[Senate Report 110-202]
[From the U.S. Government Publishing Office]



110th Congress 
 1st Session                     SENATE                          Report
                                                                110-202
_______________________________________________________________________

                                     

                                                       Calendar No. 435

            PRESIDENTIAL LIBRARY DONATION REFORM ACT OF 2007

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                               H.R. 1254

   TO AMEND TITLE 44, UNITED STATES CODE, TO REQUIRE INFORMATION ON 
     CONTRIBUTORS TO PRESIDENTIAL LIBRARY FUNDRAISING ORGANIZATIONS




                October 22, 2007.--Ordered to be printed
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                         Troy H. Cribb, Counsel
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
           John K. Grant, Minority Professional Staff Member
                  Trina Driessnack Tyrer, Chief Clerk


                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................4
  V. Evaluation of Regulatory Impact..................................5
 VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Bill, as Reported............7
                                                       Calendar No. 435
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-202

======================================================================



 
            PRESIDENTIAL LIBRARY DONATION REFORM ACT OF 2007

                                _______
                                

                October 22, 2007.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                        [To accompany H.R. 1254]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (H.R. 1254) to amend 
title 44, United States Code, to require information on 
contributors to Presidential library fundraising organizations, 
reports favorably thereon with amendments and recommends that 
the bill do pass.

                         I. Purpose and Summary

    H.R. 1254 is a bill to amend title 44, United States Code, 
to require any organization that is established for the purpose 
of raising funds for creating, maintaining, expanding, or 
conducting activities at a Presidential archival depository or 
any facilities relating to a Presidential archival depository 
to disclose the sources and amounts of any funds raised, and 
for other purposes. Under existing law, current and former 
Presidents, through privately established foundations, are free 
to raise unlimited amounts of money from undisclosed sources to 
fund the construction and maintenance of their Presidential 
libraries and related facilities. H.R. 1254 would amend the 
Presidential Libraries Act (44 U.S.C. 2112) to make the 
fundraising process for Presidential libraries open to public 
scrutiny by requiring the disclosure of the sources and amounts 
of certain donations made during and after a President's term 
in office.

              II. Background and Need for the Legislation


               HISTORY OF THE PRESIDENTIAL LIBRARY SYSTEM

    The Presidential library system formally began in 1939, 
when President Franklin D. Roosevelt developed the concept of a 
federally maintained Presidential library to house his 
Presidential papers and other historical materials. Friends of 
President Roosevelt formed a corporation to raise funds for the 
construction of a library located on the grounds of his family 
home in Hyde Park, New York. President Roosevelt's decision to 
create a library came from his belief that Presidential papers 
are an important part of the Nation's heritage and should be 
accessible to the public. Today the National Archives and 
Records Administration (NARA) administers a nationwide network 
of Presidential libraries, beginning with the 31st President of 
the United States, Herbert Hoover. The libraries are a valuable 
resource for historians, academics, researchers and the public.
    The Presidential Libraries Act of 1955 (P.L. 84-373) 
established the basic policy for creating federally maintained 
Presidential libraries. To establish a Presidential library, 
friends, family members and associates of an incumbent 
President generally establish a private foundation or other 
organization to receive contributions to obtain a site and to 
construct the facility. Once completed, the facility is turned 
over, along with an operating endowment, to NARA, which is 
headed by the Archivist of the United States. NARA operates and 
maintains Presidential libraries using the operating endowment 
(described below) and federally appropriated funds. The 
libraries are typically located either in the former 
President's hometown or on a university campus. They house the 
official records and papers of former Presidents, as well as 
documentary materials of the President's family and associates.
    To address concerns about the increasing taxpayer cost of 
Presidential libraries, Congress amended the Presidential 
Libraries Act in 1986 (P.L. 99-323), establishing certain 
reporting requirements for NARA, architectural and design 
conditions, and fiscal limitations regarding future 
Presidential libraries, including a requirement that an 
operating endowment be provided. The endowment requirement is 
intended to offset the building operation costs and to reduce 
the amount of appropriations needed for building operations. 
That endowment was set at 20% of the cost of the building for 
libraries of 70,000 square feet or less, and for larger 
facilities this percentage increases in accordance with the 
size of the facility. The Consolidated Appropriations Act of 
2003 increased the required endowment to at least 40% of the 
cost of the building for future presidents (P.L. 108-7).\1\
---------------------------------------------------------------------------
    \1\The new requirements apply to ``any President who takes the oath 
of office as President for the first time on or after July 1, 2002.''
---------------------------------------------------------------------------

       THE NEED FOR DISCLOSURE OF PRESIDENTIAL LIBRARY DONATIONS

    Over the years, Presidential libraries have evolved into 
multi-purpose institutes that, in addition to housing the 
official papers of a former President, can include museums, 
conference facilities, and classrooms. The cost of these 
facilities can be substantial. Press accounts indicate that the 
George H.W. Bush library center cost $83 million to build, the 
William J. Clinton library center cost $165 million to build, 
and George W. Bush library and think tank in Texas may cost as 
much as $500 million.\2\
---------------------------------------------------------------------------
    \2\See A Room of His Own, The Economist (Mar. 15, 2007); SMU Has 
the Inside Track on Presidential Library, The Fort Worth Star-Telegram 
(Dec. 22, 2006); Bush's Dream Library, National Journal (Dec. 2, 2006); 
House Bill Could Force Library Donors Out of Shadows, The Hill (Nov. 
29, 2006).
---------------------------------------------------------------------------
    Fund-raising for Presidential libraries can begin well 
before a President leaves office. Under current law, there are 
no limits on the amount of money Presidents and their 
associates may raise for a Presidential library, no constraints 
on when fund-raising may begin, and no limits on the size of 
donations. Foreign governments, foreign individuals, and 
foreign corporations are not prohibited from making donations 
to Presidential libraries. Unlike the disclosure of 
contributions to federal campaigns under the Federal Election 
Campaign Act (2 U.S.C. Sec. Sec. 431 et seq.) or the disclosure 
of the amounts of interested parties spend to lobby Congress 
and the federal government under the Lobbying Disclosure Act (2 
U.S.C. Sec. Sec. 1601 et seq.), there is no requirement that 
Presidential libraries disclose donations. Under the Honest 
Leadership and Open Government Act of 2007 (P.L. 110-81), 
registered lobbyists will be required, beginning in 2008, to 
disclose on a semiannual basis contributions equal to or 
exceeding $200 made to Presidential library foundations. 
Building on this first step toward disclosure, H.R. 1254 will 
create a comprehensive reporting system.
    Witnesses at a March 1, 2007 hearing conducted by the House 
Committee on Oversight and Government Reform supported the need 
for disclosure of presidential library donations. They argued 
that undisclosed contributions create a perception of 
impropriety and noted the benefits of disclosure to public 
confidence in the political process. Sheila Krumholz, the 
Executive Director of the Center for Responsive Politics 
testified:

        Herein lies the central concern: that those who donate 
        money to presidential libraries will in return receive 
        special access to, and favors from, the president and 
        the federal government. To minimize the potential for 
        that sort of payback, and to build trust among a 
        citizenry that already questions the ethics of elected 
        officials, public disclosure of contributions to 
        presidential library projects seems both appropriate 
        and wise.

    Celia Viggo Wexler, Vice President for Advocacy of Common 
Cause, stated in her testimony that requiring disclosure is 
important even after a President leaves office because many 
former Presidents are active and influential in the public 
sphere. Ms. Wexler noted that ``[g]iven the increasingly 
ambitious scope of the presidential libraries and museums, 
centers, and other entities linked to them, presidential 
fundraising may continue long after structures are built, and 
decades after a president held office.''

                        III. Legislative History

    H.R. 1254 was introduced on March 1, 2007, and referred to 
the Committee on Oversight and Government Reform, which held a 
hearing on contributions to Presidential libraries on March 1, 
2007. The witnesses were Sharon Fawcett, Assistant Archivist 
for Presidential Records, National Archives and Records 
Administration; Celia Viggo Wexler, Vice President for 
Advocacy, Common Cause; and Sheila Krumholz, Executive 
Director, Center for Responsive Politics. The Committee on 
Oversight and Government Reform held a markup to consider H.R. 
1254 on March 8, 2007, and ordered the bill to be reported by 
voice vote. On March 14, 2007, the House passed H.R. 1254 under 
suspension of the rules by a vote of 390 to 34.
    On March 15, 2007, the bill was received in the Senate and 
referred to the Committee on Homeland Security and Governmental 
Affairs. On August 1, 2007, the Committee considered H.R. 1254 
and ordered the bill reported favorably by voice vote as 
amended by the amendment offered by Chairman Lieberman. The 
Lieberman amendment, which was approved by voice vote, provided 
separate requirements for disclosure of donations while a 
President is in office and, after a President leaves office, 
when NARA has assumed responsibility for the facility.

                    IV. Section-by-Section Analysis


Section 1. Short title

    This section provides that the short title of H.R. 1254 is 
the ``Presidential Library Donation Reform Act of 2007.''

Sec. 2. Presidential libraries

    Subsection 2(a) adds a new subsection (h) to section 2112 
of title 44, United States Code.
    Subsection (h)(1)(A) requires Presidential library 
fundraising organizations to submit, on a quarterly basis, 
information about every contributor who gave the organization 
contributions (whether monetary or in-kind) totaling $200 or 
more during the quarterly period, with respect to a 
Presidential archival depository (including a depository of a 
sitting President) which has not been turned over to NARA. This 
amount parallels the threshold for disclosing contributions to 
federal political committees under the Federal Election 
Campaign Act, 2 U.S.C. Sec. 434(b). Subsection (h)(1)(B) 
requires the reporting of contributions (whether monetary or 
in-kind) totaling $1,250 or more for the quarterly period with 
respect to a Presidential archive which has been turned over to 
NARA. This threshold corresponds, on an annual basis, to the 
requirement that tax-exempt foundations must keep and report to 
the IRS information regarding certain contributions totaling 
$5,000 or more per year on IRS Form 990-PF, Schedule B.
    Subsection (h)(2) establishes that those reports should be 
made to NARA, the Committee on Oversight and Government Reform 
in the House of Representatives, and the Committee on Homeland 
Security and Governmental Affairs in the Senate and requires 
that information to be provided by April 15, July 15, October 
15, and January 15 (for the fourth quarterly filing).
    Subsection (h)(2)(C) establishes that reporting will 
continue during the lifetime of the President whose archives 
benefit from fundraising of a Presidential library fundraising 
organization.
    Subsection (h)(3)(A) defines a Presidential library 
fundraising organization as any organization established for 
the purpose of raising funds for creating, maintaining, 
expanding or conducting activities at a Presidential archival 
depository or related facilities. Subsection (h)(3)(B) 
establishes that Presidential library fundraising organizations 
must submit the amount of each contribution, the name and 
address of the donor, the date of the contribution, and, if the 
donor is an individual, the occupation of the donor.
    Subsection (h)(4) requires the Archivist to make the 
information submitted publicly available in a free, searchable, 
sortable, downloadable database.
    Subsection (h)(5)(A) prohibits a contributor from knowingly 
and willfully submitting false material information or omitting 
material information with respect to a contribution. Under 
subsection (h)(5)(B), a violation of (h)(5)(A) is treated as a 
felony, subject to the penalties described in 18 U.S.C. 
Sec. 1001.
    Subsection (h)(6)(A) prohibits an organization receiving 
contributions for a Presidential library from knowingly and 
willfully submitting false material information, or omitting 
material information, regarding contributions required to be 
disclosed under this bill. Under subsection (h)(6)(B), a 
violation of subsection (h)(6)(A) is treated as a felony, 
subject to the penalties described in 18 U.S.C. Sec. 1001.
    Subsection (h)(7)(A) prohibits any person from knowingly 
and willfully making a contribution to a Presidential library 
in the name of another person or permitting his or her name to 
be used to make such a contribution. This subsection also 
prohibits the knowing and willful acceptance of contributions 
made by one person in the name of another person. Under 
subsection (h)(7)(B), a violation of subsection (h)(7)(A) is 
subject to the penalties set forth in 2 U.S.C. Sec. 437g(d), 
the Federal Election Campaign Act, and is treated as if the 
violation were a violation of 2 U.S.C. Sec. 441b(b)(3) of that 
Act, a cross-reference that operates to apply the sanctions 
described in section 437g(d)(1)(B).
    Subsection (h)(8) authorizes NARA to promulgate regulations 
to implement the provisions of subsection (h).
    Section 2(b) of H.R. 1254 provides that the bill covers 
organizations that were established to raise funds for a 
Presidential library before, on or after the date of enactment 
of this bill. It also provides that the requirement to disclose 
information about contributions applies only to contributions 
made after the date of the bill's enactment.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The enactment of 
this legislation will not have significant regulatory impact.

                VI. Congressional Budget Office Estimate

                                                   August 16, 2007.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1254, the 
Presidential Library Donation Reform Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Matthew 
Pickford (for federal costs) and Paige Piper/Bach (for the 
private-sector impact).
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 1254--Presidential Library Donation Reform Act of 2007

    H.R. 1254 would require any organization that raises funds 
for a Presidential library to disclose the sources and amounts 
of such funds on a quarterly basis. The legislation would apply 
to donations of $200 or greater while the current President is 
in office and during the period before the federal government 
takes possession of the library. After the federal government 
takes possession of the library, this reporting requirement 
would continue for any donations of $1,250 or more during the 
President's lifetime. Additionally, H.R. 1254 would require 
fund-raising organizations to provide this information to the 
National Archives and Records Administration (NARA) and the 
Congress. The legislation would direct NARA to make this 
information public in a freely available searchable database. 
Finally, H.R. 1254 would establish criminal penalties, 
including fines, for violations of its provisions.
    Based on information from NARA, CBO estimates that 
implementing H.R. 1254 would cost $1 million in 2008 and about 
$5 million over the 2008-2012 period, assuming appropriation of 
the necessary amounts. That estimate assumes NARA would spend 
$1 million in 2008 to establish the proposed database and 
$800,000 annually thereafter to update and maintain it. We also 
estimate that any increases in federal spending for law 
enforcement, court proceedings, or prison operations related to 
criminal violations under H.R. 1254, which would be subject to 
appropriation, would be insignificant.
    Enacting the legislation could affect direct spending and 
receipts, but we estimate that any impact would not be 
significant. Because those prosecuted and convicted under H.R. 
1254 could be subject to criminal fines, the federal government 
might collect additional fines if the legislation is enacted. 
Collections of such fines are recorded in the budget as 
revenues, which are deposited in the Crime Victims Fund and 
later spent. CBO expects that any additional receipts and 
direct spending under H.R. 1254 would be negligible because of 
the small number of cases involved.
    H.R. 1254 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    H.R. 1254 would impose a private-sector mandate, as defined 
in UMRA, on organizations established for the purpose of 
raising funds for a Presidential library. The legislation would 
require those organizations to submit quarterly reports to the 
Administration and certain Congressional committees detailing 
the sources and amounts of certain contributions they receive. 
The reports would have to be submitted for a period of time as 
determined by conditions in the legislation. The cost for such 
organizations to report the mandated information would be 
minimal. CBO estimates, therefore, that the direct cost of the 
mandate would fall well below the annual threshold established 
by UMRA for private-sector mandates ($131 million in 2007, 
adjusted annually for inflation).
    On March 9, 2007, CBO transmitted a cost estimate for H.R. 
1254 as ordered reported by the House Committee on Oversight 
and Government Reform on March 8, 2007. The two versions of the 
legislation are substantively similar, and our estimates of 
impacts on the federal budget and the private sector are the 
same.
    The CBO staff contacts for this estimate are Matthew 
Pickford (for federal costs) and Paige Piper/Bach (for the 
private-sector impact). This estimate was approved by Peter H. 
Fontaine, Assistant Director for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
H.R. 1254 as reported are shown as follows (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

                           UNITED STATES CODE

TITLE 44--PUBLIC PRINTING AND DOCUMENTS

           *       *       *       *       *       *       *


CHAPTER 21--NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

           *       *       *       *       *       *       *



Sec. 2112. Presidential archival depository

           *       *       *       *       *       *       *


    (h)(1) Any Presidential library fundraising organization 
shall submit on a quarterly basis, in accordance with paragraph 
(2), information with respect to every contributor who--
          (A) with respect to a Presidential archival 
        depository (including a depository of a President who 
        currently holds the Office of President) for which the 
        Archivist has not accepted, taken title to, or entered 
        into an agreement to use any land or facility for the 
        archival depository, gave the organization a 
        contribution or contributions (whether monetary or in-
        kind) totaling $200 or more for the quarterly period; 
        or
          (B) with respect to a Presidential archival 
        depository for which the Archivist has accepted, taken 
        title to, or entered into an agreement to use any land 
        or facility for the archival depository, gave the 
        organization a contribution or contributions (whether 
        monetary or in-kind) totaling $1,250 or more for the 
        quarterly period.
    (2) For purposes of paragraph (1)--
          (A) the entities to which information shall be 
        submitted under that paragraph are the Administration, 
        the Committee on Oversight and Government Reform of the 
        House of Representatives, and the Committee on Homeland 
        Security and Governmental Affairs of the Senate;
          (B) the dates by which information shall be submitted 
        under that paragraph are April 15, July 15, October 15, 
        and January 15 of each year and of the following year 
        (for the fourth quarterly filing);
          (C) the requirement to submit information under that 
        paragraph shall continue to apply to a Presidential 
        library fundraising organization during the lifetime of 
        the President whose archives benefit from such 
        fundraising.
    (3) In this subsection:
          (A) The term ``Presidential library fundraising 
        organization'' means an organization that is 
        established for the purpose of raiding funds for 
        creating, maintaining, expanding, or conducting 
        activities at--
                  (i) a Presidential archival depository; or
                  (ii) any facilities relating to a 
                Presidential archival depository.
          (B) The term ``information'' means the following:
                  (i) The amount or value of each contribution 
                made by a contributor referred to in paragraph 
                (1) in the quarter covered by the submission.
                  (ii) The source of each such contribution, 
                and the address of the entity or individual 
                that is the source of the contribution.
                  (iii) If the source of such a contribution is 
                an individual, the occupation of the 
                individual.
                  (iv) the date of each such contribution.
    (4) The Archivist shall make available to the public 
through the Internet (or successor technology readily available 
to the public) as soon as is practicable after each quarterly 
filing any information that is submitted under paragraph (1). 
The information shall be made available without a fee or other 
access charge, in a searchable, sortable, and downloadable 
database.
    (5)(A) It shall be unlawful for any person who makes a 
contribution described in paragraph (1) to knowingly and 
willfully submit false material information or omit material 
information with respect to the contribution to an organization 
described in such paragraph.
    (B) The penalties described in section 1001 of title 18, 
United States Code, shall apply with respect to a violation of 
subparagraph (A) in the same manner as a violation described in 
such section.
    (6)(A) It shall be unlawful for any Presidential library 
fundraising organization to knowingly and willfully submit 
false material information or omit material information under 
paragraph (1).
    (B) The penalties described in section 1001 of title 18, 
United States Code, shall apply with respect to a violation of 
subparagraph (A) in the same manner as a violation described in 
such section.
    (7)(A) It shall be unlawful for a person to knowingly and 
willfully--
          (i) make a contribution described in paragraph (1) in 
        the name of another person;
          (ii) permit his or her name to be used to effect a 
        contribution described in paragraph (1); or
          (iii) accept a contribution described in paragraph 
        (1) that is made by one person in the name of another 
        person.
    (B) The penalties set forth in section 309(d) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 437g(d)) shall 
apply to a violation of subparagraph (A) in the same manner as 
if such violation were a violation of section 316(b)(3) of such 
Act (2 U.S.C. 441b(b)(3)).
    (8) The Archivist shall promulgate regulations for the 
purpose of carrying out this subsection.

                                  
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