FINANCIAL DISCLOSURE ACT HEARINGS BEFORE THE SUBCOMMITTEE ON ADMINISTRATIVE LAW OF THE COMMITTEE ON THE JUDICIARY NINETY-FOURTH CONGRESS SECOND SESSION H.R. 3249 FINANCIAL DISCLOSUR Serial Printed for the use of the Committee on the Judiciary U.S. GOVERNMENT PRINTING OFFICE COMMITTEE ON THE JUDICIARY PETER W. RODINO, Jr., New Jersey, Chairman V. ROBERT W. KASTENMEIER, Wisconsin ROBERT McCLORY, Illinois WILLIAM L. HUNGATE, Missouri CHARLES E. WIGGINS, California JOHN CONYERS, Jr., Michigan HAMILTON PISH, Jr., New York JOSHUA EILBERG, Pennsylvania M. CALDWELL BUTLER Virginia WALTER FLOWERS, Alabama WILLIAM S. COHEN, Maine JAMES R. MANN, South Carolina CARLOS J. MOORHEAD, California PAUL S. SARBANES, Maryland JOHN M. ASHBROOK, Ohio JOHN F. SEIBERLING, Ohio HENRY J. HYDE, Illinois GEORGE E. DANIELSON, California THOMAS N. KINDNESS, Ohio ROBERT F. DRINAN, Massachusetts Earl C. Dudley, Jr., General Counsel Herbert Fuchs, Counsel William P. Shattdck, Counsel Alan A. Parker, Counsel Maurice A. Barboza, Counsel Arthur P. Endres, Jr., Counsel Thomas W. Hutchison, Counsel Daniel L. Cohen, Counsel Franklin G. Polk, Counsel Thomas E. Mooney, Counsel Alexander B. Cook, Counsel Alan F. Coffey, Jr., Counsel Kenneth N. Klee, Counsel ''raymond V. Smietanka, Counsel Thomas M. Boyd, Counsel Subcommittee On Administrative Law And Governmental Relations WALTER FLOWERS, Alabama, Chairman GEORGE E. DANIELSON, California CARLOS J. MOORHEAD, California BARBARA JORDAN, Texas THOMAS N. KINDNESS, Ohio ROMANO L. MAZZOLI, Kentucky William P. Shattuck, Counsel (ID CONTENTS Hearings held on— Page July 28, 1976.. 1 July 29, 1976 45 Text of— H.R. 3249 2 Witnesses— Albrecht, Richard R., General Counsel, Department of the Treasury. 105 Prepared statement 106 Ambro, Hon. Jerome A., a Representative from the State of New York 41 Prepared statement 41 Boiling, Hon. Richard, a Representative from the State of Missouri. _ 32 Cohen, David, president, Common Cause 174 Prepared statement 179 Fascell, Hon. Dante B., a Representative from the State of Florida.- 38 Prepared statement 39 Goodman, Carl, General Counsel, Civil Service Commission 109 Prepared statement 111 Hechler, Hon. Ken, a Representative from the S tate of West Virginia. . 45 Prepared statement 48 Hughes, Hon. William J., a Representative from the State of New Jersey 36 Prepared statement 36 Imlay, Carl H., General Counsel, Administrative Office, U.S. Courts.. 79 Prepared statement 83 Kastenmeicr, Hon. Robert W., a Representative from the State of Wisconsin 13 Prepared statement 9 Lawton, Mary, Deputy Assistant Attorney General, Office of Legal Counsel 70 Prepared statement 73 Pattison, Hon. Edward W., a Representative from the State of New York 34 Pitt, Harvey, General Counsel, Securities and Exchange Commission. 96 Prepared statement 102 Staats, Hon. Elmer B., Comptroller General of the United States 51 Prepared statement .. 60 Steelman, Hon. Alan, Representative from the State of Texas 20 Prepared statement 17 Wiley, Richard A., General Counsel, Department of Defense 113 Prepared statement 117 Additional material— Postal Rate Commission re comments on H.R. 3249 220 Privacy Protection Study Commission, letter dated August 23, 1976, to Hon. Peter W. Rodino, Jr 221 Regulation Regarding Conduct of Members and Employees and Additional statements— Abzug, Hon. Bella S., a Representative from the State of New York. _ 185 California ... 186 Baldus, Hon. Alvin, a Representative from the State of Wisconsin 187 Bennett, Hon. Charles E., a Representative trem the State of Florida - 188 Michigan 189 Brodhead, Hon. William M., a Representative from the State of Michigan 189 (in) Additional statements—Continued Paee Case, Hon. Clifford P., a Senator from the State of New Jersey 13 D'Amours, Hon. Norman E., a Representative from the State of NewHampshire 190 Downey, Hon. Thomas J., a representative from the State of New York 191 duPont, Hon. Pierre S., a Representative from the State of Delaware.. 192 Edwards, Hon. Don, a Representative from the' State of California 193 Emery, Hon. David F., a Representative from the State of Maine 194 Evans, Hon. David W., a Representative from the State Indiana 196 Fisher, Hon. Joseph L., a Representative from the State of Virginia 196 Fithian, Hon. Floyd J., a Representative from the State of Indiana 198 Gilman, Hon. Benjamin A., a Representative from the State of New York 199 Green, Hon. William J., a Representative from the State of Pennsylvania , 200 Harris, Hon. Herbert E., II, a Representative from the State of Virginia ._ 200 Jenrette, Hon. John W., Jr., a Representative from the State of South Carolina 202 Keys, Hon. Martha, a Representative from the State of Kansas 202 Koch, Hon. Edward I., a Representative from the State of New York. 204 Lent, Hon. Norman F., a Representative from the State of New York. 205 Lloyd, Hon. Marilyn, a Representative from the State of Tennessee 206 Moakley, Hon. Joe, a Representative from the State of Massachusetts. 206 Myers, Gary A., a Representative from the State of Pennsylvania 207 Ottinger, Hon. Richard L., a Representative from the State of New York 208 Pressler, Hon. Larry, a Representative from the State of South Dakota 209 Quie, Hon. Albert H., a Representative from the State of Minnesota.. 210 Rangel, Hon. Charles B., a Representative from the State of New York 211 Richmond, Hon. Frederick W., a Representative from the State of New York 212 Rinaldo, Hon. Matthew J., a Representative from the State of New Jersey 214 Santini, Hon. Jim, a Representative from the State of Nevada 215 Tsongas, Hon. Paul E., a Representative from the State of Massachusetts 216 Vander Veen, Hon. Richard F., a Representative from the State of Michigan 217 Wirth, Hon. Timothy E., a Representative from the State of Colorado. 218 FINANCIAL DISCLOSURE ACT WEDNESDAY, JULY 28, 1976 House Of Representatives, And Governmental Relations Washington, D.O. The subcommittee met, pursuant to notice, at 10:30 a.m., in room 2141 Rayburn House Office Building, the Honorable Walter Flowers [chairman of the subcommittee] presiding. Present: Representatives Flowers, Danielson, Mazzoli, Pattison, Moorhead, and Kindness. Also present: William P. Shattuck, counsel; and Alan F. Coffey, Jr., associate counsel. Mr. Flowers. We will call this meeting to order today. The subcommittee begins consideration of H.R. 3249, the Financial Disclosure Act of 1976 and related measures dealing with the same subject. Briefly, this legislation covers the President, the Vice President, Members of Congress, candidates for Federal office, Federal employees earning more than $25,000 per year, civil service employees at or about the rank of GS-16, and members of the Armed Forces at or above grade 0-6. Those persons and their spouses, under the legislation, would be required to disclose annually the amount and source of their income, the identity of assets of over $1,000; the amount of each liability over $1,000; any transactions in securities if the aggregate exceeds $1,000; and the purchase or sale of real property in excess of $1,000. Any person who willfully fails to file a report, or files a false report could be fined up to $2,000 or imprisoned for 5 years. The provisions of H.R. 3249 are similar in many respects to the financial disclosure provisions included in S. 495, the Watergate Reorganization and Reform Act, which was passed by the Senate only last week. The idea of requiring of Federal officials and employees to disclose information about their finances is not new. Many persons in the Federal Government already are required under one rule or another to disclose some of their financial dealings. We, who serve in the House, for example, have been subject to at least some degree of financial disclosure in our rules for the past several years. We must report much of our outside income along with informaiton about capital gains and unsecured loans. [A copy of H.R. 3249 follows:] (l) |