[Congressional Record Volume 141, Number 172 (Thursday, November 2, 1995)]
[House]
[Pages H11736-H11738]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CONTINUATION OF REPORT INTO TAXPAYER SUBSIDIZED LOBBYING IN WASHINGTON, 
                                   DC

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Indiana [Mr. McIntosh] is recognized for 5 minutes.
  Mr. McINTOSH. Mr. Speaker, I wanted to continue our report on the 
Subcommittee on Regulatory Relief's investigation into taxpayer--
subsidized lobbying that goes on here in Washington. Most recently, our 
subcommittee has uncovered a group known as the National Council of 
Senior Citizens that receives 95 percent of its funding, or $73 
million, from the taxpayer each year.
  The NCSC, as it is known, is organized as a nonprofit 501(c)4 
corporation. It gets its grant money mainly to operate programs that 
are to benefit senior 

[[Page H 11737]]

citizens, including the senior community employment program, and the 
chairman of the subcommittee who has oversight over that program, the 
gentleman from California, Mr. Duke Cuningham, this morning announced 
that the GAO had done an investigation into the NCSC and various groups 
who administer those programs and found that they had been misdirecting 
much of the taxpayer money to pay for their Washington operations, and 
that this misuse of the taxpayer funds was leading the gentleman from 
California to say that we need to fundamentally redo this program.
  Part of what happens with the NCSC is that they have set up a 
Political Action Committee. That Political Action Committee, or PAC, 
spent $400,000 in the last 4 years giving contributions to candidates 
who were running for President, for Senate, and the House of 
Representatives. Remember, this is the group that receives 95 percent 
of its money from the Federal Government. They have set up a Political 
Action Committee. It is virtually an extension of the Federal 
Government.
  If you think about it, would we want to have the IRS setting up a 
Political Action Committee, or the Treasury Department setting up a 
Political Action Committee, or maybe OSHA setting up a Political Action 
Committee? I do not think so. The taxpayer would not put up with that. 
That is virtually what is happening with this group here.
  Even more disturbing to me was the notion of how they raised their 
funds from the private sector. In our investigation we discovered that 
in one of their housing projects for senior citizens who are on low 
income, they send out letters from the management urging them to pay 
dues to the NCSC. I want to read to the American people from a letter 
from one of the management in the Robert Sharp Towers in Florida.
  It says to the members of that housing unit, all of whom are senior 
citizens, who are retired, living and barely subsisting on Government 
pensions or Social Security, the letter says:

       There are many reasons for joining the NCSC. First of all, 
     you have the privilege of living in these beautiful 
     buildings, protected with security, free from financial 
     worries of high rent and big raises.

  Then it goes on to say:

       The NCSC is well known and a powerful national 
     organization, with political clout in Washington. To carry 
     on, the organization needs money for these worthwhile 
     projects, such as lobbying and letter writing, which take 
     paper, stamps, envelopes, and hard work. Dues are payable 
     June 1.

  The message is, if you want to st ay in this senior housing project, 
you had better pay your dues to the NCSC. That type of intimidation I 
think is unconscionable. It goes to fund lobbying efforts by this group 
to spend more taxpayer dollars, and it is something, quite frankly, 
that we should no longer allow to occur in this Congress.
  I will submit for the Record, Mr. Speaker, a copy of that letter, 
along with a recent policy statement by the NCSC saying that as of 
October 13, when we brought this matter to their attention, they are no 
longer allowng their management staff to issue such letters recruiting 
funds from their senior housing members, thereby admitting that it is a 
disastrous idea to have that conflict of interest.
  The material referred to follows:
         Robert Sharp Towers, NCSC Housing Management Corp.,
                                            Miami, FL, June, 1995.
       Dear Tenant: All TENANTS are asked to become Members of the 
     NATIONAL COUNCIL OF SENIOR CITIZENS (N.C.S.C.).
       The Dues are $12.00 a year for an individual or a couple 
     and can be paid in the office.
       The N.C.S.C. is responsible for building ROBERT SHARP 
     TOWERS, and have always been active in Benefits for SENIOR 
     CITIZENS--Social Security, Medicare, Senior Aide Program.
       There are many Reasons for joining N.C.S.C.
       First of all you have the privilege of living in these 
     beautiful buildings, protected with Security, and free from 
     financial worries of high rent and big rates, which people 
     are forced to pay in privately-owned apartments.
       The N.C.S.C. is well-known and powerful National 
     Organization with political clout in Washington. To carry on, 
     the Organization needs money for these worthwhile Projects 
     such as Lobbying and letter writing, which takes paper, 
     stamps, envelopes and hard work.
       Dues are payable the First of JUNE.
       Please cooperate and pay your $12.00 DUES as soon as 
     possible.
           Sincerely,
                                                Marjorie McDonald,
     Manager.
                                                                    ____


NCSC Talking Points for House Floor, Prepared for Congressmen McIntosh, 
                   Istook, Hayworth--November 2, 1995

       NCSC received 95% of its annual budget ($73 million) from 
     government grants last year.
       NCSC is a 501(c)(4) non-profit organization.
       NCSC gets most of grant money to provide jobs to low-income 
     seniors through a program called the Senior Community Service 
     Employment Program (SCSEP), which is funded under Title V of 
     the Older Americans Act and administered by the Department of 
     Labor.
       Half of NCSC's Annual Report for 1994 is dedicated to its 
     political and legislative activity. Only four pages are 
     dedicated to its job programs.
       NCSC's PAC made $405,000 in contributions in the last 4 
     years to Presidential, House and Senate candidates.
       NCSC is participating in a labor-based coalition that is 
     directing a multi-million dollar TV ad campaign against 
     Congress' efforts to balance the budget and save Medicare.
       One of NCSC's wholly-owned subsidiaries--the NCSC-Housing 
     Management Corporation--operates dozens of seniors' housing 
     projects nationwide. In one of these projects--the Robert 
     Sharp Towers in Miami--the NCSC threatened to take away 
     housing if tenants refused to pay NCSC dues.
       [NCSC's THREATENING LETTER IS ATTACHED].
       When NCSC was confronted with this letter in October 1995, 
     it is immediately adopted a policy prohibiting its employees 
     from soliciting tenants to join NCSC.
       [NCSC's NEW POLICY IS ATTACHED (policy is in italic)].
       A recent GAO Report cites NCSC, along with 9 other groups, 
     for improperly spending $20 million in SCSEP grant funds on 
     excessive administrative expenses.
       McIntosh, Cunningham and Hayworth held a press conference 
     this morning [SEE ATTACHED PRESS RELEASE] to focus attention 
     on these outrages, and to call for:
       (1) block granting Title V funds to the states to eliminate 
     groups like NCSC that do nothing but waste money on 
     administrative expenses; and
       (2) adopting the Istook/McIntosh/Ehrlich/Simpson/Craig 
     amendment to the Treasury Postal Appropriations Bill to end 
     welfare for lobbyists like NCSC.

                              Section III


                      site staff responsibilities

       3-3 It is not intended that the members of the Board of 
     Directors of the Owner Corporation implement the various 
     daily administrative operations of the property where a 
     Managing Agent has been contracted for such purposes. 
     Dependent upon the extent of Board involvement in the 
     property, many policy and procedural aspects necessary for 
     the operation of the property are delegated to the Managing 
     Agent. However, in all instances, the staff employed for the 
     property are responsible to the Site Manager who, in turn, is 
     responsible to the Property Manager and/or representatives 
     where designated.
       As the Managing Agent, NCSC-HMC expects from Site staff the 
     utmost care and respect to be given all residents and the 
     general public in dealing with site activities. Questions 
     asked of you by the residents must be answered promptly and 
     politely. If you cannot provide an accurate response, bring 
     the question or issue to the attention of the Site Manager/
     Property Manager for a response.
       Volunteers who work under the direction of the Site Manager 
     should regularly convene, as should other site staff, to work 
     out problems, bring themselves up-to-date on procedures, and 
     to offer recommendations to NCSC-HMC on improving the 
     conditions existing within the property.
       Only authorized site staff are permitted to handle the 
     property funds, Resident records and matters regarding 
     sensitive property issues, (e.g., recertification/
     verifications, etc.). Should you have a question with respect 
     to your role as an employee, do not hesitate to bring the 
     matter to the attention of your immediate supervisor.
       Managers and all staff of properties are prohibited from 
     soliciting for membership, products or services to be 
     purchased by tenants. Managers and all staff are prohibited 
     from sending out informational material utilizing project 
     stationary or signing such solicitation utilizing your title 
     as manager. Any violation of this policy will result in 
     severe disciplinary action.
                                                                    ____



                               Congressmand David M. McIntosh,

                                 Washington, DC, November 2, 1995.

  McIntosh Blasts Lobbying Group NCSC for Intimidating Older Americans

       Washington--Leading the drive in the House to end taxpayer 
     subsidies to lobbyists who launder those funds for political 
     activities, freshman Rep. David McIntosh, R-Ind., on Thursday 
     blasted a taxpayer-subsidized lobbying group for intimidating 
     seniors into paying dues to that group.
       The National Council of Senior Citizens receives 95 percent 
     of its annual budget, or $73 million, in taxpayer grants--
     making it virtually an arm of the federal government. One of 
     its subsidiaries, the NCSC-Housing Management Corp., operates 
     dozens of seniors' housing projects nationwide. In one 
     housing project, Robert Sharp Towers in Miami, the NCSC 
     threatened to take away seniors' housing if they refused to 
     pay NCSC dues.

[[Page H 11738]]

       In a June letter to residents of Robert Sharp Towers, NCSC 
     asked for membership dues (see attached letter). The letter 
     also said benefits of NCSC membership include ``the privilege 
     of living in these beautiful buildings . . . free from 
     financial worries of high rent and big raises, which people 
     are forced to pay in privately-owned apartments.''
       McIntosh said the letter is the worst form of intimidation 
     and prays upon vulnerable senior citizens who depend on NCSC 
     for housing.
       ``The message to seniors from this thinly veiled threat is 
     clear--either pay NCSC dues or you're out on the street,'' 
     McIntosh said. ``Not only is NCSC using our tax dollars to 
     pay for its lobbyists, but it also is threatening and 
     coercing vulnerable older Americans--and that's an outrage.
       ``While taking more than $73 million from taxpayers, NCSC 
     lobbies, operates a PAC to make political contributions and 
     buys advertising against congressional efforts to balance the 
     budget. The activities of NCSC are a scandal and an affront 
     to every taxpayer because we're the ones subsidizing NCSC's 
     lobbying and intimidation--taxpayers are subsidizing welfare 
     for lobbyists.''
       Each year the government hands out as much as $160 billion 
     in taxpayer grants to thousands of nonprofit groups. While 
     many of these groups do charitable work that benefits 
     society--feeding the poor, housing the homeless or cleaning 
     the environment--others engage in highly sophisticated 
     lobbying and political advocacy. And some nonprofits even do 
     their lobbying at taxpayers' expense.
       During the last six months, the House Government Reform and 
     Oversight subcommittee on Regulatory Affairs--on which 
     McIntosh serves as chairman--has held four hearings into the 
     money laundering of taxpayer funds for Washington lobbyists. 
     Each hearing has been a window into the world of high-powered 
     Washington lobbying and the lengths to which some 
     lobbyists will go to hide their taxpayer subsidy.
       On the NCSC, McIntosh has found that while taking in $73 
     million in taxpayer grants NCSC also operates an aggressive 
     political action committee that during the last four years 
     has made $405,000 in contributions to candidates for the 
     House and Senate. NCSC also is participating in a labor-based 
     coalition--comprised of other lobbyists that also receive 
     taxpayer grants--that is directing a multi-million dollar 
     television advertising campaign against congressional efforts 
     to balance the budget and save Medicare. The ads include 
     attacks against specific lawmakers.
       In an investigative series on lobbying by taxpayer-financed 
     groups, the New York Post reported last month that the 
     ``first 15 pages of its (NCSC's) 32-page annual report detail 
     NCSC's extensive `advocacy' activities, including * * * 
     lobbying for Clinton's health care plan and against the 
     balanced budget amendment.''
       The Post also highlighted the NCSC housing subsidiary and 
     the motivation for its lobbying: ``The NCSC successfully 
     fought cuts in a program especially important to its bottom 
     line: the Section 202 federal housing subsidy for seniors, 
     which brings in tens of millions to its subsidiary, NCSC-
     Housing Management Corp.''

  Mrs. SCHROEDER. Mr. Speaker, will the gentleman yield?
  Mr. McINTOSH. I yield to the gentlewoman from Colorado.
  Mrs. SCHROEDER. One of the questions I had, Mr. Speaker, to the 
gentleman, as the gentleman knows, I offered an amendment similar to 
his, vis-a-vis the military-industrial complex contractors and other 
people who, really, 100 percent of their money was coming through the 
Federal Government through contracts. As you know, they also send out 
letters to their management saying everyone must give, they must give 
cheerfully, and they must give to the following people, and so forth. 
That went down.
  Can the gentleman tell me, what is the distinction between the 
charitable nonprofit side and these for profits?
  Mr. McINTOSH. Mr. Speaker, I ask unanimous consent to continue for 1 
additional minute.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Indiana?
  There was no objection.
  Mr. McINTOSH. Mr. Speaker, the key difference there is that 
contractors are already covered by Government regulations and have very 
strict limits on what they can do for lobbying. There has also been a 
misunderstanding about our bill. It is not only applying to charities 
and nonprofit groups, but also to for-profit groups, including 
Government contractors when they receive grants, such as research 
grants. So the gentleman from Colorado [Mr. Skaggs], who does not agree 
with our legislation, pointed out that many businesses would be limited 
by our bill in how much lobbying that they could in fact do.
  Let me, if I might ask the gentlewoman, if we incorporated her 
provision into the bill, would she then be able to work with me to try 
to get this passed?
  Mrs. SCHROEDER. Mr. Speaker, if the gentleman will continue to yield, 
one of the reasons I offered this is because I think it is unbelievable 
we are going after the Girl Scouts and not after the Lockheeds and the 
big military people. I am shocked at the people who voted to go after 
the Girl Scouts, but not to go after that. I think we ought to be 
evenhanded. I would prefer we go after neither.
  Mr. McINTOSH. Let me say, Mr. Speaker, we are not going after the 
Girl Scouts.

                          ____________________