[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 120 Agreed to Senate (ATS)]







104th CONGRESS
  1st Session
S. RES. 120

   Establishing a special committee administered by the Committee on 
    Banking, Housing, and Urban Affairs to conduct an investigation 
involving Whitewater Development Corporation, Madison Guaranty Savings 
 and Loan Association, Capital Management Services, Inc., the Arkansas 
       Development Finance Authority, and other related matters.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 17 (legislative day, May 15), 1995

    Mr. D'Amato (for himself and Mr. Dole) submitted the following 
             resolution; which was considered and agreed to

_______________________________________________________________________

                               RESOLUTION


 
   Establishing a special committee administered by the Committee on 
    Banking, Housing, and Urban Affairs to conduct an investigation 
involving Whitewater Development Corporation, Madison Guaranty Savings 
 and Loan Association, Capital Management Services, Inc., the Arkansas 
       Development Finance Authority, and other related matters.
    Resolved, 

SECTION 1. ESTABLISHMENT OF SPECIAL COMMITTEE.

    (a) Establishment.--There is established a special committee 
administered by the Committee on Banking, Housing, and Urban Affairs to 
be known as the ``Special Committee to Investigate Whitewater 
Development Corporation and Related Matters'' (hereafter in this 
resolution referred to as the ``special committee'').
    (b) Purposes.--The purposes of the special committee are--
            (1) to conduct an investigation and public hearings into, 
        and study of, whether improper conduct occurred regarding the 
        way in which White House officials handled documents in the 
        office of White House Deputy Counsel Vincent Foster following 
        his death;
            (2) to conduct an investigation and public hearings into, 
        and study of, the following matters developed during, or 
        arising out of, the investigation and public hearings concluded 
        by the Committee on Banking, Housing, and Urban Affairs prior 
        to the adoption of this resolution--
                    (A) whether any person has improperly handled 
                confidential Resolution Trust Corporation (hereafter in 
                this resolution referred to as the ``RTC'') information 
                relating to Madison Guaranty Savings and Loan 
                Association or Whitewater Development Corporation, 
                including whether any person has improperly 
                communicated such information to individuals referenced 
                therein;
                    (B) whether the White House has engaged in improper 
                contacts with any other agency or department in the 
                Government with regard to confidential RTC information 
                relating to Madison Guaranty Savings and Loan 
                Association or Whitewater Development Corporation;
                    (C) whether the Department of Justice has 
                improperly handled RTC criminal referrals relating to 
                Madison Guaranty Savings and Loan Association or 
                Whitewater Development Corporation;
                    (D) whether RTC employees have been improperly 
                importuned, prevented, restrained, or deterred in 
                conducting investigations or making enforcement 
                recommendations relating to Madison Guaranty Savings 
                and Loan Association or Whitewater Development 
                Corporation; and
                    (E) whether the report issued by the Office of 
                Government Ethics on July 31, 1994, or related 
                transcripts of deposition testimony--
                            (i) were improperly released to White House 
                        officials or others prior to their testimony 
                        before the Committee on Banking, Housing, and 
                        Urban Affairs pursuant to Senate Resolution 229 
                        (103d Congress); or
                            (ii) were used to communicate to White 
                        House officials or to others confidential RTC 
                        information relating to Madison Guaranty 
                        Savings and Loan Association or Whitewater 
                        Development Corporation;
            (3) to conduct an investigation and public hearings into, 
        and study of, all matters that have any tendency to reveal the 
        full facts about--
                    (A) the operations, solvency, and regulation of 
                Madison Guaranty Savings and Loan Association, and any 
                subsidiary, affiliate, or other entity owned or 
                controlled by Madison Guaranty Savings and Loan 
                Association;
                    (B) the activities, investments, and tax liability 
                of Whitewater Development Corporation and, as related 
                to Whitewater Development Corporation, of its officers, 
                directors, and shareholders;
                    (C) the policies and practices of the RTC and the 
                Federal banking agencies (as that term is defined in 
                section 3 of the Federal Deposit Insurance Act) 
                regarding the legal representation of such agencies 
                with respect to Madison Guaranty Savings and Loan 
                Association;
                    (D) the handling by the RTC, the Office of Thrift 
                Supervision, the Federal Deposit Insurance Corporation, 
                and the Federal Savings and Loan Insurance Corporation 
                of civil or administrative actions against parties 
                regarding Madison Guaranty Savings and Loan 
                Association;
                    (E) the sources of funding and the lending 
                practices of Capital Management Services, Inc., and its 
                supervision and regulation by the Small Business 
                Administration, including any alleged diversion of 
                funds to Whitewater Development Corporation;
                    (F) the bond underwriting contracts between 
                Arkansas Development Finance Authority and Lasater & 
                Company; and
                    (G) the lending activities of Perry County Bank, 
                Perryville, Arkansas, in connection with the 1990 
                Arkansas gubernatorial election;
            (4) to make such findings of fact as are warranted and 
        appropriate;
            (5) to make such recommendations, including recommendations 
        for legislative, administrative, or other actions, as the 
        special committee may determine to be necessary or desirable; 
        and
            (6) to fulfill the constitutional oversight and 
        informational functions of the Congress with respect to the 
        matters described in this section.

SEC. 2. MEMBERSHIP AND ORGANIZATION OF THE SPECIAL COMMITTEE.

    (a) Membership.--
            (1) In general.--The special committee shall consist of--
                    (A) the members of the Committee on Banking, 
                Housing, and Urban Affairs; and
                    (B) the chairman and ranking member of the 
                Committee on the Judiciary, or their designees from the 
                Committee on the Judiciary.
            (2)  Senate rule xxv.--For the purpose of paragraph 4 of 
        rule XXV of the Standing Rules of the Senate, service of a 
        Senator as the chairman or other member of the special 
        committee shall not be taken into account.
    (b) Organization of Special Committee.--
            (1) Chairman.--The chairman of the Committee on Banking, 
        Housing, and Urban Affairs shall serve as the chairman of the 
        special committee (hereafter in this resolution referred to as 
        the ``chairman'').
            (2) Ranking member.--The ranking member of the Committee on 
        Banking, Housing, and Urban Affairs shall serve as the ranking 
        member of the special committee (hereafter in this resolution 
        referred to as the ``ranking member'').
            (3) Quorum.--A majority of the members of the special 
        committee shall constitute a quorum for the purpose of 
        reporting a matter or recommendation to the Senate. A majority 
        of the members of the special committee, or one-third of the 
        members of the special committee if at least one member of the 
        minority party is present, shall constitute a quorum for the 
        conduct of other business. One member of the special committee 
        shall constitute a quorum for the purpose of taking testimony.
    (c) Rules and Procedures.--Except as otherwise specifically 
provided in this resolution, the special committee's investigation, 
study, and hearings shall be governed by the Standing Rules of the 
Senate and the Rules of Procedure of the Committee on Banking, Housing, 
and Urban Affairs. The special committee may adopt additional rules or 
procedures not inconsistent with this resolution or the Standing Rules 
of the Senate if the chairman and ranking member agree that such 
additional rules or procedures are necessary to enable the special 
committee to conduct the investigation, study, and hearings authorized 
by this resolution. Any such additional rules and procedures shall 
become effective upon publication in the Congressional Record.

SEC. 3. STAFF OF THE SPECIAL COMMITTEE.

    (a) Appointments.--To assist the special committee in the 
investigation, study, and hearings authorized by this resolution, the 
chairman and the ranking member each may appoint special committee 
staff, including consultants.
    (b) Assistance From the Senate Legal Counsel.--To assist the 
special committee in the investigation, study, and hearings authorized 
by this resolution, the Senate Legal Counsel and the Deputy Senate 
Legal Counsel shall work with and under the jurisdiction and authority 
of the special committee.
    (c) Assistance From the Comptroller General.--The Comptroller 
General of the United States is requested to provide from the General 
Accounting Office whatever personnel or other appropriate assistance as 
may be required by the special committee, or by the chairman or the 
ranking member.

SEC. 4. PUBLIC ACTIVITIES OF THE SPECIAL COMMITTEE.

    (a) In General.--Consistent with the rights of persons subject to 
investigation and inquiry, the special committee shall make every 
effort to fulfill the right of the public and the Congress to know the 
essential facts and implications of the activities of officials of the 
United States Government and other persons and entities with respect to 
the matters under investigation and study, as described in section 1.
    (b) Duties.--In furtherance of the right of the public and the 
Congress to know, the special committee--
            (1) shall hold, as the chairman (in consultation with the 
        ranking member) considers appropriate and in accordance with 
        paragraph 5(b) of rule XXVI of the Standing Rules of the 
        Senate, hearings on specific subjects, subject to consultation 
        and coordination with the independent counsel appointed 
        pursuant to chapter 40 of title 28, United States Code, in 
        Division No. 94-1 (D.C. Cir. August 5, 1994) (hereafter in this 
        resolution referred to as ``the independent counsel'');
            (2) may make interim reports to the Senate as it considers 
        appropriate; and
            (3) shall make a final comprehensive public report to the 
        Senate which contains--
                    (A) a description of all relevant factual 
                determinations; and
                    (B) recommendations for legislation, if necessary.

SEC. 5. POWERS OF THE SPECIAL COMMITTEE.

    (a) In General.--The special committee shall do everything 
necessary and appropriate under the laws and the Constitution of the 
United States to conduct the investigation, study, and hearings 
authorized by section 1.
    (b) Exercise of Authority.--The special committee may exercise all 
of the powers and responsibilities of a committee under rule XXVI of 
the Standing Rules of the Senate and section 705 of the Ethics in 
Government Act of 1978, including the following:
            (1) Subpoena powers.--To issue subpoenas or orders for the 
        attendance of witnesses or for the production of documentary or 
        physical evidence before the special committee. A subpoena or 
        order may be authorized by the special committee or by the 
        chairman with the agreement of the ranking member, and may be 
        issued by the chairman or any other member of the special 
        committee designated by the chairman, and may be served by any 
        person designated by the chairman or the authorized member 
        anywhere within or outside of the borders of the United States 
        to the full extent permitted by law. The chairman, or any other 
        member of the special committee, is authorized to administer 
        oaths to any witnesses appearing before the special committee. 
        If a return on a subpoena or order for the production of 
        documentary or physical evidence is incomplete or accompanied 
        by an objection, the chairman (in consultation with the ranking 
        member) may convene a meeting or hearing to determine the 
        adequacy of the return and to rule on the objection. At a 
        meeting or hearing on such a return, one member of the special 
        committee shall constitute a quorum. The special committee 
        shall not initiate procedures leading to civil or criminal 
        enforcement of a subpoena unless the person or entity to whom 
        the subpoena is directed refuses to produce the required 
        documentary or physical evidence after having been ordered and 
        directed to do so.
            (2) Compensation authority.--To employ and fix the 
        compensation of such clerical, investigatory, legal, technical, 
        and other assistants as the special committee, or the chairman 
        or the ranking member, considers necessary or appropriate.
            (3) Meetings.--To sit and act at any time or place during 
        sessions, recesses, and adjournment periods of the Senate.
            (4) Hearings.--To hold hearings, take testimony under oath, 
        and receive documentary or physical evidence relating to the 
        matters and questions it is authorized to investigate or study. 
        Unless the chairman and the ranking member otherwise agree, the 
        questioning of a witness or a panel of witnesses at a hearing 
        shall be limited to one initial 30-minute turn each for the 
        chairman and the ranking member, or their designees, including 
        majority and minority staff, and thereafter to 10-minute turns 
        by each member of the special committee if 5 or more members 
        are present, and to 15-minute turns by each member of the 
        special committee if fewer than 5 members are present. A member 
        may be permitted further questions of the witness or panel of 
        witnesses, either by using time that another member then 
        present at the hearing has yielded for that purpose during the 
        yielding member's turn, or by using time allotted after all 
        members have been given an opportunity to question the witness 
        or panel of witnesses. At all times, unless the chairman and 
        the ranking member otherwise agree, the questioning
         shall alternate back and forth between members of the majority 
party and members of the minority party. In their discretion, the 
chairman and the ranking member, respectively, may designate majority 
or minority staff to question a witness or a panel of witnesses at a 
hearing during time yielded by a member of the chairman's or the 
ranking member's party then present at the hearing for his or her turn.
            (5) Testimony of witnesses.--To require by subpoena or 
        order the attendance, as a witness before the special committee 
        or at a deposition, of any person who may have knowledge or 
        information concerning any of the matters that the special 
        committee is authorized to investigate and study.
            (6) Immunity.--To grant a witness immunity under sections 
        6002 and 6005 of title 18, United States Code, provided that 
        the independent counsel has not informed the special committee 
        in writing that immunizing the witness would interfere with the 
        ability of the independent counsel successfully to prosecute 
        criminal violations. Not later than 10 days before the special 
        committee seeks a Federal court order for a grant of immunity 
        by the special committee, the Senate Legal Counsel shall cause 
        to be delivered to the independent counsel a written request 
        asking the independent counsel promptly to inform the special 
        committee in writing if, in the judgment of the independent 
        counsel, the grant of immunity would interfere with the ability 
        of the independent counsel successfully to prosecute criminal 
        violations. The Senate Legal Counsel's written request of the 
        independent counsel required by this paragraph shall be in 
        addition to all notice requirements set forth in sections 6002 
        and 6005 of title 18, United States Code.
            (7) Depositions.--To take depositions and other testimony 
        under oath anywhere within the United States, to issue orders 
        that require witnesses to answer written interrogatories under 
        oath, and to make application for the issuance of letters 
        rogatory. All depositions shall be conducted jointly by 
        majority and minority staff of the special committee. A witness 
        at a deposition shall be examined upon oath administered by a 
        member of the special committee or an individual authorized by 
        local law to administer oaths, and a complete transcription or 
        electronic recording of the deposition shall be made. Questions 
        shall be propounded first by majority staff of the special 
        committee and then by minority staff of the special committee. 
        Any subsequent round of questioning shall proceed in the same 
        order. Objections by the witness as to the form of questions 
        shall be noted for the record. If a witness objects to a 
        question and refuses to answer on the basis of relevance or 
        privilege, the special committee staff may proceed with the 
        deposition, or may, at that time or at a subsequent time, seek 
        a ruling on the objection from the chairman. If the chairman 
        overrules the objection, the chairman may order and direct the 
        witness to answer the question, but the special committee shall 
        not initiate procedures leading to civil or criminal 
        enforcement unless the witness refuses to answer after having 
        been ordered and directed to answer.
            (8) Delegations to staff.--To issue commissions and to 
        notice depositions for staff members to examine witnesses and 
        to receive evidence under oath administered by an individual 
        authorized by local law to administer oaths. The special 
        committee, or the chairman with the concurrence of the ranking 
        member, may delegate to designated staff members of the special 
        committee the power to issue deposition notices authorized 
        pursuant to this paragraph.
            (9) Information from other sources.--To require by subpoena 
        or order--
                    (A) any department, agency, entity, officer, or 
                employee of the United States Government;
                    (B) any person or entity purporting to act under 
                color or authority of State or local law; or
                    (C) any private person, firm, corporation, 
                partnership, or other organization;
        to produce for consideration by the special committee or for 
        use as evidence in the investigation, study, or hearings of the 
        special committee, any book, check, canceled check, 
        correspondence, communication, document, financial record, 
        paper, physical evidence, photograph, record, recording, tape, 
        or any other material relating to any of the matters or 
        questions that the special committee is authorized to 
        investigate and study which any such person or entity may 
        possess or control.
            (10) Recommendations to the senate.--To make to the Senate 
        any recommendations, by report or resolution, including 
        recommendations for criminal or civil enforcement, which the 
        special committee may consider appropriate with respect to--
                    (A) the willful failure or refusal of any person to 
                appear before it, or at a deposition, or to answer 
                interrogatories, in compliance with a subpoena or 
                order;
                    (B) the willful failure or refusal of any person to 
                answer questions or give testimony during the 
                appearance of that person as a witness before the 
                special committee, or at a deposition, or in response 
                to interrogatories; or
                    (C) the willful failure or refusal of--
                            (i) any officer or employee of the United 
                        States Government;
                            (ii) any person or entity purporting to act 
                        under color or authority of State or local law; 
                        or
                            (iii) any private person, partnership, 
                        firm, corporation, or organization;
                to produce before the special committee, or at a 
                deposition, or at any time or place designated by the 
                committee, any book, check, canceled check, 
                correspondence, communication, document, financial 
                record, paper, physical evidence, photograph, record, 
                recording, tape, or any other material in compliance 
                with any subpoena or order.
            (11) Consultants.--To procure the temporary or intermittent 
        services of individual consultants, or organizations thereof.
            (12) Other government personnel.--To use, on a reimbursable 
        basis and with the prior consent of the Government department 
        or agency concerned, the services of the personnel of such 
        department or agency.
            (13) Other congressional staff.--To use, with the prior 
        consent of any member of the Senate or the chairman or the 
        ranking member of any other Senate committee or the chairman or 
        ranking member of any subcommittee of any committee of the 
        Senate, the facilities or services of the appropriate members 
        of the staff of such member of the Senate or other Senate 
        committee or subcommittee, whenever the special committee or 
        the chairman or the ranking member considers that such action 
        is necessary or appropriate to enable the special committee to 
        conduct the investigation, study, and hearings authorized by 
        this resolution.
            (14) Access to information and evidence.--To permit any 
        members of the special committee, staff director, counsel, or 
        other staff members or consultants designated by the chairman
         or the ranking member, access to any data, evidence, 
information, report, analysis, document, or paper--
                    (A) that relates to any of the matters or questions 
                that the special committee is authorized to investigate 
                or study under this resolution;
                    (B) that is in the custody or under the control of 
                any department, agency, entity, officer, or employee of 
                the United States Government, including those which 
                have the power under the laws of the United States to 
                investigate any alleged criminal activities or to 
                prosecute persons charged with crimes against the 
                United States without regard to the jurisdiction or 
                authority of any other Senate committee or 
                subcommittee; and
                    (C) that will assist the special committee to 
                prepare for or conduct the investigation, study, and 
                hearings authorized by this resolution.
            (15) Reports of violations of law.--To report possible 
        violations of any law to appropriate Federal, State, or local 
        authorities.
            (16) Expenditures.--To expend, to the extent that the 
        special committee determines necessary and appropriate, any 
        money made available to the special committee by the Senate to 
        carry out this resolution.
            (17) Tax return information.--To inspect and receive, in 
        accordance with the procedures set forth in sections 6103(f)(3) 
        and 6104(a)(2) of the Internal Revenue Code of 1986, any tax 
        return or tax return information, held by the Secretary of the 
        Treasury, if access to the particular tax-related information 
        sought is necessary to the ability of the special committee to 
        carry out section 1(b)(3)(B).

SEC. 6. PROTECTION OF CONFIDENTIAL INFORMATION.

    (a) Nondisclosure.--No member of the special committee or the staff 
of the special committee shall disclose, in whole or in part or by way 
of summary, to any person other than another member of the special 
committee or other staff of the special committee, for any purpose or 
in connection with any proceeding, judicial or otherwise, any testimony 
taken, including the names of witnesses testifying, or material 
presented, in depositions or at closed hearings, or any confidential 
materials or information, unless authorized by the special committee or 
the chairman in concurrence with the ranking member.
    (b) Staff Nondisclosure Agreement.--All members of the staff of the 
special committee with access to confidential information within the 
control of the special committee shall, as a condition of employment, 
agree in writing to abide by the conditions of this section and any 
nondisclosure agreement promulgated by the special committee that is 
consistent with this section.
    (c) Sanctions.--
            (1) Member sanctions.--The case of any Senator who violates 
        the security procedures of the special committee may be 
        referred to the Select Committee on Ethics of the Senate for 
        investigation and the imposition of sanctions in accordance 
        with the rules of the Senate.
            (2) Staff sanctions.--Any member of the staff of the 
        special committee who violates the security procedures of the 
        special committee shall immediately be subject to removal from 
        office or employment with the special committee or such other 
        sanction as may be provided in any rule issued by the special 
        committee consistent with section 2(c).
    (d) Staff Defined.--For purposes of this section, the term ``staff 
of the special committee'' includes--
            (1) all employees of the special committee;
            (2) all staff designated by the members of the special 
        committee to work on special committee business;
            (3) all Senate staff assigned to special committee business 
        pursuant to section 5(b)(13);
            (4) all officers and employees of the Office of Senate 
        Legal Counsel who are requested to work on special committee 
        business; and
            (5) all detailees and consultants to the special committee.

SEC. 7. RELATION TO OTHER INVESTIGATIONS.

    (a) Purposes.--The purposes of this section are--
            (1) to expedite the thorough conduct of the investigation, 
        study, and hearings authorized by this resolution;
            (2) to promote efficiency among all the various 
        investigations underway in all branches of the United States 
        Government; and
            (3) to engender a high degree of confidence on the part of 
        the public regarding the conduct of such investigation, study, 
        and hearings.
    (b) Special Committee Actions.--To carry out the purposes stated in 
subsection (a), the special committee is encouraged--
            (1) to obtain relevant information concerning the status of 
        the investigation of the independent counsel, to assist in 
        establishing a hearing schedule for the special committee; and
            (2) to coordinate, to the extent practicable, the 
        activities of the special committee with the investigation of 
        the independent counsel.

SEC. 8. SALARIES AND EXPENSES.

    A sum equal to not more than $950,000 for the period beginning on 
the date of adoption of this resolution and ending on February 29, 
1996, shall be made available from the contingent fund of the Senate 
out of the Account for Expenses for Inquiries and Investigations for 
payment of salaries and other expenses of the special committee under 
this resolution, which shall include not more than $750,000 for the 
procurement of the services of individual consultants or organizations 
thereof, in accordance with section 5(b)(11). Payment of expenses shall 
be disbursed upon vouchers approved by the chairman, except that 
vouchers shall not be required for the disbursement of salaries paid at 
an annual rate.

SEC. 9. REPORTS; TERMINATION.

    (a) Completion of Duties.--
            (1) In general.--The special committee shall make every 
        reasonable effort to complete, not later than February 1, 1996, 
        the investigation, study, and hearings authorized by section 1.
            (2) Evaluation of progress.--The special committee shall 
        evaluate the progress and status of the investigation, study, 
        and hearings authorized by section 1 and, not later than 
        January 15, 1996, make recommendations with respect to the 
        authorization of additional funds for a period following 
        February 29, 1996. If the special committee requests the 
        authorization of additional funds for a period following 
        February 29, 1996, the Majority Leader and the Democratic 
        Leader shall meet and determine the appropriate timetable and 
        procedures for the Senate to vote on any such request.
    (b) Final Report.--
            (1) Submission.--The special committee shall promptly 
        submit a final public report to the Senate of the results of 
        the investigation, study, and hearings conducted by the special 
        committee pursuant to this resolution, together with its 
        findings and any recommendations.
            (2) Confidential information.--The final report of the 
        special committee may be accompanied by such confidential 
        annexes as are necessary to protect confidential information.
            (3) Conclusion of business.--After submission of its final 
        report, the special committee shall promptly conclude its 
        business and close out its affairs.
    (c) Records.--Upon the conclusion of the special committee's 
business and the closing out of its affairs, all records, files, 
documents, and other materials in the possession, custody, or control 
of the special committee shall remain under the control of the 
Committee on Banking, Housing, and Urban Affairs.

SEC. 10. COMMITTEE JURISDICTION AND RULE XXV.

    The jurisdiction of the special committee is granted pursuant to 
this resolution, notwithstanding the provisions of paragraph 1 of rule 
XXV of the Standing Rules of the Senate relating to the jurisdiction of 
the standing committees of the Senate.
                                 <all>
SRES 120 ATS----2