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CONGRESSIONAL GIFT REFORM Y4.R 86/1:C 76/15 Congressional Gift Reforn^ 104-1 He... ±iii.AKlNGS BEFORETHE COMMITTEE ON RULES HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTH CONGRESS FIRST SESSION ON H. RES. 250 AMENDING THE RULES OF THE HOUSE OF REPRESENTATIVES TO PROVIDE FOR GIFT REFORM NOVEMBER 2 AND 7, 1995 Printed for the use ofthe Committee on Rules U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1996 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice,Washington.DC 20402 ISBN 0-16-052593-4 CONGRESSIONAL GIFT REFORM Y4.R86/1:C 76/15 Congressional Gift Reforn, 104-1 He... ±iii.AKlNGS BEFORETHE COMMITTEE ON RULES HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTH CONGRESS FIRST SESSION ON H. RES. 250 AMENDING THE RULES OF THE HOUSE OF REPRESENTATIVES TO PROVIDE FOR GIFT REFORM NOVEMBER 2 AND 7, 1995 Printed for the use ofthe Committee on Rules '^^'S 6 1996 J U.S. GOVERNMENT PRINTING OFFICE 22-934CC WASHINGTON : 1996 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402 ISBN 0-16-052593-4 COMMITTEE ON RULES GERALD B.H. SOLOMON, NewYork.Chairman JAMES H. QUILLEN,Tennessee JOHNJOSEPH MOAKLEY, MaBsachuaetU DAVID DREIER.California ANTHONYC. BEILENSON,California PORTERGOSS. Florida MARTIN FROST.Texas JOHNLINDER.Georgia TONY P. HALL. Ohio DEBORAH PRYCE.Ohio LINCOLNDIAZ-BALART. Florida SCOTTMcINNIS. Colorado ENTD GREENE, UUh DonWolfensberger. ChiefofStaff GeorgeC.Crawford.MinorityStaffDirector Subcommittee on Legislative and Budget Process PORTERGOSS. Florida, Chairman JAMES H. QUILLEN,Tennessee MARTIN FROST.Texas JOHNLINDER, Georgia JOHNJOSEPH MOAKLEY. MassachuaetU DEBORAH PRYCE.Ohio GERALD B.H. SOLOMON. New York WendySEUG, Counsel KRlsn Walseth.MinorityStaffDirector Subcommittee on Rules and Organization ofthe House DAVID DREIER, California.Chairman LINCOLNDIAZ-BALART, Florida ANTHONYC. BEILENSON. California SCOTTMcINNIS, Colorado TONY P. HALL. Ohio ENID GREENE. UUh GERALD B.H. SOLOMON, New York VincentRaNDAZZO, Counsel MeussaRice Kuckro.Minority Counsel (II) CONTENTS P-ge November 2, 1996 OpeningstatementofHon. GeraldB.H. Solonion,chairmanoftheCommittee onRules. 2 Opening statement of Hon. Martin Frost, a member of the Committee on Rules. 3 Opening statement of Hon. Porter J. Goss, a member of the Committee onRules,submittedfortherecord. 3 Statementof: Waldholtz, Hon. Enid G., a Representative in Congress from the State ofUtah 5 Barrett, Hon. Thomas M., a Representative in Congress from the State ofWisconsin 7 Shays, Hon. Christopher, a Representative in Congress from the State ofConnecticut(preparedstatementp.9) 8 Burton, Hon. Dan, a Representative in Congress from the State ofIndi- ana 32 Brewster, Hon. Bill K., a Representative in Congress from the State ofOklahoma 42 Miller, Hon. George, a Representative in Congress from the State of California(preparedstatementp.47) 45 Bryant,Hon.John,aRepresentativeinCongressfromtheStateofTexas 50 Fazio,Hon.Vic,aRepresentativeinCongressfromtheStateofCalifornia (preparedstatementp.55) 52 De Lauro, Hon. Rosa, a Representative in Congress from the State of Connecticut(preparedstatementp. 59) 57 Klug, Hon. Scott L., a Representative in Congress from the State of Wisconsin 60 Castle, Hon. Michael N., a Representative in Congress from the State ofDelaware(preparedstatementp.62) 61 Statementsubmittedfortherecord: Hoekstra, Hon. Peter, a Representative in Congress from the State of Michigan 4 Additional materialsubmittedfortherecord: OutlinesubmittedbyRepresentativeBurton 40 November 7, 1995 Statementof: Johnson, Hon. Nancy L, a Representative in Congress from the State ofConnecticut(preparedstatementp.67) 65 Mann,ThomasE.,The BrookingsInstitution(preparedstatementp.77) ... 76 Thurber, James A., Director, Center for Congressional and Presidential Studies,TheAmericanUniversity(preparedstatementp.80) 79 Mason, David M., Vice President, (iovemment Relations, The Heritage Foundation(preparedstatementp.83) 82 Claybrook,Joan,President,PublicCitizen(preparedstatementp.97) 94 McBride,Ann,President,CommonCause(preparedstatementp. 102) 100 IV P.«e Andrews, Wright, President, American League of Lobbyists (prepared Brsotwant,emReinchtapr.d,11C9h)airmanEmeritus, L•euk•emi:a••••R••esearcVh"ilV--^-injd";(prepared1 statementp.126) 125 AdditLLieeottLnt.taeeJlrromfsharuntbosemomriniEt,a.tlaeDndsodunbbayRmlaiSdnttktAaieinndndggaferoD,rdesTtmhhooeecfrrOMafetGfciioIccriSdaMlCeComombnpedarunciHteosnC.haJiirmmaMnc,DtHetornm.otNxttancy 17104 H. RES. 250, TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES TO PROVIDE FOR GIFT REFORM Thursday, November 2, 1995. House of Representatives, CoMMirrEE ON Rui£S, Washington, DC. The committee met, pursuant to call, at 10:09 a.m., in room H- 313, The Capitol, Hon. Gerald B.H. Solomon [chairman ofthe committee] presiding. Present: Representatives Solomon, Dreier, Goss, Pryce, Mclnnis, Waldholtz, Beilenson, Frost, and Hall. The Chairman. This meeting of the Rules Committee will come to order. We are here today to consider amending the Rules ofthe House ofRepresentatives providingforgift reform. Before we get started, I made a pun about the late Tony Beilen- son, and Tony Beilenson has given me a hard time ever since I came on this committee some 8 years ago. Mr. Beilenson. Nothingyou did notdeserve, Mr. Chairman. The Chairman. That, ofcourse, is being facetious. But Tony, we read an announcement in the paper that you are not going to seek reelection. And you have been one of the most valuable Members ofthis committee, and as far as I am concerned, ofthe entire institution for so many years. I actually did have some tears in my eyes when you told me about that. Mr. Beilenson. That is kind ofyou, Mr. Chairman. The Chairman. I feel very, very badly that you are not going to be here, because you are a levelheaded force that tends to take people that are emotional, like me, and say, wait a minute, let's look at both sides. And that is invaluable in this Membership, and we are really goingto miss you, Tony. Mr. Beilenson. I appreciate yourkind words. Mr. Chairman, it was a difficult choice for me, but I will be around all next year to try to keep you in line as long as I possibly can. I was hopingRoll Call, which usually is quite good about these things, printed my entire statement. You folks don't know that I S£ud that if you had to come up to be sort of closed into a small room almost every day of the week with such people as Solomon, Quillen, Dreier, Goss, et. al., you would give serious consideration to leaving, too. (1) I purposely exempted the new Members because they seem like a pretty good bunch. But I remember when the four of you were overhere, we had to put up with you year afteryear. I thankyou, Mr. Chairman, foryourkind words. OPENING STATEMENTOFHON. GERALDB.H. SOLOMON, CHAIRMANOFTHE COMMITTEE ONRULES The Chairman. Thank you. The bill before us today was originally referred to the Ethics Committee, the committee of original jurisdiction. However, because ofthe agenda for the Ethics Committee being as crowded as it is, in order to expedite the legislation and to deal with it before we adjourn this year, the Republican leadership and Mr. Gingrich, our Speaker, asked this committee if we would take original jurisdiction ifthey were to redirect it to us. And although we have had an extremely busy agenda ourselves for this entire 10 months, we wanted to do this because we do want to expedite it. We do not have the expertise perhaps ofthe Committee on Offi- cial Standards and Conduct, but nevertheless, we have worked closely with them. We held a briefing last night with Members of the Congressional Research Service and with tne Ethics Committee staffto bring us up to date and our staffup to date, and that was, I don't know about the rest ofyou, it was extremely helpful to me to be able to understand this entire issue and to coordinate it with whatthe Senatehas done. On this committee we do have Enid Waldholtz who is afreshman Member ofthe Congress and a new Member ofthis Rules Commit- tee, but she has been an activist and a leader in pursuing reforms ofthe gift rules. She has introduced H. Res 250, which is identical to the Senate bill. We are going to receive testimony today on that bill. We do not have jurisdiction over the lobbyist legislation or over campaign fi- nancial reform, so we are going to hold this discussion to this par- ticular issue. We are somewhat under the gun and to expedite the legislation. As I said, yesterday we had a meeting with both sides ofthe aisle and their staffs with the CRS and with the Ethics Com- mittee. Today, we are having the first hearing for Members ofCongress only. Next Tuesday, November 7th, we will have a Rules Commit- tee hearing with outside witnesses from the public sector and pri- vate sector and—tentatively we plan to mark up this legislation, this rule change, on ^Thursday, November 9th, at 10 a.m. I hope that we can get that done. As the testimony will no doubt bring out, there have been many technical questions that have arisen oased on the Senate-passed legislation, and when we bring this to the House we would hope to have it in final form. Under such rushed circumstances, I don't know that we are going to have a perfect bill but we are going to try to make it as perfect as we can. So that is the purpose ofthis hearing. Hopefully, we won't have to delay the markup next Thursday, November 10th, because in doing that, we have problems with the Thanksgiving recess coming along, and Congressman Armey, our Majority leader, wanted us to deal with this prior to the November 16th recess period. So having said that, I would first recognize Enid Waldholtz, a member ofthis committee. And, Enid, feel free to summarize, andyour entire statement will appear in the record without objection, as well as Mr. Barrett's and Mr. Shays' statements as well. Mr. Frost. Mr. Chairman. The Chairman. I am sorry, Mr. Frost. Mr. Frost. Could I make a briefopening statement? The Chairman. You most certainly may. OPENINGSTATEMENTOFHON. MARTINFROST,AMEMBEROF THE COMMITTEE ON RULES Mr. Frost. And I am not at all trying to be critical of Mrs. Waldholtz. There was some discussion on the Floor, I believe it was yesterday, itmay have been the day before. It is hard to keep track of days around here. There was reference to the bipartisan task force that was set up in 1989 to deal with this issue. Enid, I don't remember, you were the one who made the remarks or someone on your side made the remarks. I was a Member ofthat bipartisan task force in 1989 that dealt with the gift issue and it was —equally divided between Democrats and Republicans. There were it was Chaired by Vic Fazio from California and the Vice Chair was Lynn Martin, a Republican Member. And, in fact, Ms. Martin presided from time to time because it was equally divided. There were significant changes made in the law as a result of that task force on a bipartisan basis. So there was progress made at that point and there was some reference to that size ofthe ex- ception that was made by that bipartisan task force. That was actually a significant adva—nce forward in terms of what the law had been. And Ijust want to it is important in terms ofhistorical per- spective for Members who were not here who did not participate. And I don't know, I don't recall, quite frankly, ifany ofthe other Members on your side of the aisle. Republican side, who are cur- rently on the Rules Committee, were on that task force. I haven't reviewed a list. But it did have key Members on the Republican side and it was, in fact, evenly divided. And we did make some fair- ly significant changes at that time in terms of what the Members could do and could not do. We did not go all the way to the point that is being discussed today. Things don't happen in a vacuum and there was some good work that was done by that task force. Obviously, what we are trying to do is build on that work. But I would hope that Members would review the record ofthat task force, which I think was posi- tive in terms ofhow we got to where we are today. The Chairman. Martin, thank you very much. Were there other statements before we get into the testimony? Mr. Goss. Mr. Chairman, I would like to submit mine for the record in order to save time. The Chairman. Withoutobjection. [The prepared statement ofMr. Goss follows:] — PreparedStatementofHon.PorterJ.CJoss,amemberoftheCommitteeon Rules Mr.Chairman: I ampleasedthatwehavethisopportunitytohearfromMembers aboutasubjectthatimpactsufX)neveryoneofusandallofourstaff. Because ofthe unique nature ofthejobs that we do and the types ofsituations we encounter, writinggift restrictions forthe House is not nearlyaseasy asit may seem. Our Rules Committee members and our Ethics Committee members have beengrappl—ingwith the intricacies andthe complexitiesofthe proposal beforeus H.Res.2^) whichisidenticaltowhattheSenatepassed98-0.Onmanyoccasions, Membershavebeen scratchingtheirheads in puzzlementaswehave triedto work throughthehypotheticalsandunderstandwhatallthismeans. Myviewisthatthisisnotanearthshakingevent-truthfullywehavemanymore importantthingstodo. But, atthesametoken, there is aperception amongAmeri- cans thatwe shouldtighten these restrictions-andthere are manyMembers who believethatstrengthenmgtherulesandprovidingadditionalclarityisaworthwhile endeavor. Andso,here we are, fulfillingourcommitmentto movegiftreformtothe floorbyNovember16. In myoffice, we decidedthat wedo notwantto deal with thegrayareas andthe endless questions about what may or may not be construed as a gift or a trip or a meal we shouldn't accept. And so, neither I nor my staffaccept anything along thoselines. Ifwedotraveloreatorgolf, wedoso atourownexpense.Iunderstand that this is significantly more stringent than may be necessary and I also understand that this may not be workable for all Members. I firmly believe that most Members are honest, sincere, hard-working, and not for sale. But Ijust as firmly believe that our constituents want us to do more work in this area. That is why we are here and for providing us with the starting vehicle, I commend Mrs. Waldholtzforherperseverance. AndsowebeginwithamirrorimageoftheSenate product,whichasweallknow, is not perfect. Clearly, this productcan and shouldbeimproved, forgreaterclarity, for more reasonableness and for increased effectiveness. That's what this process, isallabout.Ilook forwardtothetestimony. Mr. Goss. May I also submit for the record, Mr. Peter Hoekstra of Michigan's statement for the record, which he is unable to be here to testify, but he is the Chairman of the task force on Con- gressional Reform. The Chairman. Withoutobjection, also. [The prepared statement ofMr. Hoekstra follows:] PreparedStatementofHon.PeterHoekstra,aRepresentativeinCongress FromtheStateofMichigan ThankyouMr. Chairman, As headofthe recently appointed Republican LeadershipTask Force on Reform, I wantto share withyou mythoughtsongiftreformlegislationand where Ibelieve we needtogobasedon numerousdiscussionswithcolleagues. The vision ofthe House Republicans, and, I believe, the Democrats, is to restore the trust ofthe American People in theirgovernment, and specifically in Congress. We have been told that only 31 percent ofthe American public trust Congress. Whilethat'sabouttwiceashighasourratingwasayearago,itisstillabadrating. The American people still believe special interests have too much influence in the fwlitical processandtheyfeelisolatedfromdecision-makinginWashington. TTiieaverageAmericanthinksthe pricetagforaccesstopublicofficialsistoohigh. They want to see genuine reform ofthe political process and protect the integrity ofthelawswhichgovernthem. We are here today to discuss gift reform legislation. While I believe this is very hiampvoerdtaonnteallegriesaldaytitohni,sIyetahrintkorweefomrmusWtasrheivnigetwoni,t ianndthiedecaosntwehxitchofweevweirlyltchoinnsgidweer nextyeartofurtherrestorethetrustoftheAmerican peopleintheprocess. In the past year, we in the House have done many things to improve the way Washington works. We proposed the Contract with America, we were elected to enact that Contract and have done so. We kept our oromises. Next, we promised to approve a budget plan that would balance the federal budget within 7 years. Withouractionslastweek,wehavecompletedthatjob.Nowwearemovingforward withourvision, as Istatedbefore,torestorethetrustthroughinternalanaexternal reformsofCongress.