Legislative Proposals for Fostering Transparency Hearing Committee on Oversight and Government Reform House of Representatives
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LEGISLATIVE PROPOSALS FOR FOSTERING TRANSPARENCY HEARING BEFORE THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION MARCH 23, 2017 Serial No. 115–20 Printed for the use of the Committee on Oversight and Government Reform ( Available via the World Wide Web: http://www.fdsys.gov http://oversight.house.gov U.S. GOVERNMENT PUBLISHING OFFICE 26–499 PDF WASHINGTON : 2017 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 09:27 Aug 24, 2017 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 H:\26499.TXT APRIL KING-6430 with DISTILLER COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM Jason Chaffetz, Utah, Chairman John J. Duncan, Jr., Tennessee Elijah E. Cummings, Maryland, Ranking Darrell E. Issa, California Minority Member Jim Jordan, Ohio Carolyn B. Maloney, New York Mark Sanford, South Carolina Eleanor Holmes Norton, District of Columbia Justin Amash, Michigan Wm. Lacy Clay, Missouri Paul A. Gosar, Arizona Stephen F. Lynch, Massachusetts Scott DesJarlais, Tennessee Jim Cooper, Tennessee Trey Gowdy, South Carolina Gerald E. Connolly, Virginia Blake Farenthold, Texas Robin L. Kelly, Illinois Virginia Foxx, North Carolina Brenda L. Lawrence, Michigan Thomas Massie, Kentucky Bonnie Watson Coleman, New Jersey Mark Meadows, North Carolina Stacey E. Plaskett, Virgin Islands Ron DeSantis, Florida Val Butler Demings, Florida Dennis A. Ross, Florida Raja Krishnamoorthi, Illinois Mark Walker, North Carolina Jamie Raskin, Maryland Rod Blum, Iowa Peter Welch, Vermont Jody B. Hice, Georgia Matthew Cartwright, Pennsylvania Steve Russell, Oklahoma Mark DeSaulnier, California Glenn Grothman, Wisconsin John Sarbanes, Maryland Will Hurd, Texas Gary J. Palmer, Alabama James Comer, Kentucky Paul Mitchell, Michigan JONATHAN SKLADANY, Majority Staff Director WILLIAM MCKENNA, General Counsel MARY DOOCY, Counsel SARAH VANCE, Professional Staff Member SHARON CASEY, Deputy Chief Clerk DAVID RAPALLO, Minority Staff Director (II) VerDate Nov 24 2008 09:27 Aug 24, 2017 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 H:\26499.TXT APRIL KING-6430 with DISTILLER C O N T E N T S Page Hearing held on March 23, 2017 ............................................................................ 1 WITNESSES Mr. Hudson Hollister, Founder and Executive Director, The Data Coalition Oral Statement ................................................................................................. 6 Written Statement ............................................................................................ 8 Mr. Norman Kirk Singleton, President, Campaign for Liberty Oral Statement ................................................................................................. 12 Written Statement ............................................................................................ 14 Mr. John Berlau, Senior Fellow, Competitive Enterprise Institute Oral Statement ................................................................................................. 16 Written Statement ............................................................................................ 18 Mr. Thomas Fitton, President, Judicial Watch Oral Statement ................................................................................................. 25 Written Statement ............................................................................................ 28 Mr. Richard Painter, S. Walter Richey Professor of Corporate Law, University of Minnesota Twin Cities Oral Statement ................................................................................................. 34 Written Statement ............................................................................................ 36 APPENDIX Letter of March 13, 2017, to Chairman Chaffetz, submitted by Mr. Cummings ............................................................................................................. 76 Letter of March 22, 2017, from Public Citizen, Every Voice, Democracy 21, Center for American Progress, Supporting Presidential Tax Transparency Act, Submitted by Mr. Connolly ......................................................................... 78 Letter of March 22, 2017, from Americans for TaxFairness Supporting Presi- dential Tax Transparency Act, Submitted by Mr. Connolly ............................. 90 Hearing Follow-up Response Submitted by Mr. Hudson Hollister, Executive Director, Data Coalition ...................................................................................... 92 Response from Mr. Hudson Hollister, Executive Director, Data Coalition, to Questions for the Record ................................................................................. 97 (III) VerDate Nov 24 2008 09:27 Aug 24, 2017 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 H:\26499.TXT APRIL KING-6430 with DISTILLER VerDate Nov 24 2008 09:27 Aug 24, 2017 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 H:\26499.TXT APRIL KING-6430 with DISTILLER LEGISLATIVE PROPOSALS FOR FOSTERING TRANSPARENCY Thursday, March 23, 2017 HOUSE OF REPRESENTATIVES, COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM, Washington, D.C. The committee met, pursuant to call, at 10:29 a.m., in Room 2154, Rayburn House Office Building, Hon. Jason Chaffetz [chair- man of the committee] presiding. Present: Representatives Chaffetz, Duncan, Farenthold, Foxx, Massie, Ross, Walker, Blum, Grothman, Comer, Cummings, Maloney, Connolly, Kelly, Watson Coleman, Plaskett, Demings, Krishnamoorthi, Raskin, DeSaulnier, and Sarbanes. Chairman CHAFFETZ. The Committee on Oversight and Govern- ment Reform will come to order. And without objection, the chair is authorized to declare a recess at any time. Thank you all for being here. We are talking about some legisla- tive proposals for fostering transparency. I appreciate the witnesses and your flexibility. I think we have had to reschedule this hearing and then, based on the schedule of the day, we bumped this back to 10:30 this morning. So I appreciate your patience and under- standing as there are some big legislative things that are hap- pening on the Floor. And again, we appreciate the expertise that you bring here. We are here because this committee, probably as much as any- body, wants to do everything it can to foster transparency, and it is critical to carrying out our committee’s mission. As those of us that have the privilege of serving in Congress, we have an obliga- tion to ensure the American people know how their money is spent and how their government functions. In all the undertakings, we seek to shed light on issues, share information that matters to the taxpayer and advance legislative solutions where necessary. We are not only the Oversight Committee, but we are also the Committee on Government Reform, and so with the reform in mind, we will examine three legislative proposals and shine light, illuminate the light in here as well, three legislative proposals which strive to improve the way taxpayers access information. One bill is called the Audit the Fed, referring to the Federal Re- serve; a bill that I have championed, the Fanny and Freddie Open Records Act of 2017. Fanny and Freddie have obligations that the American taxpayers have that are literally a staggering amount of number in the hundreds of billions of dollars; and the Open the Government Data Act. (1) VerDate Nov 24 2008 09:27 Aug 24, 2017 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 H:\26499.TXT APRIL KING-6430 with DISTILLER 2 Last Congress, we passed bipartisan Freedom of Information Act or FOIA legislation. It was signed into law and marked a big step forward in reforming the process. We didn’t solve all the problems. There are still some that face us moving forward. And I hope we can advance more bipartisan transparency legislation in this Con- gress. Audit the Fed, sponsored by Mr. Massie of Kentucky, provides in- sight into the practices of the Federal Reserve while continuing to support its independence as an instrument of monetary policy. The Open Government Data Act, sponsored by Mr. Farenthold of Texas, requires Federal agencies to publish data in an open ma- chine-readable format on Data.gov. And the Freddie—I am sorry, the Fannie and Freddie Open Records Act of 2017 applies the Free- dom of Information Act to Fannie Mae and Freddie Mac so tax- payers have critical information they need while these two entities are in conservatorship. Members of the committee may raise additional pieces of trans- parency legislation in the hearing today, but I think all these three pieces of transparency legislation exemplify the fundamental right of the American people to know what their government is doing and what sort of obligations are in place. Chairman CHAFFETZ. And with that, I would like to actually yield time to the gentleman from Kentucky, Mr. Massie, who is the chief sponsor of one of these pieces of legislation. Mr. Massie. Mr. MASSIE. Thank you, Mr. Chairman. And thank you for perse- vering with this hearing in the face of many weapons of mass dis- traction today on the Hill. [Laughter.] Mr. MASSIE. You have assembled a wonderful panel of witnesses, and I just want to say something about the bill that I have spon- sored here. Over the past century the value of the dollar has declined by over 95 percent, and during those hundred years the Federal Re- serve, the organization