WATERGATE REORGANIZATION AND REFORM ACT- S. 495

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R000800120053-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 20, 2016
• Document Release Date: August 21, 2001
• Sequence Number: 53
• Publication Date: June 3, 1976
• Content Type: OPEN

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