Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 105 CONGRESS, FIRST SESSION

House of Representatives

E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, TUESDAY, JANUARY 21, 1997 No. 4

The House met at 12 noon and was Pursuant to clause 1, rule I, the Jour- The Chair has often reiterated that called to order by the Speaker pro tem- nal stands approved. Members should refrain from ref- pore [Mr. BEREUTER]. f erences in debate to the conduct of f other Members where such conduct is PLEDGE OF ALLEGIANCE not the question actually pending be- DESIGNATION OF THE SPEAKER fore the House, either by way of a re- PRO TEMPORE The SPEAKER pro tempore. Will the gentleman from Ohio [Mr. TRAFICANT] port from the Committee on Standards The SPEAKER pro tempore laid become forward and lead the House in the of Official Conduct or by way of an- fore the House the following commu- Pledge of Allegiance. other question of the privileges of the nication from the Speaker: Mr. TRAFICANT led the Pledge of House. January 21, 1997. Allegiance as follows: I hereby designate the Honorable DOUG BE- This principle is documented on I pledge allegiance to the Flag of the REUTER to act as Speaker pro tempore on pages 168 and 526 of the House Rules this day. United States of America, and to the Repub- lic for which it stands, one nation under God, and Manual and reflects the consistent NEWT GINGRICH, rulings of the Chair in this and in prior Speaker of the House of Representatives. indivisible, with liberty and justice for all. Congresses. It derives its force pri- f f marily from clause 1 of rule XIV which PRAYER MESSAGES FROM THE PRESIDENT broadly prohibits engaging in personal- The Chaplain, Rev. James David Sundry messages in writing from the ity in debate. It has been part of the Ford, D.D., offered the following pray- President of the United States were rules of the House since 1789. er: communicated to the House by Mr. On the other hand, the calling up of We join in the words of the Psalmist Sherman Williams, one of his secretar- a resolution reported by the Commit- who wrote: ‘‘Behold how good and ies. tee on Standards of Official Conduct, or pleasant it is when God’s people dwell f the offering of a resolution as a similar in unity. It is like the precious oil upon question of the privileges of the House, the head, running down upon the beard, IN THE MATTER OF embarks the House on consideration of upon the beard of Aaron, running down REPRESENTATIVE NEWT GINGRICH a proposition that admits references in on the collar of his robes. It is like the Mrs. JOHNSON of Connecticut. Mr. debate to a Member’s conduct. Discipli- dew of Hermon, which falls on the Speaker, pursuant to rule IX and by dinary matters by their very nature in- mountains of Zion. For there the Lord rection of the Select Committee on volve personalities. has commanded the blessing, life for- Ethics, I send to the desk a privileged Still, this exception to the general evermore.’’ resolution (H. Res. 31) in the matter of Among all Your bountiful favors to rule against engaging in personality— Representative NEWT GINGRICH, and us, O gracious God, is the knowledge admitting references to a Member’s ask for its immediate consideration. that You have created every person in conduct when that conduct is the very The Clerk read the resolution, as fol- Your image and You have blessed every lows: question under consideration by the person with those gifts that make us House—is closely limited. This point HOUSE RESOLUTION 31 truly human: the gifts of justice and was well stated on July 31, 1979, as fol- mercy, the gifts of peace and good will, IN THE MATTER OF REPRESENTATIVE NEWT lows: While a wide range of discussion GINGRICH the gifts of unity and common purpose. is permitted during debate on a dis- Resolved, That the House adopt the report May all Your blessings, O God, that ciplinary resolution, clause 1 of rule of the Select Committee on Ethics dated flow from the early morn to the last XIV still prohibits the use of language light, be with each of us and remain January 17, 1997, In the Matter of Represent- ative Newt Gingrich. which is personally abusive. This is re- with us all our days. corded in the Deschler-Brown Proce- In Your name we pray. Amen. The SPEAKER pro tempore. The res- dure in the House of Representatives in f olution constitutes a question of privilege and may be called up at any time. chapter 12, at section 2.11. THE JOURNAL ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE On the question now pending before The SPEAKER pro tempore. The The SPEAKER pro tempore. Before the House, the resolution offered by Chair has examined the Journal of the we proceed, the Chair will have a state- the gentlewoman from Connecticut, last day’s proceedings and announces ment about the decorum expected of Members should confine their remarks to the House his approval thereof. the Members. in debate to the merits of that precise

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H171 H172 CONGRESSIONAL RECORD — HOUSE January 21, 1997 question. Members should refrain from Each Member of Congress, especially b 1215 remarks that constitute personalities those in positions of leadership, shoul- Despite the pressures, we bring you with respect to members of the Com- ders the responsibility of avoiding even today a bipartisan recommendation re- mittee on Standards of Official Con- the appearance of impropriety. Rep- solving the most complex charge duct or the Select Committee on Eth- resentative GINGRICH failed to exercise against Representative NEWT GINGRICH. ics or with respect to other sitting the discipline and caution of his office I ask for both my colleagues’ rejection Members whose conduct is not the sub- and so is subject to penalty today. ject of the pending report. Finally, As I have said, the penalty rec- of the partisanship and animosity that Members should exercise care to main- ommended by the committee is tough has so deeply permeated the work of tain an atmosphere of mutual respect. and unprecedented. In past cases of the House and for their support of the On January 27, 1909, the House adopt- this nature, the House has reprimanded committee’s resolution. ed a report that stated the following: It a Member only where the Member was Mr. Speaker, I reserve the balance of is the duty of the House to require its found to have intentionally made false my time. Members in speech or debate to pre- statements to the Ethics Committee. Mr. CARDIN. Mr. Speaker, I yield serve that proper restraint which will In this case, the committee rec- myself such time as I may consume. permit the House to conduct its busi- ommended a reprimand of Representa- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE ness in an orderly manner and without tive GINGRICH even though the state- unnecessarily and unduly exciting ani- ment of alleged violations did not as- The SPEAKER pro tempore. The gen- mosity among its Members. sert that he intentionally misled the tleman will suspend. This is recorded in Cannon’s Prece- committee. Likewise in past cases The Chair notes a disturbance in the dents in volume 8 at section 2497. where the committee imposed mone- visitors’ gallery in contravention of The report adopted on that occasion tary sanctions on a Member, the com- the laws and the rules of the House. responded to improper references in de- mittee found that the Member had The Doorkeepers and police, the Chair bate to the President, but it articu- been personally enriched by the mis- believes, have already acted, but shall lated a principle that occupants of the conduct. The committee made no such act to remove from the gallery those Chair over many Congresses have held finding against Representative GING- persons participating in a disturbance. equally applicable to Members’ re- RICH, yet recommends that a cost reim- If there is an outburst from the visi- marks toward each other. bursement of $300,000 be paid to the tors’ gallery, the Chair will make this The Chair asks and expects the co- House by him. statement but will insist on order. operation of all Members in maintain- The report before us contains several ing a level of decorum that properly The Chair recognizes the gentleman hundred pages of exhibits and a de- dignifies the proceedings of the House. from Maryland [Mr. CARDIN]. The gentlewoman from Connecticut tailed analysis of the subcommittee’s Mr. CARDIN. Mr. Speaker, as I have findings. The allegations and the key [Mrs. JOHNSON] is recognized for 1 hour. said, this is a sad moment for the Mrs. JOHNSON of Connecticut. Mr. facts supporting them were laid out by House of Representatives. One of our Speaker, I ask unanimous consent that the special counsel during a public Members has admitted to a serious vio- debate on the resolution be extended hearing on January 17. The commit- lation of the House rules. This process for a half an hour. tee’s recommendations before you and this admission affects not only The SPEAKER pro tempore. Is there today end 2 long years of work. that Member but each Member who Throughout this process we never objection to the request of the gentle- serves in this body. While I believe that lost sight of our key goals: full and woman from Connecticut? is true of any ethics proceeding, it is complete disclosure of the facts and a There was no objection. particularly true and particularly trou- bipartisan recommendation. We accom- The SPEAKER pro tempore. The gen- blesome in this case because the of- plished both. Even though it would tlewoman from Connecticut [Mrs. fending Member is the Speaker of the have been easy for Republicans or JOHNSON] is recognized for 90 minutes. House, the third ranking official in our Mrs. JOHNSON of Connecticut. Mr. Democrats to walk away from the Government. Speaker, for purposes of debate only, I process at many stages, we did not, be- yield 45 minutes to the gentleman from cause we believed in this institution We have received the report and rec- Maryland [Mr. CARDIN], pending which and in the ethics process. ommendation from the special counsel. I yield myself such time as I may The investigative subcommittee was Mr. GINGRICH has agreed with the judg- consume. ably chaired by Representative PORTER ment of the special counsel. In addition Mr. Speaker, I rise as chairman of GOSS. Representatives BEN CARDIN, to the report, the recommendation of the Select Committee on Ethics to lay STEVE SCHIFF, and NANCY PELOSI, along sanctions represents the bipartisan before you the committee’s bipartisan with Mr. GOSS deserve the gratitude of work produced by our investigative recommendation for final action on the this House for the extraordinary work- subcommittee. The report in the rec- matter of Representative NEWT GING- load they shouldered and for their dedi- ommendation of sanctions has been RICH. The committee recommends that cation to pursuing each issue until overwhelmingly approved by the full Representative GINGRICH be rep- they reached consensus. Together with Committee on Standards of Official rimanded and reimburse the House Mr. James Cole, the special counsel, Conduct and deserves the support of $300,000. The penalty is tough and un- they laid the groundwork for the bipar- this House. precedented. It is also appropriate. No tisan conclusion of this matter. I want Let me begin by saying how proud I one is above the rules of the House of to thank Mr. CARDIN, the current rank- am of the work of the investigative Representatives. ing member, as well, for working with subcommittee. In my judgment, all This matter centered on two key me through difficult times to enable four members of the subcommittee questions: whether the Speaker vio- the bipartisan Ethics Committee proc- maintained their commitment to a lated Federal tax law and whether he ess to succeed. process that was fair to the respondent intentionally filed incorrect informa- In the last 2 years the committee was as well as the House and its rules. I tion with the Ethics Committee. While forced to conduct its work against the want to commend and compliment the the committee investigated these ques- backdrop of harsh political warfare. It work of our chairman, the gentleman tions extensively, its findings were in- is the first time ever that members of from Florida [Mr. GOSS], for the ex- conclusive. Rather, the committee the Ethics Committee have been the traordinary work that he did as well as found that Representative GINGRICH target of coordinated partisan assaults the work of the gentleman from New brought discredit to the House by fail- in their districts. Coordinated political Mexico [Mr. SCHIFF] and the gentle- ing to get appropriate legal advice to pressure on members of the Ethics woman from California [Ms. PELOSI] ensure that his actions would be in Committee by other Members is not and the work of the subcommittee. I compliance with tax law and to oversee only destructive of the ethics oversight also want to recognize the extraor- the development of his letters to the process but is beneath the dignity of dinary service performed by Jim Cole, committee to ensure they were accu- this great institution and those who our special counsel; Kevin Wolf, his as- rate in every respect. serve here. sistant; and Virginia Johnson from the January 21, 1997 CONGRESSIONAL RECORD — HOUSE H173 Committee on Standards of Official with that judgment. In all, almost $1.5 sues and he was embarrassed by the ob- Conduct. million was spent by these tax exempt vious inaccurate letters. He said he Before commenting on the substance organizations, costing the U.S. Treas- never intended to mislead the commit- of the resolution before us, I feel obli- ury hundreds of thousands of dollars in tee. But Mr. GINGRICH’s actions with gated to point out the severe problems lost tax revenues that should have been respect to the understanding reached that have plagued the process. The 1- paid. with the Committee on Standards of year delay in 1995 in enlisting the serv- Fourth, one need not reach a conclu- Official Conduct belies his statement. ices of the special counsel was wrong. sion on the tax issues to find that Mr. Mr. GINGRICH, through his attorneys, We have some evidence that this delay GINGRICH has violated our ethical had entered into an agreement with may have been part of the strategy by standards. From his involvement in the the committee. That agreement pro- allies of Mr. GINGRICH. In sharp con- American Campaign Academy case, vided ‘‘Mr. GINGRICH agree that no pub- trast to the good faith, bipartisan co- Mr. GINGRICH knew that pursuing these lic comment should be made about this operation which governed the sub- activities posed a risk of potential tax matter while it is still pending. This committee’s work, the orderly process law violations. The ACA case estab- includes having surrogates sent out to collapsed on December 21, 1996, after lished limits on political activities of comment on the matter and attempt to the matter was forwarded to the full tax exempt organizations. mischaracterize it.’’ committee. Ignoring the advice of spe- It is important to understand that I am sure that Members of this House cial counsel and the subcommittee, the this case involved similar facts and are well aware of public comment since Republican leadership in the House im- some of the same parties as the matter the release of our findings on December posed an unrealistic deadline for the investigated by the subcommittee. In 21. As the special counsel States, ‘‘In completion of our work to coincide fact, in response to a question from the the opinion of the subcommittee Mem- with the Presidential inauguration. special counsel, Mr. GINGRICH stated, bers and the special counsel, a number The schedule agreed upon by the full and I quote: ‘‘I lived through that case. of press accounts indicated that Mr. Committee on Standards of Official I mean I was very well aware of what GINGRICH had violated that agree- Conduct for full public hearings on the the ACA case did and what the ruling ment,’’ the finding of the bipartisan subcommittee findings was unilater- was.’’ All experts agreed that he should committee and our special counsel. Mr. ally and improperly canceled. These have sought tax advice before using tax GINGRICH’s violation of the no com- partisan actions were aimed at shield- exempt organizations to pursue his po- ment agreement raises serious ques- litical agenda. ing Mr. GINGRICH from a full airing of tions about the extent to which he has In the words of our special counsel the charges to which he has admitted deliberately sought to mislead the Mr. GINGRICH’s actions suggest that guilt. committee in other instances. During the past 5 days the gentle- ‘‘either Mr. GINGRICH did not seek legal Beyond the events of December 21, advice because he is aware that it woman from Connecticut [Mrs. JOHN- 1996, Republican operatives close to Mr. would not have permitted him to use a SON] and I have worked closely to- GINGRICH conducted an ongoing cam- 501(c)(3) organization for his projects,’’ gether to use these days as effectively paign to disrupt the committee’s work. or he was ‘‘reckless in an area that was as possible to achieve two objectives: It is relevant for this House to consider fraught with legal peril.’’ these circumstances in determining the First, in the face of an unrealistic time Finally, the House must make a degree of Mr. GINGRICH’s culpability in limit, to get the broadest possible pub- judgment on the question of whether lic release of the information con- providing the Committee on Standards Mr. GINGRICH deliberately misled the tained in the subcommittee’s report; of Official Conduct information that committee. Mr. GINGRICH submitted was not accurate, reliable, and com- and second, to arrive at a fair, biparti- two letters to the committee that he plete. It is up to the Members of this san recommendation on sanctions. We now admits contained information have achieved both objectives, and for about GOPAC that was inaccurate. The House to determine the appropriate that I would like to express my appre- facts surrounding these inaccuracies sanction for the violations committed by Mr. GINGRICH. This is not a vote on ciation to the chairwoman. The report were well known to Mr. GINGRICH. Mr. whether Mr. GINGRICH should remain details the reason why the committee GINGRICH had read the letters before has found that Mr. GINGRICH has com- submitting them to the committee. Speaker of the House. Members need mitted a serious violation of the House When the investigative subcommittee time to become familiar with the fac- ethics rules. I urge each of my col- specifically called the contradiction in tual record presented in the special leagues to read the report and the ac- the letters to Mr. GINGRICH’s attention, counsel’s report and to consider the se- companying exhibits. he once again defended them as accu- riousness of these violations that have I will now briefly review the findings rate even though they were clearly just come to light during the past 4 of the special counsel’s report. First, wrong. The misleading letters were days. we must disregard the notion that this sent with the express intent of persuad- In the days and weeks to come Mr. case involves a college professor en- ing the Committee on Standards of Of- GINGRICH and each Member of this gaged in a normal academic classroom ficial Conduct to dismiss the pending House should consider how these activity. The respondent in this case is charges. They had the effect of mis- charges bear on the question of the not Professor GINGRICH, but Represent- leading the committee. It stretches speakership. The resolution before us, ative GINGRICH, a Member of the House, credibility to conclude that the re- the House, today is a sanction for Rep- minority whip and then Speaker of the peated misstatements were innocent resentative GINGRICH for the ethics vio- House, who had a vision to launch a po- mistakes. lations that he has committed. Accord- litical movement to change the coun- The linchpin of these findings is stating to the House rules a reprimand is try, in his words, from a welfare state ed clearly in the report of special coun- appropriate for serious violations of to an opportunity society. sel: ‘‘Of all the people involved in ethical standards. Sadly, Mr. GING- Second, over a 5-year period Mr. drafting, reviewing, or submitting the RICH’s conduct requires us to confirm GINGRICH improperly commingled po- letters, the only person who had first- that this case involves infractions of at litical activities with tax exempt orga- hand knowledge of the facts contained least that level of seriousness. He has nizations. When GOPAC ran short of within them with respect to the Re- provided inaccurate and misleading in- funds, Mr. GINGRICH sought contribu- newing American Civilization course formation to the Committee on Stand- tions from several tax exempt entities was Mr. GINGRICH.’’ ards of Official Conduct and there is in order to continue his partisan politi- The special counsel concludes: ‘‘Ei- significant evidence that he intended cal crusade. ther Mr. GINGRICH intentionally made to do so. Third, there is ample evidence that misrepresentations to the committee The recent history of congressional he did so in violation of tax laws. Celia or he was again reckless in the way he ethics sanctions indicate the House has Roady, the tax expert retained by the provided information to the committee imposed the sanction of reprimand committee, has concluded that the tax concerning a very important matter.’’ when a Member has been found know- laws were violated, and it is not even a Mr. GINGRICH’s defense is that he has ingly to have given false statements. close call. Our special counsel agrees always been very sensitive to ethics is- But the earlier cases did not involve H174 CONGRESSIONAL RECORD — HOUSE January 21, 1997 giving false statements to the Commit- Mr. Speaker, I reserve the balance of think that is what they were doing. tee on Standards of Official Conduct it- my time. They were trying to use political pres- self in response to an inquiry from the b 1230 sure to get a result in what is essen- Committee on Standards of Official tially a judicial type of deliberative Conduct, and Mr. GINGRICH’s case in- Mrs. JOHNSON of Connecticut. Mr. body. That was their intent. volves more than just giving false in- Speaker, I yield such time as he may That was one of the most unethical formation to the committee. Mr. GING- consume to the gentleman from New things I have seen since becoming a RICH has also admitted to directing a Mexico [Mr. SCHIFF], a distinguished member of the Committee on Stand- political empire that made extensive member of the subcommittee. ards of Official Conduct. use of tax exempt entities for political Mr. SCHIFF. Mr. Speaker, I first What I want to emphasize now is why fundraising purposes. As a result of all want to join in the compliments to the we are here today. I want to point out these actions, the reputation of the other committee members and to our that the statement made, that there House of Representatives has been staffs and special counsel because, even have been many new facts revealed in damaged and tax dollars have been though we had many disagreements the last several days, in my judgment lost. along the way, and obviously still have is not correct. We are here because of a But there is still more. This is not some disagreements, I think we made statement of alleged violation found by the first time Mr. GINGRICH has had the best possible effort to get us here the ethics subcommittee and released ethical problems that drew critical ac- today. publicly on December 21, 1996, to which tion by the Committee on Standards of I agree with the gentleman from the Speaker acknowledged. And those Official Conduct. On other occasions he Maryland [Mr. CARDIN] this is a sad violations have not changed. has been sighted by this committee for day. It is a sad day when any Member What has changed is the reporting of violating House rules. The American is here because of a recommendation of those violations in the news media over public has not forgotten the lucrative the Committee on Standards of Official the last several days. What I have seen book advance contract that the incom- Conduct. Last time I was here it was in the news media in various forms is ing Speaker of the House was forced to because a Democratic colleague was some significant misstatements of renounce under public pressure. Our here on our recommendations. I was what the violations are. But I have to committee concluded in regards to that not happier then because it was a Dem- add that I do not believe that that was book deal: ‘‘At a minimum this creates ocrat and not a Republican then. I in this case the fault of the news the impression of exploiting one’s of- think it is a sad day when it is a Mem- media. It is their job to be critical of fice for personal gain. Such perception ber of the House. us, and it is our responsibility to re- is especially troubling when it pertains Nevertheless, I think the House can to the Office of the Speaker of the spond if we think it is appropriate. be proud of the fact there is account- But I want to make it very clear House, a constitutional office requiring ability for its Members. I wish such ac- the highest standards of ethical behav- what I think happened was an unfortu- countability could be found from every nate matter of timing, that on Friday ior.’’ area of our government. Because of all those factors, these of last week, our hearing did not begin Second, I am sorry that in the ren- violations require a penalty more seri- and our written report was not avail- dition of facts I just heard, there were ous than a reprimand. Considering all able until 3 o’clock on Friday after- certain partisan conclusions that these matters, I urge this House to noon. Some reporters have told me eliminated other conclusions which I adopt the resolution before us. The res- there were not enough copies to go guess could be stated from the other olution incorporates the recommenda- around. So they are trying to form tion of the special counsel, the inves- side. For example, it was said that deadlines for their programs or for tigative subcommittee, the full Com- there was an attempt made by our their newspapers with a report that is mittee on Standards of Official, and chairwoman, the gentlewoman from over 200 pages long. I think it is en- Connecticut [Mrs. JOHNSON] who got us Mr. GINGRICH. The sanction we rec- tirely understandable that some errors ommend is somewhere between a rep- here, when many people expected along were made at first. rimand and a censure. It provides a the way we could never get here; but Nevertheless, I think some errors reprimand plus a required $300,000 con- through her leadership we are here were made. They were made because tribution by Mr. GINGRICH to the cost today. Mr. Cole’s report attempted to be a of these proceedings. In my view this There was the accusation that our soup-to-nuts, beginning to end expla- payment should come from his per- chairwoman deliberately tried to scut- nation of what we did in the ethics sub- sonal resources because it is a personal tle the information getting to the committee to get to where we are responsibility. Members in order to mitigate any ef- today. In going through step by step, Mr. Speaker, with today’s vote I will fect on Congressman GINGRICH. Quite he quite properly, in my judgment, said have completed my service on the the contrary. Our chairwoman and the we had this choice to make and we had Committee on Standards of Official rest of us had an agreed to up to 5 days this fact and we handled it as follows, Conduct. Over the past 6 years and 1 of public hearings. Those were changed and so forth. But what I have seen as month I have participated in many eth- only when our Democratic colleagues reported as a final conclusion, certain ics matters. Among the issues that we on the Committee on Standards of Offi- excerpts from that report were had before the committee during my cial Conduct held a press conference in intermediary at best. tenure has been not only this matter which they said the most important The final conclusion of the sub- but the House bank and post office product we could produce would be a committee did not change. That final matters, both of which exposed many written report that Members could conclusion is, first, that Mr. GINGRICH Members of this House, including its consider before they vote. should have sought competent legal, leadership, to embarrassment either That left our Chair, in my judgment, professional tax advice before he began for misdeeds or for mismanagement. I no alternative but to change directions his procedures that involved the use of must say, however, that the matter be- and to postpone the public hearing, a tax-exempt foundation, which under fore us today has brought a threat to which we ultimately did have anyway, the law is called a 501(c)(3) organiza- the Committee on Standards of Official in favor of trying to produce the writ- tion. Conduct that far exceeded anything I ten report by this date which we have Second, that materials were sent to have seen. The committee was subject now accomplished. the Committee on Standards of Official to repeated attempts to obstruct its There has been no mention of the Conduct in response to questions from work and improperly interfere with its fact that Members on the Republican the Committee on Standards of Official investigation. As I leave the Commit- side particularly were subject to enor- Conduct that the Speaker should have tee on Standards of Official Conduct, I mous political attack in their districts. known were inaccurate. That is the hope that the incoming Members will If I were still a district attorney, a ca- final finding, if you will, of the sub- find the process has survived and will reer I had before I got to Congress, I committee. continue to serve this House and the would have certain leaders arrested for The report goes through all of the people of our Nation. attempted jury tampering, because I events, and I heard the gentleman from January 21, 1997 CONGRESSIONAL RECORD — HOUSE H175

Maryland [Mr. CARDIN] make reference our behalf and the Speaker’s attorney, Mr. Speaker, the gentleman from to a number of the events. But the Mr. Evans, on his behalf. So we got re- New Mexico [Mr. SCHIFF] is correct, we findings did not change. All of the ports on it. But the report we got back are in agreement on the recommenda- events would include things like we on was that Speaker NEWT GINGRICH tion. We put different emphasis on the subcommittee interviewed every- agrees that because he holds a unique some of the facts. Mr. GINGRICH clearly, body we could find who had anything position in the House he should receive in my view, had ample opportunity to to do with the preparation of those two a unique penalty, so there is no doubt know about the statements in his let- letters that were inaccurate. even the Speaker of the House is not ters. He did indicate he hired an attor- What we found, in my judgment, if it above the rules. ney in order to draft the two letters. were not so serious, and I recognize I would hastily add, however, two Let me just read, if I might, from the how serious it is, it would really be things, and conclude with this. The transcripts as to the exchange between called a comedy of errors. first is that I think there is room for Mr. Cole and Mr. Baran, Mr. Baran What happened was the letters were this to be made a standing procedure in being Mr. GINGRICH’s attorney. prepared in Mr. GINGRICH’s law firm certain cases. For example, I saw what Mr. Cole: ‘‘Would you have made sure that sent the letters first to a staff in my judgment were a number of friv- that he had read it and approved it, or member in Mr. GINGRICH’s office. The olous complaints filed with the Com- just the fact he read it is all you would law firm thought that the staff mem- mittee on Standards of Official Con- have been interested in,’’ referring to duct which had no other purpose than ber would correct any factual Mr. GINGRICH? misstatements. The staff member to be leaked to the press and create bad Mr. Baran said, ‘‘No, I would have thought the law firm had already publicity for whomever was the target wanted him to be comfortable with this checked out the facts. So nobody of those complaints. It seems to me on many levels.’’ checked out the facts to see if they that the precedent we have established Mr. Cole: ‘‘Were you satisfied he was were accurate. But the most important here should apply to those who are comfortable with it prior to filing it thing is that Mr. GINGRICH was never found by the committee to have filed with the committee?’’ involved in the preparation of those frivolous complaints. Mr. Baran: ‘‘Yes.’’ Finally, on how the funds should be letters at any point until the very end Let me also point out that after this, paid if the House adopts the rec- where he acknowledges he signed them, after we pointed out to Mr. GINGRICH ommended penalty, we were delib- he should have read more carefully, the inconsistency in the letters, Mr. erately silent on that. My colleague, and he is responsible for that before GINGRICH wrote another letter back to the gentleman from Maryland [Mr. this House of Representatives. the committee. Clearly he had time to ARDIN], is most certainly entitled to I would point out that in a letter of C review the inconsistencies by that his opinion, but the subcommittee and October 1996 that he prepared himself time. The October 31, 1996, letter, in the committee made no determination. with his staff, he gave us entirely accu- Insofar as I have studied the prece- that letter he still maintains his inno- rate information about the matters dents on financial remuneration to the cence on inconsistencies in the letter, that are under consideration here. I Government, we have never established even though the letters were clearly in- think it is pretty obvious you do not as a matter of law how these funds can accurate, he knew they were inac- give accurate information in October be paid. curate, and he had a chance to reread and then you can deliberately prepare Mr. GINGRICH, if he does get this as a the letters and correct the record. 1 information the following September final penalty, understands all the rami- Mr. Speaker, I yield 11 ⁄2 minutes to and March that nobody would know the fications, I am certain he does not need the gentlewoman from California [Ms. difference of. me to explain them to him or, for that PELOSI], my colleague on the Commit- Based upon the allegation, the viola- matter, any of my colleagues on the tee on Standards of Official Conduct, tions we found, the Committee on other side. But the fact is the commit- who was on the investigative sub- Standards of Official Conduct on a 7-to- tee was silent deliberately on how any committee and who has made a great 1 vote, full committee now, entire com- such funds should be paid. It is my un- contribution to this process and has mittee, recommended the following derstanding there are at least some been an extraordinary member of our penalty: It recommended a reprimand precedents for campaign funds, for ex- Committee on Standards of Official and a cost assessment of $300,000. In ample, being used to reimburse the Conduct. some meetings earlier with members, I Government, and certainly we all know Ms. PELOSI. Mr. Speaker, I thank have heard some members say that that the Chief Executive of the United the gentleman for yielding me time that is unique and they are concerned States has a legal defense fund in and for his leadership and guidance about that penalty being unique be- which he raises money. So I am just throughout this process. Clearly with- cause, although we have imposed cost saying that whatever the options are out his involvement, we would not be assessments before, we have never done to NEWT GINGRICH as a Member of the here today with a bipartisan rec- so in the past for the cost of the inves- House, they have not been precluded le- ommendation for a sanction for the tigation. gally by the committee, and in my Speaker of the House. That is basically what we did. We set judgment they should not be. Mr. Speaker, as a member of the in- $300,000 as the estimated cost of that With that, Mr. Speaker, I just want vestigative subcommittee, I would like portion of the investigation that dealt to again commend our chairwoman, to take this opportunity to publicly with clearing up the misstatements the gentlewoman from Connecticut thank the gentleman from Florida, that we received, which may have [Mrs. JOHNSON], my fellow members of PORTER GOSS, our Chair of the inves- begun to be prepared in Mr. GINGRICH’s the committee, and say I believe we tigative subcommittee, again acknowl- law firm, but for which he is respon- have come up with an appropriate pen- edge the gentleman from Maryland, sible as a Member of the House. alty, which some think is too harsh, Mr. CARDIN, as ranking member for his I want to tell all Members that they some think is too lenient. That tells service there, as well as to say how do not need, in my judgment, to be me we are about where we ought to be. much I learned from the gentleman concerned about the precedent value, I hope the House will adopt it. from new Mexico, Mr. SCHIFF, in the because I believe everyone concerned ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE course of our service there. understood that this is a unique pen- The SPEAKER pro tempore (Mr. BE- Clearly, from the debate so far, you alty because the Speaker of the House REUTER). The Chair will request that can see that we had many unresolved is a unique official in our institution. visitors in the gallery, in coming and difficult issues to deal with, and under In fact, that is the reason we decided going, refrain from any audible disrup- the leadership of the gentleman from to, on the subcommittee’s part, pro- tion of the proceedings. Florida [Mr. GOSS], we went through pose a unique penalty, and we got Mr. CARDIN. Mr. Speaker, I yield that. word, I have to say ‘‘got word,’’ be- myself such time as I may consume I want to also commend our special cause we never met with the Speaker briefly to comment on some of the counsel, James Cole, for making us to discuss the penalty. All of the nego- points raised by the gentleman from stick to the facts, the law, and the eth- tiations were by our special counsel on New Mexico [Mr. SCHIFF]. ics rules as those elements that were H176 CONGRESSIONAL RECORD — HOUSE January 21, 1997 the only matters relevant to our deci- tained 3 counts: Mr. GINGRICH’s activi- of Official Conduct. It is interesting to sions, and many thanks to Kevin Wolf ties on behalf of ALOF in regard to me that Speaker GINGRICH has repeat- and Virginia Johnson for their assist- AOW and ACTV, and the activities of edly stated that ethics are important ance and professionalism. others in that regard with his knowl- to him. Why, then, did he say that he I heard my colleague, the gentleman edge and approval, constituted a viola- was too busy to respond to the commit- from New Mexico [Mr. SCHIFF], say in tion of ALOF’s status under section tee accurately? Again, either he was his earlier days as a prosecutor he 501(c)(3). trying to get complaints dismissed and might entertain thoughts of bringing Second, Mr. GINGRICH’s activities on an accurate answer would not achieve jury tampering charges. If he decides behalf of Kennesaw State College that end, or that ethics were not im- to do that, I hope that the gentleman Foundation, the Progress and Freedom portant enough for him to take the will include in his package the dirty Foundation, and Reinhardt College in necessary time. tricks memo that is now in the public regard to the Renewing American Civ- As our colleague, Mr. CARDIN, has record that is a written document ilization course, and other activities in pointed out, Mr. GINGRICH gave one an- about attempts to undermine the eth- that regard, with his knowledge and swer in the earlier letter in order to re- ics process directly by the Republican approval, constituted a violation of spond to a complaint regarding use of House leadership. those organizations’ status under official resources for his course, so he Let me say though we did produce a 501(c)(3). said GOPAC did it. Then when we bipartisan product. I hope our work And, third, Mr. GINGRICH had pro- asked the question if GOPAC and will serve as a foundation for a biparti- vided information to the committee, 501(c)(3) cannot be that cozy, then he san solution to be agreed to today. directly or through counsel, that was said GOPAC did not do it; and then in Today, others have said it, is a sad material to matters under consider- the third communication to the com- day. I think it is a tragic day. Here in ation by the committee, which Mr. mittee, he stood by his previous let- the House of Representatives we will GINGRICH knew or should have known ters. sanction a sitting Speaker for the first was inaccurate, incomplete, and unreli- The gentleman from New Mexico [Mr. time. It is an unwelcome task to pass able. SCHIFF] prefers to call it a comedy of judgment on any of our colleagues, but These were not the alleged violations errors. I think it is violating our trust we have a responsibility to uphold ethi- that were passed out at the committee that we have among Members. Every cal standards called for in the rules and because we did not come to agreement day that we speak to each other in this expected by the American people. on them, but they are the original alle- House, we refer to each other as the I associate myself with the gen- gations by the special counsel. I think gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland, Mr. CARDIN’s, everyone is well aware that we have tleman from Maryland. We trust each remarks about the process. We should charged the Speaker in our statement other that we will deal truthfully with not have to choose to make the Amer- of alleged violations that he did not ensure that the law was complied to in each other. ican people aware of either the hearing, Unfortunately, in terms of Speaker a full hearing, or the report. But since his activities, and that he gave infor- GINGRICH’s dealings with the commit- mation to the committee that was not we have a report, I urge everyone to tee on a number of occasions, and in read it. I think it is very instructive accurate. Think how much easier it would be if his violation of the agreement under and gives lie to many of the which we would go forward in bringing mischaracterizations that have been we could all use the 501(c)(3), not con- this issue to a conclusion, Mr. GING- made about the violations that the sult a lawyer, and build our political RICH’s statements lead me to one con- INGRICH agenda around tax deductible consider- committee charged Mr. G with clusion: that Mr. GINGRICH, in his deal- ations. The American people in their and those which he admitted to. ings with the committee, is not to be generosity give the opportunity to b 1245 believed. I conclude also that Mr. GING- charitable institutions to do charitable RICH gave these different answers not The last few weeks have been dread- work. That does not include subsidiz- because it was a comedy of errors, but ful. But we have an opportunity to say ing our political activity. At the grass- because he thought he would get away today to the American people that roots level we have always had to com- when we come to Washington, we do with it. ply with the law in relationship to po- I was particularly concerned about not check our integrity at the beltway, litical activity and 501(c)(3). If we have the ‘‘too busy’’ defense. We cannot say and that power is not a license to ig- to do it at the grassroots level, so that ethics is important to us and then nore ethical standards. We also have an should the Speaker of the House. say we are too busy to answer the opportunity to tell the American peo- As the counsel mentions in his state- central question asked by the Commit- ple that sanity can reign in the Con- ment, some members of the committee tee on Standards of Official Conduct. gress by demonstrating our ability to and the special counsel were in favor, Maintaining a high ethical standard is agree and disagree in a respectful way. as I mentioned before, of the original a decision, and it requires making it a The American people gave us the privi- proposal. After much deliberation, all priority. It is not just something we do lege to serve; they expect us not only four of us could agree on a statement when we are not too busy. to make the laws and to obey the laws, of alleged violations that despite, in We expect the Speaker of the House but also to live up to a high ethical quotes, ‘‘Despite significant and sub- to be busy. We also expect the Speaker standard. stantial warnings, Mr. GINGRICH did of the House to be ethical. Speaker So today we are here to address the not seek the legal advice to ensure that GINGRICH himself has stated that the failure of Speaker GINGRICH with re- his conduct conformed with the provi- Speaker must be held to a higher gard to the laws governing charitable sions of 501(c)(3),’’ with the law. standard. I do not put any additional contributions and GOPAC, and his fail- Why did he not? Why did he not? Ei- burden on the Speaker. I think all ure to respond accurately and reliably ther because Speaker GINGRICH knew Members of Congress should be held to to the Committee on Standards of Offi- what the answer would be no, from an a higher ethical standard. cial Conduct. attorney, ‘‘No, you cannot do this,’’ or When new Members arrive in Con- I would like to just take a moment to he was reckless in conforming with the gress, one of the first documents they refer to the book, because as I asked law. The committee decided that re- receive is the House Ethics Manual. people to read it, I want to point out gardless of the resolution of the And one of the first responsibilities im- the statement of alleged violations 501(c)(3) tax question, Speaker GING- pressed upon all of us is to uphold a which was originally set forth by the RICH’s conduct was improper, did not high ethical standard. Clearly, Speaker special counsel. This is on page 155. reflect credibly on the House, and was GINGRICH did not live up to his own Based on the information described deserving of sanction, serious sanction, professed ethical standards of the above, the special counsel proposed a and Speaker GINGRICH agreed. House, and, indeed, to the ethical statement of alleged violations to the The next issue in my view is the standards in this book. subcommittee on December 12. The most serious, that of not dealing hon- I urge my colleagues to read this restatement of alleged violations con- estly with the Committee on Standards port. I think when you do, you will see January 21, 1997 CONGRESSIONAL RECORD — HOUSE H177 that it gives lie to the mis a recommendation which is today be- course of action in tax areas he knew characterizations of our Republican fore this House, for an official rep- to be sensitive and controversial. And colleagues that the violations were rimand and a $300,000 cost assessment even more troubling, I found the fact nothing, or that they were like tres- to Mr. GINGRICH as sanction for his vio- that the committee was given inac- passing or double parking. Either our lation of House rules and as partial re- curate, unreliable, and incomplete in- colleagues were ill-informed, and that imbursement for the costs of the information to be a very serious failure is what I choose to believe, or they quiry that ensued. This is unquestion- on his part. have a cavalier regard for the tragedy ably a serious sanction, but one that is b 1300 of the Speaker admitting bringing dis- also fair and appropriate, in my view, Now, it is certainly true that we had credit to the House of Representatives as evidenced by the fact that indeed more than enough facts and extenuat- which he wants to lead. Mr. GINGRICH himself has agreed to it. Now we come to the penalty. As you The Committee on Standards of Offi- ing circumstances to consider. We all know, we have a financial penalty be- cial Conduct, functioning independ- know a Member of Congress wears cause we believe that the inaccurate ently of leadership on both sides of the many hats, for our official lives, our statements that the Speaker said to us aisle, is supposed to find the truth campaign lives, our private lives, our business lives or whatever, and knowl- prolonged the process. There are other through an investigative process. It is edge of how careful we must be in reasons why there is a financial pen- not designed to protect errant Mem- wearing those hats is fundamental to alty, but that was one of them. And the bers, nor is it designed to permit par- our job. We all have an extra obligation subcommittee concluded, and I quote, tisan zealots to destroy Members or to to be sure our activities are appro- ‘‘that because these inaccurate state- score political points. ments were provided to the committee, In this case, the committee’s mem- priate, no matter which hat we are wearing. That is an obligation that this matter was not resolved as expedi- bers were subject to frequent unfair each of us signs up for when we run to tiously as it could have been. This and inaccurate partisan political at- caused a controversy over the matter serve in this institution. tack. That is a matter of fact. Out- That is why the serious sanction we to arise and last for a substantial pe- siders attempted to influence our ac- riod of time, it disrupted the oper- recommend is appropriate, in my view. tivities, our deliberations, our schedule The gentleman from Georgia [Mr. ations of the House, and it cost the and our conclusions. That is truly a House a substantial amount of money GINGRICH] has recognized his lapses and shame. It has caused harm, not just to the problems they have caused for this in order to determine the facts.’’ the Members involved, but it has also So I urge our colleagues, in light of House. He has apologized, forthrightly brought discredit to this institution, in and sincerely. He has also accepted the all of that, to support the bipartisan my view. recommendation of the committee. unique sanction we proposed, one that Friday, I urged the leadership on includes a clear signal to all Members The $300,000 penalty I believe speaks both sides of the aisle to tone down the eloquently to the American people, about the importance of providing ac- rhetoric, cut the nonsense, and get curate and grounded information to who may not know the weight of one of back to work in repairing the damage our sanctions or another, but they un- the Select Committee on Ethics, that has come to this House. I repeat whether in response to a complaint or derstand $300,000. And I hope that this that exhortation today. money will not come from the Speak- in filing a complaint. With regard to the matter at hand, I I must point out to Members that our er’s political campaign funds, because I am very satisfied with the work done think that will increase the cynicism mission in the preliminary investiga- by our investigative subcommittee, tion was to find and examine the dark of the American people about what whose recommendation was adopted by goes on here in Washington. clouds. That is what investigations do. the full committee and is the rec- Mr. Cole is very good at that. He is a Whether the Speaker remains Speak- ommendation all Members will con- er is up to the Republicans. He is tech- brilliant prosecutor. In his report he sider today. presented well those dark clouds. He nically eligible. I hope you will make a The four of us, working with the ex- judgment as to whether he is ethically did not, however, present all of the traordinarily talented special counsel, other clouds we looked at that turned fit. Jim Cole, functioned in a spirit of bi- Mrs. JOHNSON of Connecticut. Mr. out to be not quite so dark. So I found partisan cooperation that did actually Speaker, I yield such time as he may that his report would be well supple- grow as we went along in the case. I consume to the gentleman from Flor- mented by reading the report of the say we started with different perspec- ida [Mr. GOSS), the chairman of the Speaker’s attorneys for balance, as tives, but we started with open minds, subcommittee, and I want to recognize well. I refer colleagues and interested the outstanding job that he did and I am grateful for the very fine parties to both reports to get the full chairing that subcommittee, as I recog- service, the unbelievable commitment picture. nize the remarkable service of the of time of the members, their coopera- In the end, I agreed with my sub- members of that subcommittee. tion. I take my hat off to the gen- committee colleagues that Mr. GING- (Mr. GOSS asked and was given per- tleman from Maryland [Mr. CARDIN], RICH’s absence of diligence subjects him mission to revise and extend his re- the gentleman from New Mexico [Mr. legitimately to charges of conduct marks.) SCHIFF], and the gentlewoman from reckless enough to constitute a viola- Mr. GOSS. Mr. Speaker, I thank the California [Ms. PELOSI], all of whom in tion of House rules. I sincerely hope gentlewoman from Connecticut, the my view bring great credit to this in- with today’s voting we can put this distinguished chair of our committee, stitution. matter to rest. for yielding me this time. She deserves Contrary to what has been reported, I urge this House to adopt the rec- our sincere gratitude for all she has en- the statement of alleged violations ommendation of the Select Committee dured, for her persistence, for her de- that our subcommittee developed and on Ethics and remember, the penalty is termination to bring this to a success- passed and which forms the basis for aimed at findings in response to the ful conclusion, and here we are today. the sanctioned recommendation did specific work of our subcommittee, no It was certainly an unenviable and, I not, I repeat not, find that Mr. GING- matter what feelings any particular know, thankless task. RICH violated or did not violate tax law Member may personally have about Today we have a conclusion. Today in his relationship with 501(c)(3) tax ex- Mr. GINGRICH. the House takes the final step in what empt organizations. And contrary to Some have said this is a sad day. In- has been a most difficult process, I media reports, that statement of al- deed it is, whenever we have this type think we all would agree. It is not just leged violation of December 21st also of a situation. I will also say it is a day for those intimately involved in the did not charge Mr. GINGRICH with in- of victory. We have proved to the day-to-day twists and turns in this tor- tentionally deceiving our committee American people that no matter how tuous case, but also for the entire with his correspondence in this case. rough the process is, we can police our- House. Nonetheless, I found it extraor- selves. We do know right from wrong in On Friday the full Committee on dinarily imprudent of Mr. GINGRICH not this institution. We can take the nec- Standards of Official Conduct approved to seek and follow a less aggressive essary steps. H178 CONGRESSIONAL RECORD — HOUSE January 21, 1997 Mr. CARDIN. Mr. Speaker, I yield 5 him less effective. I might say that I agree. cial counsel, it was the opinion of the Ethics minutes to the gentleman from Penn- The subcommittee released its statement of Subcommittee, after two years of investigation sylvania [Mr. BORSKI], a very valuable alleged violation on the Saturday before and inquiry, that this matter fell somewhere in member of the Select Committee on Christmas. The counsel's report was released between. As such, both the subcommittee and Ethics, who has done yeoman’s service on Friday afternoon, before inaugural week- the special counsel recommended that the ap- for the House and for the Congress on end, with the vote firmly scheduled for this propriate sanction should be a reprimand and that committee. afternoon. Despite a prior agreement which al- a payment reimbursing the House for some of (Mr. BORSKI asked and was given lowed for a full week of public hearings, we the costs of the investigation in the amount of permission to revise and extend his re- were left with only a single afternoon's ses- $300,000. Mr. GINGRICH has agreed that this marks.) sion. Mr. Cole, along with members of the full is the appropriate sanction, as has the full Eth- Mr. BORSKI. Mr. Speaker, I thank committee and subcommittee were troubled by ics Committee. the gentleman for yielding me this the time line insisted upon by Republican Mr. Speaker, I say to my colleagues, time. leadership. The special counsel insisted with particularly my colleagues on the Mr. Speaker, I want to start by com- consistency that he would be hard pressed to Democratic side of the aisle, this is not mending the members of the investiga- complete a report detailing the 2-year inves- about who should be the Speaker of the tive subcommittee, the gentleman tigation before February 4. Yet, Mr. Cole was House. Democrats have no say in who from Maryland, Mr. BEN CARDIN, the denied the time he deemed necessary. should be the Speaker of the House. gentlewoman from California, Ms. Despite these obstacles, however, the spe- That is up to the majority party. NANCY PELOSI, the chairman, the gen- cial counsel did release a report on Friday This is not about process. There were tleman from Florida, Mr. PORTER GOSS, afternoon which included the subcommittee's parts of this process that I find ex- and, of course, the gentleman from recommended sanction of a reprimand and tremely disturbing, and parts that I New Mexico, Mr. SCHIFF, for the ex- fine. In this report, Mr. Cole, along with Ms. think need to be dealt with further at traordinary job they have performed Roady, the subcommittee's tax expert, and an appropriate time. This is not that for this institution. They are all people two members of the committee conclude that time. of enormously high integrity, and they Mr. GINGRICH has violated the tax code in con- This is not about whether the exist- have done this committee and this junction with 501(c)(3). However, the Commit- ing tax code in question is arcane. I House very proud. tee agreed that the focus of the investigation asked the special counsel, Mr. Cole, at I also want to commend the special should be on the conduct of the Member rath- our Friday afternoon public hearing counsel, Mr. Cole, who under the most er than the resolution of issues of tax law whether the law was in fact arcane, difficult and trying of circumstances which would best be left to the IRS. What the and Mr. Cole responded in the strong- came through with a report that, report does say about the 501(c)(3), is the fol- est possible language that the law was again, I would urge all Members of the lowing: not arcane. In fact, it is a headline House to read; but again, under the ``* * * the subcommittee was faced with a issue that politics and tax-exempt or- most difficult and trying of cir- disturbing choice. Either Mr. GINGRICH did not ganizations should not mix. Even Mr. cumstances, he performed an heroic seek legal advice because he was aware that GINGRICH’s tax attorney agreed with deed for this House. it would not have permitted him to use a that statement. Mr. Speaker, let me state the obvi- 501(c)(3) organization for his projects, or he I also asked the special counsel to re- ous. No Member seeks or enjoys a posi- was reckless in not taking care that, as a spond to the spin that we are all famil- tion on the Ethics Committee, but the Member of Congress, he made sure that his iar with, and it goes like this: ‘‘I saw proper functioning of that committee conduct conformed with the law in an area the course, I watched the tape. There is is essential to the integrity of the where he had ample warning that his intended nothing political about them.’’ Mr. House. It is a matter of personal and course was fraught with legal peril. The sub- Cole’s response was that the issue in institutional honor that each of us has committee decided that regardless of the reso- question was not so much the content agreed to serve. lution of the 501(c)(3) tax question, Mr. GING- of the course, but, rather, the intent I remember distinctly when I re- RICH's conduct in this regard was improper, and the way in which it was distrib- ceived the phone call that any one of did not reflect creditably on the House and uted. us never wants to get; a leader of my was deserving of sanction.'' The report states, ‘‘Mr. GINGRICH ap- party, Speaker Tom Foley, asked me to With respect to the letters containing inac- plied the ideas of the course to partisan serve on the Ethics Committee. I re- curate information that Mr. GINGRICH provided political purposes.’’ Mr. Speaker, this member distinctly saying to Mr. Foley to the committee, the report goes on to say: is not about determining the innocence that I was reminded of the fellow who ``The special counsel suggested that a good or the guilt of Mr. GINGRICH. He has al- was tarred and feathered, put on a rail argument could be made, based on the ready admitted that guilt, that he has and run out of town, whose retort was record, that Mr. GINGRICH did act intentionally, brought discredit to this House. This is that if it weren’t for the honor, he however it would be difficult to establish that about the ability of the House of Rep- would rather walk. I am on this com- with a high degree of certainty * * * In deter- resentatives, under the most trying of mittee, but it is as a reluctant mem- mining what the appropriate sanction should circumstances, to judge one of its own ber. On more than one occasion I have be in this matter, the subcommittee and the Members, an extremely controversial offered to step down when the removal special counsel considered the seriousness of Member, one who has led his party to of a member was necessary to maintain the conduct, the level of care exercised by Mr. the majority. It is our duty to deter- the political balance of the committee. GINGRICH, the disruption caused to the House mine the appropriate sanction to that But Mr. Speaker, I feel very strongly by the conduct, the cost to the House in hav- Member. that it is our constitutional duty, and ing to pay for an extensive investigation, and The subcommittee, aided by the spe- it was mine, to respond positively to the repetitive nature of the conduct.'' cial counsel, has conducted an inves- Tom Foley’s request. It was, again, cer- ``The subcommittee was faced with troubling tigation and made its recommendation tainly not a position that I wanted. choices in each of the areas covered by the to the full committee, which in turn I hope to concentrate my efforts and statement of alleged violation. Either Mr. GING- has made that recommendation to the energies on the work of the Committee RICH's conduct in regard to the 501(c)(3) orga- full House. on Transportation and Infrastructure, nizations and the letters he submitted to the Those are the processes we have adopted probably the most bipartisan commit- committee was intentional or it was reckless. and those are the processes we have fol- tee in this House of Representatives, Neither choice reflects creditably on the lowed. We are giving every Member, inde- and where that bipartisan atmosphere House. * * *'' pendently, the opportunity to put aside par- has enabled us to turn out very impor- Under the rules of the committee, a rep- tisan politics and follow the recommendation tant pieces of legislation. rimand is the appropriate sanction for a seri- offered by the special counsel, the subcommit- It is always a grueling and distasteful task to ous violation of House Rules and a censure is tee, and the full committee upon completion of investigate a fellow MemberÐall the more so appropriate for a more serious violation of a 2-year inquiry. It is right and it is just. We in the case of the Speaker. Some have sug- House rules. This is the extent to which guide- were asked as Members of Congress to put gested that partisan attempts were made to lines are in place for Members to make a de- aside our partisan beliefs and serve on this derail the special counsel's efforts and render termination of sanction. According to the spe- committee out of a sense of duty and honor. January 21, 1997 CONGRESSIONAL RECORD — HOUSE H179 Now, we are asking you to honor our rec- science, and vote against a penalty Let there be no mistake, Respondent has ommendations with dignity. that we know is too severe. accepted the Investigative Subcommittee’s I ask my colleagues to honor the The report of counsel and article fol- Statement of Alleged Violation. In doing so, work of the Ethics Committee and to low: Respondent has accepted the facts contained therein. This does not mean, however, that IN THE MATTER OF SPEAKER NEWT vote yes for this very strict sanction. Respondent accepts as true those asserted GINGRICH Mrs. JOHNSON of Connecticut. Mr. facts not contained in the Statement of Al- Speaker, I yield 3 minutes to the gen- COMMITTEE ON STANDARDS OF OFFICIAL CON- leged Violation. To assist the Committee in tleman from Texas [Mr. SMITH]. DUCT: REPORT OF COUNSEL FOR THE RE- its decision-making process, attached hereto (Mr. SMITH of Texas asked and was SPONDENT as Appendix A is a timeline of the events re- given permission to revise and extend This is the Report of Counsel for the Re- lating to the Renewing American Civiliza- his remarks.) spondent Speaker Newt Gingrich. This Re- tion course. This Report is submitted to port is being submitted in connection with place the general body of facts in the context Mr. SMITH of Texas. Mr. Speaker, I the Sanction Hearing specified in Rule 20 of thank the chair of the Ethics Commit- of reality as opposed to a version of the facts the Rules of the Committee on Standards of viewed with hindsight that could only exist tee for yielding time to me. Official Conduct (‘‘Rules’’) regarding written in a laboratory free from the dynamics of the Let me say at the outset that you submissions by counsel.1 The Report is sub- real world. For assistance in placing the can clearly disagree and have great reject to two limitations. First, the Report has facts in context, please see Appendix B. spect for your colleagues on the Ethics been prepared without the access to all of the information collected by the Investiga- SCOPE OF HEARING Committee, as I do, and still reach dif- There have been a myriad of charges and ferent conclusions, as I do. tive Subcommittee. Respondent was limited to certain exhibits made available by the allegations made against Respondent. With My conclusion is that the penalty Committee; selected transcripts made avail- the exception of the single violation con- that has been assessed by the Ethics able by the Committee; and public docu- tained in the Statement of Alleged Viola- Committee is way too severe when you ments. Second, Respondent has not been af- tion, those charges and allegations are un- look at the actual findings of the com- forded the opportunity to conduct discovery true and groundless. The only violation be- mittee and when you look at the prece- or otherwise develop information relating to fore this Committee for purposes of deter- dent that has been established by this the matter before the Committee. mining the appropriate sanction, if any, is OVERVIEW the violation contained in the Statement of House. Alleged Violation. The Statement of Alleged Let us look at the actual findings. On December 21, 1996, the Investigative Subcommittee issued a Statement of Alleged Violation describes conduct which violates There have been two here. The first Rule 43(1) of the Rules of the Committee on finding is that the Speaker should have Violation. The Statement was the product of an investigation by the Investigative Sub- Standards of Official Conduct. Rule 43(1) pro- consulted an attorney about tax laws. committee and Special Counsel. It is impor- vides as follows: ‘‘A Member, officer, or em- The second is that he submitted two tant to note that the process was one-sided: ployee of the House of Representatives shall inaccurate letters to the Ethics Com- Witnesses were not subject to cross-examina- conduct himself at all times in a manner mittee. These are real mistakes, but tion; documents were not subject to which shall reflect creditably on the House they should not be hanging offenses, pertinency or admissibility standards; and of Representatives.’’ Rules of the Committee traditional rules establishing standards for on Standards of Official Conduct, Rule 43, especially when we consider that there clause 1. was no finding of any law that was bro- admissibility, pertinency and reliability of evidence were not applied. Respondent was Paragraph 52 of the Statement of Alleged ken, there was no finding of any intent not permitted to participate in the examina- Violation contains the only violation found, to mislead the Ethics Committee, and tion of witnesses or documents. and states that: there was no finding that the Speaker Also on December 21, 1996, Respondent sub- ‘‘[R]egardless of the resolution of whether received any personal financial gain. mitted an Answer admitting the alleged vio- the activities described in paragraphs 2 The special counsel to the Ethics lation. Pursuant to Rule 19(c) of the Rules, through 41 constitute a violation of section Committee once described it this way. Respondent’s admission relieved the Com- 501(c)(3) of the Internal Revenue Code, by failing to seek and follow legal advice described He said that the Speaker had ‘‘run mittee of determining through an adjudica- tory subcommittee at a Disciplinary Hearing in paragraphs 15 and 40, Mr. Gingrich failed to some very yellow lights.’’ But you do whether the single count in the Statement of take appropriate steps to ensure that the activi- not get ticketed, or you should not, for Alleged Violation was proven by clear and ties described in paragraphs 2 through 41 were running a very yellow light, no matter convincing evidence. At such a Disciplinary in accordance with section 501(c)(3) of the In- how close it is to becoming a red one. Hearing, Respondent would have been af- ternal Revenue Code; and on or about March If we look at the precedents that forded the opportunity to cross-examine wit- 27, 1995, and on or about December 8, 1994, in- have been established here as well, we nesses, challenge documents and obtain dis- formation was transmitted to the Committee by see that there is no justification for covery. and on behalf of Mr. Gingrich that was material With the Statement of Alleged Violation to matters under consideration by the Commit- this severe a penalty. The Ethics Com- and the Answer, the next process con- tee, which information, as Mr. Gingrich should mittee staff has researched this issue, templated by the Rules is a Sanction Hear- have known, was inaccurate, incomplete, and and there is simply not a single case ing pursuant to Rule 20. This process does unreliable.’’ Statement of Alleged Violation, where there has not been a finding of not entail a trial on the merits of the alleged ¶ 52, p. 22 (emphasis added). an intent to mislead the committee violation. Instead, the process is limited to The standard relating to the adoption of a that has resulted in a penalty of rep- determining the appropriate sanction, if any, Statement is contained in Rule 17(d) of the for the violation. Rules of the Committee on Standards of Offi- rimand, not a single case. This Report is submitted for that purpose. In fact, all of the precedents are to cial Conduct and provides: This is not a report in response to the Spe- ‘‘Upon completion to the Preliminary In- the contrary. Wherever there has not cial Counsel’s Report. It does not contain a quiry, an investigative subcommittee, by been a finding of intent to mislead the fact by fact, argument by argument response majority vote of its members, may adopt a committee, the penalty has always to the Special Counsel’s Report. Respondent Statement of Alleged Violation if it deter- been either a Letter of Reproval, or the does not accept as true the asserted factual mines that there is reason to believe that a case has been dismissed against the in- statements and characterizations thereof be- violation has occurred.’’ (emphasis added). dividual involved. yond the facts contained in the Statement of Rules of the Committee on Standards of Offi- Alleged Violation admitted by Respondent’s cial Conduct, Rule 17(d). I might say here, we all know that Answer. It is relatively easy for an attorney, the Speaker has agreed to the pen- Given the false information which has been such as the Special Counsel, to piece to- disseminated regarding the violation, it is alties, but that does not mean that the gether testimony and documents, free from important to note that the Investigative agreement is a fair one. It does not the tests of cross-examination, hearsay lim- Subcommittee: mean that that is a penalty that we its and other evidentiary standards to assure did not charge Respondent with any viola- have to support. accuracy, and free from the boundaries of re- tion of U.S. tax law; Remember the speech by Teddy Roo- ality, to reach virtually any conclusion did not charge Respondent with intending sevelt called the man in the arena through clinical forensic reconstruction. The to deceive the Committee; Report is designed to put the facts before the did not charge Respondent with illegal ac- speech. He said that we can either Committee in the context of the real world grapple in the political arena, or we tivities or criminal tax violations; and so that the Committee can determine the ap- did not charge Respondent with money can be one of those ‘‘timid souls who propriate sanction, if any, for the violation, laundering. know neither victory nor defeat.’’ in the absence of an adversary process. Indeed, based on the standard applied by How much better it would be for us the Investigative Subcommittee, there is no today to have the victory of con- 1 Footnotes at end of document. reason to believe that any such allegations H180 CONGRESSIONAL RECORD — HOUSE January 21, 1997 are true. All statements to the contrary are serve the environment can count on our sup- into an opportunity society to help people not only false, but maliciously false, as es- port—in the form of endorsements, contribu- achieve productivity, responsibility and safe- tablished by the language of the Statement tions, publicity, and volunteer support. Can- ty so they can achieve prosperity and free- of Alleged Violation. didates who try to deceive the public by sup- dom so they can pursue happiness.’’ GDC THE REAL WORLD porting efforts to eliminate or weaken our 11363; HAN 2123. basic environment safeguards will be called Respondent further described the move- In the real world, Members of Congress ment as follows: ‘‘The challenge is not Re- necessarily confront many issues incidental to account for their actions. In 1996, concerned citizens have the opportunity to republican or Democrat, liberal or conserv- to their multiple responsibilities. Chapter 9 ative. The challenge is to our civilization’s of the House Ethics Manual itself addresses verse the tide of the last election. We have no choice, as the 21st century nears, but to survival.’’ GDC 1066; see also, GDC 10729. ‘‘Involvement With Official and Unofficial Jeffrey Eisenach, Project Director for the Organizations.’’ On page 307, the House Eth- send to Washington elected officials who have a genuine commitment to preserving Renewing American Civilization course, de- ics Manual state: ‘‘Members and employees scribed the movement as follows: ‘‘The po- and protecting the Earth. With your help, of the House need to distinguish carefully be- tential movement to renew American civili- the 1996 elections can set a new course for tween official and unofficial activities when zation and replace the welfare state is bigger our nation.’’ See Exhibit C for other similar they interact with private organizations.’’ than and in some ways different from the Re- home pages involving multiple entity orga- Also in the real world, Members interact publican Party.’’ Eisenach 2767. with a variety of organizations. Some are po- nizations with tax exempt affiliates. When questioned by Special Counsel, Re- litical action committees; some are chari- RENEWING AMERICAN CIVILIZATION MOVEMENT spondent states as follows: table organizations (Section 501(c)(3) enti- The movement to renew American civiliza- Q: ‘‘Is that [the movement] to be con- ties); and others are lobbying organizations tion had its genesis in Respondent’s belief ducted in a political framework? (Section 501(c)(4) entities.2 It is neither ille- that American civilization is decaying and A: ‘‘There is a political framework within gal nor inappropriate for Members to partici- must be renewed. Respondent believes that the movement. The movement itself is cul- pate as directors, officers or trustees of these the act of renewing American civilization in- tural, not political. Q: ‘‘Is the movement intended to be Repub- political action committees, charitable orga- volves far more than politics, politicians and lican identified? nizations and lobbying organizations. Ac- votes. It involves what is being taught in A: ‘‘No.’’ Gingrich July 17, 1996 Tr., p. 28. cording to The Exempt Organization Tax Re- local schools and colleges, what is heard on When Respondent was asked by Special view, ‘‘a review of Members’ 1988 financial radio and television and what happens in Counsel whether the goal of the movement disclosure forms . . . showed that 51 Sen- local clubs and organizations, in addition to was to recruit a Republican majority, he an- ators and 146 House Members were founders, what government and politicians are doing. swered as follows: officers or directors of tax-exempt organiza- Respondent believes that the renewal must A: ‘‘No. Just the reverse. That is the move- tions.’’ See, Exhibit A: The Exempt Organi- be cultural, societal, educational, economic, ment is large. You might or might not have zation Tax Review, Dec.–Jan. 1990, p. 680. In- governmental and political. More impor- a Republican majority within this move- deed, ‘‘five candidates in the 1988 presi- tantly, to achieve the degree of change nec- ment. If the movement succeeded without a dential contest had tax-exempt groups osten- essary to renew American civilization, there Republican majority, that would still be a sibly doing research and educational activi- would have to be a movement that tran- success. We thought, the times we talked ties in the months preceding their cam- scends any single vehicle of change. this out, the Republican majority was the paigns.’’ Id. Looking toward the 21st Century, Respond- most logical step in this country—— The Internal Revenue Service specifically ent developed an approach which he referred Q: ‘‘I understand that it may not result, contemplated such structures. As described to as the ‘‘five pillars’’ of renewing American but was it a goal? by the IRS: civilization: (1) quality; (2) technological ad- A: ‘‘It was a not a goal of this movement. ‘‘A number of IRC 501(c)(3) organizations vancement; (3) entrepreneurial free enter- It was a goal of my activities.’’ Gingrich have related IRC 501(c)(4) organizations that prise; (4) principles of American civilization; July 17, 1996 tr., pp. 49–50. conduct political campaign activities, usu- and (5) psychological strength. Based on It is against that backdrop that Respond- ally through a PAC (an IRC 527(f) separate these principles, Respondent sought to initi- ent and his advisors conceived of the Renew- segregated fund). So long as the organiza- ate a movement to replace the welfare state ing American Civilization course, one of sev- tions are kept separate (with appropriate and renew American civilization to occur at eral tools to be utilized in initiating this movement. See Exhibit D: chart illustrating, record keeping and fair market reimburse- every level of American society. Renewal in part, the dynamics of initiating the movement for facilities and services), the activi- would require the accomplishment of various ment. ties of the IRC 501(c)(4) organizations or of goals including the education of the general the PAC will not jeopardize the IRC 501(c)(3) population and creation of a majority of citi- THE RENEWING AMERICAN CIVILIZATION COURSE organization’s exempt status. 1992 IRS CPE, zens committed to reform, thereby spawning The Renewing American Civilization at 439.’’ activism; education of business leaders; and course was offered for academic credit at In addition, it is not unusual that the po- education of the media as to the ideals and over 20 colleges and universities across the litical action committees, charitable organi- concepts of renewal. In effect, Respondent United States, including the University at zations and lobbying organizations share the sought to create a national dialogue for re- Berkeley, Vanderbilt University, Clemson same address and operate out of the same of- form and a methodology by which citizen ac- University, Emory University, the Univer- fices. For example, the National Organiza- tivists could accomplish the stated goals of sity of Mississippi, Kansas State University, tion of Women (a section 501(c)(4)), National the movement. Colgate University, Auburn University, the Organization of Women Foundation Inc. (a Respondent envisioned many methods to University of South Carolina and Penn State section 501(c)(3)), and the National Organiza- initiate the movement through simultaneous University. FIC 00108; FIC 00148–49. The basic format of the Renewing Amer- tion of Women Political Action Committee efforts utilizing Respondent’s various public ican Civilization course consisted of ten lec- (a political action committee) all list as roles. First, as a Member of Congress and a ture topics, discussing various aspects of re- their address 1000 16th St. NW 700, Washing- member of the Republican leadership. Re- newing American civilization. Some key ele- ton, D.C. For a further listing of multiple, spondent envisioned utilizing the legislative ments of those ten lectures can be summa- affiliated Political Action Committees/Sec- process through speeches, such as special or- rized as follows: tion 501(c)(3) entities/Section 501(c)(4) enti- ders presented to the House, votes and legis- 1. ‘‘Understanding American Civiliza- ties sharing the same address, see Exhibit B lation. Second, as an educator, Respondent tion’’—America is the only country in a posi- and Appendix D. envisioned refinement of his message and de- tion to lead the world into a new age, and Finally, it is common for these multiple- livering it to foster healthy debate on the is- must strive to replace its welfare state with entity organizations to engage simulta- sues of reform. Third, as Chairman of an opportunity society, based on the five neously in activities that have political im- GOPAC, Respondent envisioned recruiting principles of American civilization: personal plications. For example, the Sierra Club op- and training Republican candidates. Re- strength, entrepreneurial free enterprise, the erates a section 501(c)(3) entity designated as spondent believes that every citizen, regard- spirit of invention and discovery, quality and Sierra Club Fund; a section 501(c)(4) entity less of partisan affiliation, should partici- the lessons of American history. designated as Sierra Club; a political action pate in the renewal, and that, through edu- 2. ‘‘Personal Strength’’—Personal strength committee designated as Sierra Club Com- cation in the principles of civilization, de- is a basic principal of American civilization mittee on Political Education; and a section bate will ensue and every citizen can become vital to establishing safety, family, work, 501(c)(3) entity designated as Sierra Club a pro-civilization activist to ensure that health and learning. Existing frameworks Legal Defense Fund. All of the entities list American civilization can be renewed. weaken personal strength by discouraging as their address 730 Polk Street, San Fran- During a December, 1992 meeting with work, undermining family and integrity and cisco, CA. The internet home page of Sierra GOPAC contributor Owen Roberts, Respond- discouraging self-reliance. Club reflects its broad-ranging purposes, in- ent described the movement as 3. ‘‘Entrepreneurial Free Enterprise’’—The cluding those which are political. The home ‘‘articulat[ing] the vision of civilizing hu- role of the entrepreneur is vital to American page states as follows: manity and recivilizing all Americans.’’ GDC civilization. Bureaucratic credentialism sti- ‘‘The Sierra Club has played an increas- 11363. He sought to: ‘‘[d]efine, plan and begin fles entrepreneurial free enterprise, and gov- ingly active role in elections in recent years. to organize the movement for civilization ernment regulation distorts the market’s Candidates who can be counted on to pre- and the effort to transform the welfare state ability to reinforce success. January 21, 1997 CONGRESSIONAL RECORD — HOUSE H181 4. ‘‘Spirit of Invention and Discovery’’— coming his injuries in Vietnam; Congress- ate a dynamic forum for these inter- The welfare state cripples progress through man John Lewis about the role of personal changes.’’ July 28, 1993 Memo from Mescon to bureaucracy, litigation and taxation. A pro- strength in the civil rights movement; Na- Faculty Colleagues, FIC 00185. spirit of invention and discovery America tionally-recognized teacher Marva Collins on Many of the students who took the Renew- will create a better future through better teaching personal strength; Supreme Court ing American Civilization course for aca- ideas. Justice Clarence Thomas’ journey from Pin- demic credit at Reinhardt College, one of the 5. ‘‘Quality and Deming’s Profound Knowl- point, Georgia to the Supreme Court; and A host sites, were highly enthusiastic about edge’’—With a culture of quality, Americans story about the Paralympics. GDC 2619. the course and regarded it as one of the most can compete against anyone in the world. During the course, Respondent also promi- challenging classes of their college careers. Consumers define value. To improve results, nently featured Franklin D. Roosevelt, John See Reinhardt College Student Evaluation you must improve the process that generates F. Kennedy, Rev. Martin Luther King, Jr. Forms, GDC 12454–12546. Some students them. People want to do a good job. Every and Jimmy Carter in his discussions and vid- viewed Renewing American Civilization as person is part of a larger system. Continual eotape presentations. Respondent discussed an excellent course for people with a ‘‘true learning is the basis for continual improve- both Democrats and Republicans favorably. interest in history,’’ while other students ment. In developing the Renewing American Civ- saw it as ‘‘really a business course.’’ Id. at 6. ‘‘Lessons of American History’’—History ilization course, Respondent invited Mem- 12472. Another student commented, ‘‘I really is a collective memory and a resource to be bers of Congress from both parties to con- was ready to argue political points, but I’m learned from and used. America is excep- tribute ideas to the course. WGC 07084. Prior glad that [Respondent] stayed away from tional and its history teaches us how excep- to the time Respondent taught the course, those.’’ Id. One student was ‘‘disappointed’’ tional. The religious and social tenets of pu- he described his course development to the because he or she did not ‘‘learn more about ritanism are diffused throughout American Committee as follows: politics.’’ Id. at 12499. Another student wrote, values today. ‘‘I expect that we will invite many people ‘‘this has not been political grandstanding.’’ 7. ‘‘Economic Growth & Job Creation’’— to comment on the content of the course, at Id. at 12517. One student wrote, ‘‘it had no The welfare state’s despised low-paying job every stage of the four-year process. Com- politics whatsoever.’’ Id. at 12487. is the entrepreneur’s opportunity. It is not mentators will include people involved in Although the Renewing American Civiliza- who you are today, it is who you want to be state and local government, including Con- tion course was promoted among a wide tomorrow that counts in America. A success- gressional staff (my own and others). These array of Republican organizations, non-par- ful America will have the highest value commentators will also include members of tisan or Democratic-oriented organizations added jobs with the greatest productivity both major political parties. (For example, I were also solicited, including the American leading to the greatest take home pay and have recently talked with both Pat Moy- Political Science Association. Of the 36 con- the greatest job security. nihan and John Lewis, who have agreed to tributors to the course, only 14 were associ- 8. ‘‘Health and Wellness’’—Our challenge is serve in this capacity.)’’ Gingrich July 21, ated with GOPAC or its efforts. GDC 2621. to create a vision of a healthy American fo- 1993 letter to Rep. McDermott. Respondent only mentioned four of the 36 cusing on lower costs, higher quality, more Respondent later described his course de- contributors in the course lectures. choices and greater access. The five prin- velopment as follows: One course memorandum reflected Re- ciples of American civilization should help ‘‘I have invited many people in many back- spondent’s firm desire to maintain the us brainstorm a better way of life. grounds to submit material for consideration course as a non-partisan, apolitical endeav- 9. ‘‘Saving the Inner City’’—American re- and to assist in reviewing the course. These or, stating as follows: form movements have emerged quickly and include President Clinton and Secretary of ‘‘Obviously, we also need to design a proc- have had powerful impacts. Saving the inner Labor Robert Reich.’’ Gingrich September 7, ess which is legally appropriate and as im- city can be accomplished through individual, 1993 letter to Barry Phillips, Chairman of the mune as possible from criticism from those decentralized efforts. The vicious circle of Georgia Board of Regents, GDC 2607. who oppose what we are doing. In particular, the welfare state should be replaced with the Several prominent scholars reviewed the we need to ensure that Kennesaw State Col- virtuous circle of American civilization to content of the Renewing American Civiliza- lege and Kennesaw State College Foundation help people create new hope and new oppor- tion course. David King, an assistant profes- resources are not used to help partisan orga- tunities. sor of public policy at Harvard University’s nizations (e.g., GOPAC) or political can- 10. ‘‘Citizenship for the 21st Century’’— John F. Kennedy School of Government, con- didates (e.g., Newt).’’ Aug. 25, 1993 Eisenach Citizenship may be defined as the duties and cluded that the course is ‘‘not partisan. . . . Memorandum, WGC 07080. obligations, rights and responsibilities nec- It touts conservative ideas, but those ideas Much has been written regarding GOPAC’s essary to maintain community. The genius are never explicitly linked to the Republican involvement in the Renewing American Civ- of America lies in liberating each citizen to Party.’’ Peter Applebome, ‘‘Educators Di- ilization course. The critical inquiry in this seek community and define citizenship in vided on Course by Gingrich,’’ New York regard is whether the Respondent took steps the broadest possible way. Times, Feb. 20, 1995 at A12. Professor King to maintain the division of capacities be- These lectures would also include a list of also concluded it is impossible to teach a po- tween his capacities as a Member, a teacher suggested readings to allow for a more com- litical science or history course ‘‘without in a section 501(c)(3) setting and a partisan plete explanation of the issues covered. someone interpreting what you say in par- politician in connection with a political ac- These readings included works written by tisan terms.’’ Kathy Alexander, ‘‘Gingrich’s tion committee. Whether those efforts were Democrats such as Al Gore and Max Cleland, Notorious Course at End: For Now Students completely successful necessarily depended as well as works by Alvin Toffler, a Futurist. Praise Teachings and Teacher as he Takes on others. The Respondent’s activities, how- During each class section, Respondent would Two-Year Break,’’ Atlanta Journal-Constitu- ever, reflect that he attempted repeatedly to lecture for his two-hour period and the fac- tion, Mar. 11, 1995, at C1. ensure that his partisan and non-partisan ac- ulty representative or site representative The vast majority of those persons who at- tivities were properly segregated. would then make a presentation involving tended the course, or were otherwise associ- For example, as reflected in the February group discussion which Respondent did not ated with the course, found it to be academic 15, 1993 Agenda to a GOPAC planning session, control. and non-partisan. For instance, Dr. Tim Respondent viewed the Renewing American Respondent himself was, prior to election Mescon, dean of the business school at Ken- Civilization course as separate and apart to Congress in 1978, a professor of history nesaw State College where the course was from GOPAC. On the agenda, item I. is ‘‘Gen- who served on the faculty of West Georgia first taught, characterized the philosophical eral Planning/Renewing American Civiliza- College for eight years. He was awarded a approach of the Renewing American Civiliza- tion’’ and item II. is ‘‘Political/GOPAC Is- B.A. from Emory University in 1965 and a tion course as follows: sues.’’ JR 645. Ph.D. in European History from Tulane Uni- ‘‘This course . . . is by no means con- Finally, Nancy Desmond, the Renewing versity in 1971. structed as a political platform or forum for American Civilization Course Coordinator, The course itself was taught at Kennesaw unidimensional ideologies. . . . Today, citi- stated Respondent’s position succinctly State College, a senior college within the zens of the United States are immersed in when she wrote to Barry Hutchison of University System of Georgia, and, later, at conversations pertaining to reform. . . . Re- Friends of Newt Gingrich (‘‘FONG’’) on July Reinhardt College, a private, accredited col- gardless of political philosophies, this coun- 11, 1993: lege located in Waleska, Georgia. try is engaged in lively debate over the need ‘‘In a recent conversation with Newt, he Periodically during course lectures, Re- to reform and the methodology required to expressed the concern that my involvement spondent made references to individuals, en- implement change. This course has been de- in both the Congressional Club and the Re- tities and companies which in their own way signed by contributors from various political newing American Civilization course at Ken- exemplified his notion of American platforms, socioeconomic backgrounds, and nesaw might suggest to some that there is a exceptionalism. A total of 46 videotape in- academic and professional institutions. The possible connection between the course and serts—typically three to four minutes in intention is to incubate dialogue, discourse the campaign. As you know, Newt is ada- length—were used in the course to illustrate and discussion all focused on renewing Amer- mant about keeping the two separate and various points. GDC 2619. The inserts from ican civilization. . . . Kennesaw State stu- wants it to be clear to everyone that the the ‘‘Personal Strength’’ lesson are typical dents should be encouraged to participate in course is, in no way, connected to his politi- of these: Former Georgia Secretary of State pensive discussions on such timely issues, cal campaign. The firmness of this resolve on and now U.S. Senator Max Cleland on over- and it is my intention that this course cre- his part and the absolute commitment to H182 CONGRESSIONAL RECORD — HOUSE January 21, 1997 maintaining a clear and unequivocal separa- clear answer, there could be no knowing vio- tions: Hearings before the Subcommittee on tion between the course and his campaign lation of law. Oversight of the House Committee on Ways leave me no alternative but to withdraw Although there appears to be no precedent and Means, 100th Cong., 1st Sess. 19–20, 423 from my volunteer post with the Club.’’ PFF for it,4 the issue then becomes whether there (1987) (Statements of Bruce Hopkins, Baker 38289. is a violation when a Member is actually & Hostetler and the United States Catholic Two tax-exempt organizations, Kennesaw aware that the law is unsettled, but nonethe- Conference). In offering the amendment, State College Foundation (‘‘KSCF’’) and less proceeds with the activity with knowl- Senator Johnson stated that the purpose of Progress & Freedom Foundation (‘‘PFF’’), edge that a public controversy may ensue, the amendment was to ‘‘den[y] tax exempt collected the funding for the Renewing resulting in discredit to the House of Rep- status to not only those people who influ- American Civilization course at Kennesaw resentatives. In this case, the hindsight con- ence legislation but also to those who inter- State College and Reinhardt College, respec- clusions of the tax counsel who appeared be- vene in any public campaign on behalf of any tively. Regarding KSCF, Respondent taught fore the Investigative Subcommittee are candidate for any public office.’’ 100 Cong. the course at Kennesaw. The KSCF was the that any counsel presented with the facts al- Rec. 9604 (1954). leged in the Statement of Alleged Violation funding repository for activities at the Ken- Section 1.501(c)(3)–1 of the Income Tax Reg- ‘‘would have advised that it not be conducted nesaw campus, and it existed before Re- ulations (‘‘the Regulations’’) marked a re- under the auspices of an organization exempt spondent had any relationship to the college. treat from the ‘‘exclusively for’’ language of from taxation under section 501(c)(3) of the In relation to PFF, Jeffrey Eisenach de- section 501(c)(3) by providing that ‘‘[a]n orga- Internal Revenue Code.’’ (S.A.V., T 15,40). scribed Respondent’s lack of involvement nization will be regarded as ‘operated exclu- After two years of public controversy driven with PFF as follows in his Attachment to his sively’ for one or more exempt purposes only largely by interests totally unrelated to the 1995 Statement: if it engages primarily in activities which ‘‘[Respondent] is not and has never been a tax-exempt status of the organizations, the accomplish one or more of such exempt pur- board member, officer or employee of the tax attorney’s position is a relatively obvi- poses specified in section 501(c)(3). An orga- foundation. He was not aware of plans to cre- ous conclusion for attorneys operating with nization will not be so regarded if more than ate the foundation until after they were well the benefit of hindsight. Respondent’s con- an insubstantial part of its activities is not advanced; did not participate in key plan- duct must, however, be evaluated in the real in furtherance of an exempt purpose.’’ 26 ning meeting leading to its creation; has world, real time context of what was the C.F.R. 1.501(c)(3)–1(c)(1). Thus, contrary to never served in any official capacity with the generally accepted practice in 1993 when the the language of section 501(c)(3), the IRS has Foundation; did not review or participate in course was established. indicated that conduct not consistent with the development of its application to the IRS THE USE OF CHARITABLE FUNDS IN SUPPORT OF articulated exempt purposes will not jeop- for tax exempt status or other key founding NONPARTISAN POLITICAL EDUCATION WAS AN ardize exempt status as long as such conduct documents; did not participate in the selec- ACCEPTED PRACTICE IN 1992 AND 1993 constitutes only an ‘‘insubstantial part’’ of tion of or make recommendations for mem- First, the Respondent’s activities were not its overall activities. Id. bership on its founding board of directors; inconsistent with clear federal tax law in the The Regulations further provide that an was not consulted on the naming of new opinion of all tax practitioners at the rel- entity will not be regarded as being operated board members; has not, with the exception evant time. The practice in the real world at exclusively for exempt purposes if it satisfies of his Renewing American Civilization the time was that the conduct engaged in by the IRS’ definition of an ‘‘action’’ organiza- project, participated in fundraising activi- Respondent was in accord with the conduct tion. 26 C.F.R. 1.501(c)(3)–1(c)(3). An ‘‘action’’ ties; and, he has always understood the of many well-advised contemporary chari- organization is defined as one that devotes Foundation to be an independent entity, cre- table educational entities, the comment of ‘‘a substantial part of its activities [to] at- ated for the non-partisan research and edu- legal scholars, and the practice of other tempting to influence legislation by propa- cational purposes stated in its application Members of Congress. for tax exempt status and subsequent IRS Nonprofit organizations, to qualify for tax ganda or otherwise.’’ 26 C.F.R. 1.501(c)(3)– filings.’’ GDC 12176. exempt status, must satisfy the basic cri- 1(c)(3)(ii). Likewise, ‘‘[a]n organization is an ‘action’ organization if it participates or in- ‘‘FAILING TO SEEK AND FOLLOW LEGAL ADVICE’’ teria established by section 501(c)(3) of the Internal Revenue Code (‘‘IRC’’ or ‘‘the tervenes, directly or indirectly, in any polit- The Statement of Alleged Violation alleges ical campaign on behalf of or in opposition that, ‘‘by failing to seek and follow the legal Code’’), regulations promulgated thereunder, judicial interpretation of the law and its reg- to any candidate for public office.’’ 26 C.F.R. advice’’ or tax counsel to ensure that the ac- 1.501(c)(3)–1(c)(3)(iii). tivities described in the Statement of Al- ulations, Internal Revenue Service (‘‘IRS’’) leged Violation ‘‘were in accordance with Revenue Rulings, IRS Letter Rulings, tax APPLICATION OF REVENUE RULINGS APPLYING section 501(c)(3) of the Internal Revenue notices, and the various other means such as 501(c)(3) AND ITS REGULATIONS Code’’, Respondent’s conduct constituted a IRS press releases and announcements by violation of Rule 43(1) of the Rules of the which citizens can attempt to anticipate IRS In 1978, the IRS issued a Revenue Ruling United States House of Representatives. interpretation of their conduct under the revoking a prior such ruling to hold that ‘‘[c]ertain ‘voter education’ activities con- (S.A.V., T 52–53). It is important to note that, law. contrary to the statements of some, the In- SECTION 501(c)(3) AND THE REGULATIONS ducted in a nonpartisan manner by an orga- vestigative Subcommittee did not find that PROMULGATED THEREUNDER nization recognized as exempt under section 501(c)(3) of the Code will not constitute pro- Respondent’s activities violated federal tax In essence, section 501(c)(3) of the Internal hibited political activity disqualifying the law or caused the tax-exempt organizations Revenue Code provides that entities must organization from exemption.’’ Rev. Rul. 78– to violate their tax exempt status. The fact satisfy several basic criteria to qualify for 248, 1978–1 C.B. 154. According to the IRS rul- is that a violation of law may not, in and of exempt status. First, the entity must be ‘‘or- ing, the determination of whether an organi- itself, be a violation of the Code of Official ganized and operated exclusively for’’ one or zation is participating or intervening in a Conduct. As noted on page 12 of the Ethics more of several enumerated charitable, reli- political campaign as proscribed by regula- Manual, ‘‘[d]uring the floor debate preceding gious or educational purposes,5 second, ‘‘no tion 1.501(c)(3)–1(c)(3)(iii) ‘‘depends upon all the adoption of the Code, Representative part’’ of the net earnings of the entity may of the facts and circumstances of each case.’’ Price of Illinois, Chairman of the Select inure to the benefit of any private share- Id. Revenue Ruling 78–248 then sets forth Committee on Standards of Official Conduct, holder or individual; third, ‘‘no substantial four hypothetical ‘‘situations’’ describing ac- rejected the notion that violations of the law part of the activities’’ of that entity may be tivities which the IRS deemed to be either are simultaneous violations of the ‘‘carrying on propaganda, or otherwise at- permitted or prohibited under 501(c)(3). Ulti- Code . . .’’ tempting to influence legislation’’; and mately, the factual analysis provided by the Certainly, a knowing violation of law could fourth, the entity must not ‘‘participate in, IRS with respect to each situation was constitute conduct that did not reflect or intervene in . . ., any political campaign whether, under the specific facts of the hypo- creditably on the House of Representatives on behalf of (or in opposition to) any can- thetical, the activities ‘‘evidenced a bias or in violation of Rule 43(1). Here, there has didate for public office.’’ IRC § 501(c)(3). been no finding of a knowing violation of The legislative history of the campaign preference’’ with respect to the views of the law.3 In fact, such a finding would be directly intervention rule reflects the difficulties entity towards issues, a candidate or a group contradicted by the findings in the State- practitioners have encountered in applying of candidates. Id. ment of Alleged Violation itself. these provisions. This provision of the Code Two years later, the IRS applied Revenue The Statement of Alleged Violation notes was added to the federal tax law when then- Ruling 78–248 to conclude that an entity’s that tax counsel retained by the Investiga- Senator Lyndon B. Johnson offered the pro- publication of a newsletter reporting Con- tive Subcommittee and tax counsel retained vision by way of a floor amendment to the gressional voting records did not violate the by Respondent disagree regarding whether Revenue Act of 1954 without congressional entity’s tax exempt status. Rev. Rul. 80–282, the activities at issue constitute a violation hearings out of concern that funds provided 1980–2 C.B. 178. The IRS so held, notwith- of the tax-exempt organizations’ section by a charitable foundation had been used to standing its conclusion, that ‘‘the format 501(c)(3) status. The only clear conclusion finance the campaign of a primary opponent. and content of the publication are not neu- from the findings and the testimony before B. Hopkins, The Law of Tax-Exempt Organi- tral, since the organization reports each in- the Investigative Subcommittee is that zations, p. 327 (6th ed. 1992); Lobbying and cumbent’s votes and its own views on se- there is no clear answer. In the absence of a Political Activities of Tax-Exempt Organiza- lected legislative issues and indicates January 21, 1997 CONGRESSIONAL RECORD — HOUSE H183 whether the incumbent supported or opposed precedential authority.’’ ‘‘ABA Tax Section whether prohibited political activities have the organization’s view.’’ Id. The IRS based Members Suggest Exempt Organization occurred. This has created a string of prece- its ruling on a factual conclusion that ‘‘the Areas in Need of Precedential Guidance,’’ 94 dents applying the general rule to particular organization will not widely distribute its Tax Notes Today, 207–14 (Oct. 21, 1994). Celia fact patterns, without any unifying principle compilation of incumbents’ voting records Roady is presented first on the list of those being stated. We believe that it will be sig- . . . [and that n]o attempt will be made to upon whom principal authority for the prep- nificantly simpler for practitioners to advise target the publication toward particular aration of the memorandum rested and she is clients about, and for organizations to com- areas in which elections are occurring nor to listed as the Committee’s ‘‘Contact Person’’ time the date of publication to coincide with on the memorandum. Id. In that memoran- ply with, the statutory rule if the IRS devel- an election campaign.’’ Id. Accordingly, the dum to the Department of the Treasury, Ms. ops a concrete, unifying definition for politi- IRS opined, the issues presented in Revenue Roady observed: cal intervention, just as it has done for di- ruling 80–282 presented sufficient factual dis- ‘‘During the past two decades, there has rect and grass roots lobbying activities.’’ tinctions from the hypothetical prohibited been significant growth in our country’s tax- ABA Committee on Exempt Organizations situations set forth in Revenue Ruling 78–248 exempt sector and a corresponding prolifera- Recommends ‘‘Reasonable Person’’ Standard to permit the IRS to conclude that this enti- tion in the number of new legal issues con- for Determining Whether a Charity Partici- ty’s proposed activities, ‘‘in the manner de- fronting tax-exempt organizations. Signify- pates in Political Activities, 95 Tax Notes scribed above, will not constitute participa- ing this development, the number of tax-ex- tion or intervention in any political cam- empt organizations included in the Cumu- Today 53–11, Mar. 17, 1995. paign within the meaning of section lative List has increased from approximately Not surprisingly, therefore, in light of this 501(c)(3).’’ Id. 806,000 in 1974 to approximately 1,083,000 in recognized lack of guidance from the IRS, EFFECT OF THE IRS’ FACT-BASED ANALYSIS ON 1994. Many of these organizations * * * have the public record is replete with examples, in PUBLIC BEHAVIOR adopted evermore complex corporate struc- the time period leading up to the organiza- tures, and many have become involved in As a consequence of the IRS’ indications tion of the renewing American civilization that it would apply fluid, fact-specific analy- new investment activities made possible by course of charitable entities—entities that sis to charitable efforts to educate the public the evolution of financial markets. As tax- on political matters, the late 80’s and early exempt organizations have grown in number are well represented and advised as to the 90’s marked a period of wide-ranging opinion and ventured into new areas, their activities current state of the law—participating in the among tax practitioners as to the extent have raised numerous federal tax law ques- political arena unmolested by the IRS. For that political education by charitable enti- tions that are not adequately addressed by example, in 1986 and 1987, the IRS conducted ties would be permitted by the IRS. Specifi- existing precedential authorities. Answering a ten-month review of a tax exempt edu- cally, this period marked an era when tax ex- these questions has proved very difficult be- cational entity known as ‘‘Project Vote,’’ a empt entities were being called upon by so- cause at the same time as this expansion of national voter registration campaign that organizations and issues has been taking phisticated practitioners to educate and mo- enrolled more than 500,000 potential voters. tivate the public on an ever-widening range place, the amount of precedential guidance Critics of Project Vote’s activities alleged of issues. As would be expected, the legal lit- issued by the Internal Revenue IRS has de- erature of this period reflects the lack of creased dramatically. that the entity’s true objective was to accomplish the partisan objective of increasing guidance provided by the IRS with respect to * * * * * political education by tax exempt entities. ‘‘. . . Issuing precedential authority on the the Democratic vote. After reviewing See e.g., Lobbying and Political Activities of items described below that have already Project Vote’s activities, however, the IRS Tax-Exempt Organizations: Hearings before been the subject of non-precedential IRS concluded that the organization complied the Subcommittee on Oversight of the House guidance would greatly assist tax-exempt or- with the nonpartisan requirements of its Committee of Ways and Means, 100th Cong., ganizations in complying with the law. tax-exempt status. ‘‘Raising Money to Reg- 1st Sess. 6 (Opening remarks of Chairman ‘‘PUBLIC CHARITY ISSUE—POLITICAL ACTIVITIES ister More Voters,’’ The Exempt Organiza- Pickle) (‘‘I am concerned that the public sees ‘‘One of the most important areas in which tion Tax Review, p. 679 (Dec.–Jan. 1990); 7 see and hears a steady stream of media reports additional precedential guidance is needed is also, ‘‘Old Softie: Alan Cranston’s Soft about abuses in this area, and the IRS seems clarification of the prohibition on political Money Machine; Campaign Fund Ethics,’’ to be taking little or no action. The public activities by section 501(c)(3) organiza- The New Republic, p. 17 (Dec. 11, 1989) gets the impression that the Internal Reve- tions. . . . Illustrative of the political activi- (‘‘Though Project Vote mixed contributions nue Service is just looking the other way.’’); ties issue in the first category is the ques- from labor, corporations, foundations, and Maxwell Glen, ‘‘Battle Looming over Par- tion of when will the acts and statements of individuals, some of which may have been tisan Activities of Tax-Exempt Nonprofit Or- the religious organization’s minister be motivated by partisan goals, the IRS found ganizations,’’ The National Journal, p. 2294 treated as the acts and statements of the re- its voter registration activities to be per- (Dec. 1, 1994) (‘‘In fact, since the early 1970s, ligious organization for purposes of deter- fectly legal.’’). Thus, it is not surprising when it was accused of harassing Nixon Ad- mining whether the organization has vio- that, as early as 1984, charitable institutions ministration opponents, the IRS has seldom lated the prohibition against political cam- which consulted with tax counsel abandoned policed the nonprofit sphere for political par- paign activities contained in section 501(c)(4) affiliates (which are expressly per- tisanship, tax specialists say. ‘What you see 501(c)(3). The statement issued by Jimmy mitted by the Code to adopt partisan politi- now is a testing,’ and Washington lawyer Swaggart Ministries and endorsed by the cal positions) by merging those affiliates’ ac- Thomas A. Asher, ‘because the IRS has been Service when Ministries entered into a clos- remarkably reticent on the subject of the tivities into 501(c)(3) entities as a means of ing agreement with the Service articulated a reducing 501(c)(4) record keeping require- line between charity and the partisan activ- clear and reasonable position on this issue. ity of charitable organizations.’’); Frances R. ments. See e.g., Glen, at p. 2294 (Dec. 1, 1994) It would be helpful to know as well whether (‘‘‘I’ve had more than one client get rid of its Hill, ‘‘Newt Gingrich and Oliver Twist: Char- that position would apply for purposes of itable Contributions and Campaign Fi- C–4 [affiliate] by merging it into [the cli- section 4955. As noted, the Subcommittee re- ent’s] C–3,’ said Gail Harmon, an attorney nance,’’ Tax Notes, p. 237, 238 (Jan. 9, 1995) port also addresses a number of other ‘‘Cat- who represents about 30 nonprofit organiza- (‘‘While [the prohibition against participa- egory One’’ issues on which precedential tions, including NARAL. ‘The fact of having tion in political campaigns] is absolute, it is guidance would be quite helpful.’’ Id. far from clear what activity it prohibits In a subsequent document submitted by to keep separate records does discourage’ short of direct endorsement of a particular Ms. Roady’s A.B.A. Committee on Exempt having both.’’). candidate by an official speaking on behalf Organizations (for which Ms. Roady was Historically, the IRS’ reticence to con- of the organization. In all other cases, the again designated as the ‘‘Contact Person’’) clude that political activity does not violate law offers little guidance and perhaps even to the Commissioner of the IRS on February the political intervention doctrine is not less restraint.’’). 21, 1995, Ms. Roady and the American Bar As- limited to political education activities. See, Apparently, this concern among leading sociation Section on Taxation observed: tax practitioners regarding the lack of guid- ‘‘Our most serious concern is that the IRS e.g., Wimmer, ‘‘Curtailing the Political In- ance provided by the IRS with respect to po- is facing a crisis of credibility with respect fluence of Section 501(c)(3) Tax Exempt Ma- litical education by tax exempt entities was to the Section 501(c)(3) political prohibition. chines,’’ 11 Va. Tax Rev. 605, 606 (1992) shared by Celia Roady,6 the tax expert re- Despite some publicized enforcement ac- (‘‘Many of the groups that successfully op- tained by the Special Counsel to testify in tions, such as the Jimmy Swaggart Min- posed [Judge Robert] Bork’s nomination to favor of sanctioning Respondent. On Septem- istries settlement, there is still widespread the high court were section 501(c)(3) tax-ex- ber 28, 1994, the Exempt Organizations Com- confusion as to what constitutes ‘participa- empt organizations, entities prohibited from mittee of the American Bar Association’s tion’ or ‘invervention’ in a political cam- intervening in any political campaign and Section on Taxation presented a memoran- paign. As a consequence, compliance within prohibited from carrying on substantial ac- dum to Mr. Leslie B. Samuels, Assistant Sec- the charitable sector is highly uneven. Some retary for Tax Policy at the Department of organizations openly flout the rule; others tivities designed to influence legislation. the Treasury, suggesting clarification of nu- are reluctant to engage in legitimate edu- These organizations took full advantage of merous issues facing tax practitioners under cational activities during an election period. the ‘particularly murky’ rules governing section 501(c)(3) for which the Exempt Orga- * * * * * how tax-exempt organizations could influ- nizations Committee believed there ‘‘cur- ‘‘Up to now, it appears that the IRS has ence the Senate’s confirmation of judicial rently is no authority, or there is unclear been using a ‘‘smell’’ test to determine nominations.’’). H184 CONGRESSIONAL RECORD — HOUSE January 21, 1997 As a consequence of the IRS’ lack of guid- els of voter participation among minorities, ter’’), in the Spring of 1990, Mr. Callaway re- ance in this arena, participation in chari- low-income people, or other politically dis- vived ALOF as a means of sponsoring the table education activities by Members of advantaged groups. American Citizens’ Television (‘‘ACTV’’) pro- Congress was commonplace in the time lead- ‘‘However, those rulings do not appear to gram. At the time, there was only $486.08 in ing up to the organization and formation of contemplate activities benefiting an under- the ALOF bank account. Recognizing that the renewing American civilization course. represented group of POTENTIAL CAN- ACTV’s goal of increasing community in- For example, a National Journal review of DIDATES. As a consequence, it is not clear volvement and citizen understanding of gov- Members’ 1988 financial disclosure form re- whether a charity which runs an educational ernment and democracy presented a logical vealed that 51 Senators and 146 House Mem- program to train individuals in political extension of ALOF’s original educational bers were founders, officers or directors of campaign skills must offer it to the general mandate to motivate people and get them in- tax-exempt organizations. The Exempt Orga- public, rather than to any limited group. Our volved in their community, Mr. Callaway of- nization Tax Review, p. 680, Dec.–Jan. 1990; impression is that such a program must be fered ALOF as ACTV’s sponsor. Callaway see also ‘‘Members of Congress Insist Foun- conducted in a thoroughly nonpartisan man- Letter, p. 1–2. dations Aid Causes, Not Politics,’’ Washing- ner with respect to recruitment of instruc- ACTV, like a project previously run by ton Post, February 22, 1990, at A21 (identify- tors and students, curriculum, placement of GOPAC known as ‘‘American Opportunities ing tax exempt groups associated with Mem- graduates, and all other aspects of operation. Workshop’’ (‘‘AOW’’), was a self-described bers of Congress). In 1993 Financial Disclo- Existing precedents, such as the American non-partisan project ‘‘based on the three ten- sure Forms, at least 93 Members of Congress Campaign Academy decision, speak more to ants [sic] of Basic American Values, Entre- were founders, directors, officers or trustees what is prohibited than to what is permitted, preneurial Free Enterprise, and Techno- of at least 210 tax-exempt organizations, in- and thus offer little helpful guidance on this logical Progress and involved the recruiting cluding at least 109 section 501(c)(3) entities. score. of activists to set up local workshops around See, Financial Disclosure Reports of Mem- ‘‘We urge the IRS to state explicitly that the broadcast to recruit people to the citi- bers of the United States House of Rep- charitable organizations are permitted to or- zens’ movement.’’ (S.A.V., T9). Respondent resentatives of the 105th Congress. Likewise, ganize and operate certain types of campaign participated in two ACTV broadcasts pro- five candidates in the 1988 Presidential elec- schools that serve indeterminate groups of duced by ALOF; aired on July 21, 1990 and tion contest employed tax-exempt groups to persons who have been under-represented in September 29, 1990. Id., T10. perform research and educational activities the political life of our society. This would Mr. Callaway has several times expressly in the months preceding their campaigns. be consistent with the current IRS position stated that ‘‘Dan Swillenger [sic], our attor- The Exempt Organization Tax Review, p. 680 on nonpartisan, voter-oriented educational ney, approved ACT as an appropriate activ- (Dec.–Jan. 1990). activities. ity for a 501 c) 3) foundation and in accord The prevailing attitude among tax special- ‘‘We think that IRS approval of candidate with the ALOF charter. I gave explicit in- ists in the early 90’s is encapsulated in the campaign schools benefiting politically dis- structions that there be no politics involved comments of Washington fund-raiser Jan advantaged groups, like its long-standing ap- in the ACT programs and to the best of my Scott Brown as reported in the National proval of voter participation activities di- knowledge there was none.’’ Callaway Let- Journal: ‘‘Every nonprofit puts a Congress- rected at a variety of charitable and other ter, p. 2–3. man on their committee. That’s the first diverse groups, would be consistent with the The statements made in the Callaway Let- thing I think of with a nonprofit client—how general definition we propose. In essence, the ter were repeated in an interview that Mr. can I work in some political angle? That’s IRS has embraced voter registration and Callaway gave to the Boston Globe. Accord- the name of the game in town.’’ Maxwell similar activities as a valuable public serving to that article, ‘‘Callaway stressed that he and Gingrich Glen, ‘‘Battle Looming over Partisan Activi- ice, recognizing that low voter participation had been told by a lawyer that it was legal ties of Tax-Exempt Nonprofit Organiza- rates seriously undermine the functioning of because the shows were ‘‘educational,’’ not tions,’’ The National Journal, p. 2294 (Dec. 1, our democracy. Therefore, a charity should political. 1994) be able to develop a voter education program Indeed, the criticism of the Special Coun- directed at under-represented sectors of our * * * * * sel’s tax expert, Ms. Roady, of Respondent’s society without violating the political prohi- ‘‘According to Callaway, Gingrich and his activities on this issue appears disingenuous bition, so long as it makes no suggestion to associates looked to a nonprofit corporation at best. In February of 1995, the Exempt Or- anyone on how to vote or what office to that could accept tax-deductible donations. ganizations Committee of the American Bar seek. In other words, voter participation pro- In contrast, contributions to political action Association—for which Ms. Roady was iden- grams (and, we believe, disadvantaged-can- committees are not deductible. tified as the Committee’s ‘‘Contact Per- didate education programs) have an inherent ‘‘Callaway thought it would take too long son’’—requested that the Internal Revenue educational value (‘‘some other reasonable to get IRS approval to set up a new nonprofit Service formally approve of activity under explanation’’) that outweighs any implica- corporation to fund Gingrich’s television existing precedent virtually identical to Re- tion that they were undertaken for a prohib- shows, so he revived the Lincoln Foundation, spondent’s Renewing American Civilization ited political purpose (‘‘to improve or dimin- which had been dormant for years. course; the only difference being that Ms. ish’’ someone’s chances of getting elected). ‘‘Callaway said Daniel Swillinger, a Roady’s expressed preference would be that So long as the program is not a disguised ef- GOPAC lawyer, told them the foundation’s it be only ‘‘politically disadvantaged fort to promote a candidate, party, or other charter allowed it to pay for Gingrich’s tele- groups,’’ rather than the American citizenry private interest (as in the American Cam- vision show.’’ Ex-foundation Director Says as a whole, that is encouraged to participate paign Academy case), simply providing peo- Gingrich OK’d Use of Funds, The Boston more actively in the grass-roots political ple with the tools to participate in the polit- Globe, Nov. 22, 1996, at A1. Of the two tax experts to appear for the process: ical process should not violate the Section ‘‘One could argue that the general rule we purposes of Preliminary Inquiry before the 501(c)(3) prohibition.’’ ABA Committee on propose appears to be overbroad, since it Subcommittee, one opined that the described Exempt Organizations Recommends ‘‘Rea- states that a 501(c)(3) organization cannot in- activity would not violate ALOF’s status sonable Person’’ Standard for Determining tentionally help ANY group of people to seek under section 501(c)(3). The expert, retained Whether a Charity Participates in Political public office. What if the group is an indefi- by the Special Counsel, opined to the con- Activities, 95 Tax Notes Today 53–11, Mar. 17, nite class of persons that has been system- trary. That same expert, Celia Roady, is the 1995. atically under-represented in elective office, same attorney who prepared a memoran- such as African-Americans or people with ABRAHAM LINCOLN OPPORTUNITY FOUNDATION dum 8 to the Department of the Treasury be- disabilities? Why couldn’t a charity operate (‘‘ALOF’’) moaning the IRS’s lack of guidance available a campaign training school to assist, for in- In 1984, Colorado Republican Party Chair- to practitioners called upon to provide coun- stance, Spanish-speaking people to become man Howard ‘‘Bo’’ Callaway received tax-ex- sel to non-lawyers, such as Respondent, who effective campaign operatives or even can- empt status from the IRS for ALOF, an en- desire to use tax exempt charities for the didates themselves? tity organized to conduct oratory contests purpose of providing political education to ‘‘It is clear that the IRS has been willing throughout Colorado secondary schools, lend the public. to permit VOTER-ORIENTED activities such care and assistance to the needy ‘‘and to pro- There are several important facts which as registration drives, get-out-the-vote, and vide educational services to the public.’’ should be noted regarding ALOF. First, Re- voter education, where a certain group of ALOF’s officers consisted of Howard ‘‘Bo’’ spondent was not at any time a member of voters is encouraged to participate more ac- Callaway, who was the Chairman of GOPAC, the Board of Directors or an officer of ALOF. tively in the political life of the country. For and Kay Riddle, Executive Director of Second, contributors to ALOF always knew instance, the IRS concluded in PLR 9223050 GOPAC. Upon Mr. Callaway’s resignation the purpose of their donations. ALOF began that voter registration of homeless people, from the Colorado Republican Party, ALOF to pay for the ACTV programs in June of coupled with education about the electoral entered a period of dormancy in June of 1988. 1990. On May 30, 1990, there was only $486.08 process, was a valid, nonpartisan, charitable As described in a January 2, 1997 letter from in the ALOF bank account. With the excep- activity that did not violate Section Mr. Callaway to the Honorable Christopher tion of this small sum, which was used just 501(c)(3). This is consistent with the position Shays and distributed by Mr. Shays to other to keep the bank account open, all of the generally taken by the IRS that charities Members of Congress (attached hereto as Ex- money used to produce ACTV was raised spe- may engage in activities to increase the lev- hibit F and referred to as ‘‘Callaway Let- cifically for ACTV with money contributed January 21, 1997 CONGRESSIONAL RECORD — HOUSE H185 from people who knew what their money was people’’10 or other conduct which creates an only wrong if the conduct in question vio- going to be used for and who fully supported appearance of impropriety. Such a standard lates the technical parameters set out by the the ACTV programs. Third, the Articles of is currently embodied in House Rule 43(1), Internal Revenue Code. Furthermore, this is Incorporation of ALOF, submitted to the which provides: ‘‘A Member, officer, or em- not even a case in which it is alleged that a IRS when ALOF applied for tax exemption ployee of the House of Representatives shall Member violated the law; but rather it is one stated in part that the purposes of ALOF conduct himself at all times in a manner step further removed. This is a case in which were:’’ ‘‘. . . to provide educational services which shall reflect creditably on the House a Member is alleged to have failed to appre- to the public. . . .’’ The Bylaws passed pur- of Representatives.’’ However, the applica- ciate fully his need for technical guidance so suant to the Articles of Incorporation stated tion of this standard is limited, or should be, as to avoid the controversy generated by the that the purposes of ALOF, in part are to: to those cases where the conduct is wrong in divergence of expert opinion with respect to ‘‘. . . provide education services to the pub- and of itself or where a violation of the law his conduct. lic, and to engage in any and all lawful ac- has already been found by a proper adjudica- The dangers of such a precedent lie in the tivities incidental to the forgoing purposes. tory body.11 The House Ethics Manual ob- fact that: ‘‘appearance’’ standards are so . . .’’ The Bylaws further stated that ‘‘The serves that ‘‘[a] review of these cases indi- vague as to have little content, thus provid- purposes of the Corporation are promoted cates that the Committee has historically ing scant guidance to members and their and developed through public discussion viewed clause 1 as encompassing violations staffs in shaping their conduct and, at the groups, panels, lectures, conferences, of law and abuses of official position.’’ House same time, exposing them to the possibility projects, publications and program. . . .’’ Ethics Manual at 14 (footnote omitted). In of manipulable complaints and prosecution. Fourth, money given to ALOF was kept sep- such cases, Members are well-placed to pass In the words of the ABA Committee on Gov- arate from and not commingled with GOPAC on the conduct of their colleagues, as, in- ernment Standards, ‘‘beyond [an] initial role funds. Consistent with IRS rules and com- deed, is any citizen, as such conduct so clear- in rule formation, ‘appearance of impropri- mon practice, ALOF’s expenses were sepa- ly transgresses the acceptable bounds placed ety’ is too vague and contestable a concept rately allocated and paid. Anyone who on individuals in our society. to function effectively as an independent worked on both projects had salary allocated By contrast, the basis for the investigation benchmark in a system of ethics regula- 12 based on the time spent on each. in the present proceeding relates to a com- tions.’’ Such a precedent would undoubtedly have Within this context, Respondent has ad- plex and difficult question of tax law relat- a chilling effect on Member participation in mitted the violation contained in the State- ing to the permissible activities of tax-ex- charitable or educational organizations now ment of Alleged Violation. Notwithstanding empt entities. Such questions should not expressly permitted by the Committee.13 the common practice at the time, it was inform the basis for a finding that a Member has violated the Code of Official Conduct un- The subcommittee has created a new cumbent on the Respondent to engage quali- wrong not heretofore known to law: conduct fied tax attorneys to assure that his activi- less a properly constituted administrative or judicial authority has previously found that which creates a ‘‘public controversy.’’ Let us ties in the furtherance of a movement would be clear that this new hybrid is substantially not jeopardize the tax-exempt status of the the Member has in fact committed acts prohibited by the tax code. To punish a Member different from sanctioning a member for the organizations involved and would not unnec- commission of a malum in se involving in- essarily engender public controversy that for creating a public controversy involving the legality of a Member’s involvement with famy for clearly immoral or unjust conduct. would bring discredit on the House. This is Furthermore, the subcommittee seeks to true as to both the Renewing American Civ- organizations exempt from taxation under section 501(c)(3) of the Internal Revenue Code punish Respondent for failing to engage ilization course and the Abraham Lincoln counsel to avoid such controversy. Yet the Opportunity Foundation. without any violation of the law having been found by the Internal Revenue Service or practical implications of this newly-created THE ABSENCE OF PRECEDENT MITIGATES IN this Committee is not only unprecedented, offense make it difficult to understand how FAVOR OF RESPONDENT but unwise. engagement of counsel would serve as a de- The Committee is urged to consider, as a In establishing a bright-line rule to distin- fense as the subcommittee’s Statement of mitigating circumstance, the unprecedented guish between those matters properly gov- Alleged Violation suggests. Is it a ‘‘public nature of the charge relating to the creation erned by the standard set forth in House controversy’’ if experts disagree and there is of a ‘‘public controversy.’’ No Member of Rule 43(1), it is helpful to refer to the long- little or no media attention, or is it only a Congress could reasonably have known that recognized distinction between and mala in ‘‘public controversy’’ if experts disagree and such a standard might be imposed. As early se (literally, ‘‘wrongs in themselves’’) and there is substantial media attention? Is it a as November 15, 1994, Representative Bob mala prohibita (‘‘prohibited wrongs’’). See, perfect defense to have consulted counsel? Michel wrote a letter to Representatives Morisette v. United States, 342 U.S. 246 (1952); What if counsel is diligent but mistaken? McDermott and Grandy indicating his strong United States v. Park, 421 U.S. 658 (1975). Mala What if counsel renders incorrect advice? belief that the information requested by the in se are aggravated wrongs and injuries in Does the Member have to seek Board cer- Committee on October 31, 1994 regarding tax- derogation of public morals and decency. Ex- tified counsel? These and a panoply of other exempt entities was beyond the Committee’s amples include killing and stealing. While practical problems present themselves if a jurisdiction to sanction. Specifically, Rep- such offenses may or may not violate a spe- sanction is predicated upon this as yet un- resentative Michel commented: ‘‘. . . [T]he cific law, we all know that such acts are in- trodden minefield. information you request goes to the legal herently wrong and we punish those who The policy reasons for declining to create status of a 501(c)(3) entity, an entity that I commit such offenses. The Committee on such a precedent are numerous. First, allow- believe is outside of the jurisdiction of the Standards of Official Conduct can, and ing the mere allegation of violations of the Committee on Standards. To my knowledge, should, recommend appropriate punishment law to become a basis for ethics charges will there is no precedent for such an inquiry. for the commission of mala in se even if the encourage political opponents to use the law The Committee has never launched a formal Committee finds that there has been no vio- and the ethics process as tools of political or informal investigation of such an entity. lation of the law. strategy. The controversy surrounding the The Internal Revenue Service might be in- Mala prohibita, on the other hand, are acts Federal Election Commission’s complaint terested in the tax status of this particular that are wrong only in the sense that they against GOPAC filed in the Federal District group but it appears outside of your jurisdic- are specifically prohibited by the state. In Court for the District of Columbia provides a tion.’’ (Letter of Rep. Bob Michel to Reps. many instances, determining whether a case in point. See, Federal Election Comm’n v. Jim McDermott and Fred Grandy, November malum prohibitum has been committed re- GOPAC, Inc., 917 F.Supp. 851 (D.D.C. 1996). In 15, 1994 at 1). quires the application of specialized exper- April, 1994, the FEC filed a civil action Indeed, this view was echoed by a Member tise as to the state’s technical prohibition. If against GOPAC alleging that, in 1989 and of the Committee’s own legal counsel’s of- it is found, by a properly constituted admin- 1990, GOPAC had failed to register as a ‘‘po- fice, David McCarthy, when Respondent and istrative or judicial tribunal with the exper- litical committee’’ as required by the Fed- his staff first consulted with McCarthy in tise to comprehend and adjudicate the al- eral Election Campaign Act, 2 U.S.C. §§ 433(a) June of 1993 regarding the Renewing Amer- leged violation, that a Member has violated and 434(a). One of the primary contentions ican Civilization course. (See Letter of David such a law then sanctioning the Member pur- made by the FEC was that GOPAC funds to J. McCarthy to Rep. David Hobson, Decem- suant to Rule 43(1) is perfectly appropriate support Respondent as chairman of GOPAC ber 1, 1994). The sound policy reasons for as such conduct does not reflect creditably were utilized by Respondent’s election cam- placing such matters outside the Commit- on the House. In the absence of such a find- paign. The filing of the case prompted great tee’s jurisdiction have been borne out by the ing, however, the Committee should abstain speculation among the press and generated present proceeding which has been costly not from becoming involved in investigating and headlines such as ‘‘Another Ethical Problem only in financial terms, but also in terms of attempting to resolve such questions. for Newt,’’ 14 ‘‘FEC Says GOPAC Aided Ging- the integrity of the House ethics process. The Committee’s investigation of Respond- rich Race Despite Law; Group Barred From The power of both Houses of Congress to ent in the present case has attempted to Federal Campaigns in 1990’’ 15 and ‘‘GOPAC discipline their Members for ‘‘disorderly Be- apply Rule 43(1), in an unprecedented man- secretly aided Gingrich in 1990, election offi- havior’’ is recognized by the Constitution it- ner. The conduct being investigated in this cials charge.’’ 16 However, the FEC’s com- self.9 House precedent recognizes the power proceeding—using charitable funds for edu- plaint was disposed of by the district court of this body to discipline its Members for cational or allegedly partisan political ac- on summary judgment. The parallels to the ‘‘conduct unworthy of a representative of the tivities—is not a wrong in and of itself. It is present case are apparent. Despite the vast H186 CONGRESSIONAL RECORD — HOUSE January 21, 1997 number of allegations regarding Respond- efficient nor a wise use of the resources of ‘‘I also felt that because the Committee’s ent’s violations of federal election laws in this great body. While the Committee should written answer might decline to offer advice the press, when a ‘‘controversial’’ claim was not engage in deciding whether Members on Eisenach’s fundraising activity—it being exposed to rigorous examination in proper a have committed mala prohibita, it should outside the Committee’s purview—he might judicial forum the claim was found insuffi- continue its traditional and proper role of be just as well off not to raise the question cient to survive a motion for summary judg- disciplining Members for committing mala in his letter. My experience was that Mem- ment. Yet if allegations alone that ‘‘con- in se. For such offenses the House is, and bers found it annoying when the Committee troversy’’ had been generated provided a suf- should be, the court of last resort. in a written advisory opinion would explic- ficient basis for an investigation and dis- These arguments are not a challenge to itly decline to answer a question. I believe cipline under Rule 43(l), Respondent might this Committee’s jurisdiction for that time that there was some brief discussion about have been once again forced to expend great has passed. Rather, the Committee should Eisenach leaving GOPAC, in any event, to amounts of effort and money in defense and carefully consider the lack of guidance avail- focus on the course fundraising.’’ (Letter of the Committee might have been forced to able to Members, including Respondent, dur- David J. McCarthy to Rep. David Hobson, consume a great deal of its time in inves- ing the period in question as a mitigating December 1, 1994 at 1–2). tigating claims that proved to be baseless factor in considering its recommendation to The significance of these passages from when subjected to judicial scrutiny. For this the Full House. In addition, the Committee McCarthy’s letter is twofold. First, they reason, cases involving mala prohibita such should carefully consider the troubling con- demonstrate that Respondent expressly ref- as violations of federal elections law or the cerns raised by this application of Rule 43(1) erenced GOPAC and the involvement of tax code ought to be left to regulators and as other members attempt to conform their Eisenach in course fundraising in his con- the courts who are ultimately better conduct to the Code of Official Conduct. sultations with Committee counsel.20 Sec- equipped to address technical aspects of the DECEMBER 8, 1994 AND MARCH 27, 1995 LETTERS ondly, these passages explain that Respond- law. As background, it is important to note ent did not make reference to GOPAC in- Not only is this Committee ill-equipped to that the Respondent has been proactive, as volvement in the course in his letter of July address allegations that such laws have been opposed to reactive, with the Committee in 21, 1993 providing additional information to violated, but to do so ultimately undermines connection with the Renewing American Civ- Representative McDermott as Committee the administrative enforcement process of ilization course and any potential ethics is- Chairman on the express advice of Commit- many of these laws that Congress itself cre- sues which it might present. Respondent has tee counsel. (See Letter to Rep. Jim ated and creates, in effect, a highly politi- waived attorney-client privileges, produced McDermott, July 21, 1993; see also, Letter cized system parallel to the enforcement thousands of documents and met with the In- from Committee to Speaker Gingrich, Octo- mechanisms of the FEC and IRS that is ap- vestigative Subcommittee at its conven- ber 31, 1994 at 2). plicable only to Members of the House. ience. The proactive involvement began with Then, on September 7, 1994, Ben Jones, Re- Under such a system, Members may be inves- his letter dated May 12, 1993 in which he spe- spondent’s electoral opponent, filed his first tigated for alleged violations of highly tech- cifically inquired if ‘‘the committee [had] ethics complaint against Respondent. Re- nical laws and forced to endure great time any concerns about this project.’’ Then, in spondent’s initial responsive submission to and expense only to reach a conclusion that June of 1993, Respondent, Jeffrey Eisenach, the Committee dated October 4, 1994, pre- the Committee simply is not qualified to re- Annette Meeks and Linda Nave met with pared by a member of Respondent’s staff, ex- solve such questions. then Committee counsel David J. McCarthy. pressly refers to GOPAC’s involvement in In discussing the merits and benefits of a (See Letter of Speaker Gingrich to Reps. the course. In particular, the letter states: disclosure-based ethics system for Members Goss and Cardin, October 31, 1996 with at- ‘‘I would like to make it abundantly clear of Congress, one commentator highlighted tachments (including Letter of David J. that those who were paid for course prepara- the unique concerns presented by claims McCarthy to Rep. Hobson, December 1, tion were paid by either the Kennesaw State that a Member has violated a highly tech- 1994)). During the course of that meeting, Foundation [sic], the Progress and Freedom nical prohibition and the need for particular- Mr. McCarthy recalls that: Foundation or GOPAC . . . Those persons ized expertise to make such a determination. ‘‘The discussion eventually turned to fund- paid by one of the aforementioned groups in- Specifically, ‘‘disclosure is not the most ef- raising for the course. Jeff Eisenach began to clude: Dr. Jeffrey Eisenach, Mike DuGally, fective tool to employ against conduct that volunteer details of how he contemplated Jana Rogers, Patty Stechschultez [sic], violates highly technical regulations or is it- fundraising, and I interrupted his expla- Pamla Prochnow, Dr. Steve Hanser, Joe Gay- self composed of a complex or highly nation with a question, ‘‘are you on the lord and Nancy Desmond.’’ (Letter to Rep. nuanced series of events. In such cir- House payroll?’’ When he answered that he Jim McDermott, October 4, 1994 at 2). (em- cumstances, it seems that the risk of manip- was not, never had been, and did not ever ex- phasis added.) ulation and/or voter misunderstanding would pect to be I shifted the focus of the discus- As the above-quoted passage indicates, Re- be high; accordingly, entrusting an entity sion by explaining that I was not interested spondent expressly referred in correspond- such as the Federal Election Commission in what Eisenach was planning to do, I was ence with the Committee to the involvement with the responsibility to police such areas only interested in what Mr. Gingrich and of GOPAC in the course and the use of as technical campaign regulations might be any House employees were going to do * * *. GOPAC funds to pay individuals for course preferable. In this regard, it is important to * * * * * preparation. Indeed, there is no question recognize that the question of whether a vio- ‘‘Then Mr. Gingrich again brought up that the Committee was aware of involve- lation has occurred can be separated from Eisenach and asked whether he should not ment by GOPAC. This knowledge was con- the question of whether a sanction should be get the Committee’s written advice that firmed in the Committee’s letter dated Octo- imposed. 17 Eisenach would be permitted to engage in ber 31, 1994 to Respondent. Significantly, the From a policy standpoint, it would be far the fundraising. His concern seemed to be Committee’s letter notes that Respondent’s preferable for the Committee to take action that Eisenach’s identity with GOPAC, along October 4, 1994 letter ‘‘sufficiently with respect to allegations of this nature with his fundraising for the course through answer[ed] most of the allegations raised in only after it has been found that a Member the college foundation, could open him to Mr. Jones’ complaint.’’ has violated the law by an administrative criticism that the motivation for the course Eliminating any issue regarding the Com- agency or court subject to judicial review. was political. I replied that, in my judgment, mittee’s awareness of GOPAC’ involvement, Indeed, this Committee has on several occa- Mr. Gingrich should not ask the Committee however, the Committee’s October 31, 1994 sions deferred action pursuant to a request to pass on the activity of Eisenach. letter went on to state: ‘‘A number of docu- from the Department of Justice. 18 Such an ‘‘First, I explained that because Eisenach ments reflect the involvement of GOPAC and approach in no way diminishes the authority was not a Member, officer or employee of the GOPAC employees in developing and raising of this Committee to regulate the conduct of House his activity was really outside of the funds for the course.’’ The letter continues: Members on behalf of the House as once a Committee’s jurisdiction. Secondly, I told ‘‘In addition to the above, various other doc- violation has been found by a competent tri- him that, to my knowledge of tax law, the uments related to the course were sent out bunal as House precedent clearly establishes issue of whether the contributions in support on GOPAC letterhead, were sent from that the Committee may investigate or sanc- of the course would keep their tax-deductible GOPAC’s fax machine, used GOPAC’s address tion the Member for conduct which does not status would turn not on who did the fund- as a place to mail materials related to the reflect creditably on the House. 19 raising but on how the funds were spent, and course, and referred to registration mate- Yet to expand dramatically this Commit- that the educational nature of the course rials being included in GOPAC Farmteam tee’s jurisdiction to consider technical viola- spoke for itself. I told him that I was aware mailings.’’ In all, the Committee’s October tions of statutes not governing mala in se is of no law or IRS regulation that would pre- 31, 1994 letter makes reference to GOPAC no to open a Pandora’s box which it may be im- vent Eisenach from raising charitable con- less than 46 times and cites extensive docu- possible to close again. If this path is taken, tributions, even at the same time that he mentation referring to GOPAC. (See, Letter this Committee will become a special tribu- was raising political contributions. In any from Committee to Speaker Gingrich, Octo- nal which tries to hear and decide, without event, I advised him, I expected the Commit- ber 31, 1994). Interestingly, from the original right of appeal, every conceivable allegation tee to stick by its advisory opinion in the complaint to the October 31, 1994 Committee that might be levied against a Member re- Ethics Manual and not get into second- correspondence, GOPAC is mentioned by gardless of whether it is malum prohibitum guessing the IRS on its determination of tax- name 92 times in correspondence to and from or malum in se. Such an action is neither an exempt status, the Committee. January 21, 1997 CONGRESSIONAL RECORD — HOUSE H187

DECEMBER 8, 1994 LETTER responsible for preparing the response in co- March 27, 1995, submission in addition to As reflected above, the Committee’s re- ordination with his staff member. (Gingrich that previously done for the December 8, quest for information was dated October 31, Tr., 11/13/96, at 28). Respondent indicated 1994, submission, the partner replied: ‘‘Fac- 1994. On November 8, 1994, election day, Re- that, in assigning this task, ‘‘[the staff mem- tual inquiry—none that I recall—no.’’ (Baran publicans captured a majority of seats in the ber] would have been acting with my author- Tr. at 30–31). The partner’s testimony was U.S. House of Representatives. The process ity to conduct what we thought at the time that after drafting and editing the March 27, of transition began immediately. In the con- was a thorough investigation.’’ (Gingrich 1995, document ‘‘at some point we would text of these events Respondent retained Tr., 11/13/96, at 15–16). However, the testi- have sent a draft that we felt comfortable counsel on November 15, 1994 to represent mony makes apparent that the staff member with over to the Speaker’s office.’’ (Baran him in connection with the ethics investiga- believed that the partner attorney was Tr. at 28). The partner testified that he did tion. checking the factual basis of the statements not recall any discussions with the Respond- Counsel began preparation of the response. for accuracy while the partner attorney was ent prior to the submission of the March 27, An associate was assigned to prepare an ini- under the misimpression that the staff mem- 1995 letter over the partner’s signature. tial draft of the response. The attorneys co- ber was doing so.21 This miscommunication (Baran Tr. at 32). The firm’s billing records ordinated their efforts with a member of Re- extended not only to the research into the reflect that the submission was filed on spondent’s staff. Subsequently, the Decem- factual bases for the statements but to the March 27, 1995 at 6:05 and delivered to Tony ber 8, 1994 letter was presented to Respond- communication of these findings to Respond- Blankley of Respondent’s staff at 6:35 that ent for review and signature. It does not ap- ent. As noted above, the partner attorney same evening. (WFP 00224). pear that there was any communication be- testified that he did not discuss the contents The purpose of this extended review of the tween the attorneys and the Respondent of the letter with Respondent prior to sub- testimony offered in this proceeding regard- until after December 8, 1994. mission. (Baran Tr. at 18, 33) nor does Re- ing the process of preparing these submis- Regarding the response, Respondent testi- spondent recall such a meeting. (Gingrich sions to the Committee is not an attempt to fied that he would have turned and said ‘‘I Tr., 11/13/96, at 30). Nor apparently did any- shift the ultimate responsibility for submit- want this done. .. .’’ (Gingrich Tr., 11/13/96, at one on Respondent’s staff confirm the facts ting these statements from Respondent to p. 28) Respondent testified that, in Novem- contained in the letter with Respondent others, but only to demonstrate that the tes- ber, ‘‘we, in effect, had decided to go from prior to its submission in any systematic timony of record in this matter clearly sup- [the staff member] being in charge to [the fashion. The staff member’s recollection is ports the conclusion that any inaccuracies staff member] coordinating with the law that she did not even see Respondent during contained in these submissions were the re- firm and the law firm being in charge.’’ Re- the signing process, but forwarded the letter sult of regrettable errors rather than of any spondent testified that it was his under- to Respondent for signature through the ex- intent to mislead this Committee. In their standing that the law firm was primarily re- ecutive assistant. (Meeks Tr. 15 76–77). testimony before this Committee, the staff sponsible for drafting the December 8th let- MARCH 27, 1995, LETTER members as well as the attorneys repeatedly ter. (Gingrich Tr. 11/13/96, at 28). Turning then to the letter to the Commit- testified that they were never told, directly The firm partner recalls that his role and tee of March 27, 1995, similar miscues appear or indirectly, by Respondent, or anyone on that of his firm in the preparation of the De- to have resulted in inaccuracies in state- his behalf, to provide anything other than cember 8, 1994 letter was to prepare a re- ments made to the Committee. Again the at- accurate information to the Committee. ‘‘Mr. GOSS. For the record, you may want sponse working with the staff member. torneys had responsibility for the prepara- to respond to this. I will try and make it as (Baran Tr. at 6–7). The partner assigned re- tion of the submission on Respondent’s be- clearly as I can. Do you have any personal sponsibility for preparing an initial draft to half, and on this occasion, the responsibility knowledge of whether the Speaker either di- an associate at the firm. (Baran Tr. at 9–10; for the initial drafting fell to the associate rectly or through his attorney Mr. Baran de- Mehlman Tr. at 15). The associate testified as well as to a more senior associate. The liberately provided anything other than ac- that in preparing the draft response to the senior associate testified that, in drafting curate, reliable or complete information to October 31, 1994 letter, he relied upon ‘‘var- the facts section of the March 27 response, he this committee regarding his response relat- ious correspondence’’ between Respondent relied upon the October 4 letter, the attached to the complaints with regard to the let- and the Committee including the October 4, ments to the amended complaint, the origi- ters that we have talked about today? 1994 letter, the course book, a pamphlet on nal Jones complaint and its exhibits, the De- ‘‘The WITNESS. Do I have any knowledge the course, and the Jones’ complaint with cember 8 letter, all of the exhibits included that any of the information was false? Is exhibits and the videotapes of the course. with the March 27 submission and conversa- that the question? (Mehlman Tr. at 15–16). The associate further tions with the Respondent’s staff member. ‘‘Mr. GOSS. Was deliberately provided, that testified that it was his understanding that (Toner Tr. at 19, 29–30, 34). The senior associ- was other than accurate, reliable or com- he did not need to go beyond these materials ate further indicated that he made no con- plete. in drafting the response. (Mehlman Tr. at tact with anyone at GOPAC, the Progress & ‘‘The WITNESS. No. 19). The associate testified that, in preparing Freedom Foundation, Reinhardt College, ‘‘Mr. GOSS. Do you know if Mr. Gingrich at the draft, he never contacted anyone at Kennesaw State College or the Kennesaw any time tried to forward or intended to for- GOPAC (Mehlman Tr. at 18, 28), nor did he State College Foundation in preparing the ward to us incomplete, inaccurate or unreli- contact Dr. Eisenach (Mehlman Tr. at 28) or March 27, 1995, letter. (Toner Tr. at 19–20; 26– able information? Respondent (Mehlman Tr. at 27) to confirm 27; see also, Baran Tr. at 27 (no contact with ‘‘The WITNESS. If I may editorialize on my any of the information contained in the De- GOPAC)). The junior associate similarly tes- answer for a second, we really—in the two cember 8, 1994 letter. The associate then met tified that he had relied upon the cor- replies that I was involved in, we really, in with the partner to review the draft and respondence and materials he had from the our estimation, tried to comply as fully, some editorial changes were made. December 8 submission as well as having re- completely, honestly, straightforward, and (Mehlman Tr. at 18). viewed other responses by the senior associ- promptly as we were able. The partner testified that his review was ate and the partner. (Mehlman Tr. 15 38). ‘‘Mr. SCHIFF. The question is did Mr. Ging- limited to the October 31, 1994 letter from Both associates indicated that they were rich ever suggest to you in any way, shape, the Committee, the Jones Complaint with not personally aware of efforts to check the or form, that you do other than that? exhibits and telephone conversations, and factual accuracy of the March 27, 1995, sub- ‘‘The WITNESS. Oh, goodness, no.’’ (Meeks that otherwise ‘‘[he] didn’t have any other mission. (Toner Tr. at 38–39; Mehlman Tr. at Tr. at 85–86). independent factual gathering.’’ (Baran Tr. 53). The senior associate testified that he ‘‘Mr. GOSS. Do you have any knowledge at 13). The partner further indicated that he was similarly unaware of any contacts with that Mr. Gingrich was aware that any of the had no contact with the Kennesaw State Col- people outside the firm, other than Respond- information contained in the letters that we lege Foundation (KSCF), Kennesaw State ent’s staff member, to confirm the factual have talked about at the time that those let- College or Reinhardt College in preparing basis for statements contained in the sub- ters were submitted were incomplete, mis- the December 8th letter. (Baran Tr. at 18). mission (Toner Tr. at 56), and that he was leading, or inaccurate? The partner further testified that his first not aware of any changes made to the docu- ‘‘The WITNESS. No.’’ (Baran Tr. at 60). contact with Respondent during this time ment based on comments from anyone asso- ‘‘Mr. SCHIFF. Could I ask you two questions period was on December 9, 1994, and that he ciated with the Respondent. (Toner Tr. at 60– on that; actually, I may be leaping ahead, had no recollection of having discussed the 61). The junior associate indicated that he but a general question? Was there anything letter at all and that he had no contact with did not recall contacting any outside persons told to you that you heard either directly or Respondent concerning the matter prior to to confirm such facts. (Mehlman Tr. at 38). indirectly, that indicated that it was the that time. (Baran Tr. at 18, 33). The partner additionally confirmed that, purpose of either the speaker or of Mr. Baran Turning then to the involvement of Re- while he reviewed the drafts and edits with or of anyone else connected with this case, spondent and his staff in the December 8, the associate, he did not recall making any to deceive this committee and to provide 1994 letter, the partner indicated that the outside inquiries of anyone regarding the Re- anything but accurate information? letter ‘‘eventually went from our office to newing American Civilization course with ‘‘The WITNESS. No. [the staff member.].’’ (Baran Tr. at 14). Re- one possible exception. (Baran Tr. at 28). ‘‘Mr. SCHIFF. Your assumption, then, is you spondent’s testimony confirms that it was Asked if he was aware of any additional are supposed to put together a correct state- his understanding that the law firm would be factual inquiry done in preparation for the ment of the facts and submit it to us? H188 CONGRESSIONAL RECORD — HOUSE January 21, 1997

‘‘The WITNESS. Absolutely.’’ (Toner Tr. at 4 See, infra p. 35–43. A. This was prepared by our counsel. I trust that 28). 5 IRC section 501(c)(3) identifies these qualifying he had—— Representative Goss summarized the testi- entities as: ‘‘[c]orporations, and any community Q. My question is, very specifically, did you have mony on this point most succinctly observ- chest, fund, or foundation, organized and operated any knowledge of the facts, personal knowledge of exclusively for religious, charitable, scientific, test- the facts, that are contained in the letter? ing: ing for public safety, literary, or educational pur- A. I would have, yes. I would have looked to Dave ‘‘Mr. GOSS. Okay. I have only one little poses, or to foster national or international amateur McCarthy, which characterized a conversation that thought. We seem to have gotten into a situ- sports competition (but only if no part of its activi- Linda Nave and I had with Mr. McCarthy, to verify ation where we know we have some informa- ties involve the provision of athletic facilities or Jan’s characterization of that conversion. tion that is not everything we desired it to equipment), or for the prevention of cruelty to chil- I verified Clerk’s report which I had provided a be, and we are trying to track down why and dren or animals, . . .’’ IRC § 501(c)(3). copy of and the termination papers that I had pro- how we got into that position. It seems that 6 FEC records reflect that Ms. Roady, a registered vided and also the Dave McCarthy conversation Democrat, has made political contributions totaling about GOPAC staff simultaneously working for the Mr. Gingrich was relying on you [Baran] and $1,550 to Emily’s List, The Rangel for Congress Com- some other people to do the December 8th course and for GOPAC. mittee, and the Democratic National Committee. Q. Anything else? letter, or his December 8th letter was given 7 The IRS has similarly refused to revoke the tax A. No. (Meeks Tr. at 45). to somebody else and they were supple- exempt status of a voter registration organization Q. No, I am now asking the letter itself, did you mented by your firm, and your firm in turn, promoted by then-Senator Alan Cranston and run by ever indicate to Mr. Baran that you had provided by your testimony, you were relying pretty his son, Kim Cranston. ‘‘Old Softie: Alan Cranston’s the December 8th letter prior to its going to the much on what that individual, who would be Soft Money Machine; Campaign Fund Ethics,’’ The committee to anyone for the purpose of checking its New Republic, p. 17 (Dec. 11, 1989); ‘‘Raising Money accuracy? Ms. Meeks, was doing and you were just to Register More Voters,’’ The Exempt Organization checking for legalities rather than sub- A. No, that would not have been—no. (Meeks Tr. Tax Review, p. 697 (Dec.–Jan. 1990). Indeed, ‘‘[i]n 87). stance, would be sort of the way I read your 1984, . . ., several foundations attempted to use their Mr. GOSS. So your answer, as of the December 8 testimony, and therefore the problem started tax-free assets to increase turnout by targeted letter, would be that all of the information that on December 8th was further compounded on groups and thus increase the Democratic vote in the came from outside came from Mr. Baran? March 27th on that letter because you used presidential election, according to election experts.’’ The WITNESS. Yes, sir. (Meeks Tr. at 67). some of the material from the December 8th ‘‘Raising Money to Register More Voters’’, p. 679. However, the partner testified as follows: 8 See, supra, p. 30. letter. Is that correct? Q. And again, I’m trying to understand exactly the 9 Art. I, § 5, cl. 2 provides: ‘‘Each House may deter- level of factual inquiry that was made aside from ‘‘The WITNESS [the partner attorney]: Yes. mine the Rules of its Proceedings, punish its Mem- the materials that were submitted with the com- I would agree with that characterization.’’ bers for disorderly Behavior, and, with the Concur- plaint, some of which were also submitted with the (Baran Tr. at 59). rence of two thirds, expel a Member.’’ October 31st letter. Aside from that and Mr. Respondent’s own testimony before this 10 See, In re Rep. Edward D. Holbrook (ID), II Hinds Eisenach talking to you, perhaps Mr. Gaylord, and Committee similarly endorses this version of § 1305 (1869); In re Rep. John T. Deweese (NC), II looking at the tapes, was there any factual inquiry events: Hinds § 1239 (1870). that you know of done by you or anyone at your of- ‘‘. . . After reviewing my testimony, my 11 See, House Ethics Manual, 102nd Cong., 2nd fice to prepare the portions of the letters concerning counsel’s testimony, and the testimony of Sess., April 1992 at 13–14 (collecting cases in which the course? Rule 43(1) has been invoked in investigating or dis- his two associates, the ball appears to have A. Well, whatever review occurred subsequently by ciplining Members ). others. been dropped between my staff and my coun- 12 Theresa A. Gabaldon, ‘‘The Self-Regulation of Q. But you don’t know what that was? sel regarding the investigation and verifica- Congressional Ethics: Substance and Structure,’’ 48 A. That is correct. I cannot confirm that today. tion of the responses submitted to the com- Admin. L. Rev. 39, 54–55 (1996) (quoting ABA Com- (Baran Tr. at 48). mittee. mittee on Government Standards (Cynthia Farina ‘‘As I testified, I erroneously, it turns out, Reporter), ‘‘Keeping Faith: Government Ethics and THE GINGRICH ETHICS CASE: EXCERPTS FROM relied on others to verify the accuracy of the Government Ethics Regulation,’’ 45 Admin. L. Rev. THE COUNSEL FOR THE HOUSE SPEAKER statements and responses. This did not hap- 287, 297 (1993)). 13 The House Ethics Manual relied upon for guid- [From the Washington Post, Jan. 18, 1997— pen. As my counsel’s testimony indicates, ance by Members provides: ‘‘The Committee has Federal News Service] there was no detailed discussion with me re- granted a blanket exception to [5 U.S.C.] section 7353 garding the submissions before they were to allow Members and employees of the House to so- Following are excerpts from the statement sent to the committee. Nonetheless, I bear licit funds on behalf of charitable organizations, to the House ethics committee of J. Ran- responsibility for them, and I again apolo- provided that no official resources are used, no offi- dolph Evans, counsel for House Speaker gize to the committee for what was an inad- cial endorsements is implied, and no direct personal Newt Gingrich (R. Ga). vertent and embarrassing breakdown.’’ benefit results. ‘‘House Ethics Manual at 319 (footnote omitted). Let me begin by saying that we recognize (Gingrich Tr., 12/10/96, at 5–6). 14 ‘‘Another Ethical Problem for Newt, The News and the speaker recognizes the serious na- Upon realizing that errors were made, Tribune, December 2, 1995, at A9. ture of the charges that are contained in the Speaker Gingrich has openly and publicly ac- 15 ‘‘FEC Says GOPAC Aided Gingrich Race Despite Statement of Alleged Violation, and recog- cepted responsibility for these errors and has Law; Group Barred From Federal Campaigns in nizes the seriousness of his admission to the offered his sincere apologies to this Commit- 1990,’’ Washington Post, November 30, 1995, at A1. violation contained in the Statement of Al- 16 tee and the House. ‘‘GOPAC secretly aided Gingrich in 1990, election leged Violation. Any charge against a mem- officials charge,’’ The Commercial Appeal (Mem- Notwithstanding these circumstances, the ber of Congress is a serious matter. Any bottom line is that inaccurate, incomplete phis), November 30, 1995, at 1A. 17 Gabaldon, supra, at 57. charge involving the speaker of the Congress and unreliable information was submitted to 18 See, In re Del. Fofo I.F. Sunia (Am. Sam.) and is indeed a serious matter, especially when it the Committee. There are no circumstances aide Matthew K. Iuli, See, Summary of Activities of is leveled against a member who has so con- which can justify the submission of inac- 100th Cong., H. Rep. No. 100–1125, at 15–16 (1989); In re sistently over the years proactively involved curate, incomplete or unreliable information Rep. Frederick W. Richmond (NY), See, Summary of himself in the issue of ethics, including pur- to the Committee. The information submit- Activities, 97th Cong., H. Rep. No. 97–1004 (1982). suing sanctions against members of his own 19 See, e.g., In re Del. Fofo I.F. Sunia (Am. Sam.) ted was submitted on Respondent’s behalf. party where he deemed appropriate. Respondent has accepted full responsibility. and aide Matthew K. Iuli, See Summary of Activi- Respectfully submitted, this 16th day of ties, 100th Cong., H. Rep. No. 100–1125, at 15–16 (1989) Nonetheless, we do recognize and the (disciplinary hearing scheduled after Member and speaker recognizes how serious this issue is. January, 1997. aide pleaded guilty to conspiracy to defraud govern- J. RANDOLPH EVANS, In fact, in connection with this process, the ment, although both resigned before hearings held); speaker has cooperated fully and completely Counsel for Respond- In re Rep. Mario Biaggi (NY), H. Rep. No. 100–506, ent. 100th Cong., 2d Sess. (disciplinary hearing held after with the investigative subcommittee in all ED BETHUNE, conviction for accepting illegal gratuities). phases, including waiving privileges with his Co-Counsel for Re- 20 ‘‘I would also ask the committee to place this counsel, producing thousands of documents, spondent. error in the context of our proactive effort in 1993 to attending meetings with the subcommittee seek the committee’s advice and approval and the at the subcommittee’s convenience, and di- letter from the former committee counsel, Dave FOOTNOTES recting his staff and counsel to cooperate McCarthy, confirming that I had aggressively with the subcommittee at every phase. 1 Contributing to the preparation of this report sought to explore any complications that would in- were Anthony W. Morris, Esq. and Stefan C. volve GOPAC. At no time did I intend to deceive the Indeed, the speaker himself has apologized Passantino, Esq. of Arnall, Golden & Gregory, L.L.P. committee or in any way be less than forthright.’’ to the subcommittee, to the House, and to and Shannon H. Ratliff, Esq. of Bracewell & Patter- (Gingrich Tr. at 6–7). the American people for the public con- son, L.L.P. 21 The staff member’s repeated testimony in this troversy that has ensued from the activities 2 Charitable, religious and educational entities or- regard was as follows: ganized under section 501(c)(3) and lobbying entities Q. Did you look over the document to check it for that are described in the Statement of Al- organized under section 501(c)(4) are exempt from accuracy? leged Violation. . . . taxation under the tax code. IRC § 501(a). A. Yes. In addition, the speaker has agreed to the 3 In fact, qualified tax experts in the field have Q. Factual accuracy? recommended level of sanction which Mr. concluded that there has been no violation of federal A. Primarily I would have been looking at this Cole has described. In connection with that, tax law. Highly regarded 501(c)(3) expert William J. document for typographical errors, misspelled Lehrfeld concluded there is no violation of federal words. [co-counsel] Ed Bethune and I . . . have spent tax laws. See, Exhibit E. James P. Holden of the law Q. Did you have any knowledge of the facts that a great deal of time reviewing the various in- firm of Steptoe & Johnson reached the same conclu- are contained in this document, the December 8, formation that has been made available to sion. See, Appendix C. 1994, letter? us. . . . And our recommendation is the same January 21, 1997 CONGRESSIONAL RECORD — HOUSE H189 recommendation as the recommendation of two organizations that share the same staff, materials relating to the vision, and I would the special counsel. the same facilities and other expenses. They ask that you would specifically take a look I should note that our recommendation is can conduct joint activities as long as there at the degree to which the movement always premised in part on the significant and im- is an allocation of the income and expenses. operated as an overall umbrella under which portant message that it sends in two re- This is not a new concept that has just sim- the other activities always fit. I do not be- spects: First, the submission of inaccurate, ply arose in connection with this particular lieve that there is any document that re- incomplete and unreliable information in the case. . . . flects a Republican majority as the overall course of any ethics investigation, regardless The idea that somehow what was occurring umbrella of the goal in which then, on the of the circumstances surrounding the sub- in 1992 and 1993 by the speaker in connection flip side, the movement was a part leading to mission, is serious and should be addressed with multiple entities was unusual or ex- the majority. . . . in a serious way. Second, the speaker feels traordinary or subject to serious question by As far as his violation of the tax law goes, strongly that when information, which is in- the Internal Revenue Service, all of those there are two possibilities that largely exist. accurate, incomplete or unreliable, causes which do not relate to the facts that the One . . . is that there was a violation of the the committee to expend resources, then the committee has found but relate to the envi- law, which the committee specifically did party submitting the information should ronment and the context of what was occur- not find, and that indeed the speaker, at the bear some responsibility for reimbursing the ring in the United States in 1992 and 1993, time that he engaged in this conduct, knew committee for some of the cost in addressing would reflect that those were consistent that it was a violation of law and thus acted that information. . . . with what at least 51 senators and 146 other improperly. That is an impossible conclusion We recommended the sanction be rep- House members were doing at the same time under this record. At best, the area of the rimand, a sanction which is relegated to seri- in connection with multiple entities. law is unsettled. The committee’s own tax ous violations. The speaker developed a movement. I counsel, in her reports to the [American Bar Speaker Gingrich has voluntarily agreed think in that regard it is important to note Association], indicates that it is unsettled that the committee will be reimbursed at the outset . . ., if you notice on Slide 32, and that the IRS precedent provides little $300,000 for costs incurred in connection with that he made it clear that the challenge in- guidance. the investigation of the inaccurate, incom- volved was not Republican or Democrat, lib- But more importantly, if you assume for a plete and unreliable information submitted eral or conservative; the challenge was to moment that the tax-law issue was clear to to the committee. We have recommended civilization’s survival. . . . What happened in the subcommittee’s tax counsel, it is equally that this reimbursement be included in any 1992 and 1993 and relating back as early as clear that the speaker’s tax counsel reached sanction that is recommended by the com- 1990, is Speaker Gingrich developed ideas on the opposite conclusion. The best that you mittee to the full House. . .. what he saw as necessary to renew American can say is, from all of the writing in the arti- NOT A REHASHING civilization. It extended well beyond the con- cles that existed at the time, is that the law cept—extended well beyond the concept of I should note that I agree with [Rep. Ben- was unclear. And if the law was unclear, any partisan political gain, but instead . . . jamin L.] Cardin [D–Md.] that the purpose of there is no way in which the speaker could extends to a fundamental concern about this hearing is not a rehashing of all the have understood what the law was and in- whether American civilization indeed is in facts that are contained in the special coun- tended to violate it. decay and decline. . . . The other possibility is that the speaker sel’s report. . . . [However] I disagree with was put on notice that there was a serious some of the conclusions and analysis that CHANGING CULTURAL DECLINE potential problem, and nonetheless, chose to are contained from those facts. . .. [T]o change cultural decline, there had to ignore it. . . . In addition to 51 senators and [W]hile certainly the facts are carefully be a cultural, economic, political, govern- 146 congressmen engaging in this kind of stated in the special counsel’s report, I think mental movement that transcended any gov- multiple-capacity structures, that the legal that they are often stated in a way which ig- ernment, any business, any educational in- writings at the time seemed to suggest that nores the realities and the context in which stitutions, specifically including the Con- the course, specifically Gingrich’s course, fit the events that are being described was oc- gress. . . . As part of the government, he was within acceptable parameters at the curring. . . . convinced that it required . . . that there be time. . . . [The] Statement of Alleged Violation es- a majority committed to reform. . . . In con- [Y]ou will see . . . citations that equally sentially consists of two parts. The first part nection with that there were three things make it clear that the writings at the time, consists of an alleged violation that the that occurred. There was the whip’s office; the legal periodicals at the time, reflected speaker failed to seek and follow the legal and his congressional office; there was the the multiple-structure process. advice that is described within the State- 501 (c)(3) organizations; and then there was I would also note to consider in connection ment of Alleged Violation. Second, the GOPAC. . . . All three served distinct pur- with deciding the appropriate level of sanc- Statement of Alleged Violation refers to in- poses. tion, that the speaker specifically addressed formation that was transmitted to the com- The purpose of the whip’s office was the issue of GOPAC involvement and fund- mittee on the speaker’s behalf on two sepa- through votes and legislation, to cause the raising in a meeting with David McCarthy rate occasions. movement to occur. Through the 501 (c)(3), who was committee counsel to the ethics I would like to emphasize . . . the speaker there was the focus to educate and reform committee. You will note that . . . Mr. was not charged with violation of U.S. tax ideas necessary for a movement to occur. McCarthy . . . pretty much articulated laws. The speaker was not charged with in- And through GOPAC was to recruit and train standards that . . . the tax-deductible status tending to deceive the committee. The Republican candidates. All of these then would turn not . . . on who did the fund-rais- speaker was not charged with illegal activi- were to cause a movement to occur. . .. ing, but on how the funds were stacked, and ties or criminal tax violations. The speaker It is not without question that both that the educational nature of the course was not charged with money laundering. . .. achieved Renewing American Civilization, spoke for itself. . . . We can only conclude that not only did the but it is not inconsistent that they would It is in that context that I ask you to place Statement of Alleged Violation not charge have the same goal, the only difference being the activities surrounding Renewing Amer- any of those items, but there was no reason that while the movement itself would pre- ican Civilization and the American Opportu- to believe that illegal or criminal or other suppose a majority considered—committed— nities Workshop. such activities occurred. to reform, that GOPAC would want that ma- Second, I think it is important to place jority to be Republican. ISSUE OF THE LETTERS this in the context of what was happening in Those are not inconsistent, and I’d think If I could now turn my attention to the 1991 and 1992 and 1993. . . . [T]he House Eth- even Mr. Cole would concede . . . that it is issue of the letters that were submitted to ics Manual specifically contemplates mul- not inappropriate . . . for a political action the committee. . . . tiple capacities involving . . . members of committee to in fact use and disseminate in- In May 1993, the speaker delivered to the Congress. It specifically talks about the dif- formation that has been developed by a committee a letter regarding participation ference between office accounts, official and 501(c)(3). . . . It is important that that con- in the formulation of the course. He attached unofficial organizations and similar distinc- text of that movement be put in the perspec- his January 25, 1993, special order, in which tions involving multiple capacities. . .. tive of the same thing that occurs on a daily he outlined his vision for Renewing Amer- I would note that the Internal Revenue basis involving any number of 501(c)(3)’s, ican Civilization. Any suggestion that the Service itself has recognized on repeated oc- 501(c)(4)’s and PACs in Washington, D.C., or committee at the time was not aware of the casions that a number of 501(c)(3) organiza- across America. . . . vision of Renewing American Civilization as tions have related 501(c)(4) organizations [O]ne issue that appears to be in signifi- it extended, is simply incorrect, given that that can [conduct] political campaign activi- cant dispute is the issue of whether the goal the one hour special order speech was specifi- ties, usually through a [political action com- of what all was occurring in 1991, 1992, and cally attached to the letter. mittee]. . . . 1993 was a Republican majority, of which the In the spring of 1993, the speaker’s staff I would even note for the committee that movement was a part, or was the goal the met with David McCarthy, counsel for the in the continuing-education handbook that movement, of which a Republican majority committee, in which there are references to is provided to IRS field agents, they specifi- was a part. . . . [executive director Jeffrey] Eisenach’s iden- cally acknowledge that two organizations, I would ask that in that context, that you tity with GOPAC, and . . . the 501(c)(3) is- such as a 501(c)(3) and a 501(c)(4), can include would specifically take a look . . . at the sues. H190 CONGRESSIONAL RECORD — HOUSE January 21, 1997 It is important to note that in the connec- sponsibility for the preparation of the re- counsel Jan] Baran or anyone else connected tion with that letter, that Mr. McCarthy sponses to the committee’s inquiry of Octo- with this case to deceive the committee or to made it very clear . . . that the issue of ber 31, 1994. He began the process of a series provide anything but accurate information?’’ GOPAC’s involvement and the issue of the of nonstop meetings—steering committee Answer by the associate: ‘‘No.’’ tax-deductible status was not something meetings and other meetings—to begin the ‘‘Your assumption, then, is that you were within the committee’s jurisdiction transition process that followed the Novem- supposed to put together a correct statement and . . . of which the committee would not ber election. of the facts and submit it to us?’’ be particularly interested; that he said that In this regard, I find the conclusions of the Answer: ‘‘Absolutely. . . .’’ he thought the committee would stick by its special counsel’s reports, the characteriza- Question: ‘‘Well, did Mr. Gingrich ever ask position and not get involved in second- tions to be somewhat in error. . .. you to provide us any information that was guessing the IRS on its tax determinations THE BALL GOT DROPPED less than complete or that was misleading?’’ of tax-exempt status. Answer: ‘‘Absolutely not, although I have [I]t is simply an example of a situation I think it’s important to note that in fact to hesitate to use the word ‘absolutely.’ ’’ where, as the speaker put it, the ball got he discouraged . . . involvement of the eth- Mr. GOSS: ‘‘Do you have any knowledge dropped between the staff and between the ics committee in connection with the rela- that Mr. Gingrich was aware that any of the attorneys, about verifying the accuracy of tionship of GOPAC and 501(c)(3) status so information ... that we have talked about, at information. This is especially true given that the focus of the committee counsel’s in- the time those letters were submitted, were that the information that is inaccurate re- terest was on the distinction between office incomplete, misleading or inaccurate?’’ lates to information which was already in accounts and unofficial activities. So it’s Answer: ‘‘No.’’ the committee’s possession and which had against that backdrop that we then measure The testimony is consistent on this point. already been referred to some 92 times. the responses that were being submitted There is no evidence from any testimony That brings us to the March 27 letter, later. from any witness who in any way touched On July 21, there was a letter to the com- which was a letter that was signed by coun- any of the letters that there was any intent mittee that noted the involvement of the sel, and for which there is no real indication or attempt to submit inaccurate informa- 501(c)(3). I would again commend to you to of involvement by the speaker himself in tion. . . . read specifically the letter that references connection with it. . . . I would note to you I noted in reading the report, the conclu- the Kennesaw State Foundation and the fact that if I take the testimony at face value, sions of the report, that there are words that it was a 501(c)(3) entity. and that is that there were these erroneous which are . . . cleverly juxtaposed against On August 3, the committee issued its let- statements in the document, it should be put each other to lead to a conclusion which is ter noting its position in granting approval in some context. This was a 52-page letter. somewhat different than what the testimony to the course as outlined in the correspond- It had 31 exhibits. It had 235 pages. It was itself is. ence that had been submitted by the speaker prepared by an attorney after 140 hours. It I do not dispute the facts surrounding the and the information that had been submit- consisted of 1,131 lines, of which 18 are at letters. I don’t dispute the testimony that ted. issue. It was submitted to the speaker during surrounds the letters. Most importantly, the On September 7, 1994, the complaint was the last week of the . . . [first] 100 days [of speaker does not attempt in any way to offer filed by Speaker Gingrich’s opponent [Ben the new Republican-majority Congress]. The excuses relating to the letters, and it has Jones] in the general election. It references suggestion being that the speaker should been his consistent position, as opposed to at length GOPAC and its involvement and its have caught the . . . errors made by attor- that of mine of being the attorney here, to relationship to 501(c)(3). neys retained by him after 140 hours of a 52- put things in context for you, that the let- On October 4, Speaker Gingrich sent a let- page letter with 31 exhibits. Context is im- ters were his responsibility. They were sub- ter to the committee addressing the com- portant in understanding the nature of the mitted on his behalf. They are inaccurate. plaint. . . . [I]t says, ‘‘I would like to make allegations that have been made. . . . [T]he That is wrong. it abundantly clear that those who were paid speaker himself was not involved, and in fact It is wrong to submit inaccurate informa- for the course preparation were paid by ei- no effort was made to investigate the state- tion to the committee. He has accepted the ther the Kennesaw State Foundation, the ments by the attorneys at the time the let- complete responsibility for that and has Progress and Freedom Foundation, or ter was prepared. agreed to a serious sanction, that being of a GOPAC. . . .’’ I would note that I think there is a very reprimand with a reimbursement of $300,000. [T]here was no concealment that GOPAC good summary by [subcommittee Chairman The only thing I point out to you is from was participating in connection with the Porter J.] Goss [R-Fla.]: ‘‘Okay, I have only my perspective as the counsel that has re- preparation of the course and funding for the one little thought. We seem to have gotten viewed this, is that notwithstanding his posi- course. [T]hen there’s the October 31, 1994, in a situation where we know we have some tion, it is important to put that into context letter from the committee, which indicates information that is not everything we de- of what was actually transpiring at the time that the October 4th letter sufficiently an- sired it to be, and we are trying to track those letters were prepared. ... swered most of allegations raised in Mr. down why and how we got to that position. Mrs. JOHNSON of Connecticut. Mr. Jones’s complaint but then went on to note It seems that Mr. Gingrich was relying on Speaker, I yield such time as he may you and some other people to do the Decem- that there were a number of documents that consume to the gentleman from Ohio reflect the involvement of GOPAC and ber 8 letter, or his December 8 letter was GOPAC employees in developing and raising given to somebody else and they were to be [Mr. HOBSON]. the funds for the course. . . . [T]his is a shift supplemented by your firm. And your firm in (Mr. HOBSON asked and was given that occurs if you read the letters in succes- turn, by your testimony, you were relying permission to revise and extend his re- sion. Prior to this point, the focus of the pretty much on what that individual . . . was marks.) committee has squarely been on official and doing, and you were just checking it for le- Mr. HOBSON. Mr. Speaker, there has unofficial activities by a member of Con- galities rather than substance, would be sort been a lot of heated rhetoric and par- gress. At this point, the issue then becomes of the way I read your testimony; and that, tisanship in this case, as it has pro- raised relating to other issues. And if you therefore, the problem started on December 8 gressed. I think it is important that we put it in that context, you can see how the was further compounded on December 27 in letters fit together. I will note that that let- that letter because you used some of the ma- step back and focus on the case, exam- ter specifically referenced the involvement terial from the December 8 letter. Is that ine the specific charges contained in of GOPAC personnel, GOPAC fax machine, correct?’’ the statement of alleged violations. letterhead, addresses and other materials. ‘‘Yes, I agree with that characterization, The first charge is that the Speaker . . . Any suggestion that there was an effort which is, simply stated, is that the attorneys should have sought legal advice in his to conceal, or that the committee was un- became involved, they limited it to the uni- dealings with 501(c)3 organizations. The aware and the speaker was trying to take ad- verse of the information that they reviewed; second is that he gave inaccurate infor- vantage of that ignorance of GOPAC’s in- the December 8 letter was prepared; it was mation to the Select Committee on volvement, is simply directly refuted and erroneous; and then the problem was exacer- belied by the correspondence that exists in bated when the March 27 letter was submit- Ethics. Those are the charges; no more, connection with this matter. GOPAC’s in- ted, since no further investigation was done no less. volvement was clearly unequivocally known regarding it.’’ I turn to the Speaker’s response to throughout the process, being referenced by I think [Rep. Steven] Schiff’s [R-N.M.] these charges. He accepted the sub- name some 92 times. questions relating to this issue are particu- committee’s findings. He acknowledged If you then look at the time-line, you will larly important given . . . the innuendos that he should have consulted a law- see that then followed Election Day, which that . . . there was something further at issue yer, and that some of the information was November 8, 1994, at which the Repub- here in terms of an intent or scheme or plan he gave was incorrect. Since the licans captured a majority of the seats in the to deceive. Congress. The following day, the speaker Mr. Schiff asked this question: ‘‘Was there Speaker has accepted the alleged viola- began the process of transition, a hectic anything told to you that you heard directly tions, it was the job of the full commit- time. On November 15, 1994, he retained at- or indirectly, that indicated that it was the tee to determine an appropriate sanc- torneys to begin the process of assuming re- purpose of either the speaker or [Gingrich tion. January 21, 1997 CONGRESSIONAL RECORD — HOUSE H191 While the committee attempted to in this area, even two tax experts from much earlier had it not been for these work through this process there was all the same law firm. These different in- disruptions. But fortunately, due to kinds of rhetoric flying, from all sides, terpretations may give some justifica- the leadership of the Chair of the Se- of those not involved in the process. tion for Mr. GINGRICH’s actions, al- lect Committee on Ethics and the work Some called for the expulsion of the though I still believe and I believe now of the subcommittee, we are here. For Speaker, and may still do that, while that he should have consulted a tax the past 2 years, NANCY JOHNSON forced others called for a letter of reproval or lawyer. the committee to do its job. Rather even less. That may happen also. After reviewing the Speaker’s case than referring the tough issues to oth- In the end, the special counsel sub- and examining House precedents on ers to decide, she kept the committee mitted his report to the full commit- sanctions, I believe the sanction was on track and kept the pressure on the tee, and the committee supported and more harsh than the charges in the commit to resolve cases. NANCY JOHN- voted out an unprecedented sanction, case warrant. For the RECORD, I am SON, more than any other Member, has since there is no evidence that the submitting a memo which outlines the paid a heavy political price for her de- Speaker engaged in misconduct that rules and precedents on disciplinary termined service to the Select Commit- resulted in personal financial gain to sanctions. I believe a careful reading of tee on Ethics. This, in my opinion, is him. this memo supports my conclusion. absolutely totally unfair and her con- I would like to take a few moments But the Speaker accepted the charges stituents should understand the extent to discuss the counsel’s report. Mr. and the sanction against him. I believe of the partisan political forces working Cole was hired by the Select Commit- that it demonstrates to all of us and to against her. tee on Ethics as an investigator to lay the American public that he truly re- Despite the enormous pressures out the facts of the Speaker’s case. As gretted his actions and sends a message brought to bear against the Chair, the a member of the Select Committee on that the Speaker’s conduct should be Chair endured and pressed on to resolve Ethics, I understood that Mr. Cole was held to a particularly high standard, as this most difficult and contentious should every other Member’s. not hired to be a judge, nor a 501(c)3 case. But there is another message in this tax expert. In either case, it was my After 6 years, I am today leaving the for all of us as Members. The reim- Select Committee on Ethics with understanding he had no prior experi- bursement of $300,000 sets a new stand- ence. Rather, the resolution of prelimi- mixed emotions, as Mr. CARDIN also ard for the ethics process. Some may said. I think most of us getting off nary inquiry authorizing Mr. Cole’s disagree with that. It says that those employment specified that he was ap- agree. It troubles me that this case who create additional and unnecessary brought out the worst partisan rancor pointed to assist the subcommittee. work for the committee are going to and resulted in inappropriate actions of I am submitting for the RECORD the pay a price. This should also alert certain Members, but at the same time biography of B. John Williams, who those Members who trump up charge I am pleased that this case has been reserved as a judge on the U.S. Tax after charge and file frivolous com- solved in a bipartisan manner and we Court, and currently is in the Washing- plaints with the Select Committee on can move forward in the House and do ton law firm of Morgan, Lewis, and Ethics that they may be held to a simi- the work that the people sent us here Bockius, the very same law firm as Mr. lar monetary standard. Cole’s hired tax expert. There have been numerous allega- to do. In closing, as I stated earlier, I be- I am also submitting for the RECORD tions and charges filed against Mr. lieve the committee sanction was more a statement written by Mr. Williams GINGRICH over the past few years, and concerning the potential significance they have been investigated by the Se- harsh than the charges warranted but I of the American Campaign Academy lect Committee on Ethics and at an will vote for the resolution because it case, which he provided when he was enormous cost to the taxpayers. All of was the bipartisan decision reached by interviewed by the committee for the these cases have either been deemed the committee and agreed to by Mr. position of special counsel. minor or dismissed except for the cur- GINGRICH. The material referred to follows: I am going to read just a little bit rent issue. from that, but I have submitted the en- This leads me to believe that there is B. JOHN WILLIAMS, JR. tire statement as I have it for the an orchestrated effort by certain oppo- B. John Williams, Jr. is a partner in the Tax Section resident in the Washington, RECORD. sition forces, some even involving tax Mr. Williams’ quote: D.C., office. His practice focuses on federal exempt organizations to attack the tax controversies and litigation before the * * * there is an adage taught in the first Speaker. And the attacks did not stop U.S. Tax Court, U.S. Court of Federal year of law school that ‘‘hard cases make with the Speaker. For the first time in Claims, U.S. District Court, and the U.S. Cir- bad law.’’ American Campaign Academy my career on the committee, there has cuit Courts of Appeal. He also represents cli- seems to be a good example of that adage. been a relentless attack on members ents before the Internal Revenue Service and While the case reached the right result be- who serve on the Select Committee on the Treasury Department on rulings and reg- cause of the integral closeness of the Acad- Ethics, including myself. I have served ulations. emy and the Republican Party sponsorship on the Select Committee on Ethics for Mr. Williams, who is vice-chairman of the and direction, the reasoning of the case Tax Section, represented and continues to reaches the result by focusing heavily on a 6 long years. It was not until we han- represent clients in a variety of fields, in- vague term that the Court called ‘‘secondary dled the Speaker’s case that I experi- cluding the oil, coal, newspaper, consumer benefit.’’ The ‘‘secondary benefit’’ of the enced and saw the attacks on members products and construction industries. Academy’s program was the benefit to em- of the Select Committee on Ethics From 1981 through 1984, Mr. Williams ployers—Republican candidates—of the from other Members and outside served as Special Assistant to the Chief training period acquired by academy grad- groups which, I might my add, by the Counsel of the Internal Revenue Service, and uates. way also included certain tax exempt as Deputy Assistant Attorney General, Tax The court found the secondary benefit dis- groups. Division, in the Department of Justice (su- proportionately benefited Republicans as Intense political pressure was pervising five civil trial sections, the Office they were the only ones hiring the grad- of Legislation and Policy, and the Review uates. The court’s reasoning really plows un- brought to bear on the members purely Section). charted waters and leaves only ill-defined for the reason that they served on the In 1985, Mr. Williams, then a partner at notions of how to access whether recipients Select Committee on Ethics. These and Morgan Lewis was appointed by President of the secondary benefits serve the organiza- other distractions were detrimental to Ronald Reagan to the U.S. Tax Court. He tion’s exempt educational purposes. the entire process. Had these actions served with distinction on the bench where and certain other committee problems he wrote many important opinions and tried b 1315 not occurred, this case could have been several highly complex factual cases involv- My purpose for submitting Mr. Wil- resolved much earlier and been far less ing hundreds of millions of dollars in dispute and where he served on the Court’s Rules liams’ statement is not to point out disruptive to the House and the Amer- who is right or who is wrong but, rath- Committee. In March, 1990, he resigned from ican people. Fortunately that is all be- the Tax Court and re-entered the practice of er, to point out that knowledgeable hind us and we are here today. law as a partner with Morgan Lewis. people on tax issues can and will have This has been a long and difficult Mr. Williams speaks regularly before busi- different interpretations about the law case and would have been completed ness and bar groups on litigating large tax H192 CONGRESSIONAL RECORD — HOUSE January 21, 1997 cases. He has served as a panel member of If this Committee were to investigate the violation bears upon the exercise or hold- the ALI–ABA Course of Study, ‘‘How to Han- whether the colleges’ exempt purposes were ing of such right, power, privilege, or immu- dle a Tax Controversy at the IRS and in served, delicate issues arise which the Com- nity.’’ Court;’’ the Georgetown CLE program, ‘‘The mittee will most likely not be in a position Rule 20(g) also states that the above stand- Perfect Trial of a Tax Court Case;’’ and the to assess, e.g., whether ‘‘conservative’’ or ards comprise only ‘‘general guidelines’’ and Tax Executives Institute’s seminar on ‘‘liberal’’ viewpoints can be equated with do ‘‘not limit the authority of the Commit- ‘‘Strategies for Success: How to Handle an partisan positions, whether the self-selection tee to recommend other sanctions.’’ IRS Audit.’’ of an audience can constitute a cognizable II. PRECEDENT REGARDING SANCTIONS Mr. Williams is a member of the District of group that can be said to receive a private Outlined below, in escalating categories of Columbia and Pennsylvania bars, the Amer- benefit (or whether the possibility that some ican Law Institute and the American Bar As- severity, are precedents regarding sanctions in the audidence will be motivated to join recommendations by the Committee since sociation. He served as a member of the Ad- conservative or liberal causes entails a pri- visory Committee to the U.S. Court of Ap- 1967, when the Committee on Standards of vate benefit to a political party), or whether Official Conduct was established as a stand- peals for the Federal Circuit (1992–96). Mr. a tax exempt institution of higher learning Williams is noted in Who’s Who in America, ing committee of the House. Pursuant to with an established educational program House Rules, the memorandum omits men- Who’s Who in American Law and Best Lawyers loses its exempt status by presenting a polit- in America. He is a Fellow of the American tion of any case concerning a current House ical figure who offers definite views and is member. College of Tax Counsel. funded by designated contributions. These is- He received his undergraduate degree from A. Letter of reproval sues were not the subject of American Cam- George Washington University with distinc- paign Academy and to apply that case as if 1. In re Rep. Jim Bates, H. Rep. No. 101–293, tion and university honors and with depart- it were applicable precedent will not, in my 101st Cong., 1st Sess. (1989). mental honors in history; he is a member of In connection with allegations that Mem- view, answer the questions before the Com- Phi Beta Kappa and Omicron Delta Kappa. ber sexually harassed female staff in viola- mittee or serve its best interests. Mr. Williams received his law degree with tion of House Rule XLIII, Clause 9, Commit- distinction from George Washington Univer- [Memorandum] tee issued public letter of reproval directing sity where he was a member of the law re- To: Members of the House of Representa- Member to apologize to former staff. (The view. He served for two years as a law clerk tives. House took no action.) for the late Judge Bruce M. Forrester of the From: David L. Hobson, Member of Congress. 2. In re Rep. Charlie G. Rose, III, H. Rep. U.S. Tax Court. Date: January 21, 1997. No. 101–526, 100th Cong., 2d Sess. (1988). In examining the relationship between Subject: Rules and Precedents Regarding In connection with allegations that Mem- GOPAC funding and the course taught by Mr. Disciplinary Sanctions. ber borrowed campaign funds for personal Gingrich at tax exempt colleges, and taped I. LEGAL AUTHORITY TO IMPOSE DISCIPLINARY use in violation of House Rule XLIII, Clause for later broadcast distribution, the Commit- SANCTIONS 6, and filed an inadequate Financial Disclo- tee has asked about the potential signifi- sure Statement in violation of House Rule cance of American Campaign Academy, 92 The U.S. Constitution expressly authorizes the House to discipline its Members. Section XLIV, the Committee adopted a Statement T.C. 1053 (1989). In my view this case offers of Alleged Violation and issued a public let- uncertain guidance to the Committee at 5, Clause 2 of Article I states that each House ‘‘may punish its Members for disorderly Be- ter of reproval. (The Member subsequently best. repaid the funds and amended his Financial First, the task before the Committee is to havior, and, with the concurrence of two thirds, expel a Member.’’ House Rule X, Disclosure Statement.) judge the propriety of Mr. Gingrich’s behav- 3. In re Rep. Richard H. Stallings, H. Rep. ior, whereas the case has direct application Clause 4(e), authorizes the Committee on Standards of Official Conduct to investigate No. 100–382, 100th Cong., 1st Sess. (1987). only to an issue about the exempt status of In connection with allegations that Mem- the colleges at which he taught his course. any alleged violation by a Member of ‘‘the Code of Official Conduct or of any law, rule, ber borrowed from his campaign fund for The case simply does not articulate any himself and a member of his staff, the Com- principle that would condemn or exonerate regulation, or other standard of conduct applicable to the conduct of such Mem- mittee investigated and issued a public let- the presentation of Mr. Gingrich’s course ter of reproval. content. Further, the case does not provide ber. . . .’’ House Rule X, Clause 4(e) also au- any standard for determining the propriety thorizes the Committee ‘‘to recommend to B. Reprimand of Mr. Gingrich’s teaching a course, even if the House from time to time such adminis- 1. In re Rep. Austin J. Murphy, H. Rep. No. partisan in content, at a tax exempt institu- trative actions as it may deem appropriate 100–485, 100th Cong., 1st Sess. (1987). tion of higher learning. Finally, the case to establish or enforce standards of official Following an investigation and discipli- does not provide standards for condemning conduct for Members. . . .’’ nary hearing, Committee recommended rep- or exonerating the funding of the course by Committee Rule 20(e) states: rimand regarding allegations that Member: GOPAC. Assuming Mr. Gingrich’s course was With respect to any proved counts against allowed another person to cast his House partisan, and designed to be so, and further a Member of the House of Representatives, vote in violation of House Rule VIII, Clause assuming that GOPAC provided funds for the the Committee may recommend to the 1; permitted his former law firm access to of- course, American Campaign Academy would House one or more of the following sanc- ficial resources in violation of 31 U.S.C. apply, if at all, only to determining whether tions: § 1301(a), and Paragraph 5 of the Code of Eth- ‘‘no more than an insubstantial part’’ of the (1) Expulsion from the House of Represent- ics for Government Service; and maintained colleges’ activities furthered a ‘‘nonexempt atives. an employee on a committee payroll who purpose.’’ In this exercise, which seems inap- (2) Censure. was not performing duties commensurate (3) Reprimand. with the employer’s pay, in violation of propriate for the Committee, the issue would (4) Fine. require an examination of the colleges’ edu- (5) Denial or limitation of any right, House Rule XLIII, Clause 8. The House rep- cational operations and a determination that power, privilege, or immunity of the Member rimanded the Member. any private benefits conferred were more if under the Constitution the House of Rep- 2. In re Rep. George Hansen, H. Rep. No. 98– than an incidental part of the colleges’ ac- resentatives may impose such denial or limi- 891, 98th Cong., 2d Sess. (1984). Following a criminal conviction for mak- tivities and purposes. tation. Second, there is an adage taught in the (6) Any other sanction determined by the ing false statements on Financial Disclosure first year of law school that ‘‘hard cases Committee to be appropriate. Statement in violation of 18 U.S.C. § 1001, make bad law.’’ American Campaign Acad- Alternatively, the Committee may issue a Committee held inquiry and disciplinary emy seems to be a good example of that Letter of Reproval without obtaining the ap- proceeding regarding violation of House Rule adage. While the case reached the right reproval of the House if, pursuant to Commit- XLIV. Committee recommended reprimand, sult because of the integral closeness of the tee Rule 20(d), it determines that such a let- and the House concurred. Academy and Republican Party sponsorship ter ‘‘constitutes sufficient action. . . .’’ 4. In re Rep. Daniel B. Crane, H. Rep. No. and direction, the reasoning of the case Committee Rule 20(g) provides the follow- 98–296, 98th Cong., 1st Sess. (1983). reaches the result by focussing heavily on a ing guidance regarding the appropriateness In connection with allegations that Mem- vague term that the Court called ‘‘secondary of the different types of sanctions: ber had an improper sexual relationship with benefit’’. The ‘‘secondary benefit’’ of the A reprimand is appropriate for ‘‘serious a House page in violation of House Rule Academy’s program was the benefit to em- violations.’’ XLIII, Clause 1, the Committee conducted an ployers (Republican candidates) of the train- Censure is appropriate for ‘‘more serious investigation and recommended a reprimand. ing acquired by Academy graduates. The violations.’’ The House voted to censure the Member. Court found the ‘‘secondary benefit’’ dis- Expulsion is appropriate for ‘‘the most se- 5. In re Rep. Gerry E. Studds, H. Rep. No. proportionately benefited Republicans (they rious violations.’’ 98–295, 98th Cong., 1st Sess. (1983). were the only ones hiring the graduates). A monetary fine is ‘‘appropriate in a case Committee recommended reprimand fol- The Court’s reasoning really plows unin which it is likely that the violation was lowing investigation of allegations that charted waters, and it leaves only ill-defined committed to secure a personal financial Member had an improper sexual relationship notions of how to assess the whether recipi- benefit.’’ with a House page in violation of House Rule ents of the ‘‘secondary benefits’’ serve the A denial or limitation of a right, power, XLIII, Clause 1. The House voted to censure organization’s exempt educational purposes. privilege, or immunity is appropriate ‘‘when the Member. January 21, 1997 CONGRESSIONAL RECORD — HOUSE H193 6. In re Rep. John J. McFall, H. Rep. No. Court subsequently found that Member’s ex- the Speaker. Indeed that was not our 95–1742, 95th Cong., 2d Sess. (1978). pulsion was unconstitutional. charge to the committee to find that, Committee adopted Statement of Alleged D. Expulsion and we did indeed not find it. But this Violation, held a public investigative hear- 1. In re Rep. Mario Biaggi, H. Rep. No. 100– ing, and recommended reprimand concerning was about power, so when we talk 506, 100th Cong., 2d Sess. (1988). about high ethical standard, it is not allegations that Member failed to report Following a criminal conviction, the Com- campaign contribution by Tongsun Park in mittee unanimously recommended expulsion just about money; it is about what violation of House Rule XLIII, Clause 1. The in connection with charges that the Member: Members will do for power. House reprimanded the Member. accepted illegal gratuities in violation of 18 The second point is, the gentleman 7. In re Rep. Charles H. Wilson, H. Rep. No. U.S.C. § 201(g), House Rule XLIII, Clauses 1, 2, from Texas [Mr. SMITH] and the gen- 95–1741, 95th Cong., 2d Sess. (1978). and 4, and Paragraph 5 of the Code of Ethics tleman from Ohio [Mr. HOBSON] alluded In connection with allegation that Member for Government Service; and failed to report to other penalties for other violations made a false statement to the Committee gifts on Financial Disclosure Statements in of House rules. Those cases were concerning the receipt of funds from violation of House Rule XLIV. Tongsun Park, the Committee filed a State- House deferred action on expulsion resolu- brought to conclusion. Mr. GINGRICH ment of Alleged Violation, held a hearing, tion while Member defended against second admitted to these charges, thereby and recommended a reprimand. The House prosecution. The Member resigned from the freezing the record. We could possibly voted to reprimand the Member. (See discus- House. prove intent if we had the full process sion below.) 2. In re Rep. Raymond F. Lederer, H. Rep. gone through. So I want to make that 8. In re Rep. Robert L. F. Sikes, H. Rep. No. 97–110, 97th Cong., 1st Sess. (1981). distinction. No. 94–1364, 94th Cong., 2d Sess. (1976). Following a criminal conviction for brib- Mr. CARDIN. Mr. Speaker, I yield 7 Committee recommended reprimand con- ery arising out of the ‘‘ABSCAM’’ case, the cerning allegations that Member used his of- Committee held an inquiry and disciplinary minutes to the gentleman from Ohio fice to further his personal financial inter- hearing, and subsequently recommended ex- [Mr. SAWYER], a very distinguished ests in violation of Paragraph 5 of the Code pulsion, concerning allegations that the member of the Select Committee on of Ethics for Government Service and failed Member accepted money in return for prom- Ethics, who has contributed greatly to disclose stock holdings in violation of ising to use official influence, in violation of not only to this particular matter, to House Rule XVIV. The House voted to rep- House Rule XLIII, Clauses 1 through 3. The many matters before the Select Com- rimand the Member. Member resigned, and the House took no ac- mittee on Ethics. C. Censure tion. (Mr. SAWYER asked and was given 3. In re Rep. Michael J. Myers, H. Rep. No. As indicated above, the House voted for permission to revise and extend his re- censure in two 1983 cases (concerning Rep- 96–1387, 96th Cong., 2d Sess. (1980). Following a criminal conviction for brib- marks.) resentatives Crane and Studds) in which the Mr. SAWYER. Mr. Speaker, I thank Committee recommended a reprimand. Other ery arising out of the ‘‘ABSCAM’’ case, the cases resulting in censure are outlined Committee held an inquiry and disciplinary my colleague from Maryland for his below. hearing, and subsequently recommended ex- leadership in this matter and join in 1. In re Rep. Charles H. Wilson, H. Rep. No. pulsion, concerning allegations that the my colleagues in recognizing the work 96–930, 96th Cong., 2d Sess. (1980). Member accepted money in return for prom- of the subcommittee and the staff of Committee adopted Statement of Alleged ising to use official influence. The House ex- pelled the Member. the subcommittee in this difficult mat- Violation and recommended censure in con- ter. III. CASES CONCERNING FALSE STATEMENTS TO nection with allegations that Member: ac- Earlier this year, a lifelong friend of cepted gifts from a person with a direct in- THE COMMITTEE terest in legislation, in violation of House In light of Speaker Gingrich’s admission to mine was thrilled that his daughter on Rule XLIII, Clauses 1 and 4; and made per- the charges in the Statement of Alleged Vio- graduating law school was selected to sonal use of campaign funds, in violation of lation, the two 1978 cases concerning Rep- speak on behalf of her classmates in House Rule XLIII, Clause 6. The Member was resentatives Wilson and Roybal may be of terms of the kinds of things that they censured by the House. particular interest to Members of the House. had learned in the course of their time 2. In re Rep. Charles Diggs, H. Rep. No. 96– In the Roybal case, the Committee consid- together. She chose as her theme the 351, 96th Cong., 1st Sess. (1979). ered allegations that Representative Roybal nature of testimony. Following criminal convictions for mail received $1,000.00 in cash from Tungsun Park. Now, that is something that is cer- fraud (18 U.S.C. § 1341) and making false The Committee found by ‘‘clear and convinc- statements (18 U.S.C. § 1001), the Committee ing evidence’’ that Representative Roybal tainly familiar to law students and adopted Statement of Alleged Violation and knowingly gave false testimony when he de- lawyers. It is certainly familiar to all recommended censure concerning allegations nied under oath that he received a gift or of us who deal day in and day out with that Member inflated staff salaries to enable campaign contribution from Mr. Park, and testimony. But she was talking about him to pay his personal and congressional concluded that Representative Roybal’s false testimony of another kind. Her theme expenses. (Member apologized and agreed to testimony constituted a violation of House was centered on the idea that the lives make restitution.) The House unanimously Rule 43, Clause 1. In re Rep. Edward J. Roy- we lead, the sum of our actions is testi- voted to censure the Member. bal, H. Rep. No. 95–1743, 95th Cong., 2d Sess. mony to the values that we hold. That 3. In re Rep. Edward J. Roybal, H. Rep. No. 1, 3–4 (1978). The Committee recommended 95–1743, 95th Cong., 2d Sess. (1978). that the House censure Representative Roy- it is testimony to the very definition of Committee adopted Statement of Alleged bal, but the House voted to reprimand him who we are as individual actors in our Violation, held public investigative hearing, instead. public and private lives and in our cor- and recommended censure in connection In the Wilson case, the Committee found porate life here together as an institu- with allegations that Member: failed to re- that Representative Wilson knowingly made tion. port campaign contributions in violation of a false statement to the Committee in writ- It is just such a matter that brings us House Rule XVIII, Clause 1; converted cam- ing when, in a response to a Committee ques- here today to judge that kind of testi- paign funds to personal use in violation of tionnaire sent to each Member of the House, mony, a year’s work, 150,000 pages of House Rule XVIII, Clause 6; and made a false Representative Wilson denied receiving any- statement to the Committee in violation of thing of value greater than $100.00 from documents and testimony, that are House Rule XVIII, Clause 1. The House sub- Tongsun Park. In re Rep. Charles H. Wilson, themselves testimony to the work of sequently voted to reprimand the Member. H. Rep. No. 95–1741, 95th Cong., 2d Sess. 1–3 the committee, to consider the serious- (See discussion below.) (1978). After a hearing, the Committee adopt- ness of the conduct that was before us, 4. In re Rep. Adam Clayton Powell, H. Rep. ed a Statement of Alleged Violation in which the absence of care that was exercised No. 27, 90th Cong., 1st Sess. (1967). it found, by clear and convincing evidence, in that conduct, the disruption that Special Select Committee considered alle- that Representative Wilson had violated gations that Member used committee travel has been caused to this institution, and House Rule 43, Clause 1. Id. at 4–5. The Com- the cost in both monetary and ethical funds for personal travel, improperly author- mittee recommended to the House that Rep- ized clerk hire payments to his wife, and resentative Wilson be reprimanded, and the terms and the repetitive nature of the committed contempt of court by failing to House adopted that recommendation. conduct that we speak of today. comply with New York state court orders. Mr. CARDIN. Mr. Speaker, I yield 30 The subcommittee concluded that Special Select Committee recommended seconds to the gentlewoman from Cali- there were significant and substantial that Member be seated but deprived of his se- warning signals to Mr. GINGRICH that niority, that he pay restitution for improp- fornia [Ms. PELOSI]. erly authorizing the expenditure of official Ms. PELOSI. Mr. Speaker, very he should have had prior to embarking funds, and that he be censured by the House. quickly I want to make two points. on that activity. The subcommittee House voted to exclude Member, imposed a Our colleagues have talked about and the full committee and we today fine, and denied him seniority. U.S. Supreme this not being about financial gain to were faced with a disturbing choice. H194 CONGRESSIONAL RECORD — HOUSE January 21, 1997

That choice was that either Mr. GING- us all, to act on them in our lives, to less in his activities. I want to address RICH did not seek appropriate advice in have the decency to face up to the per- that head on. the action that he took or that he was sonal responsibility and to let all of b 1330 reckless in not taking care that as a our lives, not just the Speaker from Member of Congress he made sure that this point forward become testimony I spoke yesterday with the chairman his action conformed with the law that to the high standards we set for our- of the American Bar Association tax he faced. We face another disturbing selves in the public arena. committee. He is the successor to the individual who served as the tax con- choice, that Mr. GINGRICH either inten- Mrs. JOHNSON of Connecticut. Mr. sultant to the Ethics Committee. He tionally misrepresented the truth or, Speaker, I yield 13⁄4 minutes to the gen- again, that he was reckless in his dis- tleman from Maryland [Mr. told me about a recent meeting that had been held by this tax committee, regard for the nature of truth. GILCHREST]. This is at the heart of the charges Mr. GILCHREST. Mr. Speaker, I which was attended by 75 to 80 attor- that are before us. This is a serious of- thank the gentlewoman for yielding me neys. And this meeting occurred on fense. It is a serious sanction. But I the time. January the 10th of this year. He said hasten to add that it does not raise the I would like to embark on a slightly there was much discussion about the hurdle that is before us. Twenty years different dimension here, and I would facts of the case that are before us ago in the consideration of the Korean hope that all the Members would listen today, but he said, ‘‘there was no con- Influence Investigation, the ethics as to my observation of the Speaker, clusion.’’ In fact, he said, ‘‘in regard to the dis- committee produced a manual of of- what has NEWT GINGRICH done in my cussion of the facts, it was not conclu- fenses and procedures and concluded mind over the years, especially the last sive.’’ There were many different con- that, even where serious criminal sanc- 2 years as Speaker of the House of Rep- clusions. He himself went on to say tions are imposed, the law does not in- resentatives. The Speaker has created that it was, ‘‘a stretch to conclude that sist on proof of actual knowledge. a situation on the House floor where the Speaker was guilty of violating any The courts have often held that proof each Member of Congress can become a tax laws.’’ that the accused acted in reckless dis- responsible advocate for his or her po- My point here is that the tax laws regard of the facts or deliberately sition. are so unclear that, in regard to what closed his eyes to avoid obtaining My first 4 years here, I saw money the Speaker was allegedly doing, how knowledge may suffice to support a and seniority as the influencing factor in the world could anyone have in- conviction if the circumstances should in developing legislation. The Speaker, tended to violate such laws or been have alerted a responsible Member con- in my observation, changed that. Those reckless in regard to such laws. cerned about both the letter and spirit with credibility have information, and Last, I want to say that in the con- of the law to hesitate to inquire before those with information generated as a clusion of the report of the special acting, the failure of a Member to learn result of that information influence. counsel, several explanations are men- the truth should not be an excuse, and That is how a democracy is supposed to tioned to justify the severity of the then goes on to discuss that that fail- work. Those with the information have penalty that is being discussed today. ure to adhere to this higher standard is the influence, the course, the direction One of those explanations given for jus- an appropriate basis for imposing the of the legislation. tification is that ‘‘Politics and tax de- most severe sanctions available to this As a result of that, the sophistication ductible contributions are an explosive House. of the debate in my judgment has risen mix.’’ Well, of course, there is nothing As we consider all of this, I hope that very, very high, a more open and hon- new about that. we recognize that, although we have est exchange of ideas, not pummeled by Another explanation is that the heard often that this is a sad day, I political punishment by seniority or Speaker had taken an aggressive ap- want to add to that, as the gentleman power; but an exchange of ideas is what proach to the tax laws. Well, since from Florida [Mr. GOSS] suggested, democracy is all about. when have Members been penalized for that this can be a sound day if we can The debate has often been clearly taking an aggressive approach to any- draw lessons from this case, not just misunderstood as partisan politics or thing? Representative GINGRICH but all of us gridlock. This is democracy. It is dif- And last, it is said that Mr. GING- can draw lessons that ethical behavior, ficult. That exchange of ideas does not RICH’s own tax lawyer would have ad- as Ms. PELOSI suggested, is not some- take place in North Korea, Cuba, Iraq, vised him not to use a tax exempt orga- thing that we do when we are too busy. or someplace else. NEWT GINGRICH has nization. But lawyers are risk-averse. It represents the way we live our lives not aspired to power in this House or They are paid to be cautious. They are together, that ethics is not a matter of this country like many others in this worried about malpractice suits. If cutting corners or pressing for an un- place have done, buttressed by arro- they think there is 1 chance out of 100 fair advantage or that seeks to blur the gance, dogma, and ignorance. In my that their client might get in trouble, truth or that seeks to find an entre- judgment, in my observation, NEWT they are going to recommend against preneurial expression in the way we GINGRICH has sought to reveal his vi- that supposed action. conduct our business here but, rather, sion for America. This is what democ- The point here is that, just because ethical behavior may be even more im- racy is about. the Speaker did not consult an attor- portant to us all when the lines are Mrs. JOHNSON of Connecticut. Mr. ney, is that reckless? Is that reason blurred than when they are clear. Speaker, might I inquire as to the time enough to give him the severe penalty This is not a matter of personal gain remaining on both sides? of a reprimand? to the Speaker. It is a matter of ethical The SPEAKER pro tempore (Mr. BE- And, furthermore, let me end on a loss to us all if we do not recognize the REUTER). The gentlewoman from Con- question that I would pose to other importance of what is before us here necticut [Mrs. JOHNSON] has 93⁄4 min- Members of the House, and that is, Do today. We are all diminished by a vio- utes remaining, and the gentleman we want to be judged by the same lation of ethical standards, and we are from Maryland [Mr. CARDIN] has 8 min- standards that we are judging the all elevated by their careful and caring utes remaining. Speaker by today? observation. Mrs. JOHNSON of Connecticut. Mr. Mr. CARDIN. Mr. Speaker, I yield 1 In that sense, in conclusion, Mr. Speaker, I yield 3 minutes to the gen- minute to the distinguished gentleman Speaker, this can be a unique day. It tleman from Texas [Mr. SMITH]. from New York [MR. RANGEL]. will be in one sense the worst thing Mr. SMITH of Texas. Mr. Speaker, I (Mr. RANGEL asked and was given that we have ever done to a Speaker of thank the Chair again for yielding me permission to revise and extend his re- the House of Representatives. But it the time. marks.) can also be one of the very best things There has been much discussion this Mr. RANGEL. Mr. Speaker, I gather that ever happened in his life and in afternoon about the tax issues in this that most of the Members, Democrat fact in all of our lives if he and we take case. There has been an assertion made and Republican, are very anxious to the lessons of this day to heart, recog- that the Speaker supposedly intended put the heat and passion of our par- nize them as personal obligations for to violate tax laws or that he was reck- tisanship behind us and to get on and January 21, 1997 CONGRESSIONAL RECORD — HOUSE H195 legislate as the American people would work that the committee has put into What he is being charged with today want us to do. God knows I have con- this recommendation. But I must agree is during the process he happened to tributed my share toward that heat with my colleague from Texas, Mr. screw up. That is what is going on here. and passion, and make no apologies for SMITH, the only member of the com- I just find that really sad that we have my partisanship. But we cannot have it mittee who voted against that rec- abused the process like this. both ways. We cannot say that he pled ommendation. I believe that this pun- This Speaker has had every detail of guilty but he did not do anything. ishment is too harsh given the history his life examined under a microscope, For those people who want to pursue of the ethics process and the prece- and that microscope has exposed some outside issues, I beg them not to think dence of earlier punishments. flaws, some sloppiness, some things about doing it. If we want to inves- Such a punishment is not only un- that should have been done better; but tigate who was coercing members of precedented and can be levied on every it has not exposed corruption or law- the committee, then maybe we will in- one of us, it is unwarranted. I will not lessness or personal profit. And that is vestigate who asked them how they vote to reprimand NEWT GINGRICH for what reprimands and censures are all were going to vote on the question of transgressions that in the past have about. The highest possible standard the Speaker. only warranted either warnings or let- does not mean an impossible standard Who is talking about taxes? The Se- ters of reproval from the Committee on that no American could reach. lect Committee on Ethics had no right Standards of Official Conduct. Let us stop using the ethics process to go into tax issues. That is for the In- Now, I understand the Speaker’s for political vendettas. Let us not cre- ternal Revenue Service; that is for the noble motivation in working out a set- ate precedence that will only serve to Federal Bureau of Investigation, and tlement in this case, and I understand undermine the service of this country. they have the responsibility to do that. why and how the committee came to Let us stop this madness. Let us stop The Speaker is intelligent. He is an this end and the Speaker came to this the cannibalism. intellectual. He read the charges. He end; but we have to put it in perspec- Let us not fall victim to unrealistic said he brought discredit upon this tive. The gentleman from Missouri, the expectations that do not forgive the House. For God’s sake, let us get on minority leader, Mr. GEPHARDT, re- common flaws of normal Americans. with it. ceived a letter from the Committee on With all due respect to the great Mr. CARDIN. Mr. Speaker, I yield 1 Standards of Official Conduct for giv- work of the Ethics Committee, I can- minute to the distinguished gentleman ing false information to the committee not vote to reprimand the Speaker of from Ohio [Mr. TRAFICANT]. not intentionally. The chairman of the the House for the stated trans- Mr. TRAFICANT. Mr. Speaker, I sa- DCCC received a letter from this Com- gressions. lute the Republicans for their loyalty mittee on Standards of Official Con- Mr. CARDIN. Mr. Speaker, I yield to their Speaker and their unity. The duct because he did not intentionally myself the balance of my time. facts are clear, Democrats: 7 years ago use a Federal employee for campaign Mr. Speaker, I agree with the chair- the Democrats abandoned Jim Wright; purposes. woman of our committee. These are Those are letters of reproval, and I today the Republicans rescue NEWT very tough penalties, and the violation submit that both of those actions are GINGRICH. I commend them. of the rules justify these tough sanc- Let me say this. The bottom line, worse than what NEWT GINGRICH has tions. folks, is this is not Rotary; this is poli- owned up to. The sanctions are being rec- Now, for what kind of violations has tics. If Democrats are going to win ommended not because Mr. GINGRICH is this House put reprimands on Mem- back the majority, I think we should the Speaker of the House. They are bers? Hiring the wrong lawyer? Sub- being recommended because Mr. GING- not only do that but maybe expend a mitting or being sloppy about submis- RICH is a Member of this House. These little bit of time on creating jobs in the sions to the committee? No. Rep- sanctions would be appropriate for any country. It might serve a better pur- rimands have been used for things such Member of this House who committed pose. as using political influence to fix park- the violations that have now been es- I want to close today by commending ing tickets for personal friends; rep- tablished by the Committee on Stand- all of the leaders and all of the mem- rimands or recommendations of rep- ards of Official Conduct and have now bers of the committee. They are to be rimand by the committee for improper been admitted to by Mr. GINGRICH. commended. I will support their deci- sexual relationships with pages; rep- Mr. GINGRICH made a decision that sion. But let me say this: I hope that rimand for intentionally lying to the any Member has the right to make. He today’s events serve to bring some committee. form of historical fairness and perspec- This committee has not found this has admitted to the charges. He has tive to our fine former Democrat Speaker has intentionally lied or in- done that in order to avoid the neces- Speaker, Jim Wright. tentionally misled the committee. sity of a trial. That is his decision, and Mrs. JOHNSON of Connecticut. Mr. This is, I say to the gentlewoman one which I think we all must respect, Speaker, how much time is remaining? from California, Mr. Speaker, this is but the underlying facts as to why this The SPEAKER pro tempore [Mr. BE- about power. This is about some on sanction is so severe, I think, will be- REUTER]. The gentlewoman from Con- this side have lost power and they are come obvious to any one of us if we necticut [Mrs. JOHNSON] has 7 minutes trying to regain it by abusing the eth- will read the report of the special coun- remaining, and the gentleman from ics process and this institution. That is sel which now has been approved not Maryland [Mr. CARDIN] has 6 minutes what this is all about. only by the bipartisan investigative remaining. So, I do not agree that the Speaker committee but by the full Committee Mrs. JOHNSON of Connecticut. Mr. should be held to a higher standard. All on Standards of Official Conduct. Speaker, I yield 41⁄2 minutes to the gen- of us, all of us, every Member, should It points to the fact that this was not tleman from Texas [Mr. DELAY]. be held to the highest of standards. a college course. It was a course con- Mr. DELAY. Mr. Speaker, I thank the This Speaker and any other Member ceived within a political movement. chairman for giving me this time. should not be held to a double stand- Read pages 38 and 39. It was conceived Last week, Mr. Speaker, I was pre- ard. This is a double standard that we in a political movement. It was con- pared to vote for a reprimand, but then are imposing on this Speaker. ceived as the only way, according to I found out that it is more than a rep- In fact, we know it because this Mr. GINGRICH, to get the message out, rimand; it is now a reimbursement plus Speaker has been prodded and probed to get the political message out. a reprimand. And I cannot take what I from every direction. Since 1989 he has I appreciate the comments of my col- was going to take, a political decision, had over 500 ethics charges brought league from Maryland, Mr. GILCHREST, when I feel strongly, feel very strongly, against him. In the last 2 years he has but we do not use tax exempt organiza- that it is not right. had 74 ethics charges brought against tions to get a political message out. I Now, I have the greatest respect for him. You know what? Nothing has been appreciate the comments of the gen- the chairwoman of the Committee on brought to this floor to bring a sanc- tleman from Texas, Mr. SMITH, about Standards of Official Conduct, NANCY tion against anything that he has been the meeting of tax lawyers. In all due JOHNSON, and I appreciate all the hard charged with. respect, this report was just released 4 H196 CONGRESSIONAL RECORD — HOUSE January 21, 1997 days ago. The facts and circumstances constitutional responsibilities, to cost assessment, that is, the reimbursement of are just now known to the American judge the conduct of our own Members, $300,000 should be paid. people. The political motivation and and we have done that, and we have The reprimand for Congressman GINGRICH the action on that political motivation reached an agreement, and the agree- and the $300,000 cost assessment represent is now just known by the American ment is right, and Mr. GINGRICH has a serious penalty and one in which I concur. people. agreed on that assessment. Now it is However, while this resolution leaves repay- Mr. GINGRICH commingled tax ex- time for us to do right as a full House. ment to the Speaker's discretion, I personally empt organizations with his political It is time for us to support the rec- believe, and would advise, that payment be agenda. He did it because he could not ommendations of the Ethics Commit- made from the Speaker's personal funds and raise enough money in the political tee to send a very clear message that not from any political action committee or PAC’s. That is part of our record. This every Member of this House must ad- other campaign account. was a new way to raise money, a new here to the highest standards when it I would advise the Speaker that payment of avenue in which he could promise his comes to their personal conduct that this cost assessment from his personal funds contributors a tax exemption to boot. can bring discredit to this House and to would at least begin to rehabilitate this House That is wrong. He did it because he their conduct with the Ethics Commit- and the ethics process to which we are all ac- needed the money in order to get his tee and the information that they countable. political message out. And that is make available to our committee. wrong. I urge my colleagues to support this This vote today is conclusion of a sad chap- There is ample evidence here that tax recommendation. Let us approve it ter in the ethical history of the U.S. House. laws were violated, and it is not a close overwhelmingly and then, yes, let us With this vote, we should move beyond par- case, but we do not need to reach that get on with the business of this House, tisanship and attend with seriousness of pur- conclusion. As the special counsel’s re- Democrats and Republicans working pose and probity to the people's business in port concludes, this is a bipartisan con- together to do the people’s business. the highest tradition of American democracy. clusion, Mr. GINGRICH should have Mrs. JOHNSON of Connecticut. Mr. This is now our ethical challengeÐa chal- sought tax advice. The reason he did Speaker, I yield 1 minute to the gen- lenge upon which the public will ultimately not seek that tax advice was either tleman from New Mexico [Mr. SCHIFF]. judge us. that he knew it would be wrong and he Mr. SCHIFF. Mr. Speaker, I have to Mrs. JOHNSON of Connecticut. Mr. did not want to get that advice or he say that I do not think it is an accu- Speaker, I yield myself the balance of was reckless in his conduct. rate portrayal of the matters that my time. Make no mistake about this. This is bring us to the House floor today and Mr. Speaker, today we take final ac- reckless conduct, at least reckless con- that are about to bring us to a vote to tion on the Gingrich case. I believe pas- duct, over a long period of time dating selectively choose facts in a long inves- sage of the tough, unprecedented pen- back 5 years, involving four tax exempt tigative process. I cannot say that any- alty package is appropriate and I also organizations costing taxpayers hun- thing the gentleman from Maryland believe it can be one important step to- dreds of thousands of dollars of legiti- [Mr. CARDIN] just rendered was inac- ward restoring pride and confidence in mate tax needs. curate if taken by itself. But these the people’s House of the U.S. Con- But there is more to this case than things are not taken by themselves. gress. But as important as this vote is just the tax issues. We have letters Also in the special counsel’s report is today, no single vote can renew public that misled the Committee on Stand- the quotation of another tax expert confidence in this institution. Rather, ards of Official Conduct. As the special who said he did not think that there each Member of this House must take counsel has pointed out, there is ample was a violation of 501(c)3 laws in any personal responsibility to restore civil- evidence, there is significant evidence way. There was no abuse of the tax ity and mutual respect to our delibera- here that he intentionally did this. No, laws. It was his opinion that as long as tions. The American people are bone we do not reach that conclusion. The the content of the Speaker’s course as tired of partisanship. They want us to record was frozen by his admission. But a college course was pure of political work together, and I believe most we do reach the conclusion that this involvement, then anyone could use it Members of this House are yearning to was either intentional conduct to mis- anyway they wanted to, and not even return to the deliberative process that lead this House and the ethics process the worst critic of the Speaker we alone produces good public policy. We or it was reckless conduct. heard from challenged the fact that the were elected Republicans and Demo- Now, that is more than innocent mis- course itself contained no partisan di- crats but the core of democracy is takes. We have reached conclusions rectives to the class, that it was a le- building bipartisan consensus by ma- that these are not just innocent mis- gitimate college course. turing the best ideas from both parties takes. Mr. GINGRICH’s explanation that I urge the Members to adopt the rec- into responsible, effective solutions. he is sensitive to the ethics process, he ommendation of the committee. Today we conclude this case by impos- was embarrassed, and he came forward Mrs. JOHNSON of Connecticut. Mr. ing a heavy penalty on the leader of as soon as he knew they were in error, Speaker, I yield such time as she may this House. It is a tough penalty, unjust does not wash with the record that consume to the gentlewoman from New precedented and appropriate. But if our has been presented to you today. There Jersey [Mrs. ROUKEMA]. action fails today to chasten this body is more to it than that, and the special (Mrs. ROUKEMA asked and was and bring a halt to the crippling par- counsel’s record reflects that, and we given permission to revise and extend tisanship and animosity that has sur- need to take cognizance of that. her remarks.) rounded us, then we will have lost an So we have a series of conduct that Mrs. ROUKEMA. I thank the gentle- opportunity to grow and learn from was either reckless or intentional and woman for yielding me this time. this solemn occasion, and that would it cost this House and our reputation Mr. Speaker, I rise in strong support be a tragedy. dearly. That is why the sanction is be- of the Ethics Committee report. It is a fore us. serious and appropriate sanction. I I ask for your support of the biparti- urge that it have the same bipartisan san recommendation of the Ethics b 1345 support on the vote of this House. Committee. Not because he is Speaker of the Mr. Speaker, I support the report of the Mr. CARDIN. Mr. Speaker, I ask House but because a Member of the Committee on Standards of Official Conduct, unanimous consent that the report of House has brought disgrace to this the Ethics Committee, and urge its adoption the Select Committee on Ethics be Chamber. recognizing that it will close a sad chapter in made a part of the RECORD. I am proud of the fact that we have a the history of this House. This is a serious and The SPEAKER pro tempore (Mr. BE- bipartisan recommendation here today. an appropriate sanction, as stated by Rep- REUTER). Is there objection to the re- That is very important. The process resentative PORTER GOSS, the chairman of the quest of the gentleman from Maryland? has worked. Democrats and Repub- Investigative Subcommittee. However, left licans have come together and have unstated in this report and unresolved by the There was no objection. performed one of their most important committee is the means by which the fine or The report is as follows: January 21, 1997 CONGRESSIONAL RECORD — HOUSE H197 IN THE MATTER OF REPRESENTATIVE (4) Whether Representative Gingrich’s ac- liminary Inquiry. After receiving the discus- NEWT GINGRICH tivities on behalf of the Abraham Lincoln sion documents, the Subcommittee met to I. INTRODUCTION Opportunity Foundation violated its status discuss the legal and factual questions at A. Procedural Background under 501(c)(3) of the Internal Revenue Code issue. and related regulations or whether the Abra- In most investigations, people who were in- On September 7, 1994, a complaint was filed volved in the events under investigation are with the Committee on Standards of Official ham Lincoln Opportunity Foundation violated its status with the knowledge and ap- interviewed and asked to describe the events. Conduct (‘‘Committee’’) against Representa- This practice has some risk with respect to tive Newt Gingrich by Ben Jones, Mr. Ging- proval of Representative Gingrich (House the reliability of the evidence gathered be- rich’s opponent in his 1994 campaign for re- Rule 43, Cl. 1). cause, for example, memories fade and can election. The complaint centered on a course As discussed below, the Subcommittee is- change when a matter becomes controversial taught by Mr. Gingrich called ‘‘Renewing sued a Statement of Alleged Violation with and subject to an investigation. One advan- American Civilization.’’ Among other things, respect to the initial allegation pertaining tage the Subcommittee had in this investiga- the complaint alleged that Mr. Gingrich had to Renewing American Civilization and also tion was the availability of a vast body of used his congressional staff to work on the with respect to items 1 and 4 above. The Sub- documentation from multiple sources that course in violation of House Rules. The com- committee did not find any violations of had been created contemporaneously with plaint also alleged that Mr. Gingrich had House Rules in regard to the issues set forth the events under investigation. A number of created a college course under the sponsor- in items 2 and 3 above. The Subcommittee, ship of 501(c)(3) organizations in order ‘‘to however, decided to recommend that the full documents central to the analysis of the meet certain political, not educational, ob- Committee make available to the IRS docu- matter, in fact, had been written by Mr. jectives’’ and, therefore, caused a violation ments produced during the Preliminary In- Gingrich. Thus, the documents provided a of section 501(c)(3) of the Internal Revenue quiry for use in its ongoing inquiries of unique, contemporaneous view of people’s Code to occur. In partial support of the alle- 501(c)(3) organizations. In regard to item 3 purposes, motivations, and intentions with gation that the course was a partisan, politi- above, the Subcommittee decided to issue respect to the facts at issue. This Report re- cal project, the complaint alleged that the some advice to Members concerning the lies heavily, but not exclusively, on an anal- course was under the control of GOPAC, a proper use of outside consultants for official ysis of those documents to describe the acts, political action committee of which Mr. purposes. as well as Mr. Gingrich’s purpose, motiva- Gingrich was the General Chairman. On January 7, 1997, the House conveyed the tions, and intentions. Mr. Gingrich responded to this complaint matter of Representative Newt Gingrich to As the Report proceeds through the facts, in letters dated October 4, 1994, and Decem- the Select Committee on Ethics by its adop- there is discussion of conservative and Re- ber 8, 1994, but the matter was not resolved tion of clause 4(e)(3) of rule X, as contained publican political philosophy. The Commit- before the end of the 103rd Congress. On Jan- in House Resolution 5. tee and the Special Counsel, however, do not uary 26, 1995, Representative David Bonior On January 17, 1997, the Select Committee take any positions with respect to the valid- filed an amended version of the complaint on Ethics held a sanction hearing in the ity of this or any other political philosophy, originally filed by Mr. Jones. It restated the matter pursuant to committee rule 20. Fol- nor do they take any positions with respect allegations concerning the misuse of tax-ex- lowing the sanction hearing, the Select Com- to the desirability of the dissemination of empt organizations and contained additional mittee ordered a report to the House, by a this or any other political philosophy. Mr. allegations. Mr. Gingrich responded to that roll call vote of 7–1, recommending that Rep- Gingrich’s political philosophy and its dis- complaint in a letter from his counsel dated resentative Gingrich be reprimanded and or- semination is discussed only insofar as it is March 27, 1995. dered to reimburse the House for some of the necessary to examine the issues in this mat- On December 6, 1995, the Committee voted costs of the investigation in the amount of ter. to initiate a Preliminary Inquiry into the al- $300,000. The following Members voted aye: C. Summary of the Subcommittee’s Factual legations concerning the misuse of tax-ex- Mrs. Johnson of Connecticut, Mr. Goss, Mr. Findings empt organizations. The Committee ap- Schiff, Mr. Cardin, Ms. Pelosi, Mr. Borski, The Subcommittee found that in regard to pointed an Investigative Subcommittee and Mr. Sawyer. The following Member two projects, Mr. Gingrich engaged in activ- (‘‘Subcommittee’’) and instructed it to: devoted no: Mr. Smith of Texas. ity involving 501(c)(3) organizations that was termine if there is reason to believe that The adoption of this report by the House substantially motivated by partisan, politi- Representative Gingrich’s activities in rela- shall constitute such a reprimand and order cal goals. The Subcommittee also found that tion to the college course ‘‘Renewing Amer- of reimbursement. Accordingly, the Select Mr. Gingrich provided the Committee with ican Civilization’’ were in violation of sec- Committee recommends that the House material information about one of those tion 501(c)(3) or whether any foundation adopt a resolution in the following form. projects that was inaccurate, incomplete, qualified under section 501(c)(3), with respect HOUSE RESOLUTION — and unreliable. to the course, violated its status with the 1. AOW/ACTV knowledge and approval of Representative Resolved, That the House adopt the report Gingrich * * *. of the Select Committee on Ethics dated The first project was a television program The Committee also resolved to appoint a January 17, 1997, In the Matter of Represent- called the American Opportunities Workshop Special Counsel to assist in the Preliminary ative Newt Gingrich. (‘‘AOW’’). It took place in May 1990. The idea Inquiry. On December 22, 1995, the Commit- Statement Pursuant to Clause 2(l)(3)(A) of for this project came from Mr. Gingrich and tee appointed James M. Cole, a partner in Rule XI he was principally responsible for developing its message. AOW involved broadcasting a the law firm of Bryan Cave LLP, as the Spe- No oversight findings are considered perti- television program on the subject of various cial Counsel. Mr. Cole’s contract was signed nent. governmental issues. Mr. Gingrich hoped January 3, 1996, and he began his work. B. Investigative Process On September 26, 1996, the Subcommittee that this program would help create a ‘‘citi- announced that, in light of certain facts dis- The investigation of this matter began on zens’ movement.’’ Workshops were set up covered during the Preliminary Inquiry, the January 3, 1996, and lasted through Decem- throughout the country where people could investigation was being expanded to include ber 12, 1996. In the course of the investiga- gather to watch the program and be re- the following additional areas: tion, approximately 90 subpoenas or requests cruited for the citizens’ movement. While (1) Whether Representative Gingrich pro- for documents were issued, approximately the program was educational, the citizens’ vided accurate, reliable, and complete infor- 150,000 pages of documents were reviewed, movement was also considered a tool to re- mation concerning the course entitled ‘‘Re- and approximately 70 people were inter- cruit non-voters and people who were apoliti- newing American Civilization,’’ GOPAC’s reviewed. Most of the interviews were con- cal to the Republican Party. The program lationship to the course entitled ‘‘Renewing ducted by Mr. Cole outside the presence of was deliberately free of any references to Re- American Civilization,’’ or the Progress and the Subcommittee. A court reporter tran- publicans or partisan politics because Mr. Freedom Foundation in the course of com- scribed the interviews and the transcripts Gingrich believed such references would dis- municating with the Committee, directly or were made available to the Members of the suade the target audience of non-voters from through counsel (House Rule 43, Cl. 1); Subcommittee. Some of the interviews were becoming involved. (2) Whether Representative Gingrich’s re- conducted before the Members of the Sub- AOW started out as a project of GOPAC, a lationship with the Progress and Freedom committee primarily to explore the issue of political action committee dedicated to, Foundation, including but not limited to his whether Mr. Gingrich had provided the Com- among other things, achieving Republican involvement with the course entitled ‘‘Re- mittee, directly or through counsel, inac- control of the United States House of Rep- newing American Civilization,’’ violated the curate, unreliable, or incomplete informa- resentatives. Its methods for accomplishing foundation’s status under 501(c)(3) of the In- tion. this goal included the development and ar- ternal Revenue Code and related regulations During the Preliminary Inquiry, Mr. Cole ticulation of a political message and the dis- (House Rule 43, Cl. 1); interviewed Mr. Gingrich twice and Mr. semination of that message as widely as pos- (3) Whether Representative Gingrich’s use Gingrich appeared before the Subcommittee sible. One such avenue of dissemination was of the personnel and facilities of the twice. Several draft discussion documents, AOW. The program, however, consumed a Progress and Freedom Foundation con- with notebooks of exhibits, were prepared for substantial portion of GOPAC’s revenues. stituted a use of unofficial resources for offi- the Subcommittee in order to brief the Mem- Because of the expense, Mr. Gingrich and cial purposes (House Rule 45); and bers on the findings and status of the Pre- others at GOPAC decided to transfer the H198 CONGRESSIONAL RECORD — HOUSE January 21, 1997 project to a 501(c)(3) organization in order to sage via the course in that the message 3. FAILURE TO SEEK LEGAL ADVICE attract tax-deductible funding. The 501(c)(3) GOPAC had adopted and determined to be Under the Internal Revenue Code, a organization chosen was the Abraham Lin- the one that would help it achieve its goals 501(c)(3) organization must be operated ex- coln Opportunity Foundation (‘‘ALOF’’). was broadcast widely and at no cost to clusively for exempt purposes. The presence ALOF was dormant at the time and was re- GOPAC. of a single non-exempt purpose, if more than vived to sponsor AOW’s successor, American The course was taught at Kennesaw State insubstantial in nature, will destroy the ex- Citizens’ Television (‘‘ACTV’’). ALOF oper- College (‘‘KSC’’) in 1993 and at Reinhardt emption regardless of the number or impor- ated out of GOPAC’s offices. Virtually all its College in 1994 and 1995. Each course con- tance of truly exempt purposes. Conferring a officers and employers were simultaneously sisted of ten lectures and each lecture con- benefit on private interests is a non-exempt sisted of approximately four hours of class- GOPAC officers or employees. ACTV had the purpose. Under the Internal Revenue Code, a room instruction, for a total of forty hours. same educational aspects and partisan, polit- 501(c)(3) organization is also prohibited from Mr. Gingrich taught twenty hours of each ical goals as AOW. The principal difference intervening in a political campaign or pro- course and his co-teacher, or occasionally a between the two was that ACTV used ap- viding any support to a political action com- guest lecturer, taught twenty hours. Stu- proximately $260,000 in tax-deductible con- mittee. These prohibitions reflect congres- dents from each of the colleges as well as tributions to fund its operations. ACTV sional concerns that taxpayer funds not be people who were not students attended the broadcast three television programs in 1990 used to subsidize political activity. lectures. Mr. Gingrich’s 20-hour portion of and then ceased operations. The last pro- During the Preliminary Inquiry, the Sub- the course was taped and distributed to re- gram was funded by a 501(c)(4) organization committee consulted with an expert in the mote sites, referred to as ‘‘site hosts,’’ via because the show’s content was deemed to be law of tax-exempt organizations and read too political for a 501(c)(3) organization. satellite, videotape and cable television. As with AOW/ACTV, Renewing American Civili- materials on the subject. Mr. Gingrich’s ac- 2. RENEWING AMERICAN CIVILIZATION zation involved setting up workshops around tivities on behalf of AOW/ACTV and Renew- The second project utilizing 501(c)(3) orga- the country where people could gather to ing American Civilization, as well as the ac- nizations involved a college course taught by watch the course. While the course was edu- tivities of others on behalf of those projects Mr. Gingrich called Renewing American Civ- cational, Mr. Gingrich intended that the done with Mr. Gingrich’s knowledge and ap- ilization. Mr. Gingrich developed the course workshops would be, among other things, a proval, were reviewed by the expert. The ex- as a subset to and tool of a larger political recruiting tool for GOPAC and the Repub- pert concluded that those activities violated and cultural movement also called Renewing lican Party. the status of the organizations under section American Civilization. The goal of this The major costs for the Renewing Amer- 501(c)(3) in that, among other things, those movement, as stated by Mr. Gingrich, was ican Civilization course were for dissemina- activities were intended to confer more than the replacement of the ‘‘welfare state’’ with tion of the lectures. This expense was pri- insubstantial benefits on GOPAC, Mr. Ging- an ‘‘opportunity society.’’ A primary means marily paid for by tax-deductible contribu- rich, and Republican entities and candidates, of achieving this goal was the development tions made to the 501(c)(3) organizations that and provided support to GOPAC. of the movement’s message and the dissemi- sponsored the course. Over the three years At Mr. Gingrich’s request, the Subcommit- nation of that message as widely as possible. the course was broadcast, approximately $1.2 tee also heard from tax counsel retained by Mr. Gingrich intended that a ‘‘Republican million was spent on the project. The Ken- Mr. Gingrich for the purposes of the Prelimi- majority’’ would be the heart of the move- nesaw State College Foundation (‘‘KSCF’’) nary Inquiry. While that counsel is an expe- ment and that the movement would ‘‘profes- sponsored the course the first year. All funds rienced tax attorney with a sterling reputa- sionalize’’ House Republicans. A method for raised were turned over to KSCF and dedi- tion, he has less experience in dealing with achieving these goals was to use the move- cated exclusively for the use of the Renewing tax-exempt organizations law than does the ment’s message to ‘‘attract voters, re- American Civilization course. 1 KSCF did expert retained by the Subcommittee. Ac- sources, and candidates.’’ According to Mr. not, however, manage the course and its role cording to Mr. Gingrich’s tax counsel, the Gingrich, the course was, among other was limited to depositing donations into its type of activity involved in the AOW/ACTV things, a primary and essential means to de- bank account and paying bills from that ac- and Renewing American Civilization projects velop and disseminate the message of the count that were presented to it by the Dean would not violate the status of the relevant movement. of the KSC Business School. KSCF con- organizations under section 501(c)(3). He The core message of the movement and the tracted with the Washington Policy Group, opined that once it was determined that an course was that the welfare state had failed, Inc. (‘‘WPG’’) to manage and raise funds for activity was ‘‘educational,’’ as defined by the that it could not be repaired but had to be the course’s development, production and IRS, and did not have the effect of benefiting replaced, and that it had to be replaced with distribution. Jeffrey Eisenach, GOPAC’s Ex- a private interest, it did not violate the pri- an opportunity society based on what Mr. ecutive Director from June 1991 to June 1993 vate benefit prohibition. In the view of Mr. Gingrich called the ‘‘Five Pillars of Amer- was the president and sole owner of WPG. Gingrich’s tax counsel, motivation on the ican Civilization.’’ These were: (1) personal WPG and Mr. Eisenach played similar roles part of an organization’s principals and strength; (2) entrepreneurial free enterprise; with respect to AOW/ACTV. agents is irrelevant. Further, he opined that (3) the spirit of invention; (4) quality as de- When the contract between WPG and a 501(c)(3) organization does not violate the fined by Edwards Deming; and (5) the lessons KSCF ended in the fall of 1993, the Progress private benefit prohibition or political cam- of American history. The message also con- and Freedom Foundation (‘‘PFF’’) assumed paign prohibition through close association centrated on three substantive areas. These the role WPG had with the course at the with or support of a political action commit- were: (1) jobs and economic growth; (2) same rate of compensation. Mr. Eisenach tee unless it specifically calls for the elec- health; and (3) saving the inner city. was PFF’s founder and president. Shortly tion or defeat of an identifiable political can- This message was also Mr. Gingrich’s main after PFF took over the management of the didate. campaign theme in 1993 and 1994 and Mr. course, the Georgia Board of Regents passed Both the Subcommittee’s tax expert and Gingrich sought to have Republican can- a resolution prohibiting any elected official Mr. Gingrich’s tax counsel, however, agreed didates adopt the Renewing American Civili- from teaching at a Georgia state educational that had Mr. Gingrich sought their advice zation message in their campaigns. In the institution. This was the culmination of a before embarking on activities of the type context of political campaigns, Mr. Gingrich controversy that had arisen around the involved in AOW/ACTV and the Renewing used the term ‘‘welfare state’’ as a negative course at KSC. A group of KSC faculty had American Civilization course, each of them label for Democrats and the term ‘‘oppor- objected to the course being taught on the would have advised Mr. Gingrich not to use tunity society’’ as a positive label for Repub- campus because of a belief that it was an ef- a 501(c)(3) organization as he had in regard to licans. fort to use the college to disseminate a polit- those activities. The Subcommittee’s tax ex- As General Chairman of GOPAC, Mr. Ging- ical message. Because of the Board of Re- pert said that doing so would violate rich decided that GOPAC would use Renew- gent’s decision and the controversy, it was 501(c)(3). During his appearance before the ing American Civilization as its political decided that the course would be moved to a Subcommittee, Mr. Gingrich’s tax counsel message and theme during 1993–1994. GOPAC, private college. said that he would not have recommended however, was having financial difficulties The course was moved to Reinhardt for the the use of 501(c)(3) organizations to sponsor and could not afford to disseminate its polit- 1994 and 1995 sessions. While there, PFF as- the course because the combination of poli- ical messages as it had in past years. GOPAC sumed full responsibility for the course. PFF tics and 501(c)(3) organizations is an ‘‘explo- had a number of roles in regard to the no longer received payments to run the sive mix’’ almost certain to draw the atten- course. For example, GOPAC personnel course but, instead, took in all contributions tion of the IRS. helped develop, manage, promote, and raise to the course and paid all the bills, including Based on the evidence, it was clear that funds for the course. GOPAC Charter Mem- paying Reinhardt for the use of the college’s Mr. Gingrich intended that the AOW/ACTV bers helped develop the idea to teach the video production facilities. All funds for the and Renewing American Civilization projects course as a means for communicating course were raised by and expended by PFF have substantial partisan, political purposes. GOPAC’s message. GOPAC Charter Members under its tax-exempt status. In addition, he was aware that political ac- at Charter Meetings helped develop the con- tivities in the context of 501(c)(3) organiza- tent of the course. GOPAC was ‘‘better off’’ 1 As general management and support fees, KSCF tions were problematic. Prior to embarking as a result of the nationwide dissemination kept 2.5% of any money raised and KSC’s Business on these projects, Mr. Gingrich had been in- of the Renewing American Civilization mes- School kept 7.5% of any money raised. volved with another organization that had January 21, 1997 CONGRESSIONAL RECORD — HOUSE H199 direct experience with the private benefit cal, and that GOPAC had no involvement in As important as the creation of new doc- prohibition in a political context, the Amer- nor received any benefit from any aspect of trine is its dissemination. During the 1980s ican Campaign Academy. In a 1989 Tax Court the course. In his testimony before the Sub- GOPAC and Newt Gingrich have led the way opinion issued less than a year before Mr. committee Mr. Gingrich admitted that these in applying new technology, from C–SPAN to Gingrich set the AOW/ACTV project into mo- statements were not true. video tapes, to disseminate information to tion, the Academy was denied its exemption The goal of the letters was to have the Republican candidates and political activ- under 501(c)(3) because, although edu- complaints dismissed. Of the people involved ists. cational, it conferred an impermissible pri- in drafting or editing the letters, or review- * * * * * vate benefit on Republican candidates and ing them for accuracy, only Mr. Gingrich But the Mission Statement demands that entities. Close associates of Mr. Gingrich had personal knowledge of the facts con- we do much more. To create the level of were principals in the American Campaign tained in the letters regarding the course. change needed to become a majority, the Academy, Mr. Gingrich taught at the Acad- The facts in the letters that were inaccurate, new Republican doctrine must be commu- emy, and Mr. Gingrich had been briefed at incomplete, and unreliable were material to nicated to a broader audience, with greater the time on the tax controversy surrounding the Committee’s determination on how to frequency, in a more usable form. GOPAC the Academy. In addition, Mr. Gingrich stat- proceed with the tax questions contained in needs a bigger ‘‘microphone.’’ (emphasis in ed publicly that he was taking a very aggres- the complaints. the original). sive approach to the use of 501(c)(3) organiza- D. Statement of Alleged Violation tions in regard to, at least, the Renewing (Ex. 2, 283). GOPAC continued to support this On December 21, 1996, the Subcommittee American Civilization course. approach to achieving its goals in subse- Taking into account Mr. Gingrich’s back- issued a Statement of Alleged Violation stat- quent years. For example, as stated in its ground, experience, and sophistication with ing that Mr. Gingrich had engaged in con- Report to Shareholders dated April 26, 1993: respect to tax-exempt organizations, and his duct that did not reflect creditably on the While both ‘‘message’’ and ‘‘mechanism’’ status as a Member of Congress obligated to House of Representatives in that by failing are important, GOPAC’s comparative advan- maintain high ethical standards, the Sub- to seek and follow legal advice, Mr. Gingrich tage lies in developing new ideas—i.e. in the committee concluded that Mr. Gingrich failed to take appropriate steps to ensure ‘‘message’’ part of the equation. GOPAC will should have known to seek appropriate legal that activities with respect to the AOW/ thus continue to focus its efforts on develop- advice to ensure that his conduct in regard ACTV project and the Renewing American ing and communicating our values in a way to the AOW/ACTV and Renewing American Civilization project were in accordance with voters can understand and support. Civilization projects was in compliance with section 501(c)(3); and that on or about De- (Ex. 3, Eisenach 2539). 501(c)(3). Had he sought and followed such ad- cember 8, 1994, and on or about March 27, From approximately 1986 through 1995, Mr. vice—after having set out all the relevant 1995, information was transmitted to the Gingrich served as the General Chairman of facts, circumstances, plans, and goals de- Committee by and on behalf of Mr. Gingrich GOPAC. (7/17/96 Gingrich Tr. 15). In this role scribed above—501(c)(3) organizations would that was material to matters under consider- he came up with the ideas GOPAC used for not have been used to sponsor Mr. Gingrich’s ation by the Committee, which information, its political messages and themes, as well as ACTV and Renewing American Civilization as Mr. Gingrich should have known, was in- its vision, strategy, and direction. projects. accurate, incomplete, and unreliable. (7/17/96 Gingrich Tr. 20; 7/15/96 Gaylord Tr. 21– On December 21, 1996, Mr. Gingrich filed an 22; 6/26/96 Hanser Tr. 81; 7/12/96 Eisenach Tr. 4. MR. GINGRICH’S STATEMENTS TO THE answer with the Subcommittee admitting to COMMITTEE 22–23; 7/3/96 Rogers Tr. 54–56; this violation of House Rules. 6/27/96 Nelson Tr. 22–23; 12/7/96 Callaway Tr. 6, In responding to the complaints filed The following is a summary of the findings 9). against him concerning the Renewing Amer- of the Preliminary Inquiry relevant to the B. American Opportunities Workshop/American ican Civilization course, Mr. Gingrich sub- facts as set forth in the Statement of Alleged Citizens Television mitted several letters to the Committee. His Violation. first letter, dated October 4, 1994, did not ad- 1. BACKGROUND II. SUMMARY OF FACTS PERTAINING TO dress the tax issues raised in Mr. Jones’ com- AMERICAN CITIZENS TELEVISION In early 1990, GOPAC embarked on a plaint, but rather responded to the part of project to produce a television program A. GOPAC the complaint concerning unofficial use of called the American Opportunities Workshop official resources. In it Mr. Gingrich stated GOPAC was a political action committee (‘‘AOW’’). The idea for this project came that GOPAC, among other organizations, organized under Section 527 of the Internal from Mr. Gingrich and he was very involved paid people to work on the course. After this Revenue Code. As such, contributions to in developing the message it used. (12/7/96 response, the Committee wrote Mr. Gingrich GOPAC were not tax-deductible.2 GOPAC’s Callaway Tr. 11, 12, 14; 7/12/96 Eisenach Tr. 16; and asked him specifically to address issues goal was to attract people to the Republican 12/5/96 Eisenach Tr. 10; 12/9/96 Riddle Tr. 14; related to whether the course had a partisan, party, develop a ‘‘farm team’’ of Republican 12/9/96 Gingrich Tr. 12).4 AOW was broadcast political aspect to it and, if so, whether it state and local public officials who might on May 19, 1990, on the Family Channel and was appropriate for a 501(c)(3) organization one day run for Congress and, ultimately, was hosted by Mr. Gingrich. (Ex. 4, GOPAC3 to be used to sponsor the course. The Com- create a Republican majority in the United 181). mittee also specifically asked whether States House of Representatives. (12/7/96 One of the purposes of the program was to GOPAC had any relationship to the course. Callaway Tr. 9; 7/12/96 Eisenach Tr. 21; 7/17/96 build a citizens’ movement that would com- Mr. Gingrich’s letter in response, dated De- Gingrich Tr. 17–20).3 GOPAC did not under- municate the principles of Entrepreneurial cember 8, 1994, was prepared by his attorney, take any projects that were not directed to- Free Enterprise, Basic American Values, and but it was read, approved, and signed by Mr. ward achieving that goal. (7/18/96 Gingrich Technological Progress. (Ex. 5, FAM 0011; 12/ Gingrich. It stated that the course had no Tr. 362; 12/7/96 Callaway Tr. 33). 7/96 Callaway Tr. 14). These principles were partisan, political aspects to it, that his mo- GOPAC’s mission was defined as follows: called the ‘‘Triangle of American Success.’’ tivation for teaching the course was not po- GOPAC’s mission for the 1990’s is to create (Ex. 4, GOPAC3 181). AOW consisted of work- litical, and that GOPAC neither was involved and disseminate the doctrine which defines a shops set up throughout the country where in nor received any benefit from any aspect caring, humanitarian reform Republican activists could gather to watch the broad- of the course. In his testimony before the Party in such a way as to elect candidates, cast and, in the words of those responsible Subcommittee, Mr. Gingrich admitted that capture the United States House of Rep- for AOW, help build a citizens’ movement these statements were not true. resentatives and become a governing major- and increase citizen involvement. (12/7/96 When the amended complaint was filed ity at every level of Government. Callaway Tr. 14, 15; 12/9/96 Riddle Tr. 12, 13). with the Committee in January 1995, Mr. (Ex. 1, GOPAC3 137). This aspect of GOPAC’s Approximately 600 workshop cites were es- Gingrich’s attorney responded to the com- activities was further explained in a draft tablished where approximately 20,000 people plaint on behalf of Mr. Gingrich in a letter document from November 1989: watched the program. (Ex. 6, Eisenach 0359). dated March 27, 1995. His attorney addressed The target group for the program was non- all the issues in the amended complaint, in- voters. (Ex. 7, WGC2–01025). 2 cluding the issues related to the Renewing See September 6, 1996 letter from the tax counsel As stated by GOPAC’s then-Executive Di- American Civilization course. The letter was Mr. Gingrich hired during the Preliminary Inquiry, James Holden, at page 41: ‘‘Contributions made to rector, Kay Riddle, the purpose of creating signed by Mr. Gingrich’s attorney, but Mr. organizations described in section 501(c)(3) qualify the citizens’ movement and attempting to Gingrich reviewed and approved it prior to generally as charitable deductions under section increase citizen involvement was to get peo- its being delivered to the Committee. In an 170(c)(2). In contrast, contributions made to section ple to solve their own community problems interview with Mr. Cole, Mr. Gingrich stated 501(c)(4) and section 527 organizations do not qualify and not look to the federal government for that if he had seen anything inaccurate in as charitable deductions. For this reason, exempt help. (12/9/96 Riddle Tr. 13). Ms. Riddle went the letter he would have instructed his at- organizations that are described in section 501(c)(3) torney to correct it. Similar to the Decem- enjoy the substantial advantage of being able to attract donations that are deductible on the tax re- 4 The Committee’s Special Counsel, James Cole, ber 8, 1994 letter, the March 27, 1995 letter turns of contributors.’’ interviewed Mr. Gingrich on July 17, 1996; July 18, stated that the course had no partisan, polit- 3 Citations containing a ‘‘Tr.’’ indicate the page of 1996; and December 9, 1996. Mr. Gingrich appeared be- ical aspects to it, that Mr. Gingrich’s moti- the transcript from a witness’s interview. The date fore the Investigative Subcommittee to give testi- vation for teaching the course was not politi- of the interview is also provided in the citation. mony on November 13, 1996, and December 10, 1996. H200 CONGRESSIONAL RECORD — HOUSE January 21, 1997 on to say, ‘‘Another product of that would vided support through its staff. (Ex. 11, 4. It is more powerful and more effective to be, of course, if we got people interested Eisenach 4254; 12/5/96 Eisenach Tr. 5, 67). Each develop a reform movement parallel to the * * *, we hoped and believed that eventually program was broadcast on the Family Chan- official Republican Party because: they would vote Republican.’’ (12/9/96 Riddle nel. * * * * * Tr. 13). ‘‘[W]e [at GOPAC] truly believed that In setting up ACTV it was understood that b. the non-voters who are non-political or the more we could involve people and edu- Mr. Gingrich would maintain his involve- anti-political will accept a movement more cate people, the more likely we were to have ment and control over the programs. (Ex. 12, rapidly than they will accept an established people vote Republican.’’ (12/9/96 Riddle Tr. WGC2–01337). While some say that he was not party; 14–15). Similarly, Mr. Callaway characterized very involved when it became ACTV, (e.g., the message of AOW as follows: 12/7/96 Callaway Tr. 14), there is evidence * * * * * But I think, fundamentally * * * it was a that his involvement continued. Mr. Ging- 5. As much as possible, the House Repub- message that Republican principles are rich hosted the first ACTV program. Mr. lican Party, the Bush Administration, Sen- sound principles, that everything does not Gingrich also introduced and closed the sec- ate Republicans, incumbent Republicans need to be done by government, that you can ond program in September. The host was across the country, the NRCC, RNC, SRCC do better by trusting individuals to act for Pete DuPont, but Mr. Gingrich was featured and the conservative movement should be themselves than you can by having govern- for a significant portion of the program. briefed on movement developments; conflict ment tell individuals what they must do, While the last program in October was paid within this broad group should be minimized that a smaller government is frequently bet- for primarily by CCAGW, Mr. Gingrich ap- and coordination maximized. ter than a larger government, that it is bet- proved its use on ACTV. (Ex. 11, Eisenach 6. The objective measurable goal is the ter to reduce taxes than raise taxes. I think 4254). maximum growth of news coverage of our vi- it is Republican kinds of issues. Both AOW and ACTV were described to the sion and ideas, the maximum recruitment of (12/7/96 Callaway Tr. 12–13). public as non-partisan. (Ex. 6, Eisenach 0361). new candidates, voters and resources, and Producing AOW was very expensive. (12/7/96 Much of the documentation that was either the maximum electoral success in winning Callaway Tr. 16; 6/14/96 Callaway Tr. 21–22). It internal to GOPAC or sent to its supporters, seats from the most local office to the White cost over $500,000 and consumed approxi- however, indicates a partisan, political pur- House and then using those victories to im- mately 62% of GOPAC’s budget for the first pose. While GOPAC, as a political action plement the values of a governing conserv- half of 1990. (Ex. 8, 1273). It was envisioned committee, could freely engage in partisan, atism and to create the best America that that the project would continue beyond May political activity, ALOF, as a 501(c)(3) orga- can be. 19, 1990 (12/5/96 Eisenach Tr. 46; Ex. 4, nization could not. Because ACTV was de- (Ex. 13, Eisenach 4838–4839 (typed version) GOPAC3 181) and prior to its airing, Mr. scribed as a continuation of the activities of and Eisenach 4832–4834 (handwritten ver- Gingrich, Mr. Callaway and others decided to AOW (12/7/96 Callaway Tr. 13–15; 12/5/96 sion)). have the project’s follow-on activities trans- Eisenach Tr. 8; Ex. 5, FAM 0011), documents When asked about AOW and ACTV, Mr. ferred to a 501(c)(3) organization. (Ex. 9, were reviewed during the Preliminary In- Gingrich said he had very little recollection Eisenach 3909; 12/5/96 Eisenach Tr. 49; 12/7/96 quiry relating to both projects to determine of the projects. He said he was distracted by Callaway Tr. 80). The organization chosen what the goals were for the two projects. other events at the time such as his re-elec- was the Abraham Lincoln Opportunity Foun- GOPAC contracted with an organization tion efforts, legislative issues, and becoming dation (‘‘ALOF’’). The project was trans- Republican Whip. (12/9/96 Gingrich Tr. 19, 39, ferred to ALOF so that it could be funded called the Washington Policy Group (‘‘WPG’’) to manage AOW. (7/12/96 Eisenach 43). He said he had no recollection of the with tax-deductible money. (12/9/96 Riddle Tr. ‘‘Key Factors in a House GOP Majority’’ doc- 19). Tr. 298). Jeffrey Eisenach was president and sole owner of WPG and the project coordina- ument, did not know if it related to AOW or ALOF was established in 1984 in Colorado ACTV, and did not know the purpose for by Mr. Callaway to fund programs for inner tor for AOW. (7/12/96 Eisenach Tr. 298). Mr. Eisenach was also responsible for managing which it was written. (12/9/96 Gingrich Tr. 31). city youth. (6/14/96 Callaway Tr. 26). It had An analysis of other documents, however, been inactive for some time prior to 1990 and ALOF’s ACTV programs. (12/7/96 Callaway Tr. 16). WPG was essentially Mr. Eisenach’s shows its relationship to the AOW/ACTV was revived for the purpose of taking over projects. Mr. Callaway said in his interview the successor activities of AOW. (12/7/96 ‘‘personal consulting firm’’ and usually had two or three employees. (7/12/96 Eisenach Tr. that the goals set forth in the ‘‘Key Factors Callaway Tr. 84). Under ALOF the project be- in a House GOP Majority’’ document were came know as American Citizens’ Television 9). WPG used GOPAC office space and equipment as part of its compensation. (11/14/96 the same as those for AOW and ACTV. (12/7/ (‘‘ACTV’’). Mr. Callaway was the President 96 Callaway Tr. 37–38). of ALOF and Kay Riddle was the Secretary. Eisenach Tr. 60). In addition to its work on AOW and ACTV, WPG had a consulting con- As stated above, AOW was targeted to non- Mr. Callaway was also GOPAC’s Chairman voters. (Ex. 7, WGC2–01025). The ‘‘Key Fac- and Ms. Riddle was also GOPAC’s Executive tract with GOPAC from January 1989 through September 1993. (7/12/96 Eisenach Tr. tors in a House GOP Majority’’ document Director. ALOF hired some GOPAC employ- notes that non-voters are the ones to appeal ees on a full-time basis, used other GOPAC 9, 10, 298). Through WPG’s contract with GOPAC, Mr. Eisenach ‘‘provided research as- to in order to change the balance of power. employees and consultants on a part-time AOW/ACTV based the citizens’ movement on basis, and used GOPAC offices and facilities. sistance and advice to Mr. Gingrich, strate- gic advice to GOPAC and worked on some the ‘‘Triangle of American Success’’ which (12/7/96 Callaway Tr. 7, 11, 13, 14, 73–75). was made up of basic American values, en- ACTV was designed to continue AOW’s specific projects, focus groups and so forth, trepreneurial free enterprise, and techno- work of building a citizens’ movement based for GOPAC.’’ (7/12/96 Eisenach Tr. 9). Mr. logical progress. (Ex. 5, FAM 0011; 12/7/96 on the ‘‘Triangle of American Success’’ and Eisenach was also the Executive Director of Callaway Tr. 14). The ‘‘Key Factors in a had the same goals as AOW. (Ex. 5, FAM 0011; GOPAC from June 1991 to June 1993. (7/12/96 House GOP Majority’’ document indicates 12/7/96 Callaway Tr. 14; 12/9/96 Riddle Tr. 16; Eisenach Tr. 8). that it will use those same three principles 12/9/96 Gingrich Tr. 8). In order to ensure a 2. PLANNING AND PURPOSE FOR AOW/ACTV to appeal to non-voters. AOW/ACTV was fo- smooth transition, materials concerning cused on building a non-partisan citizens’ ACTV were given to all AOW participants on A document entitled ‘‘Key Factors in a movement. (Ex. 6, Eisenach 0358–0359; Ex. 5, May 19, 1990. (Ex. 6, Eisenach 0361). House GOP Majority’’ appears to be one of ACTV produced three television programs the earliest documents pertaining to the pur- FAM 0011). In the ‘‘Key Factors in a House in 1990—one on July 21 which discussed the pose of AOW and ACTV. A typed version and GOP Majority’’ document, Mr. Gingrich use of local access cable television for activ- a handwritten version of the document were states that ‘‘[i]t is more powerful and more ist movements; one on September 29 which produced during the Preliminary Inquiry. effective to develop a reform movement par- discussed educational choice;5 and one on Oc- The handwritten version is in Mr. Gingrich’s allel to the official Republican Party be- tober 27 which was about Taxpayers’ Action handwriting. In it he wrote: cause . . . the non-voters who are non-political or anti-political will accept a movement Day. The last program was primarily the re- 1. The fact that 50% of all potential voters more rapidly than they will accept an estab- sponsibility of the Council for Citizens are currently outside politics (non-voters) lished party.’’ (Ex. 13, Eisenach 4838 and Against Government Waste (‘‘CCAGW’’), a creates the possibility that a new appeal Eisenach 4832). 501(c)(4) organization. This was due to the might alter the current balance of political In a congressional briefing Mr. Gingrich fact that the content of the program was power by bringing in a vast number of new gave concerning AOW on March 30, 1990, he deemed to be inappropriate for ALOF to voters. sponsor as a 501(c)(3) organization. (Ex. 10, described AOW/ACTV as follows: FAM 0024). While CCAGW paid for all of the * * * * * It is our goal to define our position as a out-of-pocket expenses (e.g., production ex- 3. It is possible to articulate a vision of caring humanitarian reform party applying pense and broadcast time), ALOF still pro- ‘‘an America that can be’’ which is appealing the triangle of American success and apply- to most Americans, reflects the broad values ing common sense focused on success and op- of a governing conservatism (basic American portunities to explain in general terms for 5 A 1989 draft GOPAC document indicates that one of GOPAC’s projects designed to ‘‘create and dis- values, entrepreneurial Free Enterprise and the whole fall campaign, and again some seminate the new Republican doctrine for the 1990’s’’ Technological progress), and is very difficult Democrats will pick up the language and would be the Education Choice Coalition. (Ex. 2, for the Democrats to co-opt because of their this is open to everybody, this is a free coun- 284). ideology and their interest groups. try, we think on balance it is vastly more January 21, 1997 CONGRESSIONAL RECORD — HOUSE H201 advantageous to us than it is to the left Consequently, a major premise for the re- (Ex. 18, 2782–2783). Mr. Gingrich did not recall since they are the party of big city ma- search project is that younger citizens are this document. When asked whether AOW chines, they are the party of the unions, the right target group for a new majority was intended to be an election year boost, he they’re much more tied to the bureaucratic strategy and that a political theory and lan- said that it may have been, but he also welfare state. guage needs to be effective with them if it is thought it was idea oriented. (12/9/96 Ging- (Ex. 15, WGC2 06081, pp. 17–18). The ‘‘Key Fac- to be effective at all. Supporting this rich Tr. 39–40). tors in a House GOP Majority’’ document premise is an additional opportunity (to In an unsigned letter addressed to Mr. notes that the message of the citizens’ move- their not voting now) about younger voters— Thorton Stearns, apparently written for Mr. ment is designed not to be useful for Demo- they are already predisposed to vote Repub- Callaway’s signature,7 the AOW project and crats because it will be ‘‘very difficult for lican. its purpose were described as follows: [them] to co-opt [the ideas] because of their (Ex. 15, MSI 0031–0032). With more than 600 workshop sites across ideology and their interest groups.’’ (Ex. 13, 3. LETTERS DESCRIBING PARTISAN, POLITICAL the country, 30,000 participants, and exten- Eisenach 4838 and 4832–4833). NATURE OF AOW/ACTV sive media coverage, AOW was a significant At the congressional briefing, Mr. Gingrich success on its own terms. However, the real spoke of a focus group that was commis- A number of GOPAC letters also indicate reason GOPAC took on AOW was to explore sioned to assist in the AOW/ACTV effort. He the purpose behind AOW/ACTV. Some are described it as ‘‘the largest focus group signed, some are not, but the ones that are an innovative new mechanism for creating project ever undertaken by the Republican not signed were apparently in GOPAC’s files and motivating the new Republican majority Party.’’ (Ex. 14, WGC2 06081, p. 8). He said it for some years, indicating that they were of the 1990s. concentrated on non-voters under 40 years of probably sent out. For example, in a signed (Ex. 19, GOPAC3 467). In a letter over Mr. age (Ex. 14, WGC2 06081, p. 8) and tested nega- letter dated February 21, 1990, to members of Gingrich’s name dated June 21, 1990, AOW tive language like ‘‘the bureaucratic welfare GOPAC’s Executive Finance Committee, Mr. and ACTV are explicitly tied together in an state’’ and positive language like the ‘‘Tri- Callaway wrote that: effort to achieve the same goal of building angle of American Success,’’ ‘‘Entrepreneur- The next two years are absolutely critical the Republican Party and trying to have an ial Free Enterprise,’’ ‘‘Technological to all that we hope to accomplish. Our May impact on political campaigns. The letter Progress and Innovation,’’ and ‘‘Basic Amer- 19 project [AOW] will go a long way toward states: ican Values.’’ (Ex. 14, WGC2 06081, pp. 10–11). helping Republicans set an agenda and per- These are exciting times at GOPAC and we Near the end of the briefing Mr. Gingrich suading Americans to realign with us. have been quite busy lately. I am excited explained the reasons for having the program about [the] progress of the ‘‘American Citi- labeled as non-partisan: (Ex. 16, GOPAC3 484). A copy of this letter was sent to Mr. Gingrich. Written across the zens’ Television’’ project, which will carry Lastly I was going to make the point one top of his copy, in his handwriting, is ‘‘Newt the torch of citizen activism begun by our of the reasons we are reaching out and we 2/20/90.’’ (Ex. 16, WGC2–03992). According to American Opportunities Workshop on May really urge people to be nonpartisan and be Mr. Gingrich this probably meant he had 19th. We mobilized thousands of people wide open. But we have two reasons. First, seen the letter (12/9/96 Gingrich Tr. 36–37); across the nation at the grass roots level there are a lot of former Democrats. Andy however, he did not recall the content of this who as a result of AOW, are now dedicated Ireland, Ronald Reagan, Phil Gramm, Jean letter during an interview with Mr. Cole. (12/ GOPAC activists. We are making great Kirkpatrick, Connie Mack, you go down the 9/96 Gingrich Tr. 35). strides in continuing to recruit activists all list, a surprising list of people who looked at An unsigned letter, apparently prepared across America to become involved with the both sides and decided we were right. That for Mr. Callaway’s signature,6 dated March 7, Republican party. Our efforts are literally we were more open, we were moving in the 1990, states: snowballing into the activist movement we right direction. need to win in ’92. But second, most young people under 40 Our May 19th American Opportunities are not politicized. The minute you politi- Workshop is the single most exciting project (Ex. 20, GOPAC3 224). Mr. Gingrich said that cize this and you make it narrow and you I’ve ever undertaken. I consider this program the signature on the letter was not his. (12/ make it partisan—you lose them. critical to our efforts to become a Repub- 9/96 Gingrich Tr. 40). Mr. Gingrich said that (Ex. 14, WGC2 06081, pp. 23–24). lican majority. the above statement did not reflect the pur- The focus group Mr. Gingrich referred to pose of AOW or ACTV. (12/9/96 Gingrich Tr. was commissioned by GOPAC in early 1990. * * * * * 41). In order to encourage Americans to vote— It was performed by Market Strategies, Inc. Finally, an August 27, 1990 memorandum and vote Republican—so that we may enact The July 10, 1990 report on the results of the from Mr. Callaway to Mr. Gingrich and Jim our policies of opportunity, we must reach focus group described the project as follows: Tilton 8 gives insight to the goals of the them with our vision of hope. This research project is part of an overall It is time for our message and program, AOW/ACTV projects. (Ex. 21, Eisenach 3950– effort to build a new governing majority in now proven among those in the trenches, to 3959). The memorandum discusses a meeting the United States formed around conserv- be shared with the Americans who are not the three men had five days earlier. Based on ative principles. Historically, building a new motivated by our current government to go the memorandum, the main topic focused on majority has involved three essential tasks: to the polls or get involved. how GOPAC should proceed in the future. activating a group of non-participating citi- The problems addressed in the meeting con- zens to support an existing party (or form a * * * * * cerned the fact that AOW/ACTV had diverted new party), constructing a theory or expla- The American Opportunities Workshop is too much money and attention from tradi- nation of what is right and wrong in society GOPAC’s answer to teaching and empower- tional GOPAC efforts. This caused erosion in with which the non-participating citizens ing the American people. We hope that the support from GOPAC members. The three agree, and developing the right language (po- citizen movement launched by this project men decided to try one more ACTV program litical rhetoric) to communicate that theory will be the key to a future of Republican on September 29, 1990. If additional funding to the non-participating citizens. This governance. was not available beyond that point, the project is the first of several research (Ex. 17, 425–426). A March 16, 1990 GOPAC let- project would not be continued. They decided projects to be sponsored by GOPAC to help ter over Mr. Gingrich’s name discusses the that it needed to be ‘‘a very strong program achieve these three tasks in this decade. purpose behind AOW. that is controversial enough to stir up our (Ex. 15, MSI 0030). The report then describes Through the use of satellite hook-ups, not Charter members and other constituents.’’ the specific language it tested as follows: only can we reach new groups of voters not (Ex. 21, Eisenach 3951). The show that was chosen was on educational choice, which was The theory’s explanation of what is wrong traditionally associated with our Party, but a specific GOPAC project. in society was put in terms of ‘‘the bureau- we’ll be able to give them our message cratic welfare state’’ and the ‘‘values of the straight, without it being filtered and mis- The memorandum recounted that Mr. left.’’ The theory’s explanation of what is interpreted by liberal elements in the media. Gingrich had reviewed all the options set good in society was put in terms of ‘‘techno- * * * * * forth and concluded the following: logical progress,’’ ‘‘entrepreneurial free en- Because I believe it has such great poten- Newt then stated firmly that he feels we terprise,’’ and ‘‘basic American values’’ tial for helping President Bush, our can- need to go back to basics for now through which were summarized as ‘‘the Triangle of didates and our Party, I told Bo to move 1992. That the only special projects for 1992 American Success.’’ ahead with planning the workshop. should be 1992 election oriented projects. (Ex. 15, MSI 0030). Newt has now concluded that you can’t real- * * * * * ly affect 1992 elections indirectly—we must In describing the target group for building I truly believe that our Party and our do it directly through political programs. the new governing majority, the report President stand on the verge of a tremendous states: success this year, and that this workshop The potential for a new governing majority can be a great election year boost to us. 7 According to Mr. Callaway this letter may have exists because of the large and growing num- been sent out, but he again did not have a specific bers of non-participating citizens in our po- recollection of it. (12/7/96 Callaway Tr. 58). litical system. 6 According to Mr. Callaway this letter may have 8 Jim Tilton was an unpaid senior advisor to been sent out, but he did not have a specific recol- GOPAC. He was an attorney and a close friend of Mr. * * * * * lection of it. (12/7/96 Callaway Tr. 49). Gingrich. (12/10/96 Gingrich Tr. 10, 11, 56, 57). H202 CONGRESSIONAL RECORD — HOUSE January 21, 1997

(Ex. 21, Eisenach 3950).9 Mr. Callaway said discuss ACTV in terms which indicate that it On March 16, 1992, Mr. Eisenach wrote a that this paragraph could have been refer- continued to be treated as a GOPAC project. memorandum to June Weiss, GOPAC’s Fi- ring to ACTV, but he did not have a clear For example it states that ‘‘Our mission is to nance Director, concerning Mr. Callaway’s recollection. (12/5/96 Callaway Tr. 62). establish ACTV as a new, interactive infor- Charter Member dues. The memorandum 4. AOW/ACTV IN MR. GINGRICH’S CONGRESSIONAL mation network.’’ (Ex. 4, GOPAC3 181). The states: DISTRICT Charter Member Report is worded in a man- Bo has offered us a choice of (1) $10,000 While AOW/ACTV was supposed to be non- ner that indicates ACTV was considered a from him or (2) $20,000 from ALOF. I indi- partisan, two memoranda indicate that there GOPAC project. For example, it uses phrases cated to him on the phone today I would was some effort to ensure that workshops like ‘‘Our goal’’ with ACTV, ‘‘Our next ACTV tend to go for $20,000 over $10,000—in part, were set up in Mr. Gingrich’s congressional program,’’ and ‘‘Our program was hosted by frankly, because I think we ought to go district. In a memorandum to Mr. Callaway, ** *.’’ (Ex. 4, GOPAC3 181–182). At the end of ahead and get the ALOF loan repaid and be dated February 8, 1990, Mr. Eisenach wrote: the report under the heading ‘‘Getting Out done with it, as opposed to having it hanging the Message,’’ there is a chart showing the around for another year. An area for immediate attention is ‘‘tar- AOW and ACTV programs. It then lists how (Ex. 30, Eisenach 3725). On March 23, 1992, Mr. gets of opportunity’’—e.g. Georgia’s 6th Dis- many workshops were set up for each pro- Callaway’s foundation donated $20,000 to trict, Colorado, and the D.C. area. We need gram and what the estimated attendance ALOF. (Ex. 39, CNB 0443). On the same day, to identify resources to ensure that we maxi- was for these workshops. (Ex. 4, GOPAC3 ALOF wrote a check to GOPAC for $20,000. mize our returns in these three areas, and 183). other specific target areas we might add (Ex. 39, CNB 0447). A letter was sent to Mr. 6. GOPAC FUNDING OF ALOF AND ACTV 11 later. In particular, we need to put very high Callaway on ALOF stationery thanking him on our agenda the task of identifying a 6th When ALOF began to operate in June 1990 for the contribution. It was signed by numer- District Coordinator. it had less than $500 in its bank account. (Ex. ous members of GOPAC’s staff. (Ex. 31, 27, CNB 006). It obtained a loan for $25,000 (Ex. 22, Eisenach 3811). Similarly, in a March GOPAC2 0012). from the Central Bank of Denver in late Two other GOPAC Charter Members made 30, 1990 memorandum from Mr. Gingrich to June and received some direct contributions. contributions to ALOF which were imme- Joe Gaylord and Mary Brown, the following These came from a foundation associated diately turned over to GOPAC. (Ex. 40, CNB is written: with Mr. Callaway, the Family Channel, and 0217, CNB 0439, CNB 0441, CNB 0459). Hand- The GOPAC print-out shows only one very at least one other GOPAC supporter. (Ex. 28, written notes relating to one of them indi- tentative (Clay Davis) site in my district. ALOF 0050). In addition, GOPAC loaned cates that a tax-deductible option for his Time is getting short for finding sites and ALOF $45,000 in 1990, and $29,500 in early 1991 contribution to GOPAC was discussed before GOPAC needs to have the hosts identified as to pay for production expenses. The total of the contribution to ALOF was made. (Ex. 32, soon as possible to get materials to them to loans from GOPAC to ALOF was $74,500. (Ex. GOPAC2 2424–2426). make the workshops a success. 35, ALOF 0030). As of 1993 ALOF had relocated its offices to Please make this a high priority. ALOF’s last program was broadcast in Oc- Colorado. Its Colorado accountant was pre- (Ex. 23, GOPAC3 460). Mr. Gingrich did not tober 1990. In 1991 and 1992 it did not engage paring the tax return for 1992 and saw the recall this memorandum and said that there in any activities. In 1991, Citizens Against payments to GOPAC. In November she wrote was an effort to target the 6th District—his Government Waste contributed $37,000 to to Kay Riddle, ALOF’s Secretary, and asked congressional district—‘‘only in the sense ALOF and Mr. Callaway’s foundation con- for invoices from GOPAC to ALOF to sup- that we hosted [AOW] from there.’’ (12/9/96 tributed $10,000. (Ex. 28, ALOF 0090). The port these payments. (Ex. 33, Newbill 0119). Gingrich Tr. 19). total, $47,000, was given to GOPAC to be ap- In December, Ms. Riddle wrote to GOPAC’s 5. GOPAC’S CONNECTION TO ALOF AND ACTV plied to the debt. (Ex. 37, CNB 0426, CNB 0428, accountant asking for those invoices. (Ex. 34, As has been previously discussed, ACTV CNB 0430, CNB 0432). After the $47,000 pay- ALOF 0028). Several days later the account- was a continuation of AOW and ALOF used ment, ALOF owed GOPAC $27,500. (Ex. 28, ant provided Ms. Riddle with a summary GOPAC’s offices and facilities. In his inter- ALOF 0064).12 memorandum and a number of invoices. (Ex. view, Mr. Callaway stated a number of times In late 1991 and 1992, ALOF received con- 35, ALOF 0029–0030, ALOF 0027–0028, GOPAC3 that GOPAC was separate from ALOF. (12/7/ tributions from a number of GOPAC support- 0811). Some were undated. Some were dated 96 Callaway Tr. 64, 65–66, 68–69, 73). A number ers totalling $80,000. (Ex. 28, ALOF 0078). in 1991. All concerned activities which were of documents, however, from 1990 indicate $70,000 of that amount was given to GOPAC. stated to have taken place in 1990 and there that ALOF and ACTV had significant con- GOPAC’s then-Executive Director, Mr. is no evidence that the invoices were written nections to GOPAC. Eisenach, was involved in soliciting a num- contemporaneously with the events for In a June 26, 1990 memorandum to Mr. ber of these donations. which they billed.13 On February 27, 1992, Mr. Eisenach wrote Callaway, Mr. Eisenach recounts a discus- The invoices, along with the previously to R. Randolph Richardson to ask him to be- sion the two men had that morning with Mr. mentioned loans, totaled $160,537.70. This come a Charter Member of GOPAC. In order Gingrich. During that discussion, Mr. Ging- consisted of rent ($12,718.08), postage and of- to be a Charter Member, a person must con- rich gave them a handout that ‘‘identified fice supplies ($8,455.08), services of staff and tribute at least $10,000. In the letter Mr. three GOPAC/ALOF zones: 1. Local Elec- consultants ($64,864.54), and the loans Eisenach states: 14 tions, 2. Planning/R&D, 3. Movement.’’ (Ex. ($74,500). (Ex. 35, ALOF 0029, ALOF 0027, 24, Eisenach 4039). The memorandum goes on With respect to foundation funds, it is of ALOF 0026, GOPAC3 0811). The time for the to discuss how GOPAC and ALOF will relate course not appropriate for GOPAC to accept staff was apportioned to reflect the percent- to each other. 501(c)(3) money. However, Bo Callaway does age of their work spent on ALOF business. During the Preliminary Inquiry GOPAC have a foundation, the Abraham Lincoln Op- Some of the consultants listed, however, did produced copies of its ‘‘Confidential portunity Foundation (ALOF), which owes not keep any records reflecting the percent- Masterfile Reports’’ that were used to keep GOPAC a substantial sum of money. You age of time they spent on specific projects track of contributors. Under the section en- might consider a contribution to ALOF, and did not recall doing any work for ALOF. titled ‘‘Giving History’’ the 1990 reports list which would enable it to pay down its (12/2/96 Hanser Tr. 25; 12/5/96 Mahe Tr. 31). two entities: GOPAC and ALOF. (Ex. 25, GOPAC debt, and thus be of enormous help Records of one consultant did record the GOPAC3 0510). Attached to these reports are in our efforts to change the Congress in 1992. time he spent on ALOF business, but it was copies of correspondence from both GOPAC (Ex. 29, Eisenach 4652). Mr. Richardson’s substantially less than the time listed in the and ALOF to contributors. (Ex. 25, GOPAC3 foundation, the Grace Jones Richardson invoice. (Ex. 35, ALOF 0029; Ex. 36, WGC2– 0511–0515). Trust, wrote a $25,000 check to ALOF on An August 13, 1990 memorandum from Mr. April 14, 1992, and ALOF wrote a $25,000 13 Because of her assertion of a Constitutional Callaway to Mr. Gingrich lists the three check to GOPAC on April 23, 1992. (Ex. 38, privilege, the Subcommittee was unable to inter- broad things GOPAC does. The third one list- CNB 0449, CNB 0445). view the accountant for GOPAC and ALOF. ed is ‘‘Projects such as ACTV, AOW and 14 In the tax return for ALOF for 1990, Part VII asks, among other things, whether ALOF had any focus groups.’’ (Ex. 26, Eisenach 4251).10 11 There is no evidence that Mr. Gingrich had any transactions with a political action committee in- GOPAC’s Report to Charter Members dated significant involvement with this level of the finan- volving loans, shared facilities, equipment, or paid November 11, 1990, includes a section on cial aspects of the operations of ALOF. However, be- employees. Even though GOPAC was a political ac- Community Activism. (Ex. 4, GOPAC3 180– cause these facts form part of the basis for a rection committee the return answers ‘‘no’’ to all those 188). In that section it discusses AOW and ommendation by the Subcommittee that the rel- questions. (Ex. 28, ALOF 0056). The accountant for ACTV. While it states that ACTV is ‘‘legally evant materials gathered during the preliminary in- ALOF, who was also the accountant for GOPAC, said no longer a GOPAC project,’’ it goes on to quiry be made available to the Internal Revenue that she had answered those questions in the nega- Service, the matter is set forth in some detail. tive based on her belief that these questions specifi- 12 The original debt from GOPAC listed on ALOF’s cally excluded any transactions with political ac- 9 A GOPAC statement of ‘‘Revenue and Expenses’’ tax returns was for $45,247. This is not supported by tion committees. (10/31/96 Gilbert Tr. 18-20). She did attached to this memorandum shows a single line the checks from GOPAC to ALOF which only reflect not discuss this reading of the tax return with any- item for ‘‘AOW/ACTV.’’ (Ex. 21, Eisenach 3957). $45,000. This additional $247 continued to be listed one at ALOF, but she did fill the form out in this 10 According to Mr. Callaway, the listing of ACTV for the remaining years and was reflected in the ul- way and they signed it without any questions. (10/31/ was a ‘‘bad choice of words.’’ (12/7/96 Callaway Tr. timate forgiveness of a portion of this debt in 1993. 96 Gilbert Tr. 21). This same error occurred in the 70). It is not clear what the $247 represents. tax return for 1991. (Ex. 28, ALOF 0069). January 21, 1997 CONGRESSIONAL RECORD — HOUSE H203 01378–01379, Eisenach 4276–4277, Eisenach 4302– tant aspects of the movement was the cre- 44, PFF 14476). The notes end with the follow- 4303). According to Ms. Riddle, she did not ation of ‘‘disseminating groups and [a] sys- ing: attempt to apportion time based on the ac- tem of communication and education.’’ (Ex. We must renew American civilization by tual hours spent by these people on ALOF 42, HAN 02109). It also sought to ‘‘profes- studying these principles, networking suc- business. Instead, she said she determined sionalize’’ the House Republicans by using cess stories, applying these success stories to the percentages before any of the people had the ‘‘message to attract voters, resources develop programs that will lead to dramatic done any work based on her best guess of the and candidates’’ and develop a ‘‘mechanism progress, and then communicating these time they would spend. (12/9/96 Riddle Tr. 69– for winning seats.’’ (Ex. 42, HAN 02110). The principles and these opportunities so the 70). ultimate goal of the movement was to re- American people have a clear choice between Of the total amount listed on the invoices place the welfare state with an opportunity progress, renewal, prosperity, safety and of $160,537.70, ALOF paid GOPAC $117,000 be- society, and all efforts had to be exclusively freedom within America [sic] civilization tween 1991 and 1992. (Ex. 35, ALOF 0029). This directed to that goal. (Ex. 42, HAN 02119). Ul- versus decay, decline, economic weakness, left a balance of $43,537.70, which, according timately, it was envisioned that ‘‘a Repub- violent crime and bureaucratic dominance to ALOF’s 1993 tax return, was forgiven by lican majority [would be] the heart of the led by a multicultural elite. GOPAC. (Ex. 28, ALOF 0089).15 American Movement * * *’’. (Ex. 42, HAN Given that choice, our movement for re- According to Kathleen Taylor, a current 02117).17 Mr. Gingrich’s role in this move- newing American civilization will not just employee of the Speaker’s Office and the ment was to be the ‘‘advocate of civiliza- win the White House in 1996, we will elect former Political Services Director for tion,’’ the ‘‘definer of civilization,’’ the people at all levels dedicated to constructive GOPAC, the lessons learned from AOW and ‘‘teacher of the rules of civilization,’’ the proposals. ACTV were used for the Renewing American ‘‘arouser of those who form civilization,’’ the (Ex. 44, PFF 14477). (Emphasis in the origi- Civilization course discussed below. (6/28/96 ‘‘organizer of the pro-civilization activists,’’ nal).20 Taylor Tr. 45). Those lessons were ‘‘[h]ow to and the ‘‘leader (possibly) of the civilizing In a draft document entitled ‘‘Renewing get workshops sites, how to disseminate in- forces.’’ (Ex. 42, HAN 02104). In doing this, he American Civilization Vision Statement,’’ formation, [and] mass-marketing the ideas.’’ intended to ‘‘retain a primary focus on elect- written by Mr. Gingrich and dated March 19, (6/28/96 Taylor Tr. 45). In the same vein, a let- ed political power as the central arena and 1993, he again described the movement in ter from Mr. Eisenach to Mr. Mescon con- fulcrum by which a free people debate their partisan terms and emphasized that it need- taining the terms and conditions under future and govern themselves.’’ (Ex. 42, HAN ed to communicate the vision of renewing which WPG would manage the Renewing 02104). The support systems for this move- American civilization on very large scale. American Civilization course states: ment included GOPAC, some Republican (Ex. 46, WGC 00163–00171, WGC 00172–00191). international organizations, and possibly a Among our most significant project man- He wrote that renewing American civiliza- foundation. (Ex. 42, HAN 02121). There was agement undertakings was the 1990 ‘‘Amer- tion will require ‘‘a new party system so we substantial discussion of how to disseminate ican Opportunities Workshop’’ and its suc- can defeat the Democratic machine and the message of the movement. (Ex. 42, HAN cessor, American Citizens’ Television. Both transform American society into a more pro- 02109, 02110, 02111). Some of the methods dis- of these projects bear significant similarities ductive, responsible, safe country by replac- cussed for this dissemination included, ‘‘Pos- to the project you have asked us to get in- ing the welfare state with an opportunity so- sibly a series of courses with audio and vid- ciety.’’ (Ex. 46, WGC 00163). volved with, ‘‘Renewing American Civiliza- eotape followons’’/‘‘Possibly a text-book B. Role of the Course in the Movement tion.’’ Thus, we enter this undertaking with (plus audio, video, computer) series’’/‘‘Cam- both enthusiasm and a full understanding of Mr. Gingrich was asked about the role of pus (intellectual) appearances on ‘the his- the course in the movement. He said that the the enormity and complexity of the under- tories’ Gingrich the Historian applying the taking. course was ‘‘the only way actually to de- lessons of history to public life.’’ (Ex. 2, HAN velop and send * * * out’’ the message of the (Ex. 41, Mescon 0651). 02118). One of the tasks listed for 1993 is ‘‘De- III. SUMMARY OF FACTS PERTAINING TO movement. (7/17/96 Gingrich Tr. 42). In a later sign vision and its communication and com- interview, he modified this statement to say ‘‘RENEWING AMERICAN CIVILIZATION’’ municate it with modification after feed- that the course was ‘‘clearly the primary and A. Genesis of the Renewing American back.’’ (Ex. 2, HAN 02120). According to Mr. dominant method; it was not the only way Civilization Movement and Course Gingrich, the course was to be a subset of the one could have done it. But I think it was es- In his interview with the Special Counsel, movement and was to be a primary and essential to do it, to have the course.’’ (11/13/96 Mr. Gingrich said the idea for the course was sential means for developing and disseminat- Gingrich Tr. 126–127). first developed while he was meeting with ing the message of the movement. (7/17/96 The earliest known documentary reference Owen Roberts, a GOPAC Charter Member Gingrich Tr. 42, 58; 11/13/96 Gingrich Tr. 126– to the course in the context of the movement and advisor, for two days in December 1992. 127). is in an agenda for a meeting held on Feb- (7/17/96 Gingrich Tr. 11–12, 23–24; Another description of the Renewing ruary 15, 1993, at GOPAC’s offices. The meet- 7/15/96 Gaylord Tr. 23–24; Ex. 42, GOPAC2 American Civilization movement is found in ing had two agenda items: ‘‘I. General Plan- 2492). Mr. Gingrich wrote out notes at this notes of a speech Mr. Gingrich gave on Janu- ning/Renewing American Civilization’’ and meeting and they were distributed to some ary 23, 1993, to the National Review Insti- ‘‘II. Political/GOPAC Issues.’’ (Ex. 47, JR– of his advisors. (Ex. 42, HAN 02103–02125; 6/26/ tute. (Ex. 44, PFF 14473–14477, PFF 38279– 0000645–0000647). Under the first category, one 18 96 Hanser Tr. 28; 7/15/96 Gaylord Tr. 24–25; 7/ 38288). In those notes, Mr. Gingrich wrote topic listed is ‘‘American Civilization Class/ that ‘‘our generation’s rendezvous with his- 12/96 Eisenach Tr. 108–109).16 A review of Uplink.’’ (Ex. 47, JR–0000645). Under the sec- tory is to launch a movement to renew those notes indicates that the topic of dis- ond category two of the items listed are American civilization.’’ (Ex. 44, PFF 14474). cussion at this meeting centered mostly on a ‘‘GOPAC Political Plan & Schedule’’ and He noted that a majority of Americans favor political movement. The notes contain lim- ‘‘Charter Meeting Agenda.’’ (Ex. 47, JR– renewing American civilization and that 21 ited references to a course and those are in 0000645). Attached to the agenda for this ‘‘[w]e are ready to launch a 21st century con- the context of a means to communicate the meeting is a ‘‘Mission Statement’’ written servatism that will renew American civiliza- message of the movement. by Mr. Gingrich which applied to the overall tion, transform America from a welfare state The movement was to develop a message Renewing American Civilization movement, into an opportunity society and create a con- and then disseminate and teach that mes- including the course. (7/12/96 Eisenach Tr. servative governing majority.’’ (Ex. 44, PFF sage. (Ex. 42, HAN 02109). One of the impor- 248–249; 7/17/96 Gingrich Tr. 145–146). It states: 14475). Mr. Gingrich then goes on to describe We will develop a movement to renew the five pillars of American civilization and American civilization using the 5 pillars of 15 The amount listed on the Return was $43,785. As the three areas where the movement needs referred to earlier, it is unclear what the $247 dif- to offer solutions.19 He then wrote that if 20 ference represents. they develop solutions for those three areas Two days later Mr. Gingrich delivered a Special 16 Among the people who received copies of the Order on the House floor concerning Renewing notes were Mr. Hanser, Mr. Gaylord and Mr. they ‘‘will decisively trump the left. At that American Civilization. In this speech he described a Eisenach. In a subsequent memorandum to Gay point either Clinton will adopt our solutions movement to renew American civilization, but did Gaines and Lisa Nelson, as Ms. Gaines and Ms. Nel- or the country will fire the president who not mention the course. He did discuss the five pil- son were about to take over the management of subsidizes decay and blocks progress.’’ (Ex. lars of American civilization and the three areas GOPAC in October 1993, Mr. Gingrich described the where solutions needed to be developed. (Ex. 45, LIP roles each of the three men played in his life as fol- 00036–00045). 17 Mr. Gingrich said that he intended the move- lows: 21 It is not clear whether the meeting was exclu- 1. Joe Gaylord is empowered to supervise my ac- ment to be international in scope. Until some point sively a GOPAC meeting, but at least part of the tivities, set my schedule, advise me on all aspects of in 1995, however, its scope was only national. (7/17/96 agenda explicitly concerned GOPAC projects. As will my life and career. He is my chief counselor and one Gingrich Tr. 33). be discussed later, GOPAC’s political plan for 1993 of my closest friends. * * * 18 This appears to be the earliest example of Mr. centered on Renewing American Civilization. As 2. Steven Hanser is my chief ideas adviser, close Gingrich speaking about the Renewing American also discussed below, GOPAC’s April 1993 Charter personal friend of twenty years, and chief language Civilization movement. A draft of this document in Meeting was called ‘‘Renewing American Civiliza- thinker. * * * Mr. Gingrich’s handwriting is attached to the typed tion’’ and employed breakout sessions for Charter 3. Jeff Eisenach is our senior intellectual leader version of the notes. Members to critique and improve individual compo- and an entrepreneur with great talent and deter- 19 Although not mentioned in this speech, those nents of the course on Renewing American Civiliza- mination. * * * five pillars and three areas are each separate lection. (7/17/96 Gingrich Tr. 69–70; 7/12/96 Eisenach Tr. Ex. 43, GDC 11551, 11553). tures in what became the course. 144–146; 7/15/96 Gaylord Tr. 46). H204 CONGRESSIONAL RECORD — HOUSE January 21, 1997 21st Century Freedom so people understand gerates the role of GOPAC.’’ The letter was 7/3/96 Rogers Tr. 71–75; 7/15/96 Gaylord Tr. 66– freedom and progress is possible and their written to ‘‘flatter’’ the Charter Members. 67; 7/12/96 Eisenach Tr. 148–149, 272–275; practical, daily lives can be far better.* As (11/13/96 Gingrich Tr. 129–130). Lipsett Tr. 30–31). 26 In the first section, Mr. people become convinced American civiliza- In a March 29, 1993 memorandum, Mr. Gingrich wrote: tion must and can be renewed and the 5 pil- Gingrich specifically connects the course The challenge to us is to be positive, to be lars will improve their lives we will encour- with the political goals of the movement. specific, to be intellectually serious, and to The memorandum is entitled ‘‘Renewing age them and help them to network together be able to communicate in clear language a American Civilization as a defining concept’’ and independently, autonomously initiate clear vision of the American people and why improvements wherever they want. However, and is directed to ‘‘Various Gingrich it is possible to create that America in our we will focus on economic growth, health, Staffs.’’ 23 The original draft of the memoran- generation. and saving the inner city as the first three dum is in Mr. Gingrich’s handwriting. (Ex. Once the American people understand what key areas to improve. Our emphasis will be 51, GDC 08891–08892, GDC 10236–10238). In the they can have they will insist that their on reshaping law and government to facili- memorandum, Mr. Gingrich wrote: politicians abolish the welfare state which is tate improvement in all of [A]merican soci- I believe the vision of renewing American crippling them, their children, and their ety. We will emphasize elections, candidates civilization will allow us to orient and focus country and that they replace it with an op- and politics as vehicles for change and the our activities for a long time to come. portunity society based on historically prov- news media as a primary vehicle for commu- At every level from the national focus of en principles that we see working all around nications. To the degree Democrats agree the Whip office to the 6th district of Georgia us. with our goals we will work with them but focus of the Congressional office to the na- our emphasis is on the Republican Party as tional political education efforts of GOPAC (Ex. 52, GDC 10643). the primary vehicle for renewing American and the re-election efforts of FONG 24 we In the second portion of the document, Mr. civilization. should be able to use the ideas, language and Gingrich describes how the vision of renew- *Renewing American Civilization must be commu- concepts of renewing American civilization. ing America will be accomplished. He lists nicated as an intellectual-cultural message with (Ex. 51, GDC 08891). thirteen separate efforts that fall into cat- governmental-political consequences. (footnote in In the memorandum, he describes a process egories of communication of the ideas in original) for the dissemination of the message of Re- clear language, educating people in the prin- (Ex. 47, JR–0000646). newing American Civilization to virtually In February 1993, Mr. Gingrich first ap- ciples of replacing the welfare state with an every person he talks to. This dissemination proached Mr. Mescon about teaching the opportunity society, and recruiting public includes a copy of the Special Order speech course at KSC. (Ex. 48, Mescon 0278; 6/13/96 officials and activists to implement the doc- and a one-page outline of the course. He then Mescon Tr. 26–27). Mr. Gingrich had talked to trines of renewing American civilization. goes on to describe the role of the course in Dr. Mescon in October or November 1992 (Ex. 52, GDC 10644–10646). this process: about the general subject of teaching, but In the third section, Mr. Gingrich explic- there was no mention of the Renewing Amer- The course is only one in a series of strate- itly connects the course to the movement. ican Civilization course at that time. (6/13/96 gies designed to implement a strategy of re- First he starts out with three propositions Mescon Tr. 12–14). The early discussions with newing American civilization. that form the core of the course: (1) a refrain Mr. Mescon included the fact that Mr. Ging- (Ex. 51, GDC 08891). Another strategy involv- he refers to as the ‘‘four can’ts;’’ 27 (2) the rich intended to have the Renewing Amer- ing the course is: welfare state has failed; and (3) the welfare ican Civilization course disseminated Getting Republican activists committed to state must be replaced because it cannot be through a satellite uplink system. (Ex. 49, renewing American civilization, to setting repaired. (Ex. 52, GDC 10647; see also Ex. 54, Mescon 0664; 6/13/96 Mescon Tr. 29–30). up workshops built around the course, and to PFF 18361, 18365–18367). He then described the Shortly before this discussion with Mr. opening the party up to every citizen who goal of the movement: Mescon, in late January 1993, Mr. Gingrich wants to renew American civilization. met with a group of GOPAC Charter Mem- Our overall goal is to develop a blueprint 25 bers. In a letter written some months later (Ex. 51, GDC 08892). Jana Rogers, the Site for renewing America by replacing the wel- to GOPAC Charter Members, Mr. Gingrich Host Coordinator for the course in 1993, was fare state, recruit, discover, arouse and net- described the meeting as follows: shown a copy of this memorandum and said work together 200,000 activists including can- she had seen it in the course of her work at didates for elected office at all levels, and During our meeting in January, a number GOPAC. (7/3/96 Rogers Tr. 64). She said that arouse enough volunteers and contributors of Charter Members were kind enough to this represented what she was doing in her to win a sweeping victory in 1996 and then take part in a planning session on ‘‘Renew- job with the course. (7/3/96 Rogers Tr. 67–69). actually implement our victory in the first ing American Civilization.’’ That session not Steve Hanser, a paid GOPAC consultant and three months of 1997. only affected the substance of what the mes- someone who worked on the course, also said sage was to be, but also how best the new that the contents of the memorandum were Our specific goals are to: message of positive solutions could be dis- consistent with the strategy related to the 1. By April 1996 have a thorough, practical seminated to this nation’s decision makers— movement. (6/28/96 Hanser Tr. 42–45). blueprint for replacing the welfare state that elected officials, civic and business leaders, The most direct description of the role of can be understood and supported by voters the media and individual voters. In addition the course in relation to the movement to and activists. to my present avenues of communication I renew American civilization is set out in a We will teach a course on Renewing Amer- decided to add an avenue close to my heart, document which Mr. Gingrich indicates he ican civilization on ten Saturday mornings that being teaching. I have agreed with Ken- wrote. (7/17/96 Gingrich Tr. 162–163). The doc- this fall and make it available by satellite, nesaw State College, * * * to teach ‘‘Renew- ument has a fax stamp date of May 13, 1993 by audio and video tape and by computer to ing American Civilization’’ as a for-credit and indicates it is from the Republican interested activists across the country. A class four times during the next four years. Whip’s Office. (Ex. 52, GDC 10639–10649). The month will then be spent redesigning the Importantly, we made the decision to have document has three parts to it. The first is course based on feedback and better ideas. the class available as a ‘‘teleseminar’’ to stu- entitled ‘‘Renewing America Vision’’ (Ex. 52, Then the course will be retaught in Winter dents all across the country, reaching col- GDC 10639–10643); the second is entitled ‘‘Re- Quarter 1994. It will then be rethought and lege campuses, businesses, civic organiza- newing America Strategies’’ (Ex. 52, GDC redesigned for nine months of critical re- tions, and individuals through a live 10644–10646); and the third is entitled ‘‘Re- evaluation based on active working groups ‘‘uplink,’’ video tapes and audio tapes. Our newing American Civilization Our Goal.’’ actually applying ideas across the country hope is to have at least 50,000 individuals (Ex. 52, GDC 10647–10649). Mr. Gingrich said the course will be taught for one final time taking the class this fall and to have trained that the third part was actually a separate in Winter Quarter 1996. 200,000 knowledgeable citizen activists by document. (7/17/96 Gingrich Tr. 162–164). 2. Have created a movement and momen- 1996 who will support the principles and While all three parts are labeled ‘‘draft,’’ the tum which require the national press corps goals we have set. document was distributed to a number of Mr. (Ex. 50, Kohler 137–138). 22 During an inter- Gingrich’s staff members and associates, in- 26 Mr. Eisenach apparently sent a copy of this to a view with the Special Counsel, Mr. Gingrich cluding Mr. Hanser, Ms. Prochnow, Ms. Rog- GOPAC supporter in preparation for a meeting in said he doubted that he had written this let- ers, Mr. Gaylord, Mr. Eisenach, and Allan May of 1993. (7/12/96 Eisenach Tr. 146–149). In the ac- ter and said that the remark in the letter Lipsett (a press secretary). Each of the re- companying letter, Mr. Eisenach said: ‘‘The enclosed that the Charter Members’ comments played cipients of the document have described it as materials provide some background for our discus- a large role in developing the course ‘‘exag- an accurate description of the Renewing sions, which I expect will begin with a review of the American Civilization movement. (6/28/96 Vision, Strategies and Goals of our efforts to Renew Hanser Tr. 48, 53; 7/10/96 Prochnow Tr. 70–71; American Civilization. The class Newt is teaching at 22 The letter goes on to state that: [L]et me empha- Kennesaw State College this Fall is central to that size very strongly that the ‘‘Renewing American effort, and GOPAC and the newly created Progress & Civilization’’ project is not being carried out under 23 At the top of this memorandum is a handwritten Freedom Foundation both play important roles as the auspices of GOPAC, but rather by Kennesaw notation (not Mr. Gingrich’s) stating: ‘‘Tuesday 4 well. (Ex. 13, GOPAC2 2337).’’ State College and the Kennesaw State College Foun- p.m. GOPAC Mtg.’’ (Ex. 51, GDC 08891). 27 dation. We will not be relying on GOPAC staff to 24 ‘‘FONG’’ stands for Mr. Gingrich’s campaign or- This refrain goes as follows: ‘‘You cannot main- support the class, and I am not asking you for finan- ganization, ‘‘Friends of Newt Gingrich.’’ tain a civilization with twelve-year-olds having ba- cial support. 25 The ‘‘party’’ referred to in the quote is the Re- bies, fifteen-year-olds shooting each other, seven- (Ex. 50, Kohler 138) (emphasis in the original). publican Party. (11/13/96 Gingrich Tr. 80). teen-year-olds dying of AIDS, and eighteen-year- olds getting diplomas they can’t read.’’ January 21, 1997 CONGRESSIONAL RECORD — HOUSE H205 to actually study the material in order to re- United States House of Representatives. (11/ cussed below, that speech and training ses- port the phenomenon thus infecting them 13/96 Gingrich Tr. 169; 7/3/96 Rogers Tr. 38–40). sion centered on the Renewing American with new ideas, new language and new per- One of the methods it used was the creation Civilization message. Under ‘‘Ongoing Politi- spectives. of a political message and the dissemination cal Activities’’ the first aspect of the project 3. Have a cadre of at least 200,000 people of that message. (7/12/96 Eisenach Tr. 18–19; 6/ is described as sending tapes and establish- committed to the general ideas so they are 28/96 Hanser Tr. 13–14; 7/3/96 Rogers Tr. 36). ing a training module on Renewing Amer- The tool principally used by GOPAC to dis- creating an echo effect on talk radio and in ican Civilization and health care. (Ex. 61, seminate its message was audiotapes and letters to the editor and most of our can- PP001187; Ex. 62, Eisenach 2540). Under ‘‘Cur- didates and campaigns reflect the concepts videotapes. These were sent to Republican riculum Update and Expansion’’ the project of renewing America. activists, elected officials, potential can- is described as the production of new train- Replacing the welfare state will require didates, and the public. The ultimate pur- ing tapes based on Mr. Gingrich’s session at about 200,000 activists (willing to learn now pose of this effort was to help Republicans [sic] to replace the welfare state, to run for win elections. (6/27/96 Nelson Tr. 21–22; 7/15/96 the Virginia Republican Convention. (Ex. 61, office and to actually replace the welfare Gaylord Tr. 37, 39; 7/3/96 Rogers Tr. 35–36). PP01189; Ex. 62, Eisenach 2541). 30 1. GOPAC’S ADOPTION OF THE RENEWING state once in office) and about six million 2. GOPAC’S INABILITY TO FUND ITS POLITICAL AMERICAN CIVILIZATION THEME supporters (willing to write checks, put up PROJECTS IN 1992 AND 1993 yard signs, or do a half day’s volunteer At least as of late January 1993, Mr. Ging- work). rich and Mr. Eisenach had decided that At the end of 1992, GOPAC was at least (Ex. 52, GDC 10647–10649). The ‘‘sweeping vic- GOPAC’s political message for 1993 and 1994 $250,000 short of its target income (Ex. 65, tory’’ referred to above is by Republicans. would be ‘‘Renewing American Civiliza- PFF 38054) and financial problems lasted (11/13/96 Gingrich Tr. 86). The reference to tion.’’ 28 (Ex. 59, PFF 37584–37590; 11/13/96 throughout 1993. (7/15/96 Gaylord Tr. 71–72). ‘‘our candidates’’ above is to Republican can- Gingrich Tr. 157; 7/17/96 Gingrich Tr. 61–62, 74; Because of these financial shortfalls, GOPAC didates. (11/13/96 Gingrich Tr. 90). According 7/15/96 Gaylord Tr. 35–36, 42–43; 7/3/96 Rogers had to curtail its political projects, particu- Tr. 35, 54–56; 6/28/96 Taylor Tr. 26; 6/27/96 Nel- to Mr. Gingrich, Mr. Gaylord, and Mr. larly the tape program described above. (Ex. son Tr. 34, 46). As described in a February Eisenach, the three goals set forth above 65, PFF 38054–38060; Ex. 66, WGC 07428; 7/15/96 1993 memorandum over Mr. Gingrich’s name were to be accomplished by the course. (7/17/ Gaylord Tr. 71–72, 76). For example, accord- 96 Gingrich Tr. 174–179; 7/15/96 Gaylord Tr. 66– to GOPAC Charter Members: GOPAC’s core mission—to provide the ing to Mr. Gaylord, GOPAC usually sent out 67; 7/12/96 Eisenach Tr. 225; Ex. 55, GOPAC2 eight tapes a year; however, in 1993, it only 2419; Ex. 56, GOPAC2 2172–2173; Ex. 57, Mescon ideas and the message for Republicans to win sent out two. (7/15/96 Gaylord Tr. 76). One of 0626). at the grass roots—is now more important In various descriptions of the course, Mr. than ever, and we have important plans for these was the ‘‘Renewing American Civiliza- Gingrich stated that his intention was to 1993 and for the 1993–1994 cycle. The final en- tion’’ tape made from Mr. Gingrich’s June teach it over a four-year period. After each closure is a memorandum from Jeff Eisenach 1993 training session at the Virginia Repub- teaching of the course he intended to have it outlining our 1993 program which I encour- lican Convention (Ex. 63, JG 000001693). Ac- reviewed and improved. The ultimate goal age you to review carefully and, again, let companying the mailing of this tape was a was to have a final product developed by me know what you think. letter from Joe Gaylord in his role as Chair- April of 1996. (7/17/96 Gingrich Tr. 109; Ex. 56, (Ex. 60, PFF 37569). The attached memoran- man of GOPAC. That letter states: GOPAC2 2170). An explanation of this goal is dum, dated February 1, 1993, is from Mr. Ideas matter, and replacing the welfare found in a three-page document, in Mr. Ging- Eisenach to Mr. Gingrich and references state with an Opportunity society is so im- rich’s handwriting, entitled ‘‘End State April their recent discussions concerning GOPAC’s portant that Newt is developing a college political program for 1993. (Ex. 59, PFF 37584– 1996.’’ (Ex. 58, PFF 20107–20109). Mr. Gingrich course that he’ll be teaching this fall on this 37590). It then lists five different programs. said he wrote this document early in the subject, Renewing American Civilization. The fourth one states: process of developing the movement and de- I wanted you to hear his initial thoughts scribed it as a statement of where he hoped (4) Message Development/’’Renewing Amer- because it seems to me that we can’t answer to be by April 1996 in regard to the move- ican Civilization’’—focus group project designed the question ‘‘What does the Republican ment and the course. (7/17/96 Gingrich Tr. to test and improve the ‘‘Renewing American Party stand for?’’ without considering the is- 108–115). On the first page he wrote that the Civilization’’ message in preparation for its use sues Newt has raised in this speech. 200,000 plus activists will have a common in 1993 legislative campaigns and 1994 Congres- (Ex. 67, WGC 06215). In light of GOPAC’s poor language and general vision of renewing sional races. America, and a commitment to replacing the (Ex. 59, PFF 37584) (emphasis in original). Of financial condition, the dissemination of the welfare state. In addition, ‘‘[v]irtually all the other four programs listed, three relate Renewing American Civilization message Republican incumbents and candidates [will] directly to the use of the Renewing Amer- through the course was beneficial to its po- have the common language and goals.’’ (Ex. ican Civilization message. The fourth—the litical projects. In this regard, the following 58, PFF 20107). On the second page he wrote ‘‘ ‘Tory (Franchise) Model’ R & D’’—was not exchange occurred with Mr. Gingrich: that the ‘‘Republican platform will clearly done. (7/12/96 Eisenach Tr. 188). This same po- Mr. Cole: [I]s one of the things GOPAC be shaped by the vision, language, goals and litical program was also listed in two sepa- wanted to have done during 1993 and 1994 was analysis of renewing America.’’ (Ex. 58, PFF rate GOPAC documents dated April 26, 1993. the dissemination of its message; is that cor- 20108). In addition, virtually all Republican One is entitled ‘‘1993 GOPAC POLITICAL rect? Presidential candidates will broadly agree on PROGRAM’’ (Ex. 61, PP001187–00193) and the Mr. Gingrich: Yes. that vision, language, goals and analysis. other is the ‘‘GOPAC Report to Sharehold- Mr. Cole: GOPAC also did not have much (Ex. 58, PFF 20108). The Clinton administra- ers.’’ (Ex. 62, Eisenach 2536–2545). The first money in those years; is that correct? tion and the Democratic Party will be meas- page of the Report to Shareholders states: Mr. Gingrich: That is correct. Particu- ured by the vision, principles and goals of re- The challenge facing Republicans, how- larly—it gets better in ’94, but ’93 was very newing America and there will be virtual ever, is an awesome one: We must build a tight. agreement that the welfare state has failed. governing majority, founded on basic prin- Mr. Cole: That curtailed how much it could (Ex. 58, PFF 20108). On the last page Mr. ciples, that is prepared to do what we failed spend on disseminating its message? Gingrich wrote a timeline for the course run- to do during the last 12 years: Replace the Mr. Gingrich: Right. ning from September of 1993 through March Welfare State with an Opportunity Society Mr. Cole: The message that it was trying of 1996. At the point on the timeline where and demonstrate that our ideas are the key to disseminate was the Renewing American November 1994 appears, he wrote the word to progress, freedom and the Renewal of Civilization message; is that right? ‘‘Election.’’ (Ex. 58, PFF 20109). When Mr. American Civilization. Mr. Gingrich: Was the theme, yes. Hanser was asked about this document he (Ex. 62, Eisenach 2536). said that the vision, language, and concepts In describing the political programs, these documents provide status reports that indi- islature and did not need GOPAC’s help. (7/15/96 Gay- of the Renewing American Civilization lord Tr. 42). cate that the Renewing American Civiliza- movement discussed in the document were 30 GOPAC later produced two tapes from the ses- being developed in the course. (6/28/96 Hanser tion message is at the center of each project. sion. One was called ‘‘Renewing American Civiliza- Tr. 53). He went on to say that ‘‘End State’’ Under ‘‘Off-Year State Legislative Races tion’’ and was mailed to 8,742 people. (Ex. 63, JG was ‘‘an application of those ideas to a spe- (New Jersey, Virginia)’’ the project is de- 000001693). The other was called ‘‘Leading the Major- cific political end, which is one of the pur- scribed as ‘‘Newt speaking at and teaching ity’’ and became a major training tool for GOPAC, poses, remember, for the course.’’ (6/28/96 training seminar for candidates at [a June 5, used at least into 1996. (6/27/96 Nelson Tr. 18). Both Hanser Tr. 54). There was an appreciation 1993] Virginia Republican Convention.’’ (Ex. are based on the Renewing American Civilization 61, PP001187; Ex. 62, Eisenach 2540). 29 As dis- that this would be primarily a Republican message and contain the core elements of the endeavor. (6/28/96 Hanser Tr. 30). course. The ‘‘Renewing American Civilization’’ tape contains more of the RAC philosophy than the C. GOPAC and Renewing American Civilization 28 As mentioned above, the earliest mention of the Renewing American Civilization course was in Feb- ‘‘Leading the Majority’’ tape, however, both contain As discussed above, GOPAC was a political ruary 1993. (Ex. 47, JR–0000646). the basics of the course that Mr. Gingrich describes action committee dedicated to, among other 29 It is not clear whether any work was done in as the ‘‘central proposition’’ or ‘‘heart of the things, achieving Republican control of the New Jersey because that state had a Republican leg- course.’’ (Ex. 56, GOPAC2 2146–2209; Ex. 64, PP000330– 000337; Ex. 54, PFF 18361, 18365–18367). H206 CONGRESSIONAL RECORD — HOUSE January 21, 1997 (11/13/96 Gingrich Tr. 157–158). With respect to at GOPAC raising funds for the course. (7/10/ four of GOPAC’s five political projects as re- whether the dissemination of the course ben- 96 Prochnow Tr. 14–16; 6/13/96 Mescon Tr. 63– lating to Renewing American Civilization efited GOPAC, the following exchange oc- 67, 82; Ex. 74, Documents produced by (Ex. 60, PFF 37569–37576), and (2) GOPAC’s curred: Prochnow). 33 A number of the people and en- Charter Meeting agenda entitled ‘‘Renewing Mr. Cole: Was GOPAC better off in a situa- tities she contacted were GOPAC supporters. American Civilization.’’ As discussed below, tion where the message that it had chosen as In fact, according to Mr. Eisenach, approxi- this Charter Meeting included breakout ses- its political message for those years was mately half of the first year’s funding for the sions to help develop a number of the lec- being disseminated by the course? Was it course came from GOPAC supporters. (Ex. 69, tures for the course, as well as GOPAC’s better off? PFF 1168–1169). Some of those people also message for the 1993–1994 election cycle. (Ex. Mr. Gingrich: The answer is yes. helped fund the course in 1994. (See attach- 78, PP00448–PP000452). As Mr. Gingrich stated ments to Ex. 69, PFF 1252–1277) (the docu- (11/13/96 Gingrich Tr. 167). in his interview, his intention was to have ments contain Mr. Eisenach’s marks of ‘‘G’’ GOPAC use Renewing American Civilization 3. GOPAC’S INVOLVEMENT IN THE DEVELOPMENT, next to the people, companies, and founda- as its message during this time frame. (7/17/ FUNDING, AND MANAGEMENT OF THE RENEW- tions that were donors or related to donors 96 Gingrich Tr. 74; 7/3/96 Rogers Tr. 54–56). ING AMERICAN CIVILIZATION COURSE to GOPAC.)) In 1993 Mr. Eisenach periodically produced a. GOPAC personnel When Mr. Eisenach resigned from GOPAC a list of GOPAC projects. The list is entitled Starting at least as early as February 1993, and assumed the title of the course’s project ‘‘Major Projects Underway’’ and was used for Mr. Eisenach, then GOPAC’s Executive Di- director, two GOPAC employees joined him staff meetings. (7/12/96 Eisenach Tr. 213; 7/15/ rector, was involved in developing the Re- in his efforts. Kelly Goodsell had been Mr. 96 Gaylord Tr. 79–80; 6/28/96 Taylor Tr. 43–44). newing American Civilization course. Al- Eisenach’s Administrative Assistant at Items related to the Renewing American Civ- though Mr. Eisenach has stated that Mr. GOPAC since March of 1993 (7/9/96 Goodsell ilization course were listed in several places Gaylord was responsible for the development Tr. 8, 11), and Michael DuGally had been an on GOPAC’s project sheets. For example, of the course until mid-May 1993 (7/12/96 employee at GOPAC since January 1992. (7/19/ from April 1993 through at least June 1993, Eisenach Tr. 71–75; Ex. 68, Eisenach Testi- 96 DuGally Tr. 9–10). Both went to work on ‘‘Renewing American Civilization Support’’ mony Before House Ethics Committee at Tr. the course as employees of Mr. Eisenach’s is listed under the ‘‘Planning/Other’’ section 142; Ex. 69, PFF 1167), Mr. Gaylord stated Washington Policy Group (‘‘WPG’’).34 In the of GOPAC’s projects sheets. (Ex. 79, JG that he never had such a responsibility. (7/15/ contract between WPG and KSCF, it was un- 000001139, JG 000001152, JG 000001173, JG 96 Gaylord Tr. 15–18). Additionally, Mr. Ging- derstood that WPG would devote one-half of 000001270). Another entry which appears a rich and others involved in the development the time of its employees to working on the number of times under ‘‘Planning/Other’’ is of the course identified Mr. Eisenach as the course. WPG had only one other client at ‘‘RAC Pert Chart, etc.’’ (Ex. 79, JG 000001152, person primarily responsible for the develop- this time—GOPAC. In its contract with JG 000001173, JG 000001270). It refers to a ment of the course from early on. (7/17/96 GOPAC, WPG was to receive the same time-line Mr. Eisenach wrote while he was Gingrich Tr. 117, 121; 6/13/96 Mescon Tr. 30–31; monthly fee as was being paid by KSCF in the Executive Director of GOPAC relating to 6/28/96 Hanser Tr. 74–75; 7/3/96 Rogers Tr. 17– return for one-half of the time of WPG’s em- the development of the various components 18, 22). 31 Several documents also establish ployees. (Ex. 76, PFF 37450–37451). The con- of the course, including marketing and site Mr. Eisenach’s role in the development of tract also stated that to the extent that coordination, funding, readings, and the the course starting at an early stage. One WPG did not devote full time to KSCF and course textbook. (Ex. 80, PFF 7529–7533; 7/12/ document written by Mr. Eisenach is dated GOPAC projects, an adjustment in the fee 96 Eisenach Tr. 212–213). Finally, under the February 25, 1993, and shows him, as well as paid to WPG would be made. (Ex. 76, PFF heading ‘‘Political’’ on the May 7, 1993, others, tasked with course development and 37450). Neither Ms. Goodsell nor Mr. DuGally project sheet, is listed the phrase ‘‘CR/RAC marketing. (Ex. 70, PFF 16628). A memoran- worked on any GOPAC project after they Letter.’’ (Ex. 79, JG 000001152). This refers to dum from Mr. Gingrich to Mr. Mescon, dated started working on the course in June of a mailing about the course sent over Mr. March 1, 1993, describes how Mr. Eisenach is 1993. (7/9/96 Goodsell Tr. 8, 10–11; 7/19/96 Gingrich’s name by GOPAC to approxi- involved in contacting a number of institu- DuGally Tr. 14). Mr. Eisenach said that he mately 1,000 College Republicans. (Ex. 81, tions in regard to funding for the course. spent at the most one-third of his time dur- Mescon 0918, 0915, 0914 and Meeks 0038–0040; 7/ (Ex. 71, KSC 3491). ing this period on GOPAC projects. (7/12/96 15/96 Gaylord Tr. 81–82). Aside from Mr. Eisenach, other people af- Eisenach Tr. 36–37). No adjustment to WPG’s filiated with GOPAC were involved in the de- fee was made by GOPAC. (7/12/96 Eisenach Tr. b. Involvement of GOPAC charter members in velopment of the course. Mr. Gingrich was 44).35 course design General Chairman of GOPAC and had a sub- The February 15, 1993, agenda discussed stantial role in the course. Jana Rogers above also gives some indication of GOPAC’s As discussed earlier, Mr. Gingrich had a served as Mr. Eisenach’s executive assistant role in the development of the Renewing meeting with GOPAC Charter Members in at GOPAC during the early part of 1993 and American Civilization course. (Ex. 47, JR– January 1993 to discuss the ideas of Renew- in that role worked on the development of 0000645–0000647). Of the eight attendees at ing American Civilization. (11/13/96 Gingrich the course. (7/3/96 Rogers Tr. 16–17). In June that meeting, five worked for or were closely Tr. 132). According to a letter written about 1993, she temporarily left GOPAC at Mr. associated with GOPAC (Mr. DuGally, Mr. that meeting, the idea to teach arose from Eisenach’s request to become the course’s Eisenach and Ms. Rogers were employees, that meeting. In April 1993, GOPAC held its Site Host Coordinator. As a condition of her Mr. Hanser was a member of the Board and semi-annual Charter Meeting. Its theme was becoming the site host coordinator, she re- a paid GOPAC consultant, and Mr. Gingrich ‘‘Renewing American Civilization.’’ (Ex. 78, ceived assurances from both Mr. Eisenach was the General Chairman). Furthermore, PP000448–PP000452). Mr. Gingrich gave the and Mr. Gaylord that she could return to the agenda for that meeting indicates that keynote address, entitled ‘‘Renewing Amer- GOPAC when she had finished her assign- GOPAC political issues were to be discussed ican Civilization,’’ and there were five break- ment with the course. (7/3/96 Rogers Tr. 12– as well as course planning issues. Two of the out sessions entitled ‘‘Advancing the Five 16). After approximately five months as the GOPAC political issues apparently related Pillars of Twenty-first Century Democracy.’’ course’s Site Host Coordinator, she returned to: (1) the political program described in the (Ex. 78, PP000449). Each of the breakout ses- to GOPAC for a brief time. (7/3/96 Rogers 24– February 1, 1993, memorandum which lists sions was named for a lecture in the course, 25). Steve Hanser, a member of the GOPAC and these sessions were used to help develop Board and a paid GOPAC consultant, helped the content of the course (11/13/96 Gingrich 33 Mr. Eisenach has stated that he did not ask Ms. develop the course. (6/28/96 Hanser Tr. 10, 19– Tr. 164–165; 7/17/96 Gingrich Tr. 69–70; 7/12/96 Prochnow to do this fundraising work, but rather Eisenach Tr. 144–146; 7/15/96 Gaylord Tr. 46) as 21). Mr. Gaylord was a paid consultant for Mr. Gaylord did. (7/12/96 Eisenach Tr. 71, 75; Ex. 65, GOPAC and had a role in developing the PFF 1168). However, both Mr. Gaylord and Ms. well as GOPAC’s political message for the course. (7/15/96 Gaylord Tr. 15). Prochnow clearly state that it was Mr. Eisenach, 1993 legislative campaigns and the 1994 con- Pamla Prochnow was hired as the Finance not Mr. Gaylord, who directed Ms. Prochnow to per- gressional races. (11/13/96 Gingrich Tr. 164– Director for GOPAC in April 1993. 32 Ms. form the fundraising work. (7/15/96 Gaylord Tr. 16, 17; 165; Ex. 62, Eisenach 2540). As stated in a Prochnow spent a portion of her early time 7/10/96 Prochnow Tr. 14, 73–74; Ex. 71, Letter dated memorandum from Mr. Eisenach to GOPAC July 25, 1996, from Prochnow’s attorney). Charter Members, these breakout sessions 34 As discussed earlier, WPG was a corporation were intended to ‘‘dramatically improve 31 The February 15, 1993, agenda for the meeting formed by Mr. Eisenach which had a contract with where the RAC course and other GOPAC issues were KSCF to run all aspects of the course. both our understanding of the subject and discussed, lists Mr. Eisenach as an attendee, but 35 The only other person who was involved in the our ability to communicate it.’’ (Ex. 82, Rob- does not list Mr. Gaylord as being present. (Ex. 47, early development of the course was Nancy erts 0045–0048). JR–0000645). Desmond. She did not work for GOPAC, but had c. Letters sent by GOPAC 32 During her interviewing process, Ms. Prochnow been a volunteer at Mr. Gingrich’s campaign office was provided with materials to help her understand for approximately a year before starting to work on In June of 1993, GOPAC sent a letter over the goals of GOPAC. (Ex. 72, GOPAC2 0529). Al- the course. (6/13/96 Desmond Tr. 15–16). She contin- Mr. Gingrich’s signature stating that ‘‘it is though she has no specific recollection as to what ued to work as a volunteer for Mr. Gingrich’s cam- these materials were, she believes they were mate- paign until July of 1993, when she was told to resign vital for Republicans to now DEVELOP and rials related to the Renewing American Civilization from the campaign because of the perceived negative put forward OUR agenda for America.’’ (Ex. movement. (7/10/96 Prochnow Tr. 18–19; Ex. 73, image her two roles would project. (6/13/96 Desmond 83, PP000534) (emphasis in original). In dis- PP000459–000463; PP00778). Tr. 37–38; Ex. 77, PFF 38289). cussing an enclosed survey the letter states: January 21, 1997 CONGRESSIONAL RECORD — HOUSE H207 It is the opening step in what I want to be As the new finance director, I want to in- meant that Mr. Gingrich had seen the letter. an unprecedented mobilization effort for Re- troduce myself and to assure you of my com- (9/6/96 Robinson Tr. 4). The letter sent to Mr. publicans to begin the process of replacing mitment and enthusiasm to the recruitment Bergschneider on May 12, 1994, was produced America’s failed welfare state. and training of grassroots Republican can- from the files of Mr. Gingrich’s Washington, And the key political component of that didates. In addition, with the course Newt D.C. office and has Ms. Robinson’s initials on effort will be an all-out drive to end the will be teaching in the fall—Renewing Amer- it. (9/6/96 Robinson Tr. 4). Democrat’s 40 year control of the U.S. House ican Civilization—I see a very real oppor- The letters sent out over Mr. Gingrich’s or Representatives in 1994! tunity to educate the American voting popu- signature were shown to Mr. Gingrich during an interview. He said that none of them con- (Ex. 83, PP000535).36 The letter then states lation to Republican ideals, increasing our tained his signature, he did not recall seeing that it is important to develop the themes opportunity to win local, state and Congres- them prior to the interview, and said he and ideas that will be needed to accomplish sional seats.38 would not have written them in the language the victory in 1994. (Ex. 83, PP000536). In lan- (Ex. 85, PP000194). On January 3, 1994, Ms. used. (7/17/96 Gingrich Tr. 77–78, 140–141). Mr. guage that is very similar to the core of the Prochnow sent another letter to the Charter Gaylord said that ‘‘it seemed to [him] there course, but with an overtly partisan aspect Members. It states: was a whole series of kind of usual cor- added to it, the letter states: As we begin the new year, we know our respondence that was done by the staff’’ that Personally, I believe we can and should goals and have in place the winning strate- Mr. Gingrich would not see. (7/15/96 Gaylord turn the 1994 midterm elections into not just gies. The primary mission is to elect Repub- Tr. 77). The content of the letters listed a referendum on President Clinton, but on licans at the local, state and congressional above, however, are quite similar to state- whether we maintain or replace the welfare level. There, also, is the strong emphasis on ments made directly by Mr. Gingrich about state and the Democratic Party which sup- broadcasting the message of renewing Amer- the movement and the role of the course in ports it. ican civilization to achieve peace and pros- the movement. (See, e.g., Ex. 47, JR–0000646 I believe the welfare state which the Demo- perity in this country. (‘‘emphasis is on the Republican Party as the crats have created has failed. (Ex. 86, PP000866). In another letter sent over primary vehicle for renewing American civ- In fact, I challenge anyone to say that it Mr. Gingrich’s name, the course is again dis- ilization’’); Ex. 52 GDC 10639–10649 (‘‘sweeping has succeeded, when today in America cussed. The letter, dated May 12, 1994, is ad- victory’’ will be accomplished through the twelve year olds are having children, fifteen dressed to Marc Bergschneider and states: course); Ex. 88, GDC 10729–10733 (‘‘Democrats year olds are killing each other, seventeen are the party of the welfare state.’’ ‘‘Only by year olds are dying of AIDS and eighteen I am encouraged by your understanding voting Republican can the welfare state be year olds are being given high school diplo- that the welfare state cannot merely be re- replaced and an opportunity society be cre- mas they cannot even read. paired, but must be replaced and have made ated.’’)) a goal of activating at least 200,000 citizen * * * * * D. ‘‘Replacing the Welfare State With an activists nationwide through my course, Re- Opportunity Society’’ as a Political Tool And what I want to see our Party work to newing American Civilization. We hope to replace it with is a plan to renew America educate people with the fact that we are en- According to Mr. Gingrich, the main theme of both the Renewing American Civilization based on what I call ‘‘pillars’’ of freedom and tering the information society. In order to movement and the course was the replace- progress: make sense of this society, we must rebuild ment of the welfare state with an oppor- (1) Personal strength; an opportunistic country. In essence, if we tunity society. (7/17/96 Gingrich Tr. 52, 61, (2) A commitment to quality in the work- can reach Americans through my course, place; 170; 11/13/96 Gingrich Tr. 85). Mr. Gingrich independent expenditures, GOPAC and other also said, ‘‘I believe that to replace the wel- (3) Spirit of American Inventiveness; strategies, we just might unseat the Demo- (4) Entrepreneurial free enterprise applied fare state you almost certainly had to have cratic majority in the House in 1994 and a [R]epublican majority.’’ (7/17/96 Gingrich to both the private and public sectors; make government accountable again. (5) Applying the lessons of American his- Tr. 51). ‘‘I think it’s hard to replace the wel- tory as to what works for Americans to pro- (Ex. 87, GDC 01137). Current and former fare state with the [D]emocrats in charge.’’ posed government solutions to our problems. GOPAC employees said that before a letter (7/17/96 Gingrich Tr. 62). The course was de- After being active in politics for thirty would go out over Mr. Gingrich’s signature, signed to communicate the vision and lan- years, and being in Congress for fourteen of it would be approved by him. (7/3/96 Rogers guage of the Renewing American Civilization them, I firmly believe these five principles Tr. 88; 6/27/96 Nelson Tr. 56–60). According to movement and ‘‘was seen as a tool that could can develop a revolutionary change in gov- Mr. Eisenach, Mr. Gingrich ‘‘typically’’ re- be used to replace the welfare state.’’ (7/17/96 ernment. Properly applied, they can dra- viewed letters that went out over his signa- Gingrich Tr. 159–160; see also 11/13/96 Gingrich Tr. 47, 76).39 matically improve safety, health, education, ture, but did not sign all letters that were part of a mass mailing. (7/12/96 Eisenach Tr. In addition to being the title of a move- job creation, the environment, the family ment, the course, and GOPAC’s political and our national defense. 35). With respect to letters sent to individuals over Mr. Gingrich’s name, Mr. Eisenach message for 1993 and 1994, ‘‘Renewing Amer- (Ex. 83, PP000536). In other letters sent out said the following: ican Civilization’’ was also the main message by GOPAC, the role of the Renewing Amer- of virtually every political and campaign Mr. Eisenach: [Mr. Gingrich] would either ican Civilization course in relation to the speech made by Mr. Gingrich in 1993 and 1994. review those personally or be generally Republican political goals of GOPAC were (7/17/96 Gingrich Tr. 69).40 According to Mr. described in explicit terms. A letter to Neil aware of the content. In other words, on Gingrich, there was an effort in 1994 to use Gagnon, dated May 5, 1993, over Mr. Ging- rare, if any, occasions, did I or anybody else the ‘‘welfare state’’ label as a campaign tool rich’s name, states: invent the idea of sending a letter to some- against the Democrats and to use the ‘‘op- body, write the letter, send it under Newt’s portunity society’’ label as an identification As we discussed, it is time to lay down a signature and never check with him to see blue print—which is why in part I am teach- for the Republicans. (7/17/96 Gingrich Tr. 113). whether he wanted the letter to go. Mr. Gingrich made similar comments in a ing the course on Renewing American Civili- There were occasions—now, sometimes zation. Hopefully, it will provide the struc- subsequent interview: that would be—Newt and I would discuss the Mr. Cole: During [1993–1994] was there an ture to build an offense so that Republicans generic need for a letter. I would write the can break through dramatically in 1996. We effort to connect the Democrats with the letter and send it and fax a copy to him and welfare state? have a good chance to make significant gains make sure he knew that it had been sent. in 1994, but only if we can reach the point Mr. Cole: Would you generally review the where we are united behind a positive mes- 39 During his interview, the following exchange oc- contents of the letter with him prior to it curred regarding the movement: sage, as well as a critique of the Clinton pro- going out? gram.37 Mr. Cole: Yet there was an emphasis in the move- Mr. Eisenach: Not necessarily word for ment on the Republican Party? (Ex. 84, GOPAC2 0003). In a letter dated June word. It would depend. But as a general mat- Mr. Gingrich: There certainly was on my part, yes. 21, 1993, that Pamla Prochnow, GOPAC’s new ter, yes. Mr. Cole: You were at the head of the movement, finance director, sent to Charter Members as were you not? (7/12/96 Eisenach Tr. 36). Mr. Gingrich’s Ad- Mr. Gingrich: Well, I was the guy trying to create a follow-up to an earlier letter from Mr. ministrative Assistant, Rachel Robinson, Gingrich, she states: it. stated that in 1993 and 1994 whenever she re- Mr. Cole: The course was used as the tool to com- ceived a letter or other document for Mr. municate the message of the movement, was it not? 36 The copy of the letter produced is a draft. While Gingrich that was to be filed, she would sign Mr. Gingrich: Yes, it was a tool, yes. Mr. Gingrich was not able to specifically identify Mr. Gingrich’s name on the document and (11/13/96 Gingrich Tr. 76). the letter, he did state that the letter fit the mes- place her initials on it. This ‘‘usually’’ 40 According to Ms. Rogers, the course’s Site Host sage and represented the major theme of GOPAC at Coordinator, there was coordination between the that time. (7/17/96 Gingrich Tr. 60–61). message, the movement, and activists. ‘‘They were 37 Jana Rogers had not seen this letter before her 38 Both Dr. Mescon and Dr. Siegel of KSC were extensions of Newt and each had to make—each interview, but after reading it she said that through shown some of these letters. They both said that had group had to make sure—what I mean specifically is her work on the course, she believed the contents of they known of this intention in regard to the course, GOPAC and the class had to make sure that they the letter set out one of the goals of the Renewing they would not have viewed it as an appropriate were using the same message that Newt was trying American Civilization course. (7/3/96 Rogers Tr. 75– project for KSC. (6/13/96 Mescon Tr. 84–87; 6/13/96 to disseminate, that it was identical. 76). Siegel Tr. 60–62). (7/3/96 Rogers Tr. 54). H208 CONGRESSIONAL RECORD — HOUSE January 21, 1997 Mr. Gingrich: Absolutely; routinely and republican party that will frankly just inex- have a language to explain renewing Amer- petitively. orably crow[d] out the Democrats and turn ican civilization, a language to explain how Mr. Cole: And a campaign use of that? them into minority status. to replace the welfare state, and three topics Mr. Gingrich: Absolutely. (Ex. 56, GOPAC2 2155–2156). Mr. Gingrich told that are going to arouse volunteers and Mr. Cole: A partisan use, if you will? the audience that he would discuss three arouse contributions and help people say, Mr. Gingrich: Absolutely. areas in his remarks: (1) the principles of re- Yes, I want this done. Mr. Cole: And was there an effort to con- newing American civilization; (2) the prin- (Ex. 56, GOPAC2 2207).43 nect the Republicans with the opportunity ciples and skills necessary to be a ‘‘renewing society? candidate’’ and then ultimately a ‘‘renewing In a document that Mr. Gingrich appar- Mr. Gingrich: Absolutely. incumbent;’’ and (3) the concept and prin- ently wrote during this time (Ex. 89, Mr. Cole: A partisan use? ciples for creating a community among those Eisenach 2868–2869), the course is related to Mr. Gingrich: Yes, sir. who are committed to replacing the welfare the Renewing American Civilization move- Mr. Cole: And that was the main theme of state and renewing American civilization. ment in terms of winning a Republican ma- the course, was it not, replacement of the (Ex. 56, GOPAC2 2168). In speaking of the jority. The ‘‘House Republican Focus for welfare state with the opportunity society? first area, Mr. Gingrich said that it is a very 1994’’ is directed at having Republicans com- Mr. Gingrich: No. The main theme of the complicated subject. Because of this he was municate a positive message so that a major- course is renewing American civilization and only going to give a ‘‘smattering’’ of an out- ity of Americans will conclude that their the main subset is that you have—that you line at the training seminar. (Ex. 56, only hope for real change is to vote Repub- have to replace the welfare state with an op- GOPAC2 2170). He said, however, that in the lican. In describing that message, the docu- portunity society for that to happen. fall he planned to teach a twenty-hour ment states: (11/13/96 Gingrich Tr. 79–80). As referred to course on the subject, and then refine it and The Republican party can offer a better above, Mr. Gingrich held a training seminar teach it again over a four-year period. (Ex. life for virtually every one if it applies the for candidates on behalf of GOPAC at the 56, GOPAC2 2170). He then described the principles of American civilization to create Virginia Republican Convention in June 1993. three goals he had for the course: a more flexible, decentralized market ori- (7/15/96 Gaylord Tr. 29–30). He gave a speech First, we want to have by April of ’96 a ented system that uses the Third Wave of entitled ‘‘Renewing American Civilization’’ genuine intellectual blueprint to replace the change and accepts the disciplines of the which described the nature of the movement welfare state that you could look at as a cit- world market. and the course. (Ex. 56, GOPAC2 2146–2209). izen and say, yeah, that has a pretty good These ideas are outlined in a 20 hour intel- Near the beginning of his speech, Mr. Ging- chance of working. That’s dramatically bet- lectual framework ‘‘Renewing American Civ- rich said: ter than what we’ve been doing. ilization’’ available on National What I first want to suggest to you [is] my Second, we want to find 200,000 activist Empowerment Television every Wednesday personal belief that we are engaged in a citizens, and I hope all of you will be part of from 1 pm to 3 pm and available on audio great moral and practical effort, that we are this, committed at every level of American tape and video tape from 1–800–TO–RENEW. committed to renewing American civiliza- life to replacing the welfare state. Because tion, and I believe that’s our battle cry. That America is a huge decentralized country. (Ex. 89, Eisenach 2869). In a document dated we want to be the party and the movement You’ve got to have school boards, city coun- March 21, 1994, and entitled ‘‘RENEWING that renews American civilization and that cils, hospital boards, state legislatures, AMERICA: The Challenge for Our Genera- 44 renewing American civilization is both an county commissioners, mayors, and you’ve tion,’’ Mr. Gingrich described a relation- idealistic cause and a practical cause at the got to have congressmen and senators and ship between the course and the movement. same time. the President and governors, who literally (Ex. 90, GDC 00132–00152). Near the beginning (Ex. 56, GOPAC2 2146). He then told the audi- [sic] you take all the elected posts in Amer- of the document, one of the ‘‘key propo- ence that he has four propositions with ica and then you take all the people nec- sitions’’ listed is that the welfare state has which 80% to 95% of Americans will agree. essary to run for those posts and to help the failed and must be replaced with an oppor- These are: (1) there is an American civiliza- campaigns, etc., I think it takes around tunity society. (Ex. 90, GDC 00136). The option; (2) the four can’ts; (3) the welfare state 200,000 team players to truly change Amer- portunity society must be based on, among has failed; and (4) to renew American civili- ica. other things, the principles of American civilization. (Ex. 90, GDC 00136). The document zation it is necessary to replace the welfare (Ex. 56, GOPAC2 2170–2171). state. (Ex. 56, GOPAC2 2149–2153). 41 Mr. Ging- states that the key ingredient for success is rich then went on to relate the principles of Third, we create a process—and this is a movement to renew American civilization renewing American civilization to the Re- something you can all help with in your own by replacing the welfare state with an oppor- publican party: districts—we create a process interesting tunity society. (Ex. 90, GDC 00137). That We can’t do much about the Democrats. enough that the national news media has to movement will require at least 200,000 ‘‘part- They went too far to the left. They are still actually look at the material in order to ners for progress’’ committed to the goal of too far to the left. That’s their problem. But cover the course.42 replacing the welfare state with an oppor- we have a huge burden of responsibility to (Ex. 56, GOPAC2 2173). The transcript of his tunity society and willing to study the prin- change our behavior so that every one who speech goes on for the next 30 pages to de- ciples of American civilization, work on wants to replace the welfare state and every scribe the five pillars of American civiliza- campaigns, run for office, and engage in one who wants to renew American civilization that form the basis of the course, and other activities to further the movement. tion has a home, and it’s called being Repub- how to use them to get supporters for the (Ex. 90, GDC 00138).45 Under the heading lican. We have to really learn how to bring candidates’ campaigns. In discussing this Mr. ‘‘Learning the Principles of American Civili- them all in. Gingrich said: zation’’ the document states, ‘‘The course, And I think the first step of all that is to Now, let me start just as [a] quick over- ‘Renewing American Civilization’, is de- insist that at the core of identification the view. First, as I said earlier, American civili- signed as a 20 hour introduction to the prin- only division that matters is that question. zation is a civilization. Very important. It is ciples necessary to replace the welfare state You want to replace the welfare state and impossible for anyone on the left to debate with an opportunity society.’’ (Ex. 90, GDC renew American civilization. The answer is you on that topic. 00139). It then lists the titles of each class just fine, come and join us. And not allow and the book of readings associated with the the news media, not allow the Democrats, * * * * * course. The next section is titled ‘‘Connect- not allow interest groups to force us into But the reason I say that is if you go out ing the ‘Partners’ to the ‘Principles’.’’ (Ex. fights below that level in terms of defining and you campaign on behalf of American civ- 90, GDC 00140). It describes where the course who we are. That in any general election or ilization and you want to renew American is being taught, including that it is being of- any effort to govern that we are every one civilization, it is linguistically impossible to fered five times during 1994 on National who is willing to try to replace the welfare oppose you. And how is your opponent going Empowerment Television, and states that, state, and we are every one who is willing to to get up and say I’m against American civ- ‘‘Our goal is to get every potential partner renew American civilization. ilization? for progress to take the course and study the Now, that means there is a lot of ground in (Ex. 56, GOPAC2 2175–2176). Near the end of there to argue about details. Exactly how do the speech he said: 43 As discussed above, this speech was used by you replace the welfare state. Exactly which I believe, if you take the five pillars I’ve GOPAC to produce two training tapes. One was idea is the best idea. But if we accept every described, if you find the three areas that called ‘‘Renewing American Civilization’’ and the one coming in, we strongly change the dy- will really fit you, and are really in a posi- other was called ‘‘Leading the Majority.’’ (7/15/96 namics of exactly how this country is gov- tion to help you, that you are then going to Gaylord Tr. 31). erned and we begin to create a majority Re- 44 Mr. Gingrich at least wrote the first draft of this document and stated that it was compatible with 42 These are the same three specific goals that what he was doing at that time. It was probably a 41 These four propositions were used as the were listed in the document entitled ‘‘Renewing briefing paper for the House Republican members. ‘‘central propositions’’ or ‘‘heart’’ of the course to American Civilization Our Goal’’ that referred to (Ex. 90, GDC 00132–00152; 7/17/96 Gingrich Tr. 203–204). introduce each session in 1993 and 1994. (Ex. 54, PFF achieving a ‘‘sweeping victory in 1996’’ as the overall 45 In this section he defines the ‘‘partners for 18361, 18365–18367). goal. (Ex. 52, GDC 10647–10648). progress’’ as ‘‘citizens activists.’’ January 21, 1997 CONGRESSIONAL RECORD — HOUSE H209 principles.’’ (Ex. 90, GDC 00140).46 The docu- Minnix wrote that Mr. Gingrich ‘‘sees the a. restate our objective: Renewing Amer- ment then lists a number of areas where Re- course as vital to this—so vital that no one ican Civilization by replacing the paternalis- publicans can commit themselves to ‘‘real could convince him to teach it only one time tic welfare state change,’’ including the Contract with Amer- per week and conserve his energy.’’ (Ex. 92, —GOP majority in the House ASAP ica and a concerted effort to end the Demo- Reinhardt 0065).48 —nationwide GOP majority ASAP cratic majority in the House. (Ex. 90, GDC A number of other documents reflect a * * * * * 00144–00150). similar partisan, political use of the message and theme of Renewing American Civiliza- —objective: create ‘‘echo chamber’’ for A May 10, 1994 document which Mr. Ging- RAC rich drafted (7/18/96 Gingrich Tr. 234–235; 7/15/ tion. (Ex. 93, LIP 00602–00610, (‘‘Renewing 96 Gaylord Tr. 70) entitled ‘‘The 14 Steps[:] American Civilization: Our Duty in 1994,’’ a * * * * * Renewing American Civilization by replac- speech given to the Republican National i. develop RAC with an eye toward marketing the welfare state with an opportunity so- Committee January 21, 1994 Winter Break- ability ciety,’’ he notes the relationship between the fast); Ex. 94, GDC 11010–11012, (‘‘Whip Office * * * * * Plan for 1994’’ with the ‘‘vision’’ of ‘‘Renew course and the partisan aspects of the move- ii. promote message so that this defines ment. (Ex. 88, GDC 10729–10733). After stating American civilization by replacing the welfare state which requires the election of a many 1994 electoral contests at the congres- that the welfare state has failed and needs to sional level and below, and defines the 1996 be replaced (Ex. 88, GDC 10729), the document Republican majority and passage of our agenda’’); Ex. 95, GDC 10667–10670, (‘‘Planning national election. states that, ‘‘Replacing the welfare state will Assumptions for 1994’’); Ex. 96, Eisenach 2758– (Ex. 102, Gregorsky 0025).50 require a disciplined approach to both public 2777, (untitled); Ex. 97, PFF 2479–2489, (semi- The goal of the group was further defined policy and politics.’’ (Ex. 88, GDC 10730). ‘‘We nar on Renewing American Civilization in a memorandum written by one of Mr. must methodically focus on communicating given to the American Legislative Exchange Hoekstra’s staffers in September of 1993. (Ex. and implementing our vision of replacing the Council); Ex. 98, PFF 37179–37188, (‘‘House 103, Hoekstra 0266–0267). In that memoran- welfare state.’’ (Ex. 88, GDC 10730). In de- GOP Freshman Orientation: Leadership for dum, the staff member said the group’s goal scribing the replacement that will be needed, America’s 21st Century.’’)) had changed ‘‘from one of promoting the Re- Mr. Gingrich says that it: newing American Civilization course to one E. Renewing American Civilization House of proposing a ‘political platform’ around must be an opportunity society based on the Working Group principles of American civilization * * *. which House Republican incumbents and As stated in Mr. Gingrich’s easel notes candidates can rally.’’ (Ex. 103, Hoekstra These principles each receive two hours of from December 1992, one goal of the Renew- introduction in ‘Renewing American Civili- 0266). The group’s ‘‘underlying perspective’’ ing American Civilization movement was to was described as follows: zation’, a course taught at Reinhardt Col- ‘‘professionalize’’ the House Republicans. lege. The course is available on National (Ex. 42, HAN 02110). His intention was to use To expand our party, it is important that Empowerment Television from 1–3 P.M. the message of Renewing American Civiliza- Republicans develop, agree on and learn to every Wednesday and by videotape or audio- tion to ‘‘attract voters, resources and can- explain a positive philosophy of government. tape by calling 1–800–TO–RENEW. didates’’ and to develop a ‘‘mechanism for At the core of that philosophy is the obser- (Ex. 88, GDC 10730). This document goes on to winning seats.’’ (Ex. 42, HAN 02110). In this vation that the paternalistic welfare state describe the 200,000 ‘‘partners for progress’’ vein, a group of Republican House Members has failed, and must be replaced by alter- as being necessary for the replacement of the and others formed a working group to pro- native mechanisms within and outside of welfare state and how the Contract with mote the message of Renewing American government if social objectives are to be America will be a first step toward replacing Civilization. Starting in approximately June achieved. the welfare state with an opportunity soci- 1993, Mr. Gingrich sponsored Representative Fundamental to developing a new philoso- ety. (Ex. 88, GDC 10731). The document then Pete Hoekstra as the leader of this group and phy is the idea that traditions in American states: worked with him. (7/18/96 Gingrich Tr. 279).49 civilization have proven themselves to be powerful mechanisms for organizing human The Democrats are the party of the welfare According to a number of documents associ- behavior. There are working principles in the state. Too many years in office have led to ated with this group, a goal was to use the lessons of American history that can be ob- arrogance of power and to continuing viola- theme of renewing American civilization to served, and should be preserved and tions of the basic values of self-government. elect a Republican majority in the House. strengthened. Only by voting Republican can the welfare (Ex. 99, Hoekstra 0259; Ex. 101, Hoekstra 0264; These working principles distinguish the state be replaced and an opportunity society Ex. 102, Gregorsky 0025). According to notes Republican party and its beliefs from the be created. from a July 23, 1993 meeting, Mr. Gingrich addressed the group and made several points: Democratic party, which remains committed (Ex. 88, GDC 10731). On November 1, 1994, Mr. 1. Renewing American Civilization (RAC) to the welfare state even though these poli- Gingrich attended a meeting with Ms. is the basic theme; cies are essentially alien to the American ex- Minnix, his co-teacher at Reinhardt, to dis- 2. RAC begins with replacing the welfare perience. cuss the teaching of the course in 1995. (Ex. state, not improving it; (Ex. 103, Hoekstra 0266–0267). This group 92, Reinhardt 0063–0065). Also at that meeting 3. RAC will occur by promoting the use of began to develop a program to incorporate were Mr. Hanser, Ms. Desmond, Mr. the five pillars of American civilization; Renewing American Civilization into the Eisenach, and John McDowell. One of the 4. Use of the three key policy areas of sav- House Republican party. The program’s topics discussed at the meeting was Mr. ing the inner city, health, and economic goals included a House Republican majority, Gingrich’s desire to teach the course on a growth and jobs. Mr. Gingrich as Speaker, and Republican second day in Washington, D.C. According to (Ex. 101, Hoekstra 0264). The meeting then Committee Chairs. (Ex. 104, Hoekstra 0147– notes of the meeting prepared by Ms. Minnix, turned to a discussion of possible ways to 0151). To accomplish this goal, there were ef- Mr. Gingrich wanted to teach the course in improve these points. (Ex. 101, Hoekstra forts to have candidates, staffers and mem- D.C. in an effort: 0264). bers use Renewing American Civilization as To attract freshman congresspeople, the On July 30, 1993, another meeting of this their theme. (Ex. 104, Hoekstra 0148). One press—who will be trying to figure out the group was held. According to notes of that proposal in this area was a training program Republican agenda—and congressional staff meeting, the group restated its objectives as for staffers in the principles of Renewing looking for the basis of Republican doctrine. follows: American Civilization for use in their work ‘Take the course’ will be suggested to those in the House. (Ex. 104, Hoekstra 0148). A who wonder what a Republican government memorandum from Mr. Gingrich to various 48 The other participants at this meeting were members of his staffs 51 asked them to review is going to stand for. asked about this conversation. To the extent they a plan for this training program and give (Ex. 92, Reinhardt 0064).47 Later in the meet- recalled the discussion, they confirmed that it was him their comments. (Ex. 105, WGC 03732– ing Mr. Gingrich said that his chances of be- as related in Ms. Minnix’s memorandum. No one had a recollection that was contrary to Ms. Minnix’s 03745). coming Speaker were greater than 50 percent During his interview, Mr. Hoekstra stated and he was making plans for a transition memorandum. (6/12/96 Minnix Tr. 54–56; 6/28/96 Hanser Tr. 71–72; 6/13/96 Desmond Tr. 76–78; 7/12/96 Eisenach that Renewing American Civilization and from Democratic to Republican rule. Ms. Tr. 270–271; 7/17/96 Gingrich Tr. 211–215). the concept of replacing the welfare state 49 Mr. Gingrich provided Mr. Hoekstra with some was intended as a means of defining who Re- 46 The course was broadcast twice each week on materials to explain the movement. (See Ex. 99, publicans were; however, the group never fi- National Empowerment Television. In light of it Hoekstra 0259). Apparently, this material included nalized this as a project. (7/29/96 Hoekstra Tr. being a ten-week course, and being offered five times the May 13, 1993, three part document entitled ‘‘Re- 47–48). In talking about this group, Mr. Ging- during 1994 on NET, it ran for 50 weeks during this newing America Vision,’’ ‘‘Renewing America Strat- rich said that he wanted the Republican election year. In addition to being on NET, it was egies,’’ and ‘‘Renewing American Civilization Our also on a local cable channel in Mr. Gingrich’s dis- Goal.’’ (Ex. 52, GDC 10639–10649). In a memorandum trict in Georgia. (Ex. 91, DES 01048; 7/18/96 Gingrich from one of Mr. Hoekstra’s staffers analyzing the 50 Mr. Gingrich reviewed notes similar to these and Tr. 257–259). material, he lists the thirteen items that were to be though he did not specifically recall them, he said 47 Ms. Minnix stated that the word ‘‘Republican’’ done to further the movement. (Ex. 100, Hoekstra they were compatible with the activities of that may not have been specifically used by Mr. Ging- 0140b). They are the same thirteen items that are time. (7/18/96 Gingrich Tr. 283–284). rich, but that it was the context of his remark. (6/ listed in the ‘‘Renewing America Strategies’’ por- 51 This included his congressional office, his WHIP 12/96 Minnix Tr. 54–56). tion of the May 13, 1993 document. office, RAC, and GOPAC. H210 CONGRESSIONAL RECORD — HOUSE January 21, 1997 party to move toward Renewing American 1,000 College Republicans regarding the new nationally broadcast college course, Civilization as a theme and that he would course. 54 That letter states that: ‘‘Renewing American Civilization.’’ It prom- have asked the group to study the course, [C]onservatives today face a challenge ises to be an important event for all conserv- understand the ideas, and use those ideas in larger than stopping President Clinton. We atives, as well as many young people who are their work. (7/18/96 Gingrich Tr. 284–286). It is must ask ourselves what the future would be not yet conservatives. You and your organi- not known what became of this group. Mr. like if we were allowed to define it, and learn zation can be part of this project. Hoekstra said that the project ended without to explain that future to the American peo- (Ex. 110, PFF 19821). The letter goes on to any closure, but he does not recall how that ple in a way that captures first their imagi- say, ‘‘And remember, since you are a team happened. (7/29/96 Hoekstra Tr. 46). nation and then their votes. teacher you can use the course to explain F. Marketing of the Course In that context, I am going to devote much and discuss your views.’’ (Ex. 110, PFF 19821). As discussed above, Mr. Gingrich wrote in of the next four years, starting this Fall, to In the fall of 1993, Mr. DuGally arranged his March 29, 1993 memorandum that he teaching a course entitled ‘‘Renewing Amer- for a letter to be sent by Lamar Alexander wanted ‘‘Republican activists committed ican Civilization.’’ I am writing to you today on behalf of the Republican Satellite Ex- * * * to setting up workshops built around to ask you to enroll for the class, and to or- change Network promoting the course and the course, and to opening the party up to ganize a seminar so that your friends can en- asking its members to serve as site hosts. every citizen who wants to renew American roll as well. (Ex. 111, PFF 19795–19798). In addition, a let- civilization.’’ (Ex. 51, GDC 08892). There is ter was prepared for mailing to all chairmen evidence of efforts being made to recruit Re- * * * * * of the Christian Coalition asking them to publican and conservative organizations into Let me be clear: This is not about politics serve as site hosts. (Ex. 112, PFF 19815). In becoming sponsors for the course. These as such. But I believe the ground we will June of 1993, Mr. DuGally worked with the sponsors were known as ‘‘site hosts.’’ One of cover is essential for anyone who hopes to be Republican National Committee to have a the responsibilities of a site host was to re- involved in politics over the next several letter sent by Chairman Haley Barbour to cruit participants. (Ex. 106, PFF 8033). Jana decades to understand. American civilization RNC Members informing them of the course. Rogers was the Site Host Coordinator for the is, after all, the cultural glue that holds us (Ex. 113, RNC 0094). This letter did not solicit course when it was at Kennesaw State Col- all together. Unless we can understand it, people to be site hosts. lege. She stated that part of her work in re- renew it and extend it into the next century, Jana Rogers, the Site Host Coordinator for gard to the course involved getting Repub- we will never succeed in replacing the Wel- the course, attended the College Republican lican activists to set up workshops around fare State with an Opportunity Society. National Convention. Her weekly report on the course to bring people into the Repub- * * * * * the subject said the following: lican party. (7/3/96 Rogers Tr. 67–68). She said (Ex. 81, Mescon 0915; Meeks 0039). The letter The response to Renewing American Civili- there was an emphasis on getting Repub- ends by stating: zation at the College Republican National licans to be site hosts. (7/3/96 Rogers Tr. 69). Convention was overwelming [sic]. In addi- I have devoted my life to teaching and act- In an undated document entitled ‘‘VISION: tion to recruiting 22 sites and possibly an- ing out a set of values and principles. As a To Obtain Site Hosts for Winter 1994 Quar- other 30+ during follow-up, I was interviewed fellow Republican, I know you share those ter,’’ three ‘‘projects’’ are listed: (1) ‘‘To ob- by MTV about the class and learned more values. This class will help us all remember tain site hosts from conservative organiza- about RESN [Republican Exchange Satellite what we’re about and why it is so essential tions;’’ (2) ‘‘To secure site hosts from compa- Network] from Stephanie Fitzgerald who that we prevail. Please join me this Fall for nies;’’ (3) ‘‘To get cable companies to broad- does their site coordination. I also handed ‘‘Renewing American Civilization.’’ cast course.’’ (Ex. 107, PFF 7526). The ‘‘strat- out 400 Site Host Guides to College Repub- egies’’ listed to accomplish the ‘‘project’’ of (Ex. 81, Mescon 0914; Meeks 0040). GOPAC licans and about 600 registration flyers. obtaining site hosts from conservative orga- paid for this mailing (7/12/96 Eisenach Tr. 200; NCRNC says it will work aggressively with nizations are listed as: 7/15/96 Gaylord Tr. 82) and it was listed as a their state chairmen to help us set up sites Mailing to State and local leaders through ‘‘political’’ project on GOPAC’s description know [sic] that the convention is over. lists from National Republican Committee, of its ‘‘Major Projects Underway’’ for May 7, (Ex. 114, PFF 7613). She made no effort to Christian Coalition, American Association of 1993. (Ex. 79, JG 000001152). At the top of a contact any Democratic groups. (7/3/96 Rog- Christian Schools, U.S. Chamber of Com- copy of the letter to the College Republicans ers Tr. 78). merce, National Right to Life, Heritage is a handwritten notation to Mr. Gingrich In notes provided by Mr. Mescon from a Foundation, Empower America, National from Mr. Eisenach: ‘‘Newt, Drops to 1000+ meeting he attended on the course, he lists a Empowerment Television, Free Congress, C.R. Chapters on Wednesday. JE cc: Tim number of groups that would be targeted for etc. Mescon.’’ (Ex. 81, Mescon 0915, Meeks 0039). mailings on the course. They include mostly (Ex. 107, PFF 7526). One of the tactics listed During an interview with Mr. Cole, Mr. elected or party officials and the notation to accomplish the goal of obtaining more Eisenach was asked about this letter. ends with the words ‘‘25,000/total Republican site hosts is to: Mr. Eisenach: Use of the course by politi- mailing.’’ (Ex. 115, Mescon 0263). According Contact National College Republican office cal institutions in a political context was to Mr. Mescon, the course was being mar- to obtain names and addresses of all presi- something that occurred and was part of keted to Republicans as a target audience dents country-wide. Develop letter to ask Newt’s intent and was part of the intent of and he knew of no comparable mailing to college republicans to try to obtain the class other partisan organizations, but the intent Democrats. (6/13/96 Mescon Tr. 112–113). 55 for credit on their campus or to become a of the course and, most importantly, the op- In an August 11, 1993, memorandum from site host with a sponsor group. Also, ask eration of the course and its use of tax-ex- Mr. DuGally, a WPG employee who worked them to contact RAC office for a site host empt funds was always and explicitly done in on the course, he lists the entities where guide and additional information. a nonpartisan way. mailings for the course had been sent or were intended to be sent up to that point. They (Ex. 107, PFF 7527). In a memorandum writ- Political organizations—in this case, are as follows: ten by Nancy Desmond concerning the GOPAC—found it to their advantage to uti- course, among the areas where she suggested lize the course for a political purpose, and 1. GOPAC farm team—9,000 site host recruiting should be directed were they did so. 2. Cong/FONG/Whip offices—4,000 Mr. Cole: Were you involved in GOPAC? to ‘‘NAS members,’’ 52 ‘‘schools recognized as 3. Sent to site hosts—5,500 conservative’’ and ‘‘national headquarters of Mr. Eisenach: At this time I was involved 4. College Republicans—2,000 conservative groups.’’ (Ex. 108, PFF 37328– in GOPAC, yes. 5. American Pol Sci Assoc.—11,000 37330). In a number of the project reports Mr. Cole: And in making the decision that 6. Christian Coalition leadership—3,000 written by employees of the course in 1993, GOPAC would utilize the course? 7. The Right Guide list—3,000 there are notations about contacts with var- Mr. Eisenach: Yes. (Ex. 116, PFF 19794). In June of 1994, John ious Republicans in an effort to have them (7/12/96 Eisenach Tr. 203). Mr. DuGally McDowell wrote to Jeff Eisenach with his host a site for the course. There are no simi- worked with Economics America, Inc. to suggestions about where to market the lar notations of efforts to contact Demo- have them send a letter to the members of course during that summer. The groups he crats. (Ex. 109, Multiple Documents). 53 the groups listed in The Right Guide as part listed were the Eagle Forum Collegians; the In several instances mailings were made to of an effort to recruit them as site hosts. The National Review Institute’s Conservative Republican or conservative activists or orga- first paragraph of the letter states: Summit; Accuracy in Academia; Young Re- publicans Leadership Conference (Mr. nizations in an effort to recruit them as site Newt Gingrich asked that I tell the organi- McDowell was on their Executive Board); hosts. In May of 1993 a letter was sent over zations listed in The Right Guide about his Mr. Gingrich’s signature to approximately Young America’s Foundation, National Con- servative Student Conference; College Re- 54 Mr. Gingrich was shown this letter and he said publican National Conference; the American 52 According to Mr. Gingrich, the NAS (National that while he was not familiar with it, nothing in it Association of Scholars) is a conservative organiza- was particularly new. (7/17/96 Gingrich Tr. 87). Jeff tion. (7/18/96 Gingrich Tr. 345–346). Eisenach, GOPAC’s Executive Director and then the 55 Others who worked on the course also said it was 53 Mr. DuGally said that he made an effort to con- coordinator of the course, either wrote the letter or marketed to Republican and conservative groups. (7/ tact the Young Democrats, but they did not show edited it from a draft written by another GOPAC 3/96 Rogers Tr. 62–63; 6/13/96 Stechschulte Tr. 21–22, any interest. (7/19/96 DuGally Tr. 31–32). employee. (7/12/96 Eisenach Tr. 200–201). 57–58; 6/13/96 Desmond Tr. 66). January 21, 1997 CONGRESSIONAL RECORD — HOUSE H211 Political Science Association Annual Meet- pus!’’ (Ex. 117, PFF 3488). The faculty sponsor doing it. (6/13/96 Mescon Tr. 36, 44–45, 58–59; 6/ ing; 56 and the Christian Coalition, Road to for the student-initiated Renewing American 13/96 Fleming Tr. 23; 6/13/96 Siegel Tr. 78–79). Victory. (Ex. 117, PFF 3486–3489). At a num- Civilization course was William Muir, a KSCF did not manage the course. It con- ber of these meetings, Mr. Gingrich was former speechwriter for George Bush. (Ex. tracted with Mr. Eisenach’s Washington Pol- scheduled to be a speaker. (Ex. 117, PFF 3486– 121, JR–0000117). Aside from Mr. Sikorski and icy Group, Inc. (‘‘WPG’’) to manage and raise 3489). Mr. Muir, Mr. Eisenach did not know if the funds for the course’s development, produc- A site host listing dated August 18, 1994, RAC course at Berkeley had any additional tion and distribution. In return, WPG was identifies the approximately 100 site hosts as university review. (7/12/96 Eisenach Tr. 319). paid $8,750 per month. of that date. (Ex. 118, PFF 7493–7496). These The site host for the Renewing American The contract between WPG and KSCF ran include businesses, community groups, cable Civilization course at Harvard was Marty from June 1, 1993, through September 30, stations, and others. In addition, some col- Connors. (Ex. 122, LIP 00232). According to 1993.59 All funds raised were turned over to leges offered the course either for credit, Mr. Gingrich, Marty Connors is a conserv- KSCF and dedicated exclusively for the use partial credit or no credit. (Ex. 119, ative activist. (7/18/96 Gingrich Tr. 266). In a of the Renewing American Civilization Reinhardt 0160–0164). Based on their names, memorandum dated October 13, 1993, from course. KSCF’s only role was to act as the it was not possible to determine whether all Marty Connors to Lamar Alexander, Newt banker for the funds for the course and dis- of the site hosts fell within the goals set Gingrich, Ed Rogers, Jeff Eisenach, Paul burse them upon a request from Mr. Mescon. forth in the above-described documents. Weyrich, Mike Baroody, and Bill Harris, he (6/13/96 Fleming Tr. 24–25; 6/13/96 Mescon Tr. Some of them, however, were identifiable. wrote about a ‘‘series of ideas (that included 103; Ex. 124, KSF 001269, Mescon 0454, KSF For example, of the 28 ‘‘community groups’’ the Renewing American Civilization course) 003804, PFF 16934, KSF 001246). Mr. Mescon listed on the August 18, 1994 ‘‘Site Host List- that could have significant consequences in did not engage in a detailed review of the ing,’’ 11 are organizations whose names indi- building a new ‘Interactive’ communication bills. He merely reviewed the bills that were cate they are Republican or conservative or- system and message for the Republican provided by Mr. Eisenach or his staff and de- ganizations—Arizona Republican Party; Ath- Party and the conservative movement.’’ (Ex. termined whether the general nature of the ens Christian Coalition; Conservative PAC; 123, WGC 06781). He goes on to write that he bills fell within the parameters of the Henry County Republicans; Houston Young was working on a project to take the concept project of dissemination of the course. (6/13/ Republicans; Huron County Republican of the Republican Exchange Satellite Tele- 96 Mescon Tr. 61–63). Party; Las Rancheras Republican Women; vision, National Empowerment Television When the contract between WPG and Louisiana Republican Legislative Delega- and ‘‘Newt Gingrich’s ‘Renewing American KSCF ended, the Progress and Freedom tion; Northern Illinois Conservative Council; Civilization’ lectures and make them ‘‘more Foundation (‘‘PFF’’) assumed the role WPG Republican Party Headquarters (in Frank- interactive and user friendly.’’ (Ex. 123, WGC had with the course at the same rate of comfort Kentucky); Suffolk Republican Party. 06781). The purpose for this is to have a ‘‘far pensation. 60 PFF was also a 501(c)(3) tax ex- The list does not indicate whether the re- greater ability for ‘participatory’ party empt organization, but its status as such was maining groups—e.g., the Alabama Family building in the immediate future.’’ (Ex. 123, not used while the course was at KSC. Mr. Alliance; the Family Foundation (Ken- WGC 06781–06782). He goes on to write, Eisenach was the founder and president of tucky); Leadership North Fulton (Georgia); ‘‘Friends, I truly believe the next major po- PFF. the North Georgia Forum; Northeast Georgia litical advantage will go to the group that KSCF and KSC had little or no role in su- Forum; the River of Life Family Church figures out how to use ‘interactive’ commu- pervising the course or its dissemination. (Georgia)—are nonpartisan, Democratic, Re- Since the course was a ‘‘Special Topics’’ publican, liberal or conservative. The list nications in building a new Republican coali- 58 does not contain any organizations explicitly tion.’’ (Ex. 123, WGC 06782). course, it did not need to go through formal denominated as Democratic organizations. G. Kennesaw State College’s Role in the Course approval by a curriculum committee at KSC—it only required Mr. Mescon’s ap- Similarly, it is not clear whether there was Renewing American Civilization was proval. (6/13/96 Siegel Tr. 15–16, 30, 32, 76–77). a particular political or ideological predomi- taught at Kennesaw State College (‘‘KSC’’) While Mr. Mescon was given advance copies nance in the businesses, cable stations and in 1993. The sponsoring organization for the of Mr. Gingrich’s lectures, he had little input individuals listed.57 course was the Kennesaw State College into their content. (6/28/96 Hanser Tr. 22; 6/13/ Mr. Gingrich said that the efforts to re- Foundation (‘‘KSCF’’), a 501(c)(3) organiza- 96 Desmond Tr. 63). Mr. Mescon described his cruit colleges to hold the course had been tion dedicated to promoting projects at KSC. role more in terms of having his own 20 ‘‘very broad.’’ ‘‘I talked, for example, with The approximate expenditures for the course hours to put forth any counterpoint or objec- the dean of the government school at Har- at KSC was $300,000. This represented 29–33% tion to any of the material in Mr. Gingrich’s vard. Berkley [sic] actually was offering the of KSCF’s program expenditures for 1993. The lectures. (6/13/96 Mescon Tr. 40–41).61 course.’’ (7/18/96 Gingrich Tr. 346). The course funds raised for the course and donated to at Berkeley, however, did not go through the KSCF were tax-deductible. regular faculty review process for new KSCF had no role in raising funds for the 59 The contract between WPG and KSCF was never courses, because it was initiated by a stu- course. (6/13/96 Fleming Tr. 33–36). Mr. signed by KSCF. It was directed to Dr. Mescon, but he was not an authorized agent of KSCF. According dent. (7/12/96 Eisenach Tr. 316–317). Such Mescon, the course’s co-teacher and Dean of courses were not conducted by a professor, to Jeffery Eisenach, President of WPG, even though KSC’s Business School, wrote some letters the contract was not signed, it memorialized the but could be offered on campus for credit if with the help of Ms. Prochnow, GOPAC’s Fi- terms of the relationship between WPG and KSCF. a faculty member sponsored the course and nance Director (6/13/96 Mescon Tr. 65–68, 71– (Ex. 41, Mescon 0651–0652; 7/12/96 Eisenach Tr. 42; 11/ the Dean approved it. The student site host 74; 7/10/96 Prochnow Tr. 58–62, 66; 7/12/96 14/96 Eisenach Tr. 11). coordinator at Berkeley was named Greg Si- Eisenach Tr. 69), but most of the fundraising 60 Prior to assuming control of the course PFF was korski. (Ex. 121, JR–0000117). In the June 20, was coordinated by Mr. Eisenach, Ms. tasked with putting together the book of readings that were to be used for the course. This entailed 1994 memorandum from John McDowell to Prochnow, and Mr. Gingrich. (7/12/96 Mr. Eisenach, the following is written under Mr. Eisenach and Mr. Hanser editing the writings of Eisenach Tr. 68–71, 84, 97, 99; 7/17/96 Gingrich others. Mr. Hanser was paid $5,000 or $10,000 for this the heading ‘‘College Republican National Tr. 123, 136, 137). work, but Mr. Eisenach was not separately com- Conference:’’ ‘‘RAC Atlanta representative The course as offered at KSC was a forty- pensated for his role in this. (7/12/96 Eisenach Tr. 68). to attend and staff a vendor booth. These hour classroom lecture. Twenty hours were Mr. Eisenach was president of PFF, WPG, former 1,000 college students represent a good source taught by Mr. Gingrich and twenty hours Executive Director of GOPAC, and advisor to Mr. of future ‘Greg Sikorskis’ * * * in the sense were taught by Mr. Mescon. While officials Gingrich. Mr. Hanser was a close friend, confidant, that they can promote RAC on their cam- and at times a congressional employee of Mr. Ging- of KSC and KSCF considered the course to rich. He was also a board member and consultant to include the full forty hours of lecture (6/13/96 GOPAC and a board member and consultant to the 56 This is the only meeting where there is not a Mescon Tr. 38; 6/13/96 Fleming Tr. 23), only Progress and Freedom Foundation. (6/28/96 Hanser suggestion to have a Renewing American Civiliza- the twenty hours taught by Mr. Gingrich Tr. 6–10, 14). He had a substantial role in developing tion or PFF employee attend personally. Instead, were taped and disseminated. (6/13/96 Siegel the course. (6/28/96 Hanser Tr. 19–20). Mr. McDowell apparently only intended to find an Tr. 25–26; 6/13/96 Mescon Tr. 35; 6/13/96 Flem- 61 The December 8, 1994 letter from Mr. Gingrich to attendee who would be willing to pass out Renewing ing Tr. 23). The funds raised for the course the Committee states that, ‘‘Respected scholars American Civilization materials. such as James Q. Wilson, Everett Carl Ladd, and were primarily used for the dissemination of 57 Patti Hallstrom, an activist in the Arizona Re- Larry Sabato continue to contribute to and review publican Party, was instrumental in recruiting host Mr. Gingrich’s portion of the course to the course content.’’ (Ex. 138, p. 3). The same reference sites in Arizona, such as the Arizona Republican various site host locations. (6/13/96 Fleming to Mr. Wilson’s and Mr. Sabato’s review of the Party and various cable television stations. (Ex. 120, Tr. 22, 24; 6/13/96 Mescon Tr. 55–56). No one at course is contained in a September 3, 1993 memoran- PFF 7362). She prepared part of a training manual KSC or KSCF had any role in deciding which dum sent out over Jana Rogers’ name to site hosts. on how to recruit cable companies as host sites. (Ex. portions of the course would be taped and (Ex. 125, PFF 22963). However, in a letter from James 120, DES 00999–01007). She also provided the Renew- disseminated or even knew the reasons for Q. Wilson to Mr. Eisenach dated September 28, 1993, ing American Civilization project with information Mr. Wilson wrote: about which radio and talk shows in Arizona were Perhaps I don’t understand the purpose of the the most conservative as possible shows where Mr. 58 This memorandum was faxed to Mr. Gingrich. course, but if it is to be a course rather [than] a se- Gingrich could appear. She said the more conserv- The fax cover sheet has Mr. Gingrich’s name and the ries of sermons, this chapter won’t do. It is bland, ative shows would allow for a ‘‘more amenable dis- date ‘‘10/15/93’’ on it in his handwriting. As Mr. Ging- vague, hortatory, and lacking in substance. (empha- cussion.’’ (Ex. 120, DES 00262–00264; 6/20/96 Hallstrom rich has said, this probably indicates that he had sis in original) Tr. 41–43). seen this memorandum. (12/98/96 Gingrich Tr. 36–37). Continued H212 CONGRESSIONAL RECORD — HOUSE January 21, 1997

Shortly after PFF took over the manage- (Ex. 128, Reinhardt 0225).64 Because of this all he could from teaching the course and ment of the course, the Georgia Board of Re- concern, Reinhardt administrators agreed to had nothing new to say on the topics. (7/18/96 gents passed a resolution prohibiting any be involved only in the actual teaching of Gingrich Tr. 364). Mr. Gingrich refused to elected official from teaching at a Georgia the course on its campus and would not par- support the efforts of PFF in regard to the state educational institution. This was the ticipate in any other aspects of the project. course at that point, largely because he was culmination of a controversy that had arisen (6/12/96 Falany Tr. 51–53, 59–66; 6/12/96 Minnix disappointed with Mr. Eisenach’s financial around the course at KSC. The controversy Tr. 26–27).65 In this regard, Mr. Falany made management of the course. (7/18/96 Gingrich pertained to objections voiced by KSC fac- it clear to the faculty and staff at the college Tr. 365–366). Mr. Eisenach had indicated to ulty to the course on the grounds that it was that: Mr. Gingrich that the course was $250,000 in essentially political. (Ex. 127, KSC 3550–3551, It is important to understand that, for the debt and that PFF had used its own re- 3541, 3460, 3462). Because of the Board of Re- Winter Quarter 1994, the College will offer sources to cover this shortfall. (Ex. 130, GDC gent’s decision and the controversy, it was the course and teach it—that is the extent of 11325). Mr. Gingrich was skeptical of this decided that the course would be moved to a our commitment. At the present time, the claim, offered to have the records reviewed, private college. (7/12/96 Eisenach Tr. 47–50).62 Progress and Freedom Foundation will han- and stated that he would help raise any H. Reinhardt College’s Role in the Course dle all of the fund raising associated with the amount that the review disclosed was need- Reinhardt College was chosen as the new course; the distribution of tapes, text and ed. According to Mr. Gingrich, this offer was host for the course in part because of its tel- materials; the broadcasting; and the han- not pursued by Mr. Eisenach. (7/18/96 Ging- evision production facilities. (6/12/96 Falany dling of all information including the coordi- rich Tr. 367–368). Tr. 14). The 1994 and 1995 courses took place nation of off-campus sites. IV. ETHICS COMMITTEE APPROVAL OF COURSE at Reinhardt. While there, PFF assumed full (Ex. 129, Reinhardt 0265). 66 On May 12, 1993, Mr. Gingrich wrote the responsibility for the course. It no longer re- As was the case at KSC, Reinhardt admin- Committee asking for ‘‘guidance on the de- ceived payments to run the course. Rather, istrators considered the course to be the velopment of an intellectual approach to it paid Reinhardt to use the college’s video forty hours of lecture by both Mr. Gingrich new legislation that will be different from production facilities. All funds for the course and Ms. Minnix. (6/12/96 Falany Tr. 74–76). our normal activities.’’ (Ex. 131, p. 1). He said were raised by and expended by PFF under Again, only Mr. Gingrich’s portion of the that he wanted ‘‘to make sure that [his] ac- its tax-exempt status. The approximate ex- course was disseminated outside of tivities remain within a framework that penditures for the course were $450,000 in 1994 Reinhardt. (6/12/96 Falany Tr. 53–54; 6/12/96 meets the legitimate ethics concerns of the and in $450,000 in 1995. At PFF this rep- Minnix Tr. 48–49). Ms. Minnix had little con- House.’’ (Ex. 131, p. 1). He went on to describe resented 63% of its program expenditures for tact with Mr. Gingrich, and no input into the a course he was planning to teach in the fall its first fiscal year (which ended March 31, content of the course in 1994. In 1995 she had of 1993 at Kennesaw State College. 1994) and 35% of its program expenditures for only limited input into the content of the The course would be based on his January its second fiscal year (which ended March 31, course. (6/12/96 Minnix Tr. 20–22). Similarly, 25, 1993 Special Order entitled ‘‘Renewing 1995). 63 Mr. Gingrich and his associates provided no American Civilization.’’ (Ex. 131, p. 2). It Reinhardt had a curriculum committee re- input as to Ms. Minnix’s portion of the would be ‘‘completely non-partisan’’ and, he view the content of the course before decid- course. (6/12/96 Minnix Tr. 31–32). hoped, would include ideas from many peo- ing to have it presented on its campus. (6/12/ While Mr. Falany did not know the purpose ple, including politicians from both parties 96 Falany Tr. 15–16). The controversy over for disseminating the course, and made no and academics. (Ex. 131, p. 2). He stated that the course at KSC, however, affected the inquiries in that regard (6/12/96 Falany Tr. he believed the development of ideas in the level of involvement Reinhardt was willing 48–50; 54–66; 84–85), Ms. Minnix did have some course was a ‘‘crucial part’’ of his job as a to assume in regard to the course. (6/12/96 knowledge in this area. Based on her con- legislator. (Ex. 131, p. 3). He ended his letter Falany Tr. 44–48, 51–53, 59–66; 6/12/96 Minnix tacts with the people associated with the with a request to the Committee to meet to Tr. 26–27). In this regard, Reinhardt’s admin- course, she believed Mr. Gingrich had a glob- discuss the project if the Committee had any istration saw a distinction between the al vision of getting American civilization concerns. (Ex. 131, p. 3). ‘‘course’’ and a broader political ‘‘project.’’ back ‘‘on track’’ and that he wanted to shape In June 1993, counsel for the Committee, As stated in a memorandum from Mr. the public perception through the course. (6/ David McCarthy, met with Mr. Gingrich, two Falany, Reinhardt’s President, to Mr. 12/96 Minnix Tr. 59–60). She felt there was an people from his staff (Annette Thompson Eisenach dated November 11, 1993: ‘‘evangelical side’’ to the course, which she Meeks and Linda Nave) and Mr. Eisenach to First, there seems to be a ‘‘project’’, which described as an effort to have people get in- discuss the course. (7/18/96 McCarthy Tr. 7; 7/ is Renewing American Civilization, of which volved in politics, run for office, and try to 10/96 Meeks Tr. 13). Mr. McCarthy’s initial the ‘‘course’’ is a part. This distinction is influence legislation. (6/12/96 Minnix Tr. 70– concern was whether Mr. Gingrich could blurred at times in the Project Overview. 71). Ms. Minnix felt uncomfortable with this qualify for a teaching waiver under the When you refer to the ‘‘project’’ it seems to ‘‘evangelical side.’’ (6/12/96 Minnix Tr. 70). House ethics rules. (7/18/96 McCarthy Tr. 16). imply a broader political objective (a non- Furthermore, as reflected in her memoran- When he learned Mr. Gingrich was teaching welfare state). This is not to say that this dum of the November 1, 1994 meeting with without compensation, the issue of a teach- political objective should be perceived as Mr. Gingrich and others, she was aware that ing waiver became, in his opinion, irrele- being negative, but it should, in fact, be seen the course was to be used to let people know vant. (7/18/96 McCarthy Tr. 16). Mr. McCarthy as broader than and distinct from the sim- what Mr. Gingrich’s political agenda would then asked questions regarding whether any pler objective of the ‘‘course.’’ be as Speaker. (6/12/96 Minnix Tr. 53–59; Ex. official resources would be used to support 92, Reinhardt 0064). As with KSC, one of the the course and whether Mr. Gingrich planned *** reasons Reinhardt administrators wanted to to use any unofficial resources to subsidize I could go on, but I dare not for fear I have mis- have the course taught on its campus was to his official business. Mr. McCarthy did not understood what this enterprise is all about. I am a raise profile of the school. (6/12/96 Falany Tr. see any problems pertaining to these issues. professor, and so I bring the perspectives (and limi- 112–113). Mr. Gingrich indicated that he might repeat tations) of a professor to bear on this matter. If this is not to be a course but instead a sermon, then you I. End of Renewing American Civilization the lectures from the course as Special Or- should get a preacher to comment on it. Course ders on the floor of the House. Mr. McCarthy (Ex. 126, PFF 5994–5995). Also, in a book co-written Although Mr. Gingrich had intended to suggested that Mr. Gingrich consult with the by Larry Sabato, the following statements are teach the course for four years, through the House Parliamentarian on that subject. (Ex. made: 1996 Winter quarter, he stopped teaching it 132, p. 1). In late 1992 and early 1993, Gingrich began conceiv- after the 1995 Winter quarter. According to One issue raised with Mr. McCarthy was ing a new way to advance those political goals—a most of the witnesses interviewed on this whether the House Ethics Rules permitted nationally broadcast college course, ambitiously ti- Mr. Gingrich to raise funds for a tax-exempt tled ‘‘Renewing American Civilization,’’ in which he subject, the reason for this was that he had would inculcate students with his Republican val- run out of time in light of the fact that he organization. Mr. McCarthy’s conclusion was ues. (p. 94). had become Speaker. (7/12/96 Eisenach Tr. that since KSCF was a qualified tax-exempt *** 280; 6/28/96 Hanser Tr. 52–53). On the other organization, Mr. Gingrich could raise funds Nominally an educational enterprise, internal hand, Mr. Gingrich says that he had learned for KSCF as long as he complied with the course planning documents revealed the true nature relevant House rules on the subject. (7/18/96 of the course as a partisan organizing tool. (p. 95). McCarthy Tr. 17). Mr. Eisenach raised the Sabato, L. and Simpson, G., ‘‘Dirty Little Secrets: 64 Reinhardt saw the ‘‘project’’ as essentially deal- issue concerning the propriety of his being The Persistence of Corruption in American Poli- ing with the dissemination of the course outside of tics,’’ Times Books (1996). Reinhardt’s campus. (6/12/96 Falany Tr. 48–50, 54–66, involved in fundraising for the course in 62 Near the end of his interview, Mr. Mescon ex- 84–85). light of the fact that he also worked for pressed embarrassment in regard to his participa- 65 All of the funds for the course while at GOPAC. According to Mr. McCarthy, his re- tion in the course. He became involved in the course Reinhardt were raised by PFF under its tax exempt sponse to the issue was as follows: in order to raise the profile of the school, but now status. [T]o my knowledge of tax law, the issue of believes that his efforts have had severe repercus- 66 Reinhardt College did rent its television produc- sions. (6/13/96 Mescon Tr. 136–137). tion facilities to PFF for its use in the dissemina- whether the contributions in support of the 63 As of November 1996, PFF’s tax return (Form tion in the course, and was paid separately for this course would keep their tax-deductible sta- 990) for its third fiscal year (which ended March 31, in the amount of $40,000. All production beyond that tus would turn not on who did the fundrais- 1996) had not been filed. was handled by PFF. (6/12/96 Falany Tr. 27–28). ing but on how the funds were spent, and January 21, 1997 CONGRESSIONAL RECORD — HOUSE H213 that the educational nature of the course On August 3, 1993, the Committee, in a let- an impermissible private benefit on Repub- spoke for itself. I told him that I was aware ter signed by Mr. McDermott and Mr. lican candidates and entities. of no law or IRS regulation that would pre- Grandy, responded to Mr. Gingrich’s letters Prior to his involvement in both AOW/ vent Eisenach from raising charitable con- of May 12, 1993 and July 21, 1993, regarding ACTV and the Renewing American Civiliza- tributions, even at the same time that he his request to the teach the course and his tion course, Mr. Gingrich was aware of the was raising political contributions. In any request to present the course materials in tax controversy pertaining to the American event, I advised him, I expected the Commit- Special Orders. (Ex. 134, p. 1). The Commit- Campaign Academy (‘‘ACA’’ or ‘‘Academy’’). tee to stick by its advisory opinion in the tee’s letter also notes that Mr. Gingrich had In his interview with Mr. Cole he said, ‘‘I was Ethics Manual and not get into second- asked if he could help KSC raise funds for aware of [ACA] because * * * the staff direc- guessing the IRS on its determinations of the course. The Committee’s guidance was as tor of the [ACA] had been totally involved. I tax-exempt status. follows: was aware of his briefings and what was in- (Ex. 132, p. 2). Mr. McCarthy said in an inter- 1. Since Mr. Gingrich was teaching the volved. * * * I was aware of them at the time view that his statement regarding the Com- course without compensation, he did not and I was aware of them during the court mittee’s ‘‘stick[ing]’’ by its advisory opinion need the Committee’s approval to do so; case.’’ (7/18/96 Gingrich Tr. 375–376). ‘‘I lived pertained only to whether Mr. Gingrich 2. It was within Mr. Gingrich’s ‘‘official through that case. I mean, I was very well could raise funds for the course. (7/18/96 prerogative’’ to present the course materials aware of what the [American Campaign McCarthy Tr. 19). The discussion did not rein Special Orders; Academy] did and what the ruling was.’’ (11/ late to any other 501(c)(3) issues. (7/18/96 3. Mr. Gingrich was permitted to raise 13/96 Gingrich Tr. 61). 69 McCarthy Tr. 19). While Mr. McCarthy was funds for the course on behalf of charitable Responding to the question of whether he aware that the course lectures would be organizations, ‘‘provided that no official re- had any involvement with the Academy, Mr. taped and broadcast (7/18/96 McCarthy Tr. 16), sources are used, no official endorsement is Gingrich said: ‘‘I think I actually taught neither Mr. Gingrich nor his staff asked for implied, and no direct personal benefit re- that [sic], but that’s the only direct involve- Mr. McCarthy’s advice regarding what ac- sults.’’ ment I had.’’ (12/9/96 Gingrich Tr. 58). In an tivities in that regard were permissible undated document on GOPAC stationery en- under 501(c)(3) and Mr. McCarthy did not dis- (Ex. 134, p. 1). The Committee, however, ad- titled ‘‘Offices of Congressman Newt Ging- cuss such issues. (7/18/96 McCarthy Tr. 19; 7/ vised Mr. Gingrich to consult with the FEC rich,’’ three offices are listed: GOPAC, 18/96 Gingrich Tr. 375–376; 7/10/96 Meeks Tr. regarding whether election laws and regula- FONG, and the American Campaign Acad- 15). Mr. McCarthy did not recall any discus- tions might pertain to his fundraising ef- emy. (Ex. 143, Kohler 285). Mr. Gingrich did sion regarding a Renewing American Civili- forts. The Committee’s letter to Mr. Ging- not believe that he had an office at the Acad- zation movement. (7/18/96 McCarthy Tr. 16). rich did not discuss any matters relating to emy, but thought it possible that his press Mr. McCarthy did not recall any discussion the implications of 501(c)(3) on the teaching secretary, Rich Galen, had an office there. of GOPAC’s use of the Renewing American or dissemination of the course or GOPAC’s (12/9/96 Gingrich Tr. 58–59). Civilization message. (7/18/96 McCarthy Tr. relationship to the course. (Ex. 134, p. 1). In speaking about the Renewing American 12–13). The discussion pertaining to Mr. V. LEGAL ADVICE SOUGHT AND RECEIVED Civilization course, Mr. Gingrich told the Eisenach and GOPAC was brief. (Ex. 132, p. New York Times that he acted very aggres- 2). As described in greater detail in the Ap- sively in regard to 501(c)(3) law: During the meeting with Mr. McCarthy, pendix, section 501(c)(3) requires, among ‘‘Whoa,’’ [Mr. Gingrich] said, when asked there were no questions posed about 501(c)(3) other things, that an organization be orga- after class one recent Saturday if the course or what could be done in regard to the nized and operated exclusively for one or nears the edge of what the law allows. ‘‘Goes course, aside from the fund-raising issue more exempt purposes. Treas. Reg. right up to the edge. What’s the beef? under 501(c)(3). (7/18/96 Gingrich Tr. 375–376). 1.501(c)(3)–1(d)(1)(ii) provides that an organi- Doesn’t go over the edge, doesn’t break any Mr. Gingrich did not believe that it was nec- zation does not meet this requirement: Un- law, isn’t wrong. It’s aggressive, it’s entre- essary to explain to Mr. McCarthy his in- less it serves a public rather than a private preneurial, it’s risk taking.’’ tended use for the course. purpose. It is necessary for an organization New York Times, section A, page 12, column 1 Mr. Cole: We are focusing, however, on to establish that it is not organized or oper- (Feb. 20, 1995). (Ex. 144). In addition, Mr. your intended use of the course. And your in- ated for the benefit of private interests such Gingrich has had involvement with a number tended use of the course here was in a par- as designated individuals, the creator or his of tax-exempt organizations. As Mr. Ging- tisan political fashion; is that correct? family, or persons controlled, directly or in- rich’s tax lawyer stated, politics and 501(c)(3) Mr. Gingrich: My intended use was, but I directly, by such private interests. organizations are an ‘‘explosive mix.’’ (12/12/ am not sure I had any obligation to explain The purpose of the ‘‘private benefit’’ prohi- 96 Holden Tr. 132–134, 146). that to the [C]ommittee. As long as the bition is to ensure that the public subsidies Despite all of this, he did not seek specific course itself was nonpartisan and the course flowing from section 501(c)(3) status, includ- legal advice concerning the application of itself was legal and the course itself met ing income tax exemption and the ability to section 501(c)(3) with respect to AOW/ACTV both accreditation and tax status, I don’t be- receive tax-deductible charitable contribu- or the Renewing American Civilization lieve I had an obligation to tell the Ethics tions, are reserved for organizations that are course. Furthermore, he did not know if any Committee what my political strategies formed to serve public, not private interests. one did so on his behalf. With respect to the were. I think that’s a retrospective com- Treas. Reg. 1.501(c)(3)–1(c)(1) defines the ap- course, the following exchange occurred: ment. And maybe I am wrong. plication of the private benefit prohibition Mr. Cole: Were you involved in seeking any I don’t think—the questions were: Was it in the context of the operational test: An or- legal advice concerning the operation of the legal? Did I use official funds? Had we gotten ganization will be regarded as ‘‘operated ex- course under 501(c)(3)? approval? Was GOPAC’s involvement legiti- clusively’’ for one or more exempt purposes Mr. Gingrich: No. We sought legal advice mate and legal? Was it an accredited course? only if it engages primarily in activities about ethics. Was I getting paid for it? which accomplish one or more of such ex- Mr. Cole: Did you seek any legal advice I mean, none of those questions require empt purposes specified in section 501(c)(3). concerning the 501(c)(3) issues involving the that I explain a grand strategy, which would An organization will not be so regarded if course? have seemed crazy in ’94. If I had wandered more than an insubstantial part of its activi- Mr. Gingrich: No. I did not. around and said to people, hi, we are going to ties is not in furtherance of an exempt pur- Mr. Cole: Do you know if anybody did on win control, reshape things, end the welfare pose. your behalf? entitlement, form a grand alliance with Bill Although cases on the private benefit doc- Mr. Gingrich: No. Clinton, who is also going to join us in re- 68 trine date back to 1945, a more recent, sig- (7/17/96 Gingrich Tr. 140). With respect to newing America, how would I have written nificant case on the subject is the 1989 Tax AOW/ACTV, Mr. Gingrich said that he did that? Court opinion in American Campaign Academy not get any legal advice regarding the (11/13/96 Gingrich Tr. 89–90). On July 21, 1993, v. Commissioner, 92 T.C. 1053 (1989). That case projects. (12/9/96 Gingrich Tr. 54). He said Mr. Gingrich wrote the Committee to pro- discusses the doctrine in terms of conferring that he assumed Mr. Callaway sought such vide additional information about the course legal advice. (12/9/96 Gingrich Tr. 54). he planned to teach at KSC. The letter did Kennesaw State College, was providing him with a Mr. Gingrich said two attorneys involved not discuss how the course was to be funded ‘‘Content Coordinator to coordinate the videotape with GOPAC at the time, Jim Tilton and or that there was a plan to distribute the inserts and other materials that will be used in the Dan Swillinger, monitored all GOPAC activi- course nationally via satellite, videotape, presentations.’’ (Ex. 133, pp. 1–2). He also wrote that ties and would have told him if the projects audiotape and cable, or that GOPAC’s main none of his staff would perform tasks associated violated the law. (12/9/96 Gingrich Tr. 54–56). theme was to be ‘‘Renewing American Civili- with the course and that the course material would zation.’’ The letter also did not discuss not be based on previous work of his staff. (Ex. 133, 69 GOPAC’s role in the course. (Ex. 133).67 p. 1). Finally, he wrote that much of the material His adviser, Mr. Gaylord, was a director of the from the course would be presented in Special Or- Academy. (12/9/96 Gingrich Tr. 57; American Campaign ders, although the presentations would have some Academy v. Commissioner, 92 T.C. 1053, 1056 (1989)). As 67 The information Mr. Gingrich provided to the differences. (Ex. 133, p. 2). referred to above, Mr. Gaylord was one of the ‘‘five Committee was that the Kennesaw State College 68 Better Business Bureau of Washington, D.C. v. key people’’ Mr. Gingrich relied on most. (Ex. 3, Foundation, a 501(c)(3) organization affiliated with United States, 326 U.S. 279 (1945). GDC 11551, GDC 11553). H214 CONGRESSIONAL RECORD — HOUSE January 21, 1997 Mr. Callaway said neither Mr. Swillinger nor Shouldn’t that have been presented to [Third,] I think everybody who has actu- Mr. Tilton was ever told that one of the pur- somebody who is a tax attorney, and said, ally seen my course will tell you * * * I was poses of ACTV was to recruit people to the now, am I going to have any problems here? very careful. Ironically, Max Cleland, who Republican party. (12/7/96 Callaway Tr. 41, Is this okay under the 501(c)(3) laws? won the Senate seat, is the only current poli- 47). 70 (12/10/96 Gingrich Tr. 32–33). In response to tician used in the course other than John Mr. Gingrich explained to the Subcommit- Lewis. tee in November 1996 that, in his opinion, Mr. Schiff’s question, Mr. Gingrich explained why he thought there was no need to seek And so the course was clearly not Repub- there were no ‘‘parallels’’ between the Amer- lican. It was clearly not designed to send a ican Campaign Academy and the Renewing legal advice because the facts of American Campaign Academy and Renewing American partisan message. No one I know of who has American Civilization course. (11/13/96 Ging- actually seen the course thinks that it was a rich Tr. 61). After this explanation, Mr. Civilization were inapposite. (12/10/96 Ging- rich Tr. 34–36). partisan vehicle. It has no relationship to Schiff and Mr. Gingrich had the following ex- the American Campaign Academy. change: Mr. Gingrich: The facts are the key. I was teaching at an accredited university; [ACA] (12/10/96 Gingrich Tr. 37–39). Officials at KSC Mr. Schiff: Did you go to a tax expert and and Reinhardt did not seek legal advice per- say, here is what I have in mind; do you was an institution being set up as basically a politically training center. My course was taining to the application of 501(c)(3) to the agree that there are no parallels and that course. The only such advice ever sought was there’s no problem with the American Cam- open to everybody; [ACA] was a Republican course. My course says nothing about cam- by KSCF in connection with the agreement paign Academy case in terms of what I am to transfer the course to PFF in November doing here? I am just asking if you did that? paigns; [ACA] was a course specifically about campaigns. 1993 and in asking its outside lawyers to Mr. Gingrich: The answer is, no. I just render a legal opinion concerning the course want to assert the reason I wouldn’t have There are four standards * * * none of which apply to Renewing American Civiliza- in 1995. Citing the attorney/client privilege, done it is as a college teacher who had KSCF officials have refused to disclose to taught on a college campus I didn’t think tion. * * * Just at an objective level you are going to put these [ACA and RAC] up on a the Subcommittee the advice KSCF received the two cases—I also didn’t ask them if it rein both instances. (6/13/96 Mescon Tr. 60; 6/13/ lated to spouse abuse. I mean, I didn’t think board and say that is not a relevant question. 96 Siegel Tr. 36–37; 6/12/96 Falany Tr. 50–51; 6/ the two cases had any relationship. 13/96 Fleming Tr. 46–48). (11/13/96 Gingrich Tr. 61–62). During his testi- (12/10/96 Gingrich Tr. 35). After Mr. Gingrich’s In his July 1996 interview, Mr. Eisenach mony before the Subcommittee in December, explanation, Mr. Schiff said the following: said that he did not seek legal advice per- Mr. Schiff raised similar questions with Mr. Mr. Schiff: I understand how you distin- taining to the application of 501(c)(3) to the Gingrich. guish the facts between the American Cam- course. (7/12/96 Eisenach Tr. 236). In his No- Mr. Schiff: What strikes me is without try- paign Academy case and your course. There vember 1996 interview, Mr. Eisenach said ing to resolve that at this minute, the possi- are those that would argue that the legal that he had worked with many attorneys bility is out there, the possibility that a vio- holding applies equally to both. In other who had experience in 501(c)(3) law. (11/14/96 lation of 501(c)(3) is very much in evidence to words, that which brings you to the legal Eisenach Tr. 84–88). But he was not able to me. And it seems to me that is true all the conclusion of not complying with the point to any specific consultation with a tax way along. You did have the American Cam- 501(c)(3) laws, for various reasons that I’d attorney where the entire relationship be- paign Academy case of 1989, which you have rather not get into now—discuss with Mr. tween the course, the movement, and politi- indicated you were aware of. It’s true the Holden, perhaps—that those are in common cal goals were fully set forth and found to be within the bounds of 501(c)(3). (11/14/96 facts were different, but nevertheless some- even if certain peripheral facts are different. Eisenach Tr. 88–91). thing sprung up that told somebody there What I’m getting at is, excuse me for using was a 501(c)(3) problem here if you get too your own words, but you’re not a lawyer. VI. SUMMARY OF THE REPORT OF THE close to political entities. Knowing that there was an attempt to set up SUBCOMMITTEE’S EXPERT What I am getting at is this, and again to a 501(c)(3) training and education academy A. Introduction answer any way you wish, wasn’t it, if not which floundered in the courts because of Because of differences of opinion among intentional, wasn’t it reckless to proceed something, wouldn’t that motivate particu- the Members of the Subcommittee regarding with your involvement as a Member of the larly a Member of the House to want to say, the tax issues raised in the Preliminary In- House of Representatives into at least a cou- before you start into another one, maybe I quiry, the Subcommittee determined that it ple of—involvements with the 501(c)(3) orga- ought to sit down with somebody who is a would be helpful to obtain the views of a rec- nizations, whether it was Progress & Free- tax expert and tell them the whole plan here, ognized expert in tax-exempt organizations dom or Kennesaw State or Abraham Lincoln not just course content, but where the course law, particularly with respect to the ‘‘pri- Opportunity Foundation, without getting ad- fits into all the strategies here and say, now, vate benefit’’ prohibition. The expert, Celia vice from a tax attorney to whom you told do you think I’ve got a problem? And I don’t Roady, reviewed Mr. Gingrich’s activities on everything? You said, this is the whole plan, think you did that. If you did, tell me you behalf of ALOF and the activities of others this is the whole movement of Renewing did. * * * on behalf of ALOF with Mr. Gingrich’s American Civilization. * * * (12/10/96 Gingrich Tr. 36–37). Mr. Gingrich’s knowledge and approval. She also reviewed response was three-fold: Mr. Gingrich’s activities on behalf of KSCF, PFF, and Reinhardt College in regard to the 70 A document dated November 13, 1990, entitled Mr. Gingrich: [First,] [i]f you read the Campaign For A Successful America, was reviewed by speech I gave in January of 1993, which was Renewing American Civilization course and the Subcommittee. (Ex. 145, Eisenach 3086–3142). In a the core document from which everything the activities of others on behalf of those or- section drafted by Gordon Strauss, an attorney in else comes, I talk very specifically about a ganizations with Mr. Gingrich’s knowledge Ohio, for a consulting group called the Eddie Mahe movement in the speech. I talk very simply and approval. The purpose of this review was Company, the following is written: about 2 million, not 200,000, volunteers, citi- to determine whether those activities vio- [S]ome educational organizations, tax exempt lated the status of any of these organizations under Section 501(c)(3) of the Internal Revenue Code, zen activists, in the speech. I describe it as a cultural movement that has a political com- under section 501(c)(3) of the Internal Reve- have engaged in activities which affect the outcome nue Code. of elections, though that is theoretically not sup- ponent in the speech. posed to occur. That’s the core document I gave to every- B. Qualifications of the Subcommittee’s Expert (Ex. 145, Eisenach 3132). The document also con- one when I would say, here’s what I want to Ms. Roady is a partner in the Washington, tains the following: try to teach about. Here is what I want to D.C. office of the law firm Morgan, Lewis & A very controversial program is being undertaken try to do. That document clearly says there Bockius LLP where she specializes full-time by a (c)(3), indicating that it may have involvement in the electorial process, notwithstanding the ex- is a movement, and this course is designed to in the representation of tax-exempt organi- press prohibition on it. At this time, a (c)(3) is not outline the principles from which the move- zations. Her practice involves the provision recommended because it would have to be truly ment comes. And so, if everybody who was of advice on all aspects of section 501(c)(3). independent of the (c)(4) and its PAC. engaged in looking at the course, whether it Ms. Roady has written many articles on tax- (Ex. 145, Eisenach 3134). was Kennesaw Foundation’s lawyers or it exempt organization issues for publication in There was substantial inquiry about this docu- was Progress & Freedom’s lawyers or it was legal periodicals such as the ‘‘Journal of ment during the Preliminary Inquiry. No evidence Reinhardt’s lawyers, and the president of the Taxation of Exempt Organizations’’ and the was uncovered to indicate that Mr. Gingrich had any exposure to this document. (12/5/96 Mahe Tr. 34–35; 12/ college in both cases, everybody had a ‘‘Exempt Organization Tax Review.’’ She is a 9/96 Gingrich Tr. 52–54; 12/5/96 Eisenach Tr. 59–61). Mr. chance to read the core document which has frequent speaker on exempt organizations Strauss was interviewed and stated that the docu- movement very specifically in it. topics, regularly lecturing at national tax ment had nothing to do with AOW/ACTV, the Second, the reason I didn’t seek unique conferences such as the ALI/ABA conference 501(c)(3) organization referred to in the document legal counsel is as a Ph.D. teaching in a on charitable organizations and the George- was merely one he had heard of in an IRS Revenue State college in an accredited setting, it town University Law Center conference on Ruling, and that he never gave Mr. Gingrich any ad- never occurred—I mean, if I had thought— tax-exempt organizations, as well as at local vice on the law pertaining section 501(c)(3) in regard to AOW/ACTV, the Renewing American Civilization this is another proof of my ignorance or tax conferences and seminars on tax-exempt course, or any other projects. The only legal advice proof of my innocence, I’ll let you decide—it organization issues. In 1996, she was named he gave Mr. Gingrich pertained to need for care in never occurred to me that this is an issue. the Program Chair of the Georgetown Uni- the use of official resources for travel expenses. *** versity Law Center’s annual conference on January 21, 1997 CONGRESSIONAL RECORD — HOUSE H215 tax-exempt organizations. (11/15/96 Roady Tr. With respect to the last two issues, Ms. continuation of GOPAC’s AOW project, and 2–7). Roady did not conclude that the activities had the same partisan, political goals as Ms. Roady is the immediate past Chair of with respect to the television programs or AOW. These goals included, among other the Exempt Organizations Committee of the the course resulted in impermissible private things, reaching ‘‘new groups of voters not Section of Taxation of the American Bar As- inurement or violated the lobbying limita- traditionally associated with [the Repub- sociation, having served as Chair from 1993 tions applicable to section 501(c)(3) organiza- lican] party;’’ ‘‘mobiliz[ing] thousands of to 1995. She is currently serving a three-year tions. Similarly, with respect to the first people across the nation at the grass roots term as a member of the Council of the ABA issue, Ms. Roady concluded that the tele- level [to become] dedicated GOPAC activ- Section of Taxation, and is the Council Di- vision programs and the course met the re- ists;’’ and ‘‘making great strides in continu- rector for the Section’s Exempt Organiza- quirements of the methodology test de- ing to recruit activists all across America to tions Committee. She also serves on the scribed in Rev. Proc. 86–43 and were ‘‘edu- become involved with the Republican party.’’ Legal Section Council of the American Soci- cational’’ within the meaning of section The persons who conducted the ACTV ety of Association Executives, and is a Fel- 501(c)(3) even though they advocated particu- project on behalf of ALOF were GOPAC offi- low of the American College of Tax Counsel. lar viewpoints and positions. Accordingly, cers, employees, or consultants. In essence, (11/15/96 Roady Tr. 2–7). Ms. Roady concluded that the activities with the transfer of the AOW project from GOPAC Ms. Roady served a three-year term as the respect to the television programs and the to ALOF was more in name than substance, Co-Chair of the Exempt Organizations Com- course served an educational purpose and since the same activities were conducted by mittee of the District of Columbia Bar’s Tax would be appropriate activities for section the same persons in the same manner with Section from 1989 to 1991. She also served on 501(c)(3) organizations, as long as there was the same goals. Through the use of ALOF, the Steering Committee of the D.C. Bar’s no violation of the private benefit prohibi- however, these persons were able to raise Tax Section from 1989 to 1995, and as Co- tion or the campaign intervention prohibi- tax-deductible charitable contributions to Chair of the Steering Committee from 1991 to tion. She found substantial evidence, how- support the ACTV project, funding that 1993. (11/15/96 Roady Tr. 2–7). ever, of violations of both such prohibitions would not have been available to GOPAC on Each of the attorneys interviewed for the and therefore concluded that Mr. Gingrich’s a tax-deductible basis. position of expert for the Subcommittee activities on behalf of the organizations and Taken together, according to Ms. Roady, highly recommended Ms. Roady. She was de- the activities of others on behalf of the orga- the facts as described above show that in ad- scribed as being impartial and one of the nizations with Mr. Gingrich’s knowledge and dition to its educational purpose, another leading people in the field of exempt organi- approval violated the organizations’ status purpose of the ACTV project was to benefit zations law. (11/15/96 Roady Tr. 2).71 under section 501(c)(3). (11/15/96 Roady Tr. 7). GOPAC and, through it, Republican entities Ms. Roady is a 1973 magna cum laude grad- The basis for her conclusions may be summa- and candidates, by continuing to conduct the uate of Duke University. She received her rized briefly as follows: AOW project under a new name and through law degree from Duke Law School, with dis- a section 501(c)(3) organization that could 1. THE AMERICAN CITIZENS TELEVISION tinction, in 1976. She received a masters de- raise funding for the project through tax-de- PROGRAM OF ALOF 73 gree in taxation from the Georgetown Uni- ductible charitable contributions. This bene- versity Law Center in 1979. a. Private benefit prohibition fit was not merely incidental. To the con- C. Summary of the Expert’s Conclusions Under section 501(c)(3) and the other legal trary, the evidence supports a finding that authorities discussed above, the analysis of Ms. Roady considered the following issues one of the main purposes for transferring the whether there is a violation of the private in her review: project to ALOF was to make possible the benefit prohibition does not depend on 1. whether the content of the television continuation of activities that substantially whether the activities at issue—the tele- programs broadcast by ALOF or the Renew- benefited GOPAC and Republican entities vision programs—served an exempt purpose. ing American Civilization course were ‘‘edu- and candidates. Even though the television programs met For these reasons, Ms. Roady concluded cational’’ within the meaning of section the definition of ‘‘educational,’’ there is a that one of the purposes of Mr. Gingrich’s ac- 501(c)(3); violation of section 501(c)(3) if another pur- tivities on behalf of ALOF and the activities 2. whether one of the purposes of the ac- pose of the activities was to provide more of others on behalf of ALOF with Mr. Ging- tivities with respect to the television pro- than an insubstantial or incidental benefit rich’s knowledge and approval was to provide grams or the course was to provide more to GOPAC or any other private party. As the more than an incidental benefit to GOPAC than an incidental benefit to GOPAC, Mr. Supreme Court stated in Better Business Bu- and Republican entities and candidates in Gingrich, or other Republican entities and reau v. United States, 326 U.S. 276, 283 (1945), violation of the private benefit prohibition. candidates in violation of the private benefit ‘‘the presence of a single noneducational pur- prohibition in section 501(c)(3); b. Campaign intervention prohibition pose, if substantial in nature, will destroy 3. whether the activities with respect to As with respect to the private benefit pro- the exemption regardless of the number or the television programs or the course prohibition, the legal authorities discussed importance of truly educational purposes.’’ vided support to GOPAC or a candidate for above make it clear, according to Ms. Roady, In making such a determination, the Tax public office in violation of the campaign that the analysis of whether there is a viola- Court has held that the proper focus is ‘‘the intervention prohibition in section 501(c)(3); tion of the campaign intervention prohibi- purpose towards which an organization’s ac- 4. whether the activities with respect to tion does not turn on whether the television tivities are directed and not the nature of the television programs or the course vio- programs had a legitimate educational pur- the activities themselves.’’ American Cam- lated the private inurement prohibition in pose. In the IRS CPE Manual, the IRS ex- paign Academy, 92 T.C. at 1078–79. The deter- section 501(c)(3); and plained that ‘‘activities that meet the [edu- mination as to whether there is a violation 5. whether the activities with respect to cational] methodology test * * * may never- of the private benefit prohibition cannot, the television programs or the course vio- theless constitute participation or interven- therefore, be made solely by reference to the lated the lobbying limitations applicable to tion in a political campaign.’’ IRS CPE Man- content of the television programs or wheth- section 501(c)(3) organizations. ual at 415. See also New York Bar, 858 F.2d er the activities in relation to the programs 876 (2d Cir. 1988); Rev. Proc. 86–43. Nor does 72 (11/15/96 Roady Tr. 7). served an educational purpose. Rather, the the analysis turn on the fact that the tele- determination requires a factual analysis to vision programs did not expressly urge view- 71 The one known public comment on the matter determine whether the organization’s activi- ers to ‘‘support GOPAC,’’ ‘‘vote Republican,’’ by Ms. Roady is found in the following paragraph ties also had another, nonexempt purpose to or ‘‘vote for Mr. Gingrich.’’ The IRS does not from a New York Times article: ‘‘Clearly, it’s an ag- provide more than an incidental benefit to a follow the express advocacy standard applied gressive position,’’ said Celia Roady, a Washington private party such as GOPAC or Republican lawyer and chairwoman of the American Bar Asso- by the FEC, and it is not necessary to advo- ciation’s committee on tax-exempt organizations, entities and candidates. In this case, there is cate the election or defeat of a clearly iden- who stressed that she was not talking for the asso- substantial evidence that these parties were tified candidate to violate the campaign ciation. ‘‘Whether it’s too aggressive and crosses the intended to and did receive more than an in- intervention prohibition. IRS CPE Manual at line, I don’t know. Clearly, it’s more aggressive than cidental benefit from the activities con- 413. The determination as to whether there is many exempt organizations would go forward with.’’ ducted by ALOF. a violation of the campaign intervention New York Times, section A, page 12 (Feb. 20, 1995). In summary, according to Ms. Roady, the prohibition requires an overall ‘‘facts and (Ex. 144). In the same article, Mr. Gingrich is quoted evidence shows that the ACTV project was a as saying that he acted aggressively in regard to circumstances’’ analysis that cannot be 501(c)(3) law: ‘‘Whoa,’’ [Mr. Gingrich] said, when made solely by reference to the content of asked after class one recent Saturday if the course 73 After Ms. Roady met with the Subcommittee to the television programs. nears the edge of what the law allows. ‘‘Goes right discuss the tax-exempt organizations law and her The central issue is whether the television up to the edge. What’s the beef? Doesn’t go over the conclusions regarding Renewing American Civiliza- programs provided support to GOPAC. When edge, doesn’t break any law, isn’t wrong. It’s aggres- tion, she met with the Special Counsel to discuss the Congress enacted section 527 in 1974, the leg- sive, it’s entrepreneurial, it’s risk taking.’’ ACTV project. Although she did not formally islative history explained that the provision New York Times, section A, page 12, column 1 present her conclusions to the Subcommittee, the was not intended to affect the prohibition (Feb. 20, 1995). legal principles she explained during her meetings 72 A detailed discussion of the law pertaining to or- with the Subcommittee with respect to Renewing against electioneering activity contained in ganizations exempt from federal income tax under American Civilization were equally applicable to the section 501(c)(3). The IRS regulations under section 501(c)(3) of the Internal Revenue Code is at- facts surrounding the ACTV project and support her section 527 provide that section 501(c)(3) or- tached as an Appendix to this Report. conclusions set forth in this section of the Report. ganizations are not permitted to establish or H216 CONGRESSIONAL RECORD — HOUSE January 21, 1997 support a PAC. Treas. Reg. § 1.527–6(g). Under Democratic party with the ‘‘welfare state.’’ half of KSCF, PFF and Reinhardt in regard the applicable legal standards, there is a vio- (11/15/96 Roady Tr. 128, 130, 142, 145–148, 217– to the course entitled ‘‘Renewing American lation of the campaign intervention prohibi- 218; 11/19/96 Roady Tr. 35, 41). Civilization’’ and the activities of others on tion with respect to ALOF if the evidence The movement, the message of the move- behalf of those organizations with Mr. Ging- shows that the ACTV project provided sup- ment, and the course were all called ‘‘Renew- rich’s knowledge and approval was to provide port to GOPAC, even though the television ing American Civilization.’’ Mr. Gingrich’s more than an incidental benefit to Mr. Ging- programs were educational and were not lectures in the course were based on the rich, GOPAC, and other Republican entities used as a means to expressly advocate the same principles as the message of the move- and candidates in violation of the private election or defeat of a particular candidate. ment, and the course was an important vehi- benefit prohibition. (11/15/96 Roady Tr. 122, According to Ms. Roady, there is substan- cle for disseminating the message of the 125, 127, 143–145, 148, 152, 153, 187–189, 213–217). tial evidence of such support in this case. As movement. Mr. Gingrich stated that the b. Campaign intervention prohibition discussed above, the evidence shows that the course was ‘‘clearly the primary and domi- As discussed above, neither the fact that ACTV project conducted by ALOF was a con- nant method [of disseminating the message the content of the Renewing American Civ- tinuation of AOW, a partisan, political of the movement.]’’ Mr. Gingrich used the ilization course is educational within the project undertaken by GOPAC. Mr. Gingrich Renewing American Civilization message in meaning of section 501(c)(3) nor the fact that himself described ACTV as a continuation of almost every political and campaign speech the course lectures do not contain expres- the AOW project. The activities conducted he made in 1993 and 1994. He was instrumen- sions of support or opposition for a particu- by ALOF with respect to the ACTV project tal in determining that virtually the entire lar candidate precludes a finding that there were the same as the activities that had been political program for GOPAC for 1993 and is a violation of the campaign intervention conducted by GOPAC with respect to the 1994 would be centered on developing, dis- prohibition. Section 501(c)(3) organizations AOW project. The persons who conducted the seminating, and using the message of Renew- are prohibited from establishing or support- ACTV project on behalf of ALOF were ing American Civilization. (11/15/96 Roady Tr. ing PACs, and from providing support to can- GOPAC officers, employees, or consultants. 125–127, 144–145, 148–149, 153, 177, 218). didates in their campaign activities. The rel- Although GOPAC’s financial resources Shifting the project to ALOF allowed the evant issue is whether the course provided were not sufficient to enable it to carry out parties to raise some tax-deductible chari- support to GOPAC or to Mr. Gingrich in his all of the political programs at its usual table contributions to conduct what amount- capacity as a candidate. ed to the continuation of a GOPAC project level during this period, it had many roles in According to Ms. Roady, there is substan- for partisan, political purposes. For these regard to the course. These roles included de- tial evidence of such support in this case. As reasons, Ms. Roady concluded that Mr. Ging- velopment of the course content which was discussed above, the evidence shows that the rich’s activities on behalf of ALOF and the coordinated in advance with GOPAC charter course was developed by Mr. Gingrich as a activities of others on behalf of ALOF with members, fundraising for the course on be- part of a broader political movement to Mr. Gingrich’s knowledge and approval pro- half of the section 501(c)(3) organizations, renew American civilization by replacing the vided support to GOPAC in violation of the and promotion of the course. GOPAC envi- welfare state with an opportunity society. campaign intervention prohibition. sioned a partisan, political role for the The course was an important vehicle for discourse. (11/15/96 Roady Tr. 197–202, 208–209). seminating the message of that movement. 2. THE RENEWING AMERICAN CIVILIZATION From 1993 to 1995, KSCF and PFF spent COURSE The message of replacing the welfare state most of the money they had raised for the with the opportunity society was also used a. Private benefit prohibition course on the dissemination of the 20 hours in a partisan, political fashion. The ‘‘welfare The determination of whether there is a taught by Mr. Gingrich. These funds were state’’ was associated with Democrats and violation of the private benefit prohibition raised primarily through tax-deductible the ‘‘opportunity society’’ was associated does not depend on whether the teaching and charitable contributions to KSCF and to with Republicans. The message of the course dissemination of the course served an edu- PFF,74 funding that would not have been was also the main message of GOPAC during cational purpose, and cannot be made simply available had the project been conducted by 1993 and 1994 and the main message of vir- by analyzing the content of Mr. Gingrich’s GOPAC or another political or noncharitable tually every political and campaign speech lectures. The course met the definition of organization. made by Mr. Gingrich in 1993 and 1994. According to Ms. Roady, the facts as set ‘‘educational’’ under section 501(c)(3) and Through the use of section 501(c)(3) organiza- forth above show that, although the Renew- served an educational purpose. (11/15/96 tions, Mr. Gingrich and others acting with ing American Civilization course served an Roady Tr. 7). Nevertheless, there is a viola- his knowledge and approval raised tax-de- educational purpose, it had another purpose tion of section 501(c)(3) if another purpose of ductible charitable contributions which were as well. (11/19/96 Roady Tr. 37, 40). The other the course was to provide more than an inci- used to support a course designed, developed purpose was to provide a means for develop- dental private benefit. (11/15/96 Roady Tr. 17). and disseminated in a manner that provided ing and disseminating the message of Renew- Making this determination requires an anal- support to GOPAC in its political programs ing American Civilization by replacing the ysis of the facts to find out whether Mr. and to Mr. Gingrich in his re-election cam- welfare state with an opportunity society. Gingrich’s activities on behalf of KSCF, paign. For these reasons, Ms. Roady con- That was the main message of GOPAC and PFF, and Reinhardt and the activities of cluded that Mr. Gingrich’s activities on be- the main message of virtually every political others with his knowledge and approval had half of KSCF, PFF and Reinhardt and the ac- and campaign speech made by Mr. Gingrich another nonexempt purpose to provide more tivities of others on behalf of those organiza- in 1993 and 1994. Through the efforts of Mr. than an incidental benefit to private parties tions with Mr. Gingrich’s knowledge and ap- Gingrich and others acting with his knowl- such as Mr. Gingrich, GOPAC, and other Re- proval provided support to GOPAC and to edge and approval, tax-deductible charitable publican entities and candidates. In this Mr. Gingrich in violation of the campaign contributions were raised to support the dis- case, there is substantial evidence that these intervention prohibition. (11/15/96 Roady Tr. semination of a course in furtherance of Mr. parties were intended to and did receive 171–175, 194). more than an incidental benefit from the ac- Gingrich’s political strategies. (11/19/96 D. Advice Ms. Roady Would Have Given tivities conducted with respect to the course. Roady Tr. 37, 38). Mr. Gingrich encouraged (11/15/96 Roady Tr. 78, 123, 124, 130, 131, 142– GOPAC, House Republicans and other Repub- Had Mr. Gingrich or others associated with 145, 173, 195). lican entities and candidates to use the ACTV or Renewing American Civilization In summary, according to Ms. Roady, the course in their political strategies as well. consulted with Ms. Roady prior to conduct- evidence shows that the course was devel- (11/15/96 Roady Tr. 145, 152, 173). ing these activities under the sponsorship of oped by Mr. Gingrich in the context of a The partisan, political benefit to these par- 501(c)(3) organizations, she would have ad- broader movement. (11/15/96 Roady Tr. 127– ties was intended from the outset, and this vised that they not do so for the reasons set 130, 134–135, 196). This movement was in- benefit cannot be considered merely inciden- forth above. During her testimony before the tended to have political consequences that tal. To the contrary, the evidence supports a Subcommittee, she was asked what her ad- would benefit Mr. Gingrich in his re-election finding that one of Mr. Gingrich’s main pur- vice would have been to Mr. Gingrich and efforts, GOPAC in its national political ef- poses for teaching the course was to develop others associated with ACTV and Renewing forts, and Republican party entities and can- and disseminate the ideas, language, and American Civilization. She said that she didates in seeking to attain a Republican concepts of Renewing American Civilization would have recommended the use of a majority. The goals of the movement were as an integral part of a broad movement in- 501(c)(4) organization to pay for the dissemi- expressed in various ways, and included tended to have political consequences that nation of the course, as long as the dissemi- arousing 200,000 activists interested in re- would benefit him in his re-election efforts, nation was not the primary activity of the newing American civilization by replacing GOPAC in its political efforts, and other Re- 501(c)(4) organization. If this had been done, the welfare state with an opportunity soci- publican entities and candidates in seeking contributions for ACTV and the course ety and having the Republican party adopt to attain a Republican majority. For these would not have been tax-deductible. (11/15/96 the message of Renewing American Civiliza- reasons, Ms. Roady concluded that one of the Roady Tr. 207–208). tion so as to attract those activists to the purposes of Mr. Gingrich’s activities on be- VII. SUMMARY OF CONCLUSIONS OF MR. party. It was intended that a Republican ma- GINGRICH’S TAX COUNSEL A. Introduction jority would be part of the movement, and 74 Some funding came from the sale of videotapes that the Republican party would be identi- and audiotapes of the course. (7/12/96 Eisenach Tr. During the Preliminary Inquiry, Mr. Ging- fied with the ‘‘opportunity society’’ and the 283). rich’s lawyer forwarded to the Subcommittee January 21, 1997 CONGRESSIONAL RECORD — HOUSE H217 a legal opinion letter and follow-on letter re- respect to exempt organizations law. (12/12/96 zations or persons beyond the students them- garding the tax questions at issue. The let- Holden Tr. 26). selves. ters were prepared by attorney James P. When Mr. Baran asked Mr. Holden to pre- (9/6/96 Holden Ltr. 58). During his testimony Holden. At Mr. Gingrich’s request, Mr. Hold- pare his opinion letter, Mr. Baran did not before the Subcommittee, Mr. Holden said en and his partner who helped him prepare ask what qualifications Mr. Holden had in that because the course was educational the letters, Susan Serling, met with the Sub- the exempt organizations area. (12/12/96 Hold- within the meaning of the ‘‘methodology committee on December 12, 1996, to discuss en Tr. 32). Mr. Holden did not give Mr. Baran test’’ referred to above, he could not ‘‘con- his conclusions. The purpose of the letters any information regarding his background in ceive’’ of how the broad dissemination of its was to express Mr. Holden’s conclusions re- exempt organizations law other than the message could violate 501(c)(3). (12/12/96 Hold- garding whether any violation of section names of two references. (12/12/96 Holden Tr. en Tr. 71). 501(c)(3) occurred with respect to the Renew- 33). ing American Civilization course. Mr. Holden’s partner who helped prepared Now, when we get into the course—and I His understanding of the facts of the mat- the opinion, Susan Serling, does not have exam saying I am going to look at the activi- ter was based on a review of the course book perience in the exempt organizations field ties, and if I have a clean educational mes- prepared for the course, videotapes of the other than with respect to the one case re- sage, then my organization is entitled to discourse, documents produced by KSC pursu- ferred to above that is still before the IRS. seminate that message as broadly as we have ant the Georgia Opens Records Act, PFF’s (12/12/96 Holden Tr. 27). She is not a member the resources to do [for any purpose as long application to the IRS for exemption, news- of the ABA Exempt Organizations Commit- as it is] serving the public with that in the paper articles, discussions with Mr. Baran, tee and does not have any publications in the sense that this message has utility to the Mr. Eisenach, and counsel to PFF and exempt organizations field. She has never public. KSCF.75 given any speeches pertaining to exempt or- (12/12/96 Holden Tr. 113–114). In coming to his B. Qualifications of Mr. Gingrich’s Tax Counsel ganizations law and has never testified as an conclusion that the course did not violate Mr. Holden is a partner at the Washington, expert witness with respect to exempt orga- the private benefit prohibition, Mr. Holden D.C. law firm of Steptoe and Johnson. He nizations law. (12/12/96 Holden Tr. 27). made several findings of fact and several as- was an adjunct professor at Georgetown Uni- C. Summary of Conclusions of Mr. Gingrich’s sumptions. For example, he wrote that he versity Law Center from 1970 to 1983. He is Tax Counsel considered the facts that established a close connection between individuals who were ac- co-author of ‘‘Ethical Problems in Federal As set forth in Mr. Holden’s opinion letter, tive in GOPAC and the development and pro- Tax Practice’’ and ‘‘Standards of Tax Prac- his follow-on letter, and in his testimony, it motion of the course. As he characterized it, tice.’’ He is the author of numerous tax pub- was Mr. Holden’s opinion, based on his re- GOPAC’s former Executive Director and lications and a speaker at numerous tax in- view of the facts available to him, that GOPAC employees became employees or constitutes. He was chair of the American Bar ‘‘there would be no violation of section tractors to the organizations that conducted Association Section of Taxation from 1989 to 501(c)(3) if an organization described in that the course. Individuals, foundations, and cor- 1990; chair of the Advisory Group to the Com- section were to conduct ‘Renewing American porations that provided financial support for missioner of Internal Revenue from 1992 to Civilization’ as its primary activity.’’ (9/6/96 the course were also contributors to GOPAC 1993; and chair of the IRS Commissioner’s Holden Ltr. 4). In arriving at this opinion, or Mr. Gingrich’s political campaigns. Review Panel on Integrity Controls from 1989 Mr. Holden evaluated the facts in light of the GOPAC employees solicited contributions to 1990. He was a trustee and president of the requirements: American Tax Policy Institute from 1993 to for the course. (9/6/96 Holden Ltr. 4). Further- 1995 and a regent of the American College of 1. that a section 501(c)(3) organization be more, documents he reviewed: operated exclusively for an exempt purpose; Tax Counsel. He is or was a member of the provide[d] evidence that the course was de- 2. that the organization serve a public following organizations: American Law In- veloped in a political atmosphere and as part rather than a private interest; stitute (consultant, Federal Income Tax of a larger political strategy. The documents 3. that the earnings of an organization not Project); Advisory Group to Senate Finance indicate that Mr. Gingrich and GOPAC inure to the benefit of any person; Committee Staff regarding Subchapter C re- evolved a political theme that they denomi- 4. that no substantial part of the activities visions (1984–1985); Board of Advisors, New nated ‘‘Renewing American Civilization’’ and of the organization consist of attempting to York University/Internal Revenue Service that, in their political campaign capacities, influence legislation; and Continuing Professional Education Program they intended to press this theme to the ad- 5. that the organization not participate or (1987–1990); and BNA Tax Management Advi- vantage of Republican candidates. sory Board. He received a J.D. degree from intervene in any political campaign in support of or in opposition to any candidate for (9/17/96 Holden Ltr. 2). Mr. Holden assumed a Georgetown University Law Center in 1960 political motivation behind the development and a B.S. degree from the University of Col- public office. (9/6/96 Holden Ltr. 4). A discussion of Mr. of the course. As described in his opinion let- orado in 1953. ter: His experience in 501(c)(3) law stems prin- Holden’s views on the two principal tax ques- cipally from one client and one case that has tions at issue before the Subcommittee—the [T]he individuals who controlled GOPAC been before the IRS for the past six years. private benefit prohibition and campaign and who participated in promoting the (12/12/96 Holden Tr. 21).76 He said during his intervention prohibition—is set forth below. course viewed the course as desirable in a political context, and many of their expres- testimony, ‘‘I don’t pretend today to be a 1. PRIVATE BENEFIT PROHIBITION sions and comments evidence a political mo- specialist in exempt organizations. * * * I With respect to whether Renewing Amer- tive and interest. * * * Mr. Gingrich is a pretend to be an expert in the political as- ican Civilization violated the private benefit skilled politician whose ideology finds expects of such organizations.’’ (12/12/96 Holden prohibition described above, Mr. Holden’s pression in a political message, and he is in- Tr. 21). The one case Mr. Holden worked on opinion and follow-on letter focused exclu- terested in maximum exposure of that mes- has not been resolved and he has spent, on sively on the American Campaign Academy sage and in generating interest in those who average, about 30 percent of his time for the case. His letters did not refer to other prece- might be expected to become advocates of last six years on this case. (12/12/96 Holden dent or IRS statements pertaining to the pri- the message. In sum, we have not assumed Tr. 24). He has never been a member of any vate benefit prohibition. In evaluating that the development and promotion of the organization or committee concerned prin- whether Renewing American Civilization course were free from political motivation. cipally with tax-exempt organizations law. created any discernible secondary benefit, in (12/12/96 Holden Tr. 25). He does not have any the terms used by the Court in American (9/6/96 Holden Ltr. 4–5). Furthermore, Mr. publications in the exempt organizations Campaign Academy, Mr. Holden considered Holden said that when preparing his opinion, field. (12/12/96 Holden Tr. 25). He has never whether the course provided an ‘‘identifiable he made the ‘‘critical assumption that the given any speeches on exempt organizations benefit’’ to GOPAC or the Republican party. interests of the political persona surround- law nor has he been an expert witness with He concluded that it did not. ing GOPAC were advanced by creating this Following our review of the course mate- course.’’ (12/12/96 Holden Tr. 72). In this re- 75 Mr. Holden and his partner conferred with Mr. rials, the course syllabi, and video tapes of gard, Mr. Holden also said during his testi- Eisenach for about three hours. (12/12/96 Holden Tr. the course lectures, we have not been able to mony: 38). The conversation with KSCF counsel, via tele- identify any situation in which students of We have taken as an assumption that the phone, lasted about 30 minutes. (12/12/96 Holden Tr. the course were advised to vote Republican, intent [of the course] was to benefit the po- 39). The conversation with PFF’s counsel lasted join the Republican party, join GOPAC, or litical message. If someone told me that about two hours. (12/12/96 Holden Tr. 38–39). Mr. Holden did not talk to Mr. Gingrich prior to writing support Republicans in general. Rather, the teaching the course actually resulted in the the opinion. (12/12/96 Holden Tr. 43). He also did not course explored broad aspects of American benefit, I guess I wouldn’t be surprised be- talk to anyone else involved in the course, such as civilization through Mr. Gingrich’s admit- cause that was our understanding of the ob- Mr. Hanser, Ms. Rogers, Ms. Nelson, Mr. Mescon, or tedly partisan viewpoint. jective. * * * I accept[ed] for purposes of our Ms. Minnix. (12/12/96 Holden Tr. 43–44). (9/17/96 Holden Ltr. 5). Mr. Holden also wrote: opinion that there was an intent to advance 76 Although Mr. Holden declined to identify the cli- the political message by utilizing a (c)(3). ent in this case, he said that the case ‘‘is perhaps From our review of the course materials the largest case the Internal Revenue Service has ** * and their presentation, it appears to us (12/12/96 Holden Tr. 83). In Mr. Holden’s opin- before it on this whole issue.’’ (12/12/96 Holden Tr. 20– that the educational message was not nar- ion, however, the political motivation or 21). rowly targeted to benefit particular organi- strategy behind the creation of the course is H218 CONGRESSIONAL RECORD — HOUSE January 21, 1997 irrelevant when determining whether a vio- It’s an activities test. And this is where D. Advice Mr. Holden Would Have Given lation of the private benefit prohibition oc- the courts say this is the sole issue. The stuff During his appearance before the Sub- curred. before, they’re just kind of reciting the law. committee, Mr. Holden was asked about It is not the presence of politicians or po- When he gets to this, he said this is what we what type of organization he would have ad- litical ideas that controls. The pertinent law have to determine. vised Mr. Gingrich and others to use in order does not turn on the political affiliations or Mr. Cole: But in reciting the law, don’t to conduct and disseminate Renewing Amer- political motivations of the principal par- they say, in testing compliance with the ican Civilization had he been asked in ad- ticipants. operational test, we look beyond the four vance. He said that he would not have ad- (9/6/96 Holden Ltr. 6). According to Mr. Hold- corners of the organization’s charter to dis- vised the use of a 501(c)(3) organization been, the issue of whether a violation of cover the actual objects motivating the or- cause the mix of politics and tax-deductible 501(c)(3) occurred ‘‘may not be resolved by a ganization? Prior to that, they say the oper- funds is too ‘‘explosive.’’ determination that the individuals who de- ational test examines the actual purpose for I would have advised them not to do the signed and promoted the course acted with the organization’s activities, not the nature activity through a (c)(3). I have already ex- political motivation.’’ (9/17/96 Holden Ltr. 4). of the activities or the organization’s state- pressed that view to the Speaker. He didn’t In his opinion, when determining whether an ment of purpose. consult me in advance, but I said, if I had organization violated the private benefit I grant you that is the statement of the been advising you in advance. He said, why prohibition, it is necessary to determine law, but you are saying that has no signifi- not. I said, because the intersection of politi- whether an organization’s activities in fact cance? cal activity and 501(c)(3) is such an explosive served a private interest. (12/12/96 Holden Tr. Mr. Holden: That’s not the case Judge mix in terms of the IRS view of things that 80). What motivates the activities is irrele- Nims decided. * * * I would not advise you to move that close to vant. (12/12/96 Holden Tr. 77). the issue. You should find a way of financing I’m saying it’s irrelevant to look to what 2. CAMPAIGN INTERVENTION PROHIBITION the course that doesn’t involve the use of caused an individual or group of individuals In his opinion letter, Mr. Holden wrote 501(c)(3) funds. That would have been my ad- to form a (c)(3) or to utilize a 501(c)(3) orga- that it was ‘‘important to note that section vice to him. nization. The question instead is on the ac- 501(c)(3) does not, as is often suggested, bar I said, that doesn’t mean I conclude that tivities—the focus instead is on the activi- ‘political activity’ [by 501(c)(3) organiza- what you did is a violation. In fact, I think ties of the organization and whether they tion].’’ (9/6/96 Holden Ltr. 68). The prohibition we are kind of fairly far out beyond the fron- violated the operational test. I think that’s is more limited and prohibits an organiza- tiers of what has been decided in the past in a critical distinction. tion from participating in or intervening in this area. We are looking at the kind of case (12/12/96 Holden Tr. 61). He said that he was any political campaign on behalf of or in op- that I do not think has ever been presented. ‘‘aware of no authority that would hold that position to any candidate for public office. In I do not see how anyone can conclude that because one is motivated to establish a order for an organization to violate this pro- this is an open and shut case. It just is not 501(c)(3) organization by business, political, hibition, there must exist a campaign, a can- of that character. or other motivation, that means that the or- didate, a candidate seeking public office, and (12/12/96 Holden Tr. 132–134). Mr. Holden said ganization cannot operate in a manner that an organization that participates or inter- that an appropriate vehicle for the course satisfies 501(c)(3), because we are talking venes on behalf of or in opposition to that might have been a 501(c)(4) organization be- about an operational test.’’ (12/12/96 Holden candidate. (9/6/96 Holden Ltr. 68–69). Mr. cause such an organization can engage in Tr. 17–18). Mr. Holden cited American Cam- Holden concluded that the course did not some political activity and the activity paign Academy as an authority for his con- violate this prohibition. would not have used tax-deductible funds. clusion that an organization’s activity must The [course] materials contain no endorse- (12/12/96 Holden Tr. 132–134). Later, Mr. Hold- itself benefit a targeted group and that moti- ment of or opposition to the candidacy of en reiterated that he would have not rec- vation of an organization’s agents in con- any person, whether expressed by name or ommended that Renewing American Civiliza- ducting that activity is irrelevant. Mr. Hold- through the use of a label that might be tion be sponsored and funded by a 501(c)(3) organization and pointed out such activities en said: taken as a stand-in for a candidate. While are highly likely to attract the attention of [In American Campaign Academy] [t]he the materials are critical of what is referred the IRS. focus was, instead, on the operational test to as the ‘‘welfare state’’ and laudatory of [T]hose funds are deductible and the con- and whether the activities of the organiza- what is described as an ‘‘opportunity soci- junction of politics and a (c)(3) organization tion evidenced a purpose to serve a private ety,’’ none of this is properly characterized is so explosive as a mix that it is bound to interest. But you have to find that in the ac- as personalized to candidates, directly or in- attract the attention of the Internal Reve- tivities of the organization and not in some directly. nue Service. I wouldn’t have been thinking general notion of motivation or background (9/6/96 Holden Ltr. 72). During his testimony purpose. about this committee. I would have been before the Subcommittee, Mr. Holden said thinking about whether the Internal Reve- (12/12/96 Holden Tr. 61). In light of these and that the course contained issue advocacy in nue Service would have been likely to chal- similar comments made by Mr. Holden, the the sense that it called for the replacement lenge. Special Counsel asked Mr. Holden to com- of the welfare state with the opportunity so- (12/12/96 Holden Tr. 146). After Mr. Holden ment on statements found in the American ciety. (12/12/96 Holden Tr. 103–104). He also made this comment, the following exchange Campaign Academy case at page 1064. The said that this issue—the replacement of the occurred: statements are in a section of the case under welfare state with an opportunity society— Ms. Pelosi: So it would have raised the heading ‘‘Operational Test’’ and are as was closely identified with Mr. Gingrich and questions[?] follows: his political campaigns. (12/12/96 Holden Tr. Mr. Holden: Yes. The operational test examines the actual 104). He, however, did not see this as a basis Mr. Goss: Isn’t that a little bit akin to hav- purpose for the organization’s activities and for concluding that the course violated the ing a yacht and an airplane on your tax re- not the nature of the activities or the organi- prohibition on intervention in a political turn for business purposes[?] zation’s statement of purpose. (citations campaign because ‘‘Mr. Gingrich [had not] Mr. Holden: It is one of those things that omitted). (emphasis supplied). captured [this issue] to the point where it is stands out. In testing compliance with the operational not a legitimate public interest issue for dis- test, we look beyond the four corners of the cussion in a purely educational setting, even (12/12/96 Holden Tr. 146–147). organization’s charter to discover ‘‘the ac- where he is the instructor.’’ (12/12/96 Holden VIII. SUMMARY OF FACTS PERTAINING TO tual objects motivating the organization and Tr. 104).77 STATEMENTS MADE TO THE COMMITTEE the subsequent conduct of the organization.’’ A. Background (citations omitted). (emphasis supplied). 77 See also 12/12/96 Holden Tr. 103: On or about September 7, 1994, Ben Jones, What an organization’s purposes are and Mr. Schiff: But if you are providing 501(c)(3) raised Mr. Gingrich’s Democratic opponent in 1994, what purposes its activities support are money to pay for that candidate to give the same filed with the Committee a complaint questions of fact. (citations omitted). message, which is his political message, I think, for against Mr. Gingrich. The complaint cen- (12/12/96 Holden Tr. 75–76). After the Special all substantial purposes, aren’t you then, in effect, tered on the course. Among other things, it Counsel brought these sections of the case to intervening or even endorsing the candidate by alleged that Mr. Gingrich had used his con- using that type of money to allow him to get his Mr. Holden’s attention, the following ex- message further than it would get in the absence of gressional staff to work on the course and change occurred: that money? that he had misused organizations that were Mr. Holden: May I refer you to the last Mr. Holden: I go back to the fact that we have a exempt from taxation under section 501(c)(3) sentence before the next heading, ‘‘Operating clean curriculum that we were talking about in a of the Internal Revenue Code because the Primarily for Exempt Purposes.’’ The last hypothetical and in the judgment that we reached course was a partisan, political project, with sentence before that says: ‘‘The sole issue for about this case, and I don’t believe that merely be- significant involvement by GOPAC, and was declaration [sic] is whether respondent prop- cause a political figure takes a particular set of val- not a permissible activity for a section ues and articulates them as a political theme, that 501(c)(3) organization. (Ex. 135). erly determined that petitioner failed to sat- that so captures that set of values that a 501(c)(3) or- isfy the first condition of the operational ganization cannot legitimately educate people about test by not primarily engaging in activities, that same set of values. Mr. Holden: It doesn’t seem to me that that com- which is not for exempt purposes.’’ Mr. Schiff: With the same messenger? pels a conclusion that there’s a violation of 501(c)(3). January 21, 1997 CONGRESSIONAL RECORD — HOUSE H219 On or about October 4, 1994, Mr. Gingrich American Civilization’’ organizers went out Subcommittee all documents that were used wrote the Committee in response to the com- of their way to avoid even the appearances of or relied upon to prepare the letters at plaint and primarily addressed the issues improper association with GOPAC. Before we issue—the letters dated October 4, 1994, De- concerning the use of congressional staff for had raised the first dollar or sent out the cember 8, 1994 and March 27, 1995. Mr. Ging- the course. In doing so he stated: first brochure, Course Project Director Jeff rich responded to the Committee’s request I would like to make it abundantly clear Eisenach resigned his position at GOPAC. on October 31, 1996. (Ex. 141). In his response, that those who were paid for course prepara- (Ex. 138, p. 4). Mr. Gingrich described how extremely busy tion were paid by either the Kennesaw State The goal of the letter was to have the he was at the time the October 4, 1994, and Foundation, [sic] the Progress and Freedom complaint dismissed. (11/13/96 Gingrich December 8, 1994 letters were prepared. He Foundation or GOPAC. * * * Those persons said, the October 4, 1994 letter was written paid by one of the aforementioned groups in- Tr. 36). ‘‘in [the] context of exhaustion and focused clude: Dr. Jeffrey Eisenach, Mike DuGally, 2. MARCH 27, 1995 LETTER OF MR. GINGRICH’S effort’’ on finishing a congressional session, Jana Rogers, Patty Stechschultez [sic], Pam- ATTORNEY TO THE COMMITTEE traveling to over a hundred congressional ela Prochnow, Dr. Steve Hanser, Joe Gaylord On January 26, 1995, Representative Bonior districts, tending to his duties as Whip, and and Nancy Desmond. filed with the Committee an amended ver- running for re-election in his district. (Ex. (Ex. 136, p. 2). After the Committee received sion of the Ben Jones complaint against Mr. 141, p. 1). At the time of the December 8, 1994 and reviewed Mr. Gingrich’s October 4, 1994 Gingrich. (Ex. 139). Among other things, the letter, he said that he and his staff were letter, it sent him a letter dated October 31, complaint re-alleged that the Renewing ‘‘making literally hundreds of decisions’’ as 1994, asking for additional information con- American Civilization course had partisan, part of the transition in the House from cerning the allegations of misuse of tax-ex- political purposes and was in violation of Democratic to Republican Control. (Ex. 141, empt organizations in regard to the course. section 501(c)(3). The complaint also alleged p. 2; 11/13/96 Gingrich Tr. 6, 10, 26). With re- The Committee also asked for information substantial involvement of GOPAC in the spect to his level of activity at the time the relating to the involvement of GOPAC in course. (Ex. 139, pp. 1–7). In a letter dated March 27, 1995 letter was created Mr. Ging- various aspects of the course. As set forth in March 27, 1995, Mr. Baran, Mr. Gingrich’s at- rich said the following: the letter, the Committee wrote: torney and a partner at the law firm of [W]e were going through passing the Con- There is, however, an allegation which re- Wiley, Rein and Fielding, filed a response on tract with America in a record 100 days in quires explanation before the Committee can behalf of Mr. Gingrich to the amended com- what many people believe was a forced finalize its evaluation of the complaint. This plaint. (Ex. 140, PFF 4347). Prior to the letter march. I was, in parallel, beginning to lay is the allegation that, in seeking and obtain- being delivered, Mr. Gingrich reviewed it and out the base for the balanced budget by 2002, ing funding for your course on Renewing approved its submission to the Committee. and I was, frankly, being too noisy publicly American Civilization, you improperly used (7/18/96 Gingrich Tr. 274–275). and damaging myself in the process. tax-exempt foundations to obtain taxpayer Mr. Cole: If there was anything inaccurate I had three projects—four; I was writing a subsidization of political activity. in the letter, would you have told Mr. Baran book. So those four projects were ongoing as * * * * * to change it? I was going home to report to my district, Your answers to [questions set forth in the Mr. Gingrich: Absolutely. and we were being battered as part of this letter] would be helpful to the Committee in (7/18/96 Gingrich Tr. 275). continuum by Bonior and others, and we wanted it handled in a professional, calm deciding what formal action to take with re- The letter contains the following state- manner. We wanted to honor the Ethics spect to the complaint. ments, which Mr. Gingrich has admitted process. * * * * * were inaccurate, incomplete, and unreliable. A number of documents submitted by Ben 1. As Ex. 13 demonstrates, the course solic- (11/13/96 Gingrich Tr. 33–34). Jones, however, raise questions as to wheth- itation * * * materials are completely non- Mr. Gingrich wrote in his October 31, 1996 er the course was in fact exclusively edu- partisan. (Ex. 140, p. 19, fn. 7). response to the Subcommittee that ‘‘al- cational in nature, or instead constituted 2. GOPAC did not become involved in the though [he] did not prepare any of the letters partisan political activity intended to bene- Speaker’s academic affairs because it is a po- in question, in each case [he] reviewed the fit Republican candidates. litical organization whose interests are not documents for accuracy.’’ (Ex. 141, p. 3). Spe- (Ex. 137, pp. 1–2). advanced by this non-partisan educational cifically, with respect to the October 4, 1994 B. Statements Made by Mr. Gingrich to the endeavor. (Ex. 140, p. 35). letter, his assistant, Annette Thompson Committee, Directly or Through Counsel 3. The Renewing American Civilization Meeks, showed him the draft she had created 1. MR. GINGRICH’S DECEMBER 8, 1994 LETTER TO course and GOPAC have never had any rela- and he ‘‘read it, found it accurate to the best THE COMMITTEE tionship, official or otherwise. (Ex. 140, p. 35). of [his] knowledge, and signed it.’’ (Ex. 141, p. In a letter dated December 8, 1994, Mr. 4. As noted previously, GOPAC has had ab- 2). With respect to the December 8, 1994 let- Gingrich responded to the Committee’s Octo- solutely no role in funding, promoting, or ad- ter, he wrote, ‘‘Again I would have read the ber 31, 1994 letter. (Ex. 138). In that letter, ministering Renewing American Civiliza- letter carefully and concluded that it was ac- Mr. Gingrich made the following statements, tion. (Ex. 140, pp. 34–35). curate to the best of my knowledge and then which he has admitted were inaccurate, in- 5. GOPAC has not been involved in course signed it.’’ (Ex. 141, p. 2). With respect to the complete, and unreliable. fundraising and has never contributed any March 27, 1995 letter, he wrote that he ‘‘read 1. [The course] was, by design and applica- money or services to the course. (Ex. 140, p. [it] to ensure that it was consistent with tion, completely non-partisan. It was and re- 28). [his] recollection of events at that time.’’ mains about ideas, not politics. (Ex. 138, p. 6. Anticipating media or political attempts (Ex. 141, p. 3). 2). to link the course to GOPAC, course organiz- D. Creation of the December 8, 1994 and March 2. The idea to teach ‘‘Renewing American ers went out of their way to avoid even the 27, 1995 Letters appearance of associating with GOPAC. Civilization’’ arose wholly independent of Mr. Gingrich appeared before the Sub- Prior to becoming Course Project Director, GOPAC, because the course, unlike the com- committee on November 13, 1996 to testify Jeffrey Eisenach resigned his position at mittee, is non-partisan and apolitical. My about these letters.78 He began his testimony GOPAC and has not returned. (Ex. 140, p. 36). motivation for teaching these ideas arose by stating that the ‘‘ethics process is very not as a politician, but rather as a former ed- The purpose of Mr. Baran’s letter was to important.’’ (11/13/96 Gingrich Tr. 4). He then ucator and concerned American citizen * * *. have the Committee dismiss the complaints went on to state: (Ex. 138, p. 4). against Mr. Gingrich. (11/13/96 Gingrich Tr. 3. The fact is, ‘‘Renewing American Civili- 35–36). On Monday I reviewed the 380-page [July 1996] interview with Mr. Cole, and I just want zation’’ and GOPAC have never had any offi- C. Subcommittee’s Inquiry Into Statements to begin by saying to the [C]ommittee that I cial relationship. (Ex. 138, p. 4). Made to the Committee 4. GOPAC * * * is a political organization am very embarrassed to report that I have On September 26, 1996, the Subcommittee whose interests are not directly advanced by concluded that reasonable people could con- expanded the scope of the Preliminary In- this non-partisan educational endeavor. (Ex. clude, looking at all the data, that the let- quiry to determine: 138, p. 5). ters are not fully responsive, and, in fact, I 5. As a political action committee, GOPAC [w]hether Representative Gingrich provided think do fail to meet the standard of accu- never participated in the administration of accurate, reliable, and complete information rate, reliable and complete. ‘‘Renewing American Civilization.’’ (Ex. 138, concerning the course entitled ‘‘Renewing p. 4). American Civilization,’’ GOPAC’s relation- 78 Mr. Gingrich appeared twice before the Sub- 6. Where employees of GOPAC simulta- ship to the course entitled ‘‘Renewing Amer- committee to discuss these letters. The first time neously assisted the project, they did so as ican Civilization,’’ or the Progress and Free- was on November 13, 1996, in response to a request private, civic-minded individuals contribut- dom Foundation in the course of commu- from the Subcommittee that he appear and testify ing time and effort to a 501(c)(3) organiza- nicating with the Committee, directly or about the matter under oath. The second time was tion. (Ex. 138, p. 4). through counsel * * *. on December 10, 1996, as part of his opportunity to 7. Anticipating media or political attempts On October 1, 1996, the Subcommittee re- address the Subcommittee pursuant to Rule 17(a)(3) of the Committee’s Rules. Pursuant to Committee to link the Course to [GOPAC], ‘‘Renewing quested that Mr. Gingrich produce to the Rules, that appearance was also under oath. H220 CONGRESSIONAL RECORD — HOUSE January 21, 1997 (11/13/96 Gingrich Tr. 5). Mr. Gingrich said not contact GOPAC, Kennesaw State Col- ing to her, and you will have to confirm it several times that it was only on the Mon- lege, or Reinhardt College. (11/13/96 Baran Tr. with her. I tried to not talk to her about day before his testimony—the day when he 13, 15, 18). Mr. Baran did not recall speaking that. reviewed the transcript of his July interview to Mr. Gingrich about the letter other than with Mr. Cole—that he realized the letters possibly over dinner on December 9, 1994— (11/13/96 Baran Tr. 10). Mr. Baran de- were inaccurate, incomplete, and unreliable. one day after the letter was signed by Mr. scribed the process for reviewing the (11/13/96 Gingrich Tr. 5, 8, 10, 149, 150, 195; 12/ Gingrich. (11/13/96 Baran Tr. 18, 33). Mr. letter as follows: 10/96 Gingrich Tr. 75). In his testimony before Baran did contact Mr. Eisenach, but did not Well, you know, as a counsel who was re- the Subcommittee the next month, Mr. recall the ‘‘nature of the contact.’’ (11/13/96 tained relatively late in that process at that Gingrich ‘‘apologized for what was clearly a Baran Tr. 16). Mr. Eisenach said he had no failure to communicate accurately and com- time and as someone who had no firsthand record of ever having spoken to Mr. Baran knowledge about any of the underlying ac- pletely with this [C]ommittee.’’ (12/10/96 about the letter and does not believe that he Gingrich Tr. 5). Mr. Gingrich said the errors tivities and with a marching order of trying did so. (11/14/96 Eisenach Tr. 18–19, 22). The to prepare a draft that was usable by the were a result of ‘‘a failure to communicate conversation he had with Mr. Baran con- involving my legal counsel, my staff and staff, we were pretty much focused on get- cerned matters unrelated to the letter. ting something together and over to Annette me.’’ (11/14/96 Eisenach Tr. 17–18). Mr. Eisenach (12/10/96 Gingrich Tr. 5). Mr. Gingrich went Meeks so that it could be used. Verification also said that no one has ever given him a on to say: was something that would have been avail- copy of the December 8, 1994 letter and asked able through those who had firsthand knowl- After reviewing my testimony, my coun- him to verify its contents. (11/14/96 Eisenach sel’s testimony, and the testimony of two of edge about these facts, who had reviewed the Tr. 22). draft. his associates, the ball appears to have been The other attorney at Wiley, Rein and dropped between my staff and my counsel re- Fielding involved in preparing the response (11/13/96 Baran Tr. 15). Mr. Baran did not, garding the investigation and verification of was Bruce Mehlman. (11/13/96 Baran Tr. 19; 11/ however, know whether the letter was re- the responses submitted to the [C]ommittee. 19/96 Mehlman Tr. 17). He was a first-year as- As I testified, I erroneously, it turns out, viewed by others to determine its accuracy. sociate who had been at Wiley, Rein and relied on others to verify the accuracy of the (11/13/96 Baran Tr. 48). statements and responses. This did not hap- Fielding since September 1994. (11/19/96 83 Ms. Meeks said that at the time the letter pen. As my counsel’s testimony indicates, Mehlman Tr. 5). Mr. Mehlman’s role was to create the first draft. (11/19/96 Mehlman Tr. was being prepared, she had no knowledge of there was no detailed discussion with me re- whether: garding the submissions before they were 15). The materials Mr. Mehlman had avail- 1. the course was a political or partisan ac- sent to the [C]ommittee. Nonetheless, I bear able to him to prepare the draft were: responsibility for them, and I again apolo- 1. correspondence between Mr. Gingrich tivity by design or application; gize to the [C]ommittee for what was an in- and the Committee, including the October 4, 2. GOPAC was involved in the course; advertent and embarrassing breakdown. 1994 letter; 3. GOPAC was benefited by the course; 2. course videotapes; 4. GOPAC created, funded, or administered * * * * * 3. the book used in the course called ‘‘Re- the course; At no time did I intend to mislead the newing American Civilization’’; 5. the idea to teach the course arose wholly [C]ommittee or in any way be less than 4. a course brochure; independent of GOPAC; forthright. 5. the complaint filed by Ben Jones against 6. Mr. Gingrich’s motivation for teaching (12/10/96 Gingrich Tr. 5–7). Of all the people Mr. Gingrich; and the course arose not as a politician but rath- involved in drafting, reviewing, or submit- 6. documents produced pursuant to a Geor- er as a historian; ting the letters, the only person who had gia Open Records Act request. 7. Mr. Eisenach resigned his position at first-hand knowledge of the facts contained GOPAC. within them with respect to the Renewing (11/19/96 Mehlman Tr. 15–16, 20). Mr. Mehlman American Civilization course was Mr. Ging- said that he did not attempt to gather any (11/14/96 Meeks Tr. 45–47). Ms. Meeks also said rich. other documents because he did not see a she was unaware that GOPAC’s theme was need to go beyond these materials in order to 1. CREATION OF THE DECEMBER 8, 1994 LETTER Renewing American Civilization. (11/14/96 prepare a response. (11/19/96 Mehlman Tr. 19– Meeks Tr. 88). According to Mr. Gingrich, after he re- 20). With the exception of contacting his ceived the Committee’s October 31, 1994 let- brother, who had taken the course,84 Mr. Ms. Meeks said she had no role in drafting ter, he decided that the issues in the letter Mehlman did not make any inquiries of peo- the letter, did not talk to anyone to verify were too complex to be handled by his office ple regarding the facts of the matter. (11/19/ that the facts in the letter were accurate, and he sought the assistance of an attorney. 96 Mehlman Tr. 18). He did not, for example, and had no knowledge of how the facts in the (11/13/96 Gingrich Tr. 11). Mr. Gaylord, on be- contact GOPAC or Mr. Eisenach. (11/19/96 letter were checked for accuracy. (11/14/96 half of Mr. Gingrich, contacted Jan Baran Mehlman Tr. 28). After he completed his first and the Mr. Baran’s firm began representing Meeks Tr. 39, 48, 51). She did not indicate to Mr. Gingrich on November 15, 1994. (11/14/96 draft, he gave it to Mr. Baran. (11/19/96 Mr. Baran that she had given the letter to Mehlman Tr. 22). He assumed that Mr. Baran Gaylord Tr. 16; 79 11/13/96 Baran Tr. 4; 80 12/10/ anyone for the purpose of checking its accu- 96 Gingrich Tr. 5). The response prepared by would make sure that any factual questions racy. (11/14/96 Meeks Tr. 87). In this regard, Mr. Baran’s firm became the letter from Mr. would have been answered to his satisfaction Ms. Meeks said: before the letter went out. (11/19/96 Mehlman Gingrich to the Committee dated December I will be very frank and tell you I don’t Tr. 51). However, Mr. Mehlman did not know 8, 1994. know how [Mr. Baran] composed this infor- what, if anything, Mr. Baran did with the According to Mr. Baran, he did not receive mation as far as who he spoke with. I was draft after he gave it to him. (11/19/96 any indication from Mr. Gaylord or Mr. not privy to any of that. The only thing I Mehlman Tr. 22). Gingrich that Mr. Baran was to do any kind could add to my answer is that once counsel When Mr. Gaylord asked Mr. Baran to pre- of factual review in order to prepare the re- is retained, we were kind of out of the pic- 81 pare the letter, it was Mr. Baran’s under- sponse. (11/13/96 Baran Tr. 47–48). Mr. Baran ture as far as the process, other than typing standing that Annette Thompson Meeks, an and his staff did not seek or review docu- and transmitting. ments other than those attached to the com- Administrative Assistant for Mr. Gingrich’s plaint of Mr. Jones and the Committee’s Oc- office, would help. (11/13/96 Baran Tr. 5, 7). (11/14/96 Meeks Tr. 92). She said her role was tober 31, 1994 letter to Mr. Gingrich 82 and did According to Mr. Baran, Ms. Meeks’ role to provide Mr. Baran with: background infor- was: mation about Mr. McCarthy (the Commit- 79 Mr. Gaylord was the one to contact the firm be- basically to take a draft product from us and tee’s counsel who had conferred with Mr. cause his position was ‘‘advisor to Congressman review it for accuracy [from] her personal Gingrich’’ and he coordinated ‘‘all of the activities Gingrich about the course in 1993); a copy of that were outside the official purview of [Mr. Ging- knowledge and basically make sure that it the October 4, 1994 letter from Mr. Gingrich rich’s] congressional responsibilities.’’ (11/14/96 Gay- was acceptable. And in that regard, I be- to the Committee; copies of papers relating lord Tr. 19; 11/13/96 Baran Tr. 7). lieved that she may have spoken with other to Mr. Hanser’s employment with Mr. Ging- 80 Mr. Gingrich waived his attorney/client privilege people to confirm that, but you will be talk- rich’s congressional office; and copies of the and asked Mr. Baran to testify before the Commit- tee. (11/13/96 Gingrich Tr. 5). course videotapes. (11/14/96 Meeks Tr. 36–37). 81 Mr. Gaylord said that he did not give any in- 83 Mr. Mehlman left Wiley, Rein & Fielding in Feb- Mr. Gaylord had a similar expectation in ruary 1996 and is now an attorney with the National structions to Mr. Baran about how the response that, by retaining Wiley, Rein and Fielding, should be prepared. (11/14/96 Gaylord Tr. 16–17). Mr. Republican Congressional Committee. (11/19/96 Baran, however, recalled that Mr. Gaylord said that Mehlman Tr. 5). the firm was: the response should be completed quickly ‘‘because 84 The information obtained from his brother used both protecting us and had done the proper there was hope that the Ethics Committee would as the basis of the statement in Mr. Gingrich’s re- and correct investigation in the preparation meet before the end of the year to consider this mat- sponse that the course contained ‘‘as many ref- of the letters and that they, in fact, did their erences to Franklin Roosevelt, Jimmy Carter, and ter’’ and that it should not be too expensive. (11/13/ job because that’s what they were paid to do. 96 Baran Tr. 7, 46–48). Martin Luther King, Jr. as there are to Ronald 82 The attachments to the October 31, 1994 letter Reagan or Margaret Thatcher.’’ (11/19/96 Mehlman And I presumed that they had extracted the were selected from materials that were part of the Tr. 20). Mr. Mehlman, however, personally reviewed information from Dr. Eisenach and others complaint filed by Mr. Jones. only one course videotape. (11/19/96 Mehlman Tr. 21). who were involved specifically in the course. January 21, 1997 CONGRESSIONAL RECORD — HOUSE H221 (11/14/96 Gaylord Tr. 62). Mr. Gaylord, how- Open Records Act] documents or some of the there were uses of GOPAC resources that ever, did not know what inquiry Mr. Baran course materials that purport to be non- were accounted for by Mr. Eisenach.’’ (11/13/ made in order to prepare the letter. (11/14/96 partisan, or to have created a course that 96 Baran Tr. 21). Mr. Baran could not recall Gaylord Tr. 17). was nonpartisan, that certainly would ex- how he came to this understanding. (11/13/96 After Mr. Baran sent Ms. Meeks a draft of plain design. Baran Tr. 21–22). the letter, Ms. Meeks re-typed the letter and As far as in application, probably the ref- With respect to whether Mr. Baran knew sent the new version to Mr. Baran to verify erence made by my brother who had seen the that GOPAC was involved in raising funds that it was identical to what he had sent her. course, who had participated in it, I suppose, for the course, Mr. Baran said: She then recalled faxing a copy to Mr. Gay- and my general basic review of the initial At that time my recollection of quote, lord and to Mr. Gingrich’s executive assist- writings about the course and viewing the GOPAC being involved in fund-raising [un- ant ‘‘to get Newt to take a look at it.’’ (11/ first videotape of the course, suggested that quote] was focused on Ms. Prochnow, the fi- 14/96 Meeks Tr. 43–44). Mr. Gingrich said the course was nonpartisan. nance director who I don’t know and have about his review of the letter: (11/19/96 Mehlman Tr. 24–25). never met, but whose role was characterized, And I think in my head, I was presented a According to Mr. Baran, the letter to the I believe, by Jeff Eisenach to me at some document—I am not trying to blame any- College Republicans—which was one of the point, as having helped raise a couple of con- body, or I am not trying to avoid this, I am attachments to the September 7, 1994 Jones tributions, I think, Cracker Barrel was one trying to explain how it happened. I was pre- complaint (Ex. 81)—did not raise a question of them, that is a name that sticks in my sented a document and told, this is what we in his mind that the course was partisan or mind. But it was characterized as being sort have collectively decided is an accurate about politics. (11/13/96 Baran Tr. 23). of ancillary and just really not material. statement of fact. I read the document, and 2. ‘‘The idea to teach ‘Renewing American (11/13/96 Baran Tr. 41). it did not at any point leap out to me and Civilization’ arose wholly independent of 3. CREATION OF THE MARCH 27, 1995 LETTER say, boy, you had better modify paragraph 3, GOPAC, because the course, unlike the com- or that this phrase is too strong and too de- mittee, is non-partisan and apolitical. My In addition to the associate, Mr. Mehlman, finitive. I think I read it one time, so that motivation for teaching these ideas arose who had worked with Mr. Baran in drafting seems right to me, and I signed it. not as a politician, but rather as a former ed- Mr. Gingrich’s December 8, 1994 letter to the (11/13/96 Gingrich Tr. 11). See also 11/13/96 ucator and concerned American citizen Committee, another associate, Michael Gingrich Tr. 10 (at the time he read the let- * * *.’’ (Ex. 138, p. 4). Toner, helped Mr. Baran draft what became ter, ‘‘nothing leaped out at [him] and said, Mr. Baran said that the basis of this state- the March 27, 1995 letter.87 (11/19/96 Toner Tr. ‘this is wrong’ ’’) and 11/13/96 Gingrich Tr. 16 ment was a review of the course tapes and 10–11). As with the December 8, 1994 letter, 85 (the letter ‘‘seemed accurate’’ to him). the belief that the course had originated Mr. Baran did not receive any indication Mr. Gaylord did not recall whether he re- from a January 25, 1993 speech Mr. Gingrich from Mr. Gaylord or Mr. Gingrich that Mr. viewed the letter prior to its being sent to had given on the House floor. (11/13/96 Baran Baran was to do any kind of factual review the Committee. (11/14/96 Gaylord Tr. 18). Mr. Tr. 24–25). At the time the letter was drafted, in order to prepare the March 27, 1995 letter. Gaylord said that the statement that GOPAC Mr. Baran was unaware of Mr. Gingrich’s De- (11/13/96 Baran Tr. 48). Mr. Baran did not re- had no role in the administration of the cember 1992 meeting with Owen Roberts call contacting anyone outside the law firm course was incorrect. (11/14/96 Gaylord Tr. 30– where Mr. Gingrich first laid out his ideas for facts relevant to the preparation of the 31). Mr. Gaylord said that the statement that for the Renewing American Civilization letter with respect to the course. He said GOPAC employees contributed time as pri- movement and course. (11/13/96 Baran Tr. 25). that ‘‘the facts about the course, frankly, vate, civic-minded people was incorrect. (11/ Mr. Mehlman did not speak with Mr. Ging- didn’t seem to have changed any from the 14/96 Gaylord Tr. 31). Mr. Gaylord was not rich about his motivations for the course and December period to the March period. And asked to verify the facts in the letters. (11/14/ did not know if Mr. Baran had spoken with our focus seemed to be elsewhere.’’ (11/13/96 96 Gaylord Tr. 20, 33). Mr. Gingrich about his motivations for Baran Tr. 28). Both Mr. Mehlman and Mr. 2. BASES FOR STATEMENTS IN THE DECEMBER 8, teaching the course. (11/19/96 Mehlman Tr. Toner said that they did not contact anyone 1994 LETTER 27). with knowledge of the facts at issue in order During their testimony, those involved in to prepare the letter. (11/19/96 Toner Tr. 21–22, 3. ‘‘The fact is, ‘Renewing American Civili- the creation of the letter were unable to ex- 38; 11/19/96 Mehlman Tr. 38). zation’ and GOPAC have never had any offi- plain the bases for many of the statements Ms. Meeks said that she had no role in the cial relationship.’’ (Ex. 38, p. 4). in the letter. Explanations were, however, preparation of the letter. (11/14/96 Meeks Tr. given for the bases of some of the state- Mr. Baran said about this statement: 50). She saw it for the first time one day ments. A summary of those bases is set forth Well, I think the basis of [this] statement[] prior to her testimony before the Sub- below. [was] essentially the characterizations that committee in November 1996. (11/14/96 Meeks 1. [The course] was, by design and applica- had been placed on the relationship between Tr. 50). Mr. Eisenach said that he did not tion, completely non-partisan. It was and re- the course and GOPAC by people like Jeff have any role in the preparation of the letter 86 mains about ideas, not politics. (Ex. 138, p. Eisenach at that time, and it was consist- nor was he asked to review it prior to its 2). ent with my limited knowledge of GOPAC’s submission to the Committee. (11/14/96 association with the course at that time. . .. Eisenach Tr. 24–25). Mr. Gaylord said that he Mr. Baran said that the basis for this You know, the various materials, some of had no role in the preparation of the letter statement was his review of the course tapes which we went through this morning, were and did not provide any information that is and course materials. (11/13/96 Baran Tr. 19). items that came to my attention in the in the letter. (11/14/96 Gaylord Tr. 20). He also Mr. Mehlman said the following about his course of the document production, which said that he did not discuss the letter with understanding of the basis of this statement: commenced, I think, around April of this Mr. Gingrich or Mr. Baran at the time of its Well, I don’t specifically recall. If I had to year and took quite a bit of time, or that preparation. (11/14/96 Gaylord Tr. 21). Mr. assume, it would be some of the [Georgia came up in the course of your interviews Gaylord said that he did not know where with Mr. Gingrich. Baran obtained the facts for the letter. He 85 In early July 1993, Mr. Gingrich was interviewed * * * * * ‘‘presumed’’ that Mr. Baran and his associ- about the course by a student reporter with the KSC Well, I think the basis is that these state- ates had gathered the facts. (11/14/96 Gaylord newspaper. In that interview the following exchange ments were being reviewed by people who Tr. 21–22). took place: Mr. Baran said that his role in creating the Interviewer: And how is GOPAC involved in this? would presumably be in a position to correct Mr. Gingrich: It’s not involved in this at all. me if there [sic] was wrong. letter was to meet with Mr. Mehlman and Interviewer: Are you going to bring a lot of your (11/13/96 Baran Tr. 36–37). Mr. Toner, review the status of their re- ideas to GOPAC though? When asked about the appearance of search and drafting and review their drafts. Mr. Gingrich: Absolutely. Every single one of GOPAC fax cover sheets on documents per- (11/13/96 Baran Tr. 28). Mr. Mehlman and Mr. them. Toner divided responsibility for drafting por- (Ex. 142, p. 10). taining to the course, Mr. Baran said that such faxes raised questions in his mind but tions of the letter. (11/19/96 Toner Tr. 12–14; In other interviews over the past few years, Mr. 11/19/96 Mehlman Tr. 36, 37, 40). Mr. Baran Gingrich has made other statements about GOPAC’s that he ‘‘had an understanding at that time also made edits to the letter. (11/19/96 involvement in the course. They have included, for that those questions were addressed by an example, the following: explanation that there were either incidental Mehlman Tr. 40). During his interview, Mr. 1.‘‘GOPAC had the most incidental involvement at or inadvertent uses of GOPAC resources or Toner stressed that there were many edits to the very beginning of the process.’’ (Atlanta Con- the letter by Mr. Baran, Mr. Mehlman, and stitution, section A, page 1 (Sept. 19, 1993)). himself and he could, therefore, not explain 2.‘‘GOPAC provided some initial ideas on who 86 Earlier in his testimony and as described above, who had drafted particular sentences in the might be interested in financing the course; that’s Mr. Baran said that he had contacted Mr. Eisenach letter. (see, e.g, 11/19/96 Toner Tr. 34). all they did.’’ (Associated Press, AM cycle, (Sept. 2, at the time the letter was being prepared, but did 1993)). not recall the ‘‘nature of the contact.’’ (11/13/96 3.‘‘The initial work was done before we talked Baran Tr. 16). As also discussed above, Mr. Eisenach 87 Mr. Toner has been an associate attorney with with Kennesaw State College at GOPAC in organiz- recalled having a discussion with Mr. Baran at the Wiley, Rein and Fielding since September 1992, ex- ing our thoughts.’’ (The Hotline, American Political time the letter was being prepared, but about topics cept for a period during which we he worked with Network, Inc. (Sept. 7, 1993)). unrelated to the letter. (11/14/96 Eisenach Tr. 17–18). the Dole/Kemp campaign. (11/19/96 Toner Tr. 6). H222 CONGRESSIONAL RECORD — HOUSE January 21, 1997 After the letter was drafted, Mr. Baran source of funding for the projects and turned ments contained therein. A number of exhib- said that Mr. Baran and his associates then to a 501(c)(3) organization for that purpose. its attached to the complaint were fax trans- ‘‘would have sent a draft that they felt com- Once the projects had been established at the mittal sheets from GOPAC. While this did fortable with over to the Speaker’s office.’’ 501(c)(3) organizations, however, the same not on its face establish anything more than (11/13/96 Baran Tr. 28). Mr. Baran, Mr. Toner, people continued to manage it as had done so GOPAC’s fax machine having been used for and Mr. Mehlman each said during their tes- at GOPAC, the same message was used as the project, it certainly should have put the timony that they assumed that Mr. Gingrich when it was at GOPAC, and the dissemina- attorneys on notice that there was some re- or someone in his office reviewed the letter tion of the message was directed toward the lationship between the course and GOPAC for accuracy before it was submitted to the same goal as when the project was at that should have been examined before say- Committee. (11/19/96 Toner Tr. 16, 40, 44; 11/13/ GOPAC—building the Republican Party. The ing that GOPAC had absolutely no involve- 96 Baran Tr. 32–33, 37–38; Mehlman Tr. 41). only significant difference was that the ac- ment in the course. They, however, did not know whether Mr. tivity was funded by a 501(c)(3) organization. The lawyers said they relied on Mr. Ging- Gingrich or anyone in his office with knowl- This was not a situation where one entity rich and his staff to ensure that the letters edge of the facts at issue ever actually re- develops a message through a course or a tel- were accurate; however, none of Mr. Ging- viewed the letter prior to its submission to evision program for purely educational pur- rich’s staff had sufficient knowledge to be the Committee. (11/19/96 Toner Tr. 17, 40, 44; poses and then an entirely separate entity able to verify the accuracy of the facts. 11/13/96 Baran Tr. 37–38; Mehlman Tr. 41). independently decides to adopt that message While Mr. Gaylord and Mr. Eisenach did have With respect to Mr. Baran’s understanding for partisan, political purposes. Rather, this sufficient knowledge to verify many of the of whether Mr. Gingrich reviewed the letter, was a coordinated effort to have the 501(c)(3) facts, they were not asked to do so. The only the following exchange occurred: organization help in achieving a partisan, person who reviewed the letters for accu- Mr. Cole: Did you have any discussions political goal. In both instances the idea to racy, with sufficient knowledge to verify with Mr. Gingrich concerning this letter develop the message and disseminate it for those facts, was Mr. Gingrich. prior to it going to the committee? partisan, political use came first. The use of The Subcommittee considered the rel- Mr. Baran: I don’t recall any. I just wanted the 501(c)(3) came second as a source of fund- evance of the reference to GOPAC in Mr. to make sure that he did review it before it ing. Gingrich’s first letter to the Committee was submitted. This factual analysis was accepted by all Mr. Cole: How did you determine that he Members of the Subcommittee and the Spe- dated October 4, 1994. In that letter he stated had reviewed it? cial Counsel. However, there was a difference that GOPAC was one of the entities that paid Mr. Baran: I don’t recall today, but I would of opinion as to the result under 501(c)(3) people to work on the course. Some Members not file anything until I had been assured by when applying the law to these facts. Ms. of the Subcommittee believed that this was somebody that he had read it. Roady, the Subcommittee’s tax expert, was evidence of lack of intent to deceive the Mr. Cole: Would that assurance also have of the opinion that the facts presented a Committee on Mr. Gingrich’s part because if involved him reading it and not objecting to clear violation of 501(c)(3) because the evi- he had planned to hide GOPAC’s involve- any of the facts that are asserted in the let- dence showed that the activities were in- ment, he would not have made such an inter? tended to benefit Mr. Gingrich, GOPAC, and consistent statement in the subsequent let- Mr. Baran: I don’t know what his review other Republican candidates and entities. ters. Other Members of the Subcommittee process was regarding this letter. Mr. Holden, Mr. Gingrich’s tax attorney, dis- and the Special Counsel appreciated this agreed. He found that the course was non- point, but believed the first letter was of lit- * * * * * tle value. The statement in that letter was Mr. Cole: If he just read it, you may still partisan in its content, and even though he assumed that the motivation for disseminat- only directed to establishing that Mr. Ging- be awaiting comments from him. Would you rich had not used congressional resources in have made sure that he had read it and ap- ing it involved partisan, political goals, he did not find a sufficiently narrow targeting developing the course. The first letter made proved it, or just the fact that he read it is no attempt to address the tax issues, even all you would have been interested in, trying of the dissemination to conclude that it was a private benefit to anyone. though it was a prominent feature of the to make sure that we don’t blur that distinc- complaint. When the Committee specifically tion? Some Members of the Subcommittee and the Special Counsel agreed with Ms. Roady focused Mr. Gingrich’s attention on that Mr. Baran: No, I would have wanted him to issue and questions concerning GOPAC’s in- be comfortable with this on many levels. and concluded that there was a clear violation of 501(c)(3) with respect to AOW/ACTV volvement in the course, his response was Mr. Cole: And were you satisfied that he not accurate. was comfortable with it prior to filing it and Renewing American Civilization. Other with the committee? Members of the Subcommittee were troubled During his testimony before the Sub- Mr. Baran: Yes. by reaching this conclusion and believed committee, Mr. Gingrich stated that he did Mr. Cole: Do you know how you were satis- that the facts of this case presented a unique not intend to mislead the Committee and fied? situation that had not previously been ad- apologized for his conduct. This statement Mr. Baran: I can’t recall the basis upon dressed by the legal authorities. As such, was a relevant consideration for some Mem- which that happened. they did not feel comfortable supplanting bers of the Subcommittee, but not for oth- (11/13/96 Baran Tr. 32–33). the functions of the Internal Revenue Serv- ers. ice or the Tax Court in rendering a ruling on The Subcommittee concluded that because 4. BASES FOR STATEMENTS IN THE MARCH 27, 1995 what they believed to be an unsettled area of LETTER these inaccurate statements were provided the law. to the Committee, this matter was not re- With respect to the bases for the state- B. Statements Made to the Committee solved as expeditiously as it could have been. ments in the letter in general, Mr. Baran The letters Mr. Gingrich submitted to the This caused a controversy over the matter to said that it was largely based on the Decem- arise and last for a substantial period of ber 8, 1994 letter and any information he and Committee concerning the Renewing Amer- ican Civilization complaint were very trou- time, it disrupted the operations of the his associates relied on to prepare it. (11/13/96 House, and it cost the House a substantial Baran Tr. 37–38). bling to the Subcommittee. They contained definitive statements about facts that went amount of money in order to determine the IX. ANALYSIS AND CONCLUSION to the heart of the issues placed before the facts. A. Tax Issues Committee. In the case of the December 8, C. Statement of Alleged Violation In reviewing the evidence concerning both 1994 letter, it was in response to a direct re- the AOW/ACTV project and the Renewing quest from the Committee for specific infor- Based on the information described above, American Civilization project, certain pat- mation relating to the partisan, political na- the Special Counsel proposed a Statement of terns became apparent. In both instances, ture of the course and GOPAC’s involvement Alleged Violations (‘‘SAV’’) to the Sub- GOPAC had initiated the use of the messages in it. committee on December 12, 1996. The SAV as part of its political program to build a Re- Both letters were efforts by Mr. Gingrich contained three counts: (1) Mr. Gingrich’s ac- publican majority in Congress. In both in- to have the Committee dismiss the com- tivities on behalf of ALOF in regard to AOW/ stances there was an effort to have the mate- plaints without further inquiry. In such situ- ACTV, and the activities of others in that re- rial appear to be non-partisan on its face, yet ations, the Committee does and should place gard with his knowledge and approval, conserve as a partisan, political message for the great reliance on the statements of Mem- stituted a violation of ALOF’s status under purpose of building the Republican Party. bers. section 501(c)(3); (2) Mr. Gingrich’s activities Under the ‘‘methodology test’’ set out by The letters were prepared by Mr. Ging- on behalf of Kennesaw State College Founda- the Internal Revenue Service, both projects rich’s lawyers. After the Subcommittee de- tion, the Progress and Freedom Foundation, qualified as educational. However, they both posed the lawyers, the reasons for the state- and Reinhardt College in regard to the Re- had substantial partisan, political aspects. ments being in the letters was not made any newing American Civilization course, and Both were initiated as political projects and clearer. The lawyers did not conduct any the activities of others in that regard with both were motivated, at least in part, by po- independent factual research. Looking at the his knowledge and approval, constituted a litical goals. information the lawyers used to write the violation of those organizations’ status The other striking similarity is that, in letters, the Subcommittee was unable to find under section 501(c)(3); and (3) Mr. Gingrich both situations, GOPAC was in need of a new any factual basis for the inaccurate state- had provided information to the Committee, January 21, 1997 CONGRESSIONAL RECORD — HOUSE H223 directly or through counsel, that was mate- Gingrich did act intentionally, however it a single instance of reckless conduct. Rath- rial to matters under consideration by the would be difficult to establish that with a er, over a number of years and in a number Committee, which Mr. Gingrich knew or high degree of certainty. of situations, Mr. Gingrich showed a dis- should have known was inaccurate, incom- The culmination of the evidence on this regard and lack of respect for the standards plete, and unreliable. topic again left the Subcommittee with a of conduct that applied to his activities. 1. DELIBERATIONS ON THE TAX COUNTS disturbing choice. Either Mr. Gingrich inten- Under the Rules of the Committee, a rep- There was a difference of opinion regarding tionally made misrepresentations to the rimand is the appropriate sanction for a seri- whether to issue the SAV as drafted on the Committee, or he was again reckless in the ous violation of House Rules and a censure is tax counts. Concern was expressed about de- way he provided information to the Commit- appropriate for a more serious violation of ciding this tax issue in the context of an eth- tee concerning a very important matter. House Rules. Rule 20(g), Rules of the Com- ics proceeding. This led the discussion to the The standard applicable to the Sub- mittee on Standards of Official Conduct. It question of the appropriate focus for the committee’s deliberations was whether there was the opinion of the Subcommittee that Subcommittee. A consensus began to build is reason to believe that Mr. Gingrich had this matter fell somewhere in between. Ac- around the view that the proper focus was on acted as charged in this count of the SAV. cordingly, the Subcommittee and the Special the conduct of the Member, rather than a All felt that this standard had been met in Counsel recommend that the appropriate resolution of issues of tax law. From the be- regard to the allegation that Mr. Gingrich sanction should be a reprimand and a pay- ginning of the Preliminary Inquiry, there ‘‘knew’’ that the information he provided to ment reimbursing the House for some of the was a desire on the part of each of the Mem- the Committee was inaccurate. However, costs of the investigation in the amount of bers to find a way to reach a unanimous con- there was considerable discussion to the ef- $300,000. Mr. Gingrich has agreed that this is clusion in this matter. The Members felt it fect that if Mr. Gingrich wanted to admit to the appropriate sanction in this matter. was important to confirm the bipartisan na- submitting information to the Committee Beginning on December 15, 1996, Mr. Ging- ture of the ethics process. that he ‘‘should have known’’ was inac- rich’s counsel and the Special Counsel began The discussion turned to what steps Mr. curate, the Subcommittee would consider de- discussions directed toward resolving the Gingrich had taken in regard to these two leting the allegation that he knew the infor- matter without a disciplinary hearing. The projects to ensure they were done in accord mation was inaccurate. The Members were of discussions lasted through December 20, 1996. with the provisions of 501(c)(3). In particular, the opinion that if there were to be a final At that time an understanding was reached the Subcommittee was concerned with the adjudication of the matter, taking into ac- by both Mr. Gingrich and the Subcommittee fact that: (1) Mr. Gingrich had been ‘‘very count the higher standard of proof that is in- concerning this matter. That understanding well aware’’ of the American Campaign Acad- volved at that level, ‘‘should have known’’ was put on the record on December 21, 1996 emy case prior to embarking on these was an appropriate framing of the charge in by Mr. Cole follows: light of all the facts and circumstances. projects; (2) he had been involved with Mr. Cole: The subcommittee has had an op- 501(c)(3) organizations to a sufficient degree 3. DISCUSSIONS WITH MR. GINGRICH’S COUNSEL portunity to review the facts in this case, to know that politics and tax-deductible con- AND RECOMMENDED SANCTION and has had extensive discussion about the tributions are, as his tax counsel said, an On December 13, 1996, the Subcommittee appropriate resolution of this matter. ‘‘explosive mix;’’ (3) he was clearly involved issued an SAV charging Mr. Gingrich with Mr. Cardin: If I might just add here to your in a project that had significant partisan, po- three counts of violations of House Rules. next understanding, the Members of the sub- litical goals, and he had taken an aggressive Two counts concerned the failure to seek committee, prior to the adoption of the approach to the tax laws in regard to both legal advice in regard to the 501(c)(3) Statement of Alleged Violation, were con- AOW/ACTV; and (4) Renewing American Civ- projects, and one count concerned providing cerned that the nonpartisan deliberations of ilization projects. Even Mr. Gingrich’s own the Committee with information which he the subcommittee continue beyond the find- tax lawyer told the Subcommittee that if knew or should have known was inaccurate. ings of the subcommittee. Considering the Mr. Gingrich had come to him before em- At the time the Subcommittee voted this record of the full Ethics Committee in the barking on these projects, he would have ad- SAV, the Members discussed the matter 104th Congress and the partisan environment vised him to not use a 501(c)(3) organization among themselves and reached a consensus in the full House, the Members of the sub- for the dissemination of AOW/ACTV or Re- that it would be in the best interests of the committee felt that it was important to ex- newing American Civilization. Had Mr. Ging- House for the matter to be resolved without ercise bipartisan leadership beyond the rich sought and followed this advice, he going through a disciplinary hearing. It was workings of the subcommittee. * ** would not have used the 501(c)(3) organiza- estimated that such a hearing could take up Mr. Cole: It was the opinion of the Mem- tions, would not have had his projects sub- to three months to complete and would not bers of the subcommittee and the Special sidized by taxpayer funds, and would not begin for several months. Because of this, it Counsel, that based on the facts of this case have created this controversy that has was anticipated that the House would have as they are currently known, the appropriate caused significant disruption to the House. to deal with this matter for another six sanction for the conduct described in the The Subcommittee concluded that there months. Even though the Subcommittee original Statement of Alleged Violations is a were significant and substantial warning sig- Members felt that it would be advantageous reprimand and the payment of $300,000 to- nals to Mr. Gingrich that he should have to the House to avoid a disciplinary hearing, ward the cost of the preliminary inquiry. heeded prior to embarking on these projects. they all were committed to the proposition In light of this opinion, the subcommittee Despite these warnings, Mr. Gingrich did not that any resolution of the matter had to re- Members and the Special Counsel intend to seek any legal advice to ensure his conduct flect adequately the seriousness of the of- recommend to the full committee that this conformed with the provisions of 501(c)(3). fenses. To this end, the Subcommittee Mem- be the sanction recommended by the full In looking at this conduct in light of all bers discussed and agreed upon a rec- committee to the House. The Members also the facts and circumstances, the Sub- ommended sanction that was fair in light of intend to support this as the sanction in the committee was faced with a disturbing the conduct reflected in this matter, but ex- committee and on the Floor of the House. choice. Either Mr. Gingrich did not seek plicitly recognized that the full Committee However, if new facts are developed or legal advice because he was aware that it would make the ultimate decision as to the brought to the attention of the Members of would not have permitted him to use a recommendation to the full House as to the the subcommittee, they are free to change 501(c)(3) organization for his projects, or he appropriate sanction. In determining what their opinions. was reckless in not taking care that, as a the appropriate sanction should be in this The Subcommittee, through its counsel, Member of Congress, he made sure that his matter, the Subcommittee and Special Coun- has communicated this to Mr. Gingrich, conduct conformed with the law in an area sel considered the seriousness of the conduct, through his counsel. Mr. Gingrich has agreed where he had ample warning that his in- the level of care exercised by Mr. Gingrich, that if the subcommittee will amend the tended course of action was fraught with the disruption caused to the House by the Statement of Alleged Violations to be one legal peril. The Subcommittee decided that conduct, the cost to the House in having to count, instead of three counts, however, still regardless of the resolution of the 501(c)(3) pay for an extensive investigation, and the including all of the conduct described in the tax question, Mr. Gingrich’s conduct in this repetitive nature of the conduct. original Statement of Alleged Violations, regard was improper, did not reflect As is noted above, the Subcommittee was and will allow the addition of some language creditably on the House, and was deserving faced with troubling choices in each of the which reflects aspects of the record in this of sanction. areas covered by the Statement of Alleged matter concerning the involvement of Mr. 2. DELIBERATIONS CONCERNING THE LETTERS Violation. Either Mr. Gingrich’s conduct in Gingrich’s counsel in the preparation of the The Subcommittee’s deliberation concern- regard to the 501(c)(3) organizations and the letters described in the original Count 3 of ing the letters provided to the Committee letters he submitted to the Committee was the Statement of Alleged Violations,88 he centered on the question of whether Mr. intentional or it was reckless. Neither choice will admit to the entire Statement of Al- Gingrich intentionally submitted inaccurate reflects creditably on the House. While the leged Violation and agree to the view of the information. There was a belief that the Subcommittee was not able to reach a com- record developed before the Subcommittee fortable conclusion on these issues, the fact 88 These changes included the removal of the word was not conclusive on this point. The Special that the choice was presented is a factor in ‘‘knew’’ from the original Count 3, making the Counsel suggested that a good argument determining the appropriate sanction. In ad- charge read that Mr. Gingrich ‘‘should have known’’ could be made, based on the record, that Mr. dition, the violation does not represent only the information was inaccurate. H224 CONGRESSIONAL RECORD — HOUSE January 21, 1997 subcommittee Members and the Special of the agreement had occurred and retained useful to the IRS as part of its reported on- Counsel as to the appropriate sanction. the right to withdraw from the agreement going investigations of various 501(c)(3) orga- In light of Mr. Gingrich’s admission to the with appropriate notice to Mr. Gingrich. To nizations, the Subcommittee decided to rec- Statement of Alleged Violation, the sub- date no such notice has been given. ommend that the full Committee make committee is of the view that the rules of X. SUMMARY OF FACTS PERTAINING TO USE OF available to the IRS all relevant documents the committee will not require that an adju- UNOFFICIAL RESOURCES produced during the Preliminary Inquiry. It dicatory hearing take place; however, a sanc- The Subcommittee investigated allega- is the Committee’s recommendation that the tion hearing will need to be held under the tions that Mr. Gingrich had improperly uti- House Committee on Standards of Official rules. lized the services of Jane Fortson, an em- Conduct in the 105th Congress establish a li- The subcommittee and Mr. Gingrich desire ployee of the Progress in Freedom Founda- aison with the IRS to fulfill its recommenda- to have the sanction hearing concluded as tion (‘‘PFF’’), in violation of House Rule 45, tion and that this liaison be established in expeditiously as possible, but it is under- which prohibits the use of unofficial re- consultation with Mr. Cole. stood that this will not take place at the ex- sources for official purposes. A P P E N D I X pense of orderly procedure and a full and fair Ms. Fortson was an investment banker and opportunity for the full committee to be in- chair of the Atlanta Housing Project who SUMMARY OF LAW PERTAINING TO ORGANIZA- formed of any information necessary for had experience in urban and housing issues. TIONS EXEMPT FROM FEDERAL INCOME TAX each Member of the full committee to be In January 1995 she moved to Washington, UNDER SECTION 501(c)(3) OF THE INTERNAL able to make a decision at the sanction hear- D.C., from Atlanta to work on urban and REVENUE CODE ing. housing issues as a part-time PFF Senior A. Introduction After the subcommittee has voted a new Fellow and subsequently became a full-time Statement of Alleged Violation, Mr. Ging- PFF Senior Fellow in April, 1995. Section 501(a) of the Internal Revenue Code rich will file his answer admitting to it. The The Subcommittee determined that Mr. generally exempts from federal income tax- subcommittee will seek the permission of Gingrich sought Ms. Fortson’s advice on ation numerous types of organizations. the full committee to release the Statement urban and housing issues on an ongoing and Among these are section 501(c)(3) organiza- of Alleged Violation, Mr. Gingrich’s answer, meaningful basis. During an interview with tions which include corporations: Organized and a brief press release which has been ap- Mr. Cole, Mr. Gingrich stated that although and operated exclusively for religious, chari- proved by Mr. Gingrich’s counsel. At the he believed he lacked the authority to give table, scientific * * * or educational pur- same time, Mr. Gingrich will release a brief Ms. Fortson assignments, he often requested poses * * * no part of the net earnings of press release that has been approved by the her assistance in connection with urban is- which inures to the benefit of any private subcommittee’s Special Counsel. sues in general and issues pertaining to the shareholder or individual, no substantial Both the subcommittee and Mr. Gingrich District of Columbia in particular. The in- part of the activities of which is carrying on agree that no public comment should be vestigation further revealed that Ms. propaganda, or otherwise attempting, to in- made about this matter while it is still pend- Fortson appeared to have had unusual access fluence legislation, * * * and which does not ing. This includes having surrogates sent out to Mr. Gingrich’s official schedule and may participate in, or intervene in * * * any po- to comment on the matter and attempt to have occasionally influenced his official staff litical campaign on behalf of (or in opposi- mischaracterize it. in establishing his official schedule. tion to) any candidate for public office. Accordingly, beyond the press statements In her capacity as an unofficial policy ad- I.R.C. § 501(c)(3). Organizations described in described above, neither Mr. Gingrich nor visor to Mr. Gingrich, Ms. Fortson provided section 501(c)(3) are generally referred to as any Member of the subcommittee may make ongoing advice to Mr. Gingrich and members ‘‘charitable’’ organizations and contribu- any further public comment. Mr. Gingrich of Mr. Gingrich’s staff to assist Mr. Gingrich tions to such organizations are generally de- understands that if he violates this provi- in conducting official duties related to urban ductible to the donors. I.R.C. § 170(a)(1), sion, the subcommittee will have the option issues. Ms. Fortson frequently attended (c)(2). of reinstating the original Statement of Al- meetings with respect to the D.C. Task B. The Organizational Test and the Operational leged Violations and allowing Mr. Gingrich Force during which she met with Members of Test an opportunity to withdraw his answer. Congress, officials of the District of Colum- The requirement that a 501(c)(3) organiza- And I should note that it is the intention bia, and members of their staffs. Although tion be ‘‘organized and operated exclusively’’ of the subcommittee that ‘‘public com- Mr. Gingrich and principal members of his for an exempt purpose has given rise to an ments’’ refers to press statements; that, ob- staff advised the Subcommittee that they ‘‘organizational test’’ and an ‘‘operational viously, we are free and Mr. Gingrich is free perceived Ms. Fortson’s assistance as limited test.’’ Failure to meet either test will pre- to have private conversations with Members to providing information on an informal vent an organization from qualifying for ex- of Congress about these matters.89 basis, the Subcommittee discovered other emption under section 501(c)(3). Treas. Reg. After the Subcommittee voted to issue the occurrences which suggested that Mr. Ging- § 1.501(c)(3)–1(a); Levy Family Tribe Founda- substitute SAV, the Special Counsel called rich and members of his staff specifically so- tion v. Commissioner, 69 T.C. 615, 618 (1978). Mr. Gingrich’s counsel and read to him what licited Ms. Fortson’s views and assistance was put on the record concerning this mat- with respect to official matters. 1. ORGANIZATIONAL TEST ter. Mr. Gingrich’s counsel then delivered to The Subcommittee acknowledges that To satisfy the organizational test, an orga- the Subcommittee Mr. Gingrich’s answer ad- Members may properly solicit information nization must meet three sets of require- mitting to the Statement of Alleged Viola- from outside individuals and organizations, ments. First, its articles of organization tion. including nonprofit and for-profit organiza- must: (a) limit its purposes to one or more D. Post-December 21, 1996 Activity tions. Regardless of whether auxiliary serv- exempt purposes, and (b) not expressly per- Following the release of this Statement of ices are accepted from a nonprofit or for- mit substantial activities that do not further Alleged Violation, numerous press accounts profit organization, Members must exercise those exempt purposes. Treas. Reg. appeared concerning this matter. In the caution to limit the use of outside resources § 1.501(c)(3)–1(b)(1). Second, the articles must opinion of the Subcommittee Members and to ensure that the duties of official staff are not permit: (a) devoting more than an insub- the Special Counsel, a number of the press not improperly supplanted or supplemented. stantial part of its activities to lobbying, (b) accounts indicated that Mr. Gingrich had The Subcommittee notes that although Mr. any participation or intervention in the violated the agreement concerning state- Gingrich received two letters of reproval campaign of a candidate for public office, ments about the matter. Mr. Gingrich’s from the Committee on Standards regarding and (c) objectives and activities that would counsel was notified of the Subcommittee’s the use of outside resources, Ms. Fortson’s characterize it as an ‘‘action’’ organization. concerns and the Subcommittee met to con- activities ceased prior to the date the Com- Treas. Reg. § 1.501(c)(3)–1(b)(3). Third, the or- sider what action to take in light of this ap- mittee issued those letters to Mr. Gingrich. ganization’s assets must be dedicated to ex- parent violation. The Subcommittee deter- While the Subcommittee did not find that empt purposes. Treas. Reg. § 1.501(c)(3)– mined that it would not nullify the agree- Ms. Fortson’s individual activities violated 1(b)(4). The IRS determines compliance with ment. While there was serious concern about House Rules, the Subcommittee determined the organizational test solely by reference to whether Mr. Gingrich had complied with the that the regular, routine, and ongoing assist- an organization’s articles of organization. agreement, the Subcommittee was of the ance she provided Mr. Gingrich and his staff 2. OPERATIONAL TEST opinion that the best interests of the House over a ten-month period could create the ap- To satisfy the operational test, an organi- still lay in resolving the matter without a pearance of improper commingling of unoffi- zation must be operated ‘‘exclusively’’ for an disciplinary hearing and with the rec- cial and official resources. The Subcommit- exempt purpose. Though ‘‘exclusively’’ in ommended sanction that its Members had tee determined, however, that these activi- this context does not mean ‘‘solely,’’ the previously determined was appropriate. How- ties did not warrant inclusion as a Count in presence of a substantial nonexempt purpose ever, Mr. Gingrich’s counsel was informed the Statement of Alleged Violation. will cause an organization to fail the oper- that the Subcommittee believed a violation XI. AVAILABILITY OF DOCUMENTS TO INTERNAL ational test. Treas. Reg. § 1.501(c)(3)–1(c)(1); REVENUE SERVICE The Nationalist Movement v. Commissioner, 102 89 It was also agreed that in the private conversa- In light of the possibility that documents T.C. 558, 576 (1994). The presence of a single tions Mr. Gingrich was not to disclose the terms of which were produced to the Subcommittee non-exempt purpose, if substantial in nature, the agreement with the Subcommittee. during the Preliminary Inquiry might be will destroy the exemption regardless of the January 21, 1997 CONGRESSIONAL RECORD — HOUSE H225 number or importance of truly exempt pur- (b) [t]he instruction of the public on sub- understanding on the part of the intended poses. Better Business Bureau of Washington, jects useful to the individual and beneficial audience or readership because it does not D.C. v. United States, 326 U.S. 276, 283 (1945); to the community. consider their background or training in the Manning Association v. Commissioner, 93 T.C. Treas. Reg. § 1.501(c)(3)–1(d)(3)(i). The subject matter. 596, 611 (1989). Regulations continue: According to Rev. Proc. 86–43, the IRS uses To meet the operational test under section An organization may be educational even the methodology test in all situations where 501(c)(3) organization, the organization must though it advocates a particular position or the educational purpose of an organization satisfy the following requirements: 90 viewpoint so long as it presents a suffi- that advocates a viewpoint or position is in 1. The organization must be operated for ciently full and fair exposition of the perti- question. However, ‘‘[e]ven if the advocacy an exempt purpose, and must serve a public nent facts as to permit an individual or the undertaken by an organization is determined benefit, not a private benefit. Treas. Reg. public to form an independent opinion or to be educational under [the methodology § 1.501(c)(3)–1(d)(1)(ii). conclusion. On the other hand, an organiza- test], the organization must still meet all 2. It must not be an ‘‘action’’ organization. tion is not educational if its principal func- other requirements for exemption under sec- Treas. Reg. § 1.501(c)(3)–1(c)(3). An organization is the mere presentation of unsupported tion 501(c)(3) * * *’’ Rev. Proc. 86–43. That is, tion is an ‘‘action’’ organization if: opinion. organizations deemed to be ‘‘educational’’ a. it participates or intervenes in any po- Id. Guidance on the phrase ‘‘advocates a par- must also abide by the section 501(c)(3) pro- litical campaign (Treas. Reg. § 1.501(c)(3)– hibitions on: (a) private benefit, (b) partici- 1(c)(3)(iii)); ticular position or viewpoint’’ can be found in the preceding section in the Regulations pating or intervening in a political cam- b. a substantial part of its activities con- paign, (c) engaging in more than insubstan- sists of attempting to influence legislation pertaining to the definition of ‘‘charitable.’’ The fact that an organization, in carrying tial lobbying activities, and (d) private (Treas. Reg. § 1.501(c)(3)–1(c)(3)(ii)); or inurement. c. its primary objective may be attained: out its primary purpose, advocates social or only by legislation or defeat of proposed leg- civil changes or presents opinion on con- b. To Satisfy the Operational Test, an Organi- islation, and it advocates the attainment of troversial issues with the intention of mold- zation Must Not Violate the ‘‘Private Benefit’’ such primary objective (Treas. Reg. ing public opinion or creating public senti- Prohibition § 1.501(c)(3)–1(c)(3)(iv)). ment to an acceptance of its views does not preclude such organization from qualifying Section 501(c)(3) requires, inter alia, that 3. Its net earnings must not inure to the an organization be organized and operated benefit of any person in a position to influ- under section 501(c)(3) so long as it is not an ‘‘action’’ organization.* * * exclusively for one or more exempt purposes. ence the organization’s activities. Treas. Treas. Reg. 1.501(c)(3)–1(d)(1)(ii) provides that Reg. § 1.501(c)(3)–1(c)(2). Treas. Reg. § 1.501(c)(3)–1(d)(2). In applying the Regulations under section an organization does not meet this require- ‘‘[F]ailure to satisfy any of the [above] re- ment: quirements is fatal to [an organization’s] 501(c)(3) pertaining to educational organiza- unless it serves a public rather than a pri- qualification under section 501(c)(3).’’ Amer- tions, the IRS has stated that its goal is to ican Campaign Academy v. Commissioner, 92 eliminate or minimize the potential for any vate purpose. Thus, * * * it is necessary for T.C. 1053, 1062 (1989). public official to impose his or her pre- an organization to establish that it is not or- The application of these requirements, conceptions or beliefs in determining wheth- ganized or operated for the benefit of private moreover, is a factual exercise. Id. at 1064; er the particular viewpoint or position is interests such as designated individuals, the Christian Manner International v. Commis- educational. Rev. Proc. 86–43, 1986–2 C.B. 729. creator or his family, shareholders of the or- sioner, 71 T.C. 661, 668 (1979). Thus, in testing IRS policy is to ‘‘maintain a position of dis- ganization, or persons controlled, directly or compliance with the operational test, courts interested neutrality with respect to the be- indirectly, by such private interests. look ‘‘beyond the four corners of the organi- liefs advocated by an organization.’’ Id. The The ‘‘private benefit’’ prohibition serves to zation’s charter to discover ‘the actual ob- focus of the Regulations pertaining to edu- ensure that the public subsidies flowing from jects motivating the organization and the cational organizations and of the IRS’s ap- section 501(c)(3) status, including income tax subsequent conduct of the organization.’ ’’ plication of these Regulations ‘‘is not upon exemption and the ability to receive tax-de- American Campaign Academy, 92 T.C. at 1064 the viewpoint or position, but instead upon ductible charitable contributions, are re- (citing Taxation with Representation v. United the method used by the organization to com- served for organizations that are formed to States, 585 F.2d 1219, 1222 (4th Cir. 1978)); see municate its viewpoint or positions to oth- serve public and not private interests. Treas. also Sound Health Association v. Commissioner, ers.’’ Id. Reg. 1.501(c)(3)–1(c)(1) defines the application 71 T.C. 158, 184 (1978) (‘‘It is the purpose to- Two court decisions considered challenges of the private benefit prohibition in the con- ward which an organization’s activities are to the constitutionality of the definition of text of the operational test: directed that is ultimately dispositive of the ‘‘educational,’’ in the Regulations cited An organization will be regarded as ‘‘oper- above. One decision held that the definition organization’s right to be classified as a sec- ated exclusively’’ for one or more exempt was unconstitutionally vague. Big Mama tion 501(c)(3) organization.’’) purposes only if it engages primarily in ac- Rag, Inc. v. United States, 631 F.2d 1030 (D.C. ‘‘What an organization’s purposes are and tivities which accomplish one or more of Cir. 1980). In National Alliance v. United what purposes its activities support are such exempt purposes specified in section States, 710 F.2d 868 (D.C. Dir. 1983), the court questions of fact.’’ American Campaign Acad- 501(c)(3). An organization will not be so re- upheld the IRS’s position that the organiza- emy, 92 T.C. at 1064 (citing Christian Manner garded if more than an insubstantial part of tion in question was not educational. With- International v. Commissioner, 71 T.C. 661, 668 its activities is not in furtherance of an ex- out ruling on the constitutionality of the (1979)). Courts may ‘‘draw factual inferences’’ empt purpose. ‘‘methodology test’’ used by the IRS in that from the record when determining whether The Regulations and cases applying them organizations meet the requirements of the case to determine whether the organization was educational, the court found that the ap- make it clear that the private benefit test tax-exempt organization laws and regula- focuses on the purpose or purposes served by tions. Id. (citing National Association of Amer- plication of that test reduced the vagueness found in Big Mama Rag. The IRS later pub- an organization’s activities, and not on the ican Churches v. Commissioner, 82 T.C. 18, 20 nature of the activities themselves. See, e.g., (1984)). lished the methodology test in Rev. Proc. 86– 43 in order to clarify its position on how to B.S.W. Group, Inc. v. Commissioner, 70 T.C. 352 a. ‘‘Educational’’ Organizations May Qualify determine whether an organization is edu- (1978). Where an organization’s activities for Exemption Under Section 501(c)(3) cational when it advocates particular view- serve more than one purpose, each purpose As discussed above, an organization may points or positions. As set forth in the Reve- must be separately examined to determine qualify for exemption under section 501(c)(3) nue Procedure: whether it is private in nature and, if so, if it is ‘‘educational.’’ 91 The Regulations de- The presence of any of the following fac- whether it is more than insubstantial. Chris- fine the term ‘‘educational’’ as relating to: tors in the presentations made by an organi- tian Manner International v. Commissioner, 71 (a) [t]he instruction or training of the indi- zation is indicative that the method used by T.C. 661 (1979). vidual for the purpose of improving or devel- the organization to advocate its viewpoints The leading case on the application of the oping his capabilities; or or positions is not educational. private benefit prohibition in the context of (a) The presentation of viewpoints or posi- an organization whose activities served both tions unsupported by facts is a significant exempt and nonexempt purposes is Better 90 501(c)(3) organizations must also: (a) not be operated primarily to conduct an unrelated trade or portion of the organization’s communica- Business Bureau v. United States, 326 U.S. 279 business (Treas. Reg. § 1.501(c)(3)–1(e)(1)), and (b) not tions. (1945). Better Business Bureau was a non- violate ‘‘public policy.’’ See Bob Jones University v. (b) The facts that purport to support the profit organization formed to educate the United States, 461 U.S. 574 (1983) (educational organi- viewpoints or positions are distorted. public about fraudulent business practices, zation’s tax-exempt status denied because of its ra- (c) The organization’s presentations make to elevate business standards, and to educate cially discriminatory policies). substantial use of inflammatory and dispar- consumers to be intelligent buyers. The 91 An organization may also qualify for section aging terms and express conclusions more on Court did not question the exempt purpose of 501(c)(3) exemption if it is organized and operated for, e.g., ‘‘religious,’’ ‘‘charitable,’’ or ‘‘scientific’’ the basis of strong emotional feelings than of these activities. The Court found, however, purposes. The other methods by which an organiza- objective evaluations. that the organization was ‘‘animated’’ by the tion can qualify for exemption are not discussed in (d) The approach used in the organization’s purpose of promoting a profitable business this summary. presentations is not aimed at developing an community, and that such business purpose H226 CONGRESSIONAL RECORD — HOUSE January 21, 1997 was both nonexempt and more than insub- selected group of attorneys are the primary fit was incidental to the library’s ex- stantial. The Court denied exemption, stat- beneficiaries of the service. The referral empt purpose and a ‘‘logical by-product ing (in language that is cited in virtually all service is intended to benefit the public and of an educational process.’’ later private benefit cases), that: not to serve as a source of referrals. We find [I]n order to fall within the claimed ex- any nonexempt purpose served by the refer- Id. emption, an organization must be devoted to ral service and any occasional economic ben- Two other revenue rulings with similar educational purposes exclusively. This plain- efit flowing to individual attorneys through fact patterns are also helpful in understand- ly means that the presence of a single non- a referral incidental to the broad charitable ing the application of the ‘‘incidental bene- educational purpose, if substantial in nature, purpose served. fits’’ concept. In one ruling, the IRS ruled will destroy the exemption regardless of the that an organization that limited member- Id. at 926. ship to the residents of one city block did number or importance of truly educational Reiterating the proposition that ‘‘the prop- purposes. not qualify as a 501(c)(3) organization be- er focus is the purpose or purposes toward cause the organization’s members benefited Id. at 283. which the activities are directed,’’ the court directly, thus not incidentally, from the or- Many of the cases interpreting the private found that the purpose of the legal referral ganization’s activities. Rev. Rul. 75–286, 1975– benefit prohibition involve private benefits service was to benefit the public, that any 2 C.B. 210. In another, the IRS ruled that an that are provided in a commercial context— private benefit was broadly distributed, not organization dedicated to beautification of as in the Better Business Bureau case. Imper- conferred on any select group of attorneys an entire city qualified as a 501(c)(3) organi- missible private benefit, however, need not and incidental to the public purpose, and zation because benefits flowed to the city’s be financial in nature. Callaway Family Asso- that the organization qualified for exemp- entire population and were not targeted to ciation v. Commissioner, 71 T.C. 340 (1978), in- tion under section 501(c)(3). Id. at 923, 925–26 the organization’s members. Rev. Rul. 68–14, volved a family association formed as a non- (citing B.S.W. Group v. Commissioner, 70 T.C. 1968–1 C. B. 243. The benefits to the organiza- profit corporation to study immigration to 352, 356–57 (1978)). tion’s members of living in a cleaner city and migration within the United States by As the cases described above show, the de- were considered incidental. focusing on its own family history and gene- termination as to whether private benefit is The IRS issued a recent warning about the alogy. The organization’s activities included incidental (and therefore permissible) or importance of the private benefit prohibition researching the genealogy of Callaway fam- more than incidental (and therefore prohib- in Rev. Proc. 96–32, 1996–20 I.R.B. 14, a Reve- ily members in order to publish a family his- ited) is inherently factual, and each case nue Procedure issued for the purpose of es- tory. The organization argued that its pur- must be decided on its own facts and cir- tablishing standards as to whether organiza- poses were educational and intended to bene- cumstances. See also Manning Association v. tions that own and operate low income hous- fit the general public, asserting that its use Commissioner, 93 T.C. 596 (1989). The IRS has ing (an activity conducted by both nonprofit of a research methodology focusing on one issued several published and private rulings and for-profit organizations) may qualify for family’s development was a way of educating and general counsel memoranda 92 that fur- exemption under section 501(c)(3). After re- the public about the country’s history. ther explain the private benefit prohibition. viewing the substantive criteria that must In Callaway, the court noted (and the IRS For example, in Rev. Rul. 70–186, 1970–1 C.B. be present to establish that the organization conceded) that the organization’s activities 128, an organization was formed to preserve a is formed for a charitable purpose, the IRS served an educational purpose. The issue was lake as a public recreational facility and to added a final caution: not whether the organization had any ex- improve the lake water’s condition. Al- If an organization furthers a charitable empt purposes, but whether it also engaged though the organization’s activities bene- purpose such as relieving the poor and dis- in activities that furthered a nonexempt pur- fited the public at large, there were nec- tressed, it nevertheless may fail to qualify pose more than insubstantially. Agreeing essarily significant benefits to the individ- for exemption because private interests of with the IRS that ‘‘petitioner aimed its or- uals who owned lake-front property. The individuals with a financial stake in the ganizational drive at Callaway family mem- project are furthered. For example, the role bers, and appealed to them on the basis of IRS, however, determined that the private benefit to the lake-front property owners of a private developer or management com- their private interests,’’ the court concluded pany in the organization’s activities must be that the organization ‘‘engages in non- was incidental because: [t]he benefits to be derived from the organi- carefully scrutinized to ensure the absence of exempt activities serving a private interest, inurement or impermissible private benefit and these activities are not insubstantial.’’ zation’s activities flow principally to the general public through the maintenance and resulting from real property sales, develop- Id. at 343–44. Accordingly, the court held that ment fees, or management contracts. the organization did not qualify for exemp- improvement of public recreational facilities. Any private benefits derived by the Id. tion under section 501(c)(3). One of the most detailed explanations of lakefront property owners do not lessen the Kentucky Bar Foundation v. Commissioner, the private benefit prohibition is contained public benefits flowing from the organiza- 78 T.C. 921 (1982), is one of the relatively few in G.C.M. 39862 (Nov. 22, 1991), involving the tion’s operations. In fact, it would be impos- cases in which a court found private benefit permissibility of a hospital’s transaction sible for the organization to accomplish its to be insubstantial and therefore not to pre- with physicians. In the G.C.M., the IRS ex- purposes without providing benefits to the clude exemption under section 501(c)(3). The plained the prohibition as follows: lakefront property owners. Kentucky Bar Foundation was formed to Any private benefit arising from a particu- conduct a variety of activities recognized by Id. lar activity must be ‘‘incidental’’ in both a the IRS to serve exclusively educational pur- In Rev. Rul. 75–196, 1975–1 C.B. 155, the IRS qualitative and quantitative sense to the poses, including a continuing legal education ruled that a 501(c)(3) organization operating overall public benefit achieved by the activ- program and the operation of a public law li- a law library whose rules essentially limited ity if the organization is to remain exempt. brary. The IRS, however, asserted that the access and use to local bar association mem- To be qualitatively incidental, a private ben- Foundation’s operation of statewide lawyer bers conferred only incidental benefits to the efit must occur as a necessary concomitant referral service also served private purposes. bar association members. The library’s of the activity that benefits the public at Through the referral service, a person seek- availability only to a designated class of per- large; in other words, the benefit to the pub- ing a lawyer was referred to an attorney se- sons was not a bar to recognition of exemp- lic cannot be achieved without necessarily lected on a rotating basis within a convention because: benefiting private individuals. Such benefits ient geographic area. The fee for an initial [w]hat is of importance is that the class ben- might also be characterized as indirect or half-hour consultation was $10; any charge efited be broad enough to warrant a conclu- unintentional. To be quantitatively inciden- for further consultation or work had to be sion that the educational facility or activity tal, a benefit must be insubstantial when agreed upon by the attorney and the client. is serving a broad public interest rather than viewed in relation to the public benefit con- The court found that the purposes of the re- a private interest, and is therefore exclu- ferred by the activity. ferral service were to assist the general pub- sively educational in nature. lic in locating an attorney to provide a con- Id. The IRS also explained that the insubstan- sultation for a reasonable fee, to encourage Id. The library was available to a sig- tiality of the private benefit is measured lawyers to recognize the obligation to pro- nificant number of people, and the re- only in relationship to activity in which the vide legal services to the general public, and strictions on the library’s use were due private benefit is present, and not in relation to acquaint people in need of legal services to the limited size of its facilities. Al- to the organization’s overall activities: with the value of consultation with a lawyer though attorneys who used the library to identify and solve legal problems. might derive personal benefit in their It bears emphasis that, even though exemption of the entire organization may be at The IRS asserted that a purpose of the re- practice, the IRS ruled that this bene- ferral service was to benefit lawyers, par- stake, the private benefit conferred by an ac- ticularly to help young law school graduates tivity or arrangement is balanced only establish a practice, and that this was a sub- 92 Private letter rulings and general counsel against the public benefit conferred by that stantial nonexempt purpose. Based on a care- memoranda are made available to the public under activity or arrangement, not the overall section 6110 of the Code. These documents are based good accomplished by the organization. ful examination of the facts, however, the on the facts of particular cases, and may not be re- court found that: lied on as precedent. However, they provide useful Id. [t]he referral service is open to all respon- insights as to how the IRS interprets and applies the In G.C.M. 39862, the IRS balanced the pri- sible attorneys, and there is no evidence a law in particular factual situations. vate benefits to the physicians from the January 21, 1997 CONGRESSIONAL RECORD — HOUSE H227 transaction at issue with the public purposes court’s holding that the Academy was orga- they would do so. Absent an ability to con- served by that particular activity—and not nized for a non-exempt purpose. The IRS did trol the students’ employment, the Academy the public purposes served by the hospital as not argue, and the court did not hold, for ex- argued, it lacked the ability to confer sec- a whole. Finding the private purposes from ample, that individuals who are all members ondary benefits to Republican candidates the activity at issue to be more than inci- of the same political party are prohibited and entities. Id. at 1078. The Court found dental in relation to the public purposes, the from operating a 501(c)(3) organization, or that there was no authority for the propo- IRS determined that the hospital had jeop- that an organization may not receive an ex- sition that the organization must be able to ardized its exemption under section 501(c)(3). emption under section 501(c)(3) if a partisan control non-incidental benefits. Further- Although most of the cases and IRS rul- organization funds it. Rather, the Tax Court more, the Court reiterated that the record ings (both public and private) follow the gen- focused on the purpose behind ACA’s activi- supported the IRS’s determination that the eral analysis described above in determining ties. In determining this, it drew ‘‘factual in- Academy was formed ‘‘with a substantial whether or not private benefit is insubstan- ferences’’ from the record to discern that purpose to train campaign professionals for tial, a fairly recent Tax Court case, American purpose. Those inferences led to the court’s service in Republican entities and cam- Campaign Academy v. Commissioner, 92 T.C. conclusion that the Academy ‘‘targeted Re- paigns, an activity previously conducted by 1053 (1989) adopts a slightly different ap- publican entities and candidates to receive NRCC.’’ Id. According to the Court, accept- proach. In that case, the primary activity of the secondary benefit through employing its ing the Academy’s argument regarding its American Campaign Academy (‘‘ACA’’ or alumni * * *.’’ Id. at 1075. inability to control non-incidental benefits ‘‘the Academy’’) was the operation of a The Tax Court’s analysis distinguished be- would ‘‘cloud the focus of the operational school to train people to work in political tween ‘‘primary’’ private benefit and ‘‘sec- test, which probes to ascertain the purpose campaigns. The IRS denied ACA’s applica- ondary’’ private benefit, and made clear that towards which an organization’s activities tion for exemption under section 501(c)(3), the latter can be a bar to section 501(c)(3) are directed and not the nature of the activi- and ACA appealed the denial to the Tax qualification. In this case, the students re- ties themselves.’’ Id. at 1078–79 (citing B.S.W. Court. The Tax Court upheld the IRS’s de- ceived the primary private benefit of the Group v. Commissioner, 70 T.C. 352, 356–57 nial of ACA’s application for exemption be- Academy, and this benefit was permissible (1978)). The Court noted that had the record cause ACA’s activities conferred an imper- and consistent with the Academy’s edu- demonstrated that ‘‘the Academy’s activities missible private benefit on Republican can- cational purposes. The students’ ultimate were nonpartisan in nature and that its grad- didates and entities. employers, Republican candidates and enti- uates were not intended to primarily benefit The school operated by ACA was an ‘‘out- ties, received the secondary benefits of the Republicans,’’ the Court would have found growth’’ of programs the National Repub- Academy. ‘‘[W]here the training of individ- for the Academy. Id. at 1079. lican Congressional Committee (‘‘NRCC’’) uals is focused on furthering a particular The American Campaign Academy case fol- once sponsored to train candidates and to targeted private interest [e.g., Republican lows existing precedent. In reaching its deci- train campaign professionals for Republican candidates and entities], the conferred sec- sion, the court relies on Better Business Bu- campaigns. The Academy program, however, ondary benefit ceases to be incidental to the reau and Kentucky Bar Foundation, among differed from its NRCC predecessor in that it providing organization’s exempt purposes.’’ other cases, for the legal standards govern- limited its students to ‘‘campaign profes- Id. at 1074. ing the private benefit prohibition. The sionals.’’ Id. at 1056. Without discussion, the For the Academy to have prevailed, ac- court recognizes that the ACA’s activities IRS stated that the Academy did not train cording to the Tax Court, it needed to dem- were intended to serve multiple purposes, in- candidates, participate in any political cam- onstrate: (1) that the candidates and entities cluding the education of students (the per- paign or attempt to influence legislation. Id. who received the benefit of trained cam- missible primary benefit) and the provision at 1056–57. The Academy did not use training paigned workers possessed the characteris- of trained campaign professionals for can- materials developed by the NRCC, generally tics of a ‘‘charitable class,’’ 93 and (2) that it didates and entities (the secondary benefit). did not use NRCC faculty, and developed its did not distribute benefits among that class Finding the secondary benefit to be targeted own courses. Id. at 1057. Students were not in a select manner. Id. at 1076. The Academy to a select group—Republican candidates and explicitly required to be affiliated with any argued that Republican candidates and enti- entities—the court concludes that such bene- particular party, nor were they required to ties were ‘‘charitable’’ because the Repub- fit is more than incidental and therefore pre- take positions with partisan organizations lican party consists of millions of people cludes exemption under section 501(c)(3). upon graduation. Id. at 1058. with ‘‘like ‘political sympathies’ ’’ and their c. To Satisfy The Operational Test, An Organi- The Academy had a number of direct and activities benefited the community at large. zation Must Not Be An ‘‘Action’’ Organiza- indirect connections to Republican organiza- Id. The Court ruled, however, that size alone tion tions. The NRCC contributed furniture and does not transform a benefited class into a An organization is not operated exclu- computer hardware to the Academy. Id. at charitable class and that ACA had failed to sively for one or more exempt purposes if it 1056. One of the Academy’s three directors, demonstrate that political entities and can- is an ‘‘action’’ organization. Treas. Reg. Joseph Gaylord, was the Executive Director didates possessed the characteristics of a § 1.501(c)(3)–1(c)(3). Such an organization can- of the NRCC; another director, John McDon- charitable class. Id. At 1077. Moreover, the not qualify for exemption under section ald, was a member of the Republican Na- Tax Court held that even if political can- 501(c)(3). Treas. Reg. § 1.501(c)(3)–1(c)(3)(v). An tional Committee. Id. Jan Baran, General didates and entities could be found to con- organization is an action organization if: Counsel of the NRCC at the time of the stitute a ‘‘charitable class,’’ ACA’s benefits (i) It ‘‘participates or intervenes, directly Academy’s application to IRS, incorporated were distributed in a select manner to Re- or indirectly, in any political campaign on the Academy. Id. at 1070. The National Re- publican candidates and entities. Id. behalf of or in opposition to any candidate Finally, the Academy argued that al- publican Congressional Trust funded the for public office;’’ though it hoped that alumni would work in Academy. Id. The Academy curriculum in- (ii) a ‘‘substantial part’’ of its activities Republican organizations or for Republican cluded studies of the ‘‘Growth of NRCC, etc.’’ consists of ‘‘attempting to influence legisla- candidates, it had no control over whether and ‘‘Why are people Republicans,’’ but did tion by propaganda, or otherwise;’’ or not contain comparable studies pertaining to (iii) its primary objective may be attained the Democratic or other political parties. Id. 93 This part of the Tax Court’s analysis in American ‘‘only by legislation or a defeat of proposed at 1070–71. People on the admissions panel Campaign Academy has been criticized by a few com- legislation,’’ and ‘‘it advocates, or campaigns were affiliated with the Republican Party. mentators, who have disagreed with the court’s ap- for, the attainment’’ of such primary objec- plication of the ‘‘charitable class’’ doctrine in the Id. at 1071. Furthermore, while the appli- tive. cants were not required to declare a party af- context of an educational organization. See, e.g., Bruce R. Hopkins, Republican Campaign School filiation on their application, the political Treas. Reg. § 1.501(c)(3)–1(c)(3). Held Not Tax Exempt, The Nonprofit Counsel, July (i) If an Organization Participates in a Political references students were required to submit 1989, at 3; Laura B. Chisolm, Politics and Charity: A ‘‘often permit[ted] the admission panel to Proposal for Peaceful Coexistence, 58 Geo. Wash. L. Campaign, It is an Action Organization Not deduce the applicant’s political affiliation.’’ Rev. 308, 344 n.159 (1990). Entitled to Exemption Under Section Id. Finally, the Court found that all but one Typically an educational organization is expected 501(c)(3) of the Academy graduates who could be iden- to serve a broad class representative of the public Section 501(c)(3) provides that an organiza- tified as later serving in political positions interest, but not a ‘‘charitable class’’ per se. The tion is not entitled to exemption if it court’s consideration of the question as to whether ‘‘participate[s] in, or intervene[s] in (includ- ended up serving Republican candidates or political candidates and entities could constitute a Republican organizations. Id. at 1060, 1071, charitable class might be misplaced, but is not criti- ing the publishing or distributing of state- 1072. cal to its holding. As the court notes, ‘‘even were we ments) any political campaign on behalf of In light of these facts, the Tax Court to find political entities and candidates to generally (or in opposition to) any candidate for public upheld the IRS’s denial of the Academy’s ap- comprise a charitable class, petitioner would bear office.’’ The reason for this prohibition is plication for exemption under section the burden of proving that its activities benefited clear. Contributions to section 501(c)(3) orga- 501(c)(3) because the Academy ‘‘conducted its the members of the class in a nonselect manner.’’ nizations are deductible for federal income educational activities with the partisan ob- The court’s finding that such benefits were con- tax purposes, but contributions to can- ferred in a select manner—to Republican candidates jective of benefiting Republican candidates and entities—was the basis for its holding that the didates and political action committees and entities.’’ Id. at 1070. Any one of the organization served private purposes more than inci- (‘‘PACs’’) are not. The use of section 501(c)(3) facts listed in the previous paragraph did not dentally and, therefore, failed to qualify for exemp- organizations to support or oppose can- alone support the IRS’s finding or the tion under section 501(c)(3). didates or PACs would circumvent federal H228 CONGRESSIONAL RECORD — HOUSE January 21, 1997 tax law by enabling candidates or PACs to that ‘‘[t]he prohibition on political campaign there is a substantial body of authority con- attract tax-deductible contributions to fi- activities * * * reflect[s] congressional poli- cerning what section 501(c)(3) organizations nance their election activities. As the U.S. cies that the U.S. Treasury should be neutral can and cannot do, and many section Court of Appeals for the Tenth Circuit ex- in political affairs * * *.’’ H.R. Rep. No. 100– 501(c)(3) organizations have little difficulty plained, ‘‘[t]he limitations in Section 391, at 1625 (1987); see also S. Rep. No. 91–552, applying existing precedents to develop in- 501(c)(3) stem from the congressional policy at 46–49 (Tax Reform Act of 1969) (interpret- ternal guidelines for what activities are per- that the United States Treasury should be ing section 501(c)(3) to mean that ‘‘no degree missible and prohibited. For example, the Of- neutral in political affairs and that substan- of support for an individual’s candidacy for fice of General Counsel of the United States tial activities directed to attempts to * * * public office is permitted’’). Catholic Conference issued guidelines on po- affect a political campaign should not be The scope of the prohibition on political litical activities to Catholic organizations subsidized.’’ Christian Echoes National Min- campaign intervention has been the subject on February 14, 1996, in anticipation of the istry, Inc. v. United States, 470 F.2d 849, 854 of much discussion. While certain acts are 1996 election season.96 The guidelines outline (1972), cert. denied, 419 U.S. 1107 (1975) (empha- clearly proscribed, others may be permis- the parameters of permissible activity, in- sis in original). sible or prohibited, depending on the purpose cluding unbiased voter education, non- The prohibition on political campaign and effect of the activity. The regulations in- partisan get-out-the-vote drives, and non- intervention was added to the Internal Reve- terpreting the prohibition add little to the partisan public forums. They also describe nue Code as a floor amendment to the 1954 statutory definition: what activity is prohibited, including the en- Revenue Act offered by Senator Lyndon Activities which constitute participation dorsement of candidates, the distribution of Johnson, who believed that a section 501(c)(3) or intervention in a political campaign on campaign literature in support or opposition organization was being used to help finance behalf of or in opposition to a candidate in- to candidates, and the provision of financial the campaign of an opponent. In introducing clude, but are not limited to, the publication and in-kind support to candidates or PACs. the amendment, Senator Johnson said that or distribution of written or printed state- With respect to the latter, the guidelines it was to ‘‘deny[] tax-exempt status to not ments or the making of oral statements on state flatly that: only those people who influence legislation behalf of or in opposition to such a can- [A] Catholic organization may not provide but also to those who intervene in any politi- didate. financial support to any candidate, PAC, or cal campaign on behalf of any candidate for Treas. Reg. § 1.501(c)(3)–1(c)(3)(iii). Under this political party. Likewise, it may not provide any public office.’’ 100 Cong. Rec. 9604 (1954) provision, a section 501(c)(3) organization is or solicit in-kind support, such as free or se- (discussed in Bruce R. Hopkins, ‘‘The Law of prohibited from making a written or oral en- lective use of volunteers, paid staff, facili- Tax-Exempt Organizations,’’ 327 (6th ed. dorsement of a candidate and from distribut- ties, equipment, mailing lists, etc. 1992)). No congressional hearing was held on ing partisan campaign literature. IRS CPE ‘‘Political Activity Guidelines for Catholic the subject and the conference report did not Manual at 410. Following the enactment of Organizations’’ (United States Catholic Con- contain any analysis of the provision. Judith section 527 of the Code in 1974 (governing the ference, Office of the General Counsel, Wash- E. Kindell and John F. Reilly, ‘‘Election federal tax treatment of PACs), the prohibi- ington, D.C.), Feb. 14, 1996, reprinted in Paul Year Issues,’’ 1993 Exempt Organizations tion also prevents section 501(c)(3) organiza- Streckfus’ EO Tax Journal, November 1996 at Continuing Professional Education Tech- tions from establishing or supporting a PAC. 35, 42. nical Instruction Program 400, 401 (herein- IRS CPE Manual at 437. (The application of The generally accepted aspects of the cam- 94 after ‘‘IRS CPE Manual’’). the prohibition in this context is discussed paign intervention prohibition, as well as Although the prohibition on political cam- further below.) some areas of uncertainty, are discussed paign intervention was not formally added to It is clear, however, that section 501(c)(3) below. section 501(c)(3) until 1954, the concept that organizations also may violate the prohibi- (a) The Prohibition Is ‘‘Absolute’’ charities should not participate in political tion by engaging in activity that falls short campaigns was not new. As the Second Cir- The prohibition on political campaign of a direct endorsement, and even may—on intervention or participation is ‘‘absolute.’’ cuit noted, ‘‘[t]his provision merely ex- its face—appear neutral, if the purpose or ef- pressly stated what had always been under- IRS CPE Manual at 416. Unlike the prohibi- fect of the activity is to support or oppose a tion on lobbying, there is no requirement stood to be the law. Political campaigns did candidate. The IRS CPE Manual describes a not fit within any of the specified purposes that political campaign participation or variety of situations in which section intervention be substantial. New York Bar, listed in [Section 501(c)(3)].’’ The Association 501(c)(3) organizations may violate the prohi- of the Bar of the City of New York v. Commis- 858 F.2d at 881. It is, therefore, irrelevant bition without engaging in a direct can- that the majority, or even all but a small sioner, 858 F.2d 876, 879 (2d Cir. 1988) (herein- didate endorsement, including inviting a after ‘‘New York Bar’’) (quoting 9 Mertens, portion, of an organization’s activities particular candidate to make an appearance would, by themselves, support exemption Law of Federal Income Taxation § 34.05 at 22 at an organization event, holding candidate 95 under section 501(c)(3). United States v. (1983)). Furthermore, congressional con- forums or distributing voter guides which cerns that the government not subsidize po- Dykema, 666 F.2d 1096, 1101 (7th Cir. 1981); see evidence a bias for or against a candidate, also G.C.M. 39694 (Jan. 22, 1988) (‘‘An organi- litical activity have existed since at least and similar activities that may support or the time when Judge Learned Hand wrote zation described in section 501(c)(3) is pre- oppose a particular candidate. IRS CPE Man- cluded from engaging in any political cam- ‘‘[p]olitical agitation * * * however innocent ual at 419–424, 430–432. In a recent election the aim * * * must be conducted without paign activities’’) and P.L.R. 9609007 (Dec. 6, year news release, the IRS reminded 501(c)(3) 1995). (‘‘For purposes of section 501(c)(3), public subvention * * *.’’ Slee v. Commis- organizations of the breadth of the prohibi- sioner, 42 F.2d 184, 185 (2d Cir. 1930), quoted in intervention in a political campaign may be tion, stating not only that they cannot en- subtle or blatant. It may seem to be justified New York Bar, 858 F.2d at 879. dorse candidates or distribute statements in In 1987, Congress amended section 501(c)(3) by the press of events. It may even be inad- support of or opposition to candidates, but to clarify that the prohibition on political vertent. The law prohibits all forms of par- also that they cannot ‘‘become involved in campaign activity applied to activities in op- ticipation or intervention in ‘any’ political any other activities that may be beneficial 97 position to, as well as on behalf of, any can- campaign.’’) or detrimental to any candidate.’’ IRS News didate for public office. Omnibus Budget Release IR–96–23 (Apr. 24, 1996). 96 Reconciliation Act, Pub. L. No. 100–203, While it is easy for the IRS to determine Some churches assert that they have a First Amendment right to participate in political cam- § 10711, 101 Stat. 1330, 1330–464 (1987). The whether the prohibition on political cam- House Report accompanying the bill stated paign activities where doing so furthers their reli- paign intervention has been violated when a gious beliefs. However, courts have ruled that tax section 501(c)(3) organization endorses a can- exemption is a privilege and not a right, and that 94 The 1993 Exempt Organizations Continuing Pro- didate or distributes partisan campaign lit- section 501(c)(3) does not prohibit churches from par- fessional Education (CPE) Technical Instruction erature, it is more difficult to determine ticipating in political campaigns but merely pro- Program text was prepared by the IRS Exempt Orga- whether there is a violation if the activity at vides that they will not be entitled to tax exemption nizations Division for internal training purposes. issue is not blatant or serves a nonpolitical if they do so. See, e.g., Christian Echoes National Min- 95 Indeed, under the common law of charitable istry, Inc. v. United States, 470 F.2d 849 (10th Cir. 1972). trusts—the genesis of modern day section 501(c)(3)— purpose as well. The IRS relies on a ‘‘facts 97 See also G.C.M. 38137 (Oct. 22, 1979): [T]he prohi- it was recognized that ‘‘a trust to promote the suc- and circumstances’’ test in analyzing ambig- bition on political activity makes no reference to cess of a particular political party is not chari- uous behavior to determine whether there the intent of the organization. An organization can table,’’ for the reason that ‘‘there is no social inter- has been a violation. According to the IRS: violate the proscription even if it acts for reasons est in the underwriting of one or another of the po- [i]n situations where there is no explicit en- other than intervening in a political campaign. For litical parties.’’ Restatement (Second) of Trusts § 374 example, an organization that hires a political can- (1959). The continued importance of the common law dorsement or partisan activity, there is no didate to do commercials for its charity drive and doctrine of ‘‘charitability’’ to the standards for ex- bright-line test for determining if the IRC runs the commercials frequently during the political emption under section 501(c)(3) is reflected in the 501(c)(3) organization participated or inter- campaign may have no interest in supporting the Supreme Court decision in Bob Jones University v. vened in a political campaign. Instead, all candidate’s campaign. Nevertheless, its action United States, 461 U.S. 574 (1983), in which the Su- the facts and circumstances must be consid- would constitute, at least, indirect intervention or preme Court denied exemption to a private univer- ered. support of the political campaign. sity that practiced racial discrimination, on the However, the same G.C.M. goes on to say: ground that racial discrimination was contrary to IRS CPE Manual at 410. We do not mean to imply that every activity that public policy and therefore inconsistent with the Despite the lack of bright-line standards has an effect on a political campaign is prohibited common law standards for charitability. concerning all aspects of the prohibition, political activity. We recognize that organizations January 21, 1997 CONGRESSIONAL RECORD — HOUSE H229 Although the prohibition on political cam- Id. The IRS found that the organization vio- That is, it is not necessary to advocate the paign intervention under section 501(c)(3) is lated the political campaign intervention election or defeat of a clearly identified can- absolute, Congress recognized that the sanc- prohibition and imposed an excise tax on the didate to violate the prohibition. IRS CPE tion of loss of tax exemption could, in some organization under section 4955; it did not, Manual at 412–13. cases, be disproportionate to the violation. however, propose revocation of the organiza- Moreover, an organization may violate the In 1987, Congress added section 4955 to the tion’s exemption under section 501(c)(3). prohibition even if it does not identify a can- Code, which imposes excise tax penalties on (b) Section 501(c)(3) Organizations May Not didate by name. The IRS has stated that section 501(c)(3) organizations that make Establish or Support a PAC ‘‘issue advocacy’’ may serve as ‘‘the oppor- ‘‘political expenditures’’ in violation of the tunity to intervene in a political campaign Although organizations exempt from tax prohibition, as well as organization man- in a rather surreptitious manner’’ if a label under some categories of section 501(c) are agers who knowingly approve such expendi- or other coded language is used as a sub- tures. The legislative history provides that permitted to establish or support PACs,99 those exempt under section 501(c)(3) are not. stitute for a reference to identifiable can- the enactment of section 4955 was not in- didates. Id. at 411. tended to modify the absolute prohibition of When section 527 (governing the tax treat- section 501(c)(3), but to provide an alter- ment of PACs) was added to the Code in 1974, The concern is that an IRC 501(c)(3) organiza- native remedy that could be used by the IRS the legislative history provided that ‘‘this tion may support or oppose a particular can- in cases where the penalty of revocation provision is not intended to affect in any didate in a political campaign without spe- seems disproportionate to the violation: way the prohibition against certain exempt cifically naming the candidate by using code organizations (e.g., sec. 501(c)(3)) engaging in words to substitute for the candidate’s name i.e., where the expenditure was unintentional in its messages, such as ‘‘conservative,’’ ‘‘lib- and involved only a small amount and where ‘electioneering’ * * *’’ S. Rep. No. 93–1357 (1974), reprinted in 1975–1 C.B. 517, 534. The eral,’’ ‘‘pro-life,’’ ‘‘pro-choice,’’ ‘‘anti- the organization subsequently has adopted choice,’’ ‘‘Republican,’’ ‘‘Democrat,’’ etc., procedures to assure that similar expendi- regulations under section 527 reflect this coupled with a discussion of the candidacy or tures would not be made in the future. congressional intent: Section 527(f) and this section do not sanc- the election. When this occurs, it is quite H.R. Rep. No. 100–391, at 1623–24 (1987). tion the intervention in any political cam- evident what is happening—an intervention The legislative history also provides that paign by an organization described in section is taking place. the excise tax may be imposed in cases in- 501(c) if such activity is inconsistent with its Id. 411–412. Furthermore: volving significant, uncorrected violations of exempt status under section 501(c). For ex- [a] finding of political campaign interven- the prohibition, where revocation alone may tion from the use of coded words is consist- be ineffective because the organization has ample, an organization described in section ent with the concept of ‘‘candidate’’—the ceased operations after diverting its assets 501(c)(3) is precluded from engaging in any words are not tantamount to advocating sup- to an improper purpose. In these cases, the political campaign activities. The fact that port for or opposition to an entire political excise tax penalty on organization managers section 527 imposes a tax on the exempt may be the only effective way to penalize the function income (as defined in section 1.527– party, such as ‘‘Republican,’’ or a vague and violation. Id. at 1624–25. 2(c)) expenditures of section 501(c) organiza- unidentifiably large group of candidates, The IRS has shown an inclination to im- tions and permits such organizations to es- such as ‘‘conservative’’ because the sender of pose the excise tax under section 4955 in lieu tablish separate segregated funds to engage the message does not intend the recipient to of revocation of exemption in cases where in campaign activities does not sanction the interpret them that way. Code words, in this the violation appears to be minor in relation participation in these activities by section context, are used with the intent of conjur- to the organization’s other exempt purpose 501(c)(3) organizations. ing favorable or unfavorable images—they activities.98 For example, P.L.R. 9609007 (Dec. Treas. Reg. § 1.527–6(g). have pejorative or commendatory connota- 6, 1995) involved a section 501(c)(3) organiza- Since the enactment of section 527 in 1974, tions. tion that sent out a fundraising letter link- it has been clear that a section 501(c)(3) orga- Id. at 412 n. 6. ing the organization to issues raised in the nization will violate the prohibition on polit- (d) Educational Activities May Constitute particular campaigns. The IRS concluded ical campaign intervention by providing fi- Participation or Intervention that the letters evidenced a bias for one can- nancial or nonfinancial support for a PAC. As discussed above, the IRS considers ac- didate over the other. The organization IRS CPE Manual at 438–40. While the use of tivities that satisfy the ‘‘methodology test’’ sought to defend itself by saying only a few a section 501(c)(3)’s facilities, personnel, or of the letters were sent to the states whose to be ‘‘educational.’’ Just as educational ac- other financial resources for the benefit of a tivities may result in impermissible private elections were mentioned in the letters. The PAC is impermissible, the prohibition does IRS rejected this defense, stating that: benefit, however, so too may they violate the not stop there. In its CPE Manual, the IRS prohibition on political campaign interven- [I]t is common knowledge that in recent also noted that ‘‘[a]n IRC 501(c)(3) organization. The IRS takes the position that times the primary source of a candidate’s tion’s resources include intangible assets, ‘‘[a]ctivities that meet the methodology test support in such elections is often derived such as its goodwill, that may not be used to * * * may nevertheless constitute participa- from out-of-state sources. Although a par- support the political campaign activities of tion or intervention in a political cam- ticular reader may not have been eligible to another organization.’’ Id. at 440. Some lead- paign.’’ IRS CPE Manual at 415. actually vote for the described candidate, he ing practitioners have interpreted this provi- New York Bar, 858 F.2d 876 (2d Cir. 1988), re- or she could have been charged by [the orga- sion to prohibit a charity from allowing its ferred to above, is the leading case on point. nization], in our view, to participate in the name to be used by a PAC, even if the char- In that case, a bar association published rat- candidate’s campaign through direct mone- ity provides no financial support or assist- ings of judicial candidates. The ratings were tary or in-kind support, volunteerism, mold- ance; by allowing a PAC to use its name, the distributed to bar members and law libraries. ing of public opinion, or the like. charity implies to its employees and to the The Association also issued press releases republic that it endorses the activity of the garding its ratings, but did not conduct pub- may inadvertently support political candidates. In PAC. See Gregory L. Colvin et al., Com- licity campaigns to announce its ratings. Id. these instances the organizations have not ‘‘inter- mentary on Internal Revenue Service 1993 Ex- at 877. The Second Circuit held that al- vened’’ or ‘‘participated’’ in political campaigns. A empt Organizations Continuing Professional though the Association’s publications were hospital that provides emergency health care for a Education Technical Instruction Program Arti- educational, the distribution of the publica- candidate acts on behalf of the candidate during the cle on ‘‘Election Year Issues,’’ 11 Exempt Org. tions constituted prohibited campaign inter- election, but only inadvertently supports his cam- Tax Rev. 854, 871 (1995) [hereinafter ‘‘EO paign. vention. By disseminating the educational 98 Prior to the enactment of section 4955 in 1987, Comments’’]. publications with the hope that they would the IRS was reluctant to impose revocation in cases (c) ‘‘Express Advocacy’’ is Not Required, and ‘‘ ‘ensure’ that candidates whom [the Asso- where the violation was not blatant and the organi- Issue Advocacy is Prohibited if Used to ciation] consider[ed] to be ‘legally and pro- zation had a record of otherwise charitable activi- Convey Support for or Opposition to a fessionally unqualified’ ’’ would not be elect- ties. For example, P.L.R. 8936002 (May 24, 1989) in- Candidate ed, the court held that the Association ‘‘indi- volved a section 501(c)(3) organization that engaged in voter education and issue advocacy relating to An organization does not need to violate rectly’’ participated in a political campaign the 1984 Presidential election. Describing the case as the ‘‘express advocacy’’ standard applied on behalf of or in opposition to a candidate ‘‘a very close call,’’ the IRS ‘‘reluctantly’’ concluded under federal election law for it to violate for public office. Id. at 881. that the organization’s voter education activities the political campaign prohibition of section An implication of the holding in New York did not constitute prohibited political campaign 501(c)(3).100 T.A.M. 8936002 (May 24, 1989). Bar is that one must consider not only intervention, despite the use of ‘‘code words’’ that whether the activity itself, e.g., publishing could be viewed as evidencing support for a particular candidate. 99 For example, section 501(c)(4) and (6) organiza- The IRS appeared unwilling to seek revocation tions are permitted to establish and/or support to contributions ‘‘to reach only funds used for com- with respect to the organization, probably because PACs. If these exempt organizations provide support munications that expressly advocate the election or of its history of legitimate educational activities. for PACs, they are subject to tax, under section 527, defeat of a clearly identified candidate.’’ See IRS Had section 4955 been in effect when the activity on the lesser of their net investment income or their CPE Manual at 412 (quoting Buckley v. Valeo, 424 took place, the IRS would have had another enforce- ‘‘exempt function’’ income. U.S. 1, 77 (1976)). Examples of ‘‘express advocacy’’ in- ment alternative: it could have imposed excise tax 100 The FEC’s ‘‘express advocacy’’ standard came clude ‘‘vote for,’’ ‘‘elect,’’ and ‘‘Smith for Congress’’ penalties on the organization’s expenditures for the into being because the Supreme Court held a provi- or ‘‘vote against,’’ ‘‘defeat,’’ and ‘‘reject.’’ Id. at 413 activities it found so troublesome. sion of the Federal Elections Campaign act relating (referring to 11 C.F.R. § 109.1(b)(2)). H230 CONGRESSIONAL RECORD — HOUSE January 21, 1997 educational materials such as candidate rat- theless held that they constituted participa- * * * Intervention at this early stage in the ings, violates the political campaign prohibition in a political campaign. As noted by the elective process in order to influence politi- tion, but also whether the intended con- IRS in its CPE Manual, the court in New cal parties to nominate such candidates is, sequences of the activity violates the prohi- York Bar ‘‘made the rather wry observation we believe, sufficient to constitute interven- bition.101 The need to consider the con- [that] [a] candidate who receives a ‘not tion in a political campaign. sequences of an otherwise educational activ- qualified’ rating will derive little comfort Id. The IRS went on to say: ity is clear from a review of several IRS rul- from the fact that the rating may have been ings finding that an organization violated made in a nonpartisan manner.’’ IRS CPE In its discussion of the Tax Court opinion [in the prohibition by disseminating material Manual at 416. Similarly, in G.C.M. 35902 New York Bar], the [Second Circuit] observed that was deemed educational, but nonethe- (July 15, 1974), the IRS stated: that the ratings of candidates were ‘‘pub- less affected voter preferences in violation of lished with the hope that they will have an The provision in the Code prohibiting par- impact on the voter.’’ The effort, and not the the prohibition. ticipation or intervention in ‘‘any political For example, in Rev. Rul. 67–71, 1967–1 C.B. effect, constituted intervention in a political campaign’’ might conceivably be interpreted campaign. Therefore, whether anyone heeded 125, the IRS ruled that a 501(c)(3) organiza- to refer only to participation or intervention tion created to improve the public edu- the call to run for precinct committee, with a partisan motive; but the provision whether that individual was elected, and if cational system by engaging in campaigns does not say this. It seems more reasonable on behalf of candidates for school board was so, what he or she subsequently did are all to construe it as referring to any statements immaterial. not exempt. Every four years, when the made in direct relation to a political cam- school board was to be elected, the organiza- Id. paign which affect voter acceptance or rejec- In G.C.M. 39811, the IRS did not contend tion considered the qualification of the can- tion of a candidate * * * didates and selected those it thought most that the organization’s urging of members to qualified. The organization then ‘‘engage[d] (f) The IRS Has Found Violations of the Pro- run for office alone constituted the viola- in a campaign on their behalf by publicly an- hibition on Political Campaign Participa- tion. Rather, the organization’s ‘‘long-term nouncing its slate of candidates and by pub- tion When an Activity Could Affect or strategy’’ of seeking to influence the politi- lishing and distributing a complete biog- Was Intended to Affect Voters’ Pref- cal parties’ nomination of candidates by hav- raphy of each.’’ Id. Although the selection erences ing its members elected to office, and its process ‘‘may have been completely objec- As discussed above, the courts and the IRS urging of members to run for office so as to tive and unbiased and was intended pri- have found prohibited political campaign carry out that strategy, were sufficient to marily to educate and inform the public intervention when the activity in question, support a finding of impermissible campaign about the candidates,’’ the IRS nonetheless although educational, affected or could rea- participation, despite the fact that the effort ruled it to be intervention or participation sonably be expected to affect voter pref- was not successful. in a political campaign. Id. erences, even where the organization’s mo- Other cases and rulings have also looked to In Rev. Rul. 76–456, 1976–2 C.B. 151, the IRS tives in undertaking the activity were non- an organization’s intent as an important ele- ruled that an organization formed for the partisan. G.C.M. 35902 is to similar effect. In ment of a finding of prohibited participation purpose of elevating the morals and ethics of that case, the IRS held that a public broad- or intervention. In 1972, a court held that an political campaigning was nevertheless in- casting station’s nonpartisan educational organization violated the participation or tervening in a political campaign when it so- motivation was irrelevant in determining intervention prohibition when it ‘‘used its licited candidates to sign a code of fair cam- whether its provision of free air time to can- publications and broadcasts to attack can- paign practices and released the names of didates for elective office was permissible didates and incumbents who were considered those candidates who signed and those can- under section 501(c)(3). The IRS found that too liberal.’’ Christian Echoes National Min- didates who refused to sign. The IRS stated the station’s procedures for providing air istry, Inc. v. United States, 470 F.2d 849, 856 that this was done to educate citizens about time, including an equal time doctrine for (10th Cir. 1972). The court did not discuss the election process and so that they could all candidates and an on-air disclaimer of whether the activities actually influenced ‘‘participate more effectively in their selec- support for any particular candidate, were voters or were reasonably likely to do so. tion of government officials.’’ Id. at 152. sufficient to ensure that the activity would Rather, it concluded that the organization’s Nonetheless, such activity, although edu- not constitute an impermissible political ‘‘attempts to elect or defeat certain political cational, ‘‘may result * * * in influencing campaign intervention. The fact that the leaders reflected [the organization’s] objec- voter opinion’’ and thus constituted a pro- station’s motivation was to educate the pub- tive to change the composition of the federal hibited participation or intervention in a po- lic and not to influence an election, however, government.’’ Id. litical campaign. Id. was deemed to be irrelevant. The IRS also found an organization’s in- The cases and rulings cited above make it tent relevant in P.L.R. 9117001 (Sept. 5, 1990). (e) Nonpartisan Activities May Constitute clear that simply having an educational or As described in that ruling, an organization Prohibited Political Campaign Participa- nonpartisan motive for engaging in prohib- mailed out material indicating that it was tion ited political activity is not a defense to a intending to help educate conservatives on The IRS takes the position that the non- finding of violation. The relevance and irrel- the importance of voting in the 1984 general partisan motivation for an organization’s ac- evance of motive is sometimes misstated, election. According to facts stated in the rul- tivities is ‘‘irrelevant when determining however. While the absence of an improper ing letter, the material contained language whether the political campaign prohibition’’ political motivation is irrelevant, evidence ‘‘intended’’ to induce conservative voters to has been violated. IRS CPE Manual at 415. showing the existence of a political motiva- vote for President Reagan, even though his As support for this position, the IRS cites tion is relevant and one of the facts and cir- name was not included in the materials. The Rev. Rul. 76–456 and New York Bar, both of cumstances that the IRS will consider in de- IRS thus concluded that ‘‘the material was which are discussed above. In those cases, termining whether there is a violation. In- targeted to influence a segment of voters to the court or the IRS found that the activi- deed, the IRS has found the existence of evi- vote for President Reagan.’’ Id. ties in question were nonpartisan, but never- dence showing an intent to participate in a Based on the above, the IRS position is political campaign to be sufficient to sup- that an organization can violate the political 101 See also T.A.M. 9635003 (Apr. 19, 1996). T.A.M. port a finding of violation, despite the lack campaign prohibition by either: (a) conduct- 9635003 involved a section 501(c)(3) organization that of evidence that the activity achieved the in- ing activities that could have the effect of conducted ‘‘citizens’ juries,’’ a form of voter edu- tended results. influencing voter acceptance or rejection of cation in which a cross-section of citizens are se- For example, in G.C.M. 39811 (Feb. 9, 1990), a candidate or group of candidates (the ‘‘ef- lected to determine which issues are most relevant a religious organization encouraged its mem- fect’’ standard), or (b) engaging in activities in the context of a particular campaign, to hear bers to seek election to positions as precinct that are intended to influence voter accept- presentations by candidates on those issues, and to committee-persons in the Republican or rate the candidates’ positions on the issues. The sec- ance or rejection of a candidate or group of tion 501(c)(3) organization disseminated the citizen Democratic Party structures. Although none candidates, whether they do so or not (the jury’s report, including the candidate ratings. In its of the organization’s members actually ran ‘‘effort’’ standard). Most of the uncertainty dissemination, the organization made it clear that for such positions, the IRS found that urging over the scope of the prohibition on political it did not support or oppose any candidate, and that its members to become involved in the local campaign intervention relates to the ‘‘ef- the views expressed were those of the citizen jurors party organizations was part of the organiza- fect’’ standard—the possibility that an orga- and not the organization. The IRS found that the tion’s larger plans to ‘‘someday control the nization may, without intending to do so, en- dissemination of the report constituted impermis- political parties.’’ sible participation in a political campaign, and that gage in an activity that could have the effect all expenditures in connection with the conduct of The first step in the Foundation’s long-term of influencing voter acceptance of a can- the citizens’ jury—and not just the expenditures of strategy was to encourage members to be didate and, as a result, place its tax exemp- the dissemination—constituted ‘‘political expendi- elected as precinct committeemen. These in- tion in jeopardy and/or risk incurring excise tures’’ under section 4955: This culmination shows dividuals could then exert influence within tax penalties under section 4955. The legisla- that all the activity of the organization leading up the party apparatus, beginning with the tive history of section 4955 makes it clear to the final report is intimately connected with and a part of the process to put on the [citizens’ jury], county central committee. Precinct com- that an inadvertent action may indeed vio- and thus publication of the final report makes the mitteemen could sway the precinct caucuses, late section 501(c)(3), and suggests that the entire process with respect to the [citizens’ jury] a a step in the selection of delegates to the IRS may appropriately apply the excise tax proscribed political activity. party’s presidential nominating convention. penalty rather than revocation as a sanction January 21, 1997 CONGRESSIONAL RECORD — HOUSE H231 in such situations. Nevertheless, some prac- substantiality. One test is referred to as the opposing legislation (Treas. Reg. § 1.501(c)(3)– titioners have expressed the view that, in in- ‘‘substantial-part test.’’ The other test, re- 1(c)(3)(ii)(a)) (referred to as ‘‘direct lobby- terpreting whether ambiguous behavior is ferred to as the ‘‘expenditure test,’’ 102 was ing’’); violative of the campaign intervention pro- added to tax law in 1976 at sections 501(h) and (b) urges the public to contact members of hibition, primary reliance should be placed 4911 as a result of uncertainty over the a legislative body for the purpose of propos- on whether there was a political purpose to meaning of the word ‘‘substantial.’’ ing, supporting, or opposing legislation (id.) the behavior at issue. See EO Comments at The ‘‘expenditure test’’ sets forth specific, (referred to as ‘‘grassroots lobbying’’); or 856–57. In other words, ‘‘to violate the dollar levels of permissible lobbying expendi- (c) advocates the adoption or rejection of 501(c)(3) prohibition, the organization’s ac- tures. Section 501(h) did not amend section legislation (Treas. Reg. § 1.501(c)(3)– tions have to include an intentional ’tilt’ for 501(c)(3), but rather provided charitable orga- 1(c)(3)(ii)(b)). nizations an alternative to the vague ‘‘sub- or against one or more people running for Section 4945(e) of the Internal Revenue Code stantial-part’’ limitations of section public office.’’ Id. at 857. In this regard, it provides additional guidance regarding the 501(c)(3). A charitable organization may elect was noted that: meaning of ‘‘attempting to influence legisla- the ‘‘expenditure test’’ as a substitute for In most cases, the presence of a political pur- tion.’’ 103 According to that provision, a tax- the substantial-part test. A public charity able expenditure includes any amount paid pose will be clear from the charity’s paper that does not elect the expenditure test re- or incurred for: trail, because organizational activities in mains subject to the substantial part test. the political arena are usually accompanied Treas. Reg. § 1.501(h)–1(a)(4). Joint Commit- (a) any attempt to influence any legisla- by assertive behavior, much internal discus- tee in its General Explanation of the Tax Re- tion through an attempt to affect the opin- sion, and explicit written communications. form Act of 1976, 1976–3 C.B. (Vol. 2) 419. ion of the general public or any segment *** The substantial-part test is applied with- thereof, and Id. out regard to the provisions of section 501(h). (b) any attempt to influence legislation To date, the IRS has shown no intention to The law, regulations and rulings regarding through communication with any member or abandon its position that an organization the expenditure test may not be used to in- employee of a legislative body, or with any may violate the prohibition against political terpret the law, regulations and rulings of other government official or employee who campaign intervention based on the unin- the substantial-part test. Section 501(h)(7) may participate in the formulation of the tended or inadvertent effect of its actions, as (‘‘nothing [in section 501(h)] shall be con- legislation (except technical advice or assist- well as by an engaging in activities with ‘‘an strued to affect the interpretation of the ance provided to a government body or to a intentional tilt’’ in favor of a candidate or in phrase ‘no substantial part of the activities committee or other subdivision thereof in re- support of a PAC. Indeed, its recent election of which is carrying on propaganda, or other- sponse to a written request by such body or year warning to section 501(c)(3) organiza- wise attempting, to influence legislation,’ subdivision . * * *) other than through mak- tions not to ‘‘become involved in any other under [section 501(c)(3)]’’). ing available the results of nonpartisan anal- activities that may be beneficial or det- Determining whether an organization vio- ysis, study, or research. rimental to any candidate’’ (discussed above) lated the lobbying limitation requires an un- Treas. Reg. § 53.4945–2(d)(4), which is applica- evidences an apparent intention to adhere to derstanding of what constitutes: i. ‘‘legisla- ble to non-electing public charities,104 dis- a broad interpretation of the prohibition. tion;’’ ii. an attempt to ‘‘influence’’ legisla- cusses ‘‘nonpartisan analysis, study, or re- IRS News Release IR–96–23 (Apr. 24, 1996). tion; and iii. a ‘‘substantial’’ part of an orga- search’’ as follows: nization’s activities. It is also necessary to (ii) If a Substantial Part of an Organization’s Examinations and discussions of broad so- understand the circumstances under which Activities is Attempting to Influence Legis- cial, economic, and similar problems are [not an organization’s ‘‘objectives can be lation, or its Primary Goal can only be Ac- lobbying communications] even if the prob- achieved only through the passage of legisla- lems are of the type with which government complished through Legislation, it is an tion.’’ ‘‘Action’’ Organization would be expected to deal ultimately * * * (a) Definition of ‘‘Legislation’’ For example, [an organization may discuss] Section 501(c)(3) provides that an organiza- problems such as environmental pollution or tion cannot be tax-exempt if a ‘‘substantial The Regulations define ‘‘legislation’’ to include ‘‘action by the Congress, by any State population growth that are being considered part’’ of its activities is ‘‘carrying on propa- by Congress and various State legislatures, ganda, or otherwise attempting, to influence legislature, by any local council or similar governing body, or by the public in a referen- but only where the discussions are not di- legislation.’’ Although there is virtually no rectly addressed to specific legislation being legislative history on the prohibition, courts dum, initiative, constitutional amendment, or similar procedure.’’ Treas. Reg. § 501(c)(3)– considered, and only where the discussions have declared that the limitations in section 1(c)(3)(ii). ‘‘Action by the Congress’’ includes do not directly encourage recipients of the 501(c)(3) ‘‘stem from the policy that the Unit- the ‘‘introduction, amendment, enactment, communication to contact a legislator, an ed States Treasury should be neutral in po- defeat, or repeal of Acts, bills, resolutions, or employee of a legislative body, or a govern- litical affairs and that substantial activities similar items.’’ G.C.M. 39694 (Jan. 22, 1988). ment official or employee who may partici- directed to attempts to influence legislation This definition does not include Executive pate in the formulation of legislation.105 should not be subsidized.’’ Haswell v. United Branch actions, or actions of independent Even if specific legislation is not men- States, 500 F.2d 1133, 1140 (Ct. Cl. 1974), cert. agencies. P.L.R. 6205116290A (May 11, 1962). tioned, however, an indirect campaign to denied, 419 U.S. 1107 (1975). (The court also Requesting executive bodies to support or ‘‘mold public opinion’’ may violate the legis- noted that ‘‘[t]ax exemptions are matters of oppose legislation, however, is prohibited. lative lobbying prohibition. In Christian legislative grace and taxpayers have the bur- The IRS does not recognize a distinction be- Echoes National Ministry, Inc. v. United States, den of establishing their entitlement to ex- tween ‘‘good’’ legislation and ‘‘bad’’ legisla- 470 F.2d 849 (10th Cir. 1972), the organization emptions.’’ Id.) tion. For example, in Rev. Rul. 67–293, 1967– in question produced religious radio and tel- The Regulations provide that an organiza- 2 C.B. 185, the IRS ruled that an organization evision broadcasts, distributed publications, tion is an ‘‘action’’ organization if ‘‘a sub- substantially engaged in promoting legisla- and engaged ‘‘in evangelistic campaigns and stantial part of its activities is attempting tion to protect animals was not exempt even meetings for the promotion of the social and to influence legislation by propaganda or though the legislation would have benefited spiritual welfare of the community, state otherwise.’’ Treas. Reg. § 1.501(c)(3)– the community. and nation.’’ Id. at 852. The court found the 1(c)(3)(ii). The Regulations also provide that (b) Definition of ‘‘attempting to influence leg- publications attempted to influence legisla- an organization is an ‘‘action’’ organization tion ‘‘by appeals to the public to react to if it has the following two characteristics: islation’’ certain issues.’’ Id. at 855.106 (a) Its main or primary objective or objec- Under the Regulations, an organization tives (as distinguished from its incidental or will be regarded as ‘‘attempting to influence secondary objective) may be attained only legislation’’ if it: 103 I.R.C. §§ 4945(d) and (e) contain definitions of by legislation or a defeat of proposed legisla- (a) contacts members of a legislative body ‘‘attempting to influence legislation’’ with respect for the purpose of proposing, supporting, or to taxable expenditures by private foundations, not tion; and public charities. However, ‘‘[a]ctivities which con- (b) it advocates, or campaigns for, the at- stitute an attempt to influence legislation under tainment of such main or primary objective 102 As stated in the legislative history with respect Code § 4945 * * * also constitute an attempt to influ- or objectives as distinguished from engaging to I.R.C. § 501(h): ‘‘The language of the lobbying pro- ence legislation under Code § 501(c)(3).’’ G.C.M. 36127 in nonpartisan analysis, study, or research vision was first enacted in 1934. Since that time nei- (Jan. 2, 1975). Congress viewed section 4945(e) as a and making the results thereof available to ther Treasury regulations nor court decisions gave clarification of the phrase ‘‘attempting to influence the public. enough detailed meaning to the statutory language legislation’’ in tax-exempt law generally, not just to permit most charitable organizations to know ap- with respect to private foundations. Id. Treas. Reg. § 1.501(c)(3)–1(c)(3)(iv). proximately where the limits were between what 104 See G.C.M. 36127 (Jan. 2, 1975) and Haswell v. To determine whether a substantial part of was permitted by the statute and what was forbid- United States, 500 F.2d 1133 (Ct. Cl. 1974). an organization’s activities is attempting to den by it. This vagueness was, in large part, a func- 105 See also G.C.M. 36127 (Jan. 2, 1975). influence legislation, two alternative tests tion of the uncertainty in the meaning of the terms 106 For example, the publications urged its readers ‘substantial part’ and ‘activities’. * * * Many be- to: ‘‘write their Congressmen in order to influence exist. Each test contains its own definition lieved that the standards as to the permissible level the political decisions in Washington;’’ ‘‘work in of ‘‘legislation’’ and what constitutes an at- of activities under prior law was too vague and politics at the precinct level;’’ ‘‘maintain the tempt to influence legislation. The two tests thereby tended to encourage subjective and selective McCarran-Walter Immigration law;’’ ‘‘reduce the also contain different ways of determining enforcement.’’ Continued H232 CONGRESSIONAL RECORD — HOUSE January 21, 1997 Under the expenditure test, ‘‘grassroots can be achieved only through the passage of d. To Satisfy the Operational Test, an Organi- lobbying’’ is ‘‘any attempt to influence legis- legislation that ‘‘all the surrounding facts zation Must Not Violate the ‘‘Private lation through an attempt to affect the opin- and circumstances, including the articles Inurement’’ Prohibition ions of the general public or any segment and all activities of the organization, are to To qualify for tax-exempt status, section thereof.’’ Treas. Reg. § 56.4911–2(b)(2)(i). Such be considered.’’ Treas. Reg. § 1.501(c)(3)– 501(c)(3) provides that an organization must a communication will be considered grass- 1(c)(3)(iv). There is little additional IRS or be organized and operated so that ‘‘no part of roots lobbying if it: (a) refers to specific leg- court guidance on the subject. In one of the [its] net earnings * * * inures to the benefit islation, (b) reflects a view on such legisla- few comments on this section of the Regula- of any private shareholder or individual.’’ tion, (c) [e]ncourages the recipient to take tions, the IRS said in G.C.M. 33617 (Sep. 12, The Regulations add little clarification to action with respect to such legislation. 1967) that an organization that was ‘‘an ac- this provision other than saying that ‘‘[a]n Treas Reg. § 56.4911–2(b)(2)(ii).107 tive advocate of a political doctrine’’ was an organization is not operated exclusively for (c) Definition of ‘‘Substantial’’ action organization because its objectives one or more exempt purposes if its net earn- A bright-line test for determining when a could only be attained by legislation. In its ings inure in whole or in part to the benefit ‘‘substantial’’ part of an organization’s ac- publications, the organization stated that its of private shareholders or individuals.’’ tivities are devoted to influencing legisla- objectives included: Treas. Reg. § 1.501(c)(3)–1(c)(2). Although the private benefit and private tion does not exist. Neither the regulations the mobilization of public opinion; resisting nor case law provide useful guidance as to every attempt by law or the administration inurement prohibitions share common and whether the determination must be based on of law which widens the breach in the wall of often overlapping elements, the two are dis- activity or expenditures or both. In [redacted by IRS] working for repeal of any tinct requirements which must be independ- Seasongood v. Commissioner, 227 F.2d 907 (6th existing state law which sanctions the grant- ently satisfied. American Campaign Academy, Cir. 1955), the court held that attempts to in- ing of public aid to [redacted by IRS]; and 92 T.C. at 1068. The private inurement prohi- fluence legislation that constituted less than uniting all ‘patriotic’ citizens in a concerted bition may be ‘‘subsumed’’ within the pri- five percent of total activities were not sub- effort to prevent the passage of any federal vate benefit analysis, but the reverse is not stantial. The percentage test of Seasongood law [redacted by IRS]. * * *’’ true. ‘‘[W]hen the Court concludes that no was, however, explicitly rejected in Christian By advocating its position to others, thereby prohibited inurement of earnings exists, it Echoes National Ministry, Inc. attempting to secure general acceptance of cannot stop there but must inquire further The political [i.e. legislative] activities of its beliefs; by engaging in general legislative and determine whether a prohibited private an organization must be balanced in the con- activities to implement its views; by urging benefit is conferred.’’ Id. at 1069. It should be text of the objects and circumstances of the the enactment or defeat of proposed legisla- noted that the private inurement prohibition organization to determine whether a sub- tion which was inimical to its principles: the pertains to net earnings of an organization, stantial part of its activities was to influ- organization ceased to function exclusively while the private benefit prohibition can ence legislation. (citations omitted.) A per- in the educator’s role of informant in that apply to benefits other than those that have centage test to determine whether the ac- its advocacy was not merely to increase the monetary value. Furthermore, unlike with tivities were substantial obscures the com- knowledge of the organization’s audience, the private benefit prohibition, the prohibi- plexity of balancing the organization’s ac- but was to secure acceptance of, and action tion on private inurement is absolute. tivities in relation to its objects and cir- on, the organization’s views concerning leg- ‘‘There is no de minimis exception to the cumstances. islative proposals, thereby encroaching upon inurement prohibition.’’ G.C.M. 39862 (Nov. Id. at 855. Yet in Haswell v. United States, 500 the proscribed legislative area. 22, 1991). The IRS has described ‘‘private sharehold- F.2d 1133, 1145 (Ct. Cl. 1974), the court deter- In Rev. Rul. 62–71, 1962–1 C.B. 85, an organi- mined that while a percentage test is not the ers or individuals’’ as ‘‘persons who, because zation was formed ‘‘for the purpose of sup- only measure of substantiality, it was a of their particular relationship with an orga- porting an educational program for the stim- strong indication that the organization’s nization, have an opportunity to control or ulation of interest in the study of the science purposes were no longer consistent with influence its activities.’’ Id. ‘‘[I]t is generally of economics or political economy, particu- charity. In that case, the court concluded accepted that persons other than employees that approximately 20 percent of the organi- larly with reference to a specified doctrine or directors may be in a position to exercise zation’s total expenditures were attributable or theory.’’ It conducted research, made sur- the control over an organization to make to attempts to influence legislation, and veys on economic conditions available, mod- that person an insider for inurement pur- they were found to be substantial. Id. at 1146. erated discussion groups and published books poses.’’ Hill, F. and Kirschten, B., Federal The IRS has characterized the ambiguity and pamphlets. The research activities were and State Taxation of Exempt Organizations 2– over the meaning of ‘‘substantial’’ as a principally concerned with determining the 85 (1994). ‘‘The inurement prohibition serves ‘‘problem [that] does not lend itself to ready effect various real estate taxation methods to prevent anyone in a position to do so from numerical boundaries.’’ G.C.M. 36148 (Janu- would have on land values with reference to siphoning off any of a charity’s income or as- ary 28, 1975). In attempting to give some the ‘‘single tax theory of taxation.’’ ‘‘It [was] sets for personal use.’’ G.C.M. 39862 (Nov. 22, guidance on the subject, however, the IRS the announced policy of the organization to 1991). Furthermore, the IRS has stated that: promote its philosophy by educational meth- said: [I]nurement is likely to arise where the fi- ods as well as by the encouragement of polit- [t]he percentage of the budget dedicated to a nancial benefit represents a transfer of the ical action.’’ Id. The tax theory advocated in given activity is only one type of evidence of organization’s financial resources to an indi- the publications, although educational with- substantiality. Others are the amount of vol- vidual solely by virtue of the individual’s rein the meaning of section 501(c)(3), could be unteer time devoted to the activity, the lationship with the organization, and with- put into effect only by legislative action. amount of publicity the organization assigns out regard to accomplishing exempt pur- Without further elaboration of the facts in- to the activity, and the continuous or inter- poses. volved or how the theory could only be put mittent nature of the organization’s atten- G.C.M. 38459 (July 31, 1980). Also IRS Exempt tion to it. into effect through legislative action, the IRS ruled the organization was an action or- Organizations Handbook (IRM 7751) § 381.1(4) (d) Circumstances under which an organiza- ganization, and thus not operated exclu- (‘‘The prohibition of inurement in its sim- tion’s ‘‘objectives can be achieved only sively for an exempt purpose. plest terms, means that a private share- through the passage of legislation’’ holder or individual cannot pocket the orga- In G.C.M. 37247 (Sept. 8, 1977), the IRS dis- nization’s funds except as reasonable pay- The Regulations require that when deter- cussed whether a organization whose guiding ment for goods or services’’); and Hopkins, mining whether an organization’s objectives doctrine was to propagate a ‘‘nontheistic, supra, at 267 (Proscribed private inurement ethical doctrine’’ of volunteerism could be ‘‘involves a transaction or series of trans- federal payroll by discharging needless jobholders, considered a 501(c)(3) organization. The ‘‘ul- actions, such as unreasonable compensation, stop waste of public funds and balance the budget;’’ timate goal’’ of the guiding doctrine was unreasonable rental charges, unreasonable ‘‘stop federal aid to education, socialized medicine ‘‘freedom from governmental and societal borrowing arrangements, or deferred or re- and public housing;’’ ‘‘abolish the federal income control.’’ According to the IRS: tax;’’ and ‘‘withdraw from the United Nations.’’ tained interests in the organization’s as- Christian Echoes National Ministry, 470 F.2d at 855. In [t]his objective can obviously only be at- sets’’). light of these facts, the court upheld the IRS posi- tained legally through legislation, including Mr. TAYLOR of Mississippi. Mr. Speaker, tion that the organization failed to qualify as a constitutional amendments, or illegally today I rise to discuss the ethics charges fac- 501(c)(3) organization. through revolution. If [the organization] 107 The IRS has also concluded that an organiza- should advocate illegal activities, then it is ing NEWT GINGRICH, Speaker of the House of tion formed to ‘‘facilitate’’ the inauguration of a not charitable; if it advocates legal attain- Representatives. state’s governor-elect and the ‘‘orderly transition of The House Ethics Committee voted 7±1 to power from one political party to another by legisla- ment of its doctrine’s goal through legislative and personnel studies’’ violated the prohibition tion, then it is an action organization. reprimand and assess a penalty of $300,000 on attempting to influence legislation. G.C.M. 35473 The IRS did not conclude that organization for Speaker GINGRICH. (Sept. 10, 1973). The IRS ‘‘saw no logical way to was an action organization, only that there In recommending a sanction and a avoid concluding that [the organization’s] active ad- $300,000 fine, the committee stated on page vocacy of a proposed legislative program requires it was such a possibility and further investiga- to be [classified as an action organization. * * *]’’ tion was warranted. Research has not uncov- 94 of its report the following: ``* * * the viola- See also Rev. Rul. 74–117, 1974–1 C.B. 128. ered further information about this case. tion does not represent only a single instance January 21, 1997 CONGRESSIONAL RECORD — HOUSE H233 of reckless conduct. Rather, over a number of submissions to verify their accuracy. Mr. GING- gible for tax-exempt status because it served years and in a number of situations, Mr. GING- RICH's failure to set the record straight at this private, rather than public interests. RICH showed a disregard and lack of respect point was under the most charitable view But Mr. GINGRICH was not deterred by the for the standards of conduct that applied to his grossly reckless. lessons of the American Campaign Academy activities.'' The committee was also justified in conclud- ruling. Far from it. Instead, over a million dol- Based on this, I find it inconceivable that the ing that Mr. GINGRICH erred in failing to consult lars was diverted knowingly and improperly Ethics Committee would recommend a resolu- a tax attorney regarding certain of his activities from charities for political purposes in violation tion to this body which would not specifically involving organizations exempt from taxation of the law and of House ethical rules. As re- prohibit the Speaker from paying his fine from under section 501(c)(3) of the Internal Reve- vealed with great clarity by Mr. Cole, Mr. campaign funds. Mr. GINGRICH's campaign or- nue Code. Although legal experts may dis- GINGRICH engaged in a deliberate strategy to ganization can raise these funds in a matter of agree about the propriety of Mr. GINGRICH's use money contributed for charitable purposes minutes. During the Speaker's most recent conduct, Mr. GINGRICH's own expert witness to fund his own partisan agenda. general election campaign, he spent $5.4 mil- acknowledged that the combination of politics And it is impossible to read the Cole report lion to defeat his challenger. At the end of No- and 501(c)(3) organizations is an `èxplosive without also understanding Mr. GINGRICH's use vember, Federal Election Commission reports mix,'' and stated that he would have advised of the enhanced power and prestige of the indicate that he has over $1 million remaining Mr. GINGRICH not to use 501(c)(3) entities for Speakership for personal enrichment. The evi- in his campaign fund. the purposes for which he used them. There dence goes far beyond the salary and per- The Speaker used funds from tax-exempt was more than an adequate basis for the quisites of the Speakership. A telling example organizations to promote his political agenda. committee to conclude that ``there were signifi- is Mr. GINGRICH's acceptance of a $4.3 million If a Member violates the rules of the House, cant and substantial warning signals to Mr. book advance, which flowed directly from his the Member, not their campaign, should be GINGRICH that he should have heeded prior to new position and the materials from what we held responsible for whatever fine is levied. embarking on ``the projects involving tax-ex- now know was a taxpayer sponsored college Mr. Speaker, I therefore voted against ap- empt entities. In 1995 Mr. GINGRICH himself course. Although Mr. GINGRICH was eventually proving the resolution recommended by the told the New York Times that his activity in- forced to give up the advance, he has col- committee. volving section 501(c)(3) entities ``[g]oes right lected royalties far in excess of any money in- Mr. CANADY of Florida. Mr. Speaker, today up to the edge. * * * [I]t's risk taking.'' Such volved in the case of former Speaker Jim I cast my vote in support of the recommenda- comments betray a disturbing lack of concern Wright. Ultimately, this episode is about the failure tion of the Committee on Standards of Official by Mr. GINGRICH about the prospect that his to be honest. Nothing speaks more eloquently Conduct that Mr. GINGRICH be reprimanded conduct might bring discredit on the House. and subjected to a $300,000 cost assessment. In light of all these circumstances, I believe to that point than Mr. GINGRICH's final and be- I do so after reviewing the report of the com- that the penalty recommended by the commit- lated admission, not to guilt, but only to being naive. Everyone who reads the Cole report, mittee and the report of counsel for Mr. GING- tee represents the minimum appropriate sanc- and, I submit, anyone who carefully observes RICH. tion. Even if he did not intend to mislead the Mr. GINGRICH's personal behavior during these In making a judgment regarding this matter, committee or abuse the tax laws, Mr. GING- last few days, knows how hollow this rings. I have been guided by the dual goals of main- RICH's conduct was culpable because it was Mr. GINGRICH is not naive. He has devoted a taining the integrity of the House, and ensur- reckless. Such conduct undermines public quarter of a century in pursuit of political ing that Mr. GINGRICH be treated fairly. I have confidence in the integrity of our system of power for himself and his party. It has been at attempted to base my decision on this matter Government. It is conduct that cannot be ex- times brilliant, calculating, and shrewd. But it on all the relevant facts. In my view, the com- cused. The reprimand combined with the stiff has never been naive. Mr. GINGRICH pushed mittee was well justified in concluding that Mr. cost assessment sends a strong signal that the envelop, and got caught. GINGRICH engaged in conduct which did not the House will deal firmly with such trans- Mr. PACKARD. Mr. Speaker, honesty, fair- reflect creditably on the House. gressions of the rules of the House. ness, and dealing justly with others has been The most serious finding against Mr. GING- Mr. BLUMENAUER. Mr. Speaker, for me, an overriding principle of my entire life. The RICH involves the submission of inaccurate in- the GINGRICH episode represents much of Speaker admitted he made mistakes. I believe formation to the committee. The cir- what is wrong about the American political this body should admonish the Speaker's ac- cumstances surrounding the submission of in- system today. It is unfortunately a failing which tions. However, the Ethics Committee's rec- correct statements indicates that Mr. GINGRICH occurs on many levels. ommendations go much too far. The penalty was woefully remiss in meeting his obligation At its core is the behavior of the man twice far exceeds the infraction. as a respondent in the ethics process. Al- removed from the Presidency. It is very dif- First and foremost, the Ethics Committee though the committee did not conclude that ficult for anyone who has read the Cole report serves to ensure fairness. With that in mind, Mr. GINGRICH intentionally misled the commit- to reach any conclusion other than that Mr. the Committee must level equitable sanctions. tee, it is clear that at the least Mr. GINGRICH GINGRICH consistently did not tell the truth, in This recommendation fails to do so. was reckless in responding to a series of in- a desperate attempt to avoid responsibility for In the past, the Committee chose to dis- quiries from the committee. the misuse of taxpayer funds for partisan gain. pense with similar matters with a letter against The sequence of events is particularly dis- In turn, Mr. GINGRICH's transgressions en- the offender. For violations, which I consider turbing because after the initial submission of gendered a series of behaviors from people in morally and ethically far worse, Members were inaccurate information in December 1994, Mr. both parties and in the press that play to their given little more than a perfunctory slap on the GINGRICH had multiple opportunities to correct worst instincts, and that undermine the con- hand. the misstatements but failed to do so until his fidence people have in their Government. I consider this action against the Speaker November 13, 1996, appearance before the Last but not least, the blame resides as well excessive and unwarranted. For that reason, I investigative subcommittee. Most distressing is with the House ethics process, a process so intend to vote against the Ethics Committee's the fact that when the scope of the investiga- open to perversion that it raises questions recommendation. A letter of reproval should tion was expanded on September 26, 1996, to about its ability to protect individual rights. It be sufficient as it was for the Minority Leader, include the issue of whether Mr. GINGRICH pro- has unfortunately become so susceptible to RICHARD GEPHARDT; Minority Whip, DAVID vided accurate, reliable, and complete infor- manipulation that the House leadership and BONIOR and for violations far more serious mation to the committee, Mr. GINGRICH failed committee chair can, and has, unilaterally dis- than the Speaker's. to make an immediate diligent effort to deter- torted its most sensitive proceedings, denying Mr. CONYERS. Mr. Speaker, this is a sad mine if he had in fact submitted incorrect infor- the House and the American public the time to day for the House of Representatives and for mation to the committee, and to correct any reflect. the American people. For the first time in his- errors that may have been made. Over the weekend, I read the Cole report. I tory, our body will be voting to punish the Indeed, in response to the investigative sub- come away from it believing that Mr. GINGRICH Speaker of the House. How we as a body act committee's letter of October 1, 1996, request- knew exactly what he was doing, based on his to punish Mr. GINGRICH will send a message ing that Mr. GINGRICH produce all documents intimate familiarity with the 1989 case involv- to the American public. It will say whether we relied on to prepare the letters previously sub- ing the American Campaign Academy. In that are able to monitor our own institution; it will mitted to the committee, Mr. GINGRICH wrote case, the IRS and a tax court found that the say whether we prefer party loyalty to truth to the subcommittee stating how busy he was academy, which was run by Mr. GINGRICH's and integrity; it will say whether Mr. GINGRICH at the time the various letters were submitted, closest personal advisor and which was rep- is the Member best suited to represent our in- but also affirming that he had reviewed the resented by Mr. GINGRICH's lawyer, was ineli- stitution. H234 CONGRESSIONAL RECORD — HOUSE January 21, 1997 The punishment contained in House Resolu- faith in their Government. I find it unconscion- ommending a reprimand, Special Counsel tion 31 is inadequate. The punishment neither able that my colleagues in the majority, after Cole stated that the Ethics Committee, in rec- reflects the seriousness of the misdeeds ad- hearing Mr. GINGRICH's admission, would vote ommending a reprimand, recognized that this mitted to by Mr. GINGRICH nor Mr. GINGRICH's to reinstate him as Speaker of the House. Are matter fell somewhere in between a reprimand history of abuse of the rules of the House. they saying that Mr. GINGRICH is the best per- and censure. It would seem to me that this is Make no mistake about the gravity of the son among their ranks to lead their party and an important fact, that the subcommittee which charges against GINGRICH. Certain Members to lead the House of Representatives? Mr. investigated this case did not feel comfortable of the majority have attempted to portray Mr. GINGRICH himself has said that Ethics Commit- with a finding of reprimand. GINGRICH's misleading statements as over- tee investigations of a Speaker must ``meet a Additionally, this investigation undertaken by sight, and they have attempted to portray the higher standard of public accountability'' than the House has now been referred to the Inter- tax law he violated as arcane. Do not let these those involving other Members of the House. nal Revenue Service for further investigation statements mislead the entire body. By voting for this resolution, will we really be relative to Tax Code violations. And last, the Speaker GINGRICH has admitted to all of the meeting that higher standard? imposition of a $300,000 fine, unprecedented violations alleged by the subcommittee. He ac- I urge my colleagues on the other side of in the history of the institution, should con- knowledged that `ìn my name and over my the aisle to reconsider keeping Mr. GINGRICH vince every Member that this is not an offense signature, inaccurate, incomplete, and unreli- as Speaker. Although the majority's rules may which is made into a simple reprimand by lev- able statements were given to the committee'' allow him to remain Speaker, the ethical ying such a harsh fine. Rather, the fine is in- and that ``he brought down on the people's lapses of Mr. GINGRICH demand that he step dicative that this matter is more severe than a House a controversy which could weaken the aside. As the January 21, 1997, Atlanta Jour- reprimand and should be taken up to censure. faith people have in their Government.'' The nal-Constitution has stated, ``Mr. GINGRICH will A censure would then solve the problem of special prosecutor has make it clear that he dishonor the House every time he picks up the removing a Speaker who lacks the decency to believes that Mr. GINGRICH intentionally misled Speaker's gavel.'' The New York Times also remove himself from office. The total lack of the ethics counsel. The special prosecutor and urges Mr. GINGRICH to step aside: ``That find- respect he shows for the House and thereby the ethics committee also made it clear that ing [of James Cole], and the considerable evi- the American people warrants this House to Mr. GINGRICH violated the agreement that for- dence that backs it up, make it clear that Mr. reject the committee's recommendation and bid him to conduct a media strategy to mini- GINGRICH has no business serving as Speak- impose a sanction of censure. mize, or spin, the findings of the Ethics Com- er. His ego got him into this mess, and that The imposition of a mere reprimand today mittee. And after review of the committee's re- same ego is now driving him to compound the will leave a stigma over this Speaker that will port, it seems very likely that Mr. GINGRICH damage.'' As William Carlos Williams noted, haunt every Member of the House for the rest has violated tax law. And GINGRICH did not ``Leadership passes into empire; empire be- of this Congress. violate arcane tax law, but rather the very gets insolence; insolence brings ruin.'' It is Mrs. JOHNSON of Connecticut. Mr. basic premise that you cannot use tax-exempt time for the majority to do the right thing. Speaker, I move the previous question funds for political purposes. He used tax-ex- Mr. STOKES. Mr. Speaker, I am reminded on the resolution. empt funds to help build a political machine. today of what occurred in the House of Rep- The previous question was ordered. And it is clear that this is not the end of Mr. resentatives a few years ago when I chaired The SPEAKER pro tempore. The GINGRICH's ethical and legal troubles. The the Ethics Committee. We had undertaken an question is on the resolution. committee will make available to the IRS all extensive investigation, led by Joseph The question was taken; and the relevant documents produced during the sub- Califano, a noted Washington lawyer whom I Speaker pro tempore announced that committee's inquiry and establish a liaison had hired as special counsel. Mr. Califano's the ayes appeared to have it. with the IRS. The Department of Justice may position to our committee was the same as RECORDED VOTE further investigate the actions of Mr. GINGRICH. the position of Mr. James M. Cole, special Mr. CARDIN. Mr. Speaker, I demand We have no idea what these, or other inves- counsel to this committee. This particular in- a recorded vote. tigations, find. But, it does not matter. Be- vestigation surrounded allegations of sex and A recorded vote was ordered. cause what we already know is enough for us drugs involvement between Members of Con- The vote was taken by electronic de- to say, enough is enough, let us show the gress and House pages. vice, and there were—ayes 395, noes 28, American public that will have the strength At the end of our investigation, the Ethics answered ‘‘present’’ 5, not voting 6, as and integrity to punish our Members. And a Committee brought charges against two Mem- follows: slap on the wrist of Mr. GINGRICH that allows bers of the House. These charges resulted in [Roll No. 8] him to retain the Speaker's gavel, does not findings that these two Members had been in- show our strength or integrity. volved in sex with House pages. Our rec- AYES—395 Further, this is not the first time that Mr. ommendation to the House in both cases was Ackerman Boucher Crane Aderholt Boyd Crapo GINGRICH has been found to have violated a reprimand for both Members. As chairman Allen Brady Cubin House rules. The Speaker has already been of the Ethics Committee, I presented the com- Andrews Brown (CA) Cummings cited six times for his disregard of the House mittee's case on the floor of the House. Fol- Archer Brown (FL) Cunningham rules. It has become very clear that Mr. GING- lowing my presentation, the leadership on both Armey Brown (OH) Danner Bachus Bryant Davis (FL) RICH has shown a willful disregard for our sides of the aisle joined together on a resolu- Baesler Bunning Davis (IL) rules. In fact, Mr. James Cole has found that tion to raise the recommendation of reprimand Baker Burr Davis (VA) `òver a number of years and in a number of to a greater penalty, that of censure. The vote Baldacci Calvert Deal Ballenger Camp DeFazio situations * * * Mr. GINGRICH showed a dis- was taken and both Members were censured. Barcia Campbell DeGette regard and lack of respect for the standards of That occurred, of course, in a Congress where Barrett (NE) Canady Delahunt conduct that applied to his activities.'' the leadership on neither side was involved in Barrett (WI) Cannon DeLauro This willful ``disregard and lack of respect for breaking the rules of the House. Bass Capps Dellums Bateman Cardin Deutsch the standards of conduct'' make it clear that Today, we are faced with the leader of the Becerra Castle Diaz-Balart the punishment of reprimand does not reflect House who not only has broken the rules of Bentsen Chabot Dickey the seriousness of Mr. GINGRICH'S multiple of- the House, but has been described by Mr. Bereuter Chambliss Dicks fenses. Comparable offenses historically have James M. Cole, special counsel, as being in- Berman Chenoweth Dingell Berry Christensen Dixon met with more severe punishment. In 1979, volved in conduct where the violation did not Bilbray Clay Doggett the House voted to censure a representative represent only a single instance of reckless Bilirakis Clayton Dooley for diverting staff salaries for personal use and conduct, but rather over a number of years Bishop Clement Doyle Blagojevich Clyburn Dreier in 1980, the House censured another rep- and in a number of situations, Mr. Cole states Bliley Coble Duncan resentative of financial misconduct. Mr. GING- emphatically that the Speaker, Mr. GINGRICH, Blumenauer Collins Dunn RICH diverted tax exempt funds for political showed a disregard and lack of respect for the Blunt Combest Edwards purposes and then attempted over several standard of conduct that applied to his activi- Boehlert Condit Ehlers Boehner Cook Ehrlich years to cover his tracks by misleading the ties. Bonilla Cooksey Emerson committee. Certainly, these actions are de- Moreover, the committee found that Speak- Bonior Costello Engel serving of at least a censure. er GINGRICH has admitted that he submitted Bono Cox English Unfortunately Mr. Speaker, Mr. GINGRICH's information to the committee which was inac- Borski Coyne Ensign Boswell Cramer Eshoo actions have weakened the American public's curate, incomplete, and unreliable. In rec- January 21, 1997 CONGRESSIONAL RECORD — HOUSE H235 Etheridge LaHood Ramstad Wise Woolsey Yates There was no objection. Evans Lampson Rangel Wolf Wynn Young (FL) f Everett Lantos Regula NOES—28 Ewing Largent Reyes Farr Latham Richardson Barr Hilliard Sessions ELECTION OF MAJORITY MEM- Fattah LaTourette Riggs Bartlett Hunter Smith (TX) BERS TO CERTAIN STANDING Fawell Lazio Riley Barton Johnson, Sam Solomon COMMITTEES OF THE HOUSE Fazio Leach Rivers Burton King (NY) Stump Filner Levin Roemer Buyer Lewis (CA) Taylor (MS) Mr. BOEHNER. Mr. Speaker, by di- Flake Lewis (GA) Rogan Callahan Livingston Taylor (NC) rection of the Republican Conference, I Coburn McKeon Wicker Foglietta Lewis (KY) Rogers offer a privileged resolution (H. Res. 32) DeLay Mica Young (AK) Foley Linder Rohrabacher Doolittle Myrick and ask for its immediate consider- Forbes Lipinski Ros-Lehtinen Herger Packard ation. Ford LoBiondo Rothman Fowler Lofgren Roukema ANSWERED ‘‘PRESENT’’—5 The Clerk read the resolution, as fol- Fox Lowey lows: Roybal-Allard Abercrombie Hastings (FL) Waters Frank (MA) Lucas Royce Conyers McDermott H. RES. 32 Franks (NJ) Luther Rush Frelinghuysen Maloney (CT) NOT VOTING—6 Resolved, That the following named Mem- Ryun bers be, and they are hereby, elected to the Frost Maloney (NY) Sabo Carson Kolbe Tejeda Furse Manton following standing committees: Salmon Granger Tauzin Watts (OK) Committee on Banking: Mr. La Tourette to Gallegly Manzullo Sanchez Ganske Markey b 1407 rank following Mr. Sessions. Sanders Committee on Education and the Gejdenson Martinez Sandlin Mr. RAMSTAD changed his vote Gekas Mascara Workforce: Mr. Paul; Mr. Bob Schaffer of Sanford Gephardt Matsui from ‘‘no’’ to ‘‘aye.’’ Sawyer Colorado; Mr. Peterson of Pennsylvania; Mr. Gibbons McCarthy (MO) So the resolution was agreed to. Saxton Upton; Mr. Deal of Georgia; Mr. Hilleary; Gilchrest McCarthy (NY) The result of the vote was announced Scarborough and Mr. Scarborough; all to rank in the Gillmor McCollum Schaefer, Dan as above recorded. named order following Mr. Norwood of Geor- Gilman McCrery Schaffer, Bob A motion to reconsider was laid on gia. Gonzalez McDade the table. Committee on Government Reform and Goode McGovern Schiff Goodlatte McHale Schumer f Oversight: Mr. Barr of Georgia to rank fol- Goodling McHugh Scott PERSONAL EXPLANATION lowing Mr. Snowbarger. Gordon McInnis Sensenbrenner Committee on International Relations: Mr. Goss McIntosh Serrano Mr. TAUZIN. Mr. Speaker, I was unavoid- Brady to rank following Mr. Moran of Kan- Graham McIntyre Shadegg ably detained for the last vote. If I were here, sas. Green McKinney Shaw I would have voted ``yes.'' Committee on Resources: Mr. Crapo to Greenwood McNulty Shays rank following Mr. Gibbons. Gutierrez Meehan Sherman PERSONAL EXPLANATION Committee on Science: Mr. Boehlert; Mr. Gutknecht Meek Shimkus Mr. WATTS of Oklahoma. Mr. Speaker, on Fawell; Mrs. Morella; Mr. Weldon of Penn- Hall (OH) Menendez Shuster sylvania; Mr. Rohrabacher; Mr. Schiff; Mr. Hall (TX) Metcalf Sisisky rollcall No. 8, I was unavoidably detained with a constituent. Had I been present, I would Barton of Texas; Mr. Calvert; Mr. Bartlett of Hamilton Millender- Skaggs Maryland; Mr. Ehlers; Mr. Weldon of Florida; Skeen Hansen McDonald have voted ``yes.'' Mr. Salmon; Mr. Davis; Mr. Gutknecht; Mr. Harman Miller (CA) Skelton f Hastert Miller (FL) Slaughter Foley; Mr. Ewing; Mr. Pickering; Mr. Can- Hastings (WA) Minge Smith (MI) GENERAL LEAVE non; Mr. Brady; and Mr. Cook. Hayworth Mink Smith (NJ) Committee on Small Business: Mr. Com- Mrs. JOHNSON of Connecticut. Mr. best; Mr. Hefley; Mr. Manzullo; Mr. Bartlett Hefley Moakley Smith (OR) Speaker, I ask unanimous consent that Hefner Molinari Smith, Adam of Maryland; Mrs. Smith of Washington; Mr. Hill Mollohan Smith, Linda all Members may have 5 legislative LoBiondo; Mrs. Kelly; Mr. Jones; Mr. Souder; Hilleary Moran (KS) Snowbarger days in which to revise and extend Mr. Chabot; Mr. Ryun; Mr. Snowbarger; Mr. Hinchey Moran (VA) Snyder their remarks on the resolution just Pappas; Mr. English; Mr. McIntosh; and Mrs. Hinojosa Morella Souder adopted. Emerson. Hobson Murtha Spence The SPEAKER pro tempore Mr. Committee on Veterans’ Affairs: Mr. Smith Hoekstra Nadler Spratt of New Jersey; Mr. Bilirakis; Mr. Spence; Mr. Neal LAHOOD. Is there objection to the re- Holden Stabenow Everett; Mr. Buyer; Mr. Quinn; Mr. Bachus; Hooley Nethercutt quest of the gentlewoman from Con- Stark Mr. Stearns; Mr. Dan Schaefer of Colorado; Horn Neumann Stearns necticut? Ney Mr. Moran of Kansas; Mr. Cooksey; Mr. Hostettler Stenholm There was no objection. Houghton Northup Hutchinson; Mr. Hunter; Mr. Hayworth; and Stokes Hoyer Norwood f Mrs. Chenoweth. Strickland Hulshof Nussle Stupak RESIGNATION AS MEMBER OF Mr. BOEHNER (during the reading). Hutchinson Oberstar Sununu COMMITTEE ON VETERANS’ AF- Hyde Obey Mr. Speaker, I ask unanimous consent Talent Inglis Olver FAIRS that the privileged resolution be con- Tanner Istook Ortiz The SPEAKER pro tempore laid be- sidered as read and printed in the Jackson (IL) Owens Tauscher Thomas fore the House the following resigna- RECORD. Jackson-Lee Oxley The SPEAKER pro tempore. Is there (TX) Pallone Thompson tion as a member of the Committee on Jefferson Pappas Thornberry Veterans’ Affairs: objection to the request of the gen- Jenkins Parker Thune tleman from Ohio? CONGRESS OF THE UNITED STATES, John Pascrell Thurman HOUSE OF REPRESENTATIVES, There was no objection. Johnson (CT) Pastor Tiahrt Tierney Washington, DC, January 21, 1997. The resolution was agreed to. Johnson (WI) Paul A motion to reconsider was laid on Johnson, E. B. Paxon Torres Re Request to take leave from Veterans Jones Payne Towns Committee. the table. Traficant Kanjorski Pease Hon. NEWT GINGRICH, f Turner Kaptur Pelosi The Capitol, Kasich Peterson (MN) Upton ELECTION OF MINORITY MEMBER Kelly Peterson (PA) Velazquez Washington, DC. DEAR NEWT: In light of my new assignment TO COMMITTEE ON COMMERCE Kennedy (MA) Petri Vento Kennedy (RI) Pickering Visclosky to the House Committee on Government Re- Mr. FAZIO of California. Mr. Speak- Kennelly Pickett Walsh form and Oversight, I hereby request that I er, I offer a privileged resolution (H. Wamp be granted a leave of absence from my as- Kildee Pitts Res. 33) and ask for its immediate con- Kilpatrick Pombo Watkins signed slot on the Committee on Veterans’ Kim Pomeroy Watt (NC) Affairs. sideration. Kind (WI) Porter Waxman Thank you for your consideration. The Clerk read the resolution, as fol- Kingston Portman Weldon (FL) With warmest regards, I am, lows: Kleczka Poshard Weldon (PA) Very truly yours, H. RES. 33 Klink Price (NC) Weller BOB BARR. Resolved, That the following named Mem- Klug Pryce (OH) Wexler Member of Congress. Knollenberg Quinn Weygand ber, be elected to the Committee on Com- Kucinich Radanovich White The SPEAKER pro tempore. Without merce, be designated to rank on that com- LaFalce Rahall Whitfield objection, the resignation is accepted. mittee as follows: H236 CONGRESSIONAL RECORD — HOUSE January 21, 1997 Tom Sawyer of Ohio, to rank directly The concurrent resolution was agreed ferred to the Committee on National below Eliot Engel of New York. to. Security and ordered to be printed. The resolution was agreed to. A motion to reconsider was laid on To the Congress of the United States: A motion to reconsider was laid on the table. As required by section 1416 of the Na- the table. f tional Defense Authorization Act for f CONTINUATION OF NATIONAL Fiscal Year 1997 (Public Law 104–201), I transmit herewith a report describing HOUR OF MEETING FOR MORNING EMERGENCY WITH RESPECT TO the respective policy functions and HOUR DEBATE MIDDLE EAST VIOLENCE—MES- operational roles of Federal agencies in SAGE FROM THE PRESIDENT OF Mr. BOEHNER. Mr. Speaker, I ask countering the threat posed by the use THE UNITED STATES (H. DOC. unanimous consent that on Mondays or potential use of biological and NO. 105–28) and Tuesdays of each week through the chemical weapons of mass destruction second session of the 105th Congress, The SPEAKER pro tempore laid be- (WMD) within the United States. the House shall convene 90 minutes fore the House a message from the WILLIAM J. CLINTON. earlier than the time otherwise estab- President of the United States; which THE WHITE HOUSE, January 21, 1997. lished by order of the House solely for was read and, together with the accom- f the purpose of conducting morning panying papers, without objection, re- hour debate and that the time for such ferred to the Committee on Inter- SPECIAL ORDERS debate shall be limited to 30 minutes national Relations and ordered to be The SPEAKER pro tempore. Under allocated to each party; except that on printed. the Speaker’s announced policy of Jan- Tuesdays of each week after the first uary 7, 1997, and under a previous order Tuesday in May of a session the House To the Congress of the United States: of the House, the following Members shall convene for morning hour debate Section 202(d) of the National Emer- will be recognized for 5 minutes each. 1 hour earlier than the time otherwise gencies Act (50 U.S.C. 1622(d)) provides f for the automatic termination of a na- established by order of the House, that The SPEAKER pro tempore. Under a tional emergency unless, prior to the the time for such debate shall be lim- previous order of the House, the gen- anniversary date of its declaration, the ited to 25 minutes allocated to each tleman from New Jersey [Mr. President publishes in the Federal Reg- party, and that in no event shall morn- MENENDEZ] is recognized for 5 minutes. ing hour debate continue beyond 10 ister and transmits to the Congress a notice stating that the emergency is to [Mr. MENENDEZ addressed the minutes before the hour appointed for House. His remarks will appear here- the resumption of the House session; continue in effect beyond the anniversary date. In accordance with this pro- after in the Extensions of Remarks.] and that all morning hour debate shall f be conducted under the following con- vision, I have sent the enclosed notice ditions: to the Federal Register for publication, COMMUNICATION FROM THE First, the prayer by the Chaplain, the stating that the emergency declared CHAIRMAN OF THE COMMITTEE approval of the Journal, and the Pledge with respect to grave acts of violence ON THE BUDGET REGARDING of Allegiance to the flag shall be post- committed by foreign terrorists that CURRENT LEVELS OF SPENDING poned until resumption of the House disrupt the Middle East peace process, AND REVENUES REFLECTING AC- session following morning hour debate; is to continue in effect beyond January TION COMPLETED AS OF OCTO- second, initial and subsequent recogni- 23, 1997. The first notice continuing BER 4, 1996, FOR FISCAL YEARS tion for debate shall alternate between this emergency was published in the 1997–2001 parties; third, recognition shall be con- Federal Register last year on January The SPEAKER pro tempore. Under a ferred by the Speaker only pursuant to 22, 1996. previous order of the House, the gen- lists submitted by the majority leader The crisis with respect to the grave tleman from Ohio [Mr. KASICH] is rec- or the minority leader; fourth, no acts of violence committed by foreign ognized for 5 minutes. Member may address the House for terrorists that threaten to disrupt the Mr. KASICH. Mr. Speaker, on behalf of the more than 5 minutes except for the ma- Middle East peace process that led to Committee on the Budget and pursuant to jority leader, the minority leader, or the declaration of a national emer- sections 302 and 311 of the Congressional the minority whip; and, fifth, pursuant gency, on January 23, 1995, has not Budget Act, I am submitting for printing in the to clause 12 of rule I the Speaker shall been resolved. Terrorist groups con- CONGRESSIONAL RECORD an updated report on declare a recess following morning tinue to engage in activities with the the current levels of on-budget spending and hour debate until the hour appointed purpose or effect of threatening the revenues for fiscal year 1997 and for the 5- for the resumption of the House ses- Middle East peace process, and which year period fiscal year 1997 through fiscal sion. are hostile to U.S. interests in the re- year 2001. The SPEAKER pro tempore. Is there gion. Such actions threaten vital inter- This report is to be used in applying the fis- objection to the request of the gen- ests of the national security, foreign cal year 1997 budget resolution (H. Con. Res. tleman from Ohio? policy, and economy of the United 178), for legislation having spending or reve- There was no objection. States. For these reasons, I have deter- nue effects in fiscal years 1997 through 2001. mined that it is necessary to maintain HOUSE OF REPRESENTATIVES, b 1415 in force the broad authorities nec- COMMITTEE ON THE BUDGET, f essary to deny any financial support Washington, DC, January 20, 1997. from the United States for foreign ter- Hon. NEWT GINGRICH, JOINT SESSION OF CONGRESS— Speaker, House of Representatives, STATE OF THE UNION ADDRESS rorists that threaten to disrupt the Washington, DC. Middle East peace process. Mr. BOEHNER. Mr. Speaker, I offer a DEAR MR. SPEAKER: To facilitate applica- WILLIAM J. CLINTON. tion of sections 302 and 311 of the Congres- privileged concurrent resolution (H. THE WHITE HOUSE, January 21, 1997. sional Budget Act, I am transmitting a sta- Con. Res. 9) and ask for its immediate f tus report on the current levels of on-budget consideration. spending and revenues for fiscal year 1997 The Clerk read the resolution, as fol- REPORT OF FEDERAL AGENCIES and for the 5-year period fiscal year 1997 lows: REGARDING WEAPONS OF MASS through fiscal year 2001. The term ‘‘current level’’ refers to the H. CON. RES. 9 DESTRUCTION—MESSAGE FROM amounts of spending and revenues estimated Resolved by the House of Representatives (the THE PRESIDENT OF THE UNITED for each fiscal year based on laws enacted or Senate concurring), That the two Houses of STATES (H. DOC. NO. 105– ) awaiting the President’s signature as of Oc- Congress assemble in the Hall of the House The SPEAKER pro tempore laid be- tober 4, 1996. of Representatives on Tuesday, February 4, The first table in the report compares the 1997, at 9 p.m., for the purpose of receiving fore the House a message from the current level of total budget authority, out- such communication as the President of the President of the United States; which lays, and revenues with the aggregate levels United States shall be pleased to make to was read and, together with the accom- set by H. Con. Res. 178, the concurrent reso- them. panying papers, without objection, re- lution on the budget for fiscal year 1997. This January 21, 1997 CONGRESSIONAL RECORD — HOUSE H237 comparison is needed to implement section needed to implement section 302(f) of the BUDGET AUTHORITY 311(a) of the Budget Act, which creates a Budget Act, because the point of order under point of order against measures that would that section also applies to measures that FY 1997 budget authority exceeds the ap- breach the budget resolution’s aggregate lev- would breach the applicable section 602(b) propriate level set by H. Con. Res. 178. En- els. The table does not show budget author- sub-allocation. The revised section 602(b) actment of measures providing any new ity and outlays for years after fiscal year sub-allocations were filed by the Appropria- budget authority for FY 1997 would be sub- 1997 because appropriations for those years tions Committee on September 27, 1996. ject to point of order under section 311(a) of have not yet been considered. Sincerely, the Congressional Budget Act of 1974. The second table compares the current lev- JOHN R. KASICH, els of total budget authority, outlays, and Chairman. OUTLAYS new entitlement authority of each direct Enclosures. FY 1997 outlays exceed the appropriate spending committee with the ‘‘section 602(a)’’ allocations for discretionary action REPORT TO THE SPEAKER FROM THE COMMITTEE ON level set by H. Con. Res. 178. Enactment of made under H. Con. Res. 178 for fiscal year THE BUDGET—STATUS OF THE FISCAL YEAR 1997 measures providing any new outlays for FY 1997 and for fiscal years 1997 through 2001. CONGRESSIONAL BUDGET ADOPTED IN HOUSE CON- 1997 would be subject to point of order under ‘‘Discretionary action’’ refers to legislation CURRENT RESOLUTION 178 section 311(a) of the Congressional Budget enacted after adoption of the budget resolu- [Reflecting action completed as of October 4, 1996] Act of 1974. tion. This comparison is needed to imple- [On-budget amounts, in millions of dollars] ment section 302(f) of the Budget Act, which REVENUES creates a point of order against measures Fiscal year Fiscal year Enactment of any measure that would re- 1997 1997–2001 that would breach the section 602(a) discre- sult in any revenue loss in excess of tionary action allocation of new budget au- Appropriate Level (as set by H. Con. Res. $17,805,000,000 for FY 1997 (if not already in- thority or entitlement authority for the 178): committee that reported the measure. It is Budget authority ...... 1,314,785 6,956,507 cluded in the current level estimate) or in Outlays ...... 1,311,171 6,898,627 excess of $59,939,000,000 for FY 1997 through also needed to implement section 311(b), Revenues ...... 1,083,728 5,913,303 which exempts committees that comply with Current Level: 2001 (if not already included in the current their allocations from the point of order Budget authority ...... 1,331,836 (1) level) would increase the amount by which Outlays ...... 1,323,900 (1) under section 311(a). Revenues ...... 1,101,533 5,973,242 revenues are less than the recommended lev- The third table compares the current lev- Current Level over(+)/under(¥) Appropriate els of revenue set by H. Con. Res. 178. Level: els of discretionary appropriations for fiscal Budget authority ...... 17,051 (1) year 1997 with the revised ‘‘section 602(b)’’ Outlays ...... 12,729 (1) sub-allocations of discretionary budget au- Revenues ...... 17,805 59,939 thority and outlays among Appropriations 1 Not applicable because annual appropriations Acts for Fiscal Years 1997 subcommittees. This comparison is also through 2001 will not be considered until future sessions of Congress. DIRECT SPENDING LEGISLATION—COMPARISON OF CURRENT LEVEL WITH COMMITTEE ALLOCATIONS PURSUANT TO BUDGET ACT SECTION 602(a) REFLECTING ACTION COMPLETED AS OF NOVEMBER 15, 1996 [Fiscal years, in millions of dollars]

1997 1997–2001 BA Outlays NEA BA Outlays NEA

House Committee: Agriculture: Allocation ...... 0 0 0 0 0 4,996 Current level ...... 5 5 5 55 55 55 Difference ...... 5 5 5 55 55 ¥4,941 National Security: Allocation ...... ¥1,579 ¥1,579 0 ¥664 ¥664 0 Current level ...... ¥102 ¥102 ¥21 ¥289 ¥289 ¥34 Difference ...... 1,477 1,477 ¥21 375 375 ¥34 Banking, Finance and Urban Affairs: Allocation ...... ¥128 ¥3,700 0 ¥711 ¥4,004 0 Current level ...... 0 ¥6 0 0 0 0 Difference ...... 128 3,694 0 711 4,004 0 Economic and Educational Opportunities: Allocation ...... ¥912 ¥800 ¥152 ¥3,465 ¥3,153 7,669 Current level ...... 1,967 1,635 1,816 11,135 10,296 8,852 Difference ...... 2,879 2,435 1,968 14,600 13,449 1,183 Commerce: Allocation ...... 0 0 370 ¥14,540 ¥14,540 ¥41,710 Current level ...... 3 3 492 242 195 1,430 Difference ...... 3 3 122 14,782 14,735 43,140 International Relations: Allocation ...... 0 0 0 0 0 0 Current level ...... ¥1 ¥1 0 ¥1 ¥1 0 Difference ...... ¥1 ¥1 0 ¥1 ¥1 0 Government Reform and Oversight: Allocation ...... ¥1,078 ¥1,078 ¥289 ¥4,605 ¥4,605 ¥1,668 Current level ...... 0 0 0 0 0 0 Difference ...... 1,078 1,078 289 4,605 4,605 1,668 House Oversight: Allocation ...... 0 0 0 0 0 0 Current level ...... 0 0 0 0 0 0 Difference ...... 0 0 0 0 0 0 Resources: Allocation ...... ¥91 ¥90 ¥12 ¥1,401 ¥1,460 ¥59 Current level ...... ¥19 ¥20 0 ¥144 ¥167 0 Difference ...... 72 70 12 1,257 1,293 59 Judiciary: Allocation ...... 0 0 0 ¥357 ¥357 0 Current level ...... 3 3 0 45 45 0 Difference ...... 3 3 0 402 402 0 Transportation and Infrastructure: Allocation ...... 2,280 0 0 125,989 521 2 Current level ...... 2,345 65 12 4,748 121 56 Difference ...... 65 65 12 ¥121,241 ¥400 54 Science: Allocation ...... 0 0 0 ¥13 ¥13 0 Current level ...... 0 0 0 0 0 0 Difference ...... 0 0 0 13 13 0 Small Business: Allocation ...... 0 0 0 0 0 0 Current level ...... 0 0 0 0 0 0 Difference ...... 0 0 0 0 0 0 Veterans’ Affairs: Allocation ...... ¥90 ¥90 224 ¥919 ¥919 3,475 Current level ...... 0 0 3 0 0 ¥52 Difference ...... 90 90 ¥221 919 919 ¥3,527 Ways and Means: Allocation ...... ¥8,973 ¥9,132 ¥2,057 ¥134,211 ¥134,618 ¥10,743 Current level ...... 8,338 8,302 ¥2,840 73,457 73,476 ¥38,717 Difference ...... 17,311 17,434 ¥783 207,668 208,094 ¥27,974 H238 CONGRESSIONAL RECORD — HOUSE January 21, 1997 DIRECT SPENDING LEGISLATION—COMPARISON OF CURRENT LEVEL WITH COMMITTEE ALLOCATIONS PURSUANT TO BUDGET ACT SECTION 602(a) REFLECTING ACTION COMPLETED AS OF NOVEMBER 15, 1996—Continued [Fiscal years, in millions of dollars]

1997 1997–2001 BA Outlays NEA BA Outlays NEA

Select Committee on Intelligence: Allocation ...... 0 0 0 0 0 0 Current level ...... 0 0 0 2 2 0 Difference ...... 0 0 0 2 2 0 Total authorized: Allocation ...... ¥10,571 ¥16,469 ¥1,916 ¥34,897 ¥163,812 ¥38,038 Current level ...... 12,539 9,884 ¥533 89,250 83,733 ¥28,410 Difference ...... 23,110 26,353 1,383 124,147 247,545 9,628

DISCRETIONARY APPROPRIATIONS FOR FISCAL YEAR 1997—COMPARISON OF CURRENT LEVEL WITH SUBALLOCATIONS PURSUANT TO BUDGET ACT SECTION 602(b) [In millions of dollars]

Revised 602(b) suballocations Current level reflecting action completed as of Defense (September 27, 1996) October 4, 1996 General purpose Violent crime General purpose Violent crime General purpose Violent crime BA O BA O BA O BA O BA O BA O

Agriculture, Rural Development ...... 12,960 13,380 0 0 13,009 13,373 0 0 49 ¥7 0 0 Commerce, Justice, State ...... 24,493 24,939 4,525 2,951 24,838 25,065 4,526 2,954 345 126 1 3 Defense ...... 245,065 243,372 0 0 243,851 242,875 0 0 ¥1,214 ¥497 0 0 District of Columbia ...... 719 719 0 0 719 719 0 0 0 0 0 0 Energy & Water Development ...... 19,421 19,652 0 0 19,973 19,923 0 0 552 271 0 0 Foreign Operations ...... 11,950 13,311 0 0 12,267 13,310 0 0 317 ¥1 0 0 Interior ...... 12,118 12,920 0 0 12,503 13,178 0 0 385 258 0 0 Labor, HHS & Education ...... 65,775 69,842 61 38 71,026 71,517 61 39 5,251 1,675 0 1 Legislative Branch ...... 2,180 2,148 0 0 2,170 2,132 0 0 ¥10 ¥16 0 0 Military Construction ...... 9,983 10,360 0 0 9,982 10,344 0 0 ¥1 ¥16 0 0 Transportation ...... 12,190 35,453 0 0 12,080 35,482 0 0 ¥110 29 0 0 Treasury-Postal Service ...... 11,016 10,971 97 84 11,620 11,292 97 83 604 321 0 ¥1 VA–HUD-Independent Agencies ...... 64,354 78,803 0 0 64,522 79,196 0 0 168 393 0 0 Reserve/Offsets ...... 618 69 0 0 ¥2,750 ¥5,850 0 0 ¥3,368 ¥5,919 0 0 Grand total ...... 492,842 535,939 4,683 3,073 495,810 532,556 4,684 3,076 2,968 ¥3,383 1 3 Note.—Amounts in Current Level column for Reserve/Offsets are for Spectrum sales and BIF/SAIF. Those items are credited to the Appropriations Committee for FY 1997 only.

U.S. CONGRESS, appropriate levels for those items contained [In millions of dollars] CONGRESSIONAL BUDGET OFFICE, in the 1977 Concurrent Resolution on the Washington, DC, January 9, 1997. Budget (H. Con. Res. 178) and are current Budget res- House cur- olution (H. Current Hon. JOHN KASICH, through January 8, 1997. A summary of this rent level Con. Res. level +/¥ Chairman, Committee on the Budget, House of tabulation follows: 178) resolution Representatives, Washington, DC. [In millions of dollars] DEAR MR. CHAIRMAN: Pursuant to section 1997–2001 ...... 5,973,242 5,913,303 +59,939 308(b) and in aid of section 311 of the Con- Budget res- Current gressional Budget Act, as amended, this let- House cur- olution (H. rent level Con. Res. level +/¥ This is my first report for the first session ter and supporting detail provide an up-to- 178) resolution of the 105th Congress. date tabulation of the on-budget current lev- Sincerely, els of new budget authority, estimated out- Budget Authority ...... 1,331,836 1,314,785 +17,051 Outlays ...... 1,323,900 1,311,171 +12,729 JUNE E. O’NEILL, lays, and estimated revenues for fiscal year Revenues: Director. 1997. These estimates are compared to the 1997 ...... 1,101,533 1,083,728 +17,805 PARLIAMENTARIAN STATUS REPORT—105TH CONGRESS, 1ST SESSION, HOUSE ON-BUDGET SUPPORTING DETAIL FOR FISCAL YEAR 1997, AS OF CLOSE OF BUSINESS OCTOBER 4, 1996 [In millions of dollars]

Budget authority Outlays Revenues

PREVIOUSLY ENACTED Revenues ...... 1,100,355 Permanents and other spending legislation ...... 843,140 804,154 ...... Appropriation legislation ...... 238,523 ...... Offsetting receipts ...... ¥199,772 ¥199,772 ...... Total previously enacted ...... 643,368 842,905 1,100,355

ENACTED IN 104TH CONGRESS, 2D SESSION Appropriation Bills: Agriculture (P.L. 104–180) ...... 52,345 44,922 ...... District of Columbia (P.L. 104–194) ...... 719 719 ...... Energy and Water Development (P.L. 104–206) ...... 19,973 13,090 ...... Legislative Branch (P.L. 104–197) ...... 2,166 1,917 ...... Military Construction (P.L. 104–196) ...... 9,982 3,140 ...... Transportation (P.L. 104–205) ...... 12,599 12,270 ...... Veterans, HUD, Independent Agencies (P.L. 104–204) ...... 84,303 49,666 ...... Omnibus Consolidated Appropriations Act (P.L. 104–208)1 ...... 499,841 352,017 ...... Authorization Bills: Taxpayer Bill of Rights 2 (P.L. 104–168) ...... ¥15 Federal Oil & Gas Royalty Simplification & Fairness Act, 1996 (P.L. 104–185) ...... ¥2 ¥2 ...... Small Business Job Protection Act of 1996 (P.L. 104–188) ...... ¥76 ¥76 550 Authorize Voluntary Separation Incentives at the A.I.D. (P.L. 104–190) ...... ¥1 ¥1 ...... Health Insurance Portability & Accountability Act of 1996 (P.L. 104–191) ...... 305 315 590 Personal Responsibility and Work Opportunity Reconciliation Act (P.L. 104–193) ...... 10,080 9,702 60 National Defense Authorization Act (P.L. 104–201) ...... ¥102 ¥102 ...... Railroad Unemployment Insurance Amendments Act of 1996 (P.L. 104–251) ...... 12 12 ...... Federal Aviation Administration Authorization Act of 1996 (P.L. 104–264) ...... 2,330 50 ...... Central Utah Project Completion Act (P.L. 104–296) ...... ¥72 ¥72 ...... Technical Corrections and Amendments to Trade Laws (P.L. 104–295) ...... 1 1 ¥8 Sustainable Fisheries Act (P.L. 104–297) ...... ¥1 1 Navajo-Hopi Land Dispute Settlement Act of 1996 (P.L. 104–301) ...... 48 48 ...... Accountable Pipeline Safety & Partnership Act of 1996 (P.L. 104–304) ...... 3 3 ...... Fairness in Compensating Owners of Patents Used by the U.S. (P.L. 104–308) ...... 3 3 ...... Emergency Drought Relief Act of 1996 (P.L. 104–318) ...... 7 7 ...... Coast Guard Authorization Act of 1995 (P.L. 104–324) ...... 3 3 ...... United States Commemorative Coin Act of 1996 (P.L. 104–329) ...... ¥6 ...... January 21, 1997 CONGRESSIONAL RECORD — HOUSE H239 PARLIAMENTARIAN STATUS REPORT—105TH CONGRESS, 1ST SESSION, HOUSE ON-BUDGET SUPPORTING DETAIL FOR FISCAL YEAR 1997, AS OF CLOSE OF BUSINESS OCTOBER 4, 1996—Continued [In millions of dollars]

Budget authority Outlays Revenues

Total enacted this session ...... 694,467 487,625 1,178

APPROPRIATED ENTITLEMENT AND MANDATORIES Budget resolution baseline estimates of appropriated entitlements and other mandatory programs not yet enacted ...... ¥5,999 ¥6,630 ...... Total Current Level ...... 1,331,836 1,323,900 1,101,533 Total Budget Resolution ...... 1,314,785 1,311,171 1,083,728 Amount remaining: Under Budget Resolution ...... Over Budget Resolution ...... 17,051 12,729 17,805

ADDENDUM Emergencies: Funding that has been designated as an emergency requirement by the President and the Congress ...... 1,550 1,205 ...... Funding that has been designated as an emergency requirement only by the Congress and is not available for obligation until requested by the President ...... 364 323 ...... Total emergencies ...... 1,914 1,528 ...... Total current level including emergencies ...... 1,333,750 1,325,428 1,101,533 1 This act includes 1997 funding for six appropriation bills (Commerce/Justice, Defense, Foreign Operations, Interior, Labor/HHS/Education, and Treasury) and additional appropriations for hurricane and flood recovery, firefighting and antiterrorism. There are also several provisions that affect the following direct spending programs: FCC auction receipts, Bank Insurance Funds, the Food Stamp program, and the Small Business Administration loan program account.

The SPEAKER pro tempore. Under a dolences and sympathy. And, again, for Mr. CAPPS. previous order of the House, the gen- a sterling example, we should turn to Mr. SERRANO. tleman from Pennsylvania [Mr. GEKAS] this legislative leader who showed by Mr. VISCLOSKY. is recognized for 5 minutes. example that the people’s business can Mrs. MEEK of Florida. [Mr. GEKAS addressed the House. His be done, that we can work together Mr. BENTSEN. remarks will appear hereafter in the constructively, at times championing Mr. BERMAN. Extensions of Remarks.] our differences, at times legitimately Mr. KLECZKA. f discussing those challenges at hand. Mr. MARTINEZ. Burton Barr was more than simply a Mr. WAXMAN. TRIBUTE TO THE HONORABLE legislative leader. He was a husband (The following Members (at the re- BURTON BARR and devoted father, and he was a hero quest of Mr. HULSHOF) and to include The SPEAKER pro tempore. Under a of World War II. He earned two Silver extraneous material:) previous order of the House, the gen- Stars for gallantry. But for the people Mr. YOUNG of Florida. tleman from Arizona [Mr. HAYWORTH] of Arizona, his star in the firmament Mr. GALLEGLY. is recognized for 5 minutes. will be his dedication to the people of Ms. ROS-LEHTINEN in two instances. Mr. HAYWORTH. Mr. Speaker, I rise the Grand Canyon State and his record Mr. KING. this afternoon to honor the memory of of accomplishment in leading a legisla- Mr. BASS. one from my home State who qualifies tive body to success in a bipartisan Mr. SOLOMON in three instances. as a legislative legend. His name was manner. Mr. EHRLICH. Burton Barr, and for more than 20 f Mr. HASTERT. years he served with distinction in the Mr. CAMP. LEAVE OF ABSENCE Arizona House of Representatives. Mr. SAXTON. Indeed, Mr. Speaker, as we embark in By unanimous consent, leave of ab- Mr. RADANOVICH. this 105th Congress to do the people’s sence was granted to: Mr. BILIRAKIS. business, we are confronted by a curi- Mrs. CARSON (at the request of Mr. Mr. SMITH of Michigan. ous paradox. It is one that surrounds GEPHARDT), for today, on account of ill- Mr. PACKARD. every legislative body, and it prin- ness. Mr. CUNNINGHAM. cipally centers on this challenge: How do we, in the spirit of bipartisanship, f f at the same time recognize legitimate SPECIAL ORDERS GRANTED ADJOURNMENT differences of opinion and work for the By unanimous consent, permission to Mr. HAYWORTH. Mr. Speaker, I common good? address the House, following the legis- Mr. Speaker, I submit that for a ster- move that the House do now adjourn. lative program and any special orders ling example of how to move forward in The motion was agreed to. heretofore entered, was granted to: a bipartisan way, we need look only so The SPEAKER pro tempore. Pursu- far as to the legislative career of the (The following Member (at the re- ant to the provisions of Senate Concur- late Burton Barr. quest of Mr. PALLONE) to revise and ex- rent Resolution 3, 105th Congress, the Burton Barr in his role as Speaker of tend their remarks and include extra- House stands adjourned until 12:30 p.m. the Arizona statehouse worked effec- neous material:) on Tuesday, February 4, 1997, for morn- tively with members of that body from Mr. MENENDEZ, for 5 minutes, today. ing hour debate. all different walks of life and from both (The following Members (at the re- Thereupon (at 2 o’clock and 24 min- major political parties. Indeed, Mr. quest of Mr. HULSHOF) to revise and ex- utes p.m.), pursuant to Senate Concur- Speaker, no less a person than the cur- tend their remarks and include extra- rent Resolution 3, the House adjourned rent Secretary of the Interior and neous material:) until Tuesday, February 4, 1997, at 12:30 former Arizona Governor Bruce Bab- Mr. KASICH, for 5 minutes, today. p.m. bitt attests to the legislative ability of Mr. GEKAS, for 5 minutes, today. f Burton Barr. Mr. HAYWORTH, for 5 minutes, today. There were those who were cynics f EXECUTIVE COMMUNICATIONS and critics who referred to Mr. Barr as ETC. EXTENSION OF REMARKS the great salesman, but he was more Under clause 2 of rule XXIV, execu- than that. For in recognizing legiti- By unanimous consent, permission to tive communications were taken from mate differences, and yet trying to revise and extend remarks was granted the Speaker’s table and referred as fol- achieve a consensus, Burton Barr went to: lows: (The following Members (at the re- about the people’s business. He was a 1209. A letter from the Administrator, Ag- public servant in the truest sense of quest of Mr. PALLONE) and to include ricultural Marketing Service, transmitting the word. extraneous material:) the Service’s final rule—Regulations Issued To his family and to the people of Ar- Mr. CARDIN. Under the Export Apple and Pear Act; Relax- izona, this House should offer our con- Mr. COSTELLO. ation of Grade Requirements for Apples and H240 CONGRESSIONAL RECORD — HOUSE January 21, 1997 Pears Shipped to Pacific Ports of Russia able as an emergency requirement pursuant ities and Services from the Inventory and [Docket No. FV96–33–1FIR] received January to section 251(b)(2)(D)(i) of the Balanced Resources of the Department of Defense to 10, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to Budget and Emergency Deficit Control Act Support a Peace Monitoring Force in North- the Committee on Agriculture. of 1985, as amended, pursuant to 31 U.S.C. ern Iraq, pursuant to 22 U.S.C. 2348a; to the 1210. A letter from the Administrator, Ag- 1107 (H. Doc. No. 105–26); to the Committee Committee on International Relations. ricultural Marketing Service, transmitting on Appropriations and ordered to be printed. 1230. A letter from the Assistant Secretary the Service’s final rule—Hazelnuts Grown in 1219. A letter from the Under Secretary of for Legislative Affairs, Department of State, Oregon and Washington; Establishment of Defense (Comptroller), Department of De- transmitting a copy of Presidential Deter- Interim and Final Free and Restricted Per- fense, transmitting a report on a violation of mination No. 97–9: Drawdown of Articles, centages for the 1996–97 Marketing Year the Anti-Deficiency Act—Army violation, Services, and Military Education and Train- [Docket No. FV96–982–2IFR] received Janu- case number 97–02, which totaled $27,122, oc- ing from DOD to Provide Anti-Narcotics As- ary 10, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); curred in the fiscal year 1995 operation and sistance to Mexico, pursuant to 22 U.S.C. to the Committee on Agriculture. maintenance, Army [O&M, A] appropriation 2348a; to the Committee on International Re- 1211. A letter from the Administrator, Ag- at the Yakima Training Center, Yakima, lations. ricultural Marketing Service, transmitting WA, pursuant to 31 U.S.C. 1517(b); to the 1231. A communication from the President the Service’s final rule—Onions Grown in Committee on Appropriations. of the United States, transmitting a report South Texas; Assessment Rate [Docket No. 1220. A letter from the Chair, Defense Envi- on developments since his last report on FV96–959–1IFR] received January 10, 1997, ronmental Response Task Force, transmit- July 22, 1996, concerning the national emer- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- ting the report on the actions of the Defense gency with respect to Libya that was de- mittee on Agriculture. Environmental Response Task Force for fis- clared in Executive Order No. 12543 of Janu- 1212. A letter from the Administrator, Ag- cal year 1996, pursuant to Public Law 101–510, ary 7, 1986, pursuant to 50 U.S.C. 1703(c). (H. ricultural Marketing Service, transmitting section 2923(c)(1) (104 Stat. 1821); to the Com- Doc. No. 105–25); to the Committee on Inter- the Service’s final rule—Cranberries Grown mittee on National Security. national Relations and ordered to be printed. in the States of Massachusetts, Rhode Is- 1221. A letter from the Assistant Secretary 1232. A letter from the Assistant Secretary land, Connecticut, New Jersey, Wisconsin, (Installations and Environment), Depart- for Legislative Affairs, Department of State, Michigan, Minnesota, Oregon, Washington, ment of the Navy, transmitting notification transmitting notification that effective De- and Long Island in the State of New York; of the Department’s decision to study cer- cember 23, 1996, the danger pay rate for Peru Change in Reporting Requirements [Docket tain functions performed by military and ci- was designated at the 15 percent level, pursu- No. FV96–929–2FR] received January 10, 1997, vilian personnel in the Department of the ant to 5 U.S.C. 5928; to the Committee on pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- Navy [DON] for possible performance by pri- International Relations. mittee on Agriculture. vate contractors, pursuant to 10 U.S.C. 2304 1233. A letter from the Assistant Secretary 1213. A letter from the Administrator, Ag- note; to the Committee on National Secu- for Legislative Affairs, Department of State, ricultural Marketing Service, transmitting rity. transmitting notification that effective De- the Service’s final rule—Milk in the Iowa 1222. A letter from the Secretary of De- cember 26, 1996, the danger pay rate for Marketing Area; Temporary Revision of Pool fense, transmitting notification that the Chechnya was designated at the 20 percent Supply Plant Shipping Percentage [DA–96– Secretary has approved the retirement of level, pursuant to 5 U.S.C. 5928; to the Com- 16] received January 10, 1997, pursuant to 5 Adm. William J. Flanagan, Jr., U.S. Navy, mittee on International Relations. U.S.C. 801(a)(1)(A); to the Committee on Ag- and certification that Admiral Flanagan has 1234. A letter from the Assistant Secretary riculture. served satisfactorily on active duty in his for Legislative Affairs, Department of State, 1214. A letter from the Administrator, Ag- current grade; to the Committee on National transmitting notification that effective De- ricultural Marketing Service, transmitting Security. cember 26, 1996, the danger pay rate for the the Service’s final rule—Olives Grown in 1223. A letter from the President and Central African Republic was designated at California and Imported Olives; Establish- Chairman, Export-Import Bank of the United the 20 percent level, pursuant to 5 U.S.C. ment of Minimum Quality Requirements for States, transmitting a report involving Unit- 5928; to the Committee on International Re- California and Imported Olives, and Revision ed States exports to the Czech Republic, pur- lations. of Outgoing Inspection Requirements and suant to 12 U.S.C. 635(b)(3)(i); to the Commit- 1235. A letter from the Chairman Pro Tem- Procedures for California Olives [Docket No. tee on Banking and Financial Services. pore, Council of the District of Columbia, FV96–932–2FR] received January 13, 1997, pur- 1224. A letter from the Assistant Secretary transmitting a copy of D.C. Act 11–337, suant to 5 U.S.C. 801(a)(1)(A); to the Commit- of Labor for OSHA, Occupational Safety and ‘‘Highway Trust Fund Establishment Act tee on Agriculture. Health Administration, transmitting the Ad- and the Water and Sewer Authority Amend- 1215. A letter from the Administrator, Ag- ministration’s ‘‘Major’’ final rule—Occupa- ment Act of 1996’’ received January 13, 1997, ricultural Marketing Service, transmitting tional Exposure to Methylene Chloride (RIN: pursuant to D.C. Code, section 1–233(c)(1); to the Service’s final rule—Spearmint Oil Pro- 1218–AA98) received January 10, 1997, pursu- the Committee on Government Reform and duced in the Far West; Revision of the Sal- ant to 5 U.S.C. 801(a)(1)(A); to the Committee Oversight. able Quantity and Allotment Percentage for on Education and the Workforce. 1236. A letter from the Chairman Pro Tem- Class 3 (Native) Spearmint Oil for the 1996–97 1225. A letter from the Secretary of En- pore, Council of the District of Columbia, Marketing Year [Docket No. FV96–985–3FR] ergy, transmitting a copy of the annual re- transmitting a copy of D.C. Act 11–338, received January 13, 1997, pursuant to 5 port on the Coke Oven Emission Control Pro- ‘‘Business Corporation Two-Year Report U.S.C. 801(a)(1)(A); to the Committee on Ag- gram for fiscal year 1995, pursuant to Public Amendment Act of 1996’’ received January riculture. Law 101–549, section 301 (104 Stat. 2559); to 13, 1997, pursuant to D.C. Code, section 1– 1216. A letter from the Administrator, Ag- the Committee on Commerce. 233(c)(1); to the Committee on Government ricultural Marketing Service, transmitting 1226. A letter from the Chief Financial Offi- Reform and Oversight. the Service’s final rule—Peanuts Marketed cer, National Aeronautics and Space Admin- 1237. A letter from the Chairman Pro Tem- in the United States; Changes in Handling istration, transmitting the Administration’s pore, Council of the District of Columbia, and Disposition Requirements [Docket Nos. 1996 annual report to Congress on the Fed- transmitting a copy of D.C. Act 11–339, ‘‘Fire FV96–997–1FR; FV96–998–4FR; FV96–999–3FR] eral Facilities Compliance Act mixed waste Code Amendment Act of 1996’’ received Janu- received January 13, 1997, pursuant to 5 activities, pursuant to 42 U.S.C. 6965; to the ary 13, 1997, pursuant to D.C. Code, section 1– U.S.C. 801(a)(1)(A); to the Committee on Ag- Committee on Commerce. 233(c)(1); to the Committee on Government riculture. 1227. A letter from the Assistant Secretary Reform and Oversight. 1217. A letter from the Administrator, Ag- for Legislative Affairs, Department of State, 1238. A letter from the Chairman Pro Tem- ricultural Marketing Service, transmitting transmitting the Department’s report on nu- pore, Council of the District of Columbia, the Service’s final rule—Cotton Research clear nonproliferation in South Asia for the transmitting a copy of D.C. Act 11–342, and Promotion Program: Determination of period April 1, 1996, through September 30, ‘‘International Registration Plan Agreement Sign-up Eligibility, and Procedure for the 1996, pursuant to 22 U.S.C. 237; to the Com- Temporary Amendment Act of 1996’’ received Conduct of a Sign-up Period for Determina- mittee on International Relations. January 13, 1997, pursuant to D.C. Code, section of Whether to Conduct a Referendum 1228. A letter from the Assistant Secretary tion 1–233(c)(1); to the Committee on Govern- Regarding the 1990 Amendments to the Cot- for Legislative Affairs, Department of State, ment Reform and Oversight. ton Research and Promotion Act [CN–96–008] transmitting a copy of Presidential Deter- 1239. A letter from the Chairman Pro Tem- received January 14, 1997, pursuant to 5 mination No. 97–14: Drawdown from DOD Ar- pore, Council of the District of Columbia, U.S.C. 801(a)(1)(A); to the Committee on Ag- ticles and Services for Assistance for Vic- transmitting a copy of D.C. Act 11–347, riculture. tims of Conflict and Other Persons at Risk ‘‘Health Services Planning Program Re-es- 1218. A communication from the President from Northern Iraq, pursuant to 22 U.S.C. tablishment Act of 1996’’ received January of the United States transmitting his re- 2601(c)(3); to the Committee on International 13, 1997, pursuant to D.C. Code, section 1–233 quest to make available appropriations to- Relations. (c)(1); to the Committee on Government Re- taling $5 million in budget authority for the 1229. A letter from the Assistant Secretary form and Oversight. Department of Health and Human Services’ for Legislative Affairs, Department of State, 1240. A letter from the Chairman Pro Tem- Low Income Home Energy Assistance Pro- transmitting a copy of Presidential Deter- pore, Council of the District of Columbia, gram, and designate the amount made avail- mination No. 97–12: Drawdown of Commod- transmitting a copy of D.C. Act 11–349, ‘‘Oak January 21, 1997 CONGRESSIONAL RECORD — HOUSE H241 Hill Youth Center Educational Contracting 1251. A letter from the Chairman Pro Tem- 1262. A letter from the Chairman Pro Tem- Temporary Act of 1996’’ received January 13, pore, Council of the District of Columbia, pore, Council of the District of Columbia, 1997, pursuant to D.C. Code, section 1– transmitting a copy of D.C. Act 11–433, ‘‘BNA transmitting a copy of D.C. Act 11–380, ‘‘Real 233(c)(1); to the Committee on Government Washington Inc., Real Property Tax Deferral Property Tax Reassessment Temporary Act Reform and Oversight. Temporary Amendment Act of 1996’’ received of 1996’’ received January 16, 1997, pursuant 1241. A letter from the Chairman Pro Tem- January 16, 1997, pursuant to D.C. Code, sec- to D.C. Code, section 1–233(c)(1); to the Com- pore, Council of the District of Columbia, tion 1–233(c)(1); to the Committee on Govern- mittee on Government Reform and Over- transmitting a copy of D.C. Act 11–358, ‘‘Ex- ment Reform and Oversight. sight. tension of the Moratorium on Retail Service 1252. A letter from the Chairman Pro Tem- 1263. A letter from the Chairman Pro Tem- Station Conversions and the Gas Station Ad- pore, Council of the District of Columbia, pore, Council of the District of Columbia, visory Board Amendment Act of 1996’’ re- transmitting a copy of D.C. Act 11–432, ‘‘New transmitting a copy of D.C. Act 11–378, ‘‘Pa- ceived January 13, 1997, pursuant to D.C. Hires Police Officers, Fire Fighters, and ternity Acknowledgment and Gas Station Code, section 1–233(c)(1); to the Committee Teachers Pension Modification Amendment Advisory Board Re-establishment Temporary on Government Reform and Oversight. Act of 1996’’ received January 16, 1997, pursu- Act of 1996’’ received January 16, 1997, pursu- 1242. A letter from the Chairman Pro Tem- ant to D.C. Code, section 1–233(c)(1); to the ant to D.C. Code, section 1–233(c)(1); to the pore, Council of the District of Columbia, Committee on Government Reform and Committee on Government Reform and transmitting a copy of D.C. Act 11–354, Oversight. Oversight. ‘‘Board of Real Property Assessments and 1253. A letter from the Chairman Pro Tem- 1264. A letter from the Chairman Pro Tem- Appeals Membership Qualification Act of pore, Council of the District of Columbia, pore, Council of the District of Columbia, 1996’’ received January 13, 1997, pursuant to transmitting a copy of D.C. Act 11–431, ‘‘Zero transmitting a copy of D.C. Act 11–374, ‘‘Pub- D.C. Code, section 1–233(c)(1); to the Commit- Tolerance for Guns Amendment Act of 1996’’ lic Assistance Fair Hearing Procedures Tem- tee on Government Reform and Oversight. received January 16, 1997, pursuant to D.C. porary Amendment Act of 1996’’ received 1243. A letter from the Chairman Pro Tem- Code, section 1–233(c)(1); to the Committee January 16, 1997, pursuant to D.C. Code, sec- pore, Council of the District of Columbia, on Government Reform and Oversight. tion 1–233(c)(1); to the Committee on Govern- transmitting a copy of D.C. Act 11–355, ‘‘Holy 1254. A letter from the Chairman Pro Tem- ment Reform and Oversight. Comforter-Saint Cyprian Roman Catholic pore, Council of the District of Columbia, 1265. A letter from the Chairman Pro Tem- Church Equitable Real Property Tax Relief transmitting a copy of D.C. Act 11–392, ‘‘Re- pore, Council of the District of Columbia, Act of 1996’’ received January 13, 1997, pursu- organization Plan No. 5 for the Department transmitting a copy of D.C. Act 11–372, ant to D.C. Code, section 1–233(c)(1); to the of Human Services and Department of Cor- ‘‘Testing of District Government Drivers of Committee on Government Reform and rections Temporary Act of 1996’’ received Commercial Motor Vehicles for Alcohol and Oversight. January 16, 1997, pursuant to D.C. Code, sec- Controlled Substances Temporary Amend- 1244. A letter from the Chairman Pro Tem- tion 1–233(c)(1); to the Committee on Govern- ment Act of 1996’’ received January 16, 1997, pore, Council of the District of Columbia, ment Reform and Oversight. pursuant to D.C. Code, section 1–233(c)(1); to transmitting a copy of D.C. Act 11–359, 1255. A letter from the Chairman Pro Tem- the Committee on Government Reform and ‘‘Housing Finance Agency Loan Forgiveness pore, Council of the District of Columbia, Amendment Act of 1996’’ received January transmitting a copy of D.C. Act 11–391, ‘‘Drug Oversight. 1266. A letter from the Chairman Pro Tem- 13, 1997, pursuant to D.C. Code, section 1– Paraphernalia Amendment Act of 1996’’ re- pore, Council of the District of Columbia, 233(c)(1); to the Committee on Government ceived January 16, 1997, pursuant to D.C. transmitting a copy of D.C. Act 11–371, ‘‘Lot- Reform and Oversight. Code, section 1–233(c)(1); to the Committee tery Games Amendment Act of 1996’’ re- 1245. A letter from the Chairman Pro Tem- on Government Reform and Oversight. pore, Council of the District of Columbia, 1256. A letter from the Chairman Pro Tem- ceived January 16, 1997, pursuant to D.C. transmitting a copy of D.C. Act 11–360, ‘‘Fis- pore, Council of the District of Columbia, Code, section 1–233(c)(1); to the Committee cal Year 1997 Budget Support Act of 1996’’ re- transmitting a copy of D.C. Act 11–389, on Government Reform and Oversight. ceived January 13, 1997, pursuant to D.C. ‘‘Health and Hospitals Public Benefit Cor- 1267. A letter from the Chairman Pro Tem- Code, section 1–233(c)(1); to the Committee poration Act of 1996’’ received January 16, pore, Council of the District of Columbia, on Government Reform and Oversight. 1997, pursuant to D.C. Code, section 1– transmitting a copy of D.C. Act 11–367, ‘‘Med- 1246. A letter from the Chairman Pro Tem- 233(c)(1); to the Committee on Government icare Supplement Insurance Minimum pore, Council of the District of Columbia, Reform and Oversight. Standards Amendment Act of 1996’’ received transmitting a copy of D.C. Act 11–363, 1257. A letter from the Chairman Pro Tem- January 16, 1997, pursuant to D.C. Code, sec- ‘‘Modification Reduction-in-Force Tem- pore, Council of the District of Columbia, tion 1–233(c)(1); to the Committee on Govern- porary Amendment Act of 1996’’ received transmitting a copy of D.C. Act 11–387, ‘‘Clos- ment Reform and Oversight. January 13, 1997, pursuant to D.C. Code, sec- ing of a Public Alley in Square 375, S.O. 95– 1268. A letter from the Chairman Pro Tem- tion 1–233(c)(1); to the Committee on Govern- 54, Act of 1996’’ received January 16, 1997, pore, Council of the District of Columbia, ment Reform and Oversight. pursuant to D.C. Code, section 1–233(c)(1); to transmitting a copy of D.C. Act 11–343, 1247. A letter from the Chairman Pro Tem- the Committee on Government Reform and ‘‘Council Contract Approval Modification pore, Council of the District of Columbia, Oversight. Temporary Amendment Act of 1995 Tem- transmitting a copy of D.C. Act 11–361, ‘‘Ad- 1258. A letter from the Chairman Pro Tem- porary Amendment Act of 1996’’ received justment Process for Nonviolent Juvenile Of- pore, Council of the District of Columbia, January 16, 1997, pursuant to D.C. Code, sec- fenders and Parent Participation in Court- transmitting a copy of D.C. Act 11–386, tion 1–233(c)(1); to the Committee on Govern- Ordered Proceedings Act of 1996’’ received ‘‘Cable Television Franchise Amendment Act ment Reform and Oversight. January 13, 1997, pursuant to D.C. Code, sec- of 1996’’ received January 16, 1997, pursuant 1269. A letter from the Chairman Pro Tem- tion 1–233(c)(1); to the Committee on Govern- to D.C. Code, section 1–233(c)(1); to the Com- pore, Council of the District of Columbia, ment Reform and Oversight. mittee on Government Reform and Over- transmitting a copy of D.C. Act 11–341, ‘‘Dis- 1248. A letter from the Chairman Pro Tem- sight. trict of Columbia Employee Viatical Settle- pore, Council of the District of Columbia, 1259. A letter from the Chairman Pro Tem- ment Temporary Amendment Act of 1996’’ transmitting a copy of D.C. Act 11–415, ‘‘Real pore, Council of the District of Columbia, received January 16, 1997, pursuant to D.C. Property Tax Rates for Tax year 1997 Tem- transmitting a copy of D.C. Act 11–364, Code, section 1–233(c)(1); to the Committee porary Amendment Act of 1996’’ received ‘‘Boating While Intoxicated Temporary Act on Government Reform and Oversight. January 16, 1997, pursuant to D.C. Code, sec- of 1996’’ received January 16, 1997, pursuant 1270. A letter from the Chairman Pro Tem- tion 1–233(c)(1); to the Committee on Govern- to D.C. Code, section 1–233(c)(1); to the Com- pore, Council of the District of Columbia, ment Reform and Oversight. mittee on Government Reform and Over- transmitting a copy of D.C. Act 11–340, ‘‘Al- 1249. A letter from the Chairman Pro Tem- sight. coholic Beverage Underage Penalties Amend- pore, Council of the District of Columbia, 1260. A letter from the Chairman Pro Tem- ment Act of 1996’’ received January 16, 1997, transmitting a copy of D.C. Act 11–413, ‘‘Oys- pore, Council of the District of Columbia, pursuant to D.C. Code, section 1–233(c)(1); to ter Elementary School Modernization and transmitting a copy of D.C. Act 11–370, ‘‘Clos- the Committee on Government Reform and Development Project Temporary Act of 1996’’ ing of Public Alleys and Abandonment and Oversight. received January 16, 1997, pursuant to D.C. Establishment of Easements in Square 878, 1271. A letter from the Chairman Pro Tem- Code, section 1–233(c)(1); to the Committee S.O. 95–38, Act of 1996’’ received January 16, pore, Council of the District of Columbia, on Government Reform and Oversight. 1997, pursuant to D.C. Code, section transmitting the Council of the District of 1250. A letter from the Chairman Pro Tem- 1–233(c)(1); to the Committee on Government Columbia’s statement on District of Colum- pore, Council of the District of Columbia, Reform and Oversight. bia Financial Responsibility and Manage- transmitting a copy of D.C. Act 11–434, ‘‘Dis- 1261. A letter from the Chairman Pro Tem- ment Assistance Authority ‘‘Resolution, trict of Columbia Moratorium on the 1997 pore, Council of the District of Columbia, Recommendations and Order Concerning the Real Property Assessments for Real Prop- transmitting a copy of D.C. Act 11–384, Lottery Board,’’ dated September 21, 1996, re- erty Tax Year 1998 Temporary Amendment ‘‘Preservation of Residential Neighborhoods ceived December 20, 1996, pursuant to section Act of 1996’’ received January 16, 1997, pursu- Against Nuisances Temporary Act of 1996’’ 207(b) of Public Law 104–8; to the Committee ant to D.C. Code, section 1–233(c)(1); to the received January 16, 1997, pursuant to D.C. on Government Reform and Oversight. Committee on Government Reform and Code, section 1–233(c)(1); to the Committee 1272. A letter from the Chairman and CEO, Oversight. on Government Reform and Oversight. Farm Credit Administration, transmitting H242 CONGRESSIONAL RECORD — HOUSE January 21, 1997 the annual report of the Farm Credit Admin- terior, transmitting a report on an increase 1295. A letter from the Assistant Secretary istration for calendar year 1996, pursuant to in the projected cost for the safety of dams for Legislative Affairs, Department of State, 12 U.S.C. 2252(a)(3); to the Committee on modifications at Bumping Lake Dam, Yak- transmitting the Secretary’s certification to Government Reform and Oversight. ima project, Washington, pursuant to 43 the Congress regarding the incidental cap- 1273. A letter from the Chairman, Merit U.S.C. 509; to the Committee on Resources. ture of Sea Turtles in commercial shrimping Systems Protection Board, transmitting the 1285. A letter from the Assistant Secretary operations (China), pursuant to Public Law Board’s report for fiscal year 1995 listing the for Fish and Wildlife and Parks, Department 101–162, section 609(b)(2) (103 Stat. 1038); number of appeals submitted, the number of the Interior, transmitting the Depart- jointly, to the Committees on Resources and processed to completion, and the number not ment’s final rule—Visitor Service Authoriza- Appropriations. completed by the originally announced date, tions on Alaska National Wildlife Refuges 1296. A letter from the Chairman, National pursuant to 5 U.S.C. 7701(i)(2); to the Com- (RIN: 1018–AC02) received January 10, 1997, Transportation Safety Board, transmitting a mittee on Government Reform and Over- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- copy of the Board’s request for supplemental sight. mittee on Resources. funding for fiscal year 1997, pursuant to 49 1274. A letter from the Chairman, National 1286. A letter from the Director, Fish and U.S.C. app. 1903(b)(7); jointly, to the Commit- Mediation Board, transmitting the fiscal Wildlife Service, transmitting the Service’s tees on Transportation and Infrastructure year 1996 annual report under the Federal final rule—Endangered and Threatened Wild- and Appropriations. Managers’ Financial Integrity Act [FMFIA] life and Plants; Determination of Endan- 1297. A letter from the Secretaries of Vet- of 1982, pursuant to 31 U.S.C. 3512(c)(3); to the gered Status for the Laguna Mountain Skip- erans Affairs and Defense, transmitting a report on the implementation of the health re- Committee on Government Reform and per and Quino Checkerspot Butterfly (RIN: sources sharing portion of the Department of Oversight. 1018–AC84) received January 13, 1997, pursu- Veterans Affairs and Department of Defense 1275. A letter from the Independent Coun- ant to 5 U.S.C. 801(a)(1)(A); to the Committee Health Resources Sharing and Emergency sel, Office of Independent Counsel, transmit- on Resources. ting the semiannual report on the activities 1287. A letter from the Director, Adminis- Operations Act for fiscal year 1996, pursuant of the Office of Inspector General for the pe- trative Office of the U.S. Courts, transmit- to 38 U.S.C. 8111(f); jointly, to the Commit- tees on Veterans’ Affairs and National Secu- riod April 1, 1996, through September 30, 1996, ting the Judicial Conference of the United rity. pursuant to 5 U.S.C. app. (Insp. Gen. Act) States biennial report to the Congress on the section 5(b); to the Committee on Govern- 1298. A letter from the Assistant Attorney continuing need for all authorized bank- General of the United States, transmitting a ment Reform and Oversight. ruptcy judgeships, pursuant to 28 U.S.C. 1276. A letter from the Director, Office of draft of proposed legislation entitled ‘‘Envi- 152(b)(2); to the Committee on the Judiciary. ronmental Crimes and Enforcement Act of Personnel Management, transmitting the 1288. A letter from the Secretary, Judicial 1997’’; jointly, to the Committees on the Ju- agency’s annual report on drug and alcohol Conference of the United States, transmit- abuse prevention, treatment, and rehabilita- diciary, Agriculture, Commerce, Resources, ting a draft of proposed legislation to pro- tion programs and services for Federal civil- and Transportation and Infrastructure. vide for the conversion of existing temporary ian employees covering fiscal year 1995, pur- U.S. district judgeships to permanent status, f suant to 5 U.S.C. 7363; to the Committee on and for other purposes; to the Committee on Government Reform and Oversight. PUBLIC BILLS AND RESOLUTIONS 1277. A letter from the Secretary of the the Judiciary. 1289. A letter from the Acting Adminis- Under clause 5 of rule X and clause 4 Treasury, transmitting the semiannual re- trator, Federal Aviation Administration, of rule XXII public bills and resolu- port on activities of the inspector general for transmitting a report on the aircraft cabin tions were introduced and severally re- the period April 1, 1996, through September 30, 1996, and the Secretary’s semiannual re- air quality research program, pursuant to ferred as follows: port for the same period, pursuant to 5 Public Law 103–305, section 304(e)(2) (108 Stat. By Mr. TORRES (for himself and Mr. 1592); to the Committee on Transportation U.S.C. app. (Insp. Gen. Act) section 5(b); to PASTOR): the Committee on Government Reform and and Infrastructure. H.R. 452. A bill to amend the Indian Gam- 1290. A letter from the Director, National Oversight. ing Regulatory Act to provide adequate and 1278. A letter from the Secretary of Com- Legislative Commission, the American Le- certain remedies for sovereign tribal govern- merce, transmitting the fiscal year 1996 an- gion, transmitting the proceedings of the ments, and for other purposes; to the Com- nual report under the Federal Managers’ Fi- 78th National Convention of the American mittee on Resources, and in addition to the nancial Integrity Act [FMFIA] of 1982, pursu- Legion, held in Salt Lake City, UT on Sep- Committees on the Judiciary, and Ways and ant to 31 U.S.C. 3512(c)(3); to the Committee tember 3, 4, and 5, 1996, as well as a report on Means, for a period to be subsequently deter- on Government Reform and Oversight. the organization’s activities from the year mined by the Speaker, in each case for con- 1279. A letter from the Chairman, U.S. preceding the convention, pursuant to 36 sideration of such provisions as fall within Merit Systems Protection Board, transmit- U.S.C. 49 (H. Doc. No. 105–27); to the Commit- the jurisdiction of the committee concerned. ting a copy of the annual report in compli- tee on Veterans’ Affairs and ordered to be By Mr. ACKERMAN (for himself, Mr. ance with the Government in the Sunshine printed. ABERCROMBIE, Mr. ANDREWS, Mr. Act during the calendar year 1996, pursuant 1291. A communication from the President DELLUMS, Mr. FARR of California, Mr. to 5 U.S.C. 552b(j); to the Committee on Gov- of the United States, transmitting an up- FRANKS of New Jersey, Mr. KLECZKA, ernment Reform and Oversight. dated report concerning the emigration laws Mr. LANTOS, Mr. MORAN of Virginia, 1280. A letter from the Chairman of the and policies of Mongolia, pursuant to 19 Ms. NORTON, Mr. OWENS, Mr. SCHU- Board of Governors, U.S. Postal Service, U.S.C. 2432(b) (H. Doc. No. 105–24); to the MER, Mr. SHAYS, and Mr. WAXMAN): transmitting a copy of the annual report in Committee on Ways and Means and ordered H.R. 453. A bill to amend the Packers and compliance with the Government in the Sun- to be printed. Stockyards Act, 1921, to make it unlawful for shine Act during the calendar year 1996, pur- 1292. A letter from the Secretary of De- any stockyard owner, market agency, or suant to 5 U.S.C. 552b(j); to the Committee fense, transmitting the Advisory Committee dealer to transfer or market nonambulatory on Government Reform and Oversight. on Judicial Review of Military Administra- cattle, sheep, swine, horses, mules, or goats, 1281. A letter from the Chairman, Federal tive Personnel Actions findings and rec- and for other purposes; to the Committee on Election Commission, transmitting proposed ommendations, pursuant to section 551 of the Agriculture. regulations governing electronic filing of re- National Defense Authorization Act for fis- By Mr. ACKERMAN: ports by political committees, pursuant to 2 cal year 1996; jointly, to the Committees on H.R. 454. A bill to amend the Violent Crime U.S.C. 438(d); to the Committee on House National Security and the Judiciary. Control and Law Enforcement Act of 1994 to Oversight. 1293. A letter from the Secretary of Health provide enhanced penalties for crimes 1282. A letter from the Assistant Adminis- and Human Services, transmitting notifica- against elderly and child victims; to the trator for Fisheries, National Oceanic and tion that the Department of Health and Committee on the Judiciary. Atmospheric Administration, transmitting Human Services is allotting emergency By Mr. ACKERMAN (for himself, Mr. notification that due to the discontinued funds made available under section 2602(e) of FORBES, Mr. KING, Mr. LAZIO of New funding for the emergency striped bass re- the Low-Income Home Energy Assistance York, Mr. MANTON, Mrs. MCCARTHY search study, the annual report on that Act of 1981 to North Dakota and South Da- of New York, Mr. SCHUMER, Mr. study will no longer be transmitted to Con- kota and the tribes located in those States, SHAYS, Mr. TOWNS, and Ms. NORTON): gress, pursuant to 16 U.S.C. 757g(b); to the pursuant to 42 U.S.C. 8623(g); jointly, to the H.R. 455. A bill to authorize the Adminis- Committee on Resources. Committees on Commerce and Education trator of the Environmental Protection 1283. A letter from the Secretary of Com- and the Workforce. Agency to make grants to the States of New merce, transmitting the Secretary’s certifi- 1294. A letter from the Secretary of Trans- York and Connecticut for the purpose of cation that Italy has terminated large-scale portation, transmitting notification of the demonstrating methods of improving water driftnet fishing by its nationals and vessels, actions the Secretary has taken regarding quality in Long Island Sound; to the Com- pursuant to Public Law 100–220, section security measures at Eldorado International mittee on Transportation and Infrastruc- 4004(b) (101 Stat. 1478); to the Committee on Airport, Bogota, Colombia, pursuant to 49 ture. Resources. U.S.C. 44907(d)(3); jointly, to the Committees By Mr. ACKERMAN (for himself, Mr. 1284. A letter from the Commissioner, Bu- on International Relations and Transpor- DELLUMS, Mr. EVANS, and Ms. NOR- reau of Reclamation, Department of the In- tation and Infrastructure. TON): January 21, 1997 CONGRESSIONAL RECORD — HOUSE H243

H.R. 456. A bill to amend chapter 211 of investment necessary to revitalize commu- Georgia, Mr. JONES, Mr. MCHUGH, Mr. title 49, United States Code, with respect to nities within the United States, and for FOX of Pennsylvania, Mr. WELLER, hours of service of railroad employees, and other purposes; to the Committee on Ways Mr. BONO, Mr. DAVIS of Virginia, Mrs. for other purposes; to the Committee on and Means. MORELLA, Mr. GALLEGLY, Mr. Transportation and Infrastructure. By Mr. EVANS (for himself, Ms. BROWN CHABOT, Mr. MCINTOSH, Mr. PAXON, By Mr. CASTLE: of Florida, Mr. DEFAZIO, Mrs. MEEK Mr. WAMP, Mr. LINDER, Mr. QUINN, H.R. 457. A bill to amend the Congressional of Florida, Mr. HOLDEN, Mr. Mr. RIGGS, Mr. STEARNS, and Mr. Budget Act of 1974 to provide for budgeting GUTIERREZ, Mr. DELLUMS, Mr. BUYER): for emergencies through the establishment MCDERMOTT, Mr. FILNER, Mr. H.R. 474. A bill to improve the criminal law of a budget reserve account, and for other UNDERWOOD, Mr. MARTINEZ, Mr. TAL- relating to fraud against consumers; to the purposes; to the Committee on the Budget, ENT, Mr. FROST, Mr. FALEOMAVAEGA, Committee on the Judiciary. and in addition to the Committee on Rules, Mr. BARCIA, and Mr. BRYANT): By Mr. GREENWOOD (for himself and for a period to be subsequently determined H.R. 466. A bill to amend title 38, United Mr. STENHOLM): by the Speaker, in each case for consider- States Code, to extend the period of time for H.R. 475. A bill to amend title XVIII of the ation of such provisions as fall within the ju- the manifestation of chronic disabilities due Social Security Act to provide for offering risdiction of the committee concerned. to undiagnosed symptoms in veterans who the option of Medicare coverage through By Mr. CLEMENT: served in the Persian Gulf war in order for H.R. 458. A bill to amend the Federal Elec- qualified provider-sponsored organizations those disabilities to be compensable by the [PSO’s], and for other purposes; to the Com- tion Campaign Act of 1971 to ban soft money Secretary of Veterans Affairs; to the Com- in elections for Federal office, and for other mittee on Commerce, and in addition to the mittee on Veterans’ Affairs. purposes; to the Committee on House Over- Committees on Ways and Means, and the Ju- By Mr. EWING: diciary, for a period to be subsequently de- sight. H.R. 467. A bill to amend the Commodity By Mr. COBURN (for himself, Mr. termined by the Speaker, in each case for Exchange Act to provide a conditional ex- consideration of such provisions as fall with- CANADY of Florida, Mr. CARDIN, Mr. emption for certain transactions involving in the jurisdiction of the committee con- DAVIS of Virginia, Mr. DEAL of Geor- professional markets, to clarify the effect of cerned. gia, Mr. DEFAZIO, Mr. EHLERS, Mr. the designation of a board of trade as a con- By Mr. GUTIERREZ (for himself, Mr. FOLEY, Mr. HOSTETTLER, Mr. tract market, to simplify the process for im- BERMAN, Mr. MCDERMOTT, Mr. LARGENT, Mr. LEWIS of Georgia, Mr. plementing contract market rules, to regu- FILNER, Mr. WYNN, Mr. MILLER of LOBIONDO, Mrs. LOWEY, Mr. MCHUGH, late audit trail requirements, to establish California, Mr. STARK, Mr. SABO, Mr. Mr. NORWOOD, Mr. PALLONE, Ms. cost-benefits analysis requirements, to com- NADLER, Mr. YATES, Ms. WOOLSEY, PELOSI, Mr. REGULA, Mr. SANDERS, bat fraud in transactions in or involving for- Mr. FLAKE, Mr. ABERCROMBIE, Mr. Mr. STARK, Mr. STUMP, and Mr. eign currency, and for other purposes; to the DELLUMS, Ms. MCKINNEY, Mr. WELDON of Florida): Committee on Agriculture. H.R. 459. A bill to amend title XVIII of the SERRANO, Ms. NORTON, Ms. PELOSI, By Mr. FILNER: Social Security Act to require health main- and Mr. ENGEL): H.R. 468. A bill to amend section 8 of the H.R. 476. A bill to prohibit the possession tenance organizations participating in the United States Housing Act of 1937 to provide Medicare Program to assure access to out-of- or transfer of nonsporting handguns; to the for rental assistance payments to assist cer- Committee on the Judiciary. network services to Medicare beneficiaries tain owners of manufactured homes who rent enrolled with such organizations; to the By Mr. HEFLEY: the lots on which their homes are located; to Committee on Ways and Means, and in addi- H.R. 477. A bill to amend titles 23 and 49, the Committee on Banking and Financial tion to the Committee on Commerce, for a United States Code, relating to metropolitan Services. planning; to the Committee on Transpor- period to be subsequently determined by the H.R. 469. A bill to amend the Veterans’ tation and Infrastructure. Speaker, in each case for consideration of Benefits Improvement Act of 1996 to elimi- By Mr. HERGER (for himself and Mr. such provisions as fall within the jurisdic- nate the requirements that members of the POMBO): tion of the committee concerned. Commission on Service members and Veter- H.R. 478. A bill to amend the Endangered By Mr. CONDIT: ans Transition Assistance to allocated to H.R. 460. A bill to amend the Housing Act Species Act of 1973 to improve the ability of separate programs; to the Committee on of 1949 to provide for private servicing of individuals and local, State, and Federal Veterans’ Affairs. rural housing loans made under section 502 H.R. 470. A bill to curtail illegal immigra- agencies to comply with that act in building, of such act; to the Committee on Banking tion through increased enforcement of the operating, maintaining, or repairing flood and Financial Services. employer sanctions provisions in the Immi- control projects, facilities, or structures; to H.R. 461. A bill to amend the Internal Rev- the Committee on Resources. enue Code of 1986 to allow a credit against gration and Nationality Act and related laws; to the Committee on the Judiciary, By Mr. HERGER: income tax for the purchase and installation H.R. 479. A bill to amend the Internal Rev- of agricultural water conservation systems; and in addition to the Committee on Edu- cation and the Workforce, for a period to be enue Code of 1986 to clarify the treatment of to the Committee on Ways and Means. funeral trusts; to the Committee on Ways By Mr. COSTELLO: subsequently determined by the Speaker, in each case for consideration of such provi- and Means. H.R. 462. A bill to amend the Federal Elec- H.R. 480. A bill to amend the Internal Rev- tion Campaign Act of 1971 to control House sions as fall within the jurisdiction of the committee concerned. enue Code of 1986 to ensure that members of of Representatives campaign spending, and tax-exempt organizations are notified of the for other purposes; to the Committee on By Mr. GALLEGLY: H.R. 471. A bill to amend the Immigration portion of their dues used for political and House Oversight. lobbying activities, and for other purposes; ELAURO: and Nationality Act to not count work expe- By Ms. D to the Committee on Ways and Means. H.R. 463. A bill to prohibit, in connection rience as an unauthorized alien for purposes By Ms. KAPTUR: with the termination of Army activities at of admission as an employment-based immi- the Stratford Army Engine Plant, Stratford, grant or an H–1B nonimmigrant; to the Com- H.R. 481. A bill to provide for the establish- CT, the expenditure of Federal funds to cover mittee on the Judiciary. ment of a professional trade service corps, the costs of relocating a Government con- By Mr. GILCHREST: and for other purposes; to the Committee on tractor currently located at that installa- H.R. 472. A bill to amend the Federal Elec- Government Reform and Oversight, and in tion; to the Committee on National Secu- tion Campaign Act of 1971 to prohibit addition to the Committee on the Judiciary, rity. nonparty multicandidate political commit- for a period to be subsequently determined By Mr. ENGLISH of Pennsylvania (for tee contributions in elections for Federal of- by the Speaker, in each case for consider- himself, Mr. UPTON, Mr. HORN, and fice; to the Committee on House Oversight. ation of such provisions as fall within the ju- Mr. LAZIO of New York): H.R. 473. A bill to amend the Federal Elec- risdiction of the committee concerned. H.R. 464. A bill to amend title II of the So- tion Campaign Act of 1971 to prohibit By Mr. LAZIO of New York: cial Security Act to establish, for purposes nonparty multicandidate political commit- H.R. 482. A bill to amend the Public Health of disability determinations under such title, tee contributions in elections for Federal of- Service Act to provide a one-stop informa- a uniform minimum level of earnings, for fice, and for other purposes; to the Commit- tion service for individuals with serious life- demonstrating ability to engage in substan- tee on House Oversight. threatening diseases; to the Committee on tial gainful activity, at the level currently By Mr. GOODLATTE (for himself, Mr. Commerce. applicable solely to blind individuals; to the MCCOLLUM, Mr. BARTLETT of Mary- By Mr. LEACH: Committee on Ways and Means. land, Mr. SAXTON, Mr. WELDON of H.R. 483. A bill to authorize appropriations By Mr. ENGLISH of Pennsylvania (for Pennsylvania, Mr. CANADY of Florida, for the payment of U.S. arrearages to the himself, Mr. SAXTON, Mr. RAHALL, Mr. SMITH of Texas, Mr. COBLE, Mr. United Nations; to the Committee on Inter- Mr. GRAHAM, Mr. FROST, Mr. SCHIFF, Mr. BOUCHER, Mrs. CUBIN, Mr. national Relations. SERRANO, Mr. HINOJOSA, and Ms. COMBEST, Mr. GEKAS, Mr. BURR of By Mrs. MYRICK (for herself and Mr. WOOLSEY): North Carolina, Mr. EHLERS, Mr. PORTER): H.R. 465. A bill to amend the Internal Rev- SMITH of Oregon, Mr. CALVERT, Mr. H.R. 484. A bill to amend the Fair Labor enue Code of 1986 to provide a tax credit for MCKEON, Mr. WICKER, Mr. BARR of Standards Act of 1938 to permit State and H244 CONGRESSIONAL RECORD — HOUSE January 21, 1997 local government workers to perform volun- H.R. 496. A bill to amend title 5, United Assembly Resolution No. 126: Calling on the teer services for their employer or commu- States Code, to include medical foods as a President and the Congress of the United nity organization or purpose without requir- specific item for which coverage may be pro- States to undertake all appropriate actions ing the employer to pay them compensation; vided under the Federal Employees Health to encourage the Swiss Government to take to the Committee on Education and the Benefits Program; to the Committee on Gov- certain actions concerning unclaimed bank Workforce. ernment Reform and Oversight. accounts of Holocaust victims; to the Com- By Mr. RICHARDSON: By Mr. ABERCROMBIE (for himself mittee on International Relations. H.R. 485. A bill to appropriate funds for the and Mr. FALEOMAVAEGA): 12. Also, memorial of the Senate of the purpose of implementing the compromise be- H.J. Res. 32. Joint resolution to consent to State of Michigan, relative to Senate Con- tween the Forest Service and timber con- certain amendments enacted by the Legisla- current Resolution No. 278: To memorialize tractors operating in the Vallecitos sus- ture of the State of Hawaii to the Hawaiian the Congress of the United States to pass and tained-yield unit, New Mexico, in order to Homes Commission Act, 1920; to the Commit- submit to the States for ratification an preserve large diameter old growth pine tee on Resources. amendment to the Constitution of the Unit- trees located in the unit; to the Committee By Mrs. FOWLER: ed States to protect taxpayer rights from ju- on Appropriations. H.J. Res. 33. Joint resolution proposing an dicial taxation by prohibiting courts from H.R. 486. A bill to amend the Communica- amendment to the Constitution of the Unit- ordering any State or political subdivision to tions Act of 1934 to promote greater tele- ed States to limit the terms of office for levy or increase any tax and to urge other communications and information services to Representatives and Senators in Congress; to States to direct a similar memorial to Con- Native Americans, and for other purposes; to the Committee on the Judiciary. gress; to the Committee on the Judiciary. the Committee on Commerce. By Ms. FURSE: f H.R. 487. A bill to amend the Public Health H.J. Res. 34. Joint resolution proposing an Service Act with respect to the health of in- amendment to the Constitution of the Unit- ADDITIONAL SPONSORS dividuals who are members of minority ed States to limit terms of Representatives groups, and for other purposes; to the Com- and Senators; to the Committee on the Judi- Under clause 4 of rule XXII, sponsors mittee on Commerce. ciary. were added to public bills and resolu- H.R. 488. A bill to authorize the Secretary By Mr. SOLOMON: tions as follows: of the Interior to enter into an agreement H.J. Res. 35. Joint resolution proposing an H.R. 5: Mr. SAM JOHNSON. with the Arch Hurley Conservancy District amendment to the Constitution to require H.R. 26: Mr. TRAFICANT and Mr. SCHIFF. in New Mexico, authorizing the district to that congressional resolutions setting forth H.R. 27: Mr. CRAPO, Mr. STEARNS, Mr. DAN prepay any amounts outstanding under levels of total budget outlays and Federal SCHAEFER of Colorado, Mr. NORWOOD, Mr. water reclamation repayment contracts; to revenues must be agreed to by two-thirds NEY, Mr. WELDON of Florida, and Mrs. the Committee on Resources. vote of both Houses of the Congress if the MYRICK. H.R. 489. A bill to amend the Land and level of outlays exceeds the level of reve- H.R. 41: Mr. SENSENBRENNER, Mrs. KELLY, Water Conservation Fund Act of 1965 as re- nues; to the Committee on the Judiciary. Mr. CHRISTENSEN, Mr. HERGER, Mr. HORN, Mr. gards the National Park Service, and for By Mr. BOEHNER: HYDE, Mr. BLILEY, and Mr. HILL. other purposes; to the Committee on Re- H. Con. Res. 9. Concurrent resolution pro- H.R. 58: Mr. BILIRAKIS, Mr. MCDERMOTT, sources. viding for a joint session of Congress to re- Mr. GONZALEZ, Mr. FRELINGHUYSEN, Mr. By Mr. ROMERO-BARCELO´ : ceive a message from the President on the MENENDEZ, Ms. NORTON, Mr. KENNEDY of H.R. 490. A bill to relieve the Puerto Rico State of the Union; considered and agreed to. Massachusetts, Mr. LAZIO of New York, Mr. Housing Bank and Finance Agency and its By Mr. SOLOMON: HASTINGS of Florida, Mr. QUINN, Mr. EHR- assignees of liability for certain loans sub- H. Con. Res. 10. Concurrent resolution rec- LICH, Mr. FOLEY, Mr. MCCOLLUM, Ms. WOOL- ject to the Truth-in-Lending Act; to the ommending the integration of Estonia, Lat- SEY, Mr. SKAGGS, and Mr. FATTAH. Committee on Banking and Financial Serv- via, and Lithuania into the North Atlantic H.R. 59: Mr. MCCRERY, Mr. DOOLITTLE, Mr. ices. Treaty Organization; to the Committee on BARTLETT of Maryland, Mr. COBLE, Mr. By Mr. SAXTON (for himself and Mr. International Relations. HILLEARY, Mr. STEARNS, Mr. NORWOOD, Mr. QUINN): By Mr. YATES: H.R. 491. A bill to prohibit the Department H. Con. Res. 11. Concurrent resolution per- FOLEY, Mr. MCCOLLUM, and Mr. JONES. of State from imposing a charge or fee for mitting the use of the rotunda of the Capitol H.R. 66: Mr. DICKEY, Mr. FOLEY, Mr. providing passport information to the gen- for a ceremony as part of the commemora- COOKSEY, Mr. KILDEE, Ms. FURSE, Mr. eral public; to the Committee on Inter- tion of the days of remembrance of victims WELDON of Florida, Mr. STARK, Mr. FROST, national Relations. of the Holocaust; to the Committee on House and Mr. RAHALL. By Mr. SCHUMER (for himself, Mr. Oversight. H.R. 75: Mr. DELLUMS, Ms. BROWN of Flor- STARK, Mrs. LOWEY, and Mr. BROWN By Mrs. JOHNSON of Connecticut: ida, and Ms. NORTON. of California): H. Res. 31. Resolution in the matter of Rep- H.R. 78: Mr. WAMP and Mr. WALSH. H.R. 80: Mr. MCHUGH, Mr. CONDIT, Mr. H.R. 492. A bill to apply the same quality resentative NEWT GINGRICH; considered and and safety standards to domestically manu- agreed to. CAMP, Mr. DOYLE, Mr. COBLE, Mr. factured handguns that are currently applied By Mr. BOEHNER: KNOLLENBERG, Mr. FRANK of Massachusetts, to imported handguns; to the Committee on H. Res. 32. Resolution designating majority Mr. GOODE, Mr. BACHUS, Mr. HYDE, Mr. the Judiciary. membership on certain standing committees MEEHAN, Mr. MINGE, Mr. SHAYS, Mr. By Mr. SHAYS (for himself, Mr. of the House; considered and agreed to. BALDACCI, Mr. BARRETT of Wisconsin, Mr. MEEHAN, Mrs. ROUKEMA, Mr. BARRETT By Mr. FAZIO of California: LEVIN, Mr. PORTMAN, Mr. NORWOOD, Mrs. of Wisconsin, Mrs. LINDA SMITH of H. Res. 33. Resolution designating minor- CARSON, Mr. GREENWOOD, Mr. SENSEN- Washington, Mr. KIND, and Mr. DUN- ity membership on certain standing commit- BRENNER, Mr. KLINK, and Mr. GOSS. CAN): tees of the House; considered and agreed to. H.R. 81: Mr. HAMILTON. H.R. 493. A bill to amend the Federal Elec- By Ms. WATERS: H.R. 86: Ms. RIVERS, Mr. HASTINGS of Wash- tion Campaign Act of 1971 to reform the fi- H. Res. 34. Resolution to establish a select ington, Mr. BOB SCHAFFER, Mr. LEWIS of Ken- nancing of Federal elections, and for other committee to investigate CIA involvement tucky, Mr. LUCAS of Oklahoma, and Mr. purposes; to the Committee on House Over- in crack cocaine sales to fund Contras; to the BACHUS. sight, and in addition to the Committees on Committee on Rules. H.R. 87: Mr. HASTINGS of Washington. Commerce and Government Reform and f H.R. 100: Mr. FROST, Mr. HASTINGS of Flor- Oversight, for a period to be subsequently de- ida, Mr. JEFFERSON, Mr. RAHALL, Mr. RAN- termined by the Speaker, in each case for MEMORIALS GEL, and Mr. TEJEDA. H.R. 103: Mr. CANADY of Florida. consideration of such provisions as fall with- Under clause 4 of rule XXII, memori- in the jurisdiction of the committee con- H.R. 123: Mr. PETRI, Mrs. CUBIN, Mr. OXLEY, cerned. als were presented and referred as fol- Mr. UPTON, Mr. KOLBE, Mr. HILLEARY, Mr. By Mr. THOMAS: lows: NUSSLE, Mr. BARTLETT of Maryland, and Mr. H.R. 494. A bill to amend the Internal Rev- 10. By the SPEAKER: Memorial of the Sen- CALLAHAN. enue Code of 1986 with respect to the treat- ate of the State of Michigan, relative to Sen- H.R. 127: Mrs. MEEK of Florida, Mr. CAMP, ment of crops destroyed by casualty; to the ate Concurrent Resolution No. 284: To memo- Mr. FILNER, Mr. MOAKLEY, Mr. MCDERMOTT, Committee on Ways and Means. rialize the Congress of the United States to Mr. BEREUTER, Mr. MCGOVERN, Mr. BURR of H.R. 495. A bill to amend the Internal Rev- investigate the financial plight of the self- North Carolina, Mr. OXLEY, Mr. CAMPBELL, enue Code of 1986 to double the maximum employed Reservists who were activated for Mr. UPTON, Mr. BILBRAY, Mr. DINGELL, Mr. benefit under the special estate tax valu- missions such as Operation Desert Storm FALEOMAVAEGA, Mr. WELDON of Florida, Mr. ation rules for certain farm, and so forth, and Operation Joint Endeavor and to pass SENSENBRENNER, Mr. NORWOOD, Mr. DEL- real property; to the Committee on Ways and legislation to provide relief; to the Commit- LUMS, Mr. WATTS of Oklahoma, Mr. BROWN of Means. tee on Banking and Financial Services. California, Mr. BALLENGER, Mr. HYDE, Mr. By Ms. WOOLSEY (for herself and Ms. 11. Also, memorial of the General Assem- CONDIT, Ms. WOOLSEY, Mrs. LOWEY, Mr. GEJD- PRYCE of Ohio): bly of the State of New Jersey, relative to ENSON, Mr. SHAYS, Mr. NADLER, Mr. WALSH, January 21, 1997 CONGRESSIONAL RECORD — HOUSE H245

Ms. FURSE, Ms. BROWN of Florida, Mr. H.R. 292: Mr. HAYWORTH, Mr. BOB SCHAF- FATTAH, Mr. MORAN of Virginia, Mr. ENGLISH BACHUS, Mrs. MALONEY of New York, Ms. FER, Mr. SKEEN, Mr. BARTLETT of Maryland, of Pennsylvania, Mr. SOLOMON, Mrs. KELLY, ESHOO, Mr. EVANS, and Mr. SOLOMON. Mr. CAMPBELL, Mr. HOSTETTLER, Mr. Mr. SENSENBRENNER, Mr. GOODLATTE, and H.R. 131: Mr. PAPPAS, Mr. FOLEY, Mr. SEN- BUNNING of Kentucky, Mr. HERGER, Mr. Mr. SMITH of Michigan. SENBRENNER, and Mrs. MYRICK. ROYCE, Mr. DOOLITTLE, Mr. RADANOVICH, Mr. H.R. 406: Mr. QUINN and Mr. ANDREWS. H.R. 132: Mrs. MYRICK and Mr. HASTERT. CHABOT, Mr. RIGGS, Mr. FOLEY, Mr. NEY, Mr. H.R. 408: Mr. BOEHLERT, Mr. SKAGGS, Mr. H.R. 135: Mr. ALLEN, Mrs. CARSON, Mr. MCINNIS, Mr. ENSIGN, Mr. METCALF, Mr. RIGGS, and Mr. ENGLISH of Pennsylvania. DELAHUNT, Mr. FAZIO of California, Mr. BACHUS, Mr. JONES, Mr. ENGLISH of Penn- H.R. 411: Mr. SHAYS, Mrs. LOWEY, Mr. FILNER, Ms. FURSE, Mr. HINOJOSA, Ms. JACK- sylvania, Mr. BLILEY, Mr. STUMP, Mr. SES- CARDIN, Mr. KENNEDY of Rhode Island, Ms. SON-LEE, Ms. KAPTUR, Ms. LOFGREN, Mrs. SIONS, Mrs. EMERSON, Mr. EHRLICH, Mr. NORTON, Mr. MCGOVERN, Mrs. TAUSCHER, Ms. MCCARTHY of New York, Ms. MCCARTHY of WELDON of Florida, and Mrs. CUBIN. MCKINNEY, Mr. TORRES, Mr. MEEHAN, Mr. Missouri, Mr. MCGOVERN, Mr. MCNULTY, Mr. H.R. 298: Mr. PARKER. MARTINEZ, Ms. ESHOO, and Mr. STARK. MALONEY of Connecticut, Mr. MANTON, Mr. H.R. 305: Mr. MCGOVERN, Mr. BALDACCI, H.R. 416: Mr. TRAFICANT and Mr. FRANK of MARKEY, Mr. MEEHAN, Ms. MILLENDER- Mrs. CLAYTON, Mr. ROMERO-BARCELO, Mr. Massachusetts. MCDONALD, Mr. MILLER of California, Mr. TALENT, and Ms. WOOLSEY. H.R. 417: Mr. MATSUI, Mr. PAYNE, Mrs. MOAKLEY, Mr. NEAL of Massachusetts, Mr. H.R. 306: Ms. NORTON, Mr. MCGOVERN, Mr. MEEK of Florida, Mr. NEAL of Massachusetts, PASCRELL, Mr. PICKETT, Mr. RANGEL, Mr. MARKEY, Mr. OBERSTAR, Mrs. TAUSCHER, Mr. Mr. ROMERO-BARCELO˜ , Mr. FORD, Mr. DEL- STOKES, Mrs. TAUSCHER, Mrs. THURMAN, Ms. YATES, Ms. MCKINNEY, Mr. COYNE, and Mr. LUMS, Mrs. CARSON, Mr. FATTAH, Mr. WALSH, WOOLSEY, and Mr. YATES. MORAN of Virginia. Mr. UNDERWOOD, Mr. FROST, Mr. KILDEE, Ms. OLOMON H.R. 156: Mr. S . H.R. 312: Mr. HASTINGS of Washington, Mr. CHRISTIAN-GREEN, Ms. BROWN of Florida, Mr. H.R. 157: Mr. MCDADE. HALL of Texas, Mr. STUMP, and Mr. WELDON WOLF, Mr. LAFALCE, Mr. MILLER of Califor- H.R. 158: Mr. SMITH of New Jersey, Mr. of Florida. nia, Ms. NORTON, and Mr. MCHUGH. CHRISTENSEN, Mr. KOLBE, Mr. SAXTON, Mr. H.R. 328: Mr. SMITH of New Jersey, Mr. H.R. 424: Mr. TALENT and Mr. FOLEY. HOLDEN, Mr. SENSENBRENNER, Mr. TEJEDA, ENGLISH of Pennsylvania, and Mrs. KELLY. H.R. 446: Mr. UNDERWOOD, Mr. ROYCE, Mr. Mr. ROHRABACHER, and Mr. MCINNIS. H.R. 331: Mr. HASTINGS of Washington. HASTERT, Mr. BARCIA of Michigan, Mr. H.R. 159: Mr. WALSH. H.R. 334: Mr. BACHUS. H.R. 161: Mr. SMITH of New Jersey, Mr. JONES, Mr. ROGAN, Mr. WELDON of Florida, H.R. 335: Mr. RAMSTAD. MCCRERY, Mr. MEEHAN, Mr. MILLER of Flor- Mr. SMITH of Michigan, and Mr. HYDE. H.R. 336: Mr. GALLEGLY, Mr. YOUNG of ida, Mr. HORN, Mr. LIVINGSTON, and Ms. MOL- H.J. Res. 2: Mr. MCCRERY, Mr. FRANKS of Alaska, Mr. STEARNS, Mr. BARTLETT of INARI. New Jersey, Mr. CAMPBELL, Mr. KIM, Mr. Maryland, Mr. ANDREWS, Mr. BILBRAY, Mr. H.R. 162: Mr. KNOLLENBERG and Mr. GRA- NUSSLE, and Mr. JONES. WELDON of Pennsylvania, Mr. ENGLISH of HAM. H. Con. Res. 4: Mr. ROMERO-BARCELO˜ , Mr. Pennsylvania, and Mr. BACHUS. H.R. 163: Mr. BARCIA of Michigan and Mr. FATTAH, Mr. SCOTT, Mrs. CLAYTON, and Mr. H.R. 345: Mr. NORWOOD, Mr. CALVERT, Mr. WATTS of Oklahoma. KENNEDY of Rhode Island. SOLOMON, Mr. ROYCE, Mr. HAYWORTH, Mr. H.R. 180: Mr. CANADY of Florida, Mr. H. Con. Res. 6: Mr. DOYLE, Mr. ACKERMAN, CALLAHAN, Mr. DOOLITTLE, Mr. CHRISTENSEN, DEUTSCH, Mr. FOLEY, Mrs. FOWLER, Mr. Mr. HALL of Ohio, Ms. HARMAN, Mr. Mr. CAMPBELL, Mr. BARTLETT of Maryland, HASTINGS of Florida, Mr. MCCOLLUM, Mrs. CUNNINGHAM, Mr. PALLONE, Mr. COYNE, Mr. Mr. SKEEN, Mr. LAHOOD, Mr. SCARBOROUGH, MEEK of Florida, Mr. MILLER of Florida, Ms. DELLUMS, Mr. LOBIONDO, Mr. DAVIS of Vir- Mr. KIM, Mr. ROHRABACHER, Mr. PACKARD, ROS-LEHTINEN, Mr. SCARBOROUGH, Mr. SHAW, ginia, Mr. MCNULTY, and Mr. MATSUI. Mr. HYDE, Mr. CRANE, Mr. BACHUS, Mr. BLI- Mr. STEARNS, and Mr. WELDON of Florida. H. Res. 28: Mr. NORWOOD and Mr. GANSKE. LEY ENSENBRENNER ELDON H.R. 182: Mr. TORRES, Mr. BROWN of Cali- , Mr. S , and Mr. W of H. Res. 30: Mr. CHABOT, Mr. SHADEGG, and fornia, Mr. DELLUMS, Mr. NADLER, Mr. FRANK Florida. Mr. LARGENT. H.R. 346: Mr. NORWOOD. of Massachusetts, Ms. NORTON, Mr. SANDERS, H.R. 347: Mr. NORWOOD, Mr. BUNNING of Mr. JACKSON, Mr. MCDERMOTT, Mr. FATTAH, f Kentucky, Mr. DEAL of Georgia, Mr. BACHUS, Mr. OWENS, Mr. RUSH, and Ms. VELAZQUEZ. H.R. 207: Mr. SHAYS. and Mr. YOUNG of Alaska. H.R. 211: Mr. OBEY and Mr. BONIOR. H.R. 366: Mr. ENGLISH of Pennsylvania. PETITIONS, ETC. H.R. 382: Mr. TRAFICANT, Mr. MARTINEZ, H.R. 216: Mr. ACKERMAN, Mr. WALSH, Mr. Under clause 1 of rule XXII, FRANK of Massachusetts, Mr. ENGLISH of Mr. UNDERWOOD, Ms. CHRISTIAN-GREEN, Ms. Pennsylvania, Mr. BROWN of Ohio, Ms. PRYCE BROWN of Florida, Mr. FROST, and Ms. NOR- 5. The SPEAKER presented a petition of of Ohio, Mr. CONDIT, and Ms. JACKSON-LEE. TON. the House of Representatives of the Republic H.R. 218: Mr. BLILEY. H.R. 383: Mr. SOLOMON, Mr. GUTIERREZ, Mr. of Cyprus, relative to the continuing plight H.R. 231: Mr. MCGOVERN. MCGOVERN, Mr. TOWNS, Mr. MCNULTY, Mrs. of the few hundred Greek Cypriots still re- H.R. 290: Mr. FROST, Mr. STARK, and Ms. TAUSCHER, Mrs. KELLY, Mrs. LOWEY, Mr. maining in the area of Cyprus occupied by NORTON. FROST, Mr. GEJDENSON, and Mr. SANDERS. Turkish troops since 1974; which was referred H.R. 291: Mr. UNDERWOOD, Mrs. CLAYTON, H.R. 399: Mr. GREENWOOD, Mr. BOEHLERT, to the Committee on International Rela- and Ms. NORTON. Ms. MOLINARI, Mr. SHAYS, Mr. QUINN, Mr. tions. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, TUESDAY, JANUARY 21, 1997 No. 4 Senate

The Senate met at 12 noon and was equally divided between myself and the There being no objection, the pro- called to order by the President pro Democratic leader. At 12:30 today, fol- ceedings were ordered to be printed in tempore [Mr. THURMOND]. lowing our remarks, the Senate will re- the RECORD, as follows: cess until 2:15 for the weekly policy INAUGURATION OF THE PRESIDENT OF THE PRAYER conferences to meet. When the Senate UNITED STATES AND THE VICE PRESIDENT, The Chaplain, Dr. Lloyd John reconvenes at 2:15, there will be a pe- January 20, 1997 Ogilvie, offered the following prayer: riod of morning business to enable all Members of the House of Representatives, Gracious God of new beginnings, who Senators to make statements and in- Members of the Senate, Justices of the Su- makes all things new, give us a viable troduce legislation. preme Court, members of the Cabinet, mem- hope and vibrant expectancy as we I anticipate that many of our col- bers of the diplomatic corps, the Governors begin the work of the 105th Congress. leagues will be making statements dur- of the States, and the Mayor of the District On this day following the inauguration ing the morning business period. of Columbia, the Joint Chiefs of Staff, and of President Clinton and Vice Presi- other distinguished guests assembled on the Therefore, there will be no rollcall west front. dent GORE, as fellow Americans and pa- votes during today’s session. It is my triots we ask for Your blessing on hope that during tomorrow’s session MRS. GORE them. In the same breath, we renew the Senate will be able to consider the Mr. Martin Paone, Senate Secretary for our commitment to work together with Executive nomination of Madeleine the Minority, escorted Mrs. Gore, accom- them as we seek Your will for what is Albright to be the Secretary of State, panied by Mrs. Lott and Mrs. Gephardt, to the President’s platform. best for our Nation. and I anticipate a rollcall vote on Endow our own Senate leaders, Wednesday on the confirmation of that MRS. CLINTON TRENT LOTT, TOM DASCHLE, DON NICK- nomination. Ms. Elizabeth B. Greene, Senate Secretary LES, and WENDELL FORD with a special I also announce to my colleagues for the Majority, and Ms. Amelia Fields, measure of wisdom as they work coop- that all Members will be notified as Joint Congressional Committee on Inaugural eratively together to foster a spirit of Ceremonies, escorted Mrs. Clinton, accom- soon as the schedule is finalized with oneness in the Senate. Help the Sen- panied by Mrs. Ford and Mrs. Gingrich, to regard to a memorial service on Thurs- ators to delight in the diversity that the President’s platform. day in Lowell, MA, for our former col- sheds varied shades of light on the THE VICE PRESIDENT league, Senator Paul Tsongas. truth and debate that exposes maxi- Again, I note as we come out of our Mr. John Chambers, Joint Congressional mum solutions. May this Senate be dis- Committee on Inaugural Ceremonies Deputy policy luncheons, Senator DASCHLE and tinguished for its civility, creativity, Director, Ms. Loretta Symms, Senate Dep- and courage. Your spirit flourishes I will be introducing bills. I will intro- uty Sergeant at Arms, and Mr. Jim Varey, where men and women pray for each duce the first 10 bills on behalf of the House Deputy Sergeant at Arms, escorted other, speak truth as they see it with- Senate Republican majority, and Sen- the Vice President, accompanied by Senator out rancor, and listen attentively to ator DASCHLE will introduce the next 10 Lott, Representative Gephardt and Rep- bills. We will be hearing during the re- resentative Armey, to the President’s plat- one another. When we all seek You and form. Your guidance, we find each other. The mainder of the day from the leading bond of our mutual love for You and sponsors of those bills and others who THE PRESIDENT for America will sustain us in the will be introducing bills and want to Ms. Susan Magill, JCCIC Executive Direc- rough and tumble of political process. make statements. We will go, I am tor, Mr. Greg Casey, Senate Sergeant at God, bless America and begin here in sure, a while into the afternoon. It is Arms, and Mr. Wilson Livingood, House Ser- hoped we will not begin this session by geant at Arms, escorted the President, ac- this Senate, through our Lord and Sav- companied by Senator Warner, Senator Ford, ior. Amen. going late into the night on a Tuesday. We would like to quit at a reasonable Representative Gingrich, Senator Lott, Rep- f resentative Gephardt and Representative hour, for all concerned. Armey, to the President’s platform. RECOGNITION OF THE MAJORITY f LEADER THE INAUGURAL CEREMONY The PRESIDENT pro tempore. The INAUGURATION CEREMONIES Mr. WARNER. Mr. President, Mr. Vice President, Mr. Speaker, Mr. Majority Lead- able majority leader is recognized. Mr. LOTT. I ask unanimous consent er, Mr. Chief Justice, Members of the U.S. SCHEDULE that yesterday’s proceedings of the in- Congress, their families and guests—all one- Mr. LOTT. Under the order today, auguration of the President be printed quarter million who have joined here today the time between now and 12:30 will be in today’s CONGRESSIONAL RECORD. on the grounds of their Capitol.

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S119 S120 CONGRESSIONAL RECORD — SENATE January 21, 1997 [Applause.] where there has been success, give us humil- Associate Justice of the United States Welcome to the 53rd Inauguration of the ity, and teach us to follow Your instructions Ruth Bader Ginsburg administered to the President and the Vice President of the Unit- more closely as we enter the next century. Vice President-elect the oath of office pre- ed States of America. Give to all those to whom You have en- scribed by the Constitution, which he re- [Applause.] trusted leadership today a desire to seek peated, as follows: Across our Nation, and around the world, Your will and to do it. ‘‘I, Albert Gore, Jr., do solemnly swear Americans join William Jefferson Clinton as So today, we ask Your blessing on Presi- that I will support and defend the Constitu- he reconfirms the oath of office as the 42nd dent Clinton and his wife, Hillary, and their tion of the United States against all enemies President of the United States, and Albert daughter, Chelsea, and upon Vice President foreign and domestic; that I will bear true Gore, Jr., as he reconfirms the oath of office Gore and his wife, Tipper, and their children. faith and allegiance to the same; that I take as the 45th Vice President of the United Give to all our leaders the vision of what this obligation freely, without any mental States. You desire America to become and the wis- reservation or purpose of evasion, and that I Our first President, George Washington, dom to accomplish it and the strength to will well and faithfully discharge the duties was inaugurated in 1789. cross the bridges into the 21st century. of the office of which I am about to enter. So Thereafter, every 4 years, our citizens have We pray also for the Members of the House help me God.’’ witnessed this transition of authority as re- and the Senate, for the Supreme Court, and Associate Justice GINSBURG. Every good quired by the Constitution of the United for all who bear responsibility of leadership wish, Mr. Vice President. States. in this Nation which is blessed with such Vice President GORE. Thank you. It is the conferring of this trust and au- ethnic diversity. [Applause.] thority—which has occurred without any We have not solved all the social problems Mr. WARNER. Ladies and gentlemen, par- interruption for 208 years—that is the cor- of our times, such as drugs and racism. Tech- ticipating in today’s program is a person nerstone of our representative democracy. nology and social engineering have not with talent described by music critics as a It is a tribute to the providential vision of solved the basic problems of human greed, catalog of all that is virtuous in singing. our Founding Fathers. pride, intolerance, and selfishness. We need Accompanied by the U.S. Army Chorus and It is a tribute to the strength of character your insight, we need your compassion, we Chorale, please welcome the world renowned of the American people and the endurance of need your strength. As both President Clin- Jessye Norman, who will perform a medley their institutions. ton and Senator Dole urged us in the recent of American music entitled ‘‘O Freedom.’’ It is a tribute to successive generations of Presidential campaign, may this be a time of Miss Norman. Americans who have guarded our most valu- coming together to help us deal with the [Applause.] able heritage—our freedom. problems we face. (Jessye Norman sang a medley of Amer- And, Mr. President, may I say, on behalf of O Lord, help us to be reconciled first to ican music entitled ‘‘O Freedom.’’) the millions and millions of Americans, we You and secondly to each other. May Dr. Mr. WARNER. Thank you very much. Ladies express to you our gratitude for this past Martin Luther King’s dream finally come and gentlemen, as chairman of the Joint In- week, having invited to the White House a true for all of us. Help us to learn true cour- augural Committee, it is now my privilege to true man who fought for freedom, and you tesy to our fellow countrymen that comes introduce my cochairman, Senator Wendell presented him with the Presidential Medal of from the One who taught us that ‘‘whatever Ford of Kentucky, who will introduce the Freedom, Senator Dole. Thank you, Mr. you want me to do to you, do also to them.’’ Chief Justice of the United States. President. Remind us today that You have shown us Senator Ford. [Applause.] what is good and what You require of us—to Mr. FORD. Thank you, my friend, John For two centuries, the American Presi- do justly, to love mercy, and to walk humbly Warner. President Clinton, Mrs. Clinton, dential Inauguration ceremony has rep- with our God. Vice President Gore, Mrs. Gore, my fellow resented both national renewal and continu- We ask that as a people we may humble Americans, and my colleagues. ity of leadership. ourselves before You and seek Your will for Hillary Rodham Clinton, wife of the Presi- So it is altogether fitting that as the our lives and for this great Nation. Help us dent-elect, will hold the Clinton family world’s oldest continuous constitutional in our Nation to work as never before to Bible. They are joined by their daughter democratic republic, we gather today to strengthen our families and to give our chil- Chelsea. honor this historical triumph, and to recom- dren hope and a moral foundation for the fu- It is now my great privilege and high mit ourselves to keep our Nation strong for ture. honor to present the Chief Justice of the future generations. So may our desire be to serve You and, in United States Supreme Court, the Honorable Mr. President, prayer has been an essential so doing, serve one another. William Hobbs Rehnquist, who will admin- part of all inaugural ceremonies. This we pray in the name of the Father, ister the oath of office to the President and As I was privileged to drive up with you the Son, and the Holy Spirit. Amen. President-elect of the United States, William from the White House, you held the Bible Mr. WARNER. Thank you, Reverend Gra- Jefferson Clinton. and read the passage that you will read ham. [Applause.] today. THE PLEDGE OF ALLEGIANCE ADMINISTRATION OF OATH OF OFFICE TO THE Therefore, we are honored today to have Mr. WARNER. The Pledge of Allegiance will PRESIDENT the Reverend Billy Graham to lead our Na- be led by Eagle Scout David Morales, Boy Mr. Chief Justice REHNQUIST. Are you tion in prayer, as he has at seven previous Scout Troop 152, Vienna, VA. ready to take the oath, Mr. President? inaugurals. (The Pledge of Allegiance was led by Eagle President CLINTON. Yes, I am. Please stand for the invocation and remain Scout David Morales.) Mr. Chief Justice REHNQUIST. Please raise standing for the Pledge of Allegiance. Rev- Mr. WARNER. Ladies and gentlemen, it is your right hand and repeat after me. erend Graham. now my privilege to present the Children of The Chief Justice of the United States, INVOCATION the Gospel Mass Choir, under the auspices of William Hobbs Rehnquist, administered to Reverend GRAHAM. President Clinton, Mrs. the Washington Performing Arts Society. the President-elect the oath of office pre- Clinton, Vice President Gore, Mrs. Gore, I More than 100 voices from the Washington scribed by the Constitution, which he re- am going to ask that we all bow our heads in metropolitan area make up this unique peated, as follows: prayer. choir. ‘‘I, William Jefferson Clinton, do solemnly Our Father and our God, we thank You Accompanied by the United States Marine swear that I will faithfully execute the office today for the privilege of coming into Your Band, the choir will perform an original of President of the United States, and will, presence on this historic and solemn occa- composition by its director, Mr. Rickey to the best of my ability, preserve, protect sion. Payton, entitled, ‘‘Let’s Build a Bridge and defend the Constitution of the United We thank You for Your gracious hand Across America.’’ States. So help me God.’’ which has preserved us as a Nation. We (The Children of the Gospel Mass Choir [Applause.] praise You for the peaceful continuity of sang ‘‘Let’s Build a Bridge Across Amer- (Herald Trumpets play ‘‘Ruffles and Flour- Government that this inauguration rep- ica.’’) ishes’’ and ‘‘Hail to the Chief’’, and 21-gun Mr. WARNER. Ladies and gentlemen, it is resents. salute.) now my distinct privilege and honor to We recall that the Bible says, ‘‘Except the Mr. FORD. Ladies and gentlemen, the Presi- present the Associate Justice of the Supreme Lord build a house, they labor in vain that dent of the United States of America, Wil- Court of the United States, the Honorable build it.’’ You also said that to whom much liam Jefferson Clinton. Ruth Bader Ginsburg, who will administer has been given, much will be required. INAUGURAL ADDRESS the oath of office to the Vice President of We look gratefully to the past, and thank President CLINTON. My fellow citizens: the United States, Albert Gore, Jr. You that from the very foundations of Amer- At this last Presidential inauguration of ica You granted our forefathers courage and ADMINISTRATION OF OATH OF OFFICE TO THE the 20th century, let us lift our eyes toward wisdom, as they trusted in You. So we ask VICE PRESIDENT the challenges that await us in the next cen- today that You would inspire us by their ex- Associate Justice GINSBURG. If you are tury. It is our great good fortune that time ample. Where there has been failure, forgive ready to take the oath, Mr. Vice President, and chance have put us not only at the edge us; where there has been progress, confirm; please repeat after me. of a new century in a new millennium, but January 21, 1997 CONGRESSIONAL RECORD — SENATE S121 on the edge of a bright new prospect in everyday lives, Government should do more, This is the heart of our task: With a new human affairs. A moment that will define not less. The preeminent mission of our new vision of Government, a new sense of respon- our course and our character for decades to Government is to give all Americans an op- sibility, a new spirit of community, we will come. We must keep our old democracy for- portunity—not a guarantee—but a real op- sustain America’s journey. The promise we ever young. Guided by the ancient vision of portunity to build better lives. sought in a new land, we will find again in a a promised land, let us set our sights upon a [Applause.] land of new promise. land of new promise. Beyond that, my fellow citizens, the future [Applause.] The promise of America was born in the is up to us. Our Founders taught us that the In this new land, education will be every 18th century out of the bold conviction that preservation of our liberty and our Union de- citizen’s most prized possession. Our schools we are all created equal. It was extended and pends upon responsible citizenship. will have the highest standards in the world, preserved in the 19th century, when our Na- And we need a new sense of responsibility igniting the spark of possibility in the eyes tion spread across the continent, saved the for a new century. There is work to do, work of every girl and every boy, and the doors of Union, and abolished the awful scourge of that Government alone cannot do. Teaching higher education will be open to all. The slavery. children to read. Hiring people off welfare knowledge and power of the information age Then, in turmoil and triumph, that prom- rolls. Coming out from behind locked doors will be within reach, not just of the few but ise exploded onto the world stage to make and shuttered windows to help reclaim our of every classroom, every library, every this the American century. streets from drugs and gangs and crime. child. Parents and children will have time And what a century it has been. America Taking time out of our own lives to serve not only to work, but to read and to play to- became the world’s mightiest industrial others. gether, and the plans they make at their power, saved the world from tyranny in two Each and every one of us, in our own way, kitchen table will be those of a better home, world wars and a long cold war, and time and must assume personal responsibility—not a better job, a certain chance to go to col- again reached out across the globe to mil- only for ourselves and our families, but for lege. lions who, like us, longed for the blessings of our neighbors and our Nation. Our streets will echo again with the laugh- liberty. [Applause.] ter of our children, because no one will try Along the way, Americans produced the Our greatest responsibility is to embrace a to shoot them or sell them drugs anymore. great middle class and security in old age; new spirit of community for a new century. Everyone who can work will work, with to- built unrivaled centers of learning and For any one of us to succeed, we must suc- day’s permanent underclass part of tomor- opened public schools to all; split the atom ceed as one America. row’s growing middle class. New miracles of and explored the heavens; invented the com- The challenge of our past remains the chal- medicine at last will reach not only those puter and the microchip; and deepened the lenge of our future: Will we be one nation, who can claim care now, but the children wellspring of justice by making a revolution one people, with one common destiny—or and hard-working families too long denied. in civil rights for African Americans and all not? Will we all come together, or come We will stand mighty for peace and for minorities, and extending the circle of citi- apart? freedom and maintain a strong defense zenship, opportunity, and dignity to women. The divide of race has been America’s con- against terror and destruction. Our children Now, for the third time, a new century is stant curse. And each new wave of immi- will sleep free from the threat of nuclear, upon us, and another time to choose. We grants gives new targets to old prejudices. chemical, or biological weapons. Ports and began the 19th century with a choice to Prejudice and contempt, cloaked in the pre- airports, farms and factories will thrive with spread our Nation from coast to coast. We tense of religious or political convictions, trade and innovation and ideas. And the began the 20th century, with a choice to har- are no different. world’s greatest democracy will lead a whole ness the Industrial Revolution to our values [Applause.] world of democracies. of free enterprise, conservation, and human These forces have nearly destroyed our Na- Our land of new promise will be a Nation decency. Those choices made all the dif- tion in the past. They plague us still. They that meets its obligations: A Nation that ference. At the dawn of the 21st century, a fuel the fanaticism of terror, and they tor- balances its budget, but never loses the bal- free people must now choose to shape the ment the lives of millions in fractured na- ance of its values. forces of the Information Age and the global tions all around the world. [Applause.] society, to unleash the limitless potential of These obsessions cripple both those who A nation where our grandparents have se- all our people, and, yes, to form a more per- hate and, of course, those who are hated, rob- cure retirement and health care, and their fect union. bing both of what they might become. We grandchildren know we have made the re- When last we gathered, our march to this cannot—we will not—succumb to the dark forms necessary to sustain those benefits for new future seemed less certain than it does impulses that lurk in the far regions of the their time. today. We vowed then to set a clear course, soul, everywhere. We shall overcome them. [Applause.] to renew our Nation. [Applause.] A Nation that fortifies the world’s most In these 4 years, we have been touched by We shall replace them with the generous productive economy, even as it protects the tragedy, exhilarated by challenge, strength- spirit of a people who feel at home with one great natural bounty of our water, air, and ened by achievement. America stands alone another. majestic land. as the world’s indispensable nation. Once Our rich texture of racial, religious and po- And in this land of new promise, we will again, our economy is the strongest on litical diversity will be a godsend in the 21st have reformed our politics so that the voice Earth. Once again, we are building stronger century. Great rewards will come to those of the people will always speak louder than families, thriving communities, better edu- who can live together, learn together, work the din of narrow interests, regaining the cational opportunities, a cleaner environ- together, forge new ties that bind together. participation and deserving the trust of all ment. Problems that once seemed destined As this new era approaches, we can already Americans. to deepen, now bend to our efforts: our see its broad outlines. Ten years ago, the [Applause.] streets are safer and record numbers or our Internet was the mystical province of physi- Fellow citizens, let us build that America, fellow citizens have moved from welfare to cists; today, it is a commonplace encyclo- a nation ever moving forward toward realiz- work. pedia for millions of schoolchildren. Sci- ing the full potential of all its citizens. Pros- And once again, we have resolved for our entists now are decoding the blueprint of perity and power, yes, they are important, time a great debate over the role of Govern- human life. Cures for our most feared ill- and we must maintain them, but let us never ment. Today we can declare: Government is nesses seem close at hand. forget: The greatest progress we have made, not the problem; and Government is not the The world is no longer divided into two and the greatest progress we have yet to solution. We, the American people, we are hostile camps; instead, now we are building make, is in the human heart. In the end, all the solution. bonds with nations that once were our adver- the world’s wealth and a thousand armies [Applause.] saries. Growing connections of commerce are no match for the strength and decency of Our Founders understood that well, and and culture give us a chance to lift the for- the human spirit. gave us a democracy strong enough to en- tunes and spirits of people the world over. [Applause.] dure for centuries, flexible enough to face And for the very first time in all of history, Thirty-four years ago, the man whose life our common challenges and advance our more people on this planet live under democ- we celebrate today spoke to us down there, common dreams in each new day. racy than dictatorship. at the other end of this Mall, in words that As times change, so Government must [Applause.] moved the conscience of a Nation. Like a change. We need a new Government for a My fellow Americans, as we look back at prophet of old, he told of his dream that one new century, a government humble enough this remarkable century, we may ask, can day America would rise up and treat all its not to try to solve all our problems for us, we hope not just to follow, but even to sur- citizens as equals before the law and in the but strong enough to give us the tools to pass the achievements of the 20th century in heart. Martin Luther King’s dream was the solve our problems for ourselves. A Govern- America, and to avoid the awful bloodshed American dream. His quest is our quest: the ment that is smaller, lives within its means, that stained its legacy? To that question, ceaseless striving to live out our true creed. and does more with less. Yet where it can every American here and every American in Our history has been built on such dreams stand up for our values and interests around our land today must answer a resounding and labors, and by our dreams and labors, we the world, and where it can give Americans ‘‘Yes.’’ will redeem the promise of America in the the power to make a real difference in their [Applause.] 21st century. S122 CONGRESSIONAL RECORD — SENATE January 21, 1997 To that effort, I pledge all my strength and But where are we going to be, and why, and ham and Martin. Give us ever a greater dedi- every power of my office. I ask the Members who? cation and commitment to the grand defin- of Congress here to join in that pledge. The The disenfranchised dead want to know. ing words of our democracy—liberty, justice, American people returned to office a Presi- We mean to be the people we meant to be, equality, opportunity. dent of one party and a Congress of another. to keep on going where we meant to go. And now let the words of our mouths, all of Surely, they did not do this to advance the But how do we fashion the future? Who can our mouths, in the meditations of our politics of petty bickering and extreme par- say how hearts, all of our hearts, be acceptable in tisanship they plainly deplore. except in the minds of those who will call it Thy sight, O Lord, our Strength and our Re- [Applause.] Now? deemer, and now unto the old, wise God, our No, they call on us all instead to be repair- The children. The children. And how does Deliverer, be glory and majesty, dominion ers of the breach and to move on with Ameri- our garden grow? and power both now and evermore. Amen. ca’s mission. With waving hands—oh, rarely in a row— Mr. WARNER. Now, Miss Santita Jackson. America demands and deserves big things and flowering faces. And brambles, that we (The National Anthem was sung by Santita from us—and nothing big ever came from can no longer allow. Jackson and the Resurrection Choir, audi- being small. Who were many people coming together. ence standing.) [Applause.] cannot become one people falling apart. [Applause.] Let us remember the timeless wisdom of Who dreamed for every child an even chance. The inaugural ceremonies were concluded Cardinal Bernardin when facing the end of cannot let luck alone turn doorknobs or not. at 12:48 p.m. his own life. He said, ‘‘It is wrong to waste Whose law was never so much of the hand as Mr. LOTT. Mr. President, I suggest the precious gift of time . . . on acrimony the head the absence of a quorum. and division.’’ cannot let chaos make its way to the heart. Fellow citizens, we must not waste the pre- The PRESIDING OFFICER. The Who have seen learning struggle from teach- clerk will call the roll. cious gift of this time, for all of us are on er to child that same journey of our lives, and our jour- cannot let ignorance spread itself like rot. The legislative clerk proceeded to ney, too, will come to an end. But the jour- We know what we have done and what we call the roll. ney of our America must go on. have said, Mr. LOTT. Mr. President, I ask unan- And so, my fellow Americans, we must be and how we have grown, degree by slow de- imous consent that the order for the strong, for there is much to dare. The degree, quorum call be rescinded. mands of our time are great, and they are believing ourselves toward all we have tried different. Let us meet them with faith and The PRESIDING OFFICER. Without to become— objection, it is so ordered. courage, with patience and a grateful, happy just and compassionate, equal, able, and free. heart. Let us shape the hope of this day into f the noblest chapter in our history. Yes, let All this in the hands of children, eyes al- us build our bridge— ready set. [Applause.] on a land we never can visit—it isn’t there RECESS a bridge wide enough and strong enough for yet— Mr. LOTT. Mr. President, I know of but looking through their eyes, we can see. every American to cross over to a blessed no Senator having indicated that he or land of new promise. May those generations what our long gift to them may come to be. If we can truly remember, they will not for- she desires to make a statement at this whose faces we cannot yet see, whose names time. No request being given to the we may never know, say of us here that we get. led our beloved land into a new century with [Applause.] Cloakroom, I ask unanimous consent the American dream alive for all her chil- Mr. WARNER. Santita Jackson will lead the that the Senate now stand in recess dren, with the American promise of a more singing of our National Anthem. She will be under the previous order until 2:15. perfect Union a reality for all her people, accompanied by the Resurrection Choir, a There being no objection, the Senate, with America’s bright flame of freedom group composed of singers from the choirs of at 12:20 p.m. recessed until 2:15 p.m.; spreading throughout all the world. American churches tragically destroyed by whereupon, the Senate reassembled From the height of this place and the sum- fire in recent months. when called to order by the Presiding mit of this century, let us go forth. May God This choir’s performance is a befitting Officer [Mr. COATS]. ‘‘strengthen our hands for the good work commemoration of this day on which we ahead’’—and always, always bless our Amer- honor also Rev. Martin Luther King, Jr. The PRESIDING OFFICER (Mr. ica. Before we sing our National Anthem, the COATS). The majority leader is recog- [Applause.] Reverend Gardner C. Taylor will deliver the nized. Mr. WARNER. Mr. President, we thank you benediction. for that strong and inspiring message at this Ladies and gentlemen, please stand for the f very important time in our history. benediction and remain standing to sing our Now, ladies and gentlemen, it is my pleas- National Anthem. MORNING BUSINESS ure to introduce the Immanuel Baptist Reverend Taylor. Mr. LOTT. Mr. President, I ask unan- Church Sanctuary Choir and Orchestra of BENEDICTION imous consent that the period for Little Rock. Reverend TAYLOR. Let us lift up our spirits The choir and orchestra, under the direc- morning business be divided as follows: before our Creator, eternal God, brooding The first 30 minutes under the control tion of Reverend Lynn Madden, will present over the days of our years. In sovereign judg- ‘‘The Battle Hymn of the Republic.’’ of the majority leader, the second 30 ment, and yet with tender mercy, now close minutes under the control of the (The Immanuel Baptist Church Sanctuary to the end of this solemn but joyous occa- Choir and Orchestra sing ‘‘The Battle Hymn sion, we lift our hearts and our hopes before Democratic leader, with the next hour of the Republic.’’) Thee. under the control of the majority lead- Mr. WARNER. Thank you for the singing of We pray for our President, William Jeffer- er or his designee, to be followed by 1 that most inspiring of American music. son Clinton, that Thou will give to him ever hour under control of the Democratic As he did for his first inauguration in 1993, increasing vision and vigor and voice, that President Clinton has asked a distinguished leader or his nominee. he might speak tellingly to the American American scholar to compose a poem for this I do not believe there is a problem promise in history. historic day. with this. We have cleared it with the We pray for the gracious and gallant lady Please welcome writer, editor, poet, Mr. other side of the aisle. at his side, Hillary Rodham Clinton, and for Miller Williams. their daughter. The PRESIDING OFFICER. Without [Applause.] We ask Thy blessings upon the Vice Presi- objection, it is so ordered. OF HISTORY AND HOPE dent of the United States and upon his wife, f We have memorized America, Mrs. Tipper Gore. Grant, we pray, that he how it was born and who we have been and may ever be more a partisan of what is best where. in our American tradition. SENATE REPUBLICAN AGENDA In ceremonies and silence we say the words, And now, our God, we hold before Thee this Mr. LOTT. Mr. President, I think we telling the stories, singing the old songs. Nation so richly endowed, so grandly blessed, have the opportunity here today to get We like the places they take us. Mostly we and yet imperiled, apparently often, by the off to a good start, a fast start. It is do. very richness of its diversity. Deliver us one about which we have commu- The great and all the anonymous dead are from pettiness of heart, from harshness of there. speech and from violence of action. Make us nicated with our colleagues on the We know the sound of all the sounds we worthy of our history, of patriots’ sacrifices other side of the aisle. We have in- brought. and martyrs’ blood, in the vanguard of which creased the number of bills that we of- The rich taste of it is on our tongues. stand Lincoln and King, Thy servants Abra- ficially introduce at the start of the January 21, 1997 CONGRESSIONAL RECORD — SENATE S123 session from what has in the past been the agreement and get these bills actu- amendment for a balanced budget is only 5 to 10, and therefore the Repub- ally drafted and ready for presentation. important to us because of what we licans will today introduce our first I am going to leave it to the primary think it means to our children’s future numbered 10 bills as well as Senate sponsors and others who have worked in holding down inflation and holding Joint Resolution 1, which will be the on the various pieces of legislation to down interest rates and stopping the constitutional amendment for a bal- give the details. So I am going to sum- continuous increase in the interest we anced budget. And then the Democratic marize in this time that I have today pay on the national debt that will lead leader, on behalf of the Democrats, will what is in this platform. to making it more difficult for our introduce their first 10 bills, and then Pride of place goes to Senate Joint children and grandchildren to have others can come in and offer bills as Resolution 1, as I already pointed out, home mortgages and student loans and they see fit. The principal sponsors will a balanced budget amendment to the car loans, we think that education, come to the floor this afternoon in the Constitution which will be introduced also, is a very high priority and also an hour we have designated to offer the today by Senator HATCH, chairman of investment in the future of our coun- bills and to make comments. Frankly, the Senate Judiciary Committee, and try. I see some overlap between our list of by Senator CRAIG of Idaho. If we have a strong educational sys- 10 bills and the Democrats’ list of 10 This one, obviously, needs no ex- tem, if we deal with the illiteracy prob- bills. I think that is positive. plaining. There may be still, some- lems, if we deal with the needs of chil- So we want to go ahead and get start- where in the hinterlands of America, a dren with special needs, it will contrib- ed with this. We are going to move for- citizen who does not understand why a ute to a better America, better edu- ward aggressively wherever we can to balanced budget amendment is des- cated children, will lead to more pro- handle the President’s nominations to perately needed, but I doubt it. The duction, better jobs, more jobs, more his Cabinet. We hope to confirm within American people keenly realize the trade, more development in tech- the next 2 days his first two nominees, problems caused by excessive Federal nology. to be Secretary of State and Secretary spending, and everywhere I have gone, So Republicans are placing a high of Defense. We hope in the 2 weeks every poll that I have seen indicates priority this year on education with S. after that to move right along with the American people support this ini- 1. The first numbered bill will be the other nominees. So we are trying hard tiative overwhelmingly. Safe and Affordable Schools Act. It will to work with the administration and I have tried to understand the argu- be introduced by Senator PAUL set up an atmosphere that will allow us ments against a constitutional amend- COVERDELL of Georgia, and it is a com- this year to pass some good legislation ment for a balanced budget, but to no prehensive agenda for dramatic for the best interests of the American avail, quite frankly. We have not had a change. It will help not only parents— people, but the President, we think, de- balanced budget in the Federal Govern- and that is where it begins, in the serves his Cabinet in place so that he ment in 28 years, and it will probably home with the parents—but also the can have people there to work with us. be at least 4 more years before we get States and the local communities to One of the glories of the Senate is one, if then. I have watched good men give their children a better education. that it runs as much by tradition and and women, including Presidents, It focuses, especially, on children at- custom as it does by written rules, and make commitments and actually have tending unsafe schools, to give their so one of those customs we are carry- plans to get to a balanced budget, but families consumer rights and choice in ing out today is introducing these first it has not worked. education. In this regard, it builds on few bills that will lay out our agenda This year, I think we have an oppor- the good work that was done in the for the rest of the year. tunity to work with the President to 104th Congress by the distinguished So it is my honor to present to the come to a balanced budget agreement. Senator from Indiana, Senator COATS, Senate and to the Nation 11 major We will see his budget plan February 6. who is now presiding in the Chamber. pieces of legislation, 10 bills and 1 reso- I hope he will show leadership and He has done a lot of great work in be- lution, that we will offer today. Each courage and will address some of the is- half of youngsters, and that work is of them can stand on its own as an im- sues that need to be addressed that, confirmed in this piece of legislation. portant initiative dealing with matters frankly, he was not willing to deal with In higher education, S. 1 establishes that touch the lives of most Ameri- last year. But it was an election year, what we call the Bob Dole Investment cans. Together, however, they form a and, hopefully, he will approach it dif- Accounts to help parents set aside the blueprint for the visionary changes our ferently this time. resources on their own needed for their country needs. I might even call them But even if we come together on a children’s tuition. the user’s manual for a better, safer plan to get a balanced budget by 2002, Toward the same goal, it makes the and more prosperous America. These I still have my doubts about whether it interest on student loans tax deduct- bills represent the consensus of the 55 will actually happen if we do not have ible, and it gives favorable tax treat- Republican Members of the Senate. the leverage guarantee of a constitu- ment to State prepaid tuition plans, to We did have a unique opportunity to tional amendment. Remember, when education aid provided by an employer sit together for 12 hours the week be- we pass this constitutional amend- to encourage more employers to pro- fore last to talk through what we want ment, it then does not go to the Presi- vide that assistance to their workers to do in this session of Congress and dent for his signature, it goes to the which would benefit their children, and what specific bills we wanted to take State legislatures, to the people for to student work-study awards. up. It does not mean that every Repub- their ratification. S. 1 will fully fund the Individuals lican Senator subscribes to every part Recent news accounts seem to indi- with Disabilities Act, IDEA, as it is of this package. To the contrary, it is cate the administration will fight this quite often referred to, by authorizing likely that every Republican Senator, amendment and will do it aggressively. an additional $10 billion over the next this one included, will disagree with I understand they may have some ques- 7 years. This is not something easily some provision or another in one bill or tions or objections. I expect them to done, but it is something we promised another. But as befits the party of the make those, and we will listen to them. children with these special needs and open door, we have had quite a lot of But this fight is not about politics, it we promised the States we would do, give-and-take in putting this package is about the future of our children and and we have not done it. together, and, as always, our individual grandchildren. It is about the burden of In this legislation, we are making Members make their own decisions debt we are leaving them with, which that commitment to fulfill that obliga- about what they will endorse. But each is a cruel legacy. It is about right and tion. That will come as good news not of these bills commands overwhelming wrong, and this time around, I am bet- only to the families with special-needs support on the Republican side of the ting that right is going to prevail. children, it will also mean a lot to the aisle, and I want to commend not just Because of the importance we attach Governors and State legislatures which the lead sponsors of these bills but all to education, one of the first bills we have been shouldering this Federal the Senators and staff who worked to- will introduce today will deal with this mandate without the funds to back it gether over the past few weeks to reach area. Just like the constitutional up. S124 CONGRESSIONAL RECORD — SENATE January 21, 1997 I want to mention especially the tax—which is now at confiscatory lev- This bill, S. 5, will also be introduced good work that has been done by Sen- els. When you have an estate tax that by Senator ASHCROFT, who is now ator GREGG of New Hampshire and Sen- is 44 percent, or even as high as 55 per- chairman of the subcommittee with ju- ator FRIST of Tennessee on this dif- cent, obviously, that is unfair. risdiction. It gives us another chance ficult but very important matter. Once again, it is hurting small busi- to overhaul an unfair and inefficient li- Finally, S. 1 sets up a block grant for nesses and farmers, as well as individ- ability system for the benefit of Amer- States to promote adult education and uals, who work all their lives to build ican consumers and workers. combat illiteracy. This has been long a up a little nest egg for their children, We will, in the bill S. 6, again re- priority with Senator JEFFORDS, our and now many of them are selling introduce the Partial-Birth Abortion chairman of the Labor and Human Re- those businesses, because they know if Ban Act. This, too, was vetoed by sources Committee, and I am espe- they don’t, when they do pass on, they President Clinton last year. But the cially pleased it will be included in this will have over half of what they times have changed, and as the old package. worked for all their lives taken from song says, ‘‘If times are changing, then As I said earlier today at a press con- their children. maybe the results can be different.’’ ference, we have been talking about Finally, this bill aims to boost sav- After the election of 1996, the Senate trying to deal with adult education and ings, investments and job creation by has changed, too. illiteracy problems for 10 years, but we allowing a 50-percent deduction for in- We are hopeful this time around we have done very little about it. This is vestment earnings on assets held more will do away with this practice that I the place where the Federal Govern- than 3 years and would let people who think has shamed the conscience of the ment can be helpful in helping to fill a sell their homes at a loss deduct that Nation. I commend Senator SANTORUM, void that maybe the States cannot do as a capital loss. the bill’s lead sponsor, and Senator on their own. The next bill is S. 3, the Omnibus SMITH for their dedication to this The next bill we will introduce today Crime Control Act, again being intro- cause. is S. 2, which will be introduced by duced by Senator HATCH. He has done We will schedule this bill on the floor Senator ROTH. It is the Family Tax Re- work on this for a long time, including of the Senate for an early vote. I am lief Act. It contains key provisions this last year. It is a comprehensive sure the House will follow suit. We will from the tax relief legislation of the package of tough-minded steps to fight send it again to the President. Hope- last Congress that was vetoed by Presi- illegal drugs, terrorism and child por- fully, this time he will sign it. nography. S. 7 is the National Missile Defense dent Clinton. Senator ROTH has long It continues the Republican effort to Act. I am pleased to be introducing worked in this area. He is the chairman reform our prison system, to end this legislation. Building on the work of the Finance Committee. He knows abuses therein, both by felons and by that has been done by Senator Dole, his subject backward and forward, and Federal judges. In so many instances Senator KYL, Senator THURMOND, and he knows we need a fairer Tax Code. He now, felons in prisons are tying up the others in the last Congress, it rep- also knows we need to give some incen- courts with petty, very trivial allega- resents our commitment to the Amer- tives for growth in the economy, to tions that take up time and cost a lot ican people to secure for them, for create more jobs, to have a stronger of money. We want to try to reform their homes, their neighborhoods and, economy. that area and to save some of that lost in fact, the country, the maximum pos- I still maintain that when the econ- time and effort. sible protection against missile attack. omy is only growing at 2 percent or 2.3 We aim to restore public confidence In the aftermath of the high-tech percent, that is a very weak growth, in our courts by a series of reforms gulf war of 1990, many, perhaps most, and we should have it more in the that will, at last, tilt the scales of jus- Americans think that the Nation is al- range of 3 to 3.5. We think this bill will tice in favor of innocent victims of ready sheltered by sophisticated weap- help do that. crime. This bill reauthorizes major ons systems like the one that protected It will offset the President’s 1993 tax components of the Violence Against Israel against the Iraqi scud missiles. increases by reducing taxes over the Women Act. Don’t we wish. But sadly, and poten- next 5 years. Fully 80 percent of that The next bill is S. 4, the Family tially tragically, the truth is that in an relief, some $130 billion of it, or more, Friendly Workplace Act, to be intro- era of international terrorism, the will go to working families, and those duced by Senator ASHCROFT would ex- United States remains vulnerable to are the ones to whom we think the help tend to all workers the same options missile blackmail. So S. 7 will put our really should go, and most of it will go for flextime and comp time that em- Nation back on the path toward secu- to middle-income people. ployees of the Federal Government rity and toward lasting peace through In keeping with our Republican com- have enjoyed for decades. These oppor- unquestioned strength. mitment to strengthen families, the tunities would be 100 percent voluntary We have concerns about the environ- bill does create a $500-per-child tax and a matter of choice for the men and ment. One of the bills that we will credit for children under the age of 18. women of today’s work force. bring up again this year that we The President would like to lower that Most of those workers have to juggle worked on—and we got it through the age, I understand, maybe even to 13, the demands of their jobs and the pres- Senate after a filibuster, but it wound but if you are really trying to help sures of family life. Virtually all of up getting 63 votes—was a bill that families with children where they have them, especially those with small chil- would bring to a conclusion the deci- the greatest needs, I really think it is dren, want more time with their fami- sion about where to have a nuclear in that bracket—14, 15. So that is how lies. S. 4 will help them arrange it waste site in America. We will move on we would start it off. It would apply to while keeping a full paycheck. that quickly. some 44 million youngsters. A landmark of bipartisanship in the But S. 8 is the Superfund Cleanup Ac- The bill would raise the contribution last Congress was built to reform the celeration Act. It offers a more effi- limit for the spousal IRA from its cur- Nation’s antiquated laws concerning li- cient, commonsense approach to solv- rent $250 to $2,000, and it would allow ability. Unfortunately, despite the best ing some of the Nation’s worst environ- for tax and penalty-free withdrawal efforts of Senator GORTON and Senator mental problems involving toxic waste. from an IRA for the cost of higher edu- ROCKEFELLER and others in forging a We have sites all over the country, cation, for small business startups and compromise, that product liability re- hundreds of them. And yet almost— for long-term unemployment. form legislation again fell victim to well, I will not say almost none, but What better way to encourage people the President’s veto pen. very few have actually been cleaned up, to look after themselves and address We owe it to the American people to I think maybe as few as 37. Yet, we the needs of education and startups of try again. We need legal reform. The have spent millions, probably a billion businesses and unemployment than to American people want it. They expect or more dollars. We are not getting our encourage them to have an IRA with it. They want broad legal reform. But money’s worth. This legislation is di- the tax benefits that go with it? at a very minimum, we should do it in rected at doing that. S. 2 would also lower the antifamily this product liability area where so Senator SMITH and Senator CHAFEE inheritance tax—I call it the death much good work has already been done. will introduce this legislation. It would January 21, 1997 CONGRESSIONAL RECORD — SENATE S125 end the costly litigation that has para- This person on the radio was saying, do Mr. President, let me just comment lyzed the cleanup effort. That is what whatever is necessary. Bring in the Na- and take a second to compliment has happened. There has been nothing tional Guard if you have to, but we President Clinton on his inaugural ad- but a lot of litigation and no real have to break up these gangs in our dress yesterday. President Clinton cleaning up where we needed it. And Nation’s Capital. made two or three comments that I that has diverted basically all the re- Mr. President, these 10 bills, along would like to refer to. sources of the program. with the balanced budget constitu- He said Government is not the prob- S. 8 returns to the original vision of tional amendment, form a very ambi- lem, it is not the solution; the Amer- the Superfund program—the protection tious agenda. It will take time to ac- ican people are the solution. I think of human health and the environment complish. I do not think we should put you will find that we Republicans real- through realistic cleanup standards; a time limit on them and say we must ly do believe the American people are economic redevelopment of affected do them by the end of February or the the solution. We have a lot of ideas for sites; and fair treatment of individuals, end of March in each instance. We saving Medicare, saving Social Secu- small business and municipalities. should do them as soon as we can, but rity, a lot of different things where we S. 9 is the Paycheck Protection Act, we should make sure everybody has a really want to involve the American introduced by the assistant majority chance to review them, make their people. I compliment the President on leader, Senator NICKLES, who is here. case for or against them. Let us have that. He said that Government should He will introduce this legislation later full debate, but let us get it done and live within its means. on. It forbids corporations and labor let us do it right. There will be adjust- The first item that Majority Leader unions to take money from their stock- ments and accommodations along the LOTT mentioned was a constitutional holders and employees or members for way, but we are trying to get started in amendment to balance the budget. We political purposes without that per- a very positive way and offer bills we have overwhelming support among our son’s expressed consent. You will note think are important for the quality of colleagues for passage of a constitu- it is applicable to the corporations, to life and the future of our country. tional amendment to balance the budg- management and to the workers, so The goal of the Senate Republicans is et. We are equally serious about pass- that there is protection against this very clear, I think, and unchanging in ing legislation to implement a bal- type of intimidation and, in fact, the this effort. It is to free the energy and anced budget. We want that to happen. practice of taking money from dues- genius of the American people so that Unfortunately, President Clinton ve- paying members and using it for purely they can achieve a better quality of toed that in the last Congress. We want political purposes. life. The legislation we are introducing to work with the President. He said in I think it is a matter of simple jus- today we believe will allow them to do the inaugural address that we should tice. No one should be compelled by that—for themselves, their families live within our means. We are going to any organization to pay for someone and their communities—in a society try and make that happen. We look for- else’s campaigning or lobbying. Right that will be more secure, more pros- ward to working with this administra- here this is where true campaign re- perous and more caring. tion to make that happen. form starts. Mr. President, I yield the floor to the The President also said we should put Finally, S. 10, the Violent Juvenile Senator from Oklahoma. petty politics and extreme partisanship Offenders Act is a companion bill to The PRESIDING OFFICER. The Sen- aside. He is right. This Congress, this Senator HATCH’s S. 3 and is the result ator from Oklahoma. political year, maybe in the last year of not only his efforts but those of Sen- Mr. NICKLES. Mr. President, how or two, has become too partisan and ator DOMENICI, Senator ASHCROFT, and much time remains of the majority maybe too extreme in working with Senator THOMPSON. It rests on the prin- leader’s time? the administration. It has been too ciple that violent juveniles must be The PRESIDING OFFICER. Seven partisan. It has been too extreme. We held personally accountable for their minutes 35 seconds is remaining under need to put that aside. actions. the majority leader’s time. So I welcome the President’s com- There has been a rising increase in Mr. LOTT addressed the Chair. ments. I look forward to working with juvenile crime in America. We all know The PRESIDING OFFICER. The ma- President Clinton in this administra- the stories of very young people with jority leader. tion to implement many of the things automatic weapons going down the Mr. LOTT. Mr. President, I would be he talked about. A lot of things we street, shooting innocent people sitting glad to yield the remainder of that have in this agenda are targeted to- on their porches. We know that many time to Senator NICKLES if he would ward doing exactly that. of them wind up not being tried as like to go ahead and begin his com- The constitutional amendment to criminals because of their age. It is a ments. balance the budget has overwhelming delicate balance. But we cannot ignore The PRESIDING OFFICER. The Sen- support among the membership, and the problem, and we must be, I think, ator from Oklahoma. rightfully so. We should live within our stronger in how we deal with these ju- Mr. NICKLES. Mr. President, I wish means. Almost all the States have pro- venile offenders. to congratulate and compliment the visions in their constitution saying This bill would assure that violence majority leader of the Senate for his they will not spend more than they and repeat juvenile offenders are treat- statement today, but also for his work take in. We should follow that guided as adults. It targets violent youth with all of the 55 Republican Senators ance. gangs, toughens penalties for violent to put together this list. President Clinton, during the cam- and drug crimes, and fosters the kind This is a list which we have spent paign, said he was in favor of tax relief. of crime prevention and juvenile reha- some time on. When I say ‘‘we,’’ I am S. 2, the second bill we have in our list, bilitation that have proven records of talking about all 55 Republican Sen- does provide for family tax relief. Even success. ators, who had some input on this list. during the campaign, President Clinton I heard on the radio this very morn- That is a little unusual. We have not talked of a $500-per-child tax credit. ing, when I was getting ready to come done that before. We came up with 10 That is the foundation of our tax bill. to the Senate, that local officials of bills. In the past, our tradition has Senator LOTT mentioned 80 percent of the District of Columbia are calling been to introduce five. We came up the tax bill we have introduced as the out for help in dealing with gangs in with 10. leadership package. We passed that last this city, because just last week a I might mention later today, or in year, but again President Clinton ve- young man, young boy, on his way the next few days or weeks, we had sev- toed it. He said in the campaign that home from school, maybe 16 years old, eral other bills people wanted to have he was in favor of it. We want to pass was accosted by a couple gang mem- in this list. But this list represents a it this year and we want it to become bers. They wound up dragging him into consensus of an overwhelming number law. We are not interested in passing the woods where they shot him, killed of Republicans, that these are positive legislation for legislation’s sake or for him. He was not involved in the dis- things we can do, should do, and that political points’ sake. President Clin- pute, but he wound up losing his life. we should pass this year. ton is not running again. We want S126 CONGRESSIONAL RECORD — SENATE January 21, 1997 these bills to become law because they day, maybe for more time off, maybe Mr. DASCHLE. Let me begin by will have a positive, real impact on for time to visit their kids’ athletic thanking the Senator from Oklahoma American lives. events, they have the right to do so for the tone of his comments. I did not We define the child tax credit as chil- without having the Federal Govern- have the opportunity to hear them all, dren up to age 18. President Clinton’s ment enumerate that this is what you but in keeping with the expressions of proposal limited it to kids under 12. We have to offer by law, and not be paid the majority leader and others who think it should include at least kids up for that time. We give them, through have indicated a desire to find ways to 18. I told some people that my kids flextime and through the comp time, with which to create greater harmony range up to age 26. We might have an the ability to have the flexibility in and greater opportunity for the coun- amendment to make it age 26. The bill their schedules to meet their family’s try through increased bipartisanship, I we introduced takes it to age 18. needs, all of which are different. All of appreciate very much his comments We provide estate tax relief. There is our families are different. All of our today. a small business advisory council that families have more time demands that f advises the President and those of us in are at variance. This gives them that PRESIDENT CLINTON’S Congress and they always have an es- flexibility, and probably would be the INAUGURATION tate tax relief on their list. Why? Be- most family friendly thing we can do. cause if you have a taxable estate right We provide for a balanced budget Mr. DASCHLE. Mr. President, before now above $600,000, Uncle Sam starts package which will say the Govern- I begin talking about the bills, let me taking big bites. If your estate goes up ment will live within its means. We are make an initial comment about yester- to a million above that, Uncle Sam not going to spend more than we take day. We all witnessed a stirring cere- wants 35 percent of it. If you have an in. Interest rates will come down. mony as President Clinton and Vice estate of 3 million, say your business is Homes will be more affordable. When President GORE were sworn in to a sec- as a farmer or a rancher or a business- we talk of family tax credits, if you ond term in office. President Clinton is man, if it is 3 million above the $600,000 have three kids under the age of 18, the first Democratic President to earn deduction, Uncle Sam says, ‘‘We want that is $1,500 more you get to spend as a second term since Franklin Roo- 55 percent of anything above that you desire. Maybe it is for education, sevelt. This is truly a historic event. amount.’’ Instead of protecting prop- maybe it is for food on the table, Anyone who witnessed the inaugural erty, it is confiscating property. We maybe it is for a home. You make that ceremony knows that, despite the cold want to reduce that, especially for decision, because we decided it is your weather, this quadrennial rite of Amer- small business and especially for fam- money, not Government’s money. ican democracy was warmed by great ily-owned operations. That is in our Then the flextime proposal, where we pageantry, bipartisan good will, and a package, as well. are basically saying that families can strong sense of national purpose and We have capital gains relief because make the decisions. You have the flexi- unity. we think we tax transactions too bility in your schedules to work out Yesterday’s inaugural ceremony much. We actually tax transactions what is mutually beneficial with you lasted a few minutes, but many weeks more than almost any of our other in- and your employer. of hard work preceded the event. Ev- dustrial competitors. We need to re- The PRESIDING OFFICER. The time erything from construction of the inau- duce the taxes on transactions. If we do of the Senator has expired. gural platform to ticket dispersal, se- so, we will have more transactions and Mr. NICKLES. I see the minority curity, and the traditional lunch in the Government will make more leader is not here, and I ask unanimous Statuary Hall, plus thousands of other money, not less money. That is in our consent for an additional 2 minutes. tasks, required a great deal of prepara- package. We can do better with the The PRESIDING OFFICER. Without tion and attention to detail. economy. objection, it is so ordered. On behalf of Senate Democrats, I join I think we put together a good pack- Mr. NICKLES. We also have an addi- with Senator LOTT and express my age, one that is family friendly. We tional provision called the Paycheck gratitude to the Joint Congressional have a provision that Senator LOTT al- Protection Act. It is fundamentally Committee on Inaugural Ceremonies; luded to called the Family Friendly prodemocracy. It says no person should in particular, the distinguished Sen- Workplace Act—Senator ASHCROFT has be compelled to contribute to a politi- ator from Virginia, Mr. WARNER, and worked hard on it—giving families the cal organization without their consent. the distinguished Senator from Ken- option that if they work a few extra That person may be a stockholder. No tucky, Mr. FORD, for all of their efforts hours one week, we think they can one should be compelled, as a condition toward making this such a successful take off for their kids the next week. of employment, to contribute to a po- inaugural event. Senators FORD and Why have good Government come in litical group or organization, whether WARNER and the other members of the saying, ‘‘We mandate you have time off that be a PAC, whether it be a union committee put in long hours under for PTA.’’ Why not let the families and organization or what. No one should be very tight deadlines. Time that they employees make that decision? So we compelled. That is what this bill says. might have preferred to spend with do that. We provide much greater flexi- No one will be compelled to contribute family or in their home States attend- bility for families, employers and em- to a political organization or entity or ing to constituent matters was sac- ployees in this bill. It is all on a vol- candidate against their will. They rificed for the benefit of all Americans untary basis, where they can work a would have to sign a written authoriza- who enjoyed this inauguration. few more hours one week and take tion form before they would have con- Senator WARNER was chairman of the time off for whatever they desire the tributions taken out. Joint Inaugural Committee this year. following week. You do not need Gov- Mr. President, I compliment Senator He brought to this duty the same dili- ernment’s blessing to do it. They allow LOTT and all my colleagues for their gence, resolve, and reverence for the for compensatory time. Instead of tak- work in putting this list together. I congressional rules and traditions that ing time-and-a-half if they have to look forward to working with the mi- he brings to his job as chairman of the work an hour or two above 40 hours, if nority leader and others on the other Senate Rules Committee. This was his they want they can bank some time side of the aisle. I know they have first inaugural ceremony as chairman, and take time-and-a-half off. If they their agenda list. I look forward to and he should be commended for a job worked 44 hours, under present law hearing what that is, and I look for- well done. they would be entitled to 6 hours of ward to working with them to see if we This is the fifth time Senator FORD overtime pay. If they want to keep it can have several items beneficial not has served as chairman or vice chair- that way, they have the right to do so. for Congress but for the American peo- man of the Inaugural Committee. Like If they would like to have 6 hours off ple. everything he does as Senate Demo- and maybe have a day off or maybe The PRESIDING OFFICER. Under cratic whip, ranking member of the work some other kind of combination the previous order, the time is reserved Rules Committee, and senior Senator or schedule that meets their family’s for the minority leader for up to 30 from Kentucky, Senator FORD once needs and desires, maybe for a vacation minutes. again approached the responsibility January 21, 1997 CONGRESSIONAL RECORD — SENATE S127 with great humor and tenacity and a election, there has been a good deal of consider proposing the issue to the Su- deep respect for our best American tra- rhetoric from both sides of the aisle, preme Court again. dition. Senator FORD is as dependable from both Houses of Congress, from the There was an article recently in the and dedicated a public servant as any- White House, expressing an interest in op-ed pages of the Washington Post, one who has ever served in this great dealing with the 105th Congress in ways stating that a case could be made that institution, and all Americans owe a that are dissimilar to those dealt with what we need to do is revisit this in debt of gratitude to the citizens of Ken- in the 104th. We have heard the rhet- this Supreme Court, to test the con- tucky, who have asked him to serve in oric. Now we have to demonstrate with stitutional limits they have proposed the U.S. Senate. our deeds whether or not that rhetoric in Buckley versus Valeo. Whether we I also express my thanks to the other will be true, whether or not the sincer- accept the decisions made in Buckley members of the committee for their ity of our rhetoric will actually match versus Valeo, and other subsequent de- hard work. A special thanks goes to the sincerity of our work. cisions, however we decide to do this, the leader, as well as to others in the We can use the issues that we will the question is this: Can we get cam- House who made this whole event the lay out and describe today as wedge is- paign spending under control? I believe success that it was yesterday. Many of- sues, issues that divide us; or we can the answer is yes. I believe we must do ficers and employees of the House and use those same issues as issues that that in this, the 105th Congress. Senate, along with representatives unite us. That will be our choice. In the last 10 years of debate on cam- from the executive branch, assisted Again, today, there will be rhetoric. paign finance reform, Congress has pro- these congressional leaders in this Again, today, we will hear from both duced 6,742 pages of hearings; 3,361 floor enormous but ultimately successful sides about the importance of trying to speeches, not including this one; 2,748 task. find common ground. The question is, pages of CRS reports; 1,063 pages of All who contributed to this historic will we find it? And if we do, how will committee reports; 113 Senate votes event should be proud of their efforts we? dealing with campaign finance reform, and know that their country on this Today, I offer the Senate Democrats’ and 1 bipartisan Federal commission. day after the inaugural is very grate- priority legislation for the 105th Con- We have had 522 witnesses; 49 days of ful. gress. This is our agenda. The Families testimony; 29 sets of hearings by 8 dif- f First agenda is neither radical nor rev- ferent congressional committees; 17 olutionary. Instead, it is moderate. In filibusters; 8 cloture votes on 1 bill; 1 SENATE DEMOCRATS’ AGENDA our view, it is achievable. Our agenda Senator carried to the floor by the Ser- Mr. DASCHLE. Mr. President, as we starts with the fundamental premise geant at Arms and forced to vote on begin the first session of the 105th Con- that our political system can’t work if campaign finance reform, and 15 re- gress, American families are asking people believe the system is rigged ports by 6 different congressional com- some difficult questions, most of which against them. Yet, more and more mittees. That is just in the last decade. seek answers affecting their lives di- Americans believe that. More and more There is only one thing left to do: rectly. How am I going to put my kids Americans have chosen not to go to the Enact campaign finance reform now. through college? How do we pay the polls. At the very time we need more Now. We should do it in the first 100 doctor bills if the kids get sick? Will I involvement, their response to what days of this Congress so that the new have enough money when I choose to they see is to stay away—and not with- rules are in place by the next election. retire? out reason. So we are proposing as our Mr. President, that is S. 11, our very Our challenges this year ought to be first bill comprehensive campaign fi- first bill, and it is first because I speak to provide the answers to those ques- nance reform. with virtual unanimity within our cau- tions. As we do, we all recognize the The problem with the current system cus about the need to address this limits of Government, and we should isn’t limited to soft money or hard issue. I know there are concerns ex- all recognize the unlimited potential of money, corporate money or PAC pressed and felt deeply by Members of achievement through bipartisanship. money, your money or my money; the the other side. This ought not be the Everything important which we accom- problem is that there is too much wedge issue I described a moment ago. plished in the last Congress—health money, period. And it is getting worse This ought to be a bridge issue. care reform, the minimum wage in- with every election. The truth is, there Let us build that bridge to allow us crease, mental health equity—was ac- are no limits anymore, given the Su- success in dealing with it soon. complished only when we realized that preme Court decisions. Our second bill is aimed at increasing only by reaching across the aisle in an I have enormous respect for Senators the income of American families and effective way, passing legislation with FEINGOLD and MCCAIN. There is much the competitiveness of American busi- overwhelming bipartisan support, in their proposal that I admire and I ness by investing in education. Accord- could we ultimately send the right think we should adopt. In my opinion, ing to the Bureau of Labor Statistics, message to the American people—that their bill should provide a way with 60 percent of all jobs created between we hear them and we want to respond which we come together to find com- now and the year 2005 will require edu- to the problems affecting their daily mon ground. But it does not go as far cation beyond high school. Yet, every lives. If we remember that lesson and as I would like it to. We need to limit year fewer families can afford the tui- pick up in this Congress where we left spending, special interest influence, tion. In the last 10 years, the cost of off in the last one, then we can make and level the playing field for all can- public college education has increased this not only a productive Congress, didates. 23 percent. It is even worse in private but a historic one. S. 11 establishes voluntary spending colleges: 36 percent. We can, in this Congress, pass a budg- limits, and it gives candidates incen- For the average family, the cost of et for the remainder of this century, a tives to live within those limits. It re- sending one child to college is now 14 plan that eliminates the deficit and in- duces television and postal rates. It percent of total family income. The av- vests in our people and their potential, also restrains soft money and PAC con- erage debt load for a South Dakota col- so that the 21st century will be another tributions. It toughens restrictions on lege student is up by one-third just American century. If we work to- foreign contributions and extends elec- since 1991. Eighty-five percent of South gether, we can answer those questions tion laws to cover so-called independ- Dakota’s college students today are on that worry Americans most, but we ent expenditures. financial aid. That is right; 85 percent must find a way to do what the Presi- I know that any talk of spending lim- rely on college aid in order to go to dent said yesterday and what I heard its raises constitutional questions. So, school in my home State of South Da- the leader talk about just now—work in addition, Senator HOLLINGS and I kota. together. will offer a constitutional amendment Our bill, the Education for the 21st Cooperation is in the best interest of that will allow Congress to set reason- Century Act, includes the President’s the American people, and, frankly, it is able limits on how much people can proposal to create a $1,500 Hope schol- in our own self-interest. Good Govern- give and spend in Federal elections. I arship for the first 2 years of college. ment is still good politics. Since the hope, Mr. President, that we will even The Hope scholarship is a refundable S128 CONGRESSIONAL RECORD — SENATE January 21, 1997 tax credit. It will pay for more than children have no public or private Our fourth bill seeks to increase the full college cost of tuition at most health insurance. In fact, children are Americans’ retirement security. More community colleges, or it can be used one of the fastest growing groups of un- than 51 million Americans today—half as a substantial downpayment at a insured. Each year more and more chil- the private work force—do not have a more expensive 4-year school. dren lose private health coverage. And pension. Only one-fifth of South Dako- Our bill also includes the President’s this trend is almost certain to continue ta’s small business employees cur- proposed $10,000 per year higher edu- as employers continue to reduce their rently have pension plans. Last year, cation tax deduction for families with health insurance costs by dropping de- in the bill that contained the minimum incomes up to $100,000. In addition, we pendent coverage for their workers. wage increase, we passed laws that help propose a new partnership to help com- These are not children of America’s expand pension coverage to an addi- munities repair and replace schools poorest families. Fortunately, they tional 10 million workers. that are overcrowded, obsolete, and have Medicaid. A majority of uninsured But so much more remains to be even dangerous. According to the Gen- children are from two-parent families done. Because of a loophole, more than eral Accounting Office, one-third of all where one or both parents work full 32,000 large pension plans covering 23 schools today in this country need ex- time. It is unconscionable that a par- million Americans—and containing tensive repair or replacement. Over 30 ent could work 40 hours a week 52 more than $1 trillion in assets—are percent of the schools in this country weeks a year and still not be able to still not effectively audited. The Re- are unsafe today for children to inhabit buy basic health coverage for his or her tirement Security Act we are introduc- and obtain the education they deserve. children. ing today strengthens the accounting Sixty percent of schools have at least So today we are introducing a bill to requirements for those funds. one major problem, like a leaky roof or make private coverage for children Our bill also requires employers to crumbling walls. available to working families. The diversify the savings of employee in- Schools have always been and should Children’s Health Coverage Act of 1997 vestments in 401(k) plans just as they remain a local and State responsibil- will provide tax credits to help working must for more traditional kinds of ity—and I emphasize that. But the families purchase private coverage for plans so the bankruptcy of one com- enormity of the problem, an estimated their uninsured children. Our bill in- pany cannot devastate a pension plan. $112 billion nationwide, demands a cludes coverage for pregnant women For multiemployer plans, which typi- partnership that includes a role by the because we know that the quality of cally cover union members, our bill in- people of the United States at the Fed- prenatal care can have lifelong effects. creases the Federal guarantee avail- eral level. Our bill reduces the interest The tax credit would cover most of a able should a plan become insolvent. private health insurance premium for rates for new school construction and The benefit level has remained flat the lowest-income families and de- repair by up to 50 percent. The interest since the creation of the program in crease on a sliding scale for families rate reduction is equal to subsidizing $1 1980. Five million workers with pen- with higher incomes. out of every $4 in construction and ren- sions change jobs every year. Our bill To stimulate competition for chil- provides those workers with new pro- ovation spending. dren’s health insurance, we require We support the President’s proposal tections so they don’t lose the money that insurance companies that do busi- to make sure that every child can they have invested in a pension when ness with the Federal Government— read—and read well—once those they change jobs or leave behind an in- through Medicare or Medicaid or the schools are built and repaired, by the vestment whose value will erode over Federal Employees Health Benefits time he or she finishes third grade. One time. It will do that by reducing by 2 Plan—to develop children’s-only poli- years the time it takes for a worker to of the best predictors of whether a cies. We seek to build upon, not re- child will eventually graduate from become vested. place, the current employer-based In addition, we will build on some of high school is whether he or she can health insurance system. Our bill, the pension reforms we passed last read by the end of the third grade. Yet therefore, includes provisions to deter year. Last year, by eliminating a lot of 40 percent of fourth graders—40 per- employers from dropping coverage for the red tape, we made it easier for cent—fail to attain even the basic level children of workers who qualify for small businesses to offer pension plans. of reading on the National Assessment this new credit. This year, let’s make it easier still by of Educational Progress test. Isn’t that Insuring children is good social pol- providing them with start-up costs. amazing? Four out of every 10 children icy, but it is also good economic policy. Last year, Congress removed the re- today when they reach fourth grade It costs about $20 for a doctor’s visit to striction that kept spouses who don’t cannot read at the level that will large- treat a child with strep throat but work outside the home from taking full ly determine their ability to learn for thousands of dollars to hospitalize a advantage of IRA savings opportunities the rest of the years they are in ele- child whose untreated strep throat if the other spouse was covered by an mentary school. eventually develops into rheumatic employer’s pension plan. This year, we Let us resolve in this Congress to in- fever. Studies show that having a regu- want to remove that restriction for crease those numbers dramatically. lar source of care cuts child health care spouses who do work outside the home. Let us accept the President’s America costs significantly. So the modest cost Last year, we made it easier for Reads challenge. Let us also make sure of this program will pay for itself many women to collect pension benefits they that our young people master the new times over and reduce health care costs are legally owed through a spouse or literacy by connecting every school in down the line. former spouse. Yet, 60 percent of America to the information super- Some of my colleagues favor a slight- women working in the private sector highway by the year 2002. ly different approach. Senators KEN- still lack pension plans. And, women’s This is our education bill. We ap- NEDY and KERRY favor providing fami- pensions benefits, on average, are only plaud our Republican colleagues for lies with vouchers rather than tax about half of men’s benefits. Let’s get joining us in the last weeks of the last credits to pay for their children’s rid of those inequities. Congress to support education, and we health care. These are differences in We are committed to keeping Social look forward to working with them to strategy only, Mr. President. I could Security and Medicare solvent—and we pass these proposals as well. support that approach, as I could the will. But Social Security and Medicare Our third bill builds on an important, approach I just described. Democrats were never intended to serve as retire- bipartisan victory from the last Con- are united in their determination to ment plans, only supplements to such gress, the Kennedy-Kassebaum health take this next modest step in health plans. Let’s agree in this Congress to bill. Kennedy-Kassebaum was a huge care reform. give Americans the tools they need to step in the right direction. Yet, a The United States is the only major retire with dignity. We can do it, if we record number of Americans, over 40 industrialized country in the world work together. million, are still without health insur- that does not guarantee health cov- Our fifth bill is aimed at two of the ance, and that includes 10 million erage for children. Let us work to- deadliest epidemics affecting young American children. In my State of gether in this Congress to erase that people. Those are the twin epidemics of South Dakota alone, more than 17,000 ignoble distinction. drug abuse and violence. January 21, 1997 CONGRESSIONAL RECORD — SENATE S129 Crime and drug use among adults are tle prices confirmed what many ranch- such as worker training by companies, down. But juvenile crime and drug ers had long suspected: Low cattle employee ownership, and infrastruc- abuse is accelerating. Over the last prices appear to be tied in some cases ture. It will also free up capital for in- decade, drug-related juvenile crime in to unfair competition posed by the vestment and promote retirement secu- this country more than doubled. And largest beef processors. rity by giving people more flexibility youth violence—particularly homicide Our bill enables USDA to make in the way they manage the gains on committed with guns—skyrocketed. changes in the cattle market to give their homes and family farms and busi- We must reverse these deadly trends. all producers—large and small—a nesses. Income security and retirement secu- chance to make an honest living and Our Brownfields and Environmental rity don’t really matter if we don’t compete fairly in the marketplace. Clean-Up Act will help clean up and de- have personal security—if we’re con- It requires the Secretary to define velop thousands of abandoned and constantly afraid for ourselves and our and prohibit noncompetitive practices. taminated industrial sites, or families. It mandates price reporting for all ‘‘brownfields,’’ across America. Our Youth Violence, Crime and Drug sales transactions to ensure a fair and Our bill helps States and commu- Abuse Prevention bill includes three honest price discovery system. nities evaluate these sites. It limits po- main parts. First, we will build on the Our bill also calls for a review of Fed- tential liability for buyers who buy successes of the 1994 Crime Act by con- eral lending practices to determine if these brownfields in good faith, so they tinuing the COPS program for two ad- the Government is contributing to don’t end up paying for someone else’s ditional years and putting 25,000 more meatpacker concentration. mistakes. And it provides grants to cops on the beat. In addition, it directs the President State and local governments to create Second, our bill invests in crime and and the Secretaries of Agriculture and low-interest loans for current owners drug abuse prevention. It extends the Health and Human Services to formu- and prospective developers. It is not a Safe and Drug Free Schools Program. late a plan for consolidating and substitute for Superfund reform, but a It expands existing drug courts, and streamlining the entire food inspection companion to it. creates new juvenile drug courts for system. There are an estimated 100,000 first-time, non-violent drug offenders. And it requires the USDA to develop brownfields in the U.S. Most already Anyone convicted in drug court has a a system for labeling United States have well-developed infrastructure of choice: mandatory treatment, or man- meat and meat products. Companies utilities and transportation. By restor- datory jail. will be encouraged to voluntarily label ing these lands, we can conserve pre- Our bill also offers incentives for pri- their products as originating from cious farmland and open space, and cre- vate industry to invest in research and United States livestock producers. ate new jobs and opportunities where development in medicines to treat her- The ultimate result of stifled com- they’re needed most. oin and cocaine addiction. And, it reau- petition in any market is always high- Our Working Families Child Care Act thorizes the Office of National Drug er prices for consumers. Let’s act to- increases the availability of good, af- Control Policy; if we’re going to fight a gether to make sure competition in the fordable child care. For too many fami- war, we need a ‘‘war room.’’ cattle industry remains fair and open. lies today, child care is simply not Prevention and treatment are essen- These are the top six priorities for available in their community. Or, the tial. But for youthful offenders who are Senate Democrats as we begin this new child care that is available is not what repeat, hardened criminals—for those session of Congress: Campaign finance they need—be that infant care or be- who commit the most heinous acts— reform, education, children’s health fore and after school care. For other it’s time to make the punishment fit care, pension security, juvenile crime families, child care may be available the crime. That’s the third part of our and drug abuse, and a strong rural but completely unaffordable. The cost bill. America. We are also introducing a of child care is often the most expen- Our bill changes federal law so that number of other bills today. sive—or second most expensive— violent juvenile offenders no longer are Our Working Americans Opportunity monthly bill a family incurs, following automatically released when they turn Act streamlines and improves Federal rent or mortgage payments. And for 21. worker training programs to keep pace those families who are lucky enough to We require all juvenile offenders to with our changing economy. We con- find affordable child care, the type of pay restitution to the victims of their solidate more than 150 Federal job care that is available may be of ex- crimes, and ensure victims’ rights to training programs over 14 agencies. tremely poor quality. speak at sentencing. And we put training dollars directly I hope we can work together in a bi- We give States the resources to hire into workers’ hands through a voucher partisan manner to address the child more prosecutors for juvenile courts. system to give people more choices, care needs of today’s working families. And create special juvenile gun courts and more control over their own fu- Also in our package is a bill to make where juvenile gun offenders can be tures. America’s agricultural safety net tried and sentenced on an expedited We’re also proposing a Targeted In- whole again by correcting some of the basis. vestment Incentive and Economic problems with the Farm Act we passed Our bill toughens penalties for pos- Growth Act. This country does not last year. Our bill expands crop reve- session of a firearm in connection with need and cannot afford another across- nue insurance. It removes caps on com- a violent or drug-trafficking crime. It the-board tax cut that provides a wind- modity marketing loans, and estab- extends to 10 years the statute of limi- fall for the wealthy. Instead, we pro- lishes loan rates as a percentage of the tations for all crimes of violence and pose targeted tax changes to both raise average market price. And it encour- drug trafficking. And it eliminates the the rate of economic growth and spread ages farmer-owned, value-added proc- statute of limitations for all murders. its benefits to increasing numbers of essing facilities. Finally, we propose tougher penalties Americans. Finally, we are offering the Paycheck for gang-related crimes. We will encourage investment in Fairness Act to address the continuing The sixth bill we are introducing small businesses and innovation by al- wage disparities between men and today is the Cattle Industry Improve- lowing gains on the sale of small busi- women. With more and more families ment Act. ness stock to be deferred if they are relying partly or entirely on women’s Cattle prices are lower than they’ve fully reinvested in other qualifying earnings, America simply can no been in years. If prices don’t rebound in small business equities. And by expand- longer afford this often glaring in- the immediate future, farm fore- ing the 50 percent exclusion on gains equity. closures, job layoffs by agriculture-re- from the sale of small business stock If there was a mandate in the last lated businesses and bank failures held for at least five years that we en- elections, it was a mandate for biparti- could occur across rural America. acted in 1993. san cooperation. The American people A special committee appointed last In addition, our bill will stimulate want us to work together, as we did in year by the Department of Agriculture investment in other activities that pro- the closing days of the last Congress, to look into the causes of the low cat- pel job creation and family incomes, to find answers to their questions. S130 CONGRESSIONAL RECORD — SENATE January 21, 1997 We can break the grip of special-in- in medicine are within our grasp. Yet, legislation are located in today’s terest money on the political process. if America is to continue to prosper in RECORD under ‘‘Statements on Intro- Family incomes have been stagnant the next century, Americans must reduced Bills and Joint Resolutions.’’) too long. We can get them moving in tain the values and traditions estab- Mr. COVERDELL addressed the the right direction again. lished by our Founding Fathers. Chair. We make 2 years of college the new Since the beginning, America has The PRESIDING OFFICER. The Sen- standard for education in this country. been protected by the moral founda- ator from Georgia is recognized. We can guarantee that every child in tions on which she was established. (The remarks of Mr. COVERDELL per- America is able to see a doctor—and Values like personal responsibility, lib- taining to the introduction of S. 1 are save on health care costs in the long erty, respect for human life, and an located in today’s RECORD under run. abiding faith. ‘‘Statements on Introduced Bills and We can significantly increase the These values have made America a Joint Resolutions.’’) number of Americans who are able to shinning beacon on a hill and the envy The PRESIDING OFFICER. The Sen- retire with dignity and security. of the world. ator from Utah is recognized. We can make our communities safer Sadly though, we have seen a steady (The remarks of Mr. HATCH and Mr. and preserve rural America. We can erosion of these values and beliefs. This CRAIG pertaining to the introduction of help small businesses to create the jobs raises a significant question: Where are Senate Joint Resolution 1 are located of the 21st century and help workers we headed? Quo vadis America? in today’s RECORD under ‘‘Statements acquire the skills that will be de- Mr. President, I believe we are in a on Introduced Bills and Joint Resolu- manded by those jobs. battle—in the sense that we are en- tions.’’) We can do all of this, and more, if we gaged in a struggle for the soul of (The remarks of Mr. HATCH pertain- work together. Democrats are ready to America. The moral decay has also ing to the introduction of S. 3 are lo- start today. Mr. President, I yield the chewed away at the institution of the cated in today’s RECORD under ‘‘State- floor. family and led to soaring rates of ille- ments and Introduced Bills and Joint The PRESIDING OFFICER (Mr. gitimacy and drug abuse. Resolutions.’’) (The remarks of Mr. HATCH pertain- KEMPTHORNE). Under the previous The liberal establishment has turned order, the next 60 minutes will be a blind eye to what has been going on ing to the introduction of S. 10 are lo- under the control of the majority lead- in America. Their supporters from the cated in today’s RECORD under ‘‘State- er or his designee. Hollywood crowd to Planned Parent- ments on Introduced Bills and Joint Who yields time? hood set forth an agenda that eroded Resolutions.’’) Mr. HATCH. Mr. President, I also Mr. HELMS addressed the Chair. the values of this country. want to note that I have filed three The PRESIDING OFFICER. The Sen- We live in an era when it is fashion- other bills today; in particular, the ator from North Carolina. able to pretend that our Founding Fa- Curt Flood Act of 1997, which is the f thers did not build this country upon baseball antitrust bill that I believe biblical principles. UNANIMOUS-CONSENT AGREE- now is coming to fruition, which is Mr. President, on September 7, 1864, MENT—BILLS PLACED ON CAL- something that we have tried to do for Abraham Lincoln thanked a group of ENDAR PURSUANT TO RULE XIV a long time. We have named it after citizens for a Bible he was given say- Curt Flood, who died a day or so ago, Mr. HELMS. Mr. President, pursuant ing, ‘‘In regard to this Great Book, I and who really deserves the recogni- to rule XIV, I shall shortly send to the have but to say, it is the best gift God tion because of the fights that he led desk eight bills to be considered en has given to man. All the good the Sav- on this act in organized baseball. That bloc and considered to have been read ior gave to this world was commu- is S. 53. for the first time and be objected to nicated through this book. But for it We have also filed S. 54, which is the following their second reading en bloc. we could not know right from wrong.’’ Federal Gang Violence Act of 1997, a I ask unanimous consent that be in It is imperative, that as we look to bill by Senator FEINSTEIN and myself. order. the next century, we not forget what She has worked very hard with me and The PRESIDING OFFICER. Is there brought us to this point in history—the others on the Judiciary Committee, objection? Without objection, it is so faith and ideals of our forefathers. and we certainly want to mention her ordered. Alexis de Tocqueville, after traveling Mr. HELMS. Mr. President, I send sterling work on that bill. throughout this country, found the Finally, the Civil Justice Fairness the bills to the desk. I ask unanimous source of America’s strength. He stated consent that the statements with each Act of 1997, which is already intro- that America’s greatness lies in its duced. be printed in the RECORD. churches and synagogues. The PRESIDING OFFICER. Without (The remarks of Mr. HATCH pertain- Mr. President, the legislation that I ing to the introduction of S. 53 and S. objection, it is so ordered. will introduce today will go a long way Mr. HELMS. Mr. President, today I 54 are located in today’s RECORD under to ensuring that America’s foundations ‘‘Statements on Introduced Bills and will introduce a series of eight bills to: remain secure. First, restore the right of our children Joint Resolutions.’’) I thank the Chair and yield the floor. Mr. HATCH. I thank the Chair. I to pray; second, restore the rights of The PRESIDING OFFICER. Under yield the floor. the unborn; third, strengthen the pen- the previous order, the bills will now be Mr. ASHCROFT addressed the Chair. alties for drug dealers and violent acts placed on the calendar pursuant to rule The PRESIDING OFFICER. The Sen- of crime; fourth, restore the supremacy XIV. ator from Missouri is recognized. of the individual over Government-im- Mr. ROTH addressed the Chair. (The remarks of Mr. ASHCROFT per- posed quotas; and fifth, protect the The PRESIDING OFFICER. The Sen- taining to the introduction of S. 4 are constitutional right to hold and ex- ator from Delaware is recognized. located in today’s RECORD under press moral beliefs. Mr. ROTH. I thank the Chair. ‘‘Statements on Introduced Bills and Mr. President, our traditions, our (The remarks of Mr. ROTH pertaining Joint Resolutions.’’) children, and our institutions which to the introduction of S. 2 are located (The remarks of Mr. ASHCROFT per- made this country great, are all under in today’s RECORD under ‘‘Statements taining to the introduction of S. 5 are assault. They are not threatened in the on Introduced Bills and Joint Resolu- located in today’s RECORD under military sense—instead they are tions.’’) ‘‘Statements on Introduced Bills and threatened by moral decay. This Na- Mr. ROTH. I yield the floor. Joint Resolutions.’’) tion simply must regain its moral foot- Mr. CHAFEE addressed the Chair. Mr. MACK addressed the Chair. ing. The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- We are less than 4 years away from a ator from Rhode Island. ator from Florida. new century full of promise for this Mr. CHAFEE. I thank the Chair. (The remarks of Mr. MACK pertaining great country. New technologies (The remarks of Mr. CHAFEE and Mr. to the submission of Senate Resolution abound and unprecedented discoveries SMITH pertaining to the introduction of 15 are located in today’s RECORD under January 21, 1997 CONGRESSIONAL RECORD — SENATE S131 ‘‘Submission of Concurrent and Senate young people in schools across this Second, Mr. President, is an area Resolutions.’’) country, to make sure they are going that I consider of enormous importance The PRESIDING OFFICER. Under to be able to take advantage of the lat- and that is to address the needs of 101⁄2 the previous order, the minority has 1 est in technology and also resources to million children who are uninsured hour under their control. The Senator make sure we are going to be able to today. Ten and a half million will be from Massachusetts is recognized. train teachers so that they will be able uninsured over the course of a particu- Mr. KENNEDY. I thank the Chair. to be well-trained and able to impart to lar year. The leader has outlined ap- f the younger people of this country the proaches to addressing this issue. skills that young people will need to be There is a rather dramatic definition COMMITMENT TO YOUNG PEOPLE able to use these technologies. of who those children are, Mr. Presi- Mr. KENNEDY. Mr. President, first It will be a modest program, but an dent. Children are the fastest growing of all, I rise to express appreciation to important program, that follows the segment of the uninsured population. our leader, Senator DASCHLE, who has leadership of CAROL MOSELEY-BRAUN, It is a rather dramatic phenomenon. over the period of these recent weeks to try and give focus and attention to They are the ones who are being and months been working with many many of the schools in local commu- dropped from coverage in the current in our caucus and I know will be work- nities across the country that are in insurance system. Nine out of ten of ing closely, as well, with those on the very dilapidated conditions. That is the 10.5 million children who are unin- other side of the aisle who are really true for most of the older cities of this sured have parents who are working. interested in this Nation’s commit- country. It is true in my own city of We have the Medicaid Program which ment to the young people of this coun- Boston. It is true in many of the older addresses the poorest children in this try in the field of education. communities of my State—Lowell, country. I welcome the fact that the I think all of us who have had the op- Lawrence, New Bedford, Fall River, administration is going to try and be portunity to travel through the coun- Springfield, Worcester, and many oth- more creative and imaginative in try, certainly in my travels around ers. It is equally true in many of the terms of reaching many of those chil- Massachusetts over this last year—no large urban areas. dren who are eligible for Medicaid. This is a very modest program, but a matter where we traveled—heard the These children are desperately in need very innovative and creative program concerns that parents had about access of a healthy start and are not receiving about leveraging limited financial re- and availability in areas of education it today. But we are talking about the as one of the paramount issues. sources to address those particular needs in a modest way. Hopefully, we next level; that is, the sons and daugh- The President has addressed those ters of working families. These are concerns by recommending a tax cred- will be able to bring additional support for continuation of that program into men and women who go to work every it, also a $1,500 tax deduction, and some day, they play by the rules, 40 hours a $10,000 that will be helpful to working the future. A very important continuing com- week, 52 weeks of the year making families. Also included in the Daschle mitment to literacy and expanding the America work. They are the backbone proposal are recommendations that we opportunity for children to read in our of so much of what is right in our soci- consider the interest on the debt for society so that we can achieve the goal ety, but their children are being left education in the same way that we that children who have reached the out and being left behind. would consider interest on the debt for third grade will be able to read in a The figures and statistics are a fierce machinery or the manufacturing indus- rather creative way is using the fund- indictment of what is happening in our try assets, in being able to provide ing that will be allocated in the var- society. As one of the major industrial some deduction for those expenses as ious competitive grants in ways that nations in the world, we still have one well. the young people of this country are of the highest infant mortality rates. That effectively, Mr. President, is to going to be able to read and to really We are 17th among the industrial na- respond to the President’s commitment challenge the young people in our Na- tions of the world. to the American people to make the tion, many who are going to schools More than half of all uninsured chil- next two grades beyond the 12th and colleges, to help and assist with dren with asthma never see a doctor, grade—13th and 14th, the first 2 years that undertaking, and to challenge with all the implications that has, in of college—accessible and available to American people, in general, to help terms of a child’s future development the young people in this country, so and assist young children in this coun- and growth. As the father of a son who that future generations will be able to try. now happens to be a Congressman who say that we, as a nation, during this These are some of the elements of it. had chronic asthma when he was a Congress, have committed this Nation There are a number of others which are child, it is unbelievable to me the dif- to the next two grades in the area of important, but I have summarized it, ficulties that he had in terms of coping education. Mr. President. I hope that we will be with the problems of asthma. I do not I think this is a bold commitment. I able to move ahead in the area of edu- know how he would have coped unless think it is a dramatic enterprise. I cation. It is extremely important. he had been able to get important med- think it will take the best judgment of At the end of the last session, we did ical attention. all of us to achieve and accomplish move forward in terms of funding var- We know one out of three uninsured this. But, nonetheless, as we under- ious programs. We are going to have to children who have recurring ear infec- stand it, the President’s budget that find the funding for these programs and tions never see a doctor. There are sig- will be submitted in the next 2-week also for the increased number of chil- nificant increases in the number of ear period will demonstrate the funds that dren who will be going to high school. infections and the number of children will be necessary to achieve it, and we We are seeing an increase in total stu- who are going deaf in our society from will be able to say, in effect, when we dent enrollment, and we want to make preventable diseases. And the list goes actually legislate these proposals, that sure that their particular needs are on. they are effectively paid and paid in going to be attended to, as well. I think The final point that I want to make full. That will be very, very important that is very important. That is some- in this area, Mr. President, is that ex- and a significant commitment to the thing I know Senator DASCHLE has ad- panding coverage for children is wise young people of this country. dressed, and I know that the Presi- economic policy. Included in the education proposal, dent’s program will address it. We are always going to have to come Mr. President, are a number of other Hopefully, we will have broad, broad back to justify this from economic items which I think all of us should be bipartisan support. For so many years means. We all know for every dollar able to embrace and endorse, and these in this body, the support for education that is invested in immunization, the have been outlined by Senator was broad-based and bipartisan. It is savings are $5 to $6. That is true in DASCHLE, I have been informed, earlier bipartisan and broad-based in the coun- terms of the investment in children’s during the course of the day. try, and we should try and find ways to health. It is true certainly in terms of There will be commitments in terms maintain that in the Congress and Sen- providing the kind of prenatal care of additional new technologies for our ate. that would be included in this program S132 CONGRESSIONAL RECORD — SENATE January 21, 1997 for expectant mothers. That is an ex- lies are very much concerned about. We should deal with the serious prob- ceedingly wise investment. These themes are all related to secu- lem of abuses by HMO’s by adopting There are different ways of funding rity for working families. What is more needed patient protections and stand- this proposal, Mr. President. My prin- important for working families than ards for care. cipal interest and I believe all of ours they are going to be able to make sure We should put Medicare on a sound is to get the job done. I will introduce that their children are going to get fiscal footing for the next decade, with- legislation that will ensure that all covered? What is more important for out dismantling the program or adding working families can afford to pur- working families than making sure to the already high health care costs chase private health insurance for that their children are going to be able that burden senior citizens. their children. I support an increase in to continue in the areas of education? We should protect Medicaid, as we the tobacco tax to cover this cost be- What is more important for working did last year, against any attempts to cause of the relationship between to- families than if they are going to be undermine protections for children, bacco and children’s health. A number able to look to the future with some senior citizens, and the disabled. of our States are moving forward in degree of hope and opportunities and The final months of the last Congress terms of addressing the issues of chil- some degree of security with the pen- were a period of considerable accom- dren’s smoking and all of the implica- sion reforms? plishment. We finally broke the long tions that has as a gateway drug. The I just mention, finally, unfinished stalemate over health care reform. We States know that curbing smoking business as part of our immigration passed a health insurance reform act. among young people is a sound and law last year. We are working to en- We made a start toward long-overdue wise way to proceed. sure protection for American workers, parity for mental health coverage. We But there are alternative ways to for American jobs that are being re- put an end to the insidious practice of fund this program. I have every inten- placed by foreign workers who are dis- drive-through deliveries, by guarantee- tion of working with our leader and placing those American workers, not ing newborn infants and their mothers those on the other side of the aisle to being paid the adequate kind of salary, a 48-hour stay in the hospital if they try and find alternatives. given the decency in terms of benefits. need it. Our principal interest is getting the They are replacing an American work- The Health Insurance Portability and coverage for these children. If we er in the first place and then because Accountability Act of 1996 ends some of achieve very little else in this Congress they are doing that at much less of a the worst abuses in the current insur- we should cover our children. We wage, much less benefits, being able to ance system. It guarantees that, as should move in those areas, and also be competitive to the disadvantage of long as you faithfully pay your pre- move in the areas of coverage of pen- other Americans with whom they miums, your insurance cannot be taken away—even if you become seri- sions for working families. We need to might be competing in producing widg- ously ill, or change your job, or lose make steps in the area of pensions ets, for example, and therefore seeing your job. In addition, insurance compa- when we realize that close to 60 percent other Americans that are going to lose nies can no longer impose new exclu- of all working families do not have any their jobs. sions for pre-existing conditions, as pensions at all and that there is an in- There are two basic and fundamental long as you do not let your insurance creasing number of working families concepts that underlie our basic problems with the issues of immigration— lapse. that do not have pensions. The legislation on mental health par- We are all thankful about Social Se- one is addressing the needs at the bor- der in terms of halting illegal immi- ity was a first step toward the day curity. We know we have challenges when those who suffer from mental ill- that have to be addressed in the areas grants that are coming here and, second, addressing the magnet of jobs— ness will receive the care they need and of ensuring its financial integrity over deserve. The ban on drive-through de- the period of the years but that is basi- the magnet of jobs. If you look at the Jordan study, if liveries is a wake-up call to unscrupu- cally a program to prevent people from you look at the Hesburgh study on lous health plans that exalt profits living in dire poverty. What we are what is the key issue in terms of at- over patients’ needs. talking about are those working fami- tracting immigrants, illegal immi- Now, we have a new Congress and a lies that have a standard of living who grants, immigrants that are going to new opportunity to build on these have been participants in our society, abuse the immigration system, you achievements. The crisis that put in so many instances served in the will find out it is jobs. Unless we are health care on the front-burner of pub- Armed Forces, want to be part of a going to make sure that Americans are lic policy has not gone away. In fact, it pension system, and are not part of it not going to have important jobs, and has become worse. Between 1990 and because of various complications that we are talking about hundreds of thou- 1994, the number of uninsured Ameri- have existed out there. We ought to sands of jobs a year in many in- cans rose from 34 to 40 million, and it make it easier for them to participate, stances—we have really failed on the continues to climb. encouraging employers as well as em- other extremely important effort in A quarter of the uninsured—over 10 ployees. terms of immigration reform. We had million—are children. One in every I would say in this area, Mr. Presi- important provisions in the immigra- seven children in America today have dent, no one has a greater interest in tion bill last year that Senator SIMP- no health insurance. Almost all of this area of pension coverage than SON supported, many of us supported. these children have parents who work. women in our society. They are the Those were dropped in the conference. Cutbacks in employer coverage are ones that often are the part-time work- We will come back to that particular worsening this problem, as more and ers. They enter and leave the work issue in this year. more employers decide to cut costs. force to meet various family needs and Many firms are shifting from full- f family requirements. And they are the time to part-time employees. Others ones, if you identify any group, are the HEALTH CARE IN THE 105TH are contracting out work to firms that ones that are left out and left behind in CONGRESS typically don’t provide benefits. Large terms of a national pension system. Mr. KENNEDY. Mr. President, if we employers with generous benefits are We have to be more responsive to act on health care in a spirit of biparti- reducing the number of employees eli- their particular needs. And I commend sanship this year and build on the ac- gible for the benefits. Other employers the work that has been done on this by complishments of last year, the new are dropping coverage for early retir- Senator BOXER and CAROL MOSELEY- Congress can be the Health Care Con- ees, or even all retirees. Cost-sharing is BRAUN and DIANNE FEINSTEIN, PATTY gress. going up, and coverage of spouses and MURRAY, BARBARA MIKULSKI, and many There are several significant health children is going down. Every 35 sec- in our caucus that have provided im- care goals that this Congress can and onds another child loses private insur- portant leadership in this very impor- should accomplish: ance. Parents should not have to live tant area. We should expand health insurance in fear that their employer’s failure to Finally, Mr. President, I want to coverage for children and the unem- provide coverage will deny their chil- mention one area that working fami- ployed. dren good health care. January 21, 1997 CONGRESSIONAL RECORD — SENATE S133 Every Member of Congress knows Insurance Reform Act passed by the Some of the worst abuses include that those who are uninsured or under- last Congress was based on the com- failure to inform patients of treatment insured can see the savings of a life- mon elements of proposals that had options; excessive barriers against re- time swept away by a single serious ill- previously been introduced by Repub- ferrals to specialists; irresponsible at- ness. Every Member of Congress knows licans and Democrats alike. Our cur- tempts to slash hospital care; unwill- that those who are uninsured are vul- rent plan for coverage of children also ingness to order appropriate diagnostic nerable to financial catastrophe, and meets that test. Every Republican pro- tests; inadequate support for clinical are too often denied the timely, quality posal and every Democratic proposal trials and academic health centers; re- care they need to avoid disability or introduced in the first 2 years of the fusal to pay for potentially lifesaving death. Children in particular often suf- Clinton administration expanded cov- treatment; and lack of fair ways to refer premature death or a lifetime of un- erage by providing financial assistance solve disputes or redress grievances. necessary suffering because they lack to low and moderate income families Some of these problems affect conven- the access to quality care that insur- to purchase private insurance. Almost tional insurance as well. In many ance provides. all of these proposals included extra as- cases, these failures have tragic con- All children deserve the health care sistance to purchase children’s cov- sequences. they need for a healthy start in life. erage. Members of Congress on both The ban adopted in the last Congress Every family deserves the security of sides of the aisle recognize the impor- on drive through deliveries was a first knowing their children will get the tance and priority of covering children. step in dealing with these problems. We health care they need. Unfortunately, Our legislation establishes no Gov- also attempted to deal with another too many American children lack that ernment mandates. It relies on the pri- flagrant HMO abuse—the so-called gag care, and too many families lack that vate sector to provide insurance and rules that prohibit doctors from men- security. deliver care. It imposes no price con- tioning certain treatment options with Uninsured children are less likely to trols. It builds on the efforts of 14 patients. Time ran out before we could see a doctor regularly. As they grow, States that already have similar pro- complete action, but the issue is high they tend to receive little or no treat- grams in place. on our agenda for 1997. Managed care ment, even when they need it for in- Our plan will be financed by an in- plans themselves have recently taken a jury or illness. If the case is serious crease in the tobacco tax, because that strong position against this abuse. But enough, they go to the hospital. The tax is an especially appropriate means there continues to be strong bipartisan only family doctor they know is the of funding children’s health coverage. support for additional steps to guaran- hospital emergency room. Society pays dearly for the health tee consumer protections and adequate More than half of uninsured children costs of smoking. We know that the to- care—and this Congress should be the with asthma never see a doctor. A bacco industry is targeting children. If Congress that enacts needed legislation third of uninsured children with recur- children start smoking, the industry in this area. ring ear infections never see a doctor, will live. If children stop smoking, the As we try to pass measures to im- and many suffer permanent hearing industry will ultimately die. It’s as prove the health of the American peo- loss. ple, we must not undermine effective Providing health care for children is simple as that. According to the Centers for Disease programs already in place. In the last sound public policy and also sound eco- Control and Prevention, if nothing Congress, a destructive proposal to nomics. It’s an investment in the fu- more is done, 5 million of today’s chil- slash Medicaid and convert it to block ture. Dollars spent immunizing a child dren will die prematurely as the result grants to the States threatened to or providing prenatal care can save of smoking. An increase in the tobacco strip children and parents, senior citi- hundreds or even thousands of dollars tax is the most important single step zens, and disabled of needed coverage. in future medical costs. At the end of the last Congress, Sen- we can take to reduce childhood smok- Senior citizens in nursing homes could have lost their protection of quality of ator JOHN KERRY and I introduced a ing, save lives, and lower the health program to make private health insur- costs of smoking over the long run. care, and their families would have ance coverage accessible and affordable In addition, we must do more to pro- been increasingly burdened by the high for all children through age 18. Work- vide health care for the unemployed. cost of long term care. Fortunately, ing families will have the financial as- For too many workers between jobs, that assault on Medicaid failed. In this sistance they need to purchase such coverage is difficult or impossible to new Congress, I hope that a bipartisan coverage, including care for pregnant afford. Too often, they are forced to let approach will keep such extreme meas- women, so that every baby has a their insurance lapse in order to meet ures from serious consideration. healthy start in life. We intend to re- other needs. Modest financial assist- Finally, we need to act responsibly introduce this legislation with other ance can make all the difference in on Medicare. President Clinton has Members of the Senate early this year. making coverage available and afford- proposed responsible steps to protect A similar plan is being introduced able. Massachusetts has already shown patients while extending the life of the today by Senator DASCHLE, and I am that such coverage can be provided at trust fund for a decade. Senior citizens hopeful action in this area will be high reasonable cost. deserve fair action by this Congress on on the agenda of both parties. Another key area to address is man- Medicare. But we should continue to The legislation that Senator KERRY aged care. In many ways, its current reject proposals to slash Medicare to and I intend to offer will make Federal growth is a positive development. Man- pay for tax cuts for the wealthy, or to assistance available to the States on a aged care offers the opportunity to ex- force senior citizens to give up their sliding scale to help families purchase tend the best medical practice to all own doctor and join private insurance health insurance for their children at medical practice. Good managed care plans under the guise of expanding pa- group rates, if they do not already have plans provide more coordinated care tient choice, or to pile additional out- coverage under an employment-based and more cost-effective care for people of-pocket costs on hard-pressed senior plan or an existing public program. The with multiple medical needs. citizens. covered benefits will include in-pa- It compares favorably with fee-for- This Congress can be the Congress tient, out-patient, and preventive service medicine in a variety of ways, that puts Medicare and Medicaid on a care—all comparable to the coverage especially preventive care and early di- stable basis for the next decade. This available under good group health agnosis of illness. But the same finan- can be the Congress that guarantees plans. cial incentives that make HMO’s and quality and consumer protection in The plan does not guarantee that other managed care organizations so managed care. This can be the Con- every child will have insurance cov- cost-effective can also lead to under- gress that gives every family health se- erage. But it will give every family the treatment or excessive restrictions. curity for their children and every opportunity to cover their children at Some managed care plans put their child the opportunity for a healthy a cost the family can afford. bottom line ahead of their patients’ start in life. This can be the Congress I hope this program will receive well-being—and pressure physicians in that grants the unemployed needed broad bipartisan support. The Health their networks to do the same. protection for health insurance. If we S134 CONGRESSIONAL RECORD — SENATE January 21, 1997 work hard together, this Congress can acted during President Clinton’s first Mr. DOMENICI. Madam President, achieve these goals, and both Repub- term. I am proud to have been a leader what is the parliamentary situation? licans and Democrats will deserve a in securing funding in the 1994 Crime The PRESIDING OFFICER. The mi- real vote of thanks from the American Act for placing 100,000 new cops on the nority has reserved its time. The Sen- people. streets of America’s communities. ator from new Mexico may seek time. f Thanks to the presence of the newly Mr. DOMENICI. I ask that I be per- funded police officers, a fully funded mitted to speak for 10 minutes. SENATE DEMOCRATS’ LEADERSHIP Violence Against Women Act, and the The PRESIDING OFFICER. Without BILLS Brady law—which has prevented more objection, it is so ordered. Mr. KERRY. Mr. President, I want to than 60,000 felons, fugitives, and stalk- f commend the Democratic leader for ers from purchasing handguns, violent THE REPUBLICAN LEGISLATIVE the package of initiatives he has devel- crime is lower than at any time since AGENDA oped on behalf of Senate Democrats. 1990. This bill balances the need to tar- Most of these proposals came out of the get and punish violent, young crimi- Mr. DOMENICI. Madam President, 1996 Families First agenda. I was proud nals with proven drug prevention pro- fellow Senators, I rise to compliment to be involved in that attempt to meet grams. We would put 25,000 more police the Republican leader on the announce- the real needs of everyday Americans officers on the streets by extending the ment today of the first Republican leg- and I am proud to be a cosponsor of COPS Program for 2 years, and we islative agenda for the 105th Congress. these bills today. would extend the Violence Against I believe that most Americans would The Education for the 21st Century Women Act to provide shelter for support the principles and the ideas Act, S. 12, continues Democrats’ his- 400,000 more battered women and their contained in these 10 pieces of legisla- toric commitment to education. Fed- children, increase Federal penalties for tion. I also believe that within the Sen- eral support for education is one of the juveniles by raising the mandatory re- ate itself there is a compelling major- best investments our Nation can make lease age from 21 to 26, increase pen- ity that will support these 10 proposals. to ensure a prosperous future. The bill alties for gang violence, and reauthor- From my standpoint, I support them would provide tuition assistance, re- ize the Safe and Drug Free Schools all, but I do reserve the right in two or store the student loan interest deduc- Program. three instances to change some of the tion, subsidize State and local bond is- Senator DASCHLE deserves our thanks things that are in the bills. But in no sues used to finance school construc- for his leadership in spotlighting these way does it minimize my admiration of tion and repair, fund the Parents as issues of education, children’s health and respect for the leadership for put- Teachers Program to assist parents care, retirement security, and youth ting these bills forth, and the Repub- who want to help their children become violence that are so critical to the fu- lican conference and the hard work successful readers, and create a tech- ture of our Nation and to the well- they put into coming up with these nology literacy challenge fund to cata- being of the American people. He and ideas and these basic premises. lyze and leverage State, local, and pri- his staff are to be commended for draft- I would like to just run through each vate efforts to increase technology lit- ing these bills to address the issues. I one quickly with a few thoughts of my eracy among our Nation’s school- look forward to working with Senator own, and then yield the floor to my children. DASCHLE and other Senators on both friend, the new Senator from Wyoming. The Children’s Health Coverage Act, sides of the aisle to pass legislation to The balanced budget constitutional S. 13, would help working families pur- meet these compelling needs. amendment: I do not think there is any chase private health insurance for I suggest the absence of a quorum. question that that piece of legislation their children. Although Senator KEN- The PRESIDING OFFICER. The speaks to the wishes of a huge percent- NEDY and I have a bill which uses a sub- clerk will call the roll. age of Americans. I would not be sur- sidy approach rather than a tax credit The legislative clerk proceeded to prised if as many as 70 percent or 75 approach, our bills are fundamentally call the roll. percent of Americans believe that we similar. Both would provide assistance Mr. DORGAN. Mr. President, I ask ought to build into our institutions a to children 18 and under and pregnant unanimous consent that the order for mandate—unless we have a war where women to purchase private health in- the quorum call be rescinded. we cannot abide by a balanced budget The PRESIDING OFFICER. Without surance, both would provide a com- —that we ought to produce a balanced objection, it is so ordered. prehensive benefits package, and both budget every year. Mr. DORGAN. Mr. President, I thank would provide assistance on a sliding Frankly, I have been working on the Chair. scale to the working parents of unin- budgets long enough to on the one (The remarks of Mr. DORGAN pertain- hand be pulled by those who say, ‘‘Why sured children. I look forward to working to the introduction of legislation ing with Senator DASCHLE, my fellow don’t we do it ourselves? Why do we are located in today’s RECORD under need the force in effect of a constitu- Democrats, and my Republican col- ‘‘Statements on Introduced Bills and tional amendment?’’ I guess the fact leagues to pass a bill this year to pro- Joint Resolutions.’’) vide children the health insurance they that we have all been working on it so f need and working parents the peace of long and can’t get it done—and that mind they deserve. SERIES OF INITIATIVES when we look across the industrial na- The Retirement Security Act, S. 14, Mr. DORGAN. Mr. President, I intend tions, all we find is that with the pas- includes a wide range of proposals de- to discuss at a later time a series of sage of time instead of spending less, signed to help Americans prepare for a initiatives that Senator DASCHLE dis- all governments spend more; instead of secure retirement. These would address cussed in brief form dealing with getting their deficits and debts under the fact that too many Americans lack health care, education, pensions, and a control there is growing concern, even pension coverage by covering more number of other issues, including dis- in Europe, among most of our indus- workers under existing plans, creating cussing another issue that is important trial friends there, that such things as new retirement savings options for mil- to me, a piece of legislation that Sen- pension plans and deferred obligations lions of Americans, and encouraging ator DASCHLE and I and others are in- are going to bankrupt their countries. more businesses to establish plans and troducing dealing with some changes We are doing fairly well. But I do not more employees to participate in them. with respect to agricultural programs think anybody ought to misconstrue The bill would improve pension access and family farmers in our country. the trend lines in terms of our current and coverage, strengthen pension secu- I see others are seeking the floor. I deficits to think that it is going to be rity, promote pension portability, and yield the floor at this time. easy to keep the deficit under control. increase equity for women. I would like to reserve the remainder In the next couple of weeks the Budg- The Youth Violence, Crime and Drug of the Democratic time today. et Committee will have a series of Abuse Control Act, S. 15, would build The PRESIDING OFFICER (Ms. COL- hearings to show what the next cen- on the success of the 1994 Crime Act LINS). Without objection, it is so or- tury is going to look like and what the and other crime fighting initiatives en- dered. major problems are, as the President January 21, 1997 CONGRESSIONAL RECORD — SENATE S135 speaks of a ‘‘bridge,’’ what we ought to States for college, community colleges, years into actual cleanup instead of be carrying across that bridge so we public education, and kindergarten into court cases and litigation. I think don’t have bigger problems rather than through 12 continues to spend more that is the motivation and that is what a better life in the next century. and more, everywhere we look there we are trying to do. I think that is very The balanced budget amendment’s are huge numbers of Americans who positive. time has come. There are some who are not well enough educated for the The Paycheck Protection Act speaks will say, ‘‘What happens when you need jobs of today. Frankly, we continue to for itself. And then I will go to the last to spend more money and there is not pour money into vocational institu- one, the Violent Juvenile Offenders enough room in this budget,’’ such as tions and vocational education; we put Act. I am very pleased that many of unemployment compensation during a the strings on that so we can put the provisions of the legislation I in- recession. Let me say that this amend- money into our public education, albeit troduced last year, after numerous ment is very, very simple in that re- very small amounts. But somehow or hearings in New Mexico and a great spect. If that is a serious problem, as another it seems that the time has deal of input from our judges and from serious as some would say, then all you come to ask the institutions which we probation officials, are in this bill. I need to do is get 60 votes. You don’t currently spend our money on to see if think it is obvious that if any part of have to pass any resolutions declaring they can’t change their way of doing our criminal justice system has fallen emergencies. You just need 60 votes in- business a little bit so they may be apart, it is the juvenile justice system. stead of 51 to let those expenditures more the engine of training and skills For the most part, in most of our take place. I believe that is good improvement rather than us having to States, the juvenile justice system has enough. I think history will reveal that fund new institutions and new ways of not kept up with the times. It does not we have had caps that are similar to doing them. meet today’s challenges, and I believe this, to this constitutional amend- Family tax relief: This Senator’s we are going to sensitize our States to ment, on parts of our budget and that only comment is that every single item this by offering to give them more fi- when we have been confronted by the in there are very exciting items. And nancial support if they will modernize need to increase something like unem- they are all probably good for either their systems. I believe this bill will ployment compensation there has been American families, or the American lead them to hold more teenagers ac- far more than 60 votes to go ahead and economy, or are motivated by fairness. countable for their actions and make break the caps because there is some- In that context, I support them. In the more public the activities of the what of a countercyclical economic ne- context of how much we will be able to courts, rather than to hide their activi- cessity that is forthcoming. afford, I reserve the right to decide. We ties. They also should make juveniles So, from this Senator’s standpoint, I may not be able to afford all the enu- more accountable, even for smaller of- hope that the early count of Senators merated items in the bill. But obvi- fenses, so they do not wait until they who back home during the campaign ously, we will have to look at that, and have committed the equivalent of 10 or said they were for a constitutional I want to make that comment in the 15 felonies before something is done to amendment, plus those who voted here- try to help the teenager. RECORD. tofore, continues to add up—and that The workplace act I think is an ex- Many of these things are encap- the number clearly when you do that is citing piece of legislation. I support it. sulated in the bill. There are some things that I am not sure ultimately, there are plenty of votes to pass it— I hope we can get the message out as to after detailed hearings, are going to be that they will not change their minds what is in the bill and what is not, for as good as they sound. We are trying to based upon Washington, DC talk—be- some who are already talking about cause most heard from their people, reform the existing law. The existing what they believe the bill does, but and I hope that we will all live up to law is rigid and in many cases harms they are really talking about things that and get this job done. juvenile justice at home in our States. Safe and affordable schools is our that are not part of this legislation. I am not sure that people are aware Product liability reform has come second one. All I can say about that is of it, but we have mandates in the Fed- under some great leadership in the I am not sure that any of us know the eral juvenile justice law, and one of Senate. We have already done a lot of extent to which we ought to be for them is called sight and sound separa- work on that bill, but we cannot get it change in our education system. But I tion. It has gotten way out of hand. I passed through for the President’s sig- can tell you one anomaly that is rather am not sure we should do away with nature. I hope we get there. frightening. All you have to do is go the mandates entirely, but we have had For the partial-birth abortion ban, I home and talk to people in the business a situation in New Mexico where be- believe there is a compelling majority sector that want to employ people from cause one correctional facility would of support for the bill. The question is your State of Maine, or my State of have had the same kitchen for both whether we have enough to override a New Mexico, and who continue to tell adults and teenagers, the State was Presidential veto. I have heard words us, ‘‘Well, the people we need don’t told that it could not house teenagers from the White House, but more impor- have the skills required. They don’t there. I guess they expanded the man- tantly from Senators like Senator have the right training.’’ I guess in the date to sight, sound, and smell, or ASCHLE saying maybe we ought to broadest sense they are saying they are D maybe the flavor that will come from not educated for the workplace. work something out here, which leads using the same kitchen. But I do not Frankly, I hope that we could sooner me to believe that there are even more know how that had much to do with rather than later go beyond these few Senators who deplore the partial-birth whether you ought to keep the teen- principles in this bill and come up with abortion technique than those who agers in that facility. some concepts that would push our voted for it. I, too, hope we can get Perhaps we are underfunding the current institutions that educate our something done there. OJJP provisions, we are cutting those young people—and even our adults—to Let me just quickly go through the a little bit, and we ought to look at force them to be more responsive to Missile Defense Act. Obviously, there that. There are a couple of other things the needs of our people who are looking are some who would not put this in the we ought to include, but for the most for jobs. top 10, but there are many who are con- part we are moving in the right direc- I ask for another 5 minutes. cerned enough about it, and I support tion, and I am very pleased to be a co- The PRESIDING OFFICER. The Sen- it wholeheartedly, in an effort to solve sponsor and essentially had a lot to do ator still has 4 minutes remaining. the problems that are stated by that with what we put in that bill. Mr. DOMENICI. I thought you were legislation. I believe I am close to the time the reporting that I didn’t have any time The Superfund cleanup is long over- Senate has granted me to speak, and I left. Excuse me. I still ask for 5 addi- due. It is now good to know that Sen- thank the Senate for the time and tional minutes. ator CHAFEE and Senator SMITH of New yield the floor. The PRESIDING OFFICER. Without Hampshire support a measure that will Mr. LAUTENBERG addressed the objection, it is so ordered. reform Superfund. And reform means Chair. Mr. DOMENICI. Madam President, that we will put more of the billions The PRESIDING OFFICER. The Sen- let me suggest that while the United that will be spent during the next 10 ator from New Jersey is recognized. S136 CONGRESSIONAL RECORD — SENATE January 21, 1997 Mr. LAUTENBERG. Madam Presi- hold this up as an example of what is in now on that course. Without restraint, dent, just so our new colleague from here, introduced this morning without that could happen even at an impos- Wyoming understands, this was the consultation. This is not a way to get sible 100 percent tax rate on the citi- order that was agreed to under unani- ourselves a bipartisan kickoff to this zens of this great Nation. Governments mous consent, and therefore, since he very important reauthorization pro- go broke when they cannot afford the is waiting, I want to explain that this gram. interest. was not just being discourteous; it had I look forward, as I have for many The Federal Government must learn been set that way. The junior Senator years, to working with our distin- to live within its means. If we were not from Wyoming will get used to some of guished colleague, Senator CHAFEE, saddled with such enormous debt, we those things off in the corner. He may and Senator BOB SMITH from New would have additional revenues to in- not like it, but it works out. Hampshire and others, to find common vest in the people and we could reduce (The remarks of Mr. LAUTENBERG ground. I want to reauthorize the tax burden for every working man pertaining to the introduction of S. 18 Superfund, but I would like to do it in and woman in this country. Many are located in today’s RECORD under a way that is fair to taxpayers and in States have a constitutional provision ‘‘Statements on Introduced Bills and a way that is going to work. to balance the budget. Those States Joint Resolutions.’’) I yield back the time on the Demo- balance their budgets. It is time for us f crats’ side reserved. How much time is to require ourselves to balance the left? budget just as they now require the DISAPPOINTMENT WITH INTRO- The PRESIDING OFFICER. Time is States to do. DUCTION OF SUPERFUND BILL controlled by the minority. There is 5 History shows we cannot balance the Mr. LAUTENBERG. Madam Presi- minutes remaining. budget with willpower alone. It is time dent, while I am on the floor, I want to Mr. LAUTENBERG. I yield back the to look at the hard, cold facts. We now express some disappointment at the in- time at this point that I have not used have a $5.2 trillion dollar Federal debt. troduction today by my friend and col- and reserve for our side the remaining The deficit looms so large. Many Amer- league, Senator CHAFEE, of a com- minutes. icans voted for candidates based on prehensive bill amending our Federal The PRESIDING OFFICER. Without their stand on this single issue. A bal- hazardous waste cleanup law, better objection, it is so ordered. anced budget amendment was the key known as Superfund. Mr. FORD. Madam President, the dis- to voter confidence. Failure to support This bill was introduced without con- tinguished Senator from Wyoming this issue will diminish that confidence sultation with any of the Democrats or wishes to speak, and I don’t want to and could lead to the defeat of other with the administration. My staff, and get in his way, but I will need more candidates in 2 years. those of the ranking member on the than 5 minutes, so I will wait until oth- The balance budget amendment Environment and Public Works Com- ers are through so I can get my time on would help end the frustrating impasse mittee, did not see a copy of this bill the floor in addition to the 5 minutes. between Congress and the President by until late this morning. If we are to So I alert the Chair to that. Thank requiring that we agree on a budget make reforms to Superfund this year— you. that is balanced. A constitutional re- and it was hoped we would do it last Mr. ENZI addressed the Chair. quirement will remove from debate the year and the year before—it is critical The PRESIDING OFFICER. The Sen- variable of how long it will take to bal- that we work together in a bipartisan ator from Wyoming. ance the budget. The argument about manner. Mr. ENZI. Mr. President, I rise in whether we should balance it at all will Today’s bill introduction is not a support of Senate Joint Resolution 1, be removed from the discussion. All positive first step toward that biparti- the balanced budget amendment. I spe- Americans know that we have to work sanship. Enacting any Superfund legis- cifically chose the balanced budget within the parameters of fiscal sanity. lation this year is going to require bmendment as the focus of my first The balanced budget amendment will Members of both parties in the House statement in this hallowed Chamber. I focus our effort and our attention. of Representatives and in the Senate to chose it because the need for a bal- We have not had a balanced Federal work together. It will also require all anced budget is the most important budget since 1969. This fact alone illus- of us to work with the President and issue facing all of America today. trates the difficulty of balancing a EPA Administrator Carol Browner. Without a balanced budget, our chil- budget without an amendment. By fail- In addition, Madam President, it dren will be saddled with a mountain of ing to balance the budget, we are giv- would require us to appreciate that debt. Our children and grandchildren ing in to the whims of the moment. times have changed since the debate will be left with no hope of fulfilling Without a balanced budget we abandon over Superfund reauthorization began their dreams and aspirations. Our Na- the ideals of self-control, discipline, in the late 1980’s. The administration tion will be weakened and vulnerable. and hard work. When we do not balance has made wide-ranging administrative I know how to balance a budget. I’m a budget, we lead by the example of proposals that have made a real dif- an accountant. I have balanced budgets selfishness, recklessness and folly. We ference, and this is not the same as a family man, a shoe store owner, a condone living beyond our means. Superfund program of years past. mayor, and a legislator. You and I Those opposed to a balanced budget We have learned a lot. We have im- know how easy it is to spend money. amendment fear it would result in proved its processing. We have reduced We know it’s easier to say ‘‘yes’’ to drastic cuts to programs they deem the possibility of heavy litigation programs than ‘‘no.’’ There is a con- necessary. That is a very shortsighted costs. I want to be clear, I support stituency for every single program. But view of the world. Only by balancing changes to Superfund that would speed I have had to say ‘‘no.’’ We have a duty the Federal budget, however, can we cleanups, reduce litigation, increase and a responsibility to our commu- guarantee long-term security to any equity, save money, and protect the nities, our families and our children to Federal program, including Social Se- health and environment of those who live within our means. Right now we curity. By balancing the budget, we do live near Superfund sites. But, Madam are spending more money than we are a great service for all Americans. We President, it is important to do this taking in. Overspending is a prescrip- especially serve those living on fixed right. We should not be shifting costs tion for disaster. Almost any school income retirement programs. When we from polluters to taxpayers, and the child understands that if you spend pass and the States ratify this amend- President has made it very clear that more than your take in—you go broke. ment, everyone will benefit. Interest he will not abide by that either. Because of the Federal Government’s rates will decrease. Inflation will be So, Madam President, I hope that the ability to print money, we can easily held in check. Business will have true Senate Environment and Public Works feel there are no spending limits. How growth. Jobs will increase. Committee will closely examine the can we pay the bills of a nation when We need to pass this amendment with administrative reforms already under- we reach the point where interest pay- no gimmickry, no smoke and no mir- taken before moving forward on ments on our debt exceed all the reve- rors. Any proposal to exempt Social changes to the Superfund program. I nue? That scenario is possible. We are Security would rule out the possibility January 21, 1997 CONGRESSIONAL RECORD — SENATE S137 of a true balanced budget. Any exemp- We will say, ‘‘We have met the The Senator from Wyoming has done tion of Social Security plays games enemy—and it is us.’’ America has the a superb job of pointing out why it is with the future. We need to deal with best form of government on Earth. Now absolutely essential that we pass that the facts. Making Social Security ex- it requires responsibility from its lead- amendment. empt from this process would simply ers and citizens. The time for leader- f allow unlimited spending. An exemp- ship is now. The time for the balanced EDUCATION IN AMERICA tion would give the false pretense that budget amendment is now. we have a balanced budget. The American people demand an end Mr. GREGG. Madam President, I Getting our entitlement programs in to runaway spending. We need to show want to speak briefly here to the sec- good working order is essential. Finger the American people that we are re- ond item on the agenda, which is edu- pointing about who wants to cut enti- sponsible. This bill will prove restraint cation. Obviously, we all recognize the tlements are simply diversions. by constitutionally limiting the ability significance and importance of edu- Sleights of hand over who wants to to spend taxpayer dollars. Let us not cation. We also recognize, those of us save entitlement programs are all po- fail them or ourselves. who have been involved in the issue for litical ploys. Don’t let politics confuse We have the longest continuous gov- a while, that the issue of education is, the issue and stall the passage of this ernment on the face of the Earth. This for the most part, settled at the local amendment. bill is a critical link to the future. We school level, at the local community The economic future of America’s must preserve and protect our Nation level, especially as it involves elemen- families depends on what we do now. and do it for our children and our tary and secondary education, and that My family is very important to me. I grandchildren. This is the turning the Federal role is narrow and one know your families are important to point. What will history say about each which is focused on specific areas. It is you as well. Every day that passes of us? not the Federal Government’s obliga- without a balanced budget hurts. The I urge my colleagues to support the tion nor is it appropriate that the Fed- responsibility of the debt falls on the balanced budget amendment. eral Government step into the design- shoulders of our children and our ing or the curriculum or the choosing f grandchildren. Will we leave them a of the proper activities for school sys- legacy of colossal debt totaling more CONGRATULATING SENATOR ENZI tems. than $5.2 trillion? That incredible debt Mr. NICKLES. Madam President, I Rather, it is the Federal Govern- will burden generations to come. Our must rise to congratulate our col- ment’s role to pick areas where it can kids and grandkids will have an enor- league, the new Senator from Wyo- assist the local school districts and can mous tax burden. They will inherit an assist parents in helping their children ming, Senator ENZI, for his statement. economy so weak and a debt so large I think it is an outstanding state- to get a better education. The proposal there will be no hope of them ever payment—his first speech, as I understand that has been put forward by the Re- ing it off. it, on the floor on our first legislative publican Senate today, Republican When I was going to grade school, we day. I just wish to compliment him. I Members of the Senate, as the second spent a lot of time on the enormous- hope every American could hear that item on our list of 10, is a very strong ness of a million dollars. I’ve always proposal on behalf of the parents of speech, a very well-thought-out speech been fascinated with Carl Sagan’s em- America and the students of America. on the necessity and importance of a phasis of the difference between a mil- It is an effort to identify a number of balanced budget amendment. lion and a billion. Now we roll a tril- areas where we think the Federal Gov- I think Senator ENZI’s credentials lion off our tongues with great ease; ernment can assist parents in helping are certainly meritorious of that state- $5.2 trillion. This is the cruelest of all their children get a better education. legacies. ment, the fact he is an accountant by We all recognize that education is the That debt we are incurring for our trade, a businessman, former State leg- core activity that we must undertake kids amounts to taxation without rep- islator as well as mayor. I compliment if we are to have a competitive society. resentation. We mounted a revolution him and thank him for his well- We especially recognize this in New over that before. Our Founding Fathers thought-out speech. I hope everyone England where we depend so much on would be embarrassed. We should imi- will pay attention to it and follow his brainpower because we have no great tate our forefathers in fulfilling our advice and pass this amendment. natural resources. Our natural resource duty to our children and to our chil- I thank him again for his speech. is the intelligence of our citizenry, dren’s children. We must save them The PRESIDING OFFICER. The Sen- which is extraordinarily high and de- from the bondage of insurmountable ator from New Hampshire. pends on a strong education system. taxes. If the balanced budget amend- Mr. GREGG. Madam President, I ask In this area I want to highlight two ment fails, we lose. Future generations unanimous consent to proceed as in activities that have been pointed to by lose as well. morning business for a period of 5 min- our proposal. The first is that we un- It is time to heed the words of Thom- utes. derstand that there is this huge baby- as Jefferson, ‘‘I place economy among The PRESIDING OFFICER. Without boom generation—of which Bill Clinton the first and important virtues, and objection, it is so ordered. happens to be the most visible individ- public debt as the greatest of dangers f ual—which happens to also have chil- to be feared.’’ President Jefferson knew CONGRATULATING SENATOR ENZI dren. And all those children of that the economic and moral importance of baby-boom generation, people like not owing anything to anyone. He also Mr. GREGG. I wish to thank the Sen- Chelsea, people like my own children, knew that a large public debt could ator from Kentucky for allowing me to are moving into the college-age years. make the United States a slave to proceed even though he had prior per- There are a lot of parents who are other countries and foreign interests. mission. very concerned about how they are Defeat is the real national danger on I also want to congratulate the Sen- going to pay for the high cost of higher our horizon. The national security of ator from Wyoming on his superb dis- education. This proposal gives parents the United States is threatened by the cussion of the balanced budget amend- an option. It gives them an oppor- immense debt. We, as a nation, will be ment. It was thoughtful, to the point, tunity, sets up the Bob Dole grants, unable to protect ourselves against our focused, and really highlighted the im- which are the specific vehicle that al- enemies, foreign and domestic. And, we portance of that amendment, which lows parents to invest for their chil- will be unable to protect Americans— happens to be the first item on the dren’s education, to save for their chil- their jobs and their families. We can- agenda for the Republican majority in dren’s education, and be able to plan not leave ourselves exposed to eco- the Senate. Of the 10 items listed by ahead so that they can use the vehicle nomic collapse. A world relies on us to the majority leader today as being the of, basically, a designated savings ac- get our economic house in order. If priority items which the Senate shall count which will receive significant we—you and I—continue the practice pursue under the Republican agenda, tax benefits to assist them in getting of overspending, history will harshly No. 1 was the balanced budget amend- ready for their children’s college edu- judge us. ment. cation. S138 CONGRESSIONAL RECORD — SENATE January 21, 1997 In addition, it supports prepaid tui- the communities to free up those edu- Mr. FORD. I thank the Chair very tion plans that many of our States are cation dollars which they are now much. now pursuing, where parents can actu- using in order to support the Federal ally choose a college or group of col- obligation to care for the special ed f leges within a State and pay the tui- child, to educate the special ed child, tion early and thus avoid the cost of to free up those dollars to use them to CAMPAIGN FINANCE REFORM IN inflation and put themselves in a posi- expand education activity for other THE 105TH CONGRESS tion where they can better afford the children in the school system. cost of education as their children get If you want to look at it in its clean- Mr. FORD. Madam President, as we older and the costs go up. est sense, it is actually going to be the begin a new Congress, we begin with In addition, it expands the deduction largest block grants to local education the hope that the bipartisanship that for student loan interest, a very impor- the Federal Government has ever pur- existed at the end of the 104th Congress tant element in having the ability to sued. It should have occurred earlier, will carry through the 105th Congress. go to college or go to graduate school but it is going to occur now as a result Together, Democrats and Repub- and to be able to get a loan and still be of the commitment that has been made licans were able to put aside partisan able to pay it back. This expansion of by the Republican majority here in the differences and pass meaningful and the deduction will have a positive im- Senate. important legislation, from raising the pact in that area. The sign that it is going to occur is minimum wage to the Kennedy-Kasse- It expands study awards and assists the fact that we already made the baum health care bill, to the reauthor- employers who are assisting their em- downpayment. In the last session—and ization of the Federal Aviation Admin- ployees in higher education. It is a this did not get much attention unfor- istration and the airport improvement very significant effort to make higher tunately; it should have gotten a lot program, and adding additional funds education more affordable for the fami- more attention; I do not know why it to education. lies of America. did not get a lot more attention; Madam President, I think in not only In addition, the bill has another maybe it was because of a national the minds of some in this body but the major element which is absolutely crit- election and people wanted jinglese on general public, one glaring example ical, especially in New Hampshire. their positions— but in the last budget where we fail to come together is cam- That is, it says that the Federal Gov- process last September we, as Repub- paign finance reform. While the Amer- ernment is financially going to step up lican Members of the Senate, put $730 ican people saw that we can work to- to its obligation to special ed children. million more into special education gether to pass legislative solutions to A long time ago we passed something than the present funding was. We in- everyday problems, the American peo- called 94142, which was an excellent creased it by that amount of money. ple also saw our failure to restore in- bill, the purpose of which was to make It was a downpayment on this effort tegrity to our political system with the special education more readily avail- to try to fully fund the 40 percent that passage of campaign finance reform. able to children who needed it. the Federal Government originally Unfortunately, this last election The concept was that the Federal said it was going to fund. As a result, cycle once again demonstrates that we Government would pay 40 percent of a State like New Hampshire will re- need fundamental campaign finance re- the cost and the States would pay 60 ceive an increase of approximately $3 form. This last election cycle dem- percent of the costs. Today, unfortu- million. That is a lot of money to help onstrated that the money chase contin- nately, the Federal Government is only out with the special education issues. ues. Only this time, the pace was more paying about 6 percent of the costs So we are not talking in rosy sce- intense. that are borne in order to care for a narios here. We are not using words. Preliminary figures from the Federal child who has special requirements in We are not trying to create percep- Election Commission for the 1996 cycle education. tions. We are talking in terms of deeds. are astounding. Fundraising by the Re- As a result, this has put a huge bur- We have already made the downpay- publican and Democrat Parties—‘‘par- den on the local communities and the ment on this effort to expand our com- ties’’ I underscore—in the period from local school systems. States like New mitment to special education. And now January 1, 1995, through November 25, Hampshire, which rely heavily on real with the putting forward of the Repub- 1996, totaled $882 million. That rep- estate taxes to support their schools, lican list of initiatives for this Con- resents a 73-percent increase over the or even States that rely on State gov- gress, we are making it very clear that same period for the 1992 Presidential ernment income taxes or sales taxes, we are going to follow through on that election cycle. find that a large percentage of the tax commitment. The largest increase in funding and dollars they are raising for education This will be positive for the children spending by the parties was soft are going to support what should have across this country and for the edu- money. The Republican National Com- been the Federal obligation to help out cational systems across this country. I mittee raised $141.2 million, a 183-per- with the special education child. think Republicans can take great pride cent increase over 1992’s $49.8 million. As we all know, the special education that we at least have been willing to Republicans spent $149.6 million com- child can, in instances, cost $100,000 or step up to this very critical issue of pared to their spending in the 1992 elec- more as compared with a child going first educating our children in college tion cycle, an increase of 224 percent. through the system in an average and relieving the pressure on parents Democrats raised $122 million, a 237- school system which may cost $4,000. who are trying to send their children percent increase over 1992’s $36.5 mil- So it can skew dramatically the ability to college; and, second, helping out lion, and spent $117.3 million, a 250-per- to apply resources to benefit other with the special ed needs which the cent increase over 1992 when Demo- children in the system because of the States have for so long borne but which crats spent $32.9 million. fact that the Federal Government has the Federal Government has for so long Madam President, the money chase shirked its obligation to come forward said it would bear. does not stop there. Based on reports with its 40 percent, as it said it would Madam President, I yield back my by the Federal Election Commission, when it initially passed this bill a long time. congressional candidates—that in- time ago. Mr. FORD addressed the Chair. cludes the House and the Senate— So what we have proposed as Repub- The PRESIDING OFFICER. The Sen- spending may be at an all-time high. licans is that the Federal Government ator from Kentucky. Totals for both the House and the Sen- will finally step forward and fund spe- Mr. FORD. Madam President, I want ate general election candidates show cial education at near the 40-percent to use the 5 minutes that has been as- they raised $659.6 million, an 8-percent level. We are talking about a $10 billion signed to the minority, and I ask unan- increase over 1994. That is in addition increase in funding for special edu- imous consent I have such time as I to the other money that I am talking cation, which increase will be met by need beyond that. about. So we are nearing the $2 billion ramping up, over a series of years, 7 The PRESIDING OFFICER. Without figure as it relates to spending in cam- years, and thus allowing the States and objection, it is so ordered. paign finance in campaigning. January 21, 1997 CONGRESSIONAL RECORD — SENATE S139 One thing we will become in the pose constitutional difficulties. I be- tive and meaningful reform without House and the Senate will be bit play- lieve that we can craft a system of vol- the restriction of limits that one might ers in the political aspects of this coun- untary spending limits that will sus- spend in a campaign. try—bit players because money will tain constitutional scrutiny by the Su- In addition to spending limits for put us on television and money will do preme Court. I also believe that in congressional campaigns, meaningful the work for us. So the big player will order to restore the integrity of our po- reform also requires us to close the soft become the consultant, will become litical system, imposing spending lim- money loophole. As I mentioned ear- television, become advertising, and so its is the right course of action. If we lier, we saw a dramatic increase by the we will become bit players in this stage must—and I underscore if we must— national parties in the raising and called the American political system. then it might be worth the task to spending of soft money. An average winning Senate candidate amend the Constitution. We also need to address issues like in all 34 races this past election spent The fact is, Madam President, when independent expenditures and issue ad- $4.4 million. Compared to 1994, this rep- it comes to putting an overall cap on vocacy. Recent decisions by the Su- resents, by the way, an 8-percent de- candidate spending, the Congress is preme Court require the Congress, I crease. However, the States in which way behind the curve. Just this past think, to reexamine the current law. Senate races were held in 1996 included November, I believe the voters in the We cannot prevent an individual or most of the smaller and less populated great State of Maine passed a ballot group of individuals from engaging in States. Nevertheless, when you break initiative that would impose spending political activity independent of a can- down the $4.4 million per race, that limits on their State races. didate or political party. But we can means the average a candidate would I direct the attention of my col- make sure that such activities are have to raise is approximately $13,969 leagues to my own home State of Ken- truly independent and that those ex- each week for 6 years. Someone dis- tucky. In 1995, we had our first guber- penditures are adequately and fully missed that figure by saying that most natorial election with spending limits, disclosed to the Federal Election Com- candidates raise approximately 80 per- $1.8 million. The previous election was mission. We will hear a little more cent of their funds in the 2 years prior $12 million. Overall, these reforms in about the hand-off funding as we pro- to the election. If you accept that sta- my State worked well for the can- ceed into the debate on campaign fi- tistic, then the amount you have to didates and for the voters. The Ken- nance reform. If you don’t understand raise each week occurring in that 2- tucky system has a general election hand-off funding, see me or listen to year period is almost $34,000. With spending cap of $1.8 million. Everyone one of my speeches. I will try to tell those statistics, one would be hard agrees the Kentucky system still has you what that is. pressed to argue that there is no some problems and some loopholes that Finally, Madam President, I believe money chase. need to be addressed. But on the whole, that we need to examine the structure Some have suggested that we simply I think the candidates and the elector- and authority of the Federal Election do not spend enough in our elections. ate approved of the spending limit Commission. If we are going to have an They have even been so bold as to sug- plan. In fact, spending limits in the agency charged with a mission to en- gest that we should spend more. They Kentucky race changed the overall force our campaign finance laws, then I say we spend more on bubble gum than course of the election. With a limit on believe it is incumbent upon us to we spend on elections. Well, this is not the amount they could spend, both the make sure that the FEC has the au- about bubble gum. This is about run- Republican and the Democrat can- thority and the means by which to exe- ning this great country of ours and didates had to revise the campaign cute that authority. keeping it on the right track and a play book. As the former chairman of the Rules leader of the world. Spending limits put a premium on Committee and now ranking member, I How much more can we spend, debates. A premium on debates—think have sat through countless hearings on Madam President, when you have to about that. You try not to debate your the issue of campaign finance reform. I raise $13,000 a week for every week of opponent in this day and age, you try can go back to the archives of the your Senate term? How can we say to stay away from him because he is Rules Committee and produce volumes that we are truly doing the people’s unknown, the people are not knowl- and volumes and volumes of testimony business? The more time that we have edgeable. So you do not want to give and printed records of hearings where to devote to raising money, the less him any publicity, so you do not want the committee received testimony time we have to commit to our con- to have debates, maybe one or two on from Members, from professors, from stituents. That is certainly the percep- educational television that maybe no- campaign consultants, and all the election of the average citizen. I argue that body would watch while there is a bas- tion experts you could ever think up. this is one area where the perception is ketball game, football game, or base- We can easily identify the problems. the reality. ball game going on at that time. I have The question is, Are we ready to try to Furthermore, Madam President, I seen it. I played that game. I am no work on solutions? The problems are suggest that the more money raised spring chicken at this game. I am still there and we understand them, but are and spent in our elections does not nec- spry, but no spring chicken. we ready to work on solutions? essarily mean that we have better cam- In fact, the spending limits put a pre- Madam President, with all due re- paigns. Al Hunt recently wrote in the mium on debates and joint appearances spect, we do not need more hearings on Wall Street Journal that there is across our Commonwealth. The can- these issues. We know all too well what enough anecdotal evidence to suggest didates didn’t fly; they drove because it the problems are. We need to sit down that the more candidates spend, the saved money. They were looking for together—and I underscore together— more negative the campaign. No, every Rotary Club, Lion’s Club, every to craft the solutions. In the past, cam- Madam President, I do not believe the J.C. Club, whatever groups were to- paign finance reform has been an issue answer is more money in our election. gether. They were wanting to express that has received too much lip service. Rather, I believe, that the solution for their desires and hopes for the future of We can no longer afford to let the op- real and effective campaign finance re- our great State. Overall, I think most portunity to enact meaningful reform form must include spending limits. The Kentuckians were pleased with the re- pass us by. The time to act is now. I terms of those limits should be open to sults, because the candidates came and hope that we can move forward and negotiation and discussion. In the end, talked about issues rather than being make campaign finance reform one of there cannot be any real and meaning- on television. The net result was a bet- the first and lasting accomplishments ful reform without spending limits. ter informed electorate and therefore a of the 105th Congress. I know that Changing the current system is dif- better campaign. many of my colleagues share a similar ficult. You can understand why some- So, Madam President, I believe that commitment to reforming our cam- one opposes changing the status quo the terms of spending limits should be paign finance laws. I look forward to because it is a system that got them in open to negotiation. All items should working with my colleagues. Hope- office, and by and large keeps them in be on the table for discussion. But I be- fully, through this campaign finance office. I recognize that spending limits lieve that we simply cannot have effec- reform, we can restore trust and we S140 CONGRESSIONAL RECORD — SENATE January 21, 1997 can restore integrity to our electoral 1960’s and endured throughout his bril- Let us talk about a man who brought a re- system by enacting meaningful cam- liant career, including his 1992 Presi- markable wife to Lowell, and a father who paign finance reform legislation. dential campaign. raised three wonderful children in the city of I thank the Chair and yield the floor. As a Lowell city councilor, a county his birth. commissioner, Congressman, Senator, Because before all else—before all the poli- Mr. NICKLES. Madam President, I tics and the presidential campaigns—Paul know my colleagues have been waiting and Presidential candidate he had a Tsongas devoted his life to his beloved and patiently. Would they mind if I went special vision of America as it ought to cherished wife and daughters. And even if his ahead for a few minutes? be. Above all, he had an extraordinary journey consisted ‘‘only’’ of Nicola, Katina, Mr. GRAMS. That is fine. personal and political courage. It was a Ashley and Molly, he would have succeeded— (The remarks of Mr. NICKLES pertain- courage demonstrated during his long grandly—in making this city and this world ing to the introduction of S. 9 are lo- illness and in all aspects of his years in a better place in which to live. If a man’s legacy is first and foremost his cated in today’s RECORD under ‘‘State- public service. He often took stands that were unpopular. He had strongly family, Paul Tsongas’ journey has left us all ments on Introduced Bills and Joint with a living legacy to cherish and honor as Resolutions.’’) held beliefs and he fought hard for we do his own life. (The remarks of Mr. NICKLES, Mr. them regardless of the passing political For years, we in Lowell have needed Paul GRAMS, and Mr. HUTCHINSON pertaining cause. He cared more for the truth Tsongas. Now it is time for all of us to begin to the introduction of S. 9 are located than public opinion. And the people of to repay our debt to him by reaching out to in today’s RECORD under ‘‘Statements Massachusetts loved him all the more Nicola, Katina, Ashley and Molly with our because of it. arms, our hearts and our prayers. on Introduced Bills and Joint Resolu- They surely don’t need us to tell them, but tions.’’) President Kennedy would have called him a ‘‘profile in courage.’’ we should let them know just how proud we f One of his enduring legacies is the are of her husband and their father, and how much we, too, will miss him. 1996 YEAR END REPORT Lowell National Historic Park, which For those who knew Paul Tsongas—and so symbolized a great deal about his com- The mailing and filing date of the many in this city were privileged by his mitment to Lowell and to that entire friendship—we knew him first as a husband 1996 Year End Report required by the region of our State. He had the vision and a father. In these parts, he was not Sen. Federal Election Campaign Act, as to conceive the park and the skill to Tsongas. He was ‘‘just’’ Paul Tsongas, a guy amended, is Friday, January 31, 1997. achieve it. In a larger sense, it also who clearly was happiest not on the firing Principal campaign committees sup- typified his unique ability to find new lines of City Hall or Capitol Hill, but rather porting Senate candidates file their re- ways to see old problems. Where others in his back yard on Mansur Street. ports with the Senate Office of Public saw a fading mill town, Paul saw the ‘Our’ Paul Tsongas was not a politician or Records, 232 Hart Building, Washing- a presidential candidate. He was something opportunity for rebirth, growth, and a much more special than that. ton, DC 20510–7116. thriving new economy. He was Tsongy—our neighbor and our The Public Records office will be He applied that same dedication to friend. A guy who may have been better at open from 8 a.m. to 7 p.m. on the filing new ways of thinking in everything he driving his kids to school than he was at date to accept these filings. In general, did in our State, our country, and our driving legislation through the U.S. Senate. reports will be available the day after common planet, yet he had both a real- A hard-working environmentalist whose receipt. For further information, please istic and idealistic vision of a better most beloved contribution to the greening of contact the Public Records office on future and a powerful commitment to America was surely cleaning up and land- (202) 224–0322. scaping Kittredge Park, on his hands and reach it so no one would be left out or knees, as content as a man could be. f left behind. Let others applaud and exalt the contribu- He reminded me of Robert Kennedy. tions Rep. and Sen. Tsongas made to the REGISTRATION OF MASS As my brother often said, ‘‘Some peo- Commonwealth of Massachusetts—as they MAILINGS ple see things as they are and say, why. should and will. Let the national pundits and The filing date for 1996 fourth quarter I dream things that never were and politicians ponder what contributions a mass mailings is January 27, 1997. If a say, why not?’’ That was true of Paul President Tsongas would have made to the Tsongas as well. We will miss him very country—as surely he would have. Senator’s office did no mass mailings We in Lowell need only walk through our during this period, a form should be much. Our hearts go out to his wife city to celebrate—every day—what Paul submitted that states ‘‘none.’’ Niki, his sisters, Thaleia and Vicki, all Tsongas did for his hometown. Mass mailing registrations, or nega- the members of his wonderful family, A national park here, a Boarding House tive reports, should be submitted to his three daughters, Ashley, Katina, Park there. The Wang Towers over there, the Senate Office of Public Records, 232 and Molly. and an arena going up just over here. And Hart Building, Washington, DC 20510– Mr. President, I ask unanimous con- here’s one of our new middle schools, not too 7116. sent that editorials from the Lowell far from our downtown hotel. And just over Sun and the Boston Globe be printed in there, where the river bends, we’re going to The Public Records Office will be have a brand new ball park for Lowell’s own the RECORD. open from 8 a.m. to 6 p.m. on the filing minor league ball club. You know, the Spin- date to accept these filings. For further There being no objection, the mate- ners, the team Paul Tsongas brought to information, please contact the Public rial was ordered to be printed in the town. Records office on (202) 224–0322. RECORD, as follows: Let those on the national stage talk about [From the Lowell Sun, January 20, 1997] the bumpy, bizarre and truly incredible road f COMING HOME which Paul Tsongas nearly traveled to the TRIBUTE TO FORMER SENATOR When he stood in the raindrops at Board- White House. Here, in Lowell, we’ll walk and talk about PAUL TSONGAS ing House Park, Paul Tsongas spoke of embarking upon his ‘‘journey of purpose’’ to be- the most important roads in Paul Tsongas’ Mr. KENNEDY. Mr. President, it is come the President of the United States. life—Highland Street, where he lived as a with great sadness that we learned last We in Lowell knew better. child. Gorham Street, where young Paul weekend of the death of our former col- We in Lowell knew Paul Tsongas’ purpose- toiled in his father’s dry cleaning store. And league from Massachusetts, Paul Tson- ful journey began long before he tossed his Mansur Street, where Paul Tsongas of Low- ell lived and raised his family. gas. Paul served in the House of Rep- hat into the presidential ring, and endured long after his candidacy came to an end. Let other congressmen and senators and resentatives for 4 years, from 1975 to For Citizen Paul Tsongas, his journey to presidents talk about the unique contribu- 1979, and in the Senate for 6 years, from make his city and his world a better place tion Paul Tsongas made to deficit reduction 1979 to 1985. All of us who knew him re- began as soon as he was old enough to make and our grandkids at the Concord Coalition. spected him and admired him. a difference, and continued—with as much Here, in Lowell, we’ll reminisce about the Paul was a great friend, a great Con- passion and purpose as ever—until it ended first and most important budget Paul Tson- gressman for the people of Lowell, a all too soon Saturday night. gas ever balanced in his life—the one in that dry cleaning shop on Gorham. great Senator for the State of Massa- Let others talk about Sen. Tsongas’ extraordinary contributions to the national We knew The Road from Here would al- chusetts. He had a special dedication to landscape—as they should and will. ways lead back to Lowell. public service that began as a Peace Let us in Lowell talk about contributions And even though his journey of purpose Corps volunteer in Ethiopia in the far more significant and enduring. often took Paul Tsongas to bigger cities and January 21, 1997 CONGRESSIONAL RECORD — SENATE S141 faraway lands, we all knew that his journey Administration and the Office of the cial shipbuilding orders has been gen- began here, drew its strength from here, and U.S. Trade Representative to fully con- erated in the United States. These will end, too soon, when he is buried here. sider the amendments to H.R. 2754 commercial orders are helping to sus- Paul Tsongas’ journey of purpose may have passed by the House last year. Those been all to brief, but like a meteor blazing tain our major builders of Navy ships. across the civic skyline he so loved, it was amendments, which were sponsored by Ms. SNOWE. In 1996, when the admin- the House National Security Commit- brilliant, intense and unforgettable. istration sought congressional ap- tee, were in response to major concerns ‘‘Lowell is my home. It is where I drew my proval of the OECD Shipbuilding first breath. It is where I will always derive regarding this agreement’s damaging Agreement, the Department of Defense a sense of place and a sense of belonging. impact on our national security inter- submitted a Navy shipbuilding budget ‘‘It is what I am.’’ ests, and on the Navy’s core shipbuild- request for the fewest numbers of ships Amen. ing industrial base. While preserving Think of Paul Tsongas whenever you take in more than 60 years. While the your kids to a Spinners game. We think he’d the underlying intent of the OECD agreement, the amendments adopted Navy’s Fiscal Year 1997 Future Years like that. Defense Plan called for an average of [From the Boston Globe Jan. 19, 1997] by the House provide some modest safeguards with respect to these na- only 5 ships per year, the Navy antici- PAUL TSONGAS OF LOWELL tional security concerns. pates that it will need to procure 10 to Paul Tsongas, 55, relished the uphill fight Ms. SNOWE. Those amendments were 12 ships per year beginning in the year but was unable to beat back his most for- 2002, if it is to maintain a 346-ship fleet. midable opponent and succumbed last night approved by an overwhelming majority in the House who felt that, without the The challenge for our Nation and the to complications from the lymphoma that Navy is to sustain the critical core dogged him since 1988. changes, the OECD Agreement failed to His seemingly inexhaustible ability to provide an effective mechanism for dis- shipbuilding industrial base during this rally from a battery of grueling medical pro- ciplining foreign shipbuilding subsidy alltime low in Navy shipbuilding and cedures, including two bone marrow trans- practices. I should add that a number still have the capability to meet future plants, was testimony to his grit and a spur of Members in this body who have ex- Navy building needs. to anyone tempted to complain about life’s amined the agreement also share this lesser challenges. Facing these circumstances, in 1989 Tsongas was a tough taskmaster in his po- view. The base agreement, coupled the U.S. shipbuilding industry sought litical life too, always willing to challenge with the many loopholes and special an international agreement to end for- conventional wisdom and unafraid to give concessions granted to foreign govern- eign government shipbuilding sub- people bad news if he felt it would fix an ailments, would continue to place U.S. sidies. The industry believed then, as it ing system. In 1980 he faced a hall full of doc- shipbuilders at a tremendous competi- does now, that it was essential to end trinaire liberals at a convention of the tive disadvantage. For this reason, the foreign government participation in Americans for Democratic Action and told largest U.S. shipbuilders, representing them it was time to ‘‘escape the ’60’s time the commercial shipbuilding market if capsule.’’ over 90 percent of all workers in the it was to have a fighting chance to Probusiness, open-minded about nuclear Nation’s major shipbuilding base, op- make the transition to building both power, a relentless deficit hawk but at the posed implementation of the agree- commercial and Navy ships, and thus same time unstinting in his support of civil ment even though they were the pri- survive this historic low in Navy ship- rights, gay and women’s issues and the envi- mary advocates of an effective dis- building. ronment, Tsongas was a ‘‘New Democrat’’ cipline on foreign government subsidy long before it became trendy. and dumping practices in the first Mr. LOTT. As negotiations dragged Since voting for the controversial Lowell place. on for over 5 years, the marketplace connector highway as a city councilor in his Mr. LOTT. In order to put into per- was changing dramatically and rapidly, hometown in 1972, Tsongas built a reputation spective the concerns of the U.S. ship- while the objective of the negotiators on following his political conscience despite seemed to remain static. There was a the odds. building industry, it may be helpful to He was a long shot in his successful 1978 review some of the background leading failure on the part of our negotiators U.S. Senate race against Ed Brooke and was up to this agreement. In 1981, the U.S. to recognize these changes and the ac- the first Democrat to challenge President Government terminated its subsidy tivities of the various participating George Bush. Asked about the near-empty program to the U.S. shipbuilding indus- parties during the negotiations. Democratic field for the 1992 presidential try. Thus, in 1989, the United States race, he replied: ‘‘Its a medical problem: go- China, which had no commercial nads, not lymph nodes.’’ went to the negotiating table as the shipbuilding market in 1990, began to Independent, thoughtful, passionate, he only nonsubsidizing shipbuilding coun- target shipbuilding to industrialize its was as devoted to his family as he was to try. The U.S. shipbuilding industry had economy. China now ranks third in the fighting the good fight. He quit the Senate in already lost all of its commercial ship- world for commercial shipbuilding, and 1984 so he could spend time with his wife building market share and was bracing it is not a signatory to this agreement. Niki and three daughters. ‘‘They’re going to itself for a dramatic decrease in Navy Other countries, such as the Ukraine lay me in the ground someday,’’ Tsongas shipbuilding orders. and Poland, are also not covered by said in a 1992 interview with the Globe. ‘‘I Ms. SNOWE. In 1993, 4 years after this agreement and have displayed a want to do the things I would have wanted to international negotiations had failed have done when that happens so my grand- renewed interest in their shipbuilding children will feel good about me.’’ to produce an agreement to end foreign sectors. Paul Tsongas has left all of us much to feel subsidies, Congress and President Clin- ton revived and amended a modest ship Ms. SNOWE. During the negotia- good about even as we mourn his passing. tions, Germany granted $4 billion in f loan guarantee program called Title XI. The purpose of this program was to shipyard modernization subsidies to OECD SHIPBUILDING AGREEMENT help U.S. shipbuilders recapture com- the former East German shipyards. Mr. LOTT. The 104th Congress was mercial market share in the face of South Korea approved close to a $1 bil- unable to reach a consensus on legisla- dramatic cuts in the Navy’s shipbuild- lion bailout of its largest shipbuilder tion to implement an OECD Shipbuild- ing plan and continued foreign govern- Daewoo. Other European countries con- ing Agreement. Opponents of the agreement subsidies in the commercial mar- tinued to grant billions in subsidies to ment, as negotiated, insisted that the ket. their shipbuilding industries to fill amendments passed by the House of Mr. LOTT. This modest loan guaran- their order books. Representatives be incorporated into tee program has begun the revival of Mr. LOTT. When an agreement was any implementing legislation. Support- commercial shipbuilding in the United finally reached in 1994, major U.S. ship- ers of the agreement found these States. For the first time in almost 40 builders expressed their objections amendments unacceptable. As a result, years, our major U.S. shipbuilders are with the terms of the OECD Shipbuild- no legislation was passed to put the building commercial ships for export. ing Agreement before it was signed by OECD Shipbuilding Agreement into ef- Environmentally safe oceangoing dou- the U.S. and other parties. These build- fect. ble-hulled oil tankers are being con- ers articulated to the Administration If the outcome is to be any different structed for our domestic trades. Over their concerns with the very generous in the 105th Congress, I would urge the a 2-year period, $1.7 billion in commer- transition concessions granted to the S142 CONGRESSIONAL RECORD — SENATE January 21, 1997 foreign signatories, the changing mar- Because of the importance of the years. Many members of the House of ket conditions with the growing promi- Jones Act to our national security, the Representatives and Senate do not un- nence of China, and the ineffective ‘‘in- House adopted an amendment specifi- derstand why the title XI program jurious pricing’’ or anti-dumping provi- cally prohibiting the imposition of should not continue under its current sion—especially in light of South Ko- trade countermeasures against U.S. terms and conditions for a 3-year pe- rea’s massive expansion of its ship- shipbuilders and other exporters for riod given the agreements’s special building capacity throughout the nego- Jones Act ship construction. This deals, exemptions, and transition pro- tiations. amendment is essential to our Nation’s grams in the billions of dollars for Bel- Ms. SNOWE. These concerns and the defense readiness. gium, Portugal, Spain, Germany, agreement’s negative implications for Mr. LOTT. The House also adopted France and South Korea. This inequity the U.S. Navy shipbuilding industrial an amendment defining and exempting in the transition rules is extremely base were ignored by the negotiators of ‘‘military reserve vessels’’ from cov- detrimental to U.S. builders were dis- this agreement. U.S. shipbuilders were erage under the agreement. This provi- advantaged for 15 years while they re- also dismayed that they were granted sion is essential to ensure that mili- ceived no government subsidies in the no transition period in contrast to tary ships—such as Army, Navy, and face of billions by foreign governments. what was granted to the foreign gov- Marine Corps surge and prepositioned Moreover, without a 3-year continu- ernments. The successful, but modest, sealift ships—cannot be deemed com- ance of title XI, U.S. shipbuilders Title XI loan guarantee program would mercial ships under the agreement be- would be three years further behind be rendered ineffective immediately cause of their dual-use characteristics their foreign competition. This is unac- upon the agreement’s entry into force and capability. Without this exemp- ceptable to the majority in Congress. and the domestic trade of the United tion, DOD may be precluded from pro- Ms. SNOWE. The House bill would States, as governed by the Jones Act, curing military reserve and auxiliary place the U.S. on an equal par with for- was placed in severe jeopardy by our ships with defense features from U.S. eign signatories time-wise. It would negotiators. In an effort to correct shipbuilders without the threat of re- allow title XI to continue at its present these weaknesses and flaws, the House taliatory trade countermeasures. terms and conditions during the 3-year of Representatives amended the imple- Ms. SNOWE. Many of DOD’s reserve transition period in which foreign sig- menting legislation (H.R. 2754) to ad- and auxiliary ships are commercially natories were granted very generous dress the major national security con- built, owned, and operated, and they subsidy concessions. Furthermore, cerns of the agreement. major U.S. shipbuilders desperately Mr. LOTT. The Office of the U.S. are chartered to DOD under long-term lease agreements. The U.S. Navy in- need this extension to the program if Trade Representative has maintained they are to complete their transition throughout the debate on this agree- tends to continue this approach to ac- quiring these needed assets in the fu- back to building commercial ships. If ment that the Jones Act, which re- this transition is unsuccessful, the quires ships transporting cargo be- ture. Furthermore, it is extremely difficult, if not impossible, to completely Navy’s core shipbuilding base will not tween two U.S. ports to be U.S.-built, be sustained to meet its future require- separate a ship’s defense features from -owned, and -operated, is exempt from ments. its commercial features. Therefore, the the agreement. This is only partially Mr. LOTT. In closing, it is incumbent true. Although the agreement does not implementing legislation needs to con- upon each Congress to ensure that our repeal the law, it establishes a frame- tain the definition and exemption for international trade agreements are in work and procedure for foreign govern- these types of ships or the United our best national interest. Rubber ments to take retaliatory actions States will be subjected to an inter- stamping every international agree- against U.S. shipbuilders and U.S. ex- national trade panel’s interpretation of ment, regardless of its content or im- porters for ships constructed for the what is, or is not, a military vessel or pact, is not in anyone’s best interest. I domestic trades of the United States. a defense feature. understand that the office of the U.S. Mr. LOTT. As I mentioned earlier, These countermeasures include bid re- Trade Representative has invested strictions and bid tariffs against U.S. the only government support program years of hard work in reaching the builders seeking international orders if for U.S. shipbuilders is the Title XI OECD Agreement. Unfortunately, it they also benefit from Jones Act or- Ship Loan Guarantee Program. The falls abysmally short of the objectives ders. The agreement also provides that program was revived and amended in established by the very industry which GATT-related tariff concessions may FY 1994 as part of the National Ship- sought an international agreement. be withdrawn against other U.S. prod- building Initiative contained in the Na- After all, who better understands the ucts to offset the benefit of Jones Act tional Defense Authorization Act. The shipbuilding industry than the ship- ship construction contracts to U.S. purpose of the program was to help building industry itself? And for that builders. Moreover, the agreement U.S. shipbuilders attract commercial matter, who in Congress better under- states that the Jones Act is a deroga- shipbuilding orders in the face of a dra- stand our national security interests tion of the agreement—and I quote— matic turndown in Navy orders and that the committees with jurisdiction ‘‘could undermine the balance of rights foreign government commercial ship- over national security policy? and obligations of the Parties under building subsidies. There are major disagreements in the Agreement and is unacceptable to Ms. SNOWE. Title XI provides for a Congress on whether this agreement is the other Parties.’’ government guarantee of commercial good or bad for this country. Indica- Ms. SNOWE. U.S. ownership, man- loans for the construction of ships in tions from the Office of the USTR are ning, and construction of vessels serv- the United States for U.S. and export that it is unwilling to reopen the nego- ing the Jones Act trade has provided customers. Up to 87.5 percent of the 25- tiations to achieve an agreement that the Department of Defense with a pool year loan is guaranteed under the pro- addresses the concerns of the majority of trained mariners, vessels, and the in- gram. Upon entry into force of the in Congress of both political parties. If dustrial capability to respond in time OECD Shipbuilding Agreement, how- this is the position of the U.S. Trade to national defense emergencies. For ever, the terms of title XI would be im- Representative, then I can only say example, the very shipyards that build mediately changed to guarantee only that pursuing implementing legislation and repair Jones Act vessels were up to 80 percent of a commercial loan in the 105th Congress will result in the called upon to activate military re- over a 12-year period. According to U.S. same outcome as that of the 104th Con- serve ships during Operation Desert shipbuilders, the current orders for gress. I would hope that the USTR Storm/Desert Shield, and it was the construction of large oceangoing com- would have learned something from trained mariners who operate Jones mercial ships would not have been con- last year’s experience and not waste its Act vessels in peacetime who were summated under these terms and con- time or our with a repeat performance. called upon to crew these military ditions. f ships once activated. The Jones Act Mr. LOTT. Almost every signatory to contributes to the maintenance of this this agreement—except the United IN MEMORY OF PAUL E. TSONGAS skilled work force and defense indus- States—was granted special transition Mr. LEVIN. Mr. President, I was sad- trial capability. subsidy authority for a period of 3 dened Saturday to learn of the loss of January 21, 1997 CONGRESSIONAL RECORD — SENATE S143 one of the great men that I have had vitriol, he spoke softly and without animus. volved, the ceremony will be a memo- the honor of serving with in the U.S. Although his voice was cool, his beliefs were rable event for our Nation. Senate, Paul E. Tsongas of Massachu- passionately and tenaciously held. He be- f setts. lieved that rational people of good will could solve any problem, bridge any difference, and KENTUCKY DOMINICAN SISTERS Paul Tsongas and I arrived in this lead by the force of reason. Paul Tsongas 175TH ANNIVERSARY body at the same time almost exactly loved his family more than anything on 18 years ago in 1979. By that time Paul earth and he loved his country deeply. He Mr. FORD. Mr. President, I am proud had already distinguished himself in 4 saw little distinction between the two be- to stand before you and my colleagues years of service in the House of Rep- cause he believed the greatest gift we can today to recognize the 175th anniver- resentatives, including legislation cre- give to our children is a strong future for sary of the founding of the Kentucky ating the first urban national histori- America. Dominican Sisters. They are the oldest cal park in his beloved hometown of f group of Dominican Sisters in the United States and I am pleased they Lowell. This became the catalyst for a THE INAUGURATION OF chose to put down roots in Kentucky. remarkable renaissance in that histori- PRESIDENT CLINTON cal New England mill town. It was a time in our Commonwealth’s He arrived as the first Peace Corps Mr. NICKLES. Mr. President, yester- history when the rural communities veteran ever elected to the Senate. He day, in a moving ceremony, we wit- were sometimes forgotten. But nine valued highly his opportunity to serve nessed the swearing in of President Bill pioneers took it upon themselves to L ORE help meet the needs of those in rural in Ethiopia and spoke frequently of Clinton and Vice President A G for Kentucky. They made a commitment those 2 years as the formative years of their second term. The inaugural cere- to the community to serve through his desire for public service. As a mem- mony is significant not only to the his- service, prayers, and study—a commit- ber of the Senate Foreign Relations tory of our Nation, but for the message ment which has lasted 175 years. It was Committee he was a voice for human it sends to the rest of the world about this group of women who laid the foun- rights around the world, but particu- our democracy. dation for the Kentucky Dominican larly on the African continent. In his The ceremony required a tremendous amount of planning by many, many Sisters of today. 1981 book, ‘‘The Road From Here,’’ The Sisters responded to the needs of Paul wrote, ‘‘[Human rights] are rooted people. The extensive preparations included construction of the platform, their time. They nursed soldiers in in our culture and history, and we Kentucky during the Civil War and es- should champion them. Third World ticket distribution, coordination of security measures, organization of the tablished hospitals for residents who people need to have us honor this prin- previously traveled miles for emer- ciple because if we don’t, no one effec- ceremony, planning the luncheon in Statuary Hall and countless other gency care. As the times have changed tively will. And ultimately it is the so have the needs of citizens of Ken- moral and economic strength of Amer- tasks. Leading this team of dedicated peo- tucky. But the Sisters are still answer- ica that will count, not just our mili- ing those in distress. My regret today tary might.’’ ple was the distinguished Senator from Virginia, Senator JOHN WARNER. As is that I can only highlight some of Paul accomplished a great deal in a their recent work including working short time in the Senate, including the chairman of the Joint Congressional Committee on Inaugural Ceremonies, with persons living with AIDS, assist- passage of the Alaska Lands Act of 1980 ing refugees to resettle and advocating which more than doubled the size of he had the monumental task of making the arrangements for this historic oc- for food, shelters and health care for the national park system and which not only the people of Kentucky, but President Carter called the most im- casion. He performed his responsibilities with great efficiency and with for those throughout our great United portant conservation legislation of the States. century. outstanding attention to every detail. As master of ceremonies, he skillfully On April 4, 1997, Sisters from around However, he will be remembered best the United States will gather at their orchestrated the entire program. I, for his years after the Senate. He re- Motherhouse in Springfield, KY, for a along with my colleagues, would like tired from the Senate in 1984 after weekend of celebration. Mr. President, to thank Senator WARNER and con- learning that he had cancer, pledging I ask you and my distinguished col- gratulate him on a job well done. to devote more time to his family. In leagues to join me in honoring the Ken- In addition, I would like to applaud the book, ‘‘Heading Home’’, about his tucky Dominican Sisters for 175 years the distinguished Senator from Ken- decision to leave the Senate, he wrote: of service. tucky, Senator WENDELL FORD. His ‘‘On their deathbed, no one ever said, ’I f wish I had spent more time with my contribution of hard work and past ex- business.’.’’ perience as Chairman of the committee HONORING BILL WEBER, ST. He overcame cancer undergoing a was evident in the success of this en- CHARLES CHAMBER OF COM- then-experimental medical procedure, deavor. I wish to express my gratitude MERCE 1996 CITIZEN OF THE and went on to become a Presidential to Senator FORD for his hard work. YEAR candidate in 1992, and a founder of the I would also like to thank and con- Mr. ASHCROFT. Mr. President, I rise Concord Coalition, a bipartisan organi- gratulate the other members of the today to honor the St. Charles Cham- zation which has become a credible and Joint Inaugural Committee for such a ber of Commerce 1996 Citizen of the widely-respected grassroots voice for successful ceremony. Those members Year, William H. Weber. On January 24, fiscal responsibility in government. were Majority Leader LOTT, Speaker 1996, Bill Weber will gather with As the family and friends of Paul GINGRICH, Representative ARMEY, and friends, family, and colleagues to cele- Tsongas mourn his death and celebrate Minority Leader GEPHARDT. In addi- brate his distinguished contributions his life, Barbara and I will have Niki tion, the members of the committee to his community. and Paul’s three daughters Ashley, were ably assisted by the officers and Bill is a lifelong resident of Missouri Katina, and Molly in our thoughts and employees of the Senate and House of and St. Charles. His volunteer career prayers. Representatives, as well as by person- has touched innumerable oragnizations Mr. President, a member of my staff, nel from the executive branch. The suc- with his leadership, commitment, and Rich Arenberg, who served Paul Tson- cess of the ceremony demonstrated tre- unselfish hard work. Bill has been the gas for more than 10 years as a staff mendous cooperation between both driving force behind such significant member and friend wrote a few per- parties, as well as both Houses of Con- projects as fund raising to build both sonal words which are most apt: gress and the executive branch. the St. Peters Rec-Plex and the YMCA I offer my appreciation to everyone of St. Charles County. After a volcano Paul Tsongas was an uncommon man. He who contributed countless hours to the destroyed the city of Armero, Colom- honored America with the purity of his honesty and candor. There was no private Paul 1997 inauguration ceremony, particu- bia, South America, he worked tire- Tsongas, no public Paul Tsongas. He gave to- larly to the chairman, Senator WAR- lessly to build a YMCA facility to pro- tally and completely of himself. He said ex- NER, and the ranking member, Senator vide basic needs and housing for the actly what he believed. In an age of partisan FORD. Thanks to the efforts of all in- children of that disaster. S144 CONGRESSIONAL RECORD — SENATE January 21, 1997 Closer to home, he has served on the Louis is my friend, and I am honored to services that provide for their basic boards of directors for Boys and Girls to count him among my friends. He is health care needs such as immuniza- Town of Missouri, the Regional Com- a member of the Hockessin Fire Com- tion, preventive services, acute care, merce and Growth Association, St. pany and the founding Director of the and dental care services, regardless of Louis Sports Commission, St. Charles Delaware State Fire School. For 32 whether they live in rural or urban Public Schools, St. Charles Police and years, he served as director of that areas. Fire Board, Crimestoppers, Mid Amer- school, leading it to its current pre- Employers are rapidly cutting health ica Theater, St. Charles County Horse eminent position as one of the leading care coverage for children of their em- Racing Commission, Daniel Boone Dis- fire training facilities in the United ployees. When a family earning $16,000 trict Chairman, Boy Scouts of America States. each year is required to pay over 10 and the Eagle Board of Review, YMCA During his tenure, the Delaware percent and sometimes as much as one- and United Services Blue Ribbon Com- State Fire School not only built its fa- third of their income to purchase mittee. cility in Dover, but established train- health insurance for their children, He received the Boy Scouts’ highest ing centers in Sussex and New Castle they are forced to make very difficult honor, the Silver Beaver Award in 1989, Counties, providing fire training cen- choices. They must choose between Channel 5’s [KSDK] Volunteer Board of ters within 30 minutes of every fire providing their children with basic Governors Jefferson Award in 1993, the company in Delaware. needs such as food and shelter, and YMCA’s highest leadership award and In additions to these many successes, paying for health insurance. Youth in Need honored him as its first Louis Amabili also served as president Health care coverage for children is recipient of their Youth Leadership of the New Castle Volunteers Fire- an investment in the future. Children Award. For this lifetime of service, I men’s Association, the Delaware Vol- with undiagnosed or untreated health rise today to recognize and salute Wil- unteer Firemen’s Association, and the problems may have difficulty learning liam H. Weber, St. Charles Chamber of International Association of Fire Serv- in school. A child with poor vision that Commerce 1996 Citizen of the Year. His ice Instructors. Richard Nixon ap- has not been diagnosed or treated may volunteer work has been a shining ex- pointed him to the Fire Prevention and be unable to see the blackboard. A ample to me as well as all Missourians. Control Commission, and Delaware child who is in pain from preventable f Governor Pete DuPont recognized him tooth decay may not be able to eat an HONORING THE POTTERS ON with the ‘‘Order of the First State.’’ adequate diet, and the pain may make THEIR 50TH WEDDING ANNIVER- Mr. President, Louis Amabili is one it difficult for the child to concentrate. SARY of the most well-recognized fire service A child with asthma who has poor ac- leaders in America. He served on the cess to care may spend many hours in Mr. ASHCROFT. Mr. President, fami- Board of Directors of the National Fire an emergency department and many lies are the cornerstone of America. Protection Association, and chaired days in the hospital for treatment of The data is undeniable: Individuals the Fire Officers Professional Quali- problems that could have been pre- from strong families contribute to the fications Standards Committee for vented. This occurs at a significant society. In an era when nearly half of more than a decade. cost not only in terms of dollars, but all couples married today will see their Louis was a member of the Inter- also in terms of lost opportunities to union dissolve into divorce, I believe it national Fire Service Training Asso- attend school, and loss of work time is both instructive and important to ciation and received their highest and income for the child’s parents. honor those who have taken the com- honor for his role in fire service train- These situations can be prevented with mitment of ‘‘till death us do part’’ seri- ing. He chaired the Joint Council of adequate health care coverage and ac- ously, demonstrating successfully the National Fire Service Organizations timeless principles of love, honor, and cess for children. and helped establish the National Fire Children in rural areas are especially fidelity. These characteristics make vulnerable, as there are fewer services our country strong. Service Professional Qualifications For these important reasons, I rise System. available in these areas, and some today to honor Donna and Ralph Pot- He serves as a member of the board of needed services are located at signifi- ter of Kansas City, MO, who on Sun- directors of the Congressional Fire cant distances from their homes. In ad- day, January 5, 1997, celebrated their Services Institute—which I have the dition, these children often live in 50th wedding anniversary. My wife, honor of co-chairing—and he has re- homes where their parents work for Janet, and I look forward to the day we ceived that institute’s highest honor, small employers, who are unable to can celebrate a similar milestone. the CFSI Fire Service Person of the offer dependent coverage at a low cost. Donna and Ralph’s commitment to the Year Award. Several States have demonstrated principles and values of their marriage On this occasion, as Louis Amabili the cost savings available by providing deserves to be saluted and recognized. retires from a distinguished career, it assistance to working families. My home State, Minnesota, operates its f is my privilege to recognize his years of selfless service, the lives he has own program that helps families buy LOUIS J. AMABILI touched, the lives he has taught, and private health insurance. Ninety-thou- Mr. ROTH. Mr. President, today I the lives he has saved. I want to ex- sand people are covered, including would like to say something about a press my gratitude to his wonderful 50,000 children. Over the years, more hero. The distinguished historian Ste- wife, Carmen, to his son Louis Jr., and than 41,000 families have used phen E. Ambrose says that we need to to his daughter, Janice, and I want the MinnesotaCare to leave or stay off wel- teach our children about heroes. It is record to show without question that fare, saving the taxpayers $26 million by understanding the contributions of we do, indeed, still live in a time of he- per year. great men and women that our youth roes. Quite often these valiant men and It is essential that we address this set standards of achievement for them- women live right next door. issue and provide low- and middle-in- selves. Common heroes provide a sense f come families with the option to pur- of unity and inspire us to aim a little chase affordable private insurance cov- CHILDREN’S HEALTH CARE higher than we did the day before. erage for their children. These families This week in Delaware, an outstand- Mr. WELLSTONE. Mr. President, must be provided with the means to ing man is being recognized for his children’s health care coverage needs purchase this coverage in a timely more than 50 years of service to com- to be a priority in this Congress. We manner, so that they do not have to munity, State, and Nation. His name is need to be committed to providing ac- delay the purchase of coverage for Louis J. Amabili. He’s a loving hus- cess to affordable coverage and care to their children. band, a devoted father, an attentive all working families in America. We We need to build on successful pri- grandfather, and fearless firefighter. also need to provide coverage for unin- vate, State, and Federal efforts to help He’s a man who, for half a century, has sured pregnant women, in order to en- working families afford to provide risked his life to protect the lives and sure that children get a healthy start health coverage for their children. Pro- property of others. in life. All children should have access viding coverage for children through January 21, 1997 CONGRESSIONAL RECORD — SENATE S145 age 18 and pregnant women is the next Conservative estimates of Federal ap- get the message to juveniles that their logical step in incremental health care propriations used for these at-risk and acts have real consequences to them as reform. It is sound policy and makes delinquent youth programs was more well. States will be eligible to receive economic sense. It will ensure that all than $4 billion in fiscal year 1995. Federal funds to help provide for the children in America have a healthy Despite this ongoing massive expend- adult prosecution—as a matter of law start in life. iture, the Federal Government has or prosecutorial discretion—of juve- f failed to meet its responsibility of pro- niles 14 or older who commit violent viding public safety in this arena be- crimes such as murder, forcible rape, S. 10, THE VIOLENT AND REPEAT cause it has not focused on holding ju- armed robbery, and assault with a OFFENDER ACT OF 1997 veniles accountable for their violent deadly weapon or offenses involving Mr. ASHCROFT. Mr. President, ear- crimes. We now have a new category of controlled substances or involving the lier today Senator HATCH introduced S. offenders that requires a different, possession of a firearm or a destructive 10, the Violent and Repeat Offender Act tougher approach. In short, we have device. of 1997. Senators LOTT, DOMENICI, SES- criminals in our midst—young crimi- Mr. President, punishing dangerous SIONS, and I worked with him in devel- nals—not juvenile pranksters and tru- juveniles as adults is an effective tool oping the bill. While not perfect, the ants. in fighting violent juvenile crime. For bill does take the initial steps in deal- The juvenile offenders of today will example, in Jacksonville, FL, State ing with the epidemic of violent juve- become the career criminals of tomor- Attorney Harry Shorstein instituted a nile crime sweeping the Nation. row, if government continues to fail to program to prosecute and incarcerate Mr. President, the face of crime in recognize that America has an acute such offenders in 1992. Two years later, America is indeed changing. Through- social illness that cannot be cured sole- the number of juveniles arrested in the out our history, one thing has been ly with money spent on social pro- city dropped from 7,184 to 5,475. While clear: government’s first responsibility grams. This legislation introduced juvenile arrests increased for most of is to keep the citizenry safe. John Jay today takes a common sense approach the Nation, Jacksonville’s arrest rate wrote in The Federalist, No. 3, ‘‘Among in dealing with the current epidemic of actually decreased by 30 percent. the many objects to which a wise and juvenile violence. It would help States Mr. President, States also need to free people find it necessary to direct make urban, suburban, and rural com- create and maintain juvenile criminal their attention, that of providing for munities safe once again. records. Typically, State statutes seal their safety seems to be first.’’ The bill would provide $2.5 billion juvenile criminal records and expunge The murderers, robbers, rapists, and over 5 years in new incentive grants for those records when the juvenile drug dealers of yesteryear were typi- States to enact accountability-based reaches age 18. The time has come to cally adults. Now they are typically ju- reforms in their juvenile justice sys- discard the anachronistic idea that veniles. As the age of these criminal tems. This legislation would authorize crimes committed by juveniles, no predators becomes younger and young- funding for various programs, includ- matter how heinous, must be kept con- er with each passing year, so does the ing efforts aimed at trying our most fidential from the rest of society. age of their victims. violent juveniles as adults; establish- Our laws continue to view juveniles Last Wednesday afternoon, 12-year- ing the ability of States to collect ju- through the benevolent prism of basi- old Darryl Dayan Hall was abducted at venile criminal records, fingerprints, cally good kids gone astray. The law gunpoint from the Southeast Washing- and photographs, and to share such should really view the juvenile preda- ton area by three teenagers of a gang criminal histories and information tors of today as the criminals that known as the Simple City Crew. This is within a State, with other States, and they are. These young criminals know the same gang that opened gunfire at a with the Federal Government; and es- that they can commit crime after crowded community swimming pool in tablishing Serious Habitual Offender crime because their juvenile records June 1993, wounding six children. This Comprehensive Action Program are kept hidden under a ‘‘veil of se- past Saturday, police found Darryl’s [SHOCAP]. Religious organizations crecy.’’ They also know that when they frozen body. He had been shot once in would also be permitted to participate reach their 18th birthday, they can the back of the head and at least once in the rehabilitative programs included begin a second career as adult crimi- in the body. in the bill. nals as if they had never committed a The three teenagers who are now Mr. President, serious, violent, and crime in their young lives. The argu- charged with Darryl’s murder have had repeat juvenile offenders must be held ment is that we are protecting juve- numerous prior brushes with the law. responsible for their crimes. Today we niles from the stigma of a record, but One of Darryl’s assailants was charged are living with a juvenile justice sys- in reality we are coddling hardened as a juvenile with possession of PCP in tem that was created around the time criminals. We must separate rhetoric 1995 and then was released—as is too of the silent film. We are living with a from reality by lifting the ‘‘veil of se- often the case—promising not to run juvenile justice system that rep- crecy.’’ afoul of the law again. Another of rimands the crime victim for being at The law enforcement community Darryl’s assailants was, and is, on pro- the wrong place at the wrong time, and needs to know if an individual has a bation following his juvenile convic- then turns around and hugs the juve- prior juvenile criminal record in order tion last spring for possession of PCP nile terrorist, whispering ever so softly to conduct criminal investigations and with intent to distribute. Darryl’s into his ear, ‘‘Don’t worry, the State apprehend those responsible for crimes third assailant was charged as a juve- will cure you.’’ in their towns, cities, and counties. nile just last month with carrying a The juvenile justice system’s pri- According to Police Chief David G. deadly weapon. mary goal today is to treat and reha- Walchak, who is also president of the Mr. President, from 1984 to 1994, the bilitate the juvenile offender. Such a International Association of Chiefs of number of juveniles murdered in this system can handle runaways, truants, Police, law enforcement is in desperate country increased 82 percent. In 1994, and other status offenders; but it is ill- need of access to juvenile criminal one of every five juveniles murdered equipped to deal with those who com- records. The police chief says, ‘‘Current was killed by another juvenile. The mit serious and violent juvenile crimes juvenile records (both arrest and adju- rate at which juveniles 14 to 17 years repeatedly. dication) are inconsistent across the old were arrested for murder grew by 22 The criminal justice system can em- States, and are usually unavailable to percent from 1990 to 1994 and the prob- phasize to adult criminals that acts the various programs’ staff who work lem is going to get worse, much worse. have real consequences. The purpose of with youthful offenders.’’ Chief Congress over the last three decades the criminal justice system is to pun- Walchak also notes that ‘‘there are has established 131 separate Federal ish, that is, to hold defendants ac- only 26 States that even allow law en- programs—administered by 16 different countable. forcement access to juvenile records departments and agencies—to serve de- This legislation would provide finan- * * * if we [law enforcement] don’t linquent and at-risk youth, according cial assistance to States to help them know who the youthful offenders are, to a report issued by GAO last March. reform their juvenile justice system to we can’t appropriately intervene.’’ S146 CONGRESSIONAL RECORD — SENATE January 21, 1997 Mr. President, it is that simple. As The bill also allows State and local longer concentrated in the big cities, juvenile gangs spread from urban to governments to use Federal funds to they are now in rural towns. The bill suburban to rural areas, as they travel implement the Serious Habitual Of- would also provide $100 million to hire from State to State, the ‘‘veil of se- fenders Comprehensive Action Pro- assistant U.S. attorneys to prosecute crecy’’ draped over their criminal his- gram [SHOCAP]. juvenile criminal street gangs. tories and records undermines the abil- SHOCAP is a multi-agency crime We as a nation and a government ity of law enforcement to protect the analysis and case management process must challenge this culture of violence rest of society. for identifying and prosecuting violent and restore the culture of personal re- In order to empower local law en- and hard-core juvenile offenders in a sponsibility and accountability. It is forcement, the proposed bill would pro- community. SHOCAP targets such seri- high time to consider hard-headed and vide money to States to create and ous habitual offenders for intensive so- sensible juvenile justice policies. maintain juvenile criminal records, cial supervisory interventions, inten- Where possible we must give second and to share those records with other sive accountability in school attend- chances. Where necessary we must pun- federal, State, and local law enforce- ance and discipline, and strenuous in- ish severely. This is a first step to re- ment agencies. vestigation and prosecution when they store justice to a nation that has Mr. President, school officials also commit a new crime. grown weary of injustice. need access to juvenile criminal The Office of Juvenile Justice and In sum, this legislation would send a records to assist them in protecting Delinquency Prevention [OJJDP] con- clear, cogent, and convincing message the best interests and safety of all stu- ducted five test pilots of SHOCAP. to violent juveniles: ‘‘Serious acts have dents. The decline in school safety Oxnard, CA was one of the sites se- serious consequences.’’ across the country can be attributed to lected. When SHOCAP was imple- a significant degree to laws that put mented in Oxnard in 1983, officials f the protection of dangerous students found that less than 2 percent of all ju- ahead of protecting innocent, law-abid- veniles arrested in that community THE VERY BAD DEBT BOXSCORE ing students. While visiting with were responsible for over 35 percent of school officials in Sikeston, MO, a the felonies committed by juveniles. Mr. HELMS. Mr. President, it was teacher told me how one of her stu- Four years later, Oxnard’s juvenile vio- not quite 12 months ago—on Friday, dents came to school wearing an elec- lent crime dropped 38 percent. Illinois February 23, 1996—that the Federal tronic monitoring ankle bracelet. The and Florida have also recently estab- debt broke the $5 trillion sound barrier student told the teacher, ‘‘You don’t lished statewide SHOCAP programs in for the first time in history. The know if I’m a murderer or a rapist and an effort to reduce their juvenile crime records show that on that day, at the I ain’t gonna tell you.’’ That student rates. S. 10 would allow all jurisdic- close of business, the debt stood at was not only brutally honest, he was tions to use Federal funds to help im- $5,017,056,630,040.53. right. No one had any knowledge of plement SHOCAP. Just 20 years earlier, in 1976, the Fed- what crime he had committed and, Mr. President, reforms are also nec- eral debt stood at $629 billion—and that more importantly, they had no way of essary at the Federal level as well. S. was after the first 200 years of Ameri- finding out. 10 would make it easier for Federal ca’s history had elapsed, including two If schools knew the histories of vio- prosecutors to try juveniles as adults. world wars. Then the big spenders real- lent juveniles, they could respond to Under the bill, U.S. attorneys would ly went to work and the interest on the any misbehavior by imposing stricter have discretion to decide whether to Federal debt really began to take off— sanctions, assigning particular teach- try as adults juveniles 14 years or older and, presto, during the past two dec- ers, or having the student’s locker near without having to go through the At- ades the Federal debt has soared into a teacher’s doorway entrance so that torney General’s office in Washington. the stratosphere, increasing by more the teacher can monitor his conduct Federal juvenile court proceedings than $4 trillion in two decades from during the changing of class periods. In would be opened to the general public. 1976 to 1996. short, this bill would allow school offi- When imposing a sentence, the district So, Mr. President, as of the close of cials to take measures that could pre- court would also be allowed to consider business Friday, January 17, 1997, the vent violence against other children at a juvenile’s entire criminal record Federal debt stood—down-to-the- school. under the bill. In any case in which a penny—at $5,309,774,506,681.99. On a per Mr. President, for purposes of adult juvenile is tried as an adult, access to capita basis, every man, woman, and sentencing, adult courts need to know the record of that offense would be child in America owes $19,917.66 as his that convicted felons have a history of made available to law enforcement au- or her share of that debt. criminal behavior. According to the thorities and others in the same man- This enormous debt is a festering, es- 1991 Survey of Inmates in State Correc- ner that adult criminal records are calating burden on all citizens and es- tional Facilities, nearly 40 percent of publicly available. pecially it is jeopardizing the liberty of prison inmates also had prior criminal Mr. President, the government our children and grandchildren. As Jef- records as juveniles. That is approxi- should also be able to mount a counter- ferson once warned, ‘‘to preserve [our] mately 4 in 10 prison inmates. The pro- attack on gang violence. This legisla- independence, we must not let our posed legislation would allow adult tion targets violent youth gangs, like leaders load us with perpetual debt. We courts to have access to juvenile the notorious Simple City Crew in the must make our election between econ- records so that criminals could no District. There would be new Federal omy and liberty, or profusion and ser- longer masquerade as neophytes before penalties for offenses committed by vitude.’’ the adult criminal justice system. criminal street gangs. Gangs are no Was Mr. Jefferson right, or what?

N O T I C E Incomplete record of Senate proceedings. Except for concluding business which follows, today’s Senate proceedings will be continued in the next issue of the Record.

ADJOURNMENT UNTIL 10 A.M. Thereupon, the Senate, at 7:19 p.m. NOMINATIONS TOMORROW adjourned until Wednesday, January Executive nominations received by 22, 1997, at 10 a.m. The PRESIDING OFFICER. Under the Senate January 21, 1997: the previous order, the Senate stands adjourned. January 21, 1997 CONGRESSIONAL RECORD — SENATE S147

NATIONAL FOUNDATION ON THE ARTS AND THE PATRICIA M. GONZALEZ, OF TEXAS HARRY R. KAMIAN, OF CALIFORNIA DAVID J. GREENE, OF NEW YORK MARC E. KNAPPER, OF CALIFORNIA HUMANITIES RAYMOND FRANKLIN GREENE III, OF MARYLAND BLAIR L. LABARGE, OF UTAH AYSE MANYAS KENMORE, OF FLORIDA, TO BE A MEM- RONALD ALLEN GREGORY, OF TENNESSEE WILLIAM SCOTT LAIDLAW, OF WASHINGTON BER OF THE NATIONAL MUSEUM SERVICES BOARD FOR A DEBORAH GUIDO-O’GRADY, OF VIRGINIA KAYE-ANN LEE, OF WASHINGTON TERM EXPIRING DECEMBER 6, 2000. (REAPPOINTMENT) AUDREY LOUISE HAGEDORM, OF VIRGINIA BRIAN LIEKE, OF TEXAS PATTI HAGOPIAN, OF VIRGINIA BERNARD EDWARD LINK, OF DELAWARE LEGAL SERVICES CORPORATION CHARLES P. HARRINGTON, OF VIRGINIA LEE MACTAGGART, OF WASHINGTON RONALD S. HIETT, OF VIRGINIA RICHARD T. REITER, OF CALIFORNIA JOHN T. BRODERICK, JR., OF NEW HAMPSHIRE, TO BE A RUTH-ERCILE HODGES, OF NEW YORK KAI RYSSDAL, OF VIRGINIA MEMBER OF THE BOARD OF DIRECTORS OF THE LEGAL KRISTINA M. HOTCHKISS, OF VIRGINIA NORMAN THATCHER SCHARPF, OF THE DISTRICT OF CO- SERVICES CORPORATION FOR A TERM EXPIRING JULY 13, ANDREAS O. JAWORSKI, OF VIRGINIA LUMBIA 1999. (REAPPOINTMENT) RALPH M. JONASSEN, OF NEW YORK JENNIFER LEIGH SCHOOLS, OF TEXAS JUSTIN H. SIBERELL, OF CALIFORNIA NATIONAL FOUNDATION ON THE ARTS AND THE MARNI KALUPA, OF TEXAS JANE J. KANG, OF CALIFORNIA ANTHONY SYRETT, OF WASHINGTON HUMANITIES SARAH E. KEMP, OF NEW YORK HERBERT S. TRAUB III, OF FLORIDA FREDERICK J. KOWALESKI, OF VIRGINIA ARNOLDO VELA, OF TEXAS SUSAN E. TREES, OF MASSACHUSETTS, TO BE A MEM- J. RICHARD WALSH, OF ALABAMA BER OF THE NATIONAL COUNCIL ON THE HUMANITIES STEVEN W. KRAPCHO, OF VIRGINIA GREGORY R. LATTANZE, OF VIRGINIA DAVID K. YOUNG, OF FLORIDA FOR A TERM EXPIRING JANUARY 26, 2002, VICE PETER DARCY FYOCK ZOTTER, OF VERMONT SHAW, TERM EXPIRED. CHARLES W. LEVESQUE, OF ILLINOIS JANICE O. MACDONALD, OF VIRGINIA THE FOLLOWING-NAMED MEMBERS OF THE FOREIGN INTER-AMERICAN FOUNDATION C. WAKEFIELD MARTIN, OF TEXAS SERVICE OF THE DEPARTMENT OF COMMERCE AND THE BRIAN I. MCCLEARY, OF VIRGINIA DEPARTMENT OF STATE TO BE CONSULAR OFFICERS JEFFREY DAVIDOW, OF VIRGINIA, A CAREER MEMBER ALAN D. MELTZER, OF NEW YORK OF THE SENIOR FOREIGN SERVICE, CLASS OF MINISTER- AND/OR SECRETARIES IN THE DIPLOMATIC SERVICE OF DAVID J. MICO, OF INDIANA THE UNITED STATES OF AMERICA, AS INDICATED: COUNSELOR, TO BE A MEMBER OF THE BOARD OF DIREC- CHRISTOPHER S. MISCIAGNO, OF FLORIDA TORS OF THE INTER-AMERICAN FOUNDATION, FOR A CONSULAR OFFICERS AND SECRETARIES IN THE DIP- JOSEPH P. MULLIN, JR., OF VIRGINIA LOMATIC SERVICE OF THE UNITED STATES OF AMERICA: TERM EXPIRING SEPTEMBER 20, 2002, VICE ALEXANDER BURKE O’CONNOR, OF CALIFORNIA FLETCHER WATSON. EDWARD J. ORTIZ, OF VIRGINIA DEREK A. BOWER, OF VIRGINIA FOREIGN SERVICE MARIA ELENA PALLICK, OF INDIANA STEVEN P. CHISHOLM, OF VIRGINIA DAVID D. POTTER, OF SOUTH DAKOTA HENRY J. HEIN, JR., OF VIRGINIA THE FOLLOWING-NAMED PERSONS OF THE AGENCIES ERIC N. RICHARDSON, OF MICHIGAN HOLLY ANN HERMAN, OF VIRGINIA INDICATED FOR APPOINTMENT AS FOREIGN SERVICE OF- HEATHER C. ROACH, OF IOWA E. KEITH KIRKHAM, OF MAINE FICERS OF THE CLASSES STATED, AND ALSO FOR THE TAYLOR VINSON RUGGLES, OF VIRGINIA MARY PAT MOYNIHAN, OF VIRGINIA OTHER APPOINTMENTS INDICATED HEREWITH: THOMAS L. SCHMIDT, OF SOUTH DAKOTA JOHN W. RATKIEWICZ, OF NEW JERSEY FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF JONATHAN L.A. SHRIER, OF FLORIDA SECRETARY OF THE DIPLOMATIC SERVICE OF THE CLASS ONE, CONSULAR OFFICER AND SECRETARY IN THE JAMES E. SMELTZER III, OF MARYLAND UNITED STATES OF AMERICA: DIPLOMATIC SERVICE OF THE UNITED STATES OF AMER- CHRISTINE L. SMITH, OF VIRGINIA ICA: KEENAN JABBAR SMITH, OF PENNSYLVANIA WILLIAM B. CLATANOFF, JR., OF VIRGINIA BRIAN K. STEWART, OF VIRGINIA AGENCY FOR INTERNATIONAL DEVELOPMENT CHRISTINE D. STUEBNER, OF NEW YORK THE FOLLOWING-NAMED CAREER MEMBERS OF THE FOREIGN SERVICE OF THE DEPARTMENT OF STATE FOR PAUL ALBERT BISEK, OF VIRGINIA STEPHANIE FAYE SYPTAK, OF TEXAS ERMINIDO TELLES, OF VIRGINIA PROMOTION IN THE SENIOR FOREIGN SERVICE TO THE FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF MARK TESONE, OF VIRGINIA CLASS INDICATED, EFFECTIVE OCTOBER 18, 1992: CLASS TWO, CONSULAR OFFICER AND SECRETARY IN MICHAEL ANTHONY VEASY, OF TENNESSEE CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE THE DIPLOMATIC SERVICE OF THE UNITED STATES OF GLENN STEWART WARREN, OF CALIFORNIA OF THE UNITED STATES OF AMERICA, CLASS OF MIN- AMERICA: MARK E. WILSON, OF TEXAS ISTER-COUNSELOR: ANTHONY L. WONG, OF VIRGINIA AGENCY FOR INTERNATIONAL DEVELOPMENT ELIZABETH B. BOLLMANN, OF MISSOURI GREGORY M. WONG, OF MISSOURI MARSHA D. VON DUEREKHEIM, OF CALIFORNIA SUSUMO KEN YAMASHITA, OF MARYLAND KIM WOODWARD, OF VIRGINIA MARTHA-JEAN HUGHES WYNNYCZOK, OF VIRGINIA THE FOLLOWING-NAMED CAREER MEMBERS OF THE FOR APPOINTMENT AS FOREIGN SERVICE OFFICERS OF TERESA L. YOUNG, OF VIRGINIA FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- CLASS THREE, CONSULAR OFFICERS AND SECRETARIES SECRETARY IN THE DIPLOMATIC SERVICE OF THE VIOUSLY PROMOTED IN THE SENIOR FOREIGN SERVICE IN THE DIPLOMATIC SERVICE OF THE UNITED STATES OF UNITED STATES OF AMERICA: TO THE CLASS INDICATED ON OCTOBER 18, 1992 NOW TO AMERICA: BE EFFECTIVE APRIL 7, 1991: JOHN WEEKS, OF VIRGINIA CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE AGENCY FOR INTERNATIONAL DEVELOPMENT OF THE UNITED STATES OF AMERICA, CLASS OF MIN- THE FOLLOWING-NAMED PERSONS OF THE AGENCIES ISTER-COUNSELOR: SUSAN KUCHINSKI BREMS, OF THE DISTRICT OF COLUM- INDICATED FOR APPOINTMENT AS FOREIGN SERVICE OF- BIA FICERS OF THE CLASSES STATED, AND ALSO FOR THE JOAN ELLEN CORBETT, OF VIRGINIA CHRISTINE M. BRYNE, OF VIRGINIA OTHER APPOINTMENTS INDICATED HEREWITH: JUDITH RODES JOHNSON, OF TEXAS JAMES ERIC SCHAEFFER, OF FLORIDA FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF MARY ELIZABETH SWOPE, OF VIRGINIA DEPARTMENT OF COMMERCE CLASS ONE, CONSULAR OFFICER AND SECRETARY IN THE DIPLOMATIC SERVICE OF THE UNITED STATES OF AMER- THE FOLLOWING-NAMED CAREER MEMBER OF THE KARLA B. KING, OF FLORIDA ICA: FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- TERRY J. SORGI, OF WISCONSIN VIOUSLY PROMOTED IN THE SENIOR FOREIGN SERVICE DEPARTMENT OF STATE TO THE CLASS INDICATED ON OCTOBER 18, 1992, NOW TO FOR APPOINTMENT AS FOREIGN SERVICE OFFICERS OF BE EFFECTIVE OCTOBER 6, 1991: CLASS FOUR, CONSULAR OFFICERS AND SECRETARIES IN LARRY CORBETT, OF NEVADA CAREER MEMBER OF THE SENIOR FOREIGN SERVICE THE DIPLOMATIC SERVICE OF THE UNITED STATES OF FOR APPOINTMENT AS FOREIGN SERVICE OFFICERS OF OF THE UNITED STATES OF AMERICA, CLASS OF MIN- AMERICA: CLASS TWO, CONSULAR OFFICERS AND SECRETARIES IN ISTER-COUNSELOR: U.S. INFORMATION AGENCY THE DIPLOMATIC SERVICE OF THE UNITED STATES OF SYLVIA G. STANFIELD, OF TEXAS AMERICA: TANIA BOHACHEVSKY CHOMIAK, OF FLORIDA THE FOLLOWING-NAMED CAREER MEMBERS OF THE DEPARTMENT OF COMMERCE LINDA JOY HARTLEY, OF CALIFORNIA FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- SHARON HUDSON-DEAN, OF PENNSYLVANIA HANS J. AMRHEIN, OF VIRGINIA VIOUSLY PROMOTED INTO THE SENIOR FOREIGN SERV- CONSTANCE COLDING JONES, OF INDIANA ICE TO THE CLASS INDICATED ON NOVEMBER 6, 1988, NOW STEVEN LOUIS PIKE, OF NEW YORK DEPARTMENT OF STATE EFFECTIVE OCTOBER 12, 1986: DAVID MICHAEL REINERT, OF NEW MEXICO CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE PHYLLIS MARIE POWERS, OF TEXAS OF THE UNITED STATES OF AMERICA, CLASS OF COUN- MICHAEL S. TULLEY, OF CALIFORNIA DEPARTMENT OF STATE SELOR: FOR APPOINTMENT AS FOREIGN SERVICE OFFICERS OF SARAH J. METZGER, OF VIRGINIA JOAN ELLEN CORBETT, OF VIRGINIA CLASS THREE, CONSULAR OFFICERS AND SECRETARIES JUDITH RODES JOHNSON, OF TEXAS FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF IN THE DIPLOMATIC SERVICE OF THE UNITED STATES OF MARY ELIZABETH SWOPE, OF VIRGINIA CLASS FOUR, CONSULAR OFFICER AND SECRETARY IN AMERICA: THE DIPLOMATIC SERVICE OF THE UNITED STATES OF AGENCY FOR INTERNATIONAL DEVELOPMENT THE FOLLOWING-NAMED CAREER MEMBER OF THE AMERICA EFFECTIVE JUNE 28, 1996: FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- DEPARTMENT OF STATE KIMBERLY J. DELANEY, OF VIRGINIA VIOUSLY PROMOTED INTO THE SENIOR FOREIGN SERV- EDITH FAYSSOUX JONES HUMPHREYS, OF NORTH CARO- ICE TO THE CLASS INDICATED ON NOVEMBER 6, 1988, NOW MARC C. JOHNSON, OF THE DISTRICT OF COLUMBIA LINA EFFECTIVE JANUARY 3, 1988: CAREER MEMBER OF THE SENIOR FOREIGN SERVICE THE FOLLOWING-NAMED MEMBERS OF THE FOREIGN DEPARTMENT OF STATE OF THE UNITED STATES OF AMERICA, CLASS OF COUN- SERVICE OF THE DEPARTMENT OF COMMERCE AND THE SELOR: DEPARTMENT OF STATE, TO BE CONSULAR OFFICERS JEMILE L. BERTOT, OF CONNECTICUT AND/OR SECRETARIES IN THE DIPLOMATIC SERVICE OF FOR APPOINTMENT AS FOREIGN SERVICE OFFICER OF SYLVIA STANFIELD, OF TEXAS AMERICA, AS INDICATED: CLASS FOUR, CONSULAR OFFICERS AND SECRETARIES IN THE FOLLOWING-NAMED CAREER MEMBER OF THE CONSULAR OFFICERS AND SECRETARIES IN THE DIP- THE DIPLOMATIC SERVICE OF THE UNITED STATES OF LOMATIC SERVICE OF THE UNITED STATES OF AMERICA FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- AMERICA: VIOUSLY PROMOTED INTO THE SENIOR FOREIGN SERV- ROBERT L. ADAMS, OF VIRGINIA DEPARTMENT OF STATE ICE TO THE CLASS INDICATED ON APRIL 7, 1991, NOW EF- VEOMAYOURY BACCAM, OF IOWA FECTIVE NOVEMBER 19, 1989: DOUGLASS R. BENNING, OF THE DISTRICT OF COLUMBIA ALFRED B. ANZALDUA, OF CALIFORNIA CAREER MEMBER OF THE SENIOR FOREIGN SERVICE STEVEN A. BOWERS, OF VIRGINIA DAVID A. BEAM, OF PENNSYLVANIA OF THE UNITED STATES OF AMERICA, CLASS OF COUN- MICHAEL A. BRENNAN, OF CONNECTICUT DONALD ARMIN BLOME, OF ILLINOIS SELOR: KERRY L. BROUGHAM, OF CALIFORNIA P.P. DECLAN BRYNE, OF WASHINGTON ANDREA BROUILETTE-RODRIGUEZ, OF MINNESOTA LAUREN W. CATIPON, OF NEW JERSEY VIRGINIA CARSON YOUNG, OF THE DISTRICT OF COLUM- PAAL CAMMERMEYER, OF MARYLAND JAMES PATRICK DEHART, OF MICHIGAN BIA PRISCILLA CARROLL CASKEY, OF MARYLAND JOSEPH DEMARIA, OF NEW JERSEY THE FOLLOWING-NAMED CAREER MEMBER OF THE JULIANNE MARIE CHESKY, OF VIRGINIA MICHAEL RALPH DETAR, OF NEW YORK FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- CARMELA A. CONROY, OF WASHINGTON RODGER JAN DEUERLEIN, OF CALIFORNIA VIOUSLY PROMOTED INTO THE SENIOR FOREIGN SERV- JULIE CHUNG, OF CALIFORNIA STEPHEN A. DRUZAK, OF WASHINGTON ICE TO THE CLASS INDICATED ON OCTOBER 6, 1991, NOW EDWARD R. DEGGES, JR., OF VIRGINIA MARY EILEEN EARL, OF VIRGINIA EFFECTIVE APRIL 7, 1991: THOMAS L. ELMORE, OF FLORIDA LINDA LAURENTS EICHBLATT, OF TEXAS CAREER MEMBER OF THE SENIOR FOREIGN SERVICE WAYNE J. FAHNESTOCK, OF MARYLAND JESSICA ELLIS, OF WASHINGTON OF THE UNITED STATES OF AMERICA, CLASS OF COUN- DENIS BARRETT FINOTTI, OF MARYLAND STEPHANIE JANE FOSSAN, OF VIRGINIA SELOR: KENNETH FRASER, OF MARYLAND CHRISTOPHER SCOTT HEGADORN, OF THE DISTRICT OF GARY R. GIUFFRIDA, OF MARYLAND COLUMBIA JUDITH M. HEINMANN, OF CONNECTICUT S148 CONGRESSIONAL RECORD — SENATE January 21, 1997

THE FOLLOWING-NAMED CAREER MEMBERS OF THE NATIONAL DEVELOPMENT FOR PROMOTION IN THE SEN- HARRY F. BIRNHOLZ, OF NEW YORK FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- IOR FOREIGN SERVICE TO THE CLASSES INDICATED: PAUL A. BISEK, OF ILLINOIS VIOUSLY PROMOTED IN THE SENIOR FOREIGN SERVICE CAREER MEMBER OF THE SENIOR FOREIGN SERVICE DOUGLAS A. CHIRIBOGA, OF VIRGINIA TO THE CLASS INDICATED ON OCTOBER 18, 1992, NOW EF- OF THE UNITED STATES OF AMERICA, CLASS OF CAREER PAUL R. DEUSTER, OF VIRGINIA FECTIVE APRIL 7, 1991: MINISTER: WILLIAM J. GARVELINK, OF VIRGINIA CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE VIVIANN GARY, OF WASHINGTON TERRENCE J. BROWN, OF VIRGINIA OF THE UNITED STATES OF AMERICA, CLASS OF COUN- GENE V. GEORGE, OF NEW YORK SELOR: KELLY C. KAMMERER, OF THE DISTRICT OF COLUMBIA RICHARD H. GOLDMAN, OF FLORIDA LINDA E. MORSE, OF VIRGINIA JUDY LANDSTEIN MANDEL, OF THE DISTRICT OF COLUM- RICHARD J. GOUGHNOUR, OF FLORIDA BIA CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE FREDERICK J. GUYMONT, OF FLORIDA MARY C. PENDLETON, OF VIRGINIA OF THE UNITED STATES OF AMERICA, CLASS OF MIN- JOHN VAN D. LEWIS, OF THE DISTRICT OF COLUMBIA ISTER-COUNSELOR: JOHN R. MARTIN, OF ILLINOIS THE FOLLOWING-NAMED CAREER MEMBERS OF THE LOUIS MUNDY III, OF FLORIDA FOREIGN SERVICE OF THE DEPARTMENT OF STATE, PRE- ROSE MARIE DEPP, OF MARYLAND EVERETT B. ORR, OF FLORIDA VIOUSLY PROMOTED INTO THE SENIOR FOREIGN SERV- GREGORY F. HUGER, OF THE DISTRICT OF COLUMBIA ICE TO THE CLASS INDICATED ON OCTOBER 18, 1992, NOW KAREN M. POE, OF VIRGINIA GEORGE JONES, OF COLORADO THOMAS LEE RISHOI, OF FLORIDA EFFECTIVE OCTOBER 6, 1991: LINDA N. LION, OF VIRGINIA CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE TERRENCE P. TIFFANY, OF OREGON CARLOS E. PASCUAL, OF THE DISTRICT OF COLUMBIA OF THE UNITED STATES OF AMERICA, CLASS OF COUN- ERIC R. ZALLMAN, OF FLORIDA THE FOLLOWING-NAMED CAREER MEMBER OF THE SELOR: SENIOR FOREIGN SERVICE OF THE UNITED STATES IN- THE FOLLOWING-NAMED CAREER MEMBERS OF THE JEANANNE LOUIS, OF VIRGINIA FORMATION AGENCY FOR PROMOTION IN THE SENIOR FOREIGN SERVICE OF THE AGENCY FOR INTERNATIONAL SHARON MERCURIO, OF CALIFORNIA FOREIGN SERVICE TO THE CLASS INDICATED: RUTH H. VAN HEUVEN, OF CONNECTICUT DEVELOPMENT FOR PROMOTION INTO THE SENIOR FOR- CAREER MEMBER OF THE SENIOR FOREIGN SERVICE ROBIN LANE WHITE, OF MASSACHUSETTS EIGN SERVICE. OF THE UNITED STATES OF AMERICA, CLASS OF CAREER CAREER MEMBERS OF THE SENIOR FOREIGN SERVICE MINISTER: THE FOLLOWING-NAMED CAREER MEMBERS OF THE OF THE UNITED STATES OF AMERICA, CLASS OF COUN- SENIOR FOREIGN SERVICE OF THE AGENCY FOR INTER- SELOR: MARILYN MC AFFE, OF FLORIDA January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E99 EXTENSIONS OF REMARKS

ADOPTING THE RULES OF THE Congress, we were offering the Moakley 2-day interactions. We cannot do our jobs well HOUSE FOR THE 105TH CONGRESS rule for filing views in the spirit of bipartisan- when we distrust those with whom we work. ship, giving him full recognition for being the We were sent here to make sound, well-rea- author of the proposal, and full support for the soned policy decisions on behalf of our con- HON. GERALD B.H. SOLOMON stituents, our country and the world. I am OF NEW YORK Moakley rule. So the gentleman from Michigan deeply concerned that the public good is IN THE HOUSE OF REPRESENTATIVES is just factually, dead wrong in asserting that being compromised in the conflicts of our Tuesday, January 21, 1997 such a rule was never proposed by the Demo- rival parties. crats in all of its 40 years of control of the It is out of these concerns that I admit cer- Mr. SOLOMON. Mr. Speaker, during the de- House. In fact it was, and came very close to tain changes are needed. On the procedural bate on House Resolution 5, adopting House being adopted just prior to the 1994 elections front, I think I can recommend several im- Rules for the 105th Congress, my good friend when we gained control of the House. provements which will not only enhance the from Michigan [Mr. DINGELL] inserted a state- As Mr. MOAKLEY made clear in his testimony quality of deliberation in the House of Rep- ment in the RECORD complaining about the before the joint committee in 1993, it was his resentatives, but will also lessen some of the partisan jealousies which arguably consume provision in the rules packages that reduces hope that by shortening the period for filing from 3 days to 2 days after a measure or mat- too much of our time and energy. As I have views, it would be less necessary in the future not yet talked with the Speaker about these ter is approved by a committee, the time for for the Rules Committee to waive the 3-day ideas, I in no way wish to imply that my re- filing additional, supplemental or minority requirement for reports to be available to marks today reflect the sentiments of the views. To quote from his statement: Members before they can be considered by Leadership. I find it ironic indeed that during the 40 the House. We share that same hope. First, I would like to note the Democratic years of control by the Democratic Party, we Mr. Speaker, with that I insert at this point Leadership’s recent efforts to allow for more never considered limiting this fundamental in the RECORD the testimony of Mr. MOAKLEY open, inclusive debate. By inclusive I mean right of the minority to file views on legisla- before that joint committee in 1993, as well as providing for greater participation by both tion. Yet after just 2 years in control of the the majority and the minority. The views of House, the Republicans have found the the relevant text of his rule from his August 1 the minority are a vital component of the granting of 3 whole days to the minority to and September 19, 1994, chairman's marks legislative process, and within reason, should file its views as somehow being too onerous. for H.R. 3801, which also included the auto- be accommodated. I say within reason be- Mr. Speaker, I am responding to that in- matic filing authority for committees on the cause underlying the legislative procedures serted speech by inserting my own rebuttal second day. of the House is the general principle that a under the general leave granted to Members The materials follow: determined majority of members should be to revise and extend their remarks on House STATEMENT OF THE HONORABLE JOHN JOSEPH able to work its will on the floor without MOAKLEY, CHAIRMAN, COMMITTEE ON RULES, undue delay by the minority. While House Resolution 5. rules and procedures generally recognize the I only regret that the gentleman from Michi- U.S. HOUSE OF REPRESENTATIVES BEFORE THE JOINT COMMITTEE ON THE ORGANIZATION importance of permitting any minority, par- gan [Mr. DINGELL] was apparently not on the OF CONGRESS, MAY 20, 1993 tisan or bi-partisan, to present its views and floor to hear my opening statement on the Mr. Chairman, I would like to thank the prepare alternatives, the rules do not enable rules package in which I explained that the Joint Committee for the opportunity to ap- that minority to filibuster or use other de- proposal for 2 rather than 3 days to file views pear before you today to talk about commit- vices to prevent the majority from accom- was originally made by Rules Committee tee and floor procedures in the U.S. House of plishing its objectives in a timely manner. Chairman JOE MOAKLEY before the Joint Com- Representatives. As Chairman of the House I think everyone would agree that it is the mittee on the Organization of the Congress in Rules Committee, I realize I am an obvious prerogative of the majority party leadership spokesperson for the procedures by which to both set the legislative agenda and to pro- the 103d Congress. Moreover, when the joint vide for the orderly consideration of legisla- committee did not include that proposal in its bills are considered in the House. I do not come before you today to blindly defend our tion in the House. And while the role of the recommended bill (H.R. 3801, Representative current practices. Rather, I view this as a Rules Committee is to try to facilitate the HAMILTON, Feb. 4, 1994), the chairman in- valuable and essential opportunity to take Leadership’s legislative agenda, its power is serted it in his chairman's mark or substitute an objective, critical look at our rules and not without limitation. The Rules Commit- for the joint committee's bill. procedures and to comment on what areas tee can only recommend special rules to the We did not object to the proposal when Mr. might possibly be improved. House—it cannot impose its recommenda- MOAKLEY testified in support of it before the Before getting to specifics, I would like to tions on the membership. It is for the House joint committee on May 20, 1993. Nor did we briefly express my gratitude to the Joint to decide, by majority vote, whether it is object to it when he included it in his chair- Committee for the work it has done to date. prepared to accept the ground rules, includ- I commend the Committee for both its dili- ing any restrictions on amendments that the man's mark of August 1, 1994. Nor did we gence and the seriousness with which it has Committee proposes. present an amendment to the Rules Commit- undertaken its work. Yours is not an easy The Rules Committee structures its rules tee to delete it during the committee markup task, I know. Change is always difficult, par- based not only on the views of its members, of H.R. 3801 on August 4, 1994Ðeven though ticularly when it is uncertain whether the but also on its perception of what a major- we did file with the committee a rather lengthy proposed changes will actually improve the ity—218 members—of the House is prepared package of other amendments we intended to status quo. I can appreciate the enormity of to support. Ultimately, the House agenda is offer. your assignment and hope that my com- subject to control by a voting majority. This Although the markup was suspended on Au- ments today assist you with your com- majority is not static, nor is it strictly par- prehensive evaluation of the Institution. tisan. Rather it is continually shifting and gust 4 by Chairman MOAKLEY over the pros- Reflecting upon the atmosphere in Con- must be constructed and reconstructed from pect of a repeal of proxy voting, after only one gress of late, I must confess that I am almost one issue to the next. majority amendment had been disposed of, it relieved that we have reached this juncture— Unfortunately, bare statistics do not al- should be made quite clear that the suspen- it is time for us to confront our problems, ei- ways reflect the considerations behind the sion of the markup was not caused by any ther real or perceived, and resolve them one types of rules reported by my Committee. Rules Committee Republican opposition raised way or another. In my twenty-one years in The first ten rules reported by the Rules or noticed on the 2-day rule for filing views. Congress, I have never experienced partisan Committee in the 103rd Congress were indeed Indeed, if that had been even a minor factor tensions as aggravated and sustained as they by definition ‘‘restrictive’’, that is, providing in the chairman's reasons for suspending have been over the past couple of years. certain limitations on the number or types markup, I doubt very much that he would have While a certain amount of sparring between of amendments that could be offered. But the parties is unavoidable, healthy even, I while my friends on the other side of the included the very same 2-day rule in his sub- believe we have far surpassed the level of dis- aisle suggest that there amendments were sequent chairman's mark of September 19, agreement that characterizes a healthy de- arbitrarily rejected by the Rules Committee, 1994. mocracy. this simply isn’t true. As I indicated to the House in my opening I am most concerned with the element of Before condemning the Democratic Lead- remarks on this rule package for the 105th distrust that seems to pervade our daily ership as callous or insensitive to the ideas

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E100 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997 of the minority, one must examine the na- My proposal tries to balance the legitimate (2) after its second sentence, by inserting ture of the bills and the types of amend- need for flexibility in scheduling legislation the following new sentence: ‘‘Upon receipt of ments offered. Interestingly, of the ten ex- for floor action with the important right of all such views, the committee may (without amples cited by the Republican Leadership members to express their alternative views permission of the House) file the report until Task Force on Deliberative Democracy as and to review committee reports prior to de- midnight of the third such calendar day.’’. egregious examples of the Rules Committee bating a measure on the House floor. I don’t unreasonably denying amendments for floor believe the rule as it is presently written al- AMENDMENT TO H.R. 3801 OFFERED BY MR. consideration, the first five amendments lows us to use our time efficiently. Pres- MOAKLEY, SEPTEMBER 19, 1994 were not even germane to the measures ently, the three day period for filing views Strike all after the enacting clause and in- being considered. It is common knowledge begins to toll the day immediately following sert the following: that House rules and precedents require all the day on which a committee orders a meas- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. amendments to be germane to the text they ure reported and expires at midnight of the (a) SHORT TITLE.—This Act may be cited as would amend. Therefore, I see nothing unrea- third day. Since presently there is no auto- the ‘‘Legislative Reorganization Act of 1994’’. sonable about the Rules Committee’s deci- matic authority for a committee to file im- sion not to make these amendments in order. mediately upon the expiration of this third f Moreover, another two amendments cited by day, it may be another day before the com- RESPONSES TO QUESTIONS AND the Task Force would have been subject to mittee files its report, and yet another day other points of order. In sum, seven of the before the report becomes available in the COMMENTS ON HOUSE RESOLU- ten amendments cited by the Task Force document room. Only then will the three day TION 5, ADOPTING HOUSE RULES would not even have been made in order layover period for members’ review of the re- under an open rule. port begin. Thus, more than two weeks may HON. GERALD B.H. SOLOMON As for the restrictive rules that the Rules go by before a bill becomes available for OF NEW YORK Committee has reported to date, let me say floor consideration. this: the baseball season is only one month In the interest of both preserving this im- IN THE HOUSE OF REPRESENTATIVES old—just because the Tigers are now in the portant right and using our time well I Tuesday, January 21, 1997 lead doesn’t mean they’re going to win the would recommend the following: tighten the pennant. In other words, be patient. There is way in which the three day period for filing Mr. SOLOMON. Mr. Speaker, since the no rigid program governing the types of views is calculated by starting the clock House adopted House Resolution 5 on Janu- rules to be reported by the Rules Committee. tolling immediately upon a committee’s orary 7, 1997, establishing the standing rules of Rather, each rule will be determined on a dering of a bill reported. Often many valu- the House for the 105th Congress, several case by case basis. As you know, the Rules Committee re- able hours remain in a day on which a bill is questions and comments have been raised as cently reported open rules on three bills—no- ordered reported. Additionally, I would rec- to the application or interpretation of the new body should be surprised when such conten- ommend giving committees automatic au- rules. tious issues such as reconciliation and cam- thority to file until midnight of the third Let me first direct my colleagues to the de- day. paign finance are considered under struc- bate on House Resolution 5 in the CONGRES- tured rules—but as the House moves further These changes arguably would achieve the SIONAL RECORD of January 7, 1997, during into its legislative season I anticipate more dual goal of allowing for more efficient open rules being reported by my committee. scheduling of legislation and insuring an which additional materials were inserted in the Another change I would recommend relates adequate period for members to file and re- RECORD for the benefit and guidance of Mem- to the motion to recommit. The change view views. While the Committee on Rules bers and committees. The text of the resolu- would arguably strengthen the minority’s would still reserve its right to waive the tion itself begins at page H8 of the RECORD. ability to act as a constructive partner in three day layover requirement, I believe that My introductory remarks explaining the rules the development of legislation. I endorse a if these changes were to be made the need for package begins at page H10. Immediately modification of the plan proposed by Tom such waivers would be significantly reduced. Mann and Norm Ornstein in one of their ear- In fact, I think it is safe to assert that had after my remarks are a ``Highlights and Sec- lier reports to the Joint Committee. this proposal been in place earlier this Con- tion-by-Section Summary'' (pp. H11±12), fol- I propose amending House Rule XVI, clause gress, none of the waivers of the three day lowed by a more detailed ``Section-by-Section 4, so as to guarantee the minority a motion layover period granted by my Committee Analysis'' (pp. H12±15), and a letter from to recommit with instructions whenever a would have been necessary. Ways and Means Committee Chairman BILL special order reported by the Rules Commit- My final recommendation is that the ARCHER further explaining the more specific tee precludes the minority from offering House, in some manner, implement the Ox- definition of income tax rate increases con- amendments in the Committee of the Whole. ford-Union style debate program proposed by tained in House Resolution 5 with respect to This right would be subject to a couple of Norm Ornstein and Tom Mann. Such a pro- conditions. First, the motion would be guar- gram strikes me as a useful vehicle for con- the three-fifths-vote rule and the prohibition on anteed only if offered at the specific direc- ducting thoughtful, substantive, and bal- retroactive income tax rate increases (p. H15). tion of the Minority Leader or his designee. anced debate on important national issues. I have also included in the RECORD a press re- Second, upon receipt of the motion, the Unlike one-minutes or special orders which lease and table on comparative legislative Speaker would have the power to postpone tend to be one-sided monologues free of con- data for the 103d and 104th Congresses (pp. debate and votes on the motion and final test or rebuttal, such a program would allow H15±16); and a brief history of how the proc- passage for up to two hours. for a meaningful exchange of ideas between I consider these conditions to be reason- ess for adopting House rules at the beginning members and would serve as a valuable sup- of a Congress has evolved over the last cen- able as they would allow the minority a vote plement to our regular debate time on major on its position on major issues and at the legislation. tury (pp. H16±17). same time allow the majority a reasonable In closing, I would like to add that I agree Mr. Speaker, since the adoption of the rules amount of time within which to prepare its with the prevailing sentiment that proce- on January 7, I have: First, responded to two response to the minority’s alternative. Theo- dural or mechanical changes alone will not letters from colleagues regarding the ``truth-in- retically, limiting control of the motion to cure the ailments of this Institution. Attitu- testimony rule;'' second, responded to a letter recommit to the Minority Leader or his des- dinal change is as important an ingredient. I from the minority leader forwarded to my ignee would ensure that the motion would be am encouraged by the progress that is al- used in a serious, constructive manner. Rules Committee office by the Speaker; and ready being made in this area and hope that third, written to the Parliamentarian to further Members with fringe views would be unable we can sustain this spirit of cooperation to make frivolous motions. throughout the 103rd Congress. clarify the intent and application of the rules A third change I would recommend in- I again thank the members of the Joint that allows for exceptions to the 5-minute limit volves clause 2(l) (5) and (6) of House Rule XI Committee for this opportunity to testify be- in questioning hearing witnesses, copies of which respectively provide for a three day fore you today. I would be happy to answer period within which members may file sup- which have been sent to all committee chair- plemental, additional or minority views to any questions. men and ranking minority members. In addi- be included in a committee’s report, and an tion, I have inserted remarks elsewhere in this additional three day period for members to FROM MOAKLEY SUBSTITUTE FOR H.R. 3804, RECORD in response to Mr. DINGELL's inserted review the committee report before the AUG. 1, 1994 statement on the new rule on time allowed for measure is considered by the House. In his SEC. 112. AVAILABILITY OF LEGISLATIVE INFOR- filing views on committee reports. MATION. recent statement before the Joint Commit- Mr. Speaker, at this point in the RECORD, I (a) VIEWS.—Clause 2(l)(5) of rule XI of the tee, Mr. Solomon expressed concern that the include my exchange of correspondence with opportunity for members to review commit- Rules of the House of Representatives is tee reports was too often being waived due to amended— Representatives FROST and SKAGGS on the scheduling considerations. Let me say I (1) in its first sentence, by inserting ‘‘and ``truth-in-testimony rule''; the minority leader's empathize with Mr. Solomon and hope that including the day the measure or matter is letter to the Speaker on several provisions in my plan alleviates some of his concerns. approved’’ after ‘‘holiday’’; and the rules package and my response; and my January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E101 letter to the Parliamentarian on the rule allow- changes ‘‘of this magnitude,’’ and how Demo- this and other new rules as we prepare for ing for extended questioning of witnesses. crats did this, is both curious and well the 106th Congress. The materials follow: taken. I do not recall the proposal for dele- Sincerely, CONGRESS OF THE UNITED STATES, gate voting in the Committee of the Whole GERALD B. SOLOMON, HOUSE OF REPRESENTATIVES, ever being referred to the Rule Committee Chairman. Washington, DC, December 24, 1996. and yet it was included in your last Demo- Hon. GERALD B. SOLOMON, cratic House Rules package at the beginning HOUSE OF REPRESENTATIVES Chairman, Committee on Rules, The Capitol, of the 103rd Congress. On the other hand, the January 8, 1997. Washington, DC. Doolittle ‘‘Truth-in-Testimony’’ rule was re- Hon. GERALD B.H. SOLOMON, DEAR MR. CHAIRMAN: I am writing to ex- ferred to the Rules Committee and was pre- Chairman, Committee on Rules, press my opposition to the so-called ‘‘Truth sented to us by Rep. Doolittle on July 17, Washington, DC. in Testimony’’ amendment to the Rules of 1996—the first in a series of four hearings we DEAR MR. CHAIRMAN: I am writing to re- the House of Representatives. It is my under- conducted entitled, ‘‘Building on Change: quest that the Committee on Rules hold a standing that while this amendment was not Preparing for the 105th Congress.’’ (See pages hearing to take testimony and discuss the ef- included in the package of amendments to 29–33 of printed hearings) So, contrary to fect and purpose of section 10 of the H. Res. the Rules of the House for the 105th Congress your assertion that there has been no oppor- 5, adopting the Rules of the House of Rep- approved by the Republican Conference in tunity for comment, there has been plenty of resentatives for the One Hundred Fifth Con- November, it is currently under consider- opportunity dating back to the July 17th gress. ation for inclusion in that package. While I hearing. I’m only sorry you were not able to As you know, section 10, the so-called have not yet been provided with language of attend that hearing and therefore missed the ‘‘Truth in Testimony’’ provision, requires this or any other proposed amendment, I testimony and the opportunity to question any person appearing in a nongovernmental must register my strong opposition to in- Rep. Doolittle on his proposal capacity as a witness before committees of cluding such a potentially far reaching the House to include as part of her written As a result of some subsequent concerns statement a list of the amount and source of amendment in the Rules of the House with- expressed about the penalty in the Doolittle out providing those affected the opportunity all federal grants, subgrants, contracts, or resolution of expunging a non-complying subcontracts received during the previous to comment. witness’ testimony from the hearing record, Having served as Chairman of the Demo- three fiscal years by the witness or entities we dropped that provision before it was pre- she represents. cratic Caucus Committee on Organization, sented to the Conference and the House. Study and Review for 10 years, I am fully As I stated yesterday on the Floor of the aware that rules changes for a Congress are I appreciate your calling my attention to House, I have strong concerns about the ef- matters that are vetted through the party the David Skaggs letter (which was delivered fect and purpose of section 10 and regret that process. But it was my experience that seri- to us in the middle of our organizational it was adopted without the full and thought- ous and substantive changes to the oper- meeting yesterday) calling for a Rules Com- ful consideration made possible by commit- ations of the House of Representatives were mittee hearing to discuss the effect and pur- tee hearings. I believe this provision will only create an- given ample opportunity to be discussed and pose of the ‘‘truth-in-testimony’’ rule. other barrier to citizens exercising their analyzed within the Democratic Caucus. Had The simple purpose of the rule is public right to petition the government, in this an amendment of this magnitude been pro- disclosure of public funds received by an in- case the House of Representatives. In many posed during my tenure as Chairman of that dividual or organization so that Members and the public alike will have a better per- cases, this provision will also force organiza- Committee, I can assure you that I would tions to divert resources from productive have referred it to the Committee on Rules spective on a witnesses’ interests as they relate to the subject matter of a hearing. The work to the paperwork and administrative for consideration in the regular committee activities made necessary by the provision’s simple effect of the rule will be better-in- process. I urge you to do that in this in- requirements. formed committee members as they prepare stance. Again I urge the Committee on Rules to I cannot argue that substance of this pro- for and participate in their committees’ schedule a hearing to consider the effects of posal since I have not yet seen any language. hearings. Too often, such information is re- section 10 of H. Res. 5. But I do want to make a procedural case quested at a hearing, and witnesses do not Sincerely yours, have it readily available. Consequently, it is against including this amendment in the Re- DAVID E. SKAGGS. publican rules package on January 7. This is only supplied at a later date for the hearing record when it is too late to ask relevant a substantive matter and one that deserves COMMITTEE ON RULES, questions bearing on that information. full analysis and examination. I urge you, as HOUSE OF REPRESENTATIVES, Chairman of the Committee on Rules, to op- Madison, in Federalist 58 referred to the Washington, DC, January 9, 1997. pose including the amendment in the Repub- House’s ‘‘power over the purse,’’ as ‘‘the Hon. DAVID E. SKAGGS, lican rules package. most complete and effectual weapon with Longworth House Office Building, I appreciate your attention to this matter, which any constitution can arm the imme- Washington, DC. and with every best wish for a happy New diate representatives.’’ Certainly, in this re- DEAR DAVID: Thank you for your letter of Year, I remain gard, it is a legitimate function, indeed an January 8 urging that the Rules Committee Sincerely, obligation, of our committees to have a bet- hold a hearing to discuss the effect and pur- MARTIN FROST. ter understanding of how public funds are pose of the new ‘‘truth-in-testimony’’ rule. being expended—by whom and for what pur- The fact is that we did hold a hearing on COMMITTEE ON RULES, poses—especially as we continue to downsize July 17, 1996, at which the proposal was pre- HOUSE OF REPRESENTATIVES, the government and move towards a bal- sented by its sponsor, Rep. Doolittle, and Washington, DC, January 9, 1997. anced budget. Our hearing and oversight discussed. The testimony was offered as part Hon. MARTIN FROST, process is one of the best methods we have of our series of four hearings (at which you Rayburn House Office Building, for obtaining such information so that our testified) entitled, ‘‘Building on Change: Pre- Washington, DC. committees, and ultimately the Congress, paring for the 105th Congress,’’ from which DEAR MARTIN: Thank you for your letter of can effectively deliberate and make the best many of the rules changes adopted by the December 24 expressing your opposition to possible and most informed and prudent deci- House were initially proposed. the new ‘‘Truth-in-Testimony’’ rule, and for sions. The simple purpose of the rule is public raising the issue for discussion at our Com- disclosure of public funds received by an in- What would be the effect of non- or partial- mittee’s organizational meeting yesterday. dividual or organization so that Members compliance? As we explained in our section- You are correct that the proposed rule and the public alike will have a better per- by-section analysis of the rules package that change was not included in the package pre- spective on a witnesses’ interests as they re- was inserted after my floor statement on H. sented to our Conference on November 22nd. late to the subject matter of a hearing. The Res. 5 yesterday (Congressional Record, Jan. It was initially felt that the Leadership simple effect of the rule will be better-in- would simply urge committees to adopt it as 7, 1997, pp. 11–17), non-compliance would nei- formed committee members as they prepare a committee rule, since nothing in House ther prevent a witness from testifying, nor for and participate in their committees’ Rules would preclude that. However, during result in the testimony being stricken from hearings. Too often, such information is re- the discussion of the draft rules package at the hearing record. However, I think it could quested at a hearing, and witnesses do not the November Conference, several Members result in an objection to a unanimous con- have it readily available. Consequently, it is spoke-out in strong support for including a sent request that the written statement be only supplied at a later date for the hearing uniform disclosure requirement in House included in the hearing record, leaving only record when it is too late to ask relevant Rules. The Leadership subsequently agreed the oral summary of testimony actually pre- questions bearing on that information. with that recommendation and the provision sented as part of the official hearing record. Madison, in Federalist 58 referred to the was included in the package that was finally You can be assured that, just as we did House’s ‘‘power over the purse,’’ as ‘‘the adopted by the Conference on the morning of during the 104th Congress with respect to the most complete and effectual weapon with January 7th. rules adopted on opening day of that Con- which any constitution can arm the imme- Your point about the need to refer for gress, the Rules Committee will be conduct- diate representatives.’’ Certainly, in this re- Rules Committee consideration rules ing ongoing oversight of the operation of gard, it is a legitimate function, indeed an E102 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997 obligation, of our committees to have a bet- I would hope that you might consider re- ing the application of section 12 (‘‘Excep- ter understanding of how public funds are visiting these matters in light of minority tions to the Five-Minute Rule in Hearings’’) being expended—by whom and for what pur- objections. I am certain that such efforts of H.Res. 5, adopting House Rules for the poses—especially as we continue to downsize would enhance the spirit of bipartisanship 105th Congress. The purpose of this letter is the government and move towards a bal- and comity in the 105th Congress. to clarify the intent of that rule. anced budget. Our hearing and oversight Sincerely, Section 12 amends clause 2(j)(2) of House process is one of the best methods we have RICHARD A. GEPHARDT. Rule XI which previously provided that: for obtaining such information so that our ‘‘Each committee shall apply the five- committees, and ultimately the Congress, THE SPEAKER’S ROOMS, minute rule in the interrogation of witnesses can effectively deliberate and make the best HOUSE OF REPRESENTATIVES, in any hearing until such time as each mem- possible and most informed and prudent deci- Washington, DC, January 13, 1997. ber of the committee who so desires has had sions. Hon. RICHARD A. GEPHARDT, an opportunity to question each witness.’’ What would be the effect on non- or par- Minority Leader, The Capitol, The amendment adopted to that rule by tial-compliance? As we explained in our sec- Washington, DC. section 12 of H. Res. 5 provides that, ‘‘Each tion-by-section analysis of the rules package DEAR MR. LEADER: This to acknowledge committee may adopt a rule or motion per- that was inserted after my floor statement your letter regarding the rules changes con- mitting an equal number of its majority and on H. Res. 5 yesterday (Congressional tained in H. Res. 5. I have asked Rep. Gerald minority party members each to question Record, Jan. 7, 1997, pp. 11–17), non-compli- Solomon, chairman of the Committee on witnesses for a specified period not longer ance would neither prevent a witness from Rules, to review your comments to see if than 30 minutes,’’ and that, ‘‘A Committee testifying, nor result in the testimony being some accommodations can be made. may adopt may adopt a rule or motion per- stricken from the hearing record. However, I Regardless of the outcome of Chairman mitting committee staff for its majority and think it could result in an objection to a Solomon’s review and his recommendations, minority party members to question a wit- unanimous consent request that the written I sincerely hope that you and other members ness for equal specified period of time.’’ statement be included in the hearing record, of the Democrat leadership will do your ut- In the section-by-section analysis of the leaving only the oral summary of testimony most to see that the rules of the House are rules changes that I inserted following my actually presented as part of the official followed and that decorum is maintained. introductory remarks on H.Res. 5 (Congres- hearing record. Rest assured that the Republican leader- sional Record, January 7, 1997, pp. H12–15) it I do not think the requirement will, as you ship is committed to protecting the decorum is noted that, ‘‘That rule or motion could assert, ‘‘force organizations to divert re- of the House and the dignity of its proceed- permit designated majority or minority sources from productive work to the paper- ings. party member or staff to question witnesses work and administrative activities made Sincerely, for a period longer than their usual 5-minute necessary by the provision’s requirements.’’ NEWT GINGRICH, entitlement (p. H14, emphasis added).’’ The Any business or organization that does not Speaker. underscored words were intended to clarify have ready access to basic information on that the exception to the five-minute rule the source and amounts of its Federal grants COMMITTEE ON RULES, for extended questioning applies to only and contracts over the last three years is HOUSE OF REPRESENTATIVES, those members designated. It in no way is probably guilty of questionable or sloppy Washington, DC, January 16, 1997. meant to supplant the right of other com- bookkeeping practices, which in turn raises Hon. RICHARD A. GEPHARDT, mittee members to question witnesses for the question of whether they should be en- Minority Leader, The Capitol, five-minutes, though the extended question- trusted with expending taxpayer funds in the Washington, DC. ing period could occur before other members DEAR DICK: This is to acknowledge the first place. are recognized. You can be assured that, just as we did Speaker’s transmittal to me of your letter It is not the intent of the rule to permit a during the 104th Congress with respect to the expressing concerns about several of the motion that provides for further extended rules adopted on opening day of that Con- House Rules changes adopted on the opening questioning of the same witness after 60-min- gress, the Rules Committee will be conduct- day of the 105th Congress. utes of extended questioning has already You have asked the Speaker that we might ing ongoing oversight of the operation of been allowed. The 60-minutes should be the revisit these in light of minority objections, this and other new rules as we prepare for maximum limit on extended questioning of and in the spirit of bipartisanship and com- the 106th Congress. the same witness, whether by designated ma- Sincerely, ity in the 105th Congress. As I have already indicated in letter to jority and minority party members or staff, GERALD B. SOLOMON, in order to protect the rights of other mem- Chairman. both Martin Frost and David Skaggs with respect to the ‘‘truth-in-testimony rule’’ (one bers of a committee to exercise their rights to question a witness under the five-minute CONGRESS OF THE UNITED STATES, of those on your list), it is my full intention that our Committee will carefully monitor rule. HOUSE OF REPRESENTATIVES, The analysis goes on to indicate that: ‘‘A Washington, DC, January 9, 1997. the operation of all the new rules adopted in H. Res. 5 as part of our ongoing oversight re- motion under this House rule would not be Hon. NEWT GINGRICH, privileged for any member of a committee to Speaker, House of Representatives, sponsibilities over House rules and procedures. offer. Instead, it would be at the discretion Washington, DC. of the chair to recognize a member to offer DEAR MR. SPEAKER: Since floor procedures As you will recall, during the course of the such a motion.’’ However, it is not the intent yesterday limited our ability to have a full last Congress the Rules Committee reported of this rule that either a committee rule or debate on all of the Republican Conference’s modified versions of suggestions that were in motion allowing for such extended question- recommended rules changes in H.Res. 5, I am your minority opening day rules amending should be used solely for the purpose of writing to notify you of additional objec- ments relating to the gift rule and book ad- permitting such extended questioning only tions to certain provisions that our Leader- vances and royalties. Moreover, towards the of witnesses of the chairman’s or committee ship and minority members have put forth. end of the second session we held four hear- majority’s choosing. Just as the rule imposes Please note recommendations on the follow- ings on ‘‘Building on Change: Preparing for an equal time requirement for the parties’ in ing seven points: the 105th Congress,’’ at which we heard from In section 8(a)(2), strike the proposed new Members of both parties who had suggestions the extended period for questioning wit- subparagraph (2), providing that investiga- for further rules changes. Many of those pro- nesses, it is expected that the committee tive and oversight reports will be ‘‘consid- posals were incorporated in this year’s open- chair and/or committee majority would treat ered as read’’ in committee under certain ing day package. the minority fairly in allowing for extended circumstances, and redesignate accordingly; In summary, I fully intend to proceed on a questioning of a witness or witnesses of their Strike section 10, placing information bur- bipartisan basis as we monitor the effective- choosing, and therefore that such arrange- dens on non-governmental public witnesses ness of the rules changes and consider pos- ments could be worked out between the chair by requiring them to disclose federal grants sible adjustments, additions or deletions. I and ranking minority member in advance of and contracts they have received; welcome your continuing advice and sugges- a hearing. Strike section 12, creating exceptions to tions as we proceed with this effort. For example, if the majority wishes to the five-minute rule in hearings; Sincerely, apply the extended questioning rule to wit- Strike section 14, reducing the time allot- GERALD B.H. SOLOMON, nesses A and B, the minority should be al- ted for Members to file supplemental, minor- Chairman. lowed to apply the extended questioning to ity, or additional views; witnesses C and D, i.e., an equal number of Strike section 15, creating a slush fund for COMMITTEE ON RULES, witnesses of their choosing. That is not to committees; HOUSE OF REPRESENTATIVES, say that the minority should have a veto Strike section 17, permitting ‘‘dynamic Washington, DC, January 16, 1997. over extended questioning of witnesses A and scoring’’ estimates to be included in reports Mr. CHARELS W. JOHNSON III, B of the majority’s choosing simply because on major tax bills; Parliamentarian of the House, Office of the Par- the minority may not want to use their half In the last sentence of section 25, strike liamentarian, The Capitol, Washington, DC. of the time. ‘‘, or at the expiration of January 21, 1997, DEAR CHARLEY: It is my understanding In summary, the rule was designed to pro- whichever is earlier’’. that some questions have been raised regard- vide fairness to both parties, both in terms January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E103 of the time allowed for the extended ques- County will sponsor the Greater Miami Urban THE FUTURE OF EDUCATION IN tioning of witnesses, and in the determina- Peace Conference at the Wolfson Campus of AMERICA tion of which witnesses may be subjected to Miami-Dade Community College. such extended questioning. I hope this will help to further clarify the Inspired by Rotary International President HON. GERALD B.H. SOLOMON rule’s intent for any questions directed to Luis Giay, the conference will focus on solu- OF NEW YORK your office, and for the purposes of any com- tions to the problems of youth and violence. IN THE HOUSE OF REPRESENTATIVES mittee rules or motions developed to imple- Rotary seeks to identify effective programs Tuesday, January 21, 1997 ment this rule. which demonstrate results, but which could Sincerely, benefit from additional assistance to reach Mr. SOLOMON. Mr. Speaker, let me com- GERALD B.H. SOLOMON, mend to you the following article from an edi- Chairman. their full potential. Rotary's purpose is to go beyond merely examining problems. They torial in the Post Star newspaper in Glen Falls, f want to connect hundreds of Dade County Ro- NY. This article succinctly expresses my rea- PAYING TRIBUTE TO SARA AND tary volunteers with projects to stem youth vio- sons for calling for the abolishment of the U.S. SIMHA LAINER lence. Education Department. While this Department I commend the work of Rotary to construc- was created with a noble eye toward protect- tively address a matter of growing local and ing and advancing public education in this HON. HOWARD L. BERMAN country, in reality it has only created dubious OF CALIFORNIA national concern. It is easy to rush toward pu- nitive measures before providing positive role Federal mandates while siphoning scarce Fed- IN THE HOUSE OF REPRESENTATIVES eral dollars away from the students that truly Tuesday, January 21, 1997 models to those most in need. Rotary is as- sembling forces who have the ability to pro- need it. By creating an Office of Education to Mr. BERMAN. Mr. Speaker, I rise today to vide real solutions to a very real challenge. I continue to represent public school interests pay tribute to Sara and Simha Lainer, close am sure that my colleagues will join me rec- and allowing more parental involvement, stu- friends of mine for more than 40 years and ognizing the Dade County Rotary Clubs for dents will ultimately be much better served. people passionately dedicated to the welfare their endeavors. [From the Post Star, Glen Falls, NY] of the Jewish community of Los Angeles. This EDUCATION DEPARTMENT NEEDS TO BE year the couple are receiving the Lifetime Hu- f DISMANTLED manitarian Achievement Award from the West If you wonder what big idea Bill Clinton Coast Friends of Bar-Ilan University in Israel. TRIBUTE TO MRS. ISABEL ME´ NDEZ intends to ride into history, consider this I cannot think of two more deserving recipi- one: Education. ents. ´ Everybody agrees education is a wonderful HON. JOSE E. SERRANO thing, but increasingly, Americans fret Sara Lainer, a distinguished author of schol- OF NEW YORK arly articles, has been an active volunteer on about the quality of public schooling. The IN THE HOUSE OF REPRESENTATIVES issue of instructional quality has split the behalf of Hadassah, Pioneer Women, General educational establishment. On one side stand Israel Orphans Home, the Yiddish Culture Tuesday, January 21, 1997 votaries of the National Education Associa- Club, and many other organizations. She con- Mr. SERRANO. Mr. Speaker, I rise today to tion, which has worked long and hard to de- tinues to lecture in Hebrew and Yiddish to pay tribute to an outstanding Puerto Rican fine mediocrity down. On the other are devo- groups in Los Angeles, and she holds an hon- woman, Mrs. Isabel MeÂndez, who has dedi- tees of educational choice and home school- orary doctorate from the Hebrew Theological cated her life to taking care of others, espe- ing, programs designed to spare kids the College, Jewish University of America. Her travail of politically correct education. cially Hispanics in New York City. Enter President Clinton, promising to commitment to the intellectual and spiritual Mrs. MeÂndez was honored by the House of components of Judaism is extraordinary. bridge the chasm. In a recent speech to the Puerto Rican Cultural Heritage, known as ``La Democratic Leadership Council, he echoed Simha Lainer, who ran a successful real es- Casa de la Herencia Cultural PuertorriquenÄa,'' Americans’ apprehensions about the state of tate business in the San Fernando Valley, is on January 11 in New York City for her long- education: ‘‘We must dramatically reform a strong supporter of, and a dedicated volun- our public schools, demanding high stand- teer with, the University of Judaism, the Jew- time commitment to the advancement of the Hispanic community. ards and accountability from every teacher ish Community Foundation, the ADL, and and every student, promoting reforms like West Coast Friends of the Hebrew University. She was born in Yabucoa, Puerto Rico. In public choice, school choice and charter Anyone who cares about the Jewish commu- 1926, at the age of 17, she came to New York schools in every state. nity of Los Angeles owes a huge thanks to City. Since her arrival, she has fought every At the same time, he staked out new him. day to improve the living conditions of His- ground for Uncle Sam: ‘‘I am not for federal In 1989, the Lainers established the Simha panics and has helped them overcome the dif- government national standards. But I am for national standards of excellence and a means and Sara Lainer Fund for Jewish Education, ficulties that are a part of the experience of immigrating to a new land. of measuring it so we know what our chil- which has thus far awarded $290,000 in schol- dren are learning.’’ arships to 400 children around the city. I can In 1932, Mrs. MeÂndez was instrumental in Here is Bill Clinton doing what he does think of nothing more important than ensuring founding the first Hispanic Catholic Church, best: bending a conservative issue to liberal Judaism remains vibrant and alive in Los An- ``La Milagrosa Church,'' in El Barrio, east Har- ends. He has made it clear in subsequent geles. lem. Together with her husband, Tony talks that he wants to defend teachers Simha and Sara raised three sons, Mark, MÂ endez, who was the first Puerto Rican male unions, while creating a larger federal role in Nahum, and Luis, who have followed in the district leader of the Democratic Party, she determining what students should and tradition of their parents in working hard on fought tirelessly for the welfare of Hispanics in shouldn’t learn. That’s not an encouraging sign, given re- behalf of their community. I am indeed lucky the city. cent trends in government-sponsored in- to be good friends with all three, as well as In 1950, she founded the Puerto Rican As- struction. As Lynne Cheney has noted to their wives, Ellie, Alice, and Lee. sociation of Women Voters, which is still in ex- devastating effect, school textbooks today Mr. Speaker, I ask my colleagues to join me istence. Through this organization she as- subject students to politically correct non- in saluting Sara and Simha Lainer, whose tire- sisted in furthering the advancement of Puerto sense. Some standard history books, for in- less efforts to make this a better world inspire Rican women. Mrs. MeÂndez also served as an stance, mention Harriet Tubman more often us all. interpreter for 24 years, first as a volunteer than George Washington, Thomas Jefferson f and Robert E. Lee combined! and later on as an employee, at the New York Meanwhile, self-esteem programs assure HONORING THE ROTARY GREATER City civil court. students that accuracy isn’t everything in MIAMI URBAN PEACE CON- Through her community activism, she has mathematics: If you come close, that’s good FERENCE helped to ease the road for those who have enough. (Tell that to the Internal Revenue come after and who have embraced New York Service.) City as their new home. She is the widow of The President’s case for standards rests on HON. CARRIE P. MEEK Tony MeÂndez and the mother-in-law of State the beguiling but dubious notion that ex- OF FLORIDA perts know enough to set ‘‘proper’’ stand- Senator Olga A. MeÂndez. IN THE HOUSE OF REPRESENTATIVES ards. There are no data to support that Mr. Speaker, I ask my colleagues to join me Tuesday, January 21, 1997 claim, and considerable evidence that in recognizing Mrs. Isabel MeÂndez for her de- schools tend to thrive in direct proportion to Mrs. MEEK of Florida. Mr. Speaker, on Feb- votion to our community and for making all of parental involvement in school. In other ruary 8, 1997, the Rotary Clubs of Dade us Puerto Ricans and fellow Americans proud. words, mother and father know best. E104 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997

Clinton’s talk to the Democratic Leader- TRIBUTE TO BETTE JANE BILL RICHARDSON, as the President said, in ship Council framed the upcoming reform de- RODRIGUEZ announcing his intention to nominate him, also bate. If you want a larger federal role, you’re is one of our Nation's most prominent and ‘‘for’’ education; if you want decentralized control, you’re ‘‘against’’ standards that HON. GERALD D. KLECZKA proud Hispanic leaders. His example is one could guarantee excellence. OF WISCONSIN that reflects pride to that community and his Republicans ought to hop into the fray im- IN THE HOUSE OF REPRESENTATIVES heritage. mediately. The best way to protect the sovereignty of local systems is not to hand more Tuesday, January 21, 1997 In saluting our colleague as he embarks on a new set of challenges, I take pleasure in power to the Department of Education. Just Mr. KLECZKA. Mr. Speaker, I rise today to the opposite: The goals of excellence and pay tribute to my friend, Bette Jane Rodriguez, sharing with the House the following transition local sovereignty would best be served by who is being recognized by the city of Cudahy of an article that was published recently in the dismantling the department, and spinning German newspaper, Handelsblatt. Written by off the Office of Educational Research and on February 13, 1997, as she retired after 1 diplomatic and political correspondent Viola Improvement, which provides important and serving the Treasurer's Office for 33 ¤2 year. useful educational research. Throughout her long and dedicated term, Herms-Drath, this report makes plain the high Today, the federal government makes edu- Bette Jane has served as deputy treasurer to hopes America's allies have for the role BILL cators do everything from diagnosing sexual several city treasurers. Her leadership while RICHARDSON will play. abuse and distributing condoms to serving as assisting the government of the city of Cudahy [From the Handelsblatt, Dec. 17, 1996] guardians for messed-up kids. At the same to run more effectively and efficiently should time it has heaped new duties on educators, be commended. CLINTON’S NEW U.N. AMBASSADOR SEEN AS it has clamped down on innovations Wash- UNORTHODOX DIPLOMAT ington bureaucrats don’t like. This happened Ms. Rodriguez has served on the Cudahy to Detroit when local authorities tried to set Area Business and Professional Women's With the appointment of the long-time up all-boys schools to deal with their very Club since 1973. She has also served on the Congressman from New Mexico, Bill Rich- real problems. Cudahy Democratic Unit by providing assist- ardson, as Washington’s new U.N. Ambas- By shutting down the education depart- ance on several local and Presidential elec- sador, U.S. President Bill Clinton has ment while saving its research office, Con- tions, as well as on the Cudahy Municipal achieved two successful political moves. gress could give Americans just what Bill Credit Union and on the Cudahy Historical So- First, he has placed a politically correct His- Clinton is promising—a revitalized sense of panic on his team and, second, he has ap- local control, aided by a federal clearing- ciety for the last 10 years. Bette Jane Rodriguez will truly be missed in pointed a creative diplomat with style and a house that could offer useful data about great deal of tact. Clinton has no doubts that what does and doesn’t work in the class- City Hall, but knowing her as I do, she will Richardson will be able to represent U.S. in- room. only become more active in the community fol- terests and ideals at the U.N. and in the f lowing her retirement. Therefore, it is with world. great pleasure I join Bette Jane's coworkers, TRIBUTE TO JON A. KASTRUP Richardson first came to public notice the city of Cudahy, and many friends in honor- through his exploits in the political arena, ing her many years of service and contribu- especially because of his spontaneous actions HON. ILEANA ROS-LEHTINEN tions to the city of Cudahy. for the release of American citizens being OF FLORIDA Best wishes, Bette Jane, and on behalf of held by totalitarian countries, from North IN THE HOUSE OF REPRESENTATIVES the residents of the city of Cudahy, I offer a Korea to Bangladesh, Cuba and Iraq. Just a Tuesday, January 21, 1997 heartfelt ``thank you'' for your unselfish work week ago this son of a Mexican mother and over the years and for a job well done. an American father was in the Sudan, nego- Ms. ROS-LEHTINEN. Mr. Speaker, I would f tiating an arrangement for the release of two like to recognize the personal achievement of Red Cross pilots and an Australian nurse. one of our community's most talented and CONGRESSMAN BILL RICHARDSON: Richardson’s extraordinary diplomatic mis- dedicated young men, Mr. Jon A. Kastrup. ON TO DIPLOMACY FOR HIS sion began by chance when he was partici- Jon's own success is sweeter than most, as COUNTRY pating in Pjonjang in the discussion on nu- he not only had to overcome the regular clear disarmament. At the same time, a U.S. stresses of daily living but, also had to accom- HON. GEORGE P. RADANOVICH helicopter was shot down over Korea. Rich- plish this while being profoundly deaf. ardson took it upon himself to see to the re- OF CALIFORNIA lease of the pilots. Many people like Jon would surrender to IN THE HOUSE OF REPRESENTATIVES their condition, but Jon, never questioning his In 1993 this cosmopolitan liberal Democrat resolve, earned dual degrees in the fields of Tuesday, January 21, 1997 helped Clinton with negotiations on the mechanical engineering and law and now Mr. RADANOVICH. Mr. Speaker, a recent North American Free Trade Agreement holds the distinction of being one of only four event affecting this House leaves us with (NAFTA) and in efforts to achieve as balanced a budget as possible. In opposition to functionally deaf attorneys in the United mixed emotions. We are losing one of our the Senate Foreign Relations Committee, he States. After his graduation from the Brigham Members, but the service to which he is going opposed the embargo on Havana after the Young University's J. Reuben Clark School of is greatly important to our Nation. Cubans shot down two unarmed American Law, Jon served as a legal intern for the U.S. Congressman BILL RICHARDSON has been planes and Clinton approved the step for tac- Court of Federal Claims in Washington, DC. nominated to be America's next Ambassador tical reasons and extended it to other coun- Previously, Jon lent his valuable services to to the United Nations. In that role, he will tries, to the great irritation of his European the California Center for the Law and Deaf in serve in the President's Cabinet and be a prin- trading partners. Oakland, CA where he served as a legal as- cipal in the guidance and implementation of This Democrat who is also popular with sistant and law clerk, and in the State of Utah our country's foreign policy. the Republicans now has the task of explain- as a court appointed special advocate for the I salute President Clinton for his wise choice ing the U.N. operations to the Senate com- Guardian Ad Litem Program. of BILL RICHARDSON. We need someone with mittee which must confirm his appointment. Jon has also served in several notable ca- his firmness and no-nonsense approach to Although the U.S., as a founding member of pacities for private and public sector institu- represent our interests at the United Nations. the U.N., has always recognized the prin- tions, including the Department of Human De- All of us are familiar with BILL RICHARDSON'S ciples of U.N., now Richardson must contin- velopment at the Rochester Institute of Tech- record as a hostage negotiator in troubled ually preserve U.S. prerogatives. The Clinton nology, where he served as a student devel- world areas. He showed on several occasions Administration has always, on the one hand, advocated strengthening the U.N. through opment assistant. He was also an engineering that he can identify critical issues and find the reform measures, but on the other hand, has aide for the U.S. Navy and previously served means of resolution. certainly made it clear that for its own eco- as an engineer drafter for the Unidynamic My familiarity with BILL RICHARDSON comes nomic and security interests, it intends to Corp. of St. Louis, MO. Jon has excelled in not alone from being aware of his creative dip- rely on its own strengths and alliances. everything he has set out to accomplish. De- lomatic strategies in North Korea, Iraq, and In contrast to the rather aggressive behav- spite his physical limitations, he never once Sudan. I had the good fortune to serve with ior of his predecessor, Madeleine Albright, relented in his ambition to succeed. Jon has him on the Resources Committee and on its who has now been elevated to the position of proven that through steadfast dedication and a National Parks, Forests and Lands Sub- Secretary of State, Richardson has shown deep belief in oneself, `ìf you can dream it, committee, where he was the ranking Demo- himself to be a flexible negotiator, a clever you can do it.'' crat. diplomat and a reliable go-between. January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E105 PAYING TRIBUTE TO MR. WADE I hope my colleagues will join me in extend- California Association of Physically BRUNSMANN ing congratulations to the Pikesville Volunteer Handicapped's Humanitarian of the Year Fire Company in celebrating its 100-year his- Award; in 1990, he was named Kiwanian of HON. JERRY F. COSTELLO tory in Baltimore County, and in thanking the Year (San Fernando); 2 years later he re- OF ILLINOIS these volunteers for contributing to the growth ceived the J. Leo Flynn Citizen of the Year IN THE HOUSE OF REPRESENTATIVES and safety of the Pikesville community. Award from the San Fernando Chamber of Tuesday, January 21, 1997 f Commerce. Of all his civic and professional duties, I Mr. COSTELLO. Mr. Speaker, I want to ask FLORIDA DEPARTMENT OF know that nothing gives Irwin more pleasure my colleagues to join me in paying tribute to HEALTH INAUGURATED than being Santa to many underprivileged kids Mr. Wade Brunsmann, who was selected by every year at the PCYCC Christmas party. He the East-West Gateway Coordinating Council HON. ILEANA ROS-LEHTINEN is every bit as happy to see the kids as they in the St. Louis Metropolitan Region to receive OF FLORIDA are to see him. their Achievement Award in 1996. IN THE HOUSE OF REPRESENTATIVES I ask my colleagues to join me in saluting I have known Wade for many years, through Tuesday, January 21, 1997 Irwin Rosenberg, whose tireless work in the our joint service on the St. Clair County Board. community is a shining example to us all. I am Wade is a dedicated public servant; he is a Ms. ROS-LEHTINEN. Mr. Speaker, I would proud to be his friend. Navy veteran of World War II, and has served like to take this opportunity to express my best f on the county board since 1954, except for an wishes to Secretary James Howell, M.D. MPH, 8-year gap. He is also an outstanding family and Executive Administrator Annie R. THANK YOU DR. MALEEHA LODHI man, married and the father of four grown chil- Neasman, R.N., M.S., as they assume the dren and five grandchildren. He is the retired leadership of the State of Florida's new De- HON. MATTHEW G. MARTINEZ owner/operator of Brunsmann's Heating and partment of Health. OF CALIFORNIA Refrigeration Service. The Florida Legislature voted in 1996 to cre- IN THE HOUSE OF REPRESENTATIVES Wade Brunsmann has been a leader in the ate the Florida Department of Health as a sep- St. Clair County region. He currently serves as arate entity. The legislature charged the Sec- Tuesday, January 21, 1997 chairman of the County Board's environmental retary and staff with promoting and protecting Mr. MARTINEZ. Mr. Speaker, I rise on be- committee, and has served as such for the the health and safety of all Florida residents half of my colleagues and myself to place in past 7 years. He has been an aggressive and visitors in partnership with county govern- the RECORD a bipartisan statement of appre- leader on zoning, land use, and landfill issues ments. ciation for the outgoing Ambassador of Paki- for all citizens. He also serves as a volunteer On February 3, Secretary Howell and the stan, Dr. Maleeha Lodhi, who is returning with Belleville Area College's Programs and Florida Department of Health staff in Dade home shortly after completion of her tenure as Services for Older Persons, is a member of County will gather at Miami Dade Community Ambassador to the United States of America. St. Theresa's Catholic Church and is an active College Wolfson Center with their local part- Ambassador Lodhi worked with dedication and outstanding member of the Democratic ners to inaugurate the department. and resolve to strengthen the traditional friend- Party. I congratulate them on this day as they em- ship between the United States and Pakistan, Of course, for all of these contributions and bark on their mission to make Florida paving the way for greater cooperation be- his overall dedication to serving the public, healthier. I know that under the leadership of tween our two nations. Through her untiring East-West Gateway awarded him with their Secretary Howell and Administrator Neasman, efforts, significant progress has been made to- Achievement Award. I fully agree, and ask my their dedicated staff and their community part- wards redefining United States-Pakistan rela- colleagues to join me in congratulating him on ners will rise to the many challenges ahead. tions in the post-cold-war period. this fine recognition. f In our interaction with Ambassador Lodhi, f we always found her to be a highly persuasive PAYING TRIBUTE TO IRWIN advocate of her country in a forthright and ob- HONORING PIKESVILLE ROSENBERG VOLUNTEER FIRE COMPANY jective spirit. We admire her commitment to democracy, freedom, and human rights, quali- HON. BENJAMIN L. CARDIN HON. HOWARD L. BERMAN ties that created a common bond with us. OF CALIFORNIA Both the United States and Pakistan have OF MARYLAND IN THE HOUSE OF REPRESENTATIVES been served with distinction by Ambassador IN THE HOUSE OF REPRESENTATIVES Tuesday, January 21, 1997 Lodhi and we wish her the very best for the Tuesday, January 21, 1997 future. Mr. CARDIN. Mr. Speaker, I rise today to Mr. BERMAN. Mr. Speaker, I rise today to f honor the Pikesville Volunteer Fire Company pay tribute to Irwin Rosenberg, who for the on its 100th anniversary. past 8 years has played Santa Claus at the TRIBUTE TO TWO IMPORTANT It all began on February 4, 1897 when a Pacoima Community Youth Culture Center's AMERICAN PATHOLOGY ORGANI- group of local citizens met for the first time to Christmas party. I have not met many Santas ZATIONS discuss the need for organized fire protection, named Rosenberg; then again, I have not met they met at the Odd Fellow's Hall. During this many people like Irwin. A successful business- HON. GERALD D. KLECZKA meeting, the group nominated several names man, Irwin somehow finds the time to remain OF WISCONSIN for the fire company, The Pikesville Volunteer active in many organizations and on behalf of IN THE HOUSE OF REPRESENTATIVES Fire Company won the election by an over- numerous causes. Like few others, he is there Tuesday, January 21, 1997 whelming margin of 23 to 6. The following for his community. year, a fire hall was built and a community Irwin is irrepressible. Not only does he im- Mr. KLECZKA. Mr. Speaker, I rise today to wide dedication celebrated its opening. merse himself in outside activities, more often pay tribute to two outstanding organizations, Known as the company of first, the Pikes- than not he ends up in a leadership role. For the College of American Pathologists (CAP) ville Volunteer Fire Company is a leader in example, he is the past president of the Gra- and the American Society of Clinical Pathol- volunteer fire protection. Its members are nada Hills Little League; past president and ogy (ASCP). This year, CAP will be celebrat- made up of both civilian and military person- past chairman of the Government Relations ing its 50th Anniversary, and ASCP will be nel. In fact, each year, a memorial service Committee, San Fernando Chamber of Com- celebrating its 75th Anniversary. honors members of the Fire Company who merce; commissioner of the Los Angeles Dr. Rob Mckenna, who is the President of served their country as well as their commu- County Private Industry Council; and senior ASCP, and Dr. Ray Zastrow, the current CAP nity. vice-chairman of the board of directors of New President and a good friend, have led these Today, their membership roll is over 150 (a Directions for Youth. There is hardly a sector organizations with the help of their many third of whom are active service) which proof the San Fernando Valley that has not been members through a long history of protecting vides enough manpower to keep the Pikesville the recipient of Irwin's time and efforts. patients by providing high quality laboratory Volunteer Fire Company responsive to the In honor of his many charitable and civic and patient care. ASCP is the largest organi- thousands of calls each year from the commu- contributions, Irwin has been the recipient of zation of pathologists and medical tech- nity. numerous awards. In 1989, he was given the nologists in the world, and CAP is the largest E106 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997 organization of board-certified members in the Franz Joseph issued a decree that there was the U.S. in even larger numbers, and increas- world. to be no Jew-bashing in his domain. Mama ing percentages of the total number of these These organizations and the members who was always right. immigrants hail from parts of the world that I’ve visited Ellis Island a number of times, practice pathology and laboratory medicine did not participate in large-scale immigra- both before and after its renovation and des- tion when my parents came here, including provide a substantial contribution to medical ignation as a federal museum. Like many Africa, Asia and Latin America. science and patient care through accurate others whose parents or grandparents came These immigrants, like their prede- medical test results that enable physicians to through the Great Hall, I was elated when cessors—my parents among them—add to the make accurate diagnoses and recommend ap- given an opportunity by the new museum to richness of this country. They give us the propriate treatments. mark my parents’ passage with metal mark- benefit of their intelligence, their labor and CAP started as an outgrowth of ASCP and ers. their children. In the words of Martha Stew- Now, when I go to the island, I visit those art, ‘‘It’s a good thing.’’ they have worked closely ever since. Their markers. I touch my lips with my finger-tips common bond has been a symbol to both pa- My father never learned to write anything in a symbolic kiss and then touch my par- besides his name in English, although he tients and fellow professionals of their dedica- ents’ names inscribed on the metal plates. could read. He worked hard all of his life, tion to professional excellence. My parents, who were marvelous people generally holding two jobs to support his Congratulations, CAP and ASCP, on your with very few worldly goods and a very lim- family. He retired from his small fur coat many years of committed service to the field ited education, nevertheless made it, raising manufacturing business at 75, but, bored, he of medicine. three children—my brother, Harold, the eld- went to work for Bloomingdales’ fur coat est; my sister, Pat, the youngest; and me— f storage six months later. and becoming part of America’s middle class. When elegant ladies asked him to store My mother died at age 62, my father at age ‘‘IMMIGRANTS ARE NEW YORK their coats, he would ask them to write their 87. Mother lingered in excruciating pain be- name and address on a ticket. He would in- CITY’S GREATEST ASSET’’ fore her death, an experience that has made variably look at the ticket and say, ‘‘I see by me believe in physician-assisted suicide. I your address that my son is your congress- will never forget her screams of unending HON. PETER T. KING man.’’ pain as she pleaded with me, ‘‘Eddie, please OF NEW YORK It made no difference if these women lived let me die.’’ And I, in tears, replied ‘‘Mother, IN THE HOUSE OF REPRESENTATIVES in Brooklyn or Jersey City. My father saw you’re getting well,’’ when I knew that she me as representing the entire United States. Tuesday, January 21, 1997 was not. My father, a gentle and beloved man with We should acknowledge the enormous con- Mr. KING. Mr. Speaker, throughout his an enormous number of friends, died easily, tributions of immigrants, embrace them and years as U.S. Congressman, mayor of the city quickly and painlessly. We thanked God for warmly welcome them. Immigrants are New of New York and as mayor for life of the city allowing him to pass over to the next world York City’s greatest asset, today and for the of New York, Ed Koch has secured for himself in such peace. We were not so appreciative of future. Updating the philosophy of the good Kaiser the title ``The Voice of Reason.'' Mayor Koch the painful passage of our mother. I’ve always been bewildered by the Catho- Franz Joseph, ‘‘Let there be no immigrant- has a unique capacity to find common sense bashing in the U.S.’’ solutions for the problems that plague our solic acceptance of pain in the onset of death. If I understand the concept correctly, the f ciety. Even more importantly, he is not afraid pain of one dying individual is in some mys- to be controversial. He is a true New Yorker tical way a great benefit for humanity and HONORING ROSALIE KUNTZ OF who knows how to get to the heart of the provides enormous good for others. PASADENA, TX problem. This quality was most recently typi- Two princes of the Catholic Church—Jo- fied in his recent column entitled `Ìmmigrants seph Cardinal Bernardin, whom I met briefly HON. KEN BENTSEN are New York City's Greatest Asset'' which and admired, and Terence Cardinal Cooke, with whom I had a warm friendship—both OF TEXAS appeared in the New York Post on January IN THE HOUSE OF REPRESENTATIVES 17. I commend this column to my colleagues embraced death and pain. My mother told me early on, ‘‘Ed, don’t Tuesday, January 21, 1997 because it touches so meaningfully on the mix in someone else’s religion.’’ So I won’t. issue of immigration which is being exploited While I do not fear death, having had a full Mr. BENTSEN. Mr. Speaker, I rise to honor and demagogued by too many politicians life, I do ask God to allow me to pass over one of my constituents, Rosalie Kuntz of today. without pain when the time to go arrives. Pasadena, who is a civic leader in her com- Why am I dwelling on the lives of my par- IMMIGRANTS ARE NEW YORK CITY’S GREATEST munity and a pioneer for women in the insur- ents? Because recently there has been a ASSET ance industry. Mrs. Kuntz is active in a wide spate of stories on immigrants, particularly (By Ed Koch) range of community activities and served as those who came to New York in the last 10 Ellis Island is holy ground: My parents years. the first female president of the Texas Asso- landed there separately in the early 1890s. The City Planning Commission issued a re- ciation of Life Underwriters. The following arti- Before 1924, there were no limits on the num- port entitled ‘‘Annual Immigrant Tape Files, cle from the January 8, 1997, Houston Chron- ber of people permitted to enter this coun- 1990-94, U.S. Immigration and Naturalization icle describes her many accomplishments and try. If you survived the voyage in steerage Service Population Division.’’ I won’t list its honors: and did not suffer from a contagious disease, many conclusions — all favorable — concern- HER JOY IS IN THE JOURNEY—ROSALIE KUNTZ you gained entry. ing the impact of legal immigrants on the REVERED BY PASADENA COMMUNITY My parents and millions of others came City of New York. But these conclusions re- here looking for a better life. They sought inforce the need to fight the mean-spirited (By Pat Swanson) economic opportunity and freedom from efforts by Congress to punish immigrants. Willingness and commitment have not anti-Semitism. They did not believe the It isn’t wrong to require sponsors of immi- only earned Rosalie Kuntz success, but re- streets were paved with gold. But, like mil- grants to fulfill their legal obligations to spect in her profession and in the Pasadena lions of others, they did believe America support those they brought here who other- community she calls home. would be free of the daily cursing they en- wise would become public charges, as the Kuntz is celebrating 41 years in the insur- dured from their non-Jewish neighbors in new law mandates. ance business. And, at age 72, she continues Poland. And they believed America would But it is wrong to deny legal immigrants to be heavily involved in civic activities for offer them and their children a future denied who arrived before this law went into effect the Pasadena-area community. them elsewhere. the SSI coverage and welfare benefits they’d Kuntz and her husband Gerald (Jerry), a Several years before my father’s death, my been receiving. The new laws stripping legal retired surveyor for Shell Oil Co., have lived sister and her son Jared sat down with him immigrants of welfare inclusion should have in Pasadena 48 years. The couple are owners and taped some of his early memories. She been prospective and not retroactive. of the Kuntz Insurance Agency. Their chil- asked, ‘‘Daddy, what did you do for fun in Recently I read the comments of Massa- dren, Rita, Linda and Kyle have given them the winter?’’ He replied, ‘‘Mostly we went in- chusetts Gov. William Weld, a Boston Brah- eight grandchildren. The Kuntz’ are long- side to get warm.’’ min, on the value to our country of the im- time members of St. Pius V Catholic Church. My mother’s home in Poland was part of migrant: ‘‘I have long said that in the 1920’s Scott Loomis, an insurance man who has the Austro-Hungarian Empire. I recall ask- and 1930’s the best Americans were Euro- known Rosalie Kuntz for 30 years, said, ‘‘Ro- ing her, when I was quite young, ‘‘Mama, peans, and principally European Jews who salie is one person who could handle herself why do you always refer to Kaiser Franz Jo- had reason to know what made this country in a man’s world before it was fashionable. seph as the ‘good Kaiser Franz Joseph?’ ’’ She special. In the 80’s, the best Americans were While some men were intimidated by Rosa- replied ‘‘Sonny, because he didn’t kill the Asians, for the same reason.’’ I silently lie, others wanted her on a project because Jews.’’ cheered. they knew she would do a good job.’’ For years, I always wondered if she was According to the City Planning Commis- Parker Williams, president of San Jacinto right. After her death, I read that Kaiser sion report, legal immigrants are coming to College South, said, ‘‘Rosalie is known by January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E107 her actions. She is the type of person that 1968. She was elected to the Pasadena Hall of ‘‘Rosalie is my dear friend,’’ Nina Osborne doesn’t demand respect, but people respect Fame in 1988 for the same reason. said. ‘‘When she was inducted as president of her. She is one smart cookie. She has a According to Stella Walters, owner of the Deer Park Chamber of Commerce, she ar- bright mind and a deep faith. Bruco, Inc., ‘‘Rosalie and I have been in- ranged to have us seated with her family. ‘‘Rosalie is the type of person who believes volved with a lot of the same organizations She is just like family to us, too.’’ you can do anything you want to do if you for 30 years. We also are good personal Billie Fife, former Civil Defense Director want to do it badly enough. You know she is friends. We have worked together on every- for the City of Pasadena and administrative always there if you need her. She gives back thing, including the Pasadena Chamber of assistant to past Pasadena Mayor Clyde to the community what she takes out.’’ Commerce, Optimists, Red Cross, YMCA, Doyle, said of her friend, ‘‘Her interest in Kuntz was the first female president in the American Heart Association, to name a few. you continues long after you take out a pol- 59 year history of the Texas Association of ‘‘She has more energy in her, for her age, icy. There is no monetary reward. Life Underwriters that has a membership of than anyone else I know. She and Jerry have ‘‘She is just there for her clients. She is 8,300. been married 48 years. She is a good mother. there for your needs no matter when she last She served in that capacity for the 1984– I doubt there is anyone in business in Pasa- saw you—a couple of days ago or 15 years 1985 term. During that term, Kuntz received dena who does not know her. She is just ago. She is just like that little rabbit with national honors at the National Life Under- amazing.’’ the battery. I believe her joy is in the jour- writers Conventions for Public Service and As a member of the San Jacinto Day Foun- ney. She will never retire.’’ Membership achievements for the State of dation, Kuntz chaired the first Strawberry Texas and Pasadena Association of Life Un- Festival in Pasadena in 1974. She served as f derwriters. an advisory board member in 1986. CELEBRATING THE 100TH ANNI- Prior to her presidency in the organiza- She was presented the 1992 Lone Star tion, Kuntz served as T.A.L.U. Vice-Chair- Award for volunteer service in the commu- VERSARY OF THE BELLEVIEW man of Public Service and Public Service nity. She was a director of the South Hous- Chairman. ton Chamber of Commerce from 1978 until She is a life member of the Texas Leaders 1980. HON. C.W. BILL YOUNG Round Table and a charter member of its Kuntz has been Director and Membership OF FLORIDA Lone Star Leaders. Kuntz has served in all Chairman of the Deer Park Chamber of Com- IN THE HOUSE OF REPRESENTATIVES offices of the Pasadena Association of Life merce since 1991 and is the immediate past Underwriters, including president. president of the organization. Tuesday, January 21, 1997 One of Kuntz’s most memorable experi- Kuntz was the first woman to be elected Mr. YOUNG of Florida. Mr. Speaker, one of ences was in 1983. As past president of president of the Pasadena Chamber of Com- Women Life Underwriters Conference, Kuntz the great privileges of serving from the 10th merce, and currently serves as a member of Congressional District of Florida is to rep- was one of 50 women invited to be a luncheon the organization’s Cultural Affairs, Voice of guest of President Reagan in the White the Chamber and Governmental Affairs Com- resent one of our Nation's landmark hotels, House. mittees. the Belleview of Belleair, FL, which celebrates Kuntz was born in Houston. After she and She also was chairman of the Pasadena its 100th anniversary later this month. Not only Jerry moved to Pasadena in 1948, Rosalie as- Chamber’s New Member Orientation Com- is it world renowned as a tourist destination, sumed the position of assistant manager at mittee during the 1990–1991 and 1992–1993 but it is listed on our National Registry of His- the Pasadena Bowling Center working for years. Charles (Monty) Manoshagen. toric Places. From 1968 to 1996, Kuntz has been a direc- ‘‘Monty left the bowling center to go into Henry B. Plant, the railroad magnate who tor of the American Heart Association, Pasa- the insurance business, and was also respon- became known as one of Florida's greatest dena Unit. She served as chairman of the sible for getting me into it. He and his wife developers, opened the doors to his elegant Heart Business Drive for 12 years, and was came over to the house one night in 1956 with chosen Volunteer of the Year in 1987, with a hotel named the Belleview on January 15, a bunch of books. He threw the books on the grant named in her honor. 1897. Built on a bluff that overlooks Clear- coffee table and said, ‘Rosalie, you’re going She was appointed to serve on the Advi- water Harbor, the original 145-room hotel into the insurance business.’ I told him I quickly became recognized as a favored win- didn’t know a thing about insurance. He sory Board of the Battleship Texas from 1983 said, ‘I’ll teach you.’ And, he did. I will finish to 1989, by Texas Governor Mark White. ter retreat. my 41st year in the business today, Jan. 8, Kuntz is past president of the Soroptimist Later, as golf courses and swimming pools 1997,’’ Kuntz said. International of Pasadena, and has served on were added, the hotel became uniquely mod- ‘‘When I went into the business, there the advisory board of The Rose, a Texas- ern for its time. In addition to serving its weren’t many women in the insurance busi- based, non-profit organization dedicated to guests, the hotel was also the location for the ness. It was very difficult at first because breast cancer screening since 1987. She also has served as a member of the Rehabilitation Belleair post office and fire station. While the women were not accepted in the insurance hotel ownership changed and the railroad cars field, just like the real estate business. Foundation since 1984. ‘‘Now, women are building up in the real Additionally, Kuntz has been a director of left the siding, the importance of the Belleview estate business and also in the insurance the former Barbour’s Cut Seaman’s Center to the area did not wane. In fact, during World business,’’ Kuntz said. since 1991. The facility is now the Lou War II, the hotel was leased to the U.S. Army ‘‘I had some good friends and good teachers Lawler Seaman’s Center. Air Corps to serve as the auxiliary barracks for to teach me the business, and I went on from She is past director of the Texas Society of MacDill and Drew Fields in Tampa. there. One doesn’t do anything by them- the Prevention of Blindness; the recipient of Several years later, the hotel, now with the 1975 Distinguished Service Award from selves. They always have someone that will more than 500 rooms, reopened as a resort help them. the Pasadena Jaycees; 1969 chairman of the ‘‘I was very fortunate in having Mr. Pasadena Drug Abuse Committee; vice-chair- and began a new chapter that led to its being Manoshagen to be around to help me along. man of the Committee for the National qualified for a listing in the National Register He kept up with me as long as he lived. (He Olympic Girls Volleyball Team and past of Historic Places on March 7, 1980. I was died about four or five years ago.) He would vice-chairman and member of the Pasadena privileged to have been a part of that program, always call me each year and say, ‘What is City Beautification Commission. and it is a special honor for me to be able to your goal for next year?’ And every goal I As a longtime member of St. Pius V Catho- salute the Belleview HotelÐnow the Belleview told him I had set, I made throughout the lic Church, Kuntz is a past secretary of the MidoÐon this its 100th anniversary. Diocese of Galveston-Houston Board of Edu- years. The Belleview has always been known for ‘‘It is a great profession for women. And, it cation; the St. Pius Finance Committee and is the greatest career anyone could ever get past member of the St. Pius V Church Parish its hospitality and its graciousness. It has into, any type of insurance business really, Council. hosted countless numbers of dignitaries, con- but specifically life and health,’’ Kuntz said. For 25 years, Kuntz also served as a volun- ventioneers, and others who wish to enjoy its Jerry and Rosalie’s secretary, Jannie teer coach for the St. Pius V Catholic girls golf course, its pools and sunshine, its cuisine, Pugh, get much of the credit from Kuntz. softball and volleyball teams. and its spa and fitness center. Today its ‘‘Jerry helps me an awful lot. So does my According to Bud Osborne, former owner of guests are no less important than those who secretary, Jannie, who has been with me al- Osborne-Apple Ford, ‘‘Rosalie is a vibrant were greeted by Henry B. Plant, and as we most 20 years. She is just like a member of get-up-and-go person. She always bought look to the new year and the 21st century, I the family. They are behind the scenes, but cars from us and insures our whole family. they sure do help a lot,’’ said Kuntz. We like to kid her and tell her we sent all congratulate the Belleview Mido on its 100th ‘‘We have worked together so long, we are her kids to college. She comes by at least anniversary and I thank the management and more like friends,’’ said Pugh. once a month to talk to us. She is just a staff for their work in preserving this magnifi- For her services to the community, Kuntz wonderful person. We think a lot of Jerry, cent structure, its history, and contributions to was chosen Pasadena Citizen of the Year in too.’’ the Town of Belleair and to Pinellas County. E108 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997 A TRIBUTE TO THE SAGINAW Efficiently providing the best public serv- government, and to develop responsible lead- NEWS ice at the lowest possible cost to the tax- ership. payers. INTERNATIONAL ISSUES High-quality representation for all seg- HON. DAVE CAMP ments of each community. On international issues, The News sup- OF MICHIGAN Progressive, professional management at ports: IN THE HOUSE OF REPRESENTATIVES county, city and township levels. A foreign policy that stresses the desire of Planning for development of human and the United States to live in harmony with Tuesday, January 21, 1997 physical resources in awareness of the con- all nations; that recognizes the right of all Mr. CAMP. Mr. Speaker, I rise today to call stant challenge for fresh approaches. peoples to peaceful self-determination; that my colleagues' attention to an editorial in the A strong central urban area serving the en- encourages the continued expansion of free- tire community. dom in all nations; that advocates non- Saginaw News. To open the New Year, the Maximum cooperation among all govern- violent resolution of disputes; that recog- editors published a set of principles. These ments, with consolidation of municipal serv- nizes that remaining threats to our freedom, principles remind us that our local commu- ices to the greatest possible extent. and others’, require strong alliances to deter nities are the wellspring of America's great- Recognition that racial and ethnic diver- aggression even as we welcome the reduction ness, and an endless source of inspiration for sity is a strength on which to build toward of the danger of war. our national leaders. the common goals that unite us. Free and fair trade as the interdependent Put forth in these principles are many of the Strong human-relations efforts to assure economies of the world evolve in new direc- driving forces behind the work we do in Con- dignity and equal opportunity for all. tions. Care for our streets and homes, because a gress and the vision we share for our country: The right of all people to achieve and community can be no better than its neigh- maintain a decent standard of living, to de- lower taxes, a smaller government, and eco- borhoods. velop and prosper. nomic opportunity for all Americans. I believe School systems that provide a comprehen- these principles serve as goalposts for the sive education. PERSONAL LIFE 105th Congress as well. I urge my colleagues Strong academic and behavioral standards Finally, The Saginaw News believes there to read the News' basic principles as we begin for students; quality instruction and adminis more to the quality of life than our per- work in the new Congress. istration; and equitable public financial sup- sonal relationships, jobs and leisure activi- port adequate to achieve those goals. ties. The News believes in encouraging peo- Mr. Speaker, at this time I would like to sub- The free-enterprise profit system as that ple to look beyond themselves. We believe mit the editorial from the January 1, 1997 edi- which most fully ensures economic liberty that life becomes more satisfying and mean- tion of the Saginaw News: and a high standard of economic life to busi- ingful when we care about all our neighbors ISSUES AND OPINIONS: OUR BASIC PRINCIPLES ness, industry and employees. and the community of which we all are a The principles a newspaper holds may Expansion of job opportunities, and diver- part. often be obscured by the rush of day-to-day sification of the economic base, in recogni- events. But we think it’s important for read- tion of the serious challenges of constantly f ers to know that our views of those issues changing times. are guided by a set of fundamental beliefs. Workplace policies respecting the rights of IN HONOR OF THE CONCORD HIGH That’s why The Saginaw News each year employees, management—and the public. SCHOOL CRIMSON TIDE MARCH- publishes a statement of the principles on STATE ISSUES ING BAND which it intends to base editorial-page com- On state issues, The News supports: ments over the days and months to come. A fair system of taxation to maintain effi- Each matter on which we express our opin- cient, quality state services at the lowest HON. CHARLES F. BASS ion is reviewed and judged on its own merits. possible cost. OF NEW HAMPSHIRE As circumstances change, they may prompt Achievement of an economic climate con- IN THE HOUSE OF REPRESENTATIVES a fresh look at our own ideas. ducive to retaining existing industry and di- But the constant process of review and versifying Michigan’s economic base. Tuesday, January 21, 1997 judgment that leads to editorial opinion Preservation of Michigan’s natural beauty rests on a firm foundation. Some issues are and resources while balancing the legitimate Mr. BASS. Mr. Speaker, I rise today to pay transitory; others, more fundamental to our needs of the state’s agriculture, other eco- tribute to the Crimson Tide Marching Band of lives and our society, bear repeated atten- nomic institutions and population. Concord High School in Concord, NH. The tal- tion. Recognition that the auto industry re- ents of this 120-piece band, under the direc- While the thoughts here are general ex- mains the region’s and state’s economic tion of Bill Metevier, were recognized by the pressions of ideas and ideals, they help deter- mainstay. Presidential Inaugural Committee, leading to mine our approach to the people, events and Swift and fair administration of justice. an invitation to perform in the Inaugural Pa- proposals that shape our life. Respect for the law by citizens—and of citi- Our basic goal is to speak in which we per- zens by the law and those sworn to enforce rade in our Nation's capital on January 20, ceive to be the best interests of our readers. it. 1997. Editorials, while based on reporting and Political leadership, at the state level and Concord High School has one of the best analysis of news events and developments, in our representation at the national level, marching bands in all of New England. These express a viewpoint. So we expect disagree- that responds to the needs of the state and young musicians earned the wonderful oppor- ment. If we stimulate independent thought its people. tunity to perform in front of the President and and discussion, we believe we have achieved NATIONAL ISSUES one of our major purposes whether or not our the First Lady, as well as the entire Nation words have been persuasive. On national issues, The News supports: watching on television. But we believe we have an obligation to A limited government under which politi- The city of Concord embraced the Crimson seek to persuade. A newspaper has a respon- cal power rests in the wisdom of the gov- Tide Marching Band, as individuals and local sibility to its community to be, as best it erned, and the rights of the people to control their own destinies, through their represent- companies raised over $20,000 to help pay for can, not only its voice to the world, but its the band's trip to Washington, DC. The Con- interpreter of that world; to be its advocate atives. Strong defense of the Bill of Rights as the cord Schools Friends of Music deserve much and defender, and sometimes its critic and unique section of a unique Constitution on counselor, always toward the benefit of its credit for leading the fundraising effort to allow which rests preservation of our most fun- citizens. these students to enjoy an opportunity that will We acknowledge that is a very large re- damental individual liberties. be remembered for a lifetime. A decent respect for the financial resources sponsibility indeed. We welcome any and all I know that the parents and families, the of our citizens, expressed through restraint suggestions from our readers on how we can in taxation and spending. teachers, students and staff of the Concord better fulfill it. We don’t seek to act in place Policies encouraging the opportunity to School District, and the entire state of New of public opinion, but to give the public an seek and find employment for all who desire Hampshire are exceedingly proud of the ac- opportunity to expand on its own beliefs. it. That cannot happen, though, without mu- complishments of the Crimson Tide Marching A strong, efficient defense, essential amid tual understanding. Band. a changing world’s twists and turns. We hope this statement of the principles of Mr. Speaker, I ask all of my colleagues to Safeguarding the national environment The Saginaw News will further that under- join me in congratulating the musicians of the consistent with economic stability and standing. growth. Concord High School Crimson Tide Marching LOCAL ISSUES Maintaining the strength of political par- Band for participating in a memorable and his- On Saginaw-area issues. The News sup- ties as American institutions best able to toric occasion, the 1997 Presidential Inaugural ports: build citizen interest and involvement in Parade. January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E109 RECOGNIZING THE GENEROSITY USC history, Anthony Davis and Charles Inter-Denominational Theological Center in At- OF ALLEN LEEPA White, attended San Fernando High. Fifty lanta, GA. He is the widower of Julia Rollins, years earlier, in 1925, San Fernando produced with whom he had two children, Cecilia and HON. MICHAEL BILIRAKIS its first championship football team. Other Metz Rollins, and is the grandfather of three. OF FLORIDA sports fared well; the school has produced Mr. Speaker, I ask my colleagues to join me IN THE HOUSE OF REPRESENTATIVES champions in baseball, track, and basketball. in recognizing Rev. Joseph M. Rollins, Jr. for San Fernando High School today has many his lifelong commitment to his ministry and for Tuesday, January 21, 1997 reasons to be proud. The school commonly his community activism, which has so well Mr. BILIRAKIS. Mr. Speaker, I rise today to graduates 675 seniors out of a class of 700, served all of us countrymen. recognize the extraordinary generosity of two and is virtually free of the crime, drugs, and wonderful people who live in my Ninth Con- gangs that unfortunately plague many urban f gressional District in Florida. Allen Leepa and high schools. I have attended several events his wife Isabelle have donated a $2.15 million at the school, and have always admired the HONORING THE ‘‘LOVE YOUR endowment and a multimillion dollar art collec- spirit of its students and the commitment of its NEIGHBOR’’ CAMPAIGN tion to be housed in a new museum at the faculty and staff. Tarpon Springs campus of the St. Petersburg I ask my colleagues to join me in saluting HON. CARRIE P. MEEK Junior College in Tarpon Springs, FL. San Fernando High School, an excellent insti- OF FLORIDA Mr. Leepa has said that `àrt is a vehicle to tution with a proud history. Congratulations to IN THE HOUSE OF REPRESENTATIVES promote education,'' and his gift will certainly all on this special anniversary. benefit not only the students and faculty of the f Tuesday, January 21, 1997 college, but the residents of Florida's suncoast Mrs. MEEK of Florida. Mr. Speaker, I rise as well. TRIBUTE TO REV. JOSEPH M. ROLLINS, JR. today to offer my congratulations and support The college will be building the Leepa/ for the ``Love Your Neighbor'' campaign that is Rattner Museum of Fine Arts, which is to ´ sweeping south Florida. honor Mr. Leepa and his late stepfather, Abra- HON. JOSE E. SERRANO The ``Love Your Neighbor'' campaign is ham Rattner. The museum will house 150 OF NEW YORK dedicated to promoting the use and spirit of works by Mr. Leepa, an abstract artist, and IN THE HOUSE OF REPRESENTATIVES the phrase ``Love Your Neighbor'' in oral and 20th century modernists including Georges Tuesday, January 21, 1997 written communications to make Miami and Rouault, Hans Hoffman and Henry Moore. the world a better place; work towards reduc- Two works by Pablo Picasso will also be in- Mr. SERRANO. Mr. Speaker, I rise to pay tribute to Rev. Joseph M. Rollins, Jr., who was ing stress and improving our mental health; re- cluded. duce suffering, violence, and crime by becom- A resident of my birthplace in Tarpon honored on January 18 for his long and fruitful career as a community activist and pastor of ing considerate, respectful, and caring towards Springs for 14 years, Dr. Leepa studied art in one another; and identify south Florida as a Chicago, New York, and Paris at the Saint Augustine Presbyterian Church, at 838 East 165th Street in my congressional district, community that cares for all people regardless Sarbonne. He has taught at several fine uni- of race, ethnicity, religion, or social status. versities around the country, and he has pub- the South Bronx. Three years ago, Metropolitan Dade County lished three books about modern art. Reverend Rollins, a third generation Pres- embraced the ``Love Your Neighbor'' cam- Mr. Speaker, art means different things to byterian minister, will be retiring as pastor of paign. Since that time, over 750,000 ``Love different people. However, it does serve as an the church at the end of this year after 24 Your Neighbor'' bumperstickers have been outlet for the creative side of all of us. years of service. The tribute in his honor, enti- distributed, including 16,000 purchased by the Throughout history, the expressions of tal- tled ``This Is Your Life'', highlighted his tireless Metro-Dade police department and 250,000 ented artists have contributed to a greater un- work in the fight for civil rights and his dedica- distributed by Dade County Public Schools. derstanding of our society and of ourselves. tion to the service of his fellowship and com- The Miami-Dade Public Libraries distribute As a result of Dr. Leepa's generosity and munity. ``Love Your Neighbor'' bookmarks, the phrase kindheartedness, Floridians will be able to Reverend Rollins was born in Newport appears on the side of many Metro-Dade enjoy the finest in art right in the heart of Flor- News, VA, in 1926. He is the great grandson Transit buses, and a billboard flashes the sign ida's suncoast. I ask my colleagues to join me of a former slave, Mrs. Clements, who gained at Miami International Airport. in thanking Dr. Leepa and wishing the Leepa/ her freedom at the age of 11. Reverend Rol- The newly-elected mayor of Metropolitan Rattner Museum all of the best in the future. lins holds a degree from Johnson C. Smith Dade County, Alex Penelas, has endorsed a f University, in Charlotte, NC, an institution which was formerly associated to the Pres- week of activities for February 9±15, 1997, CONGRATULATIONS TO SAN byterian Church. In 1954, Reverend Rollins or- and Governor Chiles has already proclaimed FERNANDO HIGH SCHOOL ganized the Trinity Presbyterian Church in Tal- that week as ``Love Your Neighbor'' week in lahassee, FL. south Florida. Even Kenny Rogers Roasters HON. HOWARD L. BERMAN A man of tremendous faith, he was among has become involved in the campaign, carrying the message in all of their franchises. OF CALIFORNIA the first who believed in peaceful dissent as a Other corporations have donated space on IN THE HOUSE OF REPRESENTATIVES catalyst of equal rights for all people regardless of color. In 1955, he was involved in the 600 billboards, and are involved in producing Tuesday, January 21, 1997 organization of the first bus boycott in Talla- a music video and a public service announce- Mr. BERMAN. Mr. Speaker, I rise today to hassee, right after the arrest of three students ment to be aired on local television. pay tribute to San Fernando High School, from Florida A & M University. Reverend Rol- ``Love Your Neighbor'' was started by Jim which this year is celebrating its 100th anni- lins was among those who marched with Mar- Ward, Dade County's Human Resources di- versary. I know of few high schools in south- tin Luther King, Jr., during the civil rights rector. Mr. Ward is an ex-police officer, having ern California with such a long and rich his- movement. protected and served the people of Jackson- tory. In 1963, he came to New York City and ville, FL for 17 years. He moved to south Flor- One way to judge a school is by its alumni. served as associate executive for the Com- ida 17 years ago, to Miami's great benefit. For Using that criterion, San Fernando High mission on Religion and Race for the Pres- the last 3 years he has worked tirelessly to School receives high marks. For example, byterian Church. In 1968, he became the ex- promote the ``Love Your Neighbor'' campaign, Hawley Bowlus, the man who supervised the ecutive of the National Committee of Black watching it grow from one man's idealistic construction of the Spirit of St. Louis, Charles Churchman, an ecumenical movement. dream to the massive campaign it has be- Lindbergh's plane, was a graduate of San Fer- He was also a member of the National come, spreading throughout south Florida and nando High. Another alumnus, Denny Crum, is Presbyterian Black Caucus, and served in even as far as Macon, GA. today one of the top college basketball coach- many community organizations, including Mr. Speaker, Dade County and the city of es in the country. A third, Jimmy Velarde, is a Community Board #3, the South Bronx Lead- Miami owe a great debt of gratitude to Jim four-time Emmy winner and producer of shows ership Forum, and 163 Improvement Council, Ward for the ``Love Your Neighbor'' campaign. such as ``Culture Clash.'' all three in the Bronx. I wish him every success in spreading his The school has also had its share of sports Reverend Rollins has received two honorary message throughout our community and our glory. Two of the greatest running backs in degrees from University of Dubuque, IA and country. E110 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997 CONGRATULATING THE CITY OF kets, the international environment remains as implement economic development policies, en- ELGIN, IL complex and as dangerous as ever. courage free trade, and to make a renewed United States foreign policy continues to commitment to civilian authority, human rights, HON. J. DENNIS HASTERT face complex and ever changing challenges and social justice. OF ILLINOIS from Bosnia to China, from terrorism to the This is not to say that all is well in the hemi- IN THE HOUSE OF REPRESENTATIVES stability of the global economy, from Palestine sphere. Lingering problems associated with to Northern Ireland. drugs, illegal immigration political corruption, Tuesday, January 21, 1997 But while U.S. policymakers within the ad- arms competition, and the strength of the Mr. HASTERT. Mr. Speaker, I rise today for ministration and the Congress struggle to re- peso, temper the euphoria of the success two reasons. First, to congratulate Money solve the most difficult and dangerous of these story. Beyond those endemic problems, which Magazine on its 25th anniversary, but also to issues, we are ignoring one of the most dra- must be addressed primarily by the nations of commend the magazine for adopting the city matic success stories of the post-cold war pe- Latin America themselves, nagging questions of Elgin, IL and beginning a year-long project riod. And the irony of it all, is that this transi- arise regarding the future of the new democ- to enhance the personal-finance knowledge of tion is taking place right in our own backyard racies, NAFTA, fast track, and Cuba. Also, to the city's residents. of the Western Hemisphere. a lesser, but nevertheless important degree to Mr. Speaker, the city of Elgin, in my 14th The evolution of the nations of Latin Amer- many in the United States are issues regard- District of Illinois, was chosen for this project ica to democratic governments, market econo- ing intellectual property, patent, and copyright because it is truly a microcosm of our Nation. mies, and open societies has been perhaps violations, the environment and labor stand- A city with an industrial heritage that has seen the most overlooked event since the fall of the ards which must be addressed. a surge in suburban growth in recent years, Berlin wall. The foreign policy agenda for the Western Elgin is also home to several of the Nation's Despite the direct impact events in Latin Hemisphere is large and laden with both largest firms which have experienced strong America have on the United States in terms of promise and problems. And while these issues export sales growth. trade, narcotics trafficking, and immigration, may not seem as important as issues facing In the coming year, Money Magazine, in U.S. policymakers, including the Congress, this Nation elsewhere, I believe we would be conjunction with Elgin Community College, will have often, although not entirely, turned an making a tremendous mistake if we did not provide free financial seminars for Elgin resi- uninterested eye south of our borders and take advantage of the positive signs and dents. In addition, a dozen Elgin families will have failed to take advantage of the enormous events emerging from the hemisphere by ac- be highlighted in a series of articles dealing potential for peace, political stability, and eco- tively engaging our neighbors to the south in with family financial concerns and innovative nomic opportunity these changes are bringing a renewed partnership for peace, stability, and ways of addressing those concerns. The about. economic development. project kicks off on January 29, 1997 with a The resolution of the crisis in Haiti, the re- This will be the thrust of the subcommittee's ceremony at Elgin High School, to be attended cent peaceful elections in Nicaragua, and the work and I look forward to getting on with the by former President and Mrs. George Bush. signing of the peace accords in Guatemala, job. It is significant to note that while Money ending 35 years of confrontation, clearly ar- f Magazine could have celebrated its 25th anni- gues that the transition to peace, cooperation, versary quietly, and without fanfare, the pub- and the democratization of the entire hemi- TRIBUTE TO KENT SWANSON, JR. lisher and editors of the magazine have in- sphere, although sometimes rocky, is in its stead decided to mark this occasion by assist- final stages. The economic miracles taking HON. ROBERT L. EHRLICH, JR. ing this community and its residents with their place in Argentina, Brazil, and Chile are a OF MARYLAND financial planning. This action deserves our credit to the genuine commitment of those IN THE HOUSE OF REPRESENTATIVES governments and peoples to take their place commendation and our thanks. Tuesday, January 21, 1997 Mr. Speaker, I also congratulate the city of as regional role models. Elgin, its citizens, and civic and business lead- Unfortunately, these stories are going large- Mr. EHRLICH. Mr. Speaker, today I rise to ers, on its selection for this worthy project. ly unnoticed unappreciated in the United pay tribute to a heroic young man whose life Elgin is an outstanding community, and one I States. ended tragically and prematurely, Kent Swan- am proud to represent in this House. Latin America is a success story which the son, Jr. f United States should be celebrating by pursu- Kent Swanson was raised in Phoenix, MD, ing a more engaged foreign policy designed to where his parents still live, and graduated in LOOKING TO THE WESTERN support the peace process, promote continued 1989 from Dulaney High School in HEMISPHERE political stability, renew old friendships, cul- Cockeysville. He attended Lewis and Clark tivate new ones, and lend strong support to College in Portland, OR, receiving a degree in HON. ELTON GALLEGLY regional economic development and free mar- biology in 1995. OF CALIFORNIA ket economies. Kent had a lifelong love of the outdoors. IN THE HOUSE OF REPRESENTATIVES Like many, though, I fear that the momen- Upon graduating from high school, Kent trav- tum achieved thus far by the nations of Latin elled to the Andes, where he climbed his first Tuesday, January 21, 1997 America could be stalled unless the United 20,000 foot mountain. His experiences in the Mr. GALLEGLY. Mr. Speaker, today, I offi- States reenergizes its efforts to provide strong majestic Pacific Northwest, however, defined cially became the chairman of the Subcommit- leadership throughout the region. Confronting the course of his life. tee on Western Hemisphere of the Inter- no major conflict or problem in the region, While in college, Kent joined the Portland national Relations Committee. I am looking U.S. policy seems to lack clarity or coherence Mountain Rescue Squad. This enabled him to forward to working with my colleagues, both which could lead to a further decline in our use his love of the mountains to help others. Republican and Democrat, on the subcommit- ability to influence events in the region. He used his skills, his good judgement, and tee as we begin a very exciting and challeng- There can be no doubt that economic his intimate knowledge of the often treach- ing period in which we will review our relations growth in the region is the key to strengthen- erous mountain terrain to rescue skiers and with our partners in the hemisphere. ing democracy, ensuring long-term political climbers lost or stranded in the mountains. The end of the cold war and the movement stability, and reducing poverty. The 1994 Sum- On one occasion, Kent and his team braved toward democracy and economic reform in mit of the Americas held great promise for the freezing rain to reach three stranded col- Russia and central Europe held great promise critical areas of trade and economic develop- leagues. Such acts of heroism became routine that the world would enter a period free of su- ment. The momentum created there must be in Kent's life. While a member of the ski patrol perpower rivalry, a lowering of the nuclear renewed and sustained. of Mammoth Mountain, a popular resort near threat, and an all-around feeling that peace But leadership requires a better knowledge Los Angeles that handles 15,000 skiers a day, and political stability would prevail throughout and understanding of the nations of the hemi- he personally treated or rescued an estimated the world. sphere and the great strides made thus far. 3,000 injured skiers during one season. Despite the expectations that evolutionary U.S. policy must look forward and should be Kent was known for his expertise as a changes in Europe would serve as a model for based, not on what has happened in the past, mountain climber as well as for his bravery. a greater global commitment to open soci- but what can happen in the future if we work He spent his summers working at the Amer- eties, the promotion of democracy, and the with the nations of the hemisphere in a coop- ican Alpine Institute in California, where he de- development of strong economies and mar- erative partnership to strengthen democracy, veloped a guide and instruction manual for the January 21, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E111 14,494-foot Mount Whitney. ``He had all the Dr. King's life, and unfortunately his vicious TRIBUTE TO THE VOLUNTEERS OF qualities that go into making a great teacher murder, remind us that we must continually TABERNACLE TOWNSHIP and guide,'' one of his supervisors said. ``His work and, if necessary, fight, to secure and clients liked him because of his teaching skills protect our freedoms. Dr. King, in his courage HON. JIM SAXTON and his wonderful companionship.'' to act, his willingness to meet challenges, and OF NEW JERSEY On January 11, Kent Swanson, Jr. died in a his ability to achieve, embodied all that is IN THE HOUSE OF REPRESENTATIVES helicopter crash in British Columbia. Typically, good and true in that battle for liberty. Tuesday, January 21, 1997 Kent was en route to an avalanche rescue The spirit of Dr. King lives on in many of the class. This young man died as he livedÐa Mr. SAXTON. Mr. Speaker, I rise today to citizens in communities throughout our Naiton. pay tribute to the residents of Tabernacle hero. It lives on in the people whose actions reflect He leaves behind his parents, Kent Sr. and Township, NJ at the time of their second an- the spirt of resolve and achievement that will nual Tabernacle Volunteer Appreciation Din- Tricia Swanson; his maternal grandfather, help move our county into the future. In par- Robert A. Bishton; and host of aunts, uncles, ner. ticular, I would like to recognize several distin- It would be difficult to name, in the context and cousins. He also leaves behind a lot of guished individuals from Indiana's First Con- people who might not be alive today without of this extension of remarks, all those worth- gressional District, who, in the past year and while organizations whose members are being his heroic efforts. My sympathy goes out to in their own ways have, have acted with cour- the Swanson family during this sad time. As honored. That one community supports such a age, met challenges, and used their abilities to myriad of organizations, which run the gamut they mourn his death, I hope they will take reach goals and enhance their communities. pride in his life. from religious, civic, athletic, public safety, educational, community support, and political f Mr. Jack Parton, director of the United Steelworkers of America, District 7, Mr. Eric groups, is testament to its citizens. TRIBUTE TO ARTHUR H. BILGER Mason and Mr. Michael Krueger, both grad- On February 2, 1997, special recognition uates of Portage High School, led a will be given to the Tabernacle Township PTA, prodiversity rally in Portage, IN, last May to Inc. at the time of its 75th anniversary. This HON. HENRY A. WAXMAN association of parents and educators has OF CALIFORNIA peacefully, but forcefully, counter a march by the Ku Klux Klan. Their efforts sent a strong been active in local schools since 1921. IN THE HOUSE OF REPRESENTATIVES and clear message to members of the KKK, Through its provision of books, school equip- Tuesday, January 21, 1997 as well as members of our communities and ment, scholarships, family activities, after- Mr. WAXMAN. Mr. Speaker, I ask my col- citizens throughout the country, that ethnic, ra- school child care, and summer recreation pro- leagues to join me in recognizing Arthur H. cial, and religious hatred will not be tolerated. grams, this organization has proven its worth Bilger for his great contributions to the non- The counter-rally that they developed and car- for three-quarters of a centuryÐquite an profit House of Justice of Bet Tzedek Legal ried out was an overwhelming success. It gen- achievement. Services of Los Angeles. erated enormous support from religious, labor, I extend my congratulations to the PTA's Bet Tzedek Legal Services is one of the business, and civic groups throughout the re- members, past and present, as well as to the leading poverty law centers in the country. gion. The courage of these men should be many selfless volunteers who will be honored Thousands of indigent, elderly, and disabled held up as an example to all that, through for their commitment to their community. They deserve our praise and thanks. individuals benefit each year from the free thoughtful, united action, the values of human f legal services provided at Bet Tzedek's head- rights that we all cherish canÐand mustÐbe quarters in the Fairfax District of Los Angeles, maintained, even in the face of ignorance and HOMELESS IN THE HEART the Valley Rights project in North Hollywood, hatred. and the 32 senior centers throughout the Los I would also like to recognize Janee Bryant, HON. WALTER H. CAPPS Angeles area. Bet Tzedek is open to all who Brandon Crayton, Brandie Frifth, LaKisha OF CALIFORNIA pass through its doors and even makes house Girder, Damara Hamlin, Markika Harris, IN THE HOUSE OF REPRESENTATIVES calls to the ill and frail. Its services are vital Rasheedah Jackson, Leah Johnson, Jacleen Tuesday, January 21, 1997 and they are not otherwise readily available to Joiner, Ayashia Muhammad, Clinton Pearson, those who need them. Kala Simmons, Sheria Smith, David Suggs, Mr. CAPPS. Mr. Speaker, I want to bring to Arthur H. Bilger has been a constant be- DeKeyur Summer, Jennifer Thompson, Steph- my colleagues' attention an essay written by a liever in Bet Tzedek's mission to be a place of anie Thompson, Courtney Williams, and Joey constituent of mine that illustrates the best of refuge and assistance to Los Angeles' most Willis. the human spirit. Torin Rea, his mother, and needy residents. As one of the most dedicated his younger brother found themselves home- These outstanding individuals are the mem- and successful fundraisers for Bet Tzedek, his less and living in a shelter in my hometown of bers of the Tolleston Junior High School team, efforts have allowed this generous organiza- Santa Barbara when he was in his teens. But which won the Indiana State Bowl Champion- tion to continue to operate at full capacity instead of giving up, he and his family worked ship in spelling. This wonderful accomplish- while maintaining its promise of services at no hard to make a better life for themselves. ment is a reflection of their hard work and cost to its clientele. We owe Arthur H. Bilger Torin's eloquent and moving essay details dedication to study. Their scholastic effort and a debt of gratitude for his vision, his devotion, his struggle of dealing with the horrible toll rigorous approach to learning have made and his support of this most worthy cause. homelessness can take on a family. But more them the best in the State. They have brought I am delighted to bring Mr. Bilger's tireless importantly, he describes how, faced with ad- pride to themselves, their families, their and selfless work on behalf of Bet Tzedek versity, a family can pull together and over- school, and their communities. Their success Legal Services to the attention of my col- come even the toughest times, becoming even is also a credit to the outstanding ability and leagues and ask you to join me saluting him closer in the process. leadership of their teacher-coaches, Mrs. Mar- for his many important contributions. When the word homeless is mentioned, one garet Hymes, Mrs. Paula Thompson, Mrs. f quickly pictures a poor soul huddled in a Sandra V. Alfred, Ms. Dionne Moore, Mrs. box, eating the few scraps of food they can VISCLOSKY HONORS RESIDENTS Janice L. Williams, and Mrs. Juanita Vincent. find. Or a person too mentally imbalanced to OF NORTHWEST INDIANA ON The Tolleston students, who won the State lead a productive life in society, wandering MARTIN LUTHER KING DAY Bowl Championship in spelling, as well as down the street babbling in words only he or their gifted teachers, deserve recognition as she can understand. In Jo Goodwin Parker’s short story, ‘‘What is Poverty?’’, Parker tells true role models in our State. HON. PETER J. VISCLOSKY her graphic and incisive experience with OF INDIANA Though very different in nature, the achieve- homelessness. She accounts the times when she had nothing to eat for herself, only her IN THE HOUSE OF REPRESENTATIVES ment of all of these individuals reflects many of the same attributes that Dr. King possessed children. The hard nights on the street with Tuesday, January 21, 1997 and the values he espoused. Like Dr. King, the cold biting at her side, with no ability to warm herself, she curls up with her children Mr. VISCLOSKY. Mr. Speaker, as we cele- these individuals saw challenges and rose to in a cardboard box. The painful feeling of not brate the birth of Dr. Martin Luther King, Jr. the occasion. They had goals and worked to being able to feed her children runs deep into today, and we reflect on his life and work, we achieve them. Mr. Speaker, I urge you and my the heart. This mother had no means of sup- are reminded of the challenges that democ- other colleagues to join me in commending porting herself or her children, but she val- racy poses to us and the delicacy of liberty. their initiative, resolve, and dedication. iantly continues to mother them in the best E112 CONGRESSIONAL RECORD — Extensions of Remarks January 21, 1997 way she can. This woman felt so much hu- so when friends came over, I shamefully told coach, and friend to thousands of Escondido's mility and shame throughout her life, it is them to wait outside while I grabbed my children. His life exemplifies the hard work, amazing she has any courage or strength left things. They all asked where I lived and I dedication, and concern for our children that at all. Although her account was sad and full told them I lived in an apartment complex, of despair, not all stories of homelessness are ashamed to tell them the truth. I had no we expect from our Nation's teachers. as shocking. Many families live in the same extra money to spend on fun, as most of it I submit for the RECORD the following article predicament with shelter. I have been a was used on gas and maintenance on my car which chronicles Mr. Disney's life and achieve- homeless child who lived in a community to get to school. My whole existence as a ments. shelter. I too have shared the same fear and carefree teenager became the duty of a fa- [From the North County Times, Jan. 15, 1997] sadness, the shame of society, and the gained ther to my brother, a confidant to my moth- ‘‘COACH’’ DISNEY, 62, DIES AFTER COLLAPSING strength of independence from surviving the er, and a starving student living in shame of loss of my home. his existence. (By L. Erik Bratt) My social status throughout my life has As time slowly passed by we became accus- ESCONDIDO.—Richard ‘‘Dick’’ Disney’s never been one of wealth, but far from pov- tomed to the makeshift home we lived in. goals in life, his friends say, were to inspire erty. My family lived in a beautiful country My mother continued saving money every students through athletics, build their self- cottage for twelve years, while raising two day to move out, since we were only allowed esteem and make them realize that team- boys and launching a prosperous business. six months to stay. I continued with school work is the key to success. We lived the American lifestyle. There was into my senior year, and was doing remark- He was about to bestow an award reflect- always dinner on the table, and presents ably well. My brother, who used to be a shut ing those ideals to a student-athlete at Or- under the tree at Christmas. Our needs and in, began making friends at his new school in ange Glen High School Monday night, but he wants were always met. Santa Barbara. We trudged through day never got the chance to do so. When I was twelve my parents began suf- after day living in the shelter with scream- Mr. Disney, 62, collapsed and died just be- fering serious marital distress. Unable to re- ing babies, and beaten wives, finding fore presenting the award—named after him- solve the issues that can sometimes never be strength in places we never knew about. I self—to senior Matt Embrey, the grandson of resolved, my mother told my father to leave. began to cook more often, and enjoyed the legendary Escondido High coach Chick With no other suitable and stable means of simple satisfaction of serving my mother and Embrey, now retired. income my mother, brother, and I began to brother dinner. have financial problems. Unable to pay the Mr. Disney, a trustee of the Escondido My mother became so strong and driven I Union High School District and a former rent, our landlord promptly served us with couldn’t help but to admire her courage and an eviction notice. Within thirty days we longtime coach and teacher at Orange Glen, her grace in such a time of despair. My own was taken to Palomar Medical Center after had nowhere to go, and nobody to turn to; re- strength grew as well and I began to see that luctantly my abridged family moved into a collapsing at 8 p.m. from what his wife, everyone can have happiness if they choose Sharon, said was a major heart attack. nearby motel for a week. I recall that week to. I began to love the small family that as one of the most disorienting times in my ‘‘He was the most wonderful husband in lived in the shelter; the mothers, the babies, the world,’’ Mrs. Disney said. ‘‘He died doing life. When I came home to our motel room I and the bond that we all shared by having had no bed to call my own, no kitchen to what he loved most, working with kids and nothing but one another. Coming towards trying to help them be the best they can be.’’ make myself a snack as we were living out of the end of the sixth month, my mother found an ice box, and nothing to call my own any- Mr. Disney, known to most Escondido resi- a home. She had finally saved enough money dents simply as ‘‘coach,’’ was a Point Loma more, just the bag that I came with. I con- to move and our time in the shelter had stantly questioned my mother where we High graduate. He taught at both San come to an end. Six months of struggle, six Marcos High and Escondido High before be- were going to move and she always replied, months of humility, and six months of ‘‘I don’t know son.’’ Two days before our coming a founding faculty member at Or- strength would now send us out into the ange Glen when it opened in 1962. He was a stay at the motel was up my mother told my world. Our dreams still intact, and our hap- brother and I that we were going to move physical education teacher, as well as the piness soaring, we moved into our first house head football coach and athletic director for into a family shelter in Santa Barbara. My we could call our own. heart sank into my shoes. Shelters were for several years. Three years later I still look back upon In 1967, he guided the Patriots to an people who lived in alleys. Shelters were for that time in my life and smile. It was then the people who had no family. Shelters were undefeated record and the county champion- when I truly found my strength and happi- ship, said Paul Moyneur, quarterback of that for people who had no place to go, and we ness. I had never been so close to my family had nowhere to go. Within two days we had team and now a San Pasqual High teacher. until everything we had was taken from us. ‘‘I think the thing that stands out about moved our remaining valuable possessions Becoming homeless can be the most horrible into an eight by ten room. The shelter we him is that he genuinely enjoyed being and humbling experience in a person’s life, around kids,’’ Moyneur said. ‘‘He was very moved into had five bedrooms crammed with but it can also be the most empowering. bunk beds, clothes, and children. Each room fair. He was very good at getting the most Homelessness is not always bums on the out of people.’’ housed a mother and her children, and a sidewalk, it can be good decent families that large restaurant style kitchen which served Mr. Disney retired as head coach in 1972 have stumbled into hard times, unable to but continued to serve as an assistant, as as our collective eatery. The floors were fight the power of money. My experience of dirty, the kitchen smelled of rotting vegeta- well as coach of the freshman team. At one being without a home was the most painful point, he served as an assistant Moyneur, bles, but I was with my family and we were time in my life, but in a way it was the safe. The first night we were there I tried who was head coach from 1976 to 1984. brightest. It was then I found myself and my Mr. Disney’s first wife, Sandra, died of can- with all my might to decorate my room as if strength. It was then when I found my fam- it were my home, but the walls felt as if they cer in 1980, and he later remarried. He retired ily. It was when I had nothing, that I found as a teacher in 1992. Two years later, he won were cardboard, liable to disappear at any everything. I will never forget our shelter on moment. I laid in bed that night, struggling a seat on the high school board in a land- De La Vina street, and the person I found slide. He was an active member, helping so- with my emotions, and wondering if I would there. ever have a home again. licit campaign donations to get the district’s The next day while commuting to school, I Torin Rea is now 21 years old sharing a $43 million general obligation bond passed tried to decide what I would tell my friends. home in San Diego, CA, and working at one last June. How could I gracefully tell them, most of of the highest selling Nordstroms in the coun- ‘‘I even called him ‘coach’ because the way whom were all wealthy, that I had moved try. Last year he was the first 21-year-old ever he treated any kind of problem or concern into a homeless shelter? I had never felt so to achieve the honor of top seller in the re- was in a coaching way, never in a much shame, and I had never felt so small. confrontational how to play ball with their While my friends were going out to dinner gion. He is a legend in his own time. youngsters so the children would not be ridi- every Friday night, I was at my dirty shelter f culed later in school,’’ Gawronski said. cooking macaroni and cheese watching my ‘‘He was, and always will be, a coach,’’ said brother and helping him with his homework. A TRIBUTE TO ‘COACH’ DISNEY Charlie Snowder, school board president. I could never leave him alone, or family ‘‘That is how he lived his life. He always pro- services would come and take us both away HON. RANDY ‘‘DUKE’’ CUNNINGHAM moted teamwork and individual excellence from our mother. While my friends’ parents in everything he ever did in life.’’ OF CALIFORNIA were having dinner parties, my mother was Besides his wife, Mr. Disney is survived by out working extra hours to save for rent, and IN THE HOUSE OF REPRESENTATIVES his father, Richard V. Disney; his step- to put food on the table. Many nights I had Tuesday, January 21, 1997 mother, Gladys Disney; two sons, Doug Dis- to come home from school to baby-sit my ney and Richard Disney; two daughters, Dar- brother while my mom was out. This made a Mr. CUNNINGHAM. Mr. Speaker, I rise lene Coughlin and Dee Ann Disney-Jones; a social life completely unattainable. We were today to pay tribute to Mr. Richard `Dick' Dis- stepdaughter, Wendy Leggett; and a stepson, not allowed any visitors inside the shelter, ney. Coach Disney was a long time teacher, Matt Wilson. Tuesday, January 21, 1997 Daily Digest Senate Ayse Manyas Kenmore, of Florida, to be a Mem- Chamber Action ber of the National Museum Services Board for a Routine Proceedings, pages S119–S148 term expiring December 6, 2000. Measures Introduced: One hundred seventy-eight John T. Broderick, Jr., of New Hampshire, to be bills and fourteen resolutions were introduced, as fol- a Member of the Board of Directors of the Legal lows: S. 1–178, S. J. Res. 1–9, and S. Res. 15–19. Services Corporation for a term expiring July 13, (See next issue.) 1999. Measures Passed: Susan E. Trees, of Massachusetts, to be a Member of the National Council on the Humanities for a Technical Correction: Senate passed H. J. Res. term expiring January 26, 2002. 25, making technical corrections to the Omnibus Jeffrey Davidow, of Virginia, to be a Member of Consolidated Appropriations Act, 1997 (Public Law the Board of Directors of the Inter-American Foun- 104–208). (See next issue.) dation, for a term expiring September 20, 2002. Nomination—Time Agreement: A unanimous- Routine lists in the Foreign Service. Pages S146±48 consent agreement was reached providing for the consideration of the nomination of Madeleine Korbel Messages From the President: (See next issue.) Albright, of the District of Columbia, to be Sec- Messages From the House: (See next issue.) retary of State on Wednesday, January 22, with a Communications: (See next issue.) vote to occur thereon. (See next issue.) Executive Reports of Committees: (See next issue.) Appointments: Statements on Introduced Bills: (See next issue.) Senate Arms Control Observer Group: The Chair, on behalf of the Minority Leader, pursuant to Amendments Submitted: (See next issue.) S. Res. 105, adopted April 13, 1989, as amended by Notices of Hearings: (See next issue.) S. Res. 280, adopted October 8, 1994, announced Additional Statements: (See next issue.) the appointment of the following Senators as members of the Senate Arms Control Observer Group: Adjournment: Senate convened at 12 noon and ad- Senators Biden, Byrd (designated to serve as Minor- journed at 7:19 p.m., until 10 a.m., on Wednesday, ity Administrative Co-Chairman), Bumpers, Daschle, January 22, 1997. (For Senate’s program, see the re- Glenn, Kennedy, Kerrey, Levin (designated to serve marks of the Acting Majority Leader in today’s as Co-Chairman for the Minority), Moynihan, and Record.) Sarbanes. (See next issue.) Messages From the President: Senate received the Committee Meetings following messages from the President of the United States: (Committees not listed did not meet) Transmitting, a report concerning biological and chemical weapons; to the Committee on Armed ECONOMIC OUTLOOK Services. (PM–5). (See next issue.) Transmitting, a report on the continuation of the Committee on the Budget: Committee held hearings to emergency regarding terrorists; to the Committee on examine the state of the United States economy and Banking, Housing, and Urban Affairs. (PM–6). economic outlook, receiving testimony from Alan (See next issue.) Greenspan, Chairman, Board of Governors of the Federal Reserve System. Nominations Received: Senate received the follow- Committee will meet again tomorrow. ing nominations:

D37 D38 CONGRESSIONAL RECORD — DAILY DIGEST January 21, 1997 NOMINATION nation of Madeleine Korbel Albright, of the District Committee on Foreign Relations: On Monday, January of Columbia, to be Secretary of State. 20, committee ordered favorably reported the nomi- h House of Representatives Threat of Biological and Chemical Weapons: Chamber Action Message wherein he transmits his report describing Bills Introduced: 45 public bills, H.R. 452–496; the policy functions and operational roles of Federal and 11 resolutions, H.J. Res. 32–35, H. Con. Res. agencies in countering the threat posed by biological 9–11, and H. Res. 31–34, were introduced. and chemical weapons of mass destruction—referred Pages H242±44 to the Committee on National Security and ordered Reports Filed: No reports were filed today. printed (H. Doc. 105–29). Page H236 Speaker Pro Tempore: Read a letter from the Quorum Calls—Votes: One recorded vote devel- Speaker wherein he designated Representative Bereu- oped during the proceedings of the House today and ter to act as Speaker pro tempore for today. appears on pages H234–35. There were no quorum Page H171 calls. Select Committee on Ethics Report: By a recorded Adjournment: Met at 12 noon and, pursuant to the vote of 395 ayes to 28 noes with 5 voting ‘‘present’’, provisions of S. Con. Res. 3, adjourned at 2:24 p.m. Roll No. 8, the House agreed to H. Res. 31, in the until 12:30 p.m. on Tuesday, February 4, 1997. matter of Representative Newt Gingrich. Pages H171±H235 Committee Meetings Committee Leave of Absence: Read a letter from Representative Barr wherein he requests a leave of COMMITTEE ORGANIZATION absence from the Committee on Veterans’ Affairs. Committee on Commerce: Met for organizational pur- Page H235 poses. Committee Elections: Agreed to H. Res. 31 and H. Res. 32, electing Members to certain standing com- COMMITTEE ORGANIZATION mittees of the House of Representatives. Committee on Education and the Workforce: Met for or- Pages H235±36 ganizational purposes. Morning Hour Debate: It was made in order that on Mondays and Tuesdays of each week through the OVERSIGHT—STATUS OF EFFORTS TO second session of the 105th Congress, the House IDENTIFY PERSIAN GULF WAR SYNDROME shall convene 90 minutes earlier than the time oth- Committee on Government Reform and Oversight: Sub- erwise established by order of the House for the pur- committee on Human Resources and Intergovern- pose of conducting morning-hour debate. Page H236 mental Relations held an oversight hearing on the State of the Union Address: The House agreed to status of efforts to identify the Persian Gulf War H. Con. Res. 9, providing for the State of the Union syndrome. Testimony was heard from Donald Curtis, address by the President on Tuesday, February 4, M.D., member, Presidential Advisory Committee on 1997. Page H236 PGW Veterans’ Illnesses; Kenneth Kizer, M.D., Presidential Messages: Read the following mes- Under Secretary, Health, Department of Veterans sages from the President: Affairs; Bernard Rostker, Special Assistant, PGW Ill- National Emergency re Middle East Peace Proc- nesses, Department of Defense; and public witnesses. ess: Message wherein he transmits his notice con- COMMITTEE ORGANIZATION cerning the emergency declared with respect to the Middle East peace process—referred to the Commit- Committee on the Judiciary: Met for organizational pur- tee on International Relations and ordered printed poses. (H. Doc. 105–28); and Page H236 The Committee also approved oversight reports. January 21, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D39 COMMITTEE MEETINGS FOR Committee on the Budget, to hold hearings on long-term WEDNESDAY, JANUARY 22, 1997 budget projections and prospects for long-term growth, 10 a.m., SD–608. (Committee meetings are open unless otherwise indicated) Committee on Commerce, Science, and Transportation, to hold an organizational meeting, 2 p.m., SR–253. Senate Full Committee, to hold hearings on the nomination Committee on Agriculture, Nutrition, and Forestry, to hold of William M. Daley, of Illinois, to be Secretary of Com- an organizational meeting, 9:30 a.m., SR–328A. merce, 2:30 p.m., SR–253. Committee on Armed Services, to hold hearings on the Committee on the Judiciary, to hold hearings on proposed nomination of William S. Cohen, of Maine, to be Sec- legislation to balance the budget, 10 a.m., SD–226. retary of Defense, 10:30 a.m., SH–216. Committee on Labor and Human Resources, to hold an or- Full Committee, closed business meeting, to consider ganizational meeting, 9:30 a.m., SD–430. the nomination of William S. Cohen, of Maine, to be Secretary of Defense, 3 p.m., SR–222. House Committee on Banking, Housing, and Urban Affairs, to Committee on the Judiciary, Subcommittee on the Con- hold hearings on the nomination of Andrew M. Cuomo, stitution, hearing regarding limiting terms of office for of New York, to be Secretary of Housing and Urban De- Members of the U.S. Senate and the U.S. House of Rep- velopment, 10 a.m., SD–538. resentatives, 9:30 a.m., 2141 Rayburn. D40 CONGRESSIONAL RECORD — DAILY DIGEST January 21, 1997

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10 a.m., Wednesday, January 22 12 noon, Tuesday, February 4

Senate Chamber House Chamber Program for Wednesday: After the recognition of three Program for Tuesday, February 4: The House will Senators for speeches and the transaction of any morning meet in Joint Session with the Senate to receive the Presi- business (not to extend beyond 12 noon), Senate will con- dent’s State of the Union Address. sider the nomination of Madeleine Albright, to be Sec- retary of State.

Extensions of Remarks, as inserted in this issue

HOUSE Costello, Jerry F., Ill., E105 Radanovich, George P., Calif., E104 Cunningham, Randy ‘‘Duke ’’, Calif., E112 Ros-Lehtinen, Ileana, Fla., E104, E105 Bass, Charles F., N.H., E108 Ehrlich, Robert L., Jr., Md., E110 Saxton, Jim, N.J., E111 Bentsen, Ken, Tex., E106 Gallegly, Elton, Calif., E110 Serrano, Jose´ E., N.Y., E103, E109 Berman, Howard L., Calif., E103, E105, E109 Hastert, J. Dennis, Ill., E110 Solomon, Gerald B.H., N.Y., E99, E100, E103 Bilirakis, Michael, Fla., E109 King, Peter T., N.Y., E106 Visclosky, Peter J., Ind., E111 Camp, Dave, Mich., E108 Kleczka, Gerald D., Wisc., E104, E105 Waxman, Henry A., Calif., E111 Capps, Walter H., Calif., E111 Martinez, Matthew G., Calif., E105 Young, C.W. Bill, Fla., E107 Cardin, Benjamin L., Md., E105 Meek, Carrie P., Fla., E103, E109

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