, Georgia
WILLIAM L. JENKINS, Tennessee
ASA HUTCHINSON, Arkansas
EDWARD A. PEASE, Indiana
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CHRIS CANNON, Utah
JAMES E. ROGAN, California
LINDSEY O. GRAHAM, South Carolina
MARY BONO, California
JOHN CONYERS, Jr., Michigan
BARNEY FRANK, Massachusetts
CHARLES E. SCHUMER, New York
HOWARD L. BERMAN, California
RICK BOUCHER, Virginia
JERROLD NADLER, New York
ROBERT C. SCOTT, Virginia
MELVIN L. WATT, North Carolina
ZOE LOFGREN, California
SHEILA JACKSON LEE, Texas
MAXINE WATERS, California
MARTIN T. MEEHAN, Massachusetts
WILLIAM D. DELAHUNT, Massachusetts
ROBERT WEXLER, Florida
STEVEN R. ROTHMAN, New Jersey
THOMAS M. BARRETT, Wisconsin
THOMAS E. MOONEY, SR., Chief of Staff-General Counsel
JULIAN EPSTEIN, Minority Chief Counsel and Staff Director
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Subcommittee on Commercial and Administrative Law
GEORGE W. GEKAS, Pennsylvania, Chairman
LAMAR SMITH, Texas
BOB INGLIS, South Carolina
ED BRYANT, Tennessee
STEVE CHABOT, Ohio
LINDSEY O. GRAHAM, South Carolina
JERROLD NADLER, New York
SHEILA JACKSON LEE, Texas
MARTIN T. MEEHAN, Massachusetts
WILLIAM D. DELAHUNT, Massachusetts
RAYMOND V. SMIETANKA, Chief Counsel
CHARLES E. KERN II, Counsel
JAMES W. HARPER, Counsel
C O N T E N T S
HEARING DATE
September 25, 1998
TEXT OF BILLS
S.J. Res. 51
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H.R. 4572
OPENING STATEMENT
Gekas, Hon. George W., a Representative in Congress from the State of Pennsylvania, and chairman, Subcommittee on Commercial and Administrative Law
WITNESSES
Bartlett, Hon. Roscoe G., a Representative in Congress from the State of Maryland
Sarbanes, Hon. Paul S., a United States Senator from the State of Maryland
Stahl, James G., chairman, Potomac Highlands Airport Authority, Cumberland Regional Airport, Wiley Ford, West Virginia
LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
Bartlett, Hon. Roscoe G., a Representative in Congress from the State of Maryland: Prepared statement
Gekas, Hon. George W., a Representative in Congress from the State of Pennsylvania, and chairman, Subcommittee on Commercial and Administrative Law: Prepared statement
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Sarbanes, Hon. Paul S., a United States Senator from the State of Maryland: Prepared statement
Stahl, James G., chairman, Potomac Highlands Airport Authority, Cumberland Regional Airport, Wiley Ford, West Virginia: Prepared statement
GRANTING THE CONSENT OF CONGRESS TO THE POTOMAC HIGHLANDS AIRPORT COMPACT ENTERED INTO BETWEEN THE STATES OF MARYLAND AND WEST VIRGINIA
FRIDAY, SEPTEMBER 25, 1998
House of Representatives,
Subcommittee on Commercial
and Administrative Law,
Committee on the Judiciary,
Washington, DC.
The Subcommittee met, pursuant to call, at 1 p.m., in Room 2237, Rayburn House Office Building, Hon. George W. Gekas [chairman of the subcommittee] presiding.
Present: Representatives George W. Gekas, Bob Inglis, Ed Bryant, Steve Chabot, Lindsey O. Graham, and Jerrold Nadler.
Staff Present: Raymond V. Smietanka, Chief Counsel; Susan Jensen-Conklin, Counsel; Audray Clement, Staff Assistant; and David Lachmann, Minority Professional Staff Member.
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OPENING STATEMENT OF CHAIRMAN GEKAS
Mr. GEKAS. The committee will come to order.
This is the time set for a hearing to be held on the questions involved in Senate Joint Resolution 51, dated September 25, 1998, which would grant consent of Congress to a compact between the States of Maryland and West Virginia involving the establishment of the Potomac Highlands Airport Authority.
We note a quorum by the gentleman from Tennessee, Mr. Bryant; the gentleman from South Carolina, Mr. Inglis; the gentleman from South Carolina, Mr. Graham. That constituting a quorum, we will proceed with the testimony of the witnesses who have assembled themselves for this purpose.
We begin with the introduction of and yielding to the Senator from Maryland, Senator Sarbanes, who has had a continuing interest in this project; and now we find ourselves in an emergency state where we will accommodate him for the final 2 weeks of the session.
We will permit Senator Sarbanes to proceed in giving his testimony, making certain that the record will show by unanimous consent that the written statement become a part of the record.
[The prepared statement of Mr. Gekas follows:]
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PREPARED STATEMENT OF HON. GEROGE W. GEKAS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA, AND CHAIRMAN, SUBCOMMITTEE ON COMMERCIAL AND ADMINISTRATIVE LAW
The Subcommittee on Commercial and Administrative Law will now consider S.J. Res. 51, legislation granting the consent of Congress to a compact between the states of Maryland and West Virginia regarding the establishment of the Potomac Highlands Airport Authority.
The Constitution of the United States provides in Article I, section 10, clause 3 the the Congress must consent to ''any Agreement or Compact'' between states or between states and a foreign power. Congressional consent is required for such agreements and compacts in order to determine whether they work to the detriment of another state and to ensure that they do not conflict with Federal law or Federal interests.
Maryland and West Virginia entered into the compact that is the subject of today's hearing in 1976, in order to facilitate the operation of a commercial airport owned by the city of Cumberland, Maryland but located within the state of West Virginia. The powers-that-be did not establish the Potomac Highlands Airport Authority, which was provided for in the compact, until 1990, but it appears that the necessity of having the compact approved by the Congress was not fully appreciated until recently. That is why we are here today.
Appearing before us today is the Senior Senator from the State of Maryland, the Honorable Paul Sarbanes, the sponsor of the legislation, and Representative Roscoe Bartlett, who represents the area of Maryland covered by the compact. Accompanying them is Mr. James G. Stahl, the Chairman of the Potomac Highlands Airport Authority. A native of Hagerstown, Maryland, Mr. Stahl had a career on Wall Street with American Express before returning to Cumberland in 1989 as president of BGS&G Investment Services. In 1990 he was appointed to the Airport Authority and in 1992 became its president and chairman.
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STATEMENT OF HON. PAUL S. SARBANES, A UNITED STATES SENATOR FROM THE STATE OF MARYLAND
Mr. SARBANES. Thank you very much, Mr. Chairman, and members of the committee. We very much appreciate your courtesies in coming up from your closed session. I take it this is a short lunch break, and I will be very brief.
As the Chairman has indicated, the full statement will be included in the record. I will just briefly summarize it. I am accompanied by Jim Stahl, Chairman of the Potomac Highlands Airport Authority; and of course this is an issue in which Congressman Bartlett, who represents the western Maryland district, is very interested.
What happened, this airport was established in 1944 when the City of Cumberland, Maryland, purchased the present property in Wylie Ford, West Virginia, 3 miles south of Cumberland, to construct an airport facility. In that part of the country, you have—it is hard to find land suitable for an airport because of the mountainous terrain. So we have operated it that way. But this unusual situation, a commercial service airport located in one State, owned by a local unit of government in a contiguous State, you have two States, two counties, two municipalities all involved.
So what they did is, the State of West Virginia and State of Maryland enacted a bistate compact authorizing creation of a public agency known as the Potomac Highlands Airport Authority to govern and operate the airport.
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What we really need, of course, is congressional approval now of the compact entered into between the two States, and it is very important to firm up the legal status of the airport and to permit the authority to borrow funds.
This legislation would ratify the interstate compact enacted by Maryland and West Virginia, reaffirm their intergovernmental agreement and, in effect, firmly establish and shore up the legal status of the Potomac Highlands Airport Authority.
This is an important transportation hub for Western Maryland, for that part of West Virginia, and used of course by Pennsylvania as well. It passed the Senate on July 31 unanimously. It has very strong support from the congressional delegations in the affected States, and we very much hope that the committee will be able to report it to the House and we will be able to get it through in this session of the Congress, although I know time is drawing tight.
We need this approval in order for the airport authority to move forward with some important improvements which are highly relevant to the economic development of the area.
My full statement elaborates on some of these points and I appreciate having it included in the record.
Mr. GEKAS. As we indicated, it will be included as part of the record agreed to by unanimous consent.
[The prepared statement of Senator Sarbanes follows:]
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PREPARED STATEMENT OF HON. PAUL S. SARBANES, A UNITED STATES SENATOR FROM THE STATE OF MARYLAND
Thank you Mr. Chairman and members of the committee for this opportunity to testify on S.J. Res. 51 granting Congressional consent to a Compact entered into between the States of West Virginia and Maryland which established the Potomac Highlands Airport Authority. As you know, this legislation, which is co-sponsored by my colleagues Senators Byrd, Rockefeller, and Mikulski, was approved unanimously by the Senate on July 31, 1998. It is noncontroversial and enjoys broad bipartisan support in the Maryland and West Virginia delegations. The purpose of this legislation is to help facilitate a regional approach to the operations, use, management and future development of the Greater Cumberland Regional Airport.
Greater Cumberland Regional Airport is an important transportation hub serving the commercial, general aviation and corporate communities in the tri-state area of Maryland, Pennsylvania, and West Virginia. It is not only an essential link in the region's transportation network, but a critical part of the strategy to attract new business and tourism to the area. The airport was established in 1944, when the City of Cumberland, Maryland purchased property in Wiley Ford, West Virginia—three miles south of Cumberland—and began construction of airport facilities. Unfortunately, this unusual situation—a commercial service airport located in one state while owned by a local unit of government in a contiguous state—has greatly complicated the operation, financing and development of the airport over the years. With two states, two counties and two municipalities having jurisdiction over different aspects of the airport and enforcing different laws, taxing authorities and regulations, it was difficult, at best, to transcend the political and boundary lines and achieve a consensus on the future of the airport.
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In order to address this situation, in 1976, the General Assemblies of the State of Maryland and the State of West Virginia enacted a bi-state compact authorizing creation of a public agency known as the Potomac Highlands Airport Authority (PHAA) to govern and operate the airport. However, no action was taken to implement that Compact until l99O, when the two states, the Board of County Commissioners of Allegany County, Maryland and Mineral County, West Virginia and the Mayor and City Council of Cumberland, Maryland signed an intergovernmental agreement to transfer airport management and control to the Authority and changed the name to the Greater Cumberland Regional Airport.
Since that time, the Potomac Highlands Airport Authority has actively maintained and operated the airport, and has been working to develop and implement a 20-year, $10 million airport modernization and expansion program designed to facilitate current operations and anticipated growth in utilization of the facility. In the process of seeking investment capital, loans and airport development grants, questions have been raised by the Federal Aviation Administration, USDA Rural Development, and others about the Authority's eligibility to function as legal sponsor for the airport and borrow money and give security, absent Congressional Consent to the Interstate Compact which established the Authority.
Article I, Section 10 of the Constitution requires Congressional approval of compacts between States and Bond Counsel for the airport has recommended that the Compact creating the Airport Authority receive the consent of Congress in order to provide some certainty as to the legal status of the airport and to permit the Authority to borrow funds.
This legislation would ratify the Interstate Compact enacted by Maryland and West Virginia in 1976 and reaffirmed in the 1990 Intergovernmental Agreement. It will allow the Potomac Highlands Airport Authority to fully exercise the powers and authority set forth by the Compact and to provide a truly regional approach to the operation, use and future development of the airport. It will help advance the public interest by ensuring the future viability of Greater Cumberland Regional Airport to serve the transportation needs of the tri-state area.
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For these reasons, Mr. Chairman, I respectfully urge the Committee to report the bill to the House floor for expeditious consideration and enactment.
Mr. GEKAS. Mr. Stahl, before we recognize Congressman Bartlett, we will let you briefly, and remembering the pangs in our stomach at lunch time, support what Senator Sarbanes has asserted.
STATEMENT OF JAMES G. STAHL, CHAIRMAN, POTOMAC HIGHLANDS AIRPORT AUTHORITY, CUMBERLAND REGIONAL AIRPORT, WILEY FORD, WEST VIRGINIA
Mr. STAHL. Having similar pangs, I will be brief.
The history of our airport has been stymied in the fact that two State jurisdictions overlap because Maryland built an airport in West Virginia, and West Virginia's set of rules and regulations often conflict with the plans for Maryland. Sometimes Maryland can't even develop, because land in West Virginia doesn't qualify for Maryland programs.
West Virginia, by their constitution, felt compelled to tax any property that is not owned by their State, which happens to include an airport owned by another State. So you have the consequences of the State of West Virginia taxing the airport instead of actually contributing to the airport. The bistate legislation was designed to bring both States together in the interest of cooperation and developing the public facility we call the Greater Cumberland Regional Airport.
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In that effort, the two States passed the simultaneous legislation, but it was never consented to or ratified by the United States Congress, which leaves creditors to the airport in doubt as to whether it is a legal compact. When seeking bond counsel, bond counsel did determine there would be a question on our guarantee to pay without consent from the United States Congress.
So essentially this action would make the airport compact legitimate in the eyes of our creditors, which is a greatly needed resource to develop the airport.
[The prepared statement of Mr. Stahl follows:]
PREPARED STATEMENT OF JAMES G. STAHL, CHAIRMAN, POTOMAC HIGHLANDS AIRPORT AUTHORITY, CUMBERLAND REGIONAL AIRPORT, WILEY FORD, WEST VIRGINIA
In an effort to obtain financing for aviation related construction projects, the Potomac Highlands Airport Authority (PHAA) has applied for loans with various local banks. The authority was denied bank credit because the state legislation which created the PHAA, while granting the ''power to borrow'', does not specifically address a ''credit guarantee'' from either of the two states in the compact.
In other failed efforts to obtain financing from government sources, the PHAA was denied a loan from the United States Department of Agriculture (USDA) only because the US Congress has not ratified the bi-state compact. Upon further legal review, bond counsel determined that with congressional ratification the PHAA would be properly established as a legitimate bi-state compact. The PHAA will then qualify for a line of credit with the USDA.
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Therefore, it is within the on-going efforts to obtain adequate airport infrastructure that I ask you to consider congressional ratification of this bi-state airport compact. There are important airport development projects that will not qualify for grant assistance, but are economically sound and should be managed by the airport authority rather than by the limited interests of private entrepreneurs. Positive cash flows from capital investment on the airport should be kept in the airport budget to offset airport-operating costs rather than accrue to the profits of private investors off the airfield. Without the ability to borrow capital for investment in airport development, the airport authority will most likely remain undercapitalized, and not succeed in efforts to reduce it's overall taxpayer-funded operating deficit.
In addition to resolving it's operating deficit, as an important conduit of regional economic activities, this congressional action will have a positive ripple effect on the entire region. A better airport is not only very important to our existing business community, but most certainly a major factor in the decision process of where many desirable employers locate facilities, especially aviation related facilities. The Greater Cumberland Regional Airport is physically and technically an excellent airport, however, for years, its development has been retarded by the complications and conflicts of two overlapping state constitutions.
We of the PHAA seek to harmonize the interests of the airport with those of our regional economy, which includes not only the two states legally involved at the airport, but also a great portion of south central Pennsylvania. The population served by this airport crosses state and local boundaries, therefore, the spirit in creating this bi-state compact is to share the challenge and reward of creating a more attractive and efficiently functioning airport.
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From West Virginia, Senator John D. Rockefeller and Governor Cecil H. Underwood hosted a statewide ''Air Service Summit'' to discuss ways to restore viable and quality air service to small communities. Their joint welcome letter to meeting participants states, ''Only if we join together in earnest cooperation, and then turn our ideas into a plan of action, will we rise to the challenge of revitalizing West Virginia's air service.'' Responding to changes in the worldwide economy, all members of the Potomac Highlands Airport Authority are recognizing the importance of efficient and modern airport services for the region served by this airport.
With congressional ratification, the PHAA will be able to undertake a variety of otherwise unreachable development projects, including construction of hangers suitable for renting to a waiting list of aircraft operators who must have shelter in order to locate on the airport. Congressional ratification will also dispel many concerns of our potential airport tenants that the PHAA is just another doomed attempt to solve the decades of governmental conflicts at our airport. Given this congressional ratification and a good marketing strategy, the PHAA should be more likely to succeed in it's mission of promoting the beautiful ''business park'' land available at our airport.
Consistent with the terms of House Rule XI, clause 2(g)(4), I am providing with this statement my curriculum vitae and a disclosure of specific federal grant amounts that have been received by the Potomac Highlands Airport Authority.
JAMES GARIS STAHL, 13005 LEWIS HEIGHTS DRIVE, LAVALE MD 21502, (301) 729–8247
BUSINESS EXPERIENCE
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Financial Consultant, BGS&G Investment Services—Cumberland, MD; President, BGS&G Investment Services—Cumberland, MD; Financial Consultant, Shearson Lehman Hutton—Chambersburg, PA; Manager, Dutch Kitchen Restaurant (family-owned business)—Hagerstown, MD; Technical Researcher, Marketing Consultants International—Wagerstown, MD; Owner, Art Direction Studio—Hagerstown, MD
LICENSES
NASD Securities Industry General Principal and Options Principal; Registered Representative, New York Stock Exchange; Commodities, National Futures Association; Life Insurance Agent
VOLUNTEER EXPERIENCE
Co-Chairman, Service & Technology Committee—Fidelity Investments, Inc.; Potomac Highlands Airport Authority, Chairman, Treasurer; Chamber of Commerce—Cumberland, MD, Second Vice-President, First Vice-President, President, Past President, Chairman, Transportation and Economic Development Committees; Vice-Chairman, Downtown Assessment District—Hagerstown, MD
AWARDS
Cumberland Regional Airport was awarded Airport of the Year while Chairman of Airport; Fidelity Advisor Leadership Council; Franklin Templeton Advisory Council; Nuveen Advisory Council
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EDUCATION
Shearson Lehman Hutton Intemship, New York, NY; Dale Camegie and Other Business Training; Assistant Instructor, Commercial Art Programs, Shepherd College—Shepherdstown, WV, Washington County Career Studies Center—Hagerstown, MD; Hagerstown Junior College—Hagerstown, MD; North Hagerstown High School—Hagerstown, MD
BIOGRAPHY
A resident of Maryland for most of his life, Jim Stahl was born into a family which operated restaurants and other small businesses, with the Dutch Kitchen Restaurant in Hagerstown, Maryland being the most renowned. As he worked to finance his professional education, Jim held various summer jobs including the railroad, airlines, and off-shore oil-rig construction. But, it was his freelance work as a graphic artist that introduced him to the greater reality of what makes a community ''tick.''
Combining his studies with productive employment, Jim took a job as an assistant to a Professor in Commercial Art. He assisted in teaching classes at Shepherd College in West Virginia, and at the Career Studies Center in Washington County, MD. During these years he worked with many community organizations to help with their various promotional events. He also did commission work for newspaper and book layouts, including a book entitled ''The Cradle of American Aviation'' about the unique history of College Park Airport in Maryland.
Jim joined an international marketing firm to work in the field of high-technology pioneering, where he helped research and develop a book for the United States Department of Commerce as part of a National Security Agency effort to develop a national data encryption standard. Also, during this time, he was responsible for conducting tests of a ''speech recognition'' computer control system for other US agencies including the US Post Office, the Federal Aviation Administration, and the Department of Defense.
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Jim began his Wall Street career with the American Express Company where he worked on the 103rd floor of the World Trade Center in New York City and in the York PA. Branch office. Then in 1989, Jim accepted a job offer as president of BGS&G Investment Services in Cumberland, MD.
Once moved into the Cumberland community, Jim joined Grace Memorial Community Church, the Cumberland Rotary Club, and the Allegany County Chamber of Commerce. He has served the Chamber as chairman of the Transportation Committee, chairman of the Economic Development Committee, and as its President in 1995. In 1990 Jim was appointed to the Potomac Highlands Airport Authority, and has served as its' chairman and president since 1992.
Jim is a NASD licensed securities industry principal, a registered representative of the New York Stock Exchange, a member of the National Futures Association, a Life Insurance Agent, and continues to provide investment advice to individuals and corporations from the offices of BGS&G. He lives in LaVale with his wife, Theresa, and two primary school children, Sarah and Benjamin. His personal motto is ''time takes care of quality investments.''
Mr. GEKAS. Thank you very much.
I have to ask a question. Does this hinge on people who run the airport restaurant at Hagerstown, Maryland?
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If it does, I think you are in good shape.
We recognize the gentleman from Maryland, our colleague, Roscoe Bartlett, to supplement the record; and we will tell him in advance his written statement will be accepted for the record without objection.
STATEMENT OF HON. ROSCOE G. BARTLETT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MARYLAND
Mr. BARTLETT. Thank you Mr. Chairman. I have the great honor of representing this part of Maryland to the Congress. If you look at the map, it is so narrow, when Cumberland looked for a place to construct an airport, they found a mountain to level across the river in West Virginia. As a matter of fact, they go into Pennsylvania for our water. Our State is very narrow there.
The airport has been in existence for quite a while. They have been working together reasonably successfully. They didn't know they needed the blessing of the Congress to work together as two States to operate this airport. They were recently reminded of that when the Department of Agriculture said there was a roadblock to getting additional funding for expansion of the airport, which is badly needed by the way. We have almost double-digit unemployment there. This is Appalachia, and one of the three counties in our area that is in the Appalachian area. We need this now. The expansion of the airport is on hold until we can get this legislation enacted.
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We would appreciate anything that this committee can do to move this along.
Mr. GEKAS. What about doing it right now? Would that satisfy you?
Mr. BARTLETT. That would be great.
[The prepared statement of Mr. Bartlett follows:]
PREPARED STATEMENT OF HON. ROSCOE G. BARTLETT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MARYLAND
Mr. Chairman and members of the Commercial and Administrative Law subcommittee, I would like to thank you for the opportunity to testify today on the granting of Congress's consent to the interstate compact between the states of Maryland and West Virginia for Potomac Highlands Airport Authority. I would particularly like to thank Chairman Gekas for his expedient consideration of S.J. Res. 51 in light of the limited time remaining in the 105th Congress and the crowded legislative schedule.
S.J. Res. 51 would provide Congress's Consent to a compact between the states of West Virginia and Maryland establishing, the Potomac Highlands Airport Authority. This legislation has been passed by the Senate and has the support of the Senators from both states and the members of Congress from the districts concerned.
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In 1944 the city of Cumberland purchased land three miles south of the city in West Virginia for the construction of an airport. In 1976 the states of Maryland and West Virginia entered into a compact establishing the Potomac Highlands Airport Authority. Under the Compact the Authority is charged with maintaining, operating and developing the Greater Cumberland Regional Airport. Due to the unusual nature of the airport,—being located in one state, but being owned by a municipality in another—there is a certain degree of uncertainty about the ability of the airport authority to ''guarantee to pay'' for loans they may receive. Currently the authority is undertaking a 20 year $10 million expansion program and had applied for a loan from the Department of Agriculture. In its denial of the loan, the Department replied that it could not provide the loan unless Congress were to provide its consent to the bi-state compact between West Virginia and Maryland.
The loan from the USDA represented an important part of this expansion program. While Congressional approval of the compact will obviously facilitate the improvement of the airport itself, it will also have a positive impact on the economic development of region as a whole.
As you may know, the Greater Cumberland Regional Airport, is located in rural Appalachia. According to the Department of Labor's Bureau of Labor Statistics, Allegany County, which Cumberland is located in, has an unemployment rate of 8.5 per cent, almost 90 percent higher than the national average. This number doesn't even consider the great number of people who have become so discouraged that they have stopped looking for work. The simple reason for this high unemployment rate is that the area has suffered from the closing of a number of employers and has been unable to attract employers to replace then.
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The critical task in the coming years will be for local and state leaders to attract new employers to the area. In working with businesses that are considering moving to the area, one of the critical deciding factors for their relocation is access to first rate infrastructure. Businesses considering moving to the region will need to know that they will have access to a first class airport that can accommodate the needs of corporate, general and commercial aviation users. The Potomac Highland Airport Authority has a 20 year plan that will allow it to expand to accommodate the increased utilization of the facility. Your approval of this bill will be a first step in providing the Potomac Highlands Airport Authority with the tools necessary to expand.
I want to thank the subcommittee for the opportunity to testify today. I hope that you can promptly approve the compact so the Congress can provide its consent before the end of the 105th Congress.
Mr. GEKAS. If members would please remain in your seats for a few seconds.
Pursuant to notice, I call up the resolution—does the gentleman from New York wish to make remarks.
Mr. NADLER. Thank you, Mr. Chairman. I know this is a very important project, and I want to welcome Senator Sarbanes, a distinguished visitor from the other body.
I simply wanted to comment, I understand the necessity for this legislation. Years ago, when I was a member of the New York legislature, the State of New York, the New York Power Authority made an agreement with Hydro Quebec. Some of us opposed it and brought a lawsuit on the grounds it was an international compact and had not been agreed upon with Congress.
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When they realized what might happen—there were apparently hundreds of agreements between New York and various Canadian and other entities—so they withdrew that rather than invalidate hundreds of other compacts people have been working with for decades.
So thank you for being here, and thank you, Mr. Chairman.
Mr. GEKAS. At this time I would call up S.J. Resolution 51 granting the consent of the Congress to the Potomac Highlands Airport Authority compact between the States of Maryland and West Virginia for purposes of markup.
[The information referred to follows:]
105TH CONGRESS
2D SESSION
S.J. RES. 51
IN THE HOUSE OF REPRESENTATIVES
AUGUST 3, 1998
REFERRED TO THE COMMITTEE ON THE JUDICIARY
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JOINT RESOLUTION
Granting the consent of Congress to the Potomac Highlands Airport Authority Compact entered into between the States of Maryland and West Virginia.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CONGRESSIONAL CONSENT.
Congress hereby consents to the Potomac Highlands Airport Authority Compact entered into between the States of Maryland and West Virginia. The compact reads substantially as follows:
''Potomac Highlands Airport Authority Compact
''SECTION 1. COUNTY COMMISSIONS EMPOWERED TO ENTER INTO INTERGOVERNMENTAL AGREEMENTS RELATING TO CUMBERLAND MUNICIPAL AIRPORT.
''The county commissions of Mineral County, West Virginia, and of other West Virginia counties contiguous to Mineral County, and the governing bodies of municipal corporations situated in those counties, may enter into intergovernmental agreements with this State, Allegany County, Maryland, other Maryland counties contiguous to Allegany County and Cumberland, Maryland, and other municipal corporations situated in those Maryland counties, and with the Potomac Highlands Airport Authority regarding the operation and use of the Cumberland Municipal Airport situated in Mineral County, West Virginia. The agreements shall be reciprocal in nature and may include, but are not limited to, conditions governing the operation, use, and maintenance of airport facilities, taxation of aircraft owned by Maryland residents and others, and user fees.
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''SEC. 2. POTOMAC HIGHLANDS AIRPORT AUTHORITY AUTHORIZED.
''The county commissions of Mineral County, West Virginia, and of other West Virginia counties contiguous to Mineral County, and the governing bodies of municipal corporations situated in those counties, or any one or more of them, jointly and severally, may create and establish, with proper governmental units of this State, Allegany County, Maryland, other Maryland counties contiguous to Allegany County, and Cumberland, Maryland, and other municipal corporations situated in those Maryland counties, or any one or more of them, a public agency to be known as the 'Potomac Highlands Airport Authority' in the manner and for the purposes set forth in this Compact.
''SEC. 3. AUTHORITY A CORPORATION.
''When created, the Authority and the members of the Authority shall constitute a public corporation and, as such, shall have perpetual succession, may contract and be contracted with, sue and be sued, and have and use a common seal.
''SEC. 4. PURPOSES.
''The Authority may acquire, equip, maintain, and operate an airport or landing field and appurtenant facilities in Mineral County, on the Potomac River near Ridgeley, West Virginia, to serve the area in which it is located.
''SEC. 5. MEMBERS OF AUTHORITY.
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''(a) IN GENERAL.—The management and control of the Potomac Highlands Airport Authority, its property, operations, business, and affairs, shall be lodged in a board of seven or more persons who shall be known as members of the Authority and who shall be appointed for terms of three years each by those counties, municipal corporations, or other governmental units situated in West Virginia and Maryland as contribute to the funds of the Authority, in such proportion between those States and counties, municipal corporations, and units, and in whatever manner, as may from time to time be provided in the bylaws adopted by the Authority.
''(b) FIRST BOARD.—The first board shall be appointed as follows:
''(1) The County Commission of Mineral County shall appoint two members for terms of two and three years, respectively.
''(2) The governing official or body of the municipal corporation of Cumberland, Maryland, shall appoint three members for terms of one, two, and three years, respectively.
''(3) The governing official or body of Allegany County, Maryland, shall appoint two members for terms of one and two years, respectively.
''SEC. 6. POWERS.
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''The Potomac Highlands Airport Authority has power and authority as follows:
''(1) To make and adopt all necessary bylaws, rules, and regulations for its organization and operations not inconsistent with law.
''(2) To take all legal actions necessary or desirable in relation to the general operation, governance, capital expansion, management, and protection of the Cumberland Municipal Airport.
''(3) To increase the number of members of the Authority, and to set the terms of office and appointment procedures for those additional members.
''(4) To elect its own officers, to appoint committees, and to employ and fix the compensation for personnel necessary for its operation.
''(5) To enter into contracts with any person, firm, or corporation, and generally to do anything necessary for the purpose of acquiring, equipping, expanding, maintaining, and operating an airport.
''(6) To delegate any authority given to it by law to any of its officers, committees, agents, or employees.
''(7) To apply for, receive, and use grants in aid, donations, and contributions from any sources.
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''(8) To take or acquire lands by purchase, holding title to it in its own name.
''(9) To purchase, own, hold, sell, and dispose of personal property and to sell and dispose of any real estate which it may have acquired and may determine not to be needed for its purposes.
''(10) To borrow money.
''(11) To extend its funds in the execution of the powers and authority hereby given.
''(12) To take all necessary steps to provide for proper police protection at the airport.
''(13) To inventory airplanes and other personal property at the airport and provide the assessor of Mineral County and other proper governmental officials with full particulars in regard to the inventory.
''SEC. 7. PARTICIPATION BY WEST VIRGINIA.
''(a) APPOINTMENT OF MEMBERS; CONTRIBUTION TO COSTS.—The county commissions of Mineral County and of counties contiguous to Mineral County, and the governing bodies of municipal corporations situated in those counties, or any one or more of them, jointly and severally, may appoint members of the Authority and contribute to the cost of acquiring, equipping, maintaining, and operating the airport and appurtenant facilities.
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''(b) TRANSFER OF PROPERTY.—Any of the foregoing county commissions or municipal corporations may transfer and convey to the Authority property of any kind acquired previously by the county commission or municipal corporation for airport purposes.
''SEC. 8. FUNDS AND ACCOUNTS.
''(a) CONTRIBUTION AND DEPOSIT OF FUNDS.—Contributions may be made to the Authority from time to time by the various bodies contributing to its funds and shall be deposited in whatever bank or banks a majority of the members of the Authority direct and may be withdrawn from them in whatever manner the Authority directs.
''(b) ACCOUNTS AND REPORTS.—The Authority shall keep strict account of all of its receipts and expenditures and shall make quarterly reports to the public and private bodies contributing to its funds, containing an itemized account of its operations in the preceding quarter. The accounts of the Authority shall be regularly examined by the State Tax Commissioner in the manner required by Article nine, Chapter six of the Code of West Virginia.
''SEC. 9. PROPERTY AND OBLIGATIONS OF AUTHORITY EXEMPT FROM TAXATION.
''The Authority is exempt from the payment of any taxes or fees to the State of West Virginia or any subdivisions of that State or to any officer or employee of the State or other subdivision of it. The property of the Authority is exempt from all local and municipal taxes. Notes, debentures, and other evidence of indebtedness of the Authority are declared to be issued for a public purpose and to be public instrumentalities, and, together with interest on them, are exempt from taxes.
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''SEC. 10. SALE OR LEASE OF PROPERTY.
''In the event all of the public corporations contributing to the funds of the Authority so determine, the Authority shall make sale of all of its properties and assets and distribute the proceeds of the sale among those contributing to its funds. In the alternative, if such of the supporting corporations contributing a majority of the funds of the Authority so determine, the Authority may lease all of its property and equipment upon whatever terms and conditions the Authority may fix and determine.
''SEC. 11. EMPLOYEES TO BE COVERED BY WORKMEN'S COMPENSATION.
''All eligible employees of the Authority are considered to be within the Workmen's Compensation Act of West Virginia, and premiums on their compensation shall be paid by the Authority as required by law.
''SEC. 12. LIBERAL CONSTRUCTION OF COMPACT.
''It is the purpose of this Compact to provide for the maintenance and operation of an airport in a prudent and economical manner, and this Compact shall be liberally construed as giving to the Authority full and complete power reasonably required to give effect to the purposes hereof. The provisions of this Compact are in addition to and not in derogation of any power existing in the county commissions and municipal corporations herein named under any constitutional, statutory, or charter provisions which they or any of them may now have or may hereafter acquire or adopt.''.
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SEC. 2. RIGHT TO ALTER, AMEND, OR REPEAL.
The right to alter, amend, or repeal this joint resolution is hereby expressly reserved. The consent granted by this joint resolution shall not be construed as impairing or in any manner affecting any right or jurisdiction of the United States in and over the region which forms the subject of the compact.
Passed the Senate July 31, 1998
Attest:
GARY SISCO,
Secretary.
Mr. GEKAS. Without objection, the resolution will be considered as read and open for amendment at any point. Are there any amendments?
Hearing none, we now can proceed on the basis of recognition by the Chair that a reporting quorum is present; and now the Chair will entertain a motion that the resolution be reported favorably to the full committee.
Mr. INGLIS. So moved.
Mr. GEKAS. We are orchestrating this.
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The question occurs on the motion to report the S.J. Res. 51 favorably.
All in favor, say aye.
Opposed, no.
The motion is approved and the resolution is reported favorably.
Without objection, the resolution will be reported favorably in the form of a single amendment in the nature of a substitute, incorporating amendments, whatever amendments may have been adopted here today.
Mr. NADLER. Mr. Chairman, may I ask unanimous consent that all members shall have 5 legislative days to submit materials for the record?
Mr. GEKAS. Without objection, so ordered.
Mr. NADLER. Mr. Chairman, I ask unanimous consent that our colleague, Congressman Mollohan, be permitted to submit a statement for the record.
Mr. GEKAS. Without objection, so ordered.
Mr. GEKAS. Now we move to the second portion of the markup.
We thank the visitors, especially Senator Sarbanes and Mr. Bartlett.
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Mr. Stahl, you are always welcome. Come back often.
Mr. SARBANES. Thank you very much. I don't want to intrude on Pennsylvania politics, but the dispatch with which you run this business, we could use you in the Senate.
Mr. GEKAS. All right, pursuant to notice, I call up the bill, H.R. 4572, a bill to clarify that governmental pension plans of the possessions of the United States shall be treated in the same manner as State pension plans, for purposes of the limitation on the State income taxation of pension income, for purposes of markup.
[The information referred to follows:]
105TH CONGRESS
2D SESSION
H.R. 4572
To clarify that governmental pension plans of the possessions of the United States shall be treated in the same manner as State pension plans for purposes of the limitation on the State income taxation of pension income.
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IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 15, 1998
Mr. GEKAS (for himself, Mr. MCCOLLUM, and Mr. MICA) introduced the following bill; which was referred to the Committee on the Judiciary
A BILL
To clarify that governmental pension plans of the possessions of the United States shall be treated in the same manner as State pension plans for purposes of the limitation on the State income taxation of pension income.
Be it enacted by the Serrate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CLARIFICATION OF APPLICATION OF LIMITATION ON STATE INCOME TAXATION OF PENSION INCOME.
(a) IN GENERAL.—Subparagraph (G) of section 114(b)(1) of title 4, United States Code, is amended by inserting before the semicolon ''or any plan which would be a governmental plan (as so defined) if possessions of the United States were treated as States for purposes of such section 414(d)''.
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(b) EFFECTIVE DATE.—The amendment made by this section shall apply to amounts received after the date of the enactment of this Act.
Mr. GEKAS. Without objection, the bill will be considered as read and is open for amendment at any point.
You will recall that we passed a bill, I think in the last session, in which we protected pensioners, even though they moved from one State to another, et cetera. We did not include the possessions like Puerto Rico, Guam, et cetera, in that totality; and there is no earthly reason not to include Puerto Rico and these possessions for the benefit of pensioners who move out of a particular State.
So with that, if that is a satisfactory explanation to everyone, we will move to markup.
Are there any amendments?
Hearing none, the Chair notes the presence of a reporting quorum.
The Chair will now entertain a motion that the bill be reported favorably to the full committee.
Mr. BRYANT. So moved.
Mr. GEKAS. The motion is to report H.R. 4572 to the full committee favorably.
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All in favor, say aye.
Opposed, no.
The motion is approved. The bill is reported favorably.
Without objection, the bill will be reported in the form of a single amendment in the nature of a substitute, incorporating any amendments that may have been adopted in subcommittee.
Mr. NADLER. Mr. Chairman, I would ask unanimous consent that all Members have 5 legislative days in which to submit statements and other materials for the record.
Mr. GEKAS. Without objection, it is so ordered.
The committee stands adjourned.
[Whereupon, at 1:24 p.m., the subcommittee was adjourned.]