98-425 ON H.R. 6954 TO PRESERVE AND PROMOTE ETHICAL STANDARDS OTHER PURPOSES BEFORE THE INVESTIGATIONS SUBCOMMITTEE OF THE COMMITTEE ON ARMED SERVICES FIRST SESSION SEPTEMBER 15, 1977 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1977 KF27 [H.A.S.C. No. 95-44] INVESTIGATIONS SUBCOMMITTEE HEARING ON H.R. 6954, TO HOUSE OF REPRESENTATIVES, COMMITTEE ON ARMED SERVICES, INVESTIGATIONS SUBCOMMITTEE, Washington, D.C., Thursday, September 15, 1977. The subcommittee met, pursuant to notice, at 9:15 a.m.. in room 2337, Rayburn House Office Building, Hon. Samuel E. Stratton (chairman of the subcommittee) presiding. Mr. STRATTON. The subcommittee will come to order. The business this morning, gentlemen, is to consider H.R. 6954, a bill to preserve and promote ethical standards throughout the executive branch of the Government. This bill was introduced by Chairman Rodino of the Judiciary Committee at the request of the administration. [H.R. 6954 is as follows:] [H.R. 6954, 95th Cong., 1st sess.] A BILL To preserve and promote ethical standards throughout the executive branch, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this act may be cited as the "Ethics in Government Act of 1977". TITLE I-GOVERNMENT PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS PERSONS REQUIRED TO FILE SEC. 101. (a) Upon assuming the position of an officer or employee designated in subsection (f), an individual shall file a report as required by subsection 102(b). (b) Upon the transmittal by the President to the Senate of the nomination of an individual to a position, appointment to which requires the advice and consent of the Senate, such individual shall file a report as required by subsection 102(b). (c) Upon becoming a candidate for nomination or election to the office of President or Vice President, as determined by the Federal Election Commission, an individual shall file a report as required by subsection 102(b). (d) Any individual who is an officer or employee designated in subsection (f) during any calendar year and performs the duties of his position or office for a period in excess of sixty days in that calendar year shall file on or before May 15 of the succeeding year a report as required by subsection 102 (a) . (e) Any individual who occupies a position designated in subsection (f), before leaving such position, shall file a report as required by subsection 102(a). unless such individual has accepted employment in another position designated in subsection (f). (f) The officers and employees referred to in subsections (a), (d), and (e) are (1) the President; (2) the Vice President; (1) (3) each officer or employee of an executive agency, as defined in section 105 of title 5, United States Code, including a special Government employee as defined in section 202 of title 18, United States Code, whose pay rate either is specified in subchapter II of chapter 53 of title 5, United States Code, or is at a comparable or greater pay rate under another authority; and (4) each officer or employee, including a special Government employee as defined in section 202 of title 18, United States Code, whose position is classified at GS-16, GS-17 or GS-18 of the General Schedule prescribed by section 5332 of title 5, United States Code, or who is in a comparable position under another authority; each member of a uniformed service whose pay grade is at or in excess of O-7 under section 1009 of title 37, United States Code; and each officer or employee in any other position determined to be of equal classification. (g) Reasonable extensions of time for filing any report may be granted under procedures prescribed by the Director of the Office of Government Ethics established by title II of this Act, but the total of such extensions shall not exceed ninety days. CONTENTS OF REPORTS SEC. 102. (a) Each report filed under subsections 101 (a) and (e) shall include a full and complete statement, in such manner and form as the Director of the Office of Government Ethics may prescribe, with respect to (1) the source and amount of: (A) each item of earned income or aggregate of such items from a single source totaling $100 or more, including any fee or other honorium received in connection with the preparation or delivery of any speech, attendance at any convention or meeting, or the preparation of any article for publication; and (B) any gift with a fair market value of more than $25 or gifts aggregating $250 or more from a single source, including transportation, lodging, food, or entertainment, other than political contributions otherwise required by law to be reported and gifts from a personal friend or relative with whom the reporting individual has no contact in the course of his official duties; (2) the source and category of value of income (other than earned income and gifts) received during the year which exceeds $100 in value or amount from any one source; (3) the identity and category of value of any personal property held, directly or indirectly, in a trade of business or for investment or the production of income, other than household furnishings, works of art, jewelry, and collections of stamps, coins, and similar items, and which has a fair market value of at least $1,000 at any time during the year; (4) the identity (except the address of a personal residence) and category of value of each item of real property held, directly or indirectly, which has a fair market value in excess of $1,000 at any time during the year; (5) the identity and category of value of each liability owed, directly or indirectly, or other than to a relative, which exceeds $2,500 at any time during the year; (6) the identity, date, and category of value of any direct or indirect transaction, other than with a spouse or minor child, in securities or commodities futures during the year which exceeds $1,000, except that the identity of the recipient of any gift to any tax-exempt organization described in section 501 (c) of the Internal Revenue Code of 1954 involved in such a transaction need not be reported; (7) the identity (except the address of a personal residence), date, and category of value of any direct or indirect purchase, sale, or exchange, other than a transaction with a spouse or minor child, of any interest in real property during the year which exceeds $1,000 in value as of the date of such purchase, sale, or exchange, except that the identity of the recipient of any gift to any tax-exempt organization described in section 501 (c) of the Internal Revenue Code of 1954 involved in such a transaction need not be reported; (8) any interest in a patent right, copyright, or mineral lease, and the nature of such interest, held during the year; (9) the identity of all positions held as an officer, director, trustee, partner, proprietor, representative, employee, or consultant of any corporation, company, firm, partnership, or other business enterprise, any nonprofit organization, and any educational or other institution: Provided, That this paragraph shall not require the reporting of positions held in any religious, social, fraternal, or political entity; (10) a description of the date, parties to, and terms of any agreement or arrangement with respect to: (A) future employment; (B) a leave of absence during the period of the reporting individual's Government service; (C) continuation of payments by a former employer other than the United States Government; and (D) continuing participation in an employee welfare or benefit plan maintained by a former employer. (b) Each report filed under subsections 101 (a), (b), and (c) shall include a full and complete statement, in such manner and form as the Director of the Office of Government Ethics may prescribe, with respect to information required by paragraphs (3), (4), (5), (8), (9), and (10) of subsection (a), as of the date of filing, and the sources and amounts of earned income and other payments for the year of filing and the preceding calendar year. (c) The categories for reporting the amount or value of the items covered in paragraphs (2) through (7) of subsection (a) are as follows: (1) up to $5,000; (2) from $5,000 to $15,000; (3) from $15,000 to $50,000; (4) from 50,000 to $100,000; and (5) greater than $100,000. (d) For purposes of paragraphs (1) through (8) of subsection (a), the report shall include the gifts, unearned income, and the source (but not amount) of earned income received by and the assets, transactions, and liabilities of a spouse and minor child occupying the household of the reporting individual. (e) The holdings of and the income from a trust or other financial arrangement from which the reporting individual, spouse, or minor child occupying the same household receives income or in which such person has a beneficial interest must be reported according to the provisions of this section: Provided, That if the beneficiary of the trust or arrangement does not have knowledge of the identity of the holdings and sources of income, the report shall so indicate and the reporting individual shall provide that the information will be submitted by the trustee or other appropriate person. FILING OF REPORTS SEC. 103. (a) Each officer and employee identified in subsection 101 (f) shall file the report required by this title with the designated official of his agency. (b) In addition, the President, the Vice President, the head of each agency, each Presidential appointee in the Executive Office of the President who is not subordinate to the head of an agency in that Office, and each full-time member of a committee, board, or commission appointed by the President shall submit a copy of his report to the Director of the Office of Government Ethics. (c) Each individual identified in subsection 101 (b) shall file the report required by this title with the agency in which he will serve and a copy of such report with the Director of the Office of Government Ethics. (d) Each individual identified in subsection 101 (c) shall file the report required by this title with the Federal Elections Commission. FAILURE TO FILE OR FALSIFYING REPORTS SEC. 194. (a) (1) Any individual who knowingly falsifies or fails to report any information required under section 102 shall be fined in an amount not exceeding $5,000 or imprisoned for not more than one year, or both. (2) The Attorney General may bring a civil action against any person who fails to file a report as required by section 101 or who fails to report any information which such person is required to report under section 102. The court in which such action is brought may assess against such person a penalty in any amount not to exceed $5,000. (b) The head of each agency and the Director of the Office of Government Ethics shall refer to the Attorney General the name of any individual they have reasonbale cause to believe has failed to file a report or has falsified or failed to file information required to be reported. |