[Congressional Record Volume 141, Number 120 (Monday, July 24, 1995)]
[Senate]
[Pages S10538-S10540]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    LOBBYING DISCLOSURE ACT OF 1995

  The Senate continued with the consideration of the bill.
  The PRESIDING OFFICER. The Senator from Ohio.
  Mr. GLENN. Mr. President, I rise to offer my very strong support for 
S. 1060, the Lobbying Disclosure Act of 1995.
  This legislation is similar to that reported out by the Governmental 
Affairs Committee, which I was privileged to chair during the last 
Congress. Senators Levin and Cohen, in particular, deserve our words of 
high praise for their diligence and persistence in tackling such a 
thorny area and coming up with an effective and pragmatic bill.
  Mr. President, there is blessed little credit given to those who 
bring up things like this. There is a lot of opposition. But these are 
the things in the committee we used to jokingly call the ``grunt work'' 
of Government--the grunt work of Government--the good Government issues 
that too often are not brought to the floor, and when they are brought 
to the floor, usually cause very little attention to be paid.
  Senator Levin was President of the Detroit City Council before he 
came to Washington. I have heard him talk many times about how he came 
in here with a burning purpose of doing regulatory reform, for 
instance. We have been having that on the floor the last couple of 
weeks.
  Now on lobbying reform, ethics in Government matters. That may be a 
column note someplace, a short column note at the very best, usually, 
on items like this. But they are items which become vitally important 
for long-term 

[[Page S10539]]
Government in this country and how our people look at Government, 
because we live in an age when, for whatever reason, people have lost 
confidence in their Government.
  There is a pervasive cynicism, if not outright skepticism, about the 
integrity of Government institutions to carry out and serve the 
public's interest.
  Part of this distrust is the perception that Congress in particular 
is beholden to special interests and that ordinary people cannot rise 
above the din of lobbyists having special access to and currying favor 
from Members of Congress or top officials in the executive branch.
  I personally do not subscribe to this view. I feel it is more myth 
than reality. However, as long as the perception is there, doubt and 
suspicion will linger.
  In my view, the issue is about access and accountability. We want to 
return power to the people. At long last, everyone will be able to know 
who is paying what to lobby whom on which subject and on which issue.
 Whether it is a special tax loophole or a pork barrel project, people 
want to know what is going on. The sunshine is always the best 
disinfectant.

  I am sure that most of us would much rather be talking and meeting 
with those who elected us--our constituents--than some smooth-talking 
lobbyist. I, for one, was elected to represent the people of Ohio. And 
they are who I want to hear from and will always give top priority to.
  This bill provides for the effective disclosure of paid lobbyists who 
are trying to influence Federal legislative or executive branch 
officials in the conduct of Government actions. It also affords us the 
fullest opportunity for citizens to exercise their constitutional right 
to petition the Government.
  Nothing in this bill whatsoever would either restrict or prohibit our 
constituents from writing, from calling, or from meeting with us. 
Senators Levin and Cohen have clarified that. They have also removed 
the so-called grassroots lobbying provision which was used to thwart 
our efforts to get this bill enacted into law prior to adjournment last 
year.
  This legislation makes commonsense reforms in the registration and 
disclosure process. It replaces the myriad of lobbying disclosure 
laws--some with giant loopholes--with a single, uniform statute 
covering all professional lobbyists. It also streamlines the disclosure 
requirements to ensure that the public is provided with meaningful 
information, not some undecipherable code. The legislation also 
establishes a workable system to administer and enforce compliance with 
this act.
  I think we are at a crucial crossroads, in my view, over the role of 
Government and people's respect for it. I believe this bill will 
enhance the public's awareness of and confidence in the functioning of 
their Government. It makes sure that public officials are accountable 
for their actions. I think it will discourage lobbyists and their 
clients from engaging in less than proper activities.
  Let me say this about lobbyists. I do not turn lobbyists away. I 
welcome their information a lot of times because a lot of times they 
can give you details of or insight into this particular area of 
expertise that is welcome and should be considered. But to try and tie 
that lobbyist up with whether they made a contribution or not is 
absolutely wrong.
  In short, effective lobbying disclosure would ensure that the public 
Federal officials and other interested parties are aware of the 
pressures that are brought to bear on public policy. Now more than 
ever, so to speak.
  At a time when major health and safety laws or regulations are being 
debated on the Senate floor, the public is entitled to know what 
lobbyists we are meeting with in the back rooms, who they are 
representing, and why they are here. Are they just passing through to 
say ``hello?'' Are they here to persuade us to offer or support an 
amendment to benefit a particular business or industry?
  Effective public disclosure will build confidence in this body and 
erase the doubts and suspicions that the public is shut out from the 
people's business.
  So I think the changes proposed by Senators Levin and Cohen are 
sensible and they strengthen the workings of the bill. They deserve our 
credit for leading this effort, though I regret we were prevented from 
acting upon this last year.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  Mr. SIMPSON. Mr. President, has a quorum been entered?
  The PRESIDING OFFICER. It is not in progress.
  Mr. GLENN. I withdraw the request for a quorum call.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. SIMPSON. Mr. President, I thank my friend from Ohio.
  Mr. President, with regard now to the status of the situation on the 
floor, we are on the bill. Is that correct?
  The PRESIDING OFFICER. The Brown amendment No. 1838 is the business 
at hand.
  Mr. SIMPSON. Mr. President, with the approval of the Senator from 
Colorado, may I ask that his amendment be withdrawn. My amendment 
should not take 5 or 10 minutes, unless the Senator from Colorado 
wishes to go forward.
  Mr. BROWN. It would be appropriate to temporarily set it aside.
  Mr. SIMPSON. I ask unanimous consent that the amendment be 
temporarily set aside and that we go forward with this.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  Mr. SIMPSON. I thank my friend from Colorado.


                           Amendment No. 1839

   (Purpose: To prohibit certain exempt organizations from receiving 
                            Federal grants)

  Mr. SIMPSON. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Wyoming [Mr. Simpson] proposes an 
     amendment numbered 1839.
       At the appropriate place, insert the following:

     SEC.   . EXEMPT ORGANIZATIONS.

       An organization described in section 501(c)(4) of the 
     Internal Revenue Code of 1986 shall not be eligible for the 
     receipt of Federal funds constituting an award, grant, 
     contract, loan, or any other form.

  Mr. SIMPSON. Mr. President, that amendment is rather succinct.
  I believe that the amendment I have just put forward embodies an 
absolutely critical component of any truly meaningful lobbying reform. 
The amendment is identical to a bill which I was pleased to introduce 
with Senator Craig last Friday which has already attracted over a dozen 
cosponsors.
  By unanimous consent, Mr. President, we now split the underlying 
legislation into two complementary components--lobbying reform and gift 
ban legislation. I think all of us must agree that the issue of 
lobbyists' gifts to Senators must be dealt with in any attempt to 
protect the ethical framework of our activities here. I commend my 
friend from Michigan who came here when I did, Senator Levin, and many 
others who have worked so diligently on these issues of lobbying and 
gifts--and Senator McConnell and so many others.
  But my amendment gets to the heart of another major piece of the 
puzzle, one which we have inadequately dealt with thus far. This is the 
other side of the coin. This is about Congress' gifts to lobbyists in 
the forms of grants, loans and other benefits.
  Very simply, Mr. President, my amendment would forbid the delivery of 
Federal grant money to any 501(c)(4) organization--501(c)(4). Please 
hear that very seriously constricted and limited impact. This is an 
absolutely vital and fundamental and long overdue reform.
  I trust my colleagues may be fully aware of the relevant sections of 
the Internal Revenue Code pertaining to tax-exempt organizations. If 
so, they will see why this reform is absolutely necessary, and should 
be, I think, uncontroversial.
  First, let me assure my colleagues who may be wary upon initially 
hearing of this legislation. This amendment does not affect charities, 
nor any of the other tax-exempt groups which Members will certainly 
wish to protect, and should.
  This amendment would not affect any organization that is organized 

[[Page S10540]]
  under section 501(c)(3) or 501(c)(5) or 501(c)6 or any of the other 25 
categories, or maybe more, if I recall, of the Internal Revenue code. 
And I would remind my colleagues that 501(c)(3), which is not affected 
by this legislation, this amendment--this is the one that encourages 
activities, that are, and I quote directly from the code, 501(c)(3)'s 
are not affected by this amendment, are to ``Relieving the poor and 
distressed,'' or for ``Advancing religion or education.'' Thus, this 
amendment would not affect the Salvation Army, nor any other of the 
educational institutions in your State or any ``charities.'' Nor would 
it affect the tax-exempt groups that file under 501(c)(5) or 501(c)(6) 
of the Internal Revenue Code. These organizations include the labor 
organizations, and business organizations, groups such as the chamber 
of commerce, and the AFL-CIO--not dealt with here; no impact at all.
  This amendment deals very directly with section 501(c)(4) only. You 
can read that, the big lobbyists, the big boys and girls, and quite a 
list. That is the category that some organizations have chosen to file 
under when they want to spend an unlimited amount of money on the 
lobbying of the Congress. Unlike a 501(c)(3) which has a floating cap 
on how much can be spent on lobbying, there is no such cap on a 
501(c)(4), none.
  This means that an organization under 501(c)(4) can under current law 
enjoy a tax exemption, enjoy receiving the Federal grant money and 
enjoy spending untold millions--that is the number, untold millions--
lobbying the Congress. This is huge loophole benefiting the powerful 
lobbyists at the expense of the collective interests of our citizenry. 
It is small wonder that we have such difficulty here casting votes to 
benefit the average citizen and Americans when we are simultaneously 
subsidizing the programs and activities of some of our largest lobbying 
groups. This is a reform that absolutely must be made, and soon. And 
there is no better place than I think the time today because there is a 
fundamental basic incompatibility between the current construction of 
501(c)(4) law and the delivery of Federal grant money.
  I feel, after looking at it as carefully as I can, that rather than 
to design the limitations on the lobbying, or other advocacy activities 
of the 501(c)(4) organizations, that we should simply acknowledge that 
this is not the provision of the Tax Code under which altruistic, 
caring, charitable groups file. They do not file under 501(c)(4). But 
rather, this designation attracts those groups that are organized 
principally to lobby the Federal Government, and do so without 
financial limitations.
  There are, of course, and be assured, countless fine organizations 
doing good work and good works, organized under 501(c)(4) of the Tax 
Code.
 And if they wish to continue their administration of Federal grant 
money, certainly we should encourage them to file as a 501(c)(3) or any 
other available provision of the Tax Code.

  My amendment would not prevent the truly altruistic groups from doing 
just that, but if they wish to enjoy the benefits of 501(c)(4) and also 
enjoy the special privilege to lobby just as many bucks as their bank 
account will allow, then they should not be paid off in Federal grant 
money.
  I hope we might receive bipartisan support for this amendment, good 
bipartisan support. I have heard some of my colleagues take the floor 
at other times during this year to state that such lobbying activities 
should not be underwritten by the Federal Government. I have heard some 
on the other side of the aisle say that the NRA in particular should 
not be receiving Federal grant money. Many concur.
  So this is the Senate's chance to put an end to these conflicts of 
interest. I hope the Senators on both sides of the aisle will support 
this needed reform and vote to curtail the delivery of grant money to 
these, the most powerful lobbying groups and organizations in America. 
It is really a fundamental test of our sincerity in removing the 
decisionmaking process from obvious conflicts of interest. I ask my 
colleagues for their support with regard to the amendment.
  Mr. President, I will yield to Senator Brown whenever he wishes the 
floor, but let me speak another few moments.

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