[Congressional Record Volume 152, Number 66 (Wednesday, May 24, 2006)]
[Senate]
[Pages S5124-S5125]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SENATE RESOLUTION 492--TO AMEND THE STANDING RULES OF THE SENATE TO
PROHIBIT MEMBER FROM USING CHARITABLE FOUNDATIONS FOR PERSONAL GAIN
Mr. BAUCUS submitted the following resolution; which was referred to
the Committee on Rules and Administration:
S. Res. 492
Resolved,
SECTION 1. PROHIBITION ON USING CHARITIES FOR PERSONAL OR
POLITICAL GAIN.
(a) In General.--Rule XXXVII of the Standing Rules of the
Senate is amended by adding at the end the following:
``13. (a) A Member of the Senate shall not use for personal
or political gain any organization--
``(1) which is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code; and
``(2) the affairs over which such Member or the spouse of
such Member is in a position to exercise substantial
influence.
``(b) For purposes of this paragraph, a Member of the
Senate shall be considered to have used an organization
described in subparagraph (a) for personal or political gain
if--
``(1) a member of the family (within the meaning of section
4946(d) of the Internal Revenue Code of 1986) of the Member
is employed by the organization;
``(2) any of the Member's staff is employed by the
organization;
``(3) an individual or firm that receives money from the
Member's campaign committee or a political committee
established, maintained, or controlled by the Member serves
in a paid capacity with or receives a payment from the
organization;
``(4) the organization pays for travel or lodging costs
incurred by the Member for a trip on which the Member also
engages in political fundraising activities; or
``(5) another organization that receives support from such
organization pays for travel or lodging costs incurred by the
Member.
``(c)(1) A Member of the Senate and any employee on the
staff of a Member to which paragraph 9(c) applies shall
disclose to the Secretary of the Senate the identity of any
person who makes an applicable contribution and the amount of
any such contribution.
``(2) For purposes of this subparagraph, an applicable
contribution is a contribution--
``(A) which is to an organization described in subparagraph
(a);
``(B) which is over $200; and
``(C) of which such Member or employee, as the case may be,
knows.
``(3) The disclosure under this subparagraph shall be made
not later than 6 months after the date on which such Member
or employee first knows of the applicable contribution.
``(4) The Secretary of the Senate shall make available to
the public all disclosures filed pursuant to this
subparagraph as soon as possible after they are received.
``(d)(1) The Select Committee on Ethics may grant a waiver
to any Member with respect to the application of this
paragraph in the case of an organization which is described
in subparagraph (a)(1) and the affairs over which the spouse
of the Member, but not the Member, is in a position to
exercise substantial influence.
``(2) In granting a waiver under this subparagraph, the
Select Committee on Ethics shall consider all the facts and
circumstances relating to the relationship between the Member
and the organization, including--
``(A) the independence of the Member from the organization;
``(B) the degree to which the organization receives
contributions from multiple sources not affiliated with the
Member;
``(C) the risk of abuse; and
``(D) whether the organization was formed prior to and
separately from such spouse's involvement with the
organization.''.
(b) Effective Date.--The amendment made by this section
shall take effect on January 1, 2007.
Mr. BAUCUS. Mr. President, the resolution I am submitting aims to
ensure that charities under the control of Senators can be viewed in
the most ethical terms.
Mahatma Gandhi once said: ``Men say that I am a saint losing myself
in politics. The fact is that I am a politician trying my hardest to be
a saint.''
That sums up the purpose of my resolution. We in the Senate run for
office to do good. We try to make the country better. We try to serve.
We strive to do the right thing.
As much as we try, however, even innocent gestures can be perceived
as self-serving, or at worst, unethical.
Some of us have started charities that we believe help to serve our
country and important public needs.
Senators may innocently employ staff who they trust at the charity.
Senators may use lawyers who they are familiar with to ensure that
requirements are met. Senators may accept
[[Page S5125]]
contributions from corporations because the funds will be spent on a
worthy cause.
The activities that I have listed may betray nothing more than an
innocent effort to carry out charitable works. But the public has a
right to be skeptical. The public has a right to know what companies--
that may or may not have business before the Senate--are donating to
charities controlled by Senators.
My resolution would not ban Senators from starting charities. But it
would address the healthy skepticism that the public has expressed
about the rules governing charities controlled by Members of Congress.
As the Washington Post noted in an editorial on Tuesday, March 7
``[W]hen lawmakers have a personal interest in the charity, the
opportunities for abuse are greatly magnified.''
Because of the potential for abuse, and because of the perception of
abuse, I believe that rules governing charities controlled by Senators
should be ``greatly magnified.''
I am glad that the bill reported by the Homeland Security Committee
takes a step to provide more disclosure in this area. The Homeland
Security Committee bill would require disclosure of gifts by lobbyists
to charities controlled by Members of Congress.
This is a good first step, but I think we can do better.
My resolution would do the following: First, it would require that
any gift over $200 to a charity substantially influenced by a Senator
be disclosed if the Senator or their senior staff are aware of the
gift. While disclosing gifts from lobbyists is important, it is equally
imperative that gifts from corporations and individuals are also
disclosed.
Second, my resolution prohibits Senators from using a charity they
substantially influence for what can be perceived as their personal
gain.
How does the resolution do this? Under Senate Rule XXXVII, concerning
conflicts of interest, a Senator would be barred from deriving personal
gain from a charity that they substantially influence.
The resolution defines personal gain in the following way: (1) When a
Senator or their family member is employed by the charity in a paid
capacity (2) When a member of the Senator's staff is employed by the
charity in a paid capacity (3) When an individual or firm that receives
income from the Senator's political action committee serves in a paid
capacity to the charity (4) When the charity pays for travel or lodging
costs by the Senator on a trip where the Senator also engages in
political fund raising (5) And, finally, when another charity receives
payment from the Senator's charity to pay for the Senator's travel and
lodging.
In vetting this proposal, I have heard concerns that prohibition on a
Senator's family serving in a paid capacity of a charity they
substantially influence may be too broad. The example of my friend
Senator Elizabeth Dole is raised. When her husband, Senator Bob Dole
served as our distinguished majority leader, Senator Elizabeth Dole
served as the president of the American Red Cross. The purpose of my
resolution is not to clamp down on this from occurring.
That is why my resolution would allow Senators to seek a waiver from
the Senate Ethics Committee when a family member has substantial
influence over a charity, and the family member's influence over the
charity clearly does not provide any benefit to the Senator.
I know that some Senators may argue that more rules do not ensure
ethical conduct. That is true. Every Senator is responsible for
behaving ethically. My resolution will not automatically make unethical
arrangements ethical. Nor should the resolution be viewed as a
statement on the ethical conduct of members that currently maintain and
control charities. As Ecclesiastes chapter 3, verse 17 says, ``God
shall judge the righteous and the wicked.''
My resolution simply aims to do better--to give the public confidence
that when a Senator starts a charitable organization it is for
charitable purposes. It is to fulfill the commandment expressed in
Deuteronomy that ``Every man shall give as he is able. ``
My resolution has been endorsed by the watchdog groups Public Citizen
and the National Committee on Responsive Philanthropy.
I urge the Senate to support my resolution.
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