To clarify that a civil penalty is the exclusive penalty for violations of the Ethics in Government Act. IN THE SENATE OF THE UNITED STATES MARCH 20 (legislative day, MARCH 18), 1986 Mr. HATCH (for himself and Mr. CRANSTON) introduced the following bill; which was read twice and referred to the Committee on Governmental Affairs II 1 A BILL To clarify that a civil penalty is the exclusive penalty for violations of the Ethics in Government Act. Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 SEC. 2. Section 706 of title 2, United States Code, is 4 amended by inserting after the words "not to exceed 5 $5,000." and before the words "No action" the following: 6 "This civil penalty shall be the exclusive penalty for such 7 knowing and willful violation of section 702 of this title, not8 withstanding any other provision of the United States Code, 9 including section 1001 of title 18. This section shall be 2 1 deemed to be effective on the date of enactment of the Ethics 2 in Government Act.". 3 SEC. 3. Section 304 of title 28 appendix, United States 4 Code, is amended by inserting after the words "not to exceed 5 $5,000." the following: "This civil penalty shall be the ex6 clusive penalty for such knowing and willful violation of sec7 tion 302 of this title, notwithstanding any other provision of 8 the United States Code, including section 1001 of title 18. 9 This section shall be deemed to be effective on the date of 10 enactment of the Ethics in Government Act.". 11 SEC. 4. Section 204 of title 5 appendix, United States 12 Code, is amended by inserting after the words "not to exceed 13 $5,000." the following: "This civil penalty shall be the ex14 clusive penalty for such knowing and willful violation of sec15 tion 202 of this title, notwithstanding any other provision of 16 the United States Code, including section 1001 of title 18. 17 This section shall be deemed to be effective on the date of 18 enactment of the Ethics in Government Act.". S 2214 IS Section 706, Title 2, United States Code § 706. Failure to file or filing false reports The Attorney General may bring a civil action in any appropriate United States district court against any individual who knowingly and willfully falsifies or who knowingly and willfully fails to file or report any information that such individual is required to report pursuant to section 702 of this title. The court in which such action is brought may assess against such individual a civil penalty in any amount not to exceed $5,000. No action may be brought under this section against any individual with respect to a report filed by such individual in calendar year 1978 pursuant to section 701(d) of this title. Section 304, Title 28 Appendix, United States Code 8 304. Failure to file or falsifying reports (a) The Attorney General may bring a civil action in any appropriate United States District Court against any individual who knowingly and willfully falsifies or who knowingly or willfully fails to file or report any information that such individual is required to report pursuant to section 302. The court in which such action is brought may assess against such individual a civil penalty in any amount not to exceed $5,000. (b) The Committee shall refer to the Attorney General the name of any individual the Committee has reasonable cause to believe has willfully failed to file a report or has willfully falsified or failed to file information required to be reported. Injunction 3 Jurisdiction 2 1. Parties Notes of Decisions In view of fact that action was not suit for money damages but was suit to have Act of Congress, this chapter, declared unconstitutional and its enforcement enjoined, judgment would not be prejudicial to Judicial Ethics Committee or its chairman, provided for under this chapter, and court could render adequate relief to parties before it, so that such Committee and its chairman were not indispensable parties requiring dismissal of suit for failure to obtain personal jurisdiction over them. Duplantier v. U.S., C.A.La. 1979, 606 F.2d 654, rehearing denied 608 F.2d 1373, certiorari denied 101 S.Ct. 854, 449 U.S. 1076, 66 L.Ed.2d 798. 2. Jurisdiction Duties of Judicial Ethics Committee and its chairman under this chapter did not amount to such contact with Louisiana as to confer personal jurisdiction over committee and its chairman under Louisiana Long-arm Statute, LSA-R.S. 13:3201 in view of fact that chairman and its Committee had not transacted any business in Louisiana nor did they regularly engage in any other persistent course of conduct within the state. Duplantier v. U.S., C.A.La.1979, 606 F.2d 654, rehearing denied 608 F.2d 1373, certiorari denied 101 S.Ct. 854, 449 U.S. 1076, 66 L.Ed.2d 798. 3. Injunction Where district court did not have jurisdiction to enter in personam injunction against Judicial Ethics Committee and its chairman but did have jurisdiction to test constitutionality of this chapter in suit against United States and Attorney Gener al, Court of Appeals, in view of great public importance of this chapter and in view of interest of judicial economy, would pass upon merits of plaintiffs' motion for preliminary injunction against enforcement of this chapter, based on asserted unconstitutionality of this chapter. Duplantier v. U.S., C.A.La.1979, 606 F.2d 654, rehearing denied 608 F.2d 1373, certiorari denied 101 S.Ct. 854, 449 U.S. 1076, 66 L.Ed.2d 798. Section 204, Title 5 Appendix, United States Code 8 204. Failure to file or filing false reports (a) The Attorney General may bring a civil action in any appropriate United States District Court against any individual who knowingly and willfully falsifies or who knowingly or willfully fails to file or report any information that such individual is required to report pursuant to section 202. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $5,000. (b) The head of each agency, each Secretary concerned, or the Director of the Office of Government Ethics, as the case may be, shall refer to the Attorney General the name of any individual he has reasonable cause to believe has willfully failed to file a report or has willfully falsified or willfully failed to file information required to be reported. (c) The President, the Vice President, the Secretary concerned, the head of each agency, and the Office of Personnel Management, may take any appropriate personnel or other action in accordance with applicable law or regulation against any individual failing to file a report or falsifying or failing to report information required to be reported. Legislative History. For legislative history and purpose of Pub. L. 95-521, see 1978 U.S. Code Cong, and Adm. News, p. 4216. See, also, Pub.L. 96-19, 1979 U.S. Code Cong. and Admi. News, p. 144. Section 1001, Title 18, United States Code § 1001. Statements or entries generally Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both. June 25, 1948, c. 645, 62 Stat. 749. Statement of Senator Orrin G. Hatch Committee on Governmental Affairs Subcommittee on I want to thank Senator Cohen and his staff for arranging this hearing and for inviting me to testify. I applaud Senator Cohen and the other members of this Subcommittee for their vigilant work in overseeing govern ment management. The Together with Senator Cranston, I am the primary sponsor of S. 2214, the bill we are here to discuss. bill is simple in purpose and affect. It clarifies the original intent of Congress to impose civil and not criminal penalties for violations of the Ethics in Government Act. The Ethics Act was passed in 1978 after both houses of Congress had given the subject a great deal of time and attention. Many saw the Act's financial disclosure filings as undue intrusions into the private lives of Members of Congress and the other government employees to whom the Act applies. Others felt the disclosure requirements were necessary to provide voters and the public at large with a clearer picture of government officials' personal contacts and financial dealings. |