Mr. President, this is a proud day for the Senate. I certainly thank the Chair of the committee, the Senator from California, for all her guidance and hard work to make sure this legislation got to this point. I certainly thank the…
Mr. President, this is a proud day for the Senate. I certainly thank the Chair of the committee, the Senator from California, for all her guidance and hard work to make sure this legislation got to this point. I certainly thank the Presiding Officer, Mr. Obama of Illinois, who has been a wonderful partner in this effort. I enjoyed working with him, and he was tough all the way through when it counted to make sure we would end up with this kind of strong legislation. I thank the Presiding Officer.
Many months of work on legislation to reform our Nation's lobbying disclosure laws and the rules that govern our conduct as Senators are about to come to a close. The result is a bill that by any measure must be considered landmark legislation. I am pleased to support this bill, and I urge my colleagues to vote for cloture and support the bill. I want to speak for a few minutes about what is in this bill and the forces that brought us to this moment.
I introduced the first comprehensive lobbying and ethics reform package in the Senate in July 2005, about 10 years after enactment of the Lobbying Disclosure Act of 1995 and the last significant changes to the Senate's rules on gifts and travel on which I worked with the senior Senator from Arizona. A decade of experience had exposed the weaknesses in those important pieces of legislation. In light of growing concern about the relationships between certain Members of Congress and Washington lobbyists, I thought it was time to undertake further significant reform.
In the months that followed, the Jack Abramoff scandal consumed more and more space on the front pages of the newspaper. When he was indicted in December, lobbying and ethics reform all of a sudden got a big burst of momentum in Congress. In the first few months of 2006, radical reform seemed not only possible but likely. Hearings were held, and a bidding war for who could sound the most sincere about fixing the problems that had led to the Abramoff scandal ensued.
Unfortunately, the congressional leadership at the time talked a good game, but was not really committed to reform. The bill that passed the Senate last May fell well short not only of what was needed, but also of what had been promised only a few months earlier. The House leadership waited even longer to act and tried to add controversial campaign finance legislation to the package, dooming it to defeat. The conventional wisdom was that the voters didn't care, at least that's what the defenders of the status quo assured themselves as they engineered the stalemate that led to no reform at all being enacted. As we found last November, they were wrong.
The voters sent a clear message in November 2006 that they were fed up with the way things were going in Washington. And the leaders of the new Congress responded to that message by making lobbying and ethics reform their very top priority. Speaker Pelosi included major changes to the ethics rules in the House in a package of rules changes adopted on the very first day of the session. And Majority Leader Reid introduced an ethics and lobbying reform package as S. 1 and brought it immediately to the Senate floor.
I am pleased that only 7 months later, we are here today to finish the job. The bill before us is a very strong piece of reform legislation. We have a real ban on gifts from lobbyists, strong new rules governing privately funded travel, a requirement that Senators pay the full charter rate to travel on corporate jets for personal, official or campaign purposes, strengthened revolving door restrictions, and improved lobbying disclosure provisions. And for the first time, the public will get a full accounting, through reports filed by lobbyists, and reports filed by campaigns and party committees, of all the ways that lobbyists provide financial support for the Members of Congress who they lobby.
I am very pleased also that the bill includes provisions to provide greater transparency in the process by which
legislation is considered here in the Senate. Finally, after years of failed attempts, secret holds on legislation will be a relic of the past. In addition, out of scope additions to conference reports can be stricken individually rather than bringing down the whole report. All of these items show the seriousness with which this Congress and its new leadership addressed the anger that the American people expressed last November.
Let me say a word about earmarks. I heard my colleagues discussing it, and they know how strong I have been on this issue and how much I opposed the earmark process in my own practices and how many times I supported strong legislation in this regard. I have long been a strong supporter of earmark reform. I have cosponsored legislation on this topic with the Senator from Arizona, Mr. McCain. Back in January, when the Senate first debated this bill, I broke with my leadership and supported the earmark reform amendment authored by the junior Senator from South Carolina, Mr. DeMint. It is my judgment that the earmark reforms included in the proposal before the Senate today are consistent with the DeMint amendment, much stronger than the original bipartisan leadership proposal that was introduced in January, and an enormous improvement over the way earmarks had been handled by both Democratic and Republican-controlled Congresses in the past. It is simply not accurate to say that the final version of this provision guts the DeMint amendment that the Senate passed early this year. The minor changes that were made certainly do not justify a vote against cloture or against the bill.
The difference between the approach to lobbying and ethics reform this year and last year is this: Last year there was a lot of tough talk, but when it came down to it, the goal was to try to satisfy public outrage but actually do as little as possible. This year, the tough talk was backed up by tough action. This bill includes real reform on things like gifts and earmarks that get a lot of public attention and also on things like secret holds and corporate jets that occur mostly behind the scenes but have a big impact on how things work in Washington.
I especially thank Majority Leader Reid for his steadfast insistence on passing strong legislation. This is a great accomplishment for him and for the Senate. I am pleased it is getting done in a timely manner. And I want to thank my colleagues for recognizing that regardless of how reforms might inconvenience us or impact our personal lifestyles, our priority must be to convince our constituents that we are here to advocate their best interests, not those of well-connected lobbyists.
Ethical conduct in government should be more than an aspiration, it should be a requirement. That is what this bill is all about. I am proud to support it, and I urge my colleagues to vote aye on cloture, and on final passage of the bill.
I yield the floor.
Mr. President, one of the most important provisions contained in S. 1 when it first passed the Senate in January was an amendment offered by the junior Senator from Illinois, Mr. Obama, to require lobbyists to report on a quarterly basis the campaign contributions that they collected or arranged for Members of Congress. I was the primary cosponsor of that amendment. The activity the amendment covered is often called ``bundling.'' S. 1, as passed by the Senate, also required lobbyists to report on fundraisers that they host or cohost.
I am very pleased that the final bill maintains the requirement that this information be disclosed. It is important to note, however, that an agreement was reached to move the duty to report this information from the lobbyists to campaigns, in part to protect Members from unfounded allegations that lobbyists had raised political contributions for them when they actually had not. I would like to ask the Senator from Illinois, who worked hard to make sure that a bundling provision was included in the final bill, if section 204 of the bill is designed to capture the same kind of activity that the Obama amendment covered-- lobbyists' bundling of contributions and hosting of fundraisers for Federal candidates?
I agree with that. With respect specifically to fundraisers hosted or cohosted by lobbyists, my view is that virtually all such events would be covered by this provision. Is
that how the Senator from Illinois sees it as well?
That is my understanding as well of section 204. It requires, however, that a candidate or campaign know that a lobbyist has raised a certain amount of money, not that they are just generally aware that the lobbyist has been fundraising for the campaign.
And it should be understood as well that the term ``raised'' in section 204 includes but is broader than the term ``solicited,'' which is defined in the FEC regulations issued to implement the campaign finance laws. For example, even if a lobbyist does not make a solicitation for a contribution, as the term ``solicit'' has been defined in FEC regulations, the lobbyist will still have ``raised'' a contribution if the lobbyist facilitated the contribution by hosting or cohosting a fundraising event that brought in the contribution.
Yes, the purpose of the bundling reporting provision is to get as much disclosure as possible of bundling by lobbyists. In the provision, we have specifically asked the FEC to keep that purpose in mind as it promulgates regulations. The bill requires a committee to report ``each person'' who ``provided 2 or more bundled contributions'' in excess of the ``applicable threshold,'' which is an aggregate amount of $15,000 in a 6-month period. When two or more lobbyists are jointly involved in providing the same bundled contributions--as, for instance, in the case of a fundraising event co-hosted by two or more lobbyists-- then each lobbyist is responsible for and should be treated as providing the total amount raised at the event, for purposes of applying the applicable threshold to the funds raised by that lobbyist, and for purposes of reporting by the committee of ``the aggregate amount'' of bundled contributions ``provided by each'' registered lobbyist ``during the covered period.''
It would be acceptable, of course, to report that certain funds were raised jointly in a single event so that by crediting each of the lobbyists involved with the total amount and reporting each lobbyist on the new schedule, the campaign does not suggest that the total amount of contributions bundled is far greater than the amount actually raised. But a campaign should not be able to avoid disclosing, for example, that three lobbyists raised $30,000 in a single fundraiser by claiming that each lobbyist has been credited with only one-third of the total amount. If this evasion were allowed, reporting for any fundraising event could be avoided simply by adding enough lobbyist cohosts for the event so that all of the lobbyists fall below the threshold. We certainly did not intend that result.
I agree. The Commission should not allow evasion or game playing of any kind, by campaigns, candidates, or lobbyists, to avoid reporting the activities of lobbyists. Section 204, the bundled contributions reporting section, along with section 203, which requires reports of campaign contributions and other payments by lobbyists themselves, is about giving information to the American people about how lobbyists provide financial assistance to Members of Congress and candidates. This information will allow the public to understand much better how Washington works. I congratulate the Senator from Illinois for successfully seeing his amendment through the process and into the final bill.
Mr. President, the bill before us contains, in section 542, a provision to prohibit Senators from attending parties to honor them at the national party conventions if those parties are paid for by lobbyists or organizations that employ or retain lobbyists. The provision originated with an amendment that I offered to S. 1 when the Senate considered S. 1 at the beginning of the year. My amendment passed the Senate on January 17, 2007, by a vote of 89 to 5. I am pleased that the final bill retains this provision and also contains in section 305 a similar provision that will apply to Members of the House of Representatives. I wanted to take a minute to explain the purpose and operation of the provision and why I believe it was an important addition to the bill.
When the Senate adopted the Reid amendment in January to strengthen the lobbyist gift ban, we took a huge step toward eliminating gifts to Members of Congress from lobbyists and groups that lobby. The final bill retained that language, and it is one of the most significant provisions in the bill. But it is important to remember that the lobbyist gift ban is subject to the same exceptions in the gift rule that now apply. Some of these exceptions, like the personal friendship exception and the informational materials exception, are sensible and limited. Others, particularly the widely attended event exception, sometimes allow items of great value to be given to Members. Over the next few years, the Senate should look closely at whether lobbyists will now flock to these exceptions in order to continue to give us gifts. We may need to revisit some of the exceptions in the future.
One application of the widely attended event exception needed to be addressed immediately. At the political party conventions, which many of us attend, lobbyists and groups that lobby have fine-tuned the widely attended event exception and turned it into almost a competition over who can throw the most lavish, the most over-the-top, the most excessive party in honor of a powerful Member of Congress. These parties have become huge gifts to the honored Members. Essentially they allow a Member to host a gigantic party, with an unlimited expense account granted by the generous lobbyist sponsor.
Mr. President, I will ask to have a USA Today story about these parties at the Republican convention in 2004 printed in the Record at the conclusion of my remarks.
Here is how that story begins:
On Tuesday night, a few fortunate Republicans attending the
party's convention will have a chance to try on ``the most
exclusive and prestigious jewels in the world'' at the
Cartier Mansion on the edge of New York's Diamond District.
The point is not only to ``indulge yourself,'' as an
invitation says. It's also to honor a Republican congressman
from Texas, Henry Bonilla, at a cocktail reception under
chandeliers that sparkle almost as brightly as the diamonds
and emeralds beneath them.
The event is hosted by a group of Washington lobbyists who
hope to reinforce their ties with Bonilla, a powerful
chairman of a House appropriations subcommittee. It's but one
among more than 200 lavish parties being thrown this week by
corporations, lobbyists, trade groups and other interests
whose fortunes rise and fall on the actions of government
policymakers.
The article continues:
Bonilla is just one of many committee chairmen and members
of the House and Senate leadership who will be feted at what
may be the most expensive round of receptions, dinners,
concerts, golf outings and cruises ever at a political
convention.
The USA Today story lists some of the other parties. Let me quote again from the article:
House Speaker Dennis Hastert of Illinois was the honoree at
a reception Sunday afternoon sponsored by General Motors at
Tavern on the Green, a glittering Victorian gothic restaurant
on the edge of Central Park. The Distilled Spirits Council of
the United States threw a reception at the New York Yacht
Club for Rep. Thomas Reynolds of New York, chairman of the
party's House campaign committee. And AT&T, Chevron Texaco,
Target and Time Warner were among the sponsors of a martinis-
and-bowling night for House Rules Committee Chairman David
Dreier of California.
AT&T also is among the sponsors of a Tuesday ``Texas Honky
Tonk for Joe Barton,'' the Texas congressman who chairs the
House Energy and Commerce Committee. Barton's panel has wide
jurisdiction over telecommunications, health and energy. And
members of the House Financial Services and Senate Banking
committees will be toasted at Madame Tussaud's Tuesday night,
sponsored by JPMorgan Chase and Goldman Sachs.
The conventions have thus become giant lobbying festivals. Everyone who wants to get close to powerful Members of Congress is there, or at least everyone with the money to spend on a lavish party honoring a Member.
Here is what one lobbyist said about these parties at the 2004 Republican convention, according to USA Today:
``The Republicans are the majority party. They run the
administration, they run the House, they run the Senate. So
anyone who wants to talk to them is there,'' says David
Hoppe, a lobbyist at the Washington firm Quinn Gillespie &
Associates. ``It is a good time to see people and establish
personal relationships.''
Another lobbyist commented about the importance of these types of events as follows:
``You go (to the convention) with a targeted plan of who
you need to see, and you can get a lot of work done,'' says
Scott Reed, a Republican lobbyist and political strategist.
Approaching policymakers in a social setting puts them more
at ease, he says, ``unlike in Washington, where you are
normally coming to ask a favor or to help get somebody out of
trouble.''
I don't know about my colleagues, but my stomach turns when I read an article like this. And we all know that similar events take place at the Democratic convention. The brazenness of these events as places where monied interests have special access to lawmakers is just shocking. We simply could not go back to our constituents and claim credit for getting rid of gifts from lobbyists if we allowed these kinds of events to continue at the conventions. And so I offered my amendment, and I am pleased that it was adopted in January and included as section 542 in the final bill.
Section 542 does not prohibit parties at the convention, but it does prohibit Senators from accepting free attendance at parties thrown in their honor at the conventions. If an industry group wants to throw a party, fine, but they won't have a congressional guest of honor to use as a lure to get other lobbyists to pitch in and fund the party. And a Senator won't be able to accept a gift of hosting a huge party at the expense of lobbyists and groups that lobby.
According to USA Today, these huge parties honoring Members date back to 1996, just a year after the gift ban was passed. They have increased in recent years, especially since the soft money ban we passed in 2002 prevents corporations from making huge contributions to the political parties. These convention events are one of the few ways that corporations and the lobbyists they employ can show their loyalty to a Member of Congress in a big way. It is time that we close this brazen evasion of the spirit of the gift rules. I am pleased that section 305 and section 542 will do just that.
Mr. President, I ask unanimous consent that the USA Today article to which I referred be printed in the Record.