[Congressional Record Volume 141, Number 82 (Wednesday, May 17, 1995)]
[Senate]
[Pages S6823-S6826]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE RESOLUTION 120--ESTABLISHING A SPECIAL COMMITTEE ADMINISTERED BY 
          THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

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

                              S. Res. 120
       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;
     [[Page S6824]]   (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 [[Page S6825]] 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 [[Page S6826]] 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.
     

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