[Congressional Record Volume 141, Number 123 (Thursday, July 27, 1995)]
[Senate]
[Pages S10838-S10840]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               THE CONGRESSIONAL GIFT REFORM ACT OF 1995

                                 ______


                 McCAIN (AND OTHERS) AMENDMENT NO. 1872

  Mr. McCAIN (for himself, Mr. Levin, Mr. Cohen, Mr. Wellstone, Mr. 
Feingold, Mr. Lautenberg, Mr. Kyl, Mr. McConnell, Mr. Grams, Mr. Burns, 
Mr. Abraham, Mr. Warner, and Mr. Harkin) proposed an amendment to the 
bill (S. 1061) to provide for congressional gift reform; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. AMENDMENTS TO SENATE RULES.

       Rule XXXV of the Standing Rules of the Senate is amended to 
     read as follows:
       ``1. (a)(1) No Member, officer, or employee of the Senate 
     shall knowingly accept a gift except in conformance with this 
     rule.
       ``(2) A Member, officer, or employee may accept a gift 
     (other than cash or cash equivalent) which the Member, 
     officer, or employee reasonably and in good faith believes to 
     have a value of less than $20, and a cumulative value from 
     one source during a calendar year of less than $50. No formal 
     recordkeeping is required by this paragraph, but a Member, 
     officer, or employee shall make a good faith effort to comply 
     with this paragraph.
       ``(b)(1) For the purpose of this rule, the term `gift' 
     means any gratuity, favor, discount, entertainment, 
     hospitality, loan, forbearance, or other item having monetary 
     value. The term includes gifts of services, training, 
     transportation, lodging, and meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred.
       ``(2)(A) A gift to the spouse or dependent of a Member, 
     officer, or employee (or a gift to any other individual based 
     on that individual's relationship with the Member, officer, 
     or employee) shall be considered a gift to the Member, 
     officer, or employee if it is given with the knowledge and 
     acquiescence of the Member, officer, or employee and the 
     Member, officer, or employee has reason to believe the gift 
     was given because of the official position of the Member, 
     officer, or employee.
       ``(B) If food or refreshment is provided at the same time 
     and place to both a Member, officer, or employee and the 
     spouse or dependent thereof, only the food or refreshment 
     provided to the Member, officer, or employee shall be treated 
     as a gift for purposes of this rule.
       ``(c) The restrictions in subparagraph (a) shall not apply 
     to the following:
       ``(1) Anything for which the Member, officer, or employee 
     pays the market value, or does not use and promptly returns 
     to the donor.
       ``(2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       ``(3) A gift from a relative as described in section 107(2) 
     of title I of the Ethics in Government Act of 1978 (Public 
     Law 95-521).
       ``(4)(A) Anything provided by an individual on the basis of 
     a personal friendship unless the Member, officer, or employee 
     has reason to believe that, under the circumstances, the gift 
     was provided because of the official position of the Member, 
     officer, or employee and not because of the personal 
     friendship.
       ``(B) In determining whether a gift is provided on the 
     basis of personal friendship, the Member, officer, or 
     employee shall consider the circumstances under which the 
     gift was offered such as:
       ``(i) The history of the relationship between the 
     individual giving the gift and the recipient of the gift, 
     including any previous exchange of gifts between such 
     individuals.
       ``(ii) Whether to the actual knowledge of the Member, 
     officer, or employee the individual who gave the gift 
     personally paid for the gift or sought a tax deduction or 
     business reimbursement for the gift.
       ``(iii) Whether to the actual knowledge of the Member, 
     officer, or employee the individual who gave the gift also at 
     the same time gave the same or similar gifts to other 
     Members, officers, or employees.
       ``(5) A contribution or other payment to a legal expense 
     fund established for the benefit of a Member, officer, or 
     employee, that is 

[[Page S 10839]]
     otherwise lawfully made, subject to the disclosure requirements of 
     Select Committee on Ethics, except as provided in paragraph 
     3(c).
       ``(6) Any gift from another Member, officer, or employee of 
     the Senate or the House of Representatives.
       ``(7) Food, refreshments, lodging, and other benefits--
       ``(A) resulting from the outside business or employment 
     activities (or other outside activities that are not 
     connected to the duties of the Member, officer, or employee 
     as an officeholder) of the Member, officer, or employee, or 
     the spouse of the Member, officer, or employee, if such 
     benefits have not been offered or enhanced because of the 
     official position of the Member, officer, or employee and are 
     customarily provided to others in similar circumstances;
       ``(B) customarily provided by a prospective employer in 
     connection with bona fide employment discussions; or
       ``(C) provided by a political organization described in 
     section 527(e) of the Internal Revenue Code of 1986 in 
     connection with a fundraising or campaign event sponsored by 
     such an organization.
       ``(8) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       ``(9) Informational materials that are sent to the office 
     of the Member, officer, or employee in the form of books, 
     articles, periodicals, other written materials, audiotapes, 
     videotapes, or other forms of communication.
       ``(10) Awards or prizes which are given to competitors in 
     contests or events open to the public, including random 
     drawings.
       ``(11) Honorary degrees (and associated travel, food, 
     refreshments, and entertainment) and other bona fide, 
     nonmonetary awards presented in recognition of public service 
     (and associated food, refreshments, and entertainment 
     provided in the presentation of such degrees and awards).
       ``(12) Donations of products from the State that the Member 
     represents that are intended primarily for promotional 
     purposes, such as display or free distribution, and are of 
     minimal value to any individual recipient.
       ``(13) Training (including food and refreshments furnished 
     to all attendees as an integral part of the training) 
     provided to a Member, officer, or employee, if such training 
     is in the interest of the Senate.
       ``(14) Bequests, inheritances, and other transfers at 
     death.
       ``(15) Any item, the receipt of which is authorized by the 
     Foreign Gifts and Decorations Act, the Mutual Educational and 
     Cultural Exchange Act, or any other statute.
       ``(16) Anything which is paid for by the Federal 
     Government, by a State or local government, or secured by the 
     Government under a Government contract.
       ``(17) A gift of personal hospitality (as defined in 
     section 109(14) of the Ethics in Government Act) of an 
     individual other than a registered lobbyist or agent of a 
     foreign principal.
       ``(18) Free attendance at a widely attended event permitted 
     pursuant to subparagraph (d).
       ``(19) Opportunities and benefits which are--
       ``(A) available to the public or to a class consisting of 
     all Federal employees, whether or not restricted on the basis 
     of geographic consideration;
       ``(B) offered to members of a group or class in which 
     membership is unrelated to congressional employment;
       ``(C) offered to members of an organization, such as an 
     employees' association or congressional credit union, in 
     which membership is related to congressional employment and 
     similar opportunities are available to large segments of the 
     public through organizations of similar size;
       ``(D) offered to any group or class that is not defined in 
     a manner that specifically discriminates among Government 
     employees on the basis of branch of Government or type of 
     responsibility, or on a basis that favors those of higher 
     rank or rate of pay;
       ``(E) in the form of loans from banks and other financial 
     institutions on terms generally available to the public; or
       ``(F) in the form of reduced membership or other fees for 
     participation in organization activities offered to all 
     Government employees by professional organizations if the 
     only restrictions on membership relate to professional 
     qualifications.
       ``(20) A plaque, trophy, or other item that is 
     substantially commemorative in nature and which is intended 
     solely for presentation.
       ``(21) Anything for which, in an unusual case, a waiver is 
     granted by the Select Committee on Ethics.
       ``(22) Food or refreshments of a nominal value offered 
     other than as a part of a meal.
       ``(23) an item of little intrinsic value such as a greeting 
     card, baseball cap, or a T-shirt.
       ``(d)(1) A Member, officer, or employee may accept an offer 
     of free attendance at a widely attended convention, 
     conference, symposium, forum, panel discussion, dinner, 
     viewing, reception, or similar event, provided by the sponsor 
     of the event, if--
       ``(A) the Member, officer, or employee participates in the 
     event as a speaker or a panel participant, by presenting 
     information related to Congress or matters before Congress, 
     or by performing a ceremonial function appropriate to the 
     Member's, officer's, or employee's official position; or
       ``(B) attendance at the event is appropriate to the 
     performance of the official duties or representative function 
     of the Member, officer, or employee.
       ``(2) A Member, officer, or employee who attends an event 
     described in clause (1) may accept a sponsor's unsolicited 
     offer of free attendance at the event for an accompanying 
     individual if others in attendance will generally be 
     similarly accompanied or if such attendance is appropriate to 
     assist in the representation of the Senate.
       ``(3) A Member, officer, or employee, or the spouse or 
     dependent thereof, may accept a sponsor's unsolicited offer 
     of free attendance at a charity event, except that 
     reimbursement for transportation and lodging may not be 
     accepted in connection with an event that does not meet the 
     standards provided in paragraph 2.
       ``(4) For purposes of this paragraph, the term `free 
     attendance' may include waiver of all or part of a conference 
     or other fee, the provision of local transportation, or the 
     provision of food, refreshments, entertainment, and 
     instructional materials furnished to all attendees as an 
     integral part of the event. The term does not include 
     entertainment collateral to the event, nor does it include 
     food or refreshments taken other than in a group setting with 
     all or substantially all other attendees.
       ``(e) No Member, officer, or employee may accept a gift the 
     value of which exceeds $250 on the basis of the personal 
     friendship exception in subparagraph (c)(4) unless the Select 
     Committee on Ethics issues a written determination that such 
     exception applies. No determination under this subparagraph 
     is required for gifts given on the basis of the family 
     relationship exception.
       ``(f) When it is not practicable to return a tangible item 
     because it is perishable, the item may, at the discretion of 
     the recipient, be given to an appropriate charity or 
     destroyed.
       ``2. (a)(1) A reimbursement (including payment in kind) to 
     a Member, officer, or employee from an individual other than 
     a registered lobbyist or agent of a foreign principal for 
     necessary transportation, lodging and related expenses for 
     travel to a meeting, speaking engagement, factfinding trip or 
     similar event in connection with the duties of the Member, 
     officer, or employee as an officeholder shall be deemed to be 
     a reimbursement to the Senate and not a gift prohibited by 
     this rule, if the Member, officer, or employee--
       ``(A) in the case of an employee, receives advance 
     authorization, from the Member or officer under whose direct 
     supervision the employee works, to accept reimbursement, and
       ``(B) discloses the expenses reimbursed or to be reimbursed 
     and the authorization to the Secretary of the Senate within 
     30 days after the travel is completed.
       ``(2) For purposes of clause (1), events, the activities of 
     which are substantially recreational in nature, shall not be 
     considered to be in connection with the duties of a Member, 
     officer, or employee as an officeholder.
       ``(b) Each advance authorization to accept reimbursement 
     shall be signed by the Member or officer under whose direct 
     supervision the employee works and shall include--
       ``(1) the name of the employee;
       ``(2) the name of the person who will make the 
     reimbursement;
       ``(3) the time, place, and purpose of the travel; and
       ``(4) a determination that the travel is in connection with 
     the duties of the employee as an officeholder and would not 
     create the appearance that the employee is using public 
     office for private gain.
       ``(c) Each disclosure made under subparagraph (a)(1) of 
     expenses reimbursed or to be reimbursed shall be signed by 
     the Member or officer (in the case of travel by that Member 
     or officer) or by the Member or officer under whose direct 
     supervision the employee works (in the case of travel by an 
     employee) and shall include--
       ``(1) a good faith estimate of total transportation 
     expenses reimbursed or to be reimbursed;
       ``(2) a good faith estimate of total lodging expenses 
     reimbursed or to be reimbursed;
       ``(3) a good faith estimate of total meal expenses 
     reimbursed or to be reimbursed;
       ``(4) a good faith estimate of the total of other expenses 
     reimbursed or to be reimbursed;
       ``(5) a determination that all such expenses are necessary 
     transportation, lodging, and related expenses as defined in 
     this paragraph; and
       ``(6) in the case of a reimbursement to a Member or 
     officer, a determination that the travel was in connection 
     with the duties of the Member or officer as an officeholder 
     and would not create the appearance that the Member or 
     officer is using public office for private gain.
       ``(d) For the purposes of this paragraph, the term 
     `necessary transportation, lodging, and related expenses'--
       ``(1) includes reasonable expenses that are necessary for 
     travel for a period not exceeding 3 days exclusive of travel 
     time within the United States or 7 days exclusive of travel 
     time outside of the United States unless approved in advance 
     by the Select Committee on Ethics;
       ``(2) is limited to reasonable expenditures for 
     transportation, lodging, conference fees and materials, and 
     food and refreshments, including reimbursement for necessary 
     transportation, whether or not such transportation occurs 
     within the periods described in clause (1);

[[Page S 10840]]

       ``(3) does not include expenditures for recreational 
     activities, nor does it include entertainment other than that 
     provided to all attendees as an integral part of the event, 
     except for activities or entertainment otherwise permissible 
     under this rule; and
       ``(4) may include travel expenses incurred on behalf of 
     either the spouse or a child of the Member, officer, or 
     employee, subject to a determination signed by the Member or 
     officer (or in the case of an employee, the Member or officer 
     under whose direct supervision the employee works) that the 
     attendance of the spouse or child is appropriate to assist in 
     the representation of the Senate.
       ``(e) The Secretary of the Senate shall make available to 
     the public all advance authorizations and disclosures of 
     reimbursement filed pursuant to subparagraph (a) as soon as 
     possible after they are received.
       ``3. A gift prohibited by paragraph 1(a) includes the 
     following:
       ``(a) Anything provided by a registered lobbyist or an 
     agent of a foreign principal to an entity that is maintained 
     or controlled by a Member, officer, or employee.
       ``(b) A charitable contribution (as defined in section 
     170(c) of the Internal Revenue Code of 1986) made by a 
     registered lobbyist or an agent of a foreign principal on the 
     basis of a designation, recommendation, or other 
     specification of a Member, officer, or employee (not 
     including a mass mailing or other solicitation directed to a 
     broad category of persons or entities), other than a 
     charitable contribution permitted by paragraph 4.
       ``(c) A contribution or other payment by a registered 
     lobbyist or an agent of a foreign principal to a legal 
     expense fund established for the benefit of a Member, 
     officer, or employee.
       ``(d) A financial contribution or expenditure made by a 
     registered lobbyist or an agent of a foreign principal 
     relating to a conference, retreat, or similar event, 
     sponsored by or affiliated with an official congressional 
     organization, for or on behalf of Members, officers, or 
     employees.
       ``4. (a) A charitable contribution (as defined in section 
     170(c) of the Internal Revenue Code of 1986) made by a 
     registered lobbyist or an agent of a foreign principal in 
     lieu of an honorarium to a Member, officer, or employee shall 
     not be considered a gift under this rule if it is reported as 
     provided in subparagraph (b).
       ``(b) A Member, officer, or employee who designates or 
     recommends a contribution to a charitable organization in 
     lieu of honoraria described in subparagraph (a) shall report 
     within 30 days after such designation or recommendation to 
     the Secretary of the Senate--
       ``(1) the name and address of the registered lobbyist who 
     is making the contribution in lieu of honoraria;
       ``(2) the date and amount of the contribution; and
       ``(3) the name and address of the charitable organization 
     designated or recommended by the Member.

     The Secretary of the Senate shall make public information 
     received pursuant to this subparagraph as soon as possible 
     after it is received.
       ``5. For purposes of this rule--
       ``(a) the term `registered lobbyist' means a lobbyist 
     registered under the Federal Regulation of Lobbying Act or 
     any successor statute; and
       ``(b) the term `agent of a foreign principal' means an 
     agent of a foreign principal registered under the Foreign 
     Agents Registration Act.
       ``6. All the provisions of this rule shall be interpreted 
     and enforced solely by the Select Committee on Ethics. The 
     Select Committee on Ethics is authorized to issue guidance on 
     any matter contained in this rule.''.

     SEC. 2. EFFECTIVE DATE.

       This resolution and the amendment made by this resolution 
     shall take effect on January 1, 1996.

                                 ______


                        BROWN AMENDMENT NO. 1873

  Mr. BROWN proposed an amendment to amendment No. 1872 proposed by Mr. 
McCain to the bill S. 1061, supra; as follows:

       At the appropriate place in the amendment, insert the 
     following:

     SEC.  . ADDITIONAL DISCLOSURE IN THE SENATE OF THE VALUE OF 
                   CERTAIN ASSETS UNDER THE ETHICS IN GOVERNMENT 
                   ACT OF 1978.

       (a) Categories of Income.--Rule XXXIV of the Standing Rules 
     of the Senate is amended by adding at the end the following 
     new paragraph:
       ``3. In addition to the requirements of paragraph 1, 
     Members, officers, and employees of the Senate shall include 
     in each report filed under paragraph 2 the following 
     additional information:
       ``(a) For purposes of section 102(a)(1)(B) of the Ethics in 
     Government Act of 1978 additional categories of income as 
     follows:
       ``(1) greater than $1,000,000 but not more than $5,000,000, 
     or
       ``(2) greater than $5,000,000.
       ``(b) For purposes of section 102(d)(1) of the Ethics in 
     Government Act of 1978 additional categories of income as 
     follows:
       ``(1) greater than $1,000,000 but not more than $5,000,000;
       ``(2) greater than $5,000,000 but not more than 
     $25,000,000;
       ``(3) greater than $25,000,000 but not more than 
     $50,000,000; and
       ``(4) greater than $50,000,000.
       ``(c) For purposes of this paragraph and section 102 of the 
     Ethics in Government Act of 1978, additional categories with 
     amounts or values greater than $1,000,000 set forth in 
     section 102(a)(1)(B) and 102(d)(1) shall apply to the income, 
     assets, or
      liabilities of spouses and dependent children only if the 
     income, assets, or liabilities are held jointly with the 
     reporting individual. All other income, assets, or 
     liabilities of the spouse or dependent children required 
     to be reported under section 102 and this paragraph in an 
     amount or value greater than $1,000,000 shall be 
     categorized only as an amount or value greater than 
     $1,000,000.''.
       (b) Blind Trust Assets.--
       (1) In general.--Rule XXXIV of the Standing Rules of the 
     Senate is further amended by adding at the end the following 
     new paragraph:
       ``4. In addition to the requirements of paragraph 1, 
     Members, officers, and employees of the Senate shall include 
     in each report filed under paragraph 2 an additional 
     statement under section 102(a) of the Ethics in Government 
     Act of 1978 listing the category of the total cash value of 
     any interest of the reporting individual in a qualified blind 
     trust as provided in section 102(d)(1) of the Ethics in 
     Government Act of 1978, unless the trust instrument was 
     executed prior to July 24, 1995 and precludes the beneficiary 
     from receiving information on the total cash value of any 
     interest in the qualified blind trust.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to reports filed under title I of 
     the Ethics in Government Act of 1978 for calendar year 1996 
     and thereafter.
                                 ______


                      MURKOWSKI AMENDMENT NO. 1874

  Mr. MURKOWSKI proposed an amendment to amendment No. 1872 proposed by 
Mr. McCain to the bill S. 1061, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . TRAVEL AND LODGING TO CHARITABLE EVENTS.

       Notwithstanding any provision of the Rule, The term 
     ``gift'' does not include permissible travel, lodging, and 
     meals at an event to raise funds for a bona fide charity, 
     subject to a determination by the Select Committee on Ethics 
     that participation in the charitable event is in the interest 
     of the Senate and the United States.
                                 ______


                  LOTT (AND BREAUX) AMENDMENT NO. 1875

  Mr. LOTT (for himself and Mr. Breaux) proposed an amendment to 
amendment No. 1872 proposed by Mr. McCain to the bill S. 1061, supra; 
as follows:

       On page 1, strike lines 9 through 12, and on page 2, strike 
     lines 1 through 4; and, insert the following:
       ``(2) No Member, officer, or employee of the Senate, shall 
     knowingly accept, directly or indirectly, any gifts in any 
     calendar year aggregating more than $100 or more from any 
     person, entity, organization, or corporation unless, in 
     limited and appropriate circumstances, a waiver is granted by 
     the Select Committee on Ethics. The prohibitions of this 
     paragraph do not apply to gifts with a value of less than 
     $50.''
                                 ______


                       STEVENS AMENDMENT NO. 1876

  Mr. STEVENS proposed an amendment to amendment No. 1872 proposed by 
Mr. McCain to the bill S. 1061, supra; as follows:

       On page 2 of the amendment, strike lines 12 through 20 and 
     insert in lieu thereof the following:
       ``(2)(A) A gift to a family member of a Member, officer, or 
     employee, or a gift to any other individual based on that 
     individual's relationship with the Member, officer, or 
     employee, shall be considered a gift to the Member, officer, 
     or employee if it is given with the knowledge and 
     acquiescence of the Member, officer, or employee and the 
     Member, officer, or employee has reason to believe the gift 
     was given because of the official position of the Member, 
     officer, or employee.''
                                 ______


                        FORD AMENDMENT NO. 1877

  Mr. FORD proposed an amendment to amendment No. 1872 proposed by Mr. 
McCain to the bill S. 1061, supra; as follows:

       On page 16 of the McCain substitute on line 25, insert 
     after ``shall take effect on'' the following: ``and be 
     effective for calendar years beginning on''.
     

                          ____________________