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June 3, 1976
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Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 S 8368 CONGRESSIONAL RECORD -SENATE June 3, 1976 and the Senator from Alabama (Mr. SPARKMAN) were added as cosponsors to S. 3441, a bill to authorize the Architect of the Capitol to perform certain work on and maintain the historical sections of the Congressional Cemetery for a 2- year period, and to authorize a study by the Secretary of the Interior to formulate proposals for renovation and permanent maintenance of such sections by the United States. AMENDMENTS NOS. 1598, 1599, AND 1600 At the request of Mr. Moss, the Sena- tor from South Carolina (Mr. THUR- MOND) was added as a cosponsor of amendments Nos. 1598, 1599, and 1600, intended to be proposed to the bill (S. 3219), the Clean Air Act amendments. AMENDMENTS NOS. 1608, 1609, AND 1610 Mr. GARY HART. Mr. President, I ask unanimous consent that Senators HAT- FIELD and CRANSTON be added as cospOyd sors to amendments Nos. 1608 and I8Q9 to S. 3219, a bill to amend the Clean A Act. Senator HATFIELD as a cosponsor to amendment No. 1610 to S. 3219. The PRESIDING OFFICER. With- out objection, it is so ordered. AMENDMENT NO. 1705 At the request of Mr. BUCKLEY, the Senators from Arizona (Mr. FANNIN and Mr. GOLDWATER) were added as - cospon- sors of amendment No. 1705, intended to be proposed to amendment No. 1701 pro- posed to the bill (H.R. 8532), the Anti- trust Improvements Act. SENATE RESOLUTION 455-ORIGI- NAL RESOLUTION REPORTED AU- THORIZING THE PRINTING OF "ELECTION LAW GUIDEBOOK" Mr. CANNON, from the Committee on Rules and Administration reported the following original resolution: S. RES. 455 - Resolved, That a revised edition of Senate Document Numbered 93-84, entitled "Elec- tion Law Guidebook", be printed as a Sen- ate document, and that there be printed one thousand six hundred additional copies of such document for the use of the Commit- tee on Rules and Administration. essing, Marketing and Pricing, which - the hearing record thoroughly documents was first introduced last February. . efforts by then-Army Secretary Howard After introduction of S. 3045, I and H. Callaway to influence the Forest Serv- members of the staff of the Select Com- ice for a decision favorable to his inter- mittee on Nutrition and Human Needs ests as majority stockholder of the continued to meet with various agri- Crested Butte Development Corp. cultural economists, representatives of The hearing record, Mr. President, industry, national consumer organiza- also contains repeated denials by Forest tions, trade associations, lab r unions, Service personnel at every level that the and House and Senate st members pressure in any way influenced their who are experienced in a knowledge- actions. They stated repeatedly that any able about the economic structure and decision reached, tentative or otherwise, performan of the food industry. V&lu- would have been reached in the normal able d' us s ha t place, and course of events. froth t se eet' as , merged the But I believe the appearance that per- rgvised white, al introducing to- sonal interest has influenced public deci- td the nate, and I am hopeful hatJkl'is Co press will pass this legisla- the fact of such influence. For that rea- son, I believe we must seek ways to eli- minate even the appearance. My amend- ment clearly empowers the Commission on Ethics to determine that the mere attempt by a federal official to influence a Federal agency on his behalf or on be- half of any organization in which he has WATERGATE REORGANIZATION AND REFORM ACT-S. 495 a financial interest is sufficient grounds for denying the action sought-regard AMENDMENT NO. 1750 less of the merit of the action. (Ordered to be printed and to lie on Mr. President, the present patchwor the table.) of conflict of interest regulations has Mr. HASKELL. Mr. President, I am failed miserably. During the drafting of introducing an amendment to the the original bill I found among other Watergate Reorganization and Reform things: Act of 1976, S. 495, to provide a co- According to a GAO report some offi- herent, consistent and enforceable 'cials of the U.S. Geological Survey own ethical code to shield public policy from stock in companies holding mineral leases the personal financial interest of pub- on Federal lands administered by the lie policymakers. The substance of the USGS. amendment is contained in the Federal The holdings were disclosed in finan- Conflicts of Interest Act, S. 2098, which cial statements filed in 1974 but the I introduced in July along with seven agency took no action to force divesti- cosponsors. ture or even to preclude the employees The bill, S. 495, as reported is in a from acting in areas in which there sense a mixed blessing. I appreciate the would be a direct financial interest. Government Operations Committee in- Another GAO report discusses a Phil- eluding within its bill provisions on title lips Petroleum executive who took a II financial disclosure which are essen- Year's leave of absence to work for the tially the same as S. 2098. However, the Federal Energy Administration under the deletion of the Commission in Ethics is Presidential-executive interchange pro- the mater of concern addressed in this gram. amendment. The legislation that I am As part of his FEA duties, the executive introducing today includes this second evaluated and projected the effects of portion of S. 2098, which was not in- present and proposed regulations of vari- cluded in S. 495. Very simply, this ous sectors of the oil and gas industry. establishes a' Commission on Ethics to The GAO notes that the executive re- promulgate a uniform set of ethics for tained a financial interest in Phillips Government employees and to adjudi- through the company's thrift and re- cate those conflicts. tirement plans and also through his con- AMENDMENTS SUBMITTED FOR There is one substantial change in this tinuing employment with the company. NATIONAL COMMISSION ON FOOD PRODUCTION-S. 3045 AMENDMENT NO. 1749 (Ordered to be printed and referred jointly to the Committee on Agriculture and Forestry and the Committee on Commerce.) Mr. McGOVERN. Mr. President, I am, today, introducing a revised version of S. 3045, a bill to establish a National Commission on Food Production, Proc- amendment from the original bill. The In both these instances, Mr. President, change is the result of hearings I re- the possible conflicts were obvious. One cently held in the Interior Subcommittee by the employee's own disclosure state- on Environment and Land Resources ment, the other merely by virtue of the into the proposed expansion of the employee's continued association with Crested Butte, Colo., ski area. a private company directly affected by I asked for an investigation and called his governmental duties, the hearings after the Forest Service Two other examples reveal other flaws failed to adequately respond to questions in the present procedure: I raised based on information given me A nominee for a Federal agency post by Crested Butte officials. The investiga- put his interest in a blind trust. But the tion disclosed that some of my constitu- principal assets were unmarketable and ents' worst fears were unjustified. But a close relative was named trustee. Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 CONG';FSSIONAL I FCORD-S''NATE name of some higher cause are still 'der and violence. No one has the t to advocate his beliefs by destrov- ii r as and property of another. tent In suspend economic ar l mill ts:;:s rn_'e, Government and,com- -1trv v?t:rch willfully aids and abe Ile Tonal terrorism. ;spire of increased efforts in recent by certain nations to put a stop ,r crack down on terrorist groups. rism. has widened in scope and there rowwing evidence of cooperation , !_n& - ~. Since 1968 alone approximately S0(1 eople have been killed and 1,700 in- in international terrorist inci- d.-i';s: 1.14 U.S citizens have been in- o t,'d and 24 of them killed. ~ spite of the fact that international ?V,' .:risen has continued to grow, how- no illegal solutions are in sight. c~tzar;v nations, particularly those in the T ii;-` Worfd, are unwilling to cooperate ' ;forts to combat terrorism which, t1:.r; say. can be justified under certain 0irc- mstances, Therefore, sources report that almost half of those terrorists cap- T,ur e: in the last 5 years have been re- lea',c ti.. These nations' unwillingness to isr-iu,. the bill force of the law to bear agar st_. these international outlaws tire, tens the safety and peace of all na- tio , aj; :,as for some time been U.S. Govern- men, policy to support adoption of an int= ruational convention to mandate 'arr?'ons against states which fail to prase' 'ute or extradite international ter- rorrs!:s. However, the convention has made little headway and the prospects for e'~actment are remote. :?+'iieve U.S. policy of no negotia- tion with terrorists Is a correct one. But 1. 1st=1; ve we must go one step beyond this in or effort to meet the problem of for- eign governments' harboring of ter- rorisrs. My legislation is designed to serve notice to all nations that the Untied State'- will not contenance acquiescence to terrorism. and that we are willing to take serious action to deal with this Problem. I urge the Senate's support for t.hi,s all, The civilized world must re- sponu with tough, effective measures :against those international outlaws who .voile seek to destroy the very founda- tions of the democratic system. i?ih, President. I ask unanimous con- ,son,. ;.o have S. 3516 printed at this point in the RECORD. 'T --re being no objection, the bill was ordered, to be printed in the RECORD RS folloir? : it enacted her 0i' c,,note f.nd Ho?e. of Re, esentatires of 11, ,i United Stater of An rice in Congress x: = tabled. (a? That he Pre-dent shall snsper.l, for suoh perio' as eenls appropriate- ecoriomic assists,, e: military assistan,0: o'.ern: nent and r )rn,er :, sale of def, se articles and serrices: (4 extensions of cr,,d!ts anu st: a:ran `Ps tinder the Foreign Mil:tarv Sales Aet: ,ot loans made y? the Export-Imr in Ban.r:; and (_ the designation nt "beneficiary de al- colintay." uildei Section 502 of he Act of 1974: .wit'l- respecf, to any co ri- trv which willfully :r'd; or shit m inter a- tior I terrorism. (,. If he President find, that natic a] sect- may j'lstifies the ewituiuation If ass t- ancer to any governme ?.t described in ! c- tiur. a), ne snail repur. such fir ding to tie Speacer o] the House ct Representatives a id At rty (30) calendar m ,v,; of re, ei 'ing s, h re t, adopts a concurrent reso ut]on at t- ingleat it does not find that the patio a] sec-ut~ty jristitres assistance to silo] gove_ i- A.- the quest of Mr CURTIS, the Ser Lor prorgia Mr NUNN), the Ser. tor : ,Om. 'forma ( Mr. CRANS,TON), a, d the enator om Olliu Mr. TAFT) we e adds, l as cos nsors of S. 1173. to ame.d the iterlral venue ('ode of 1954. V. 140,; At the request of Mr MONTOYA, t`:. e Seniror from Ka as Mr. PEARSON) w s adder' as a cospo r of S. 1406, a bill O amend title 38. Unit1id States Code S. 212.: At the request oI! Ir. RIBICOFF. te Senator from Utaht ir. Moss, w: added as a cosponsor o. 2020, to pre - vide optometric covera.(ei ,under part -3 AL the request of Mr. B rITSEN, tl. , Senar,)r from Ohio Mr. ' AFT wr added as a cosponsor of S. 26wto timer the Internal Revenue code of4V4. S. 2a^,r; At he request of Mr, MoNrpiA, tiSenator from Hawaii (Mr. INolrrI: we added as a cosponsor of S. 2870, to alert mend the Forest and Rangeland Re- newable Resources Act of 1974. .. 3182 At the request of Mr. TAFr, the Sen- ator from Nebraska (Mr, HRUSAA). the Senator from Alabama (Mr. SPAAI bMIAN) , the Senator from Nevada (Mr. CANNON), the Senator from Tennessee i Mn BAKER 1, and the Senator from North Dakota (Mr. BURDICK) were added as cosponsors of S. 3182, to amend the oc- cupational Safety and Health Act of 1900. S. 3222 At the request of Mr. DJRK:N, the Senator from Alabama (Mr, SPARKMAN r was added as a cosponsor of S. 3222, a bill to amend the Veterans Readjust- ment Benefits Act. S. 3227 At the request of Mr. HUMPHREY, the Senator from Massachusetts (Mr. KEN- NEDY) was added as a cosponsor of S. :3227, to accelerate solar energy re- search, S- 3379 At the request of Mr. ROBERT C. BYRD I for Mr. CHURCH), the Senator from. Vermont (Mr. LEAHY), the Senator from. Connecticut (Mr. WEICKER), and the Senator, from New Jersey (Mr. CASE) were added as cosponsors of S. 3379, to require reporting and analysis of con- tributions. S. 3392 At the request of Mr. GARY HA7'r, the Senator from Arkansas (Mr. BUMPERS). the Senator from South Dakota (Mr. MCGOVERN) , the Senator from Michigan Mr. PHILIP A. HART), and the Senator from Florida (Mr. CHILES) were added as cosponsors of S. 3392, to provide for Judicial review of administrative de- cisions made by the Veterans' Admina- tration. S. 3433 At the request of Mr. PACKWOOD, the Senator from Florida (Mr. CHILES' and the Senator from Nebraska (Mr. HRUSKA) were added as cosponsors of S. 3433, to require that imported meat and meat food products be labeled "imported," S. 3441 At the request of Mr. HUGH SCOT-I, the Senator from Arizona (Mr. FANNIN , , the Senator from Arkansas (Mr. BUMI'ERS 1, the Senator from Wyoming (Ali.. McGEE), the Senator from Minnesota Mr. HUMPHREY), the Senator from Ala- bama (Mr. ALLEN), the Senator from New Mexico (Mr. DOMENICI), the Sens- S. 293" At he request of Air, HUGH SCOTT the Senator from Minnr_sota (Mr. Hum PHREY was added as a cosponsor of S 2989, .o increase from 10 to 15 year the pc--:riod during whit 'h veterans art eligibit for educational assistance. 9. 3091 At alie request of Mr HUMPHREY, thc Senator from Utah (Mr. Moss) was added as a cosponsor of S, 3001, tr %enator from New Jersey (Mr. C.nsE' the senator from North Carolina (Mr. MoR- GAV),the Senator from Indiana +Mr. HAjTKE) , the Senator from Missouri -:M,-. SYM'INGTON), the Senator from Hawaii (Mr.' FONG), the Senator from Maryland (Mr. MATHIAS), the Senator from Illinois (Mr. STEVENSON), the Senator from Rhode Island (Mr. PELL), the Senator fi uni Tennessee (Mr. BAKER), the Sena- tor from Louisiana (Mr. JOHNSTON). the Senator from Nebraska (Mr. HRUSItA' , the Senator from Florida (Mr. CHILES!. Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 June 3, 1976 CONGRESSIONAL RECORD - SENATE S8369 The assets were conveyed by the trus- sible conflicts is so vague its value is The longer I worked on this legislation, tee in return for stock in a family-held questionable. Instead of listing specific Mr. President, the clearer it became that corporation. Thus, the family retained firms and individuals the employee will oversight and enforcement of conflict of assets which could be affected by the deal with, only general industries are interest codes must lie outside the agen- nominee's decisions in his new post. The listed. It is therefore quite conceivable cies involved. agency official responsible for such mat- that an employee could be in a conflict That is the foundation of the remedy I ters approved the arrangement. situation without his or her supervisor's again propose today. To insure that this Recently the Council on Economic knowing it. information effectively prevents conflict Priorities released a study entitled "Mili- I was also surprised to learn that many of interest-and failing that, ferrets it tary Maneuvers." The study charges no employees had no idea of what to do out and eliminates it-my amendment illegality but found that over a quarter in case a possible conflict arose. And sev- will establish a five member Commission of the 1,400-plus former Pentagon em- eral did not even understand what a con- on Conduct with oversight and enforce- ployees who went to work for defense flict of interest is-in fact, one employee ment authority for both branches. contractors between 1969 and 1973 were said that a conflict of interest was im- The Commission would supervise dis- involved in potential conflict of interest. possible in her department. closure, investigate and conduct hearings The study cites a number of instances To their credit, many agencies and de- to ascertain if conflicts exist. If conflicts in which former officers took jobs with partments hold conferences and semi- do exist, the Commission would have the contractors over which, they previously nars on conflict of interest regulations. authority to discipline employees or rec- had some form of authority. Existing law But responses to my inquiries indicate ommend disciplinary action. It could requires retired military officers to file they are not communicating effectively. require divestiture of an official's or em- reports for 3 years after leaving the The Civil Service Commission has re- ployee's conflicting interest and could service if they go to work at a salary level cently begun an evaluation of ethical prescribe the terms and conditions of of $15,000 or greater with companies standards in recognition of the problem. such divestiture-to make certain, for, with $10 million or more in defense con- A single person has been hired in the example, that a "blind trust" is truly tracts. The system is not working; The General Counsel's office whose full-time blind, not merely a cosmetic device to CEP found an apparent lack of effort and responsibility is ethics. This response is concea lconflicts. qualitative analysis. nowhere near sufficient. The Commission will have sufficient The explanation of the Department of Effective oversight and enforcement do staff to evaluate present guidelines, adopt Defense sums up the problems with Fed- not exist today, nor can they under the those it considers worthwhile and pro- eral conflict of interest regulation gen- burdens of the present system: Disclosed mulgate, by rule, such additional guide- erally: information is confidential, precluding lines as it finds necessary. Since the entire procedure was not initiat- all but internal oversight; disclosure te- The Commission would be full time ed by DOD, but was thrust upon it by Con- quirements do not provide the informa- with n enforce other s ompliaty tI than would gress, it is not perceived as central to the tion necessary for effective monitoring goals of the DOD. By assigning the respon- Of conflicts; personnel and resources de- vest in this Commission authority to sibility to offices with other responsibilities, voted to reviewing and investigating po- investigate violations of any of its rules. and by dispersing the responsibilities, it was tential conflicts are limited. Finally, de- The full range of due process rights is assured that only a minimum of effort would centralized in-house authority results in adequately provided for. re ortsted for evaluating and compiling the uneven and unequal treatment of in- Any such investigations would be kept reports. dividuals, depending upon how vigorously confidential but individuals would be As I began querying various depart- the agency pursues the matter. notified that an alleged violation is under ments and agencies of Government, it Within the legislative branch, Mem- investigation. If the Commission deter- became clear this was the pattern bers and employees of Congress are sub- mines the complaint is sufficient, a hear- throughout the Federal Government. ject to the same penalties for bribery ing would follow. The resulting decision An Executive order covers ethical con- and certain other violations as are em- would be made public. duct in the executive branch, bolstered ployees of the executive and judicial I believe counseling is an essential part by a regulation of the Civil Service Com- branches. In addition, both the House of any anticonflict system and this legis- mission which also handles such over- and Senate require disclosure by Mem- lation provides that the Commission may sight as exists. bers and certain employees, though the issue advisory opinions with respect to I discovered that, although the agen- requirements vary. The disclosure, how- matters relating to conduct or financial cies use the civil service requirements ever, is confidential. . disclosure. While such an advisory opin- for financial disclosure-with some mod- Mr. President, that is the pattern. Reg- ion would not have the force of law, it ifications for individual agency needs- ulations lack uniformity; their enforce- would constitute for the official or em- there are no firm criteria for the evalua- ment ranges from perfunctory to non- ployee seeking it, a complete defense to tion of the disclosure forms. Moreover, existent. Within this imperfect frame- civil or disciplinary action authorized no one seemed to know who the ethics work thousands of real and potential under this act-assuming, of course, that counselor in his agency actually was. conflicts of interest exist-some are un- the individual's statement of fact to the Evaluation is done by an indefinite num- witting, some remain long after open dis- Commission contains no material mis- ber of people, all of whom have other closure. Others are less innocent. statement, omits no facts, and that he duties. Several of my colleagues have intro- otherwise acts in good faith. Generally, when a question arises on duced bills addressing this problem. But The provisions I have outlined, Mr. a particular form, it is given to the re- they rely as does S. 495 on stringent dis- President, would apply equally to elected gional supervisor. If not resolved there, closure requirements. As I have pointed officials of both branches, candidates in it is forwarded to agency headquarters. out, disclosure alone-even thorough primaries, runoffs or general elections for There are no interagency guidelines disclosure-is inadequate. Witness the Federal office, and employees and ap- for statement evaluation and usually situations i have outlined in which em- pointees. The amendment includes civil only informal inteaagency guidelines. ployees openly disclosed holdings which penalties. It provides civil penalties in There are no standard means of in- could very well conflict with their duties. the amount of any profit gained as a re- vestigating suspected conflicts beyond But under the loose assortment of regula- sult of a violation under the bill. The asking the employee directly or check- tions and procedures, administered in- Attorney General would be authorized to ing his file. house, agency by agency, the conflicts bring any legal action in any court of A Job description prepared by the em- were either not discovered or not acted the United States to enforce provisions ployee's supervisor to help pinpoint pos- upon. of this section of the act. Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 'INGRESSION AL, RECORD -SENATE -SENATE J t , Y i , ' . f970' i, on may be brought regardless f ofprivate financial interests f om public whether the individual is an officer c;r policy decisions. omployee at the time, so long as the ar- Mr. President, I ast imani onus con- l.ion is brought within 3 years of the sent that the amendment, tog 'ther with a section-by-section analysis, be printed i -e is a significant difference-ant in the RECORD. believe. a necessary one-between di There being no objection, te amend- ~;c;titure requirements for appointee; merit and analysis were ordl red to be 'Lod employees and for elected officials- printed in the RECORD as foll( -.vs: z? ntiointees and employees are not di TITT,E ONE 'iy',tly -responsible to the electorate an: ad1v shaken over the past 3 years-is :sly subjecting ourselves and our private iilin,neial affairs to unobstructed public .iC_rutiny. SECrxoly 1. It is unlawful for an elected or appointed officer or employee of he execu- tive and legislativ.' branches of t e Govern- ment__ (A) to engage .er attempt to naage, di- rectly or indirectly, in any person ;A business transaction or private arrangeme t for per- sonal profit which accrues from r is based upon such officer or employee's o 'icial posi- tion or authority or upon confide' vial infor- mation gained b,, reason of such position or authority; or (B) to violate knowinylp any s indard of ethical conduct uromuiga;ed by th , Commis- sion on Conduce, pursuant to this Act. Sec. 2. There is imposed, on any .ndividual who violates this section, a civil enalty in the amount of any profit gained as . result of such violation together with inter .:'st there- on computed from the da':e of suc violation at a rate equal to the annual rate a tablished under section 6521 of the Interne Revenue Code of 1954. SE,_. 3. The Cot iini,sior o:, Con net, con- currently with tits Attorney Gene Al, -is au- thorized to bring .env legal action it any court of the United Stale, to enforce the rovisions of this section Any such action may be brought without regard to I'opriate officers and employees of such branches of the Govermmen' an it deeiuis necessary, (b) Notwithstanding any other provision of this Act the Commission shall iniple- rltent the financial disclosure re:.luire rents required tinder this Act. (c) The Commission shall perform such :,ther functions as may be necessary to carry :nit the provisions of this Act. INVESTIGATIONS SEC. 3(a) The Commission is authorized in investigate any alleged violation of any (provision of this Act for regulation promul- gated pursuant thereto. An investigation may be initiated upon the motion of any member of the Commission or upon the com- plaint of any person. An investigation con- ducted under this section shall be ton- fidential. The person under investigation shall be notified in writing that sn in"esti- gation is being undertaken (b) The Commission is authorized to ac- cept from any individual complaints with .;pect to matters with which the Commis- ,ion has the authority to investigate. Any such complaints shall be signed by the "om- plainant. If so requested, the Commission is authorized to inform the complainant of any action taken with respect to the ' m.- plaint. A notice of such action shall be by letter and shall be provided within a rea:?on-- able time Upon dismissal of any complaint the Commission shall notify the conlpiain- ant of its reasons for such actions. (c) After conducting an investigation. un- der this section the Commission is auihor- izcd- (1) To dismiss any complaint be:for., it ;;eople of this Nation no longer a chairman and a vice-chairman fro a among unsubstantiated by creditable evidence. belie S e nor believe in us. Indeed, why its members. The chairman and ie vice- (2) To refer the complaint to the attorney ::hound they until they know with cer- chairman shall not be affiliated ith the general for appropriate action; or same political parry. No member of he Com- (3) Conduct a full hearing on the master tainty whom we really serve? That ques- mission may serve as chairman of e Corn- charged in the complaint and take the ap- i,ion will remain an open one until we mission for more flan sir' --ar d ring his propriate action in accordance with the pro- a-to tarn; steps to remove the influence or her term of office -ions of this section. Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 June 3, 1976 CONGRESSIONAL RECORD - SENATE (d) (1) Whenever the Commission orders a hearing with respect to any matter charged in the complaint or under investigation, it shall provide not less than 30 days notice to the individual charged. or under investiga- tion of the date on which any hearing is to be conducted. Any individual who is the subject of Such a charge or investigation has the right to appear at any such hearing to be represented, by counsel, to confront and cross-examine witnesses, to present evidence in his own behalf, and to subpoena witnesses. Any individual who is the subject of an in- quiry under this section has the right to refuse to attend and testify or produce any- thing Ordered to be produced by the Commis- sion on the ground that the testimony or ma- terial required to be produced would tend to incriminate such person or subject such person to penalty or forfeiture. The Com- mission shall provide further assurance of due process under law as may be warranted. The Commission shall maintain a record of any such hearing. (2) The Commission in carrying out its duties under this section may sit and act at such times and places, hold such hearings, take such testimony, require by subpoena or subpoena decus tecum. The attendance of such witnesses and the production of such books, records, papers, accounts, and docu- ments, administer such oaths and issue such other orders as may be necessary. Subpoenas, subpoena decus tecums and other orders shall issue under signature of the chairman or the member of the Commission designated by the chairman. Any member of the Com- mission or panel may administer such oaths or affirmations to witnesses as necessary. (3) In case of disobedience to a subpoena or other order issued under paragraph (2) of the subsection, the Commission may invoke the aid of any district court of the United States in requiring compliance with such subpoena, subpoena decus tecuim, or other order. Any district court of the United States within the jurisdiction in which the person is found or transacts business may in the case of contumacy-or refusal to boy such subpoena or order issued by the Commission, issue an order to such person to appear and testify, to produce such books, records, pa- pers, and documents. Any failure to obey the order of the court shall be punished by the court as contempt thereof. (e) (1) The Commssion shall make find-' jogs of fact which shall be entered on the record. Upon finding that an individual has violated the standards of ethical conduct es- tablished by the Commission or has violated any other requirement of this Act the Com- mission may- (A) Dismiss any such employees from the Civil Service or order such other disciplinary action as may be warranted; (B) Recommend to the appropriate House of Congress that disciplinary proceedings be initiated with respect to any Member or em- ployee thereof; (C) Recommend to the House of Repre- sentatives that a writ of impeachment be considered; (D) Recommend to the President or to the Congress the removal of any civil officer of the' United States; (E) Refer cases to the attorney general of the United States for the appropriate civil or criminal action; and (F) Require in the appropriate cases the divestment of any interest that causes a conflict of interest and prescribe the terms and conditions of any such divestiture. Re- quire, as the Commission deems appropriate, any agency or department to deny or rescind any application pending before it in which there has been a conflict of interest. (0) Paragraph (e) (1) (E) shall not apply to elected officials. (2) For purpose sof this subsection, the term "disciplinary action" shall include rep- rimand, suspension, and disqualification from participation in a particular policy- determining action. (f) The court of appeals of the United States shall have jurisdiction to hear any appeal from a final decision of the Commis- sion. Appeals of any such decision shall be brought in the same manner and subject to the same limitations as appeals from the district courts of the United States under section 1291 of Title 28, United States Code. ADVISORY OPINIONS SEc. 4. The Commission may issue advisory opinions with respect to such matters relat- ing to conduct or financial disclosure. The Commission may render advisory opinions upon written request of any person as to whether any specific transaction or activity would constitute a violation of any provision of this Act or any regulation promulgated pursuant thereto. Advisory opinion shall be issued within a reasonable time of their re- quest and shall be in writing. An advisory opinion does not have the force of law but shall constitute, for the person requesting it, a complete defense to civil or disciplinary action authorized under this Act if- (1) A statement of fact to the Commission contains no material misstatement or omis- sion; (2) The transaction es conslunated has not materially varied from the facts submitted in the request from the advisory opinion; and (3) The person requesting the advisory opinion acts in good faith in relying on the opinion. REGULATIONS SEC. 8. The Commission is authorized to adopt, amend, modify, and repeal such rules, and regulations as may be necessary to assure compliance with the requirements of this Act and with any regulation issued pur- suant thereto by officers and employees of the Government. PERSONNEL OF THE COMMISSION SEC. 6(a) The Commission is authorized to appoint an executive director and a gen- eral counsel without regard to provisions of Title V, United States Code, governing ap- pointments in the competitive service. The executive director shall be paid at a rate equal to the rate for Level IV of the Execu- tive Schedule under section 631.5 of Title V, United States Code. The general counsel shall be paid at a rate equal to the rate for Level V of the Executive Schedule under section 5316 of such title. With the approval of the Commission, the executive director may appoint and fix the pay of such at- torneys, investigators, and additional per- sonnel as may be necessary. (b) With the approval of the Commis- sion, the executive director may procure temporary and intermittent services to the same extent as is authorized by section 8109 of Title V, United States Code, but at rates for individuals not to exceed the daily equiv- alent of the annual rate of the basic pay in effect for GS-18 of the general schedule under section 5332 of such title. EFFECT ON OTHER LAWS SEC. 7 (a) Nothing in this Act prohibits the establishment or maintenance of standards of conduct or financial disclosure for officers S 83 71 and employees of the Government which are more stringent than the standards imposed by this Act or rules and regulations adopted by the Commission pursuant to this Act. (b) The President is authorized to termi- nate any function assigned to any agency, other than this Commission, which dupli- cates any function or requirement arising under the provisions of this Act. AUTHORIZATION OF APPROPRIATIONS SEC. 8. There are authorized to be appro- priated for each fiscal year such sums as may be necessary to carry out the provisions of this Act. SECTION-BY-S. ECTION ANALYSIS TITLE ONE Declares unlawful for all elected or ap- pointed officer or employee of the govern- ment to engage in activity resulting in a personal profit which accrues because of that employee's position with the government. Establishes a civil penalty to the extent, of the gain as a result of such violation. TITLE TWO Section 1-Establishment of Commission A. Composition. 5 members appointed by the President with advice and consent of the Senate. No more than three shall be affiliated with the same political party. Section 2-Duties of Commission A. Developing Standards of Ethical Con- duct. The Commission shall develop and, by rule, promulgate uniform standards of ethi- cal conduct for appointed officers and em- ployees of the executive and legislative branches of the government. In developing such standards, the Commission shall con- sider the standards of conduct in effect on the date of enactment of this Act, and shall consult with appropriate officers and enn- ployees of both such branches of the Government. B. The Commission shall implement the financial disclosure requirements of this Act. Section 3-Investigations A. Commission is authorized: 1. to investigate alleged violations of this Act or regulations promulgated pursuant thereto. a. Investigation may be initiated upon mo- tion of any member of the Commission or upon complaint of any person. b. investigation conducted under this sec- tion shall be confidential. c. the individual under investigation shall be notified in writing that such investiga- tion is being conducted. 2. to accept complaints from any individual. a. complaint shall be signed by com- plainant. b. If requested, Commission is authorized to inform complainant of any action taken with respect to the complainant. B. After conducting an investigation under this section the Commission is authorized: 1. to dismiss any complaint before it upon a finding that the complaint is insufficient in law or fact, or that the complaint is unsub- stantiated by credible evidence; 2. refer the complaint to the Attorney Gen- eral for appropriate action; or 3. conduct a full hearing on the matter charged in the complaint and take appropri- ate action in accordance with the provisions of this section. C. Hearings: 1. 30-day notice required to individual under investigation. 2. individual who is subject of any inquiry Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5 CONGRESSIONAL RECORD---SENATE ?I ect "), i.:>? s%fi nc'. ,?. section has right to appear at earn e r.u be represented by counsel, to to;i r, i and cross examine witnesses, to pre- n c , i de rice In his own behalf, and to sub- u~ n-nesses, but has right to refuse to r r I atify or produce material on the (rat it would tend to incriminate -~O .1 [ :still. i--,mmissiun shall maintain a rec- ra fir hearing. ~ , onitnlssion shall make findings or r,icri shall be entered on the record. finding that an individual has vio- ... ,,- ..iandards of ethical conduct estab- ,;iy: :r,5 any such employee from the civil s=_r, w r.- order such other disciplinary action _;, i. ' -r,= warranted (including reprimand. at,tsen:,i:;ri, and disqualification from Par- -,ii in particular policy determining .lend to the appropriate House of lint disciplinary proceedings ue cute removal of any civil officer of 3 States: +ii-,iii ni any interest that causes a conflict ,it i, .i.,-rest and prescribe the terms and con- i,,r,r? - ?L any such divestiture. >t;e-aiS. i,rts of appeals of the United States ~,..a-sdi,,tion to hear any appeal trout 1M decision of the Commission. ?rtiof 4-Advisory opinions ?i-e Commission may Issue advisory ..t, with respect to matters relating to ;s, ,, r?:=Z7 of this Act or any regulation ;F,-?.,er;:,x?;,~+:ed pursuant thereto. ca r:. aule time of Lheir request and shall '-.dvisory opinion does not have the ;,.r...- or zsw but shall constitute, for the per- J r.;;aing it, a complete defense to civL na inarv action authorized under thi: atement of fact to the CommiS.iior. no material misstatement or orris. ierson requesting the advisory opin- in good faith in relying on. the _ing in this Act prohibits the estab - or maintenance of standards o. ,'lion 6-Elect on other laws . re with the requirements of thl' with any regulation issued pursuan.? uy officers and employees of th ,S'i'phon 5-Requiations ;oninussion is authorized to adopt. modify, and repeal such rules ant; ingent than the standards imposed Oct or rules and regulations adopte'l by the Comtnisro-;uri on stoics pur rant to matted two amendments intended tc be this Act. r proposed by them jointly to amendment B. 1'he President Ls aucilotized to t' "iiina No. 1701, supra. any function asswwned to an agent other than the Commission, which duplic .tes any AMENDMENT NO, 1778 function or requirement arising u der the (Ordered to be printed and to prov'siolis of this Act- on the table.) ANTITRUST VVli'iioVEAl- NT OF 1976-H.R 8532 ACT amendment intended to be proposed by him to amendment No. 1701, supra. AiAENDMEN?rS :5 1751 rlROUGE 1.757 )Ordered to be printed and t lie on the 'able. r Mr ALLEN submitted. seven ;mend- ineets intended to be proposed ,)y him to amendment No. 1701 propose to the bill tH.R. 8532t to amend the :iaytoll Act to permit State attorneys -eneral to bring certain antitrust attic .is, and for other purposes. AMENDMENTS NO [7:58 rHROUGit 1760 (Ordered to ire printed and i lie on the table.) Mr. HRUSKA submitted three .mend- merits intended to be proposed oy him to Amendment No. 1701, supra. AMki N , kLNr NUS. 1 tit (Ordered to i:u> printed and lie on the table.) Mr. BURDICK submitted an t,mend- ment intended to be proposed b him to alnendnient No. 17u1, c.upra. AMr,NDMENTS :.'.. l ,s2 a s,), All i,.4 (Ordered to printed and ' y lie on the table. ; Mr THURIVIOND submitte three amendments intended to be roposed by him to amendment No. 170 , supra. AtcENDMEN:., 7105. i, US AND -.66 (Ordered to lie printed and ) lie on the table.) Mr. PHILIP A HART (for himself and Mr, HucH SCOTT) submit pled two amendments intended to be prc ,osed by thef11 jointly to amendment 1 ?). 1701, Supt a. AME,7;OM11ENT N ). '.767 (Ordered to oe prfiit(a and r-- , lie on the table.) NOTICE OF HEARINGS ivIr.,METCALF. Mr. President, in ac- cordance with the rules of the Commit- tee on interior and Insular Affair, I- wish to advise my colleagues and the public that the following hearings and business meetings have been scheduled before the committee for .he next 2 i, .,1;ks: June 3. full committee. 10 a.m., r;ium .10, business meeting, pending calendar l usi- mass. June 7. Energy Research and .Pater Re- sources Subcommittee, 10 a.m.. room ;110, hearing. 5. 3394, to authorize engineering investigation, stabilization, and rehab.iita- tion of the Leadville Mine drainage tunr,"1. June 8. Minerals. Materials and Fuels :Sub- committee, 10 a.m., room 3110, hearing, s: etas report on U.N. Law of the Sea Confer ace. June 10, full committee, 10 it in., oom 3110, hearing, oversight hearing )n irnole-? inentation of Alaska Native Land Cilms Settlement Act. ;rune 1.1 Indian Affairs Subconi'nitte-. I0 a m., room 3110, hearing, oversight he:,?ing ,-),I Quechan Tribe land issue. June 14, full committee, 10 a no, - Loin 3110, hearing, oversight hearing on it,.ple.- Iims mentation of Alaska Native Land C Settlement Act. June 15, Energy Research and Water Re-- ,?urces Subcommittee, 10 a.m, room 1110, ,earing, S. 2194, to authorize the Secr'tary of the Interior to construct, operate; and maintain the McGee Creek project, tikla- home, H R. 6622, for repair of the Del City Aqueduct, Oklahoma. June 16, full committee, 10 a.ni., room :'110, business meeting. pending rain udar business, .lime 17. Parks and Recreation Sula_om- mittee, 10 a.m., room 3110, hearing, S. 2630, to amend the Youth Conservatln Corps Mlr. (RILES ior himself I.id Mr. Act of L970. RirrvlPERS) submitted an amend rent in- tended to be proposed by then L jointly NOTICE OF HEARINGS to amendment wio. 1701, supra. AMENDMENT'S N'iS i76?. THROD-G 17274 Mr. McINTYRE. Mr. President, I wvish (Ordered to c)e printed and It he or. to announce that the Subconun.ittl e on Financial Institutions of the Committee the table.) GRIFFIN subinitied sever Mr amend- on Banking, Housing and Urban Afairs . ti,ents intendea to be proposed v him to -;,ill hold hearings on S. 1343 on Jude 16 supra. 1701 amendment No :.id 17, 1976, in room 5302, Dirksen Sen- , . e Ofrlce Building, beginning at 10 a.m: A Yr1.*.NDMENT No. 1775 S. 1343 Is a bill to insure tha the ,Ordered to be printed and ) lie on disclosure by financial institutions c ,C the the table.) details of their customers' bank ac- Mr. MORGAN submitted ai amend?,- counts to government officials and ment intended to be proposed y him to agencies be governed by proce.aura,l antenciment No, I i01, supra. safeguards. AMENDMENTS NOS. 1776 AND 77 Anyone wishing information concern- Ordered to be printed and o lie oil ing these hearings should contact Mr. the table.) - William R. Weber, counsel. room 5300, Mr. JAVITS for himself, Mr HRUSKA. Dirksen Senate Office Building, 224- Mr. MATHrAS, and Mr. DOMEN -i) sub- 7391. Approved For Release 2006/10/20: CIA-RDP77M00144R000800120053-5