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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH


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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH
(House of Representatives - January 21, 1997)

Text of this article available as: TXT PDF [Pages H171-H235] IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH Mrs. JOHNSON of Connecticut. Mr. Speaker, pursuant to rule IX and by direction of the Select Committee on Ethics, I send to the desk a privileged resolution (H. Res. 31) in the matter of Representative Newt Gingrich, and ask for its immediate consideration. The Clerk read the resolution, as follows: House Resolution 31 In the Matter of Representative Newt Gingrich Resolved, That the House adopt the report of the Select Committee on Ethics dated January 17, 1997, In the Matter of Representative Newt Gingrich. The SPEAKER pro tempore. The resolution constitutes a question of privilege and may be called up at any time. Announcement by the Speaker Pro Tempore The SPEAKER pro tempore. Before we proceed, the Chair will have a statement about the decorum expected of the Members. The Chair has often reiterated that Members should refrain from references in debate to the conduct of other Members where such conduct is not the question actually pending before the House, either by way of a report from the Committee on Standards of Official Conduct or by way of another question of the privileges of the House. This principle is documented on pages 168 and 526 of the House Rules and Manual and reflects the consistent rulings of the Chair in this and in prior Congresses. It derives its force primarily from clause 1 of rule XIV which broadly prohibits engaging in personality in debate. It has been part of the rules of the House since 1789. On the other hand, the calling up of a resolution reported by the Committee on Standards of Official Conduct, or the offering of a resolution as a similar question of the privileges of the House, embarks the House on consideration of a proposition that admits references in debate to a Member's conduct. Disciplinary matters by their very nature involve personalities. Still, this exception to the general rule against engaging in personality--admitting references to a Member's conduct when that conduct is the very question under consideration by the House--is closely limited. This point was well stated on July 31, 1979, as follows: While a wide range of discussion is permitted during debate on a disciplinary resolution, clause 1 of rule XIV still prohibits the use of language which is personally abusive. This is recorded in the Deschler-Brown Procedure in the House of Representatives in chapter 12, at section 2.11. On the question now pending before the House, the resolution offered by the gentlewoman from Connecticut, Members should confine their remarks in debate to the merits of that precise [[Page H172]] question. Members should refrain from remarks that constitute personalities with respect to members of the Committee on Standards of Official Conduct or the Select Committee on Ethics or with respect to other sitting Members whose conduct is not the subject of the pending report. Finally, Members should exercise care to maintain an atmosphere of mutual respect. On January 27, 1909, the House adopted a report that stated the following: It is the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members. This is recorded in Cannon's Precedents in volume 8 at section 2497. The report adopted on that occasion responded to improper references in debate to the President, but it articulated a principle that occupants of the Chair over many Congresses have held equally applicable to Members' remarks toward each other. The Chair asks and expects the cooperation of all Members in maintaining a level of decorum that properly dignifies the proceedings of the House. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 1 hour. Mrs. JOHNSON of Connecticut. Mr. Speaker, I ask unanimous consent that debate on the resolution be extended for a half an hour. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Connecticut? There was no objection. The SPEAKER pro tempore. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 90 minutes. Mrs. JOHNSON of Connecticut. Mr. Speaker, for purposes of debate only, I yield 45 minutes to the gentleman from Maryland [Mr. Cardin], pending which I yield myself such time as I may consume. Mr. Speaker, I rise as chairman of the Select Committee on Ethics to lay before you the committee's bipartisan recommendation for final action on the matter of Representative Newt Gingrich. The committee recommends that Representative Gingrich be reprimanded and reimburse the House $300,000. The penalty is tough and unprecedented. It is also appropriate. No one is above the rules of the House of Representatives. This matter centered on two key questions: whether the Speaker violated Federal tax law and whether he intentionally filed incorrect information with the Ethics Committee. While the committee investigated these questions extensively, its findings were inconclusive. Rather, the committee found that Representative Gingrich brought discredit to the House by failing to get appropriate legal advice to ensure that his actions would be in compliance with tax law and to oversee the development of his letters to the committee to ensure they were accurate in every respect. Each Member of Congress, especially those in positions of leadership, shoulders the responsibility of avoiding even the appearance of impropriety. Representative Gingrich failed to exercise the discipline and caution of his office and so is subject to penalty today. As I have said, the penalty recommended by the committee is tough and unprecedented. In past cases of this nature, the House has reprimanded a Member only where the Member was found to have intentionally made false statements to the Ethics Committee. In this case, the committee recommended a reprimand of Representative Gingrich even though the statement of alleged violations did not assert that he intentionally misled the committee. Likewise in past cases where the committee imposed monetary sanctions on a Member, the committee found that the Member had been personally enriched by the misconduct. The committee made no such finding against Representative Gingrich, yet recommends that a cost reimbursement of $300,000 be paid to the House by him. The report before us contains several hundred pages of exhibits and a detailed analysis of the subcommittee's findings. The allegations and the key facts supporting them were laid out by the special counsel during a public hearing on January 17. The committee's recommendations before you today end 2 long years of work. Throughout this process we never lost sight of our key goals: full and complete disclosure of the facts and a bipartisan recommendation. We accomplished both. Even though it would have been easy for Republicans or Democrats to walk away from the process at many stages, we did not, because we believed in this institution and in the ethics process. The investigative subcommittee was ably chaired by Representative Porter Goss. Representatives Ben Cardin, Steve Schiff, and Nancy Pelosi, along with Mr. Goss deserve the gratitude of this House for the extraordinary workload they shouldered and for their dedication to pursuing each issue until they reached consensus. Together with Mr. James Cole, the special counsel, they laid the groundwork for the bipartisan conclusion of this matter. I want to thank Mr. Cardin, the current ranking member, as well, for working with me through difficult times to enable the bipartisan Ethics Committee process to succeed. In the last 2 years the committee was forced to conduct its work against the backdrop of harsh political warfare. It is the first time ever that members of the Ethics Committee have been the target of coordinated partisan assaults in their districts. Coordinated political pressure on members of the Ethics Committee by other Members is not only destructive of the ethics oversight process but is beneath the dignity of this great institution and those who serve here. {time} 1215 Despite the pressures, we bring you today a bipartisan recommendation resolving the most complex charge against Representative Newt Gingrich. I ask for both my colleagues' rejection of the partisanship and animosity that has so deeply permeated the work of the House and for their support of the committee's resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. announcement by the speaker pro tempore The SPEAKER pro tempore. The gentleman will suspend. The Chair notes a disturbance in the visitors' gallery in contravention of the laws and the rules of the House. The Doorkeepers and police, the Chair believes, have already acted, but shall act to remove from the gallery those persons participating in a disturbance. If there is an outburst from the visitors' gallery, the Chair will make this statement but will insist on order. The Chair recognizes the gentleman from Maryland [Mr. Cardin]. Mr. CARDIN. Mr. Speaker, as I have said, this is a sad moment for the House of Representatives. One of our Members has admitted to a serious violation of the House rules. This process and this admission affects not only that Member but each Member who serves in this body. While I believe that is true of any ethics proceeding, it is particularly true and particularly troublesome in this case because the offending Member is the Speaker of the House, the third ranking official in our Government. We have received the report and recommendation from the special counsel. Mr. Gingrich has agreed with the judgment of the special counsel. In addition to the report, the recommendation of sanctions represents the bipartisan work produced by our investigative subcommittee. The report in the recommendation of sanctions has been overwhelmingly approved by the full Committee on Standards of Official Conduct and deserves the support of this House. Let me begin by saying how proud I am of the work of the investigative subcommittee. In my judgment, all four members of the subcommittee maintained their commitment to a process that was fair to the respondent as well as the House and its rules. I want to commend and compliment the work of our chairman, the gentleman from Florida [Mr. Goss], for the extraordinary work that he did as well as the work of the gentleman from New Mexico [Mr. Schiff] and the gentlewoman from California [Ms. Pelosi] and the work of the subcommittee. I also want to recognize the extraordinary service performed by Jim Cole, our special counsel; Kevin Wolf, his assistant; and Virginia Johnson from the [[Page H173]] Committee on Standards of Official Conduct. Before commenting on the substance of the resolution before us, I feel obligated to point out the severe problems that have plagued the process. The 1-year delay in 1995 in enlisting the services of the special counsel was wrong. We have some evidence that this delay may have been part of the strategy by allies of Mr. Gingrich. In sharp contrast to the good faith, bipartisan cooperation which governed the subcommittee's work, the orderly process collapsed on December 21, 1996, after the matter was forwarded to the full committee. Ignoring the advice of special counsel and the subcommittee, the Republican leadership in the House imposed an unrealistic deadline for the completion of our work to coincide with the Presidential inauguration. The schedule agreed upon by the full Committee on Standards of Official Conduct for full public hearings on the subcommittee findings was unilaterally and improperly canceled. These partisan actions were aimed at shielding Mr. Gingrich from a full airing of the charges to which he has admitted guilt. During the past 5 days the gentlewoman from Connecticut [Mrs. Johnson] and I have worked closely together to use these days as effectively as possible to achieve two objectives: First, in the face of an unrealistic time limit, to get the broadest possible public release of the information contained in the subcommittee's report; and second, to arrive at a fair, bipartisan recommendation on sanctions. We have achieved both objectives, and for that I would like to express my appreciation to the chairwoman. The report details the reason why the committee has found that Mr. Gingrich has committed a serious violation of the House ethics rules. I urge each of my colleagues to read the report and the accompanying exhibits. I will now briefly review the findings of the special counsel's report. First, we must disregard the notion that this case involves a college professor engaged in a normal academic classroom activity. The respondent in this case is not Professor Gingrich, but Representative Gingrich, a Member of the House, minority whip and then Speaker of the House, who had a vision to launch a political movement to change the country, in his words, from a welfare state to an opportunity society. Second, over a 5-year period Mr. Gingrich improperly commingled political activities with tax exempt organizations. When GOPAC ran short of funds, Mr. Gingrich sought contributions from several tax exempt entities in order to continue his partisan political crusade. Third, there is ample evidence that he did so in violation of tax laws. Celia Roady, the tax expert retained by the committee, has concluded that the tax laws were violated, and it is not even a close call. Our special counsel agrees with that judgment. In all, almost $1.5 million was spent by these tax exempt organizations, costing the U.S. Treasury hundreds of thousands of dollars in lost tax revenues that should have been paid. Fourth, one need not reach a conclusion on the tax issues to find that Mr. Gingrich has violated our ethical standards. From his involvement in the American Campaign Academy case, Mr. Gingrich knew that pursuing these activities posed a risk of potential tax law violations. The ACA case established limits on political activities of tax exempt organizations. It is important to understand that this case involved similar facts and some of the same parties as the matter investigated by the subcommittee. In fact, in response to a question from the special counsel, Mr. Gingrich stated, and I quote: ``I lived through that case. I mean I was very well aware of what the ACA case did and what the ruling was.'' All experts agreed that he should have sought tax advice before using tax exempt organizations to pursue his political agenda. In the words of our special counsel Mr. Gingrich's actions suggest that ``either Mr. Gingrich did not seek legal advice because he is aware that it would not have permitted him to use a 501(c)(3) organization for his projects,'' or he was ``reckless in an area that was fraught with legal peril.'' Finally, the House must make a judgment on the question of whether Mr. Gingrich deliberately misled the committee. Mr. Gingrich submitted two letters to the committee that he now admits contained information about GOPAC that was inaccurate. The facts surrounding these inaccuracies were well known to Mr. Gingrich. Mr. Gingrich had read the letters before submitting them to the committee. When the investigative subcommittee specifically called the contradiction in the letters to Mr. Gingrich's attention, he once again defended them as accurate even though they were clearly wrong. The misleading letters were sent with the express intent of persuading the Committee on Standards of Official Conduct to dismiss the pending charges. They had the effect of misleading the committee. It stretches credibility to conclude that the repeated misstatements were innocent mistakes. The linchpin of these findings is stated clearly in the report of special counsel: ``Of all the people involved in drafting, reviewing, or submitting the letters, the only person who had firsthand knowledge of the facts contained within them with respect to the Renewing American Civilization course was Mr. Gingrich.'' The special counsel concludes: ``Either Mr. Gingrich intentionally made misrepresentations to the committee or he was again reckless in the way he provided information to the committee concerning a very important matter.'' Mr. Gingrich's defense is that he has always been very sensitive to ethics issues and he was embarrassed by the obvious inaccurate letters. He said he never intended to mislead the committee. But Mr. Gingrich's actions with respect to the understanding reached with the Committee on Standards of Official Conduct belies his statement. Mr. Gingrich, through his attorneys, had entered into an agreement with the committee. That agreement provided ``Mr. Gingrich agree that no public comment should be made about this matter while it is still pending. This includes having surrogates sent out to comment on the matter and attempt to mischaracterize it.'' I am sure that Members of this House are well aware of public comment since the release of our findings on December 21. As the special counsel States, ``In the opinion of the subcommittee Members and the special counsel, a number of press accounts indicated that Mr. Gingrich had violated that agreement,'' the finding of the bipartisan committee and our special counsel. Mr. Gingrich's violation of the no comment agreement raises serious questions about the extent to which he has deliberately sought to mislead the committee in other instances. Beyond the events of December 21, 1996, Republican operatives close to Mr. Gingrich conducted an ongoing campaign to disrupt the committee's work. It is relevant for this House to consider these circumstances in determining the degree of Mr. Gingrich's culpability in providing the Committee on Standards of Official Conduct information that was not accurate, reliable, and complete. It is up to the Members of this House to determine the appropriate sanction for the violations committed by Mr. Gingrich. This is not a vote on whether Mr. Gingrich should remain Speaker of the House. Members need time to become familiar with the factual record presented in the special counsel's report and to consider the seriousness of these violations that have just come to light during the past 4 days. In the days and weeks to come Mr. Gingrich and each Member of this House should consider how these charges bear on the question of the speakership. The resolution before us, the House, today is a sanction for Representative Gingrich for the ethics violations that he has committed. According to the House rules a reprimand is appropriate for serious violations of ethical standards. Sadly, Mr. Gingrich's conduct requires us to confirm that this case involves infractions of at least that level of seriousness. He has provided inaccurate and misleading information to the Committee on Standards of Official Conduct and there is significant evidence that he intended to do so. The recent history of congressional ethics sanctions indicate the House has imposed the sanction of reprimand when a Member has been found knowingly to have given false statements. But the earlier cases did not involve [[Page H174]] giving false statements to the Committee on Standards of Official Conduct itself in response to an inquiry from the Committee on Standards of Official Conduct, and Mr. Gingrich's case involves more than just giving false information to the committee. Mr. Gingrich has also admitted to directing a political empire that made extensive use of tax exempt entities for political fundraising purposes. As a result of all these actions, the reputation of the House of Representatives has been damaged and tax dollars have been lost. But there is still more. This is not the first time Mr. Gingrich has had ethical problems that drew critical action by the Committee on Standards of Official Conduct. On other occasions he has been sighted by this committee for violating House rules. The American public has not forgotten the lucrative book advance contract that the incoming Speaker of the House was forced to renounce under public pressure. Our committee concluded in regards to that book deal: ``At a minimum this creates the impression of exploiting one's office for personal gain. Such perception is especially troubling when it pertains to the Office of the Speaker of the House, a constitutional office requiring the highest standards of ethical behavior.'' Because of all those factors, these violations require a penalty more serious than a reprimand. Considering all these matters, I urge this House to adopt the resolution before us. The resolution incorporates the recommendation of the special counsel, the investigative subcommittee, the full Committee on Standards of Official, and Mr. Gingrich. The sanction we recommend is somewhere between a reprimand and a censure. It provides a reprimand plus a required $300,000 contribution by Mr. Gingrich to the cost of these proceedings. In my view this payment should come from his personal resources because it is a personal responsibility. Mr. Speaker, with today's vote I will have completed my service on the Committee on Standards of Official Conduct. Over the past 6 years and 1 month I have participated in many ethics matters. Among the issues that we had before the committee during my tenure has been not only this matter but the House bank and post office matters, both of which exposed many Members of this House, including its leadership, to embarrassment either for misdeeds or for mismanagement. I must say, however, that the matter before us today has brought a threat to the Committee on Standards of Official Conduct that far exceeded anything I have seen. The committee was subject to repeated attempts to obstruct its work and improperly interfere with its investigation. As I leave the Committee on Standards of Official Conduct, I hope that the incoming Members will find the process has survived and will continue to serve this House and the people of our Nation. Mr. Speaker, I reserve the balance of my time. {time} 1230 Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico [Mr. Schiff], a distinguished member of the subcommittee. Mr. SCHIFF. Mr. Speaker, I first want to join in the compliments to the other committee members and to our staffs and special counsel because, even though we had many disagreements along the way, and obviously still have some disagreements, I think we made the best possible effort to get us here today. I agree with the gentleman from Maryland [Mr. Cardin] this is a sad day. It is a sad day when any Member is here because of a recommendation of the Committee on Standards of Official Conduct. Last time I was here it was because a Democratic colleague was here on our recommendations. I was not happier then because it was a Democrat and not a Republican then. I think it is a sad day when it is a Member of the House. Nevertheless, I think the House can be proud of the fact there is accountability for its Members. I wish such accountability could be found from every area of our government. Second, I am sorry that in the rendition of facts I just heard, there were certain partisan conclusions that eliminated other conclusions which I guess could be stated from the other side. For example, it was said that there was an attempt made by our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson] who got us here, when many people expected along the way we could never get here; but through her leadership we are here today. There was the accusation that our chairwoman deliberately tried to scuttle the information getting to the Members in order to mitigate any effect on Congressman Gingrich. Quite the contrary. Our chairwoman and the rest of us had an agreed to up to 5 days of public hearings. Those were changed only when our Democratic colleagues on the Committee on Standards of Official Conduct held a press conference in which they said the most important product we could produce would be a written report that Members could consider before they vote. That left our Chair, in my judgment, no alternative but to change directions and to postpone the public hearing, which we ultimately did have anyway, in favor of trying to produce the written report by this date which we have now accomplished. There has been no mention of the fact that Members on the Republican side particularly were subject to enormous political attack in their districts. If I were still a district attorney, a career I had before I got to Congress, I would have certain leaders arrested for attempted jury tampering, because I think that is what they were doing. They were trying to use political pressure to get a result in what is essentially a judicial type of deliberative body. That was their intent. That was one of the most unethical things I have seen since becoming a member of the Committee on Standards of Official Conduct. What I want to emphasize now is why we are here today. I want to point out that the statement made, that there have been many new facts revealed in the last several days, in my judgment is not correct. We are here because of a statement of alleged violation found by the ethics subcommittee and released publicly on December 21, 1996, to which the Speaker acknowledged. And those violations have not changed. What has changed is the reporting of those violations in the news media over the last several days. What I have seen in the news media in various forms is some significant misstatements of what the violations are. But I have to add that I do not believe that that was in this case the fault of the news media. It is their job to be critical of us, and it is our responsibility to respond if we think it is appropriate. But I want to make it very clear what I think happened was an unfortunate matter of timing, that on Friday of last week, our hearing did not begin and our written report was not available until 3 o'clock on Friday afternoon. Some reporters have told me there were not enough copies to go around. So they are trying to form deadlines for their programs or for their newspapers with a report that is over 200 pages long. I think it is entirely understandable that some errors were made at first. Nevertheless, I think some errors were made. They were made because Mr. Cole's report attempted to be a soup-to-nuts, beginning to end explanation of what we did in the ethics subcommittee to get to where we are today. In going through step by step, he quite properly, in my judgment, said we had this choice to make and we had this fact and we handled it as follows, and so forth. But what I have seen as reported as a final conclusion, certain excerpts from that report were intermediary at best. The final conclusion of the subcommittee did not change. That final conclusion is, first, that Mr. Gingrich should have sought competent legal, professional tax advice before he began his procedures that involved the use of a tax-exempt foundation, which under the law is called a 501(c)(3) organization. Second, that materials were sent to the Committee on Standards of Official Conduct in response to questions from the Committee on Standards of Official Conduct that the Speaker should have known were inaccurate. That is the final finding, if you will, of the subcommittee. The report goes through all of the events, and I heard the gentleman from [[Page H175]] Maryland [Mr. Cardin] make reference to a number of the events. But the findings did not change. All of the events would include things like we on the subcommittee interviewed everybody we could find who had anything to do with the preparation of those two letters that were inaccurate. What we found, in my judgment, if it were not so serious, and I recognize how serious it is, it would really be called a comedy of errors. What happened was the letters were prepared in Mr. Gingrich's law firm that sent the letters first to a staff member in Mr. Gingrich's office. The law firm thought that the staff member would correct any factual misstatements. The staff member thought the law firm had already checked out the facts. So nobody checked out the facts to see if they were accurate. But the most important thing is that Mr. Gingrich was never involved in the preparation of those letters at any point until the very end where he acknowledges he signed them, he should have read more carefully, and he is responsible for that before this House of Representatives. I would point out that in a letter of October 1996 that he prepared himself with his staff, he gave us entirely accurate information about the matters that are under consideration here. I think it is pretty obvious you do not give accurate information in October and then you can deliberately prepare information the following September and March that nobody would know the difference of. Based upon the allegation, the violations we found, the Committee on Standards of Official Conduct on a 7-to-1 vote, full committee now, entire committee, recommended the following penalty: It recommended a reprimand and a cost assessment of $300,000. In some meetings earlier with members, I have heard some members say that that is unique and they are concerned about that penalty being unique because, although we have imposed cost assessments before, we have never done so in the past for the cost of the investigation. That is basically what we did. We set $300,000 as the estimated cost of that portion of the investigation that dealt with clearing up the misstatements that we received, which may have begun to be prepared in Mr. Gingrich's law firm, but for which he is responsible as a Member of the House. I want to tell all Members that they do not need, in my judgment, to be concerned about the precedent value, because I believe everyone concerned understood that this is a unique penalty because the Speaker of the House is a unique official in our institution. In fact, that is the reason we decided to, on the subcommittee's part, propose a unique penalty, and we got word, I have to say ``got word,'' because we never met with the Speaker to discuss the penalty. All of the negotiations were by our special counsel on our behalf and the Speaker's attorney, Mr. Evans, on his behalf. So we got reports on it. But the report we got back was that Speaker Newt Gingrich agrees that because he holds a unique position in the House he should receive a unique penalty, so there is no doubt even the Speaker of the House is not above the rules. I would hastily add, however, two things, and conclude with this. The first is that I think there is room for this to be made a standing procedure in certain cases. For example, I saw what in my judgment were a number of frivolous complaints filed with the Committee on Standards of Official Conduct which had no other purpose than to be leaked to the press and create bad publicity for whomever was the target of those complaints. It seems to me that the precedent we have established here should apply to those who are found by the committee to have filed frivolous complaints. Finally, on how the funds should be paid if the House adopts the recommended penalty, we were deliberately silent on that. My colleague, the gentleman from Maryland [Mr. Cardin], is most certainly entitled to his opinion, but the subcommittee and the committee made no determination. Insofar as I have studied the precedents on financial remuneration to the Government, we have never established as a matter of law how these funds can be paid. Mr. Gingrich, if he does get this as a final penalty, understands all the ramifications, I am certain he does not need me to explain them to him or, for that matter, any of my colleagues on the other side. But the fact is the committee was silent deliberately on how any such funds should be paid. It is my understanding there are at least some precedents for campaign funds, for example, being used to reimburse the Government, and certainly we all know that the Chief Executive of the United States has a legal defense fund in which he raises money. So I am just saying that whatever the options are to Newt Gingrich as a Member of the House, they have not been precluded legally by the committee, and in my judgment they should not be. With that, Mr. Speaker, I just want to again commend our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson], my fellow members of the committee, and say I believe we have come up with an appropriate penalty, which some think is too harsh, some think is too lenient. That tells me we are about where we ought to be. I hope the House will adopt it. announcement by the speaker pro tempore The SPEAKER pro tempore (Mr. Bereuter). The Chair will request that visitors in the gallery, in coming and going, refrain from any audible disruption of the proceedings. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume briefly to comment on some of the points raised by the gentleman from New Mexico [Mr. Schiff]. Mr. Speaker, the gentleman from New Mexico [Mr. Schiff] is correct, we are in agreement on the recommendation. We put different emphasis on some of the facts. Mr. Gingrich clearly, in my view, had ample opportunity to know about the statements in his letters. He did indicate he hired an attorney in order to draft the two letters. Let me just read, if I might, from the transcripts as to the exchange between Mr. Cole and Mr. Baran, Mr. Baran being Mr. Gingrich's attorney. Mr. Cole: ``Would you have made sure that he had read it and approved it, or just the fact he read it is all you would have been interested in,'' referring to Mr. Gingrich? Mr. Baran said, ``No, I would have wanted him to be comfortable with this on many levels.'' Mr. Cole: ``Were you satisfied he was comfortable with it prior to filing it with the committee?'' Mr. Baran: ``Yes.'' Let me also point out that after this, after we pointed out to Mr. Gingrich the inconsistency in the letters, Mr. Gingrich wrote another letter back to the committee. Clearly he had time to review the inconsistencies by that time. The October 31, 1996, letter, in that letter he still maintains his innocence on inconsistencies in the letter, even though the letters were clearly inaccurate, he knew they were inaccurate, and he had a chance to reread the letters and correct the record. Mr. Speaker, I yield 11\1/2\ minutes to the gentlewoman from California [Ms. Pelosi], my colleague on the Committee on Standards of Official Conduct, who was on the investigative subcommittee and who has made a great contribution to this process and has been an extraordinary member of our Committee on Standards of Official Conduct. Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time and for his leadership and guidance throughout this process. Clearly without his involvement, we would not be here today with a bipartisan recommendation for a sanction for the Speaker of the House. Mr. Speaker, as a member of the investigative subcommittee, I would like to take this opportunity to publicly thank the gentleman from Florida, Porter Goss, our Chair of the investigative subcommittee, again acknowledge the gentleman from Maryland, Mr. Cardin, as ranking member for his service there, as well as to say how much I learned from the gentleman from new Mexico, Mr. Schiff, in the course of our service there. Clearly, from the debate so far, you can see that we had many unresolved difficult issues to deal with, and under the leadership of the gentleman from Florida [Mr. Goss], we went through that. I want to also commend our special counsel, James Cole, for making us stick to the facts, the law, and the ethics rules as those elements that were [[Page H176]] the only matters relevant to our decisions, and many thanks to Kevin Wolf and Virginia Johnson for their assistance and professionalism. I heard my colleague, the gentleman from New Mexico [Mr. Schiff], say in his earlier days as a prosecutor he might entertain thoughts of bringing jury tampering charges. If he decides to do that, I hope that the gentleman will include in his package the dirty tricks memo that is now in the public record that is a written document about attempts to undermine the ethics process directly by the Republican House leadership. Let me say though we did produce a bipartisan product. I hope our work will serve as a foundation for a bipartisan solution to be agreed to today. Today, others have said it, is a sad day. I think it is a tragic day. Here in the House of Representatives we will sanction a sitting Speaker for the first time. It is an unwelcome task to pass judgment on any of our colleagues, but we have a responsibility to uphold ethical standards called for in the rules and expected by the American people. I associate myself with the gentleman from Maryland, Mr. Cardin's, remarks about the process. We should not have to choose to make the American people aware of either the hearing, a full hearing, or the report. But since we have a report, I urge everyone to read it. I think it is very instructive and gives lie to many of the mischaracterizations that have been made about the violations that the committee charged Mr. Gingrich with and those which he admitted to. {time} 1245 The last few weeks have been dreadful. But we have an opportunity to say today to the American people that when we come to Washington, we do not check our integrity at the beltway, and that power is not a license to ignore ethical standards. We also have an opportunity to tell the American people that sanity can reign in the Congress by demonstrating our ability to agree and disagree in a respectful way. The American people gave us the privilege to serve; they expect us not only to make the laws and to obey the laws, but also to live up to a high ethical standard. So today we are here to address the failure of Speaker Gingrich with regard to the laws governing charitable contributions and GOPAC, and his failure to respond accurately and reliably to the Committee on Standards of Official Conduct. I would like to just take a moment to refer to the book, because as I asked people to read it, I want to point out the statement of alleged violations which was originally set forth by the special counsel. This is on page 155. Based on the information described above, the special counsel proposed a statement of alleged violations to the subcommittee on December 12. The statement of alleged violations contained 3 counts: Mr. Gingrich's activities on behalf of ALOF in regard to AOW and ACTV, and the activities of others in that regard with his knowledge and approval, constituted a violation of ALOF's status under section 501(c)(3). Second, Mr. Gingrich's activities on behalf of Kennesaw State College Foundation, the Progress and Freedom Foundation, and Reinhardt College in regard to the Renewing American Civilization course, and other activities in that regard, with his knowledge and approval, constituted a violation of those organizations' status under 501(c)(3). And, third, Mr. Gingrich had provided information to the committee, directly or through counsel, that was material to matters under consideration by the committee, which Mr. Gingrich knew or should have known was inaccurate, incomplete, and unreliable. These were not the alleged violations that were passed out at the committee because we did not come to agreement on them, but they are the original allegations by the special counsel. I think everyone is well aware that we have charged the Speaker in our statement of alleged violations that he did not ensure that the law was complied to in his activities, and that he gave information to the committee that was not accurate. Think how much easier it would be if we could all use the 501(c)(3), not consult a lawyer, and build our political agenda around tax deductible considerations. The American people in their generosity give the opportunity to charitable institutions to do charitable work. That does not include subsidizing our political activity. At the grassroots level we have always had to comply with the law in relationship to political activity and 501(c)(3). If we have to do it at the grassroots level, so should the Speaker of the House. As the counsel mentions in his statement, some members of the committee and the special counsel were in favor, as I mentioned before, of the original proposal. After much deliberation, all four of us could agree on a statement of alleged violations that despite, in quotes, ``Despite significant and substantial warnings, Mr. Gingrich did not seek the legal advice to ensure that his conduct conformed with the provisions of 501(c)(3),'' with the law. Why did he not? Why did he not? Either because Speaker Gingrich knew what the answer would be no, from an attorney, ``No, you cannot do this,'' or he was reckless in conforming with the law. The committee decided that regardless of the resolution of the 501(c)(3) tax question, Speaker Gingrich's conduct was improper, did not reflect credibly on the House, and was deserving of sanction, serious sanction, and Speaker Gingrich agreed. The next issue in my view is the most serious, that of not dealing honestly with the Committee on Standards of Official Conduct. It is interesting to me that Speaker Gingrich has repeatedly stated that ethics are important to him. Why, then, did he say that he was too busy to respond to the committee accurately? Again, either he was trying to get complaints dismissed and an accurate answer would not achieve that end, or that ethics were not important enough for him to take the necessary time. As our colleague, Mr. Cardin, has pointed out, Mr. Gingrich gave one answer in the earlier letter in order to respond to a complaint regarding use of official resources for his course, so he said GOPAC did it. Then when we asked the question if GOPAC and 501(c)(3) cannot be that cozy, then he said GOPAC did not do it; and then in the third communication to the committee, he stood by his previous letters. The gentleman from New Mexico [Mr. Schiff] prefers to call it a comedy of errors. I think it is violating our trust that we have among Members. Every day that we speak to each other in this House, we refer to each other as the gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland. We trust each other that we will deal truthfully with each other. Unfortunately, in terms of Speaker Gingrich's dealings with the committee on a number of occasions, and in his violation of the agreement under which we would go forward in bringing this issue to a conclusion, Mr. Gingrich's statements lead me to one conclusion: that Mr. Gingrich, in his dealings with the committee, is not to be believed. I conclude also that Mr. Gingrich gave these different answers not because it was a comedy of errors, but because he thought he would get away with it. I was particularly concerned about the ``too busy'' defense. We cannot say that ethics is important to us and then say we are too busy to answer the central question asked by the Committee on Standards of Official Conduct. Maintaining a high ethical standard is a decision, and it requires making it a priority. It is not just something we do when we are not too busy. We expect the Speaker of the House to be busy. We also expect the Speaker of the House to be ethical. Speaker Gingrich himself has stated that the Speaker must be held to a higher standard. I do not put any additional burden on the Speaker. I think all Members of Congress should be held to a higher ethical standard. When new Members arrive in Congress, one of the first documents they receive is the House Ethics Manual. And one of the first responsibilities impressed upon all of us is to uphold a high ethical standard. Clearly, Speaker Gingrich did not live up to his own professed ethical standards of the House, and, indeed, to the ethical standards in this book. I urge my colleagues to read this report. I think when you do, you will see [[Page H177]] that it gives lie to the mis characterizations of our Republican colleagues that the violations were nothing, or that they were like trespassing or double parking. Either our colleagues were ill-informed, and that is what I choose to believe, or they have a cavalier regard for the tragedy of the Speaker admitting bringing discredit to the House of Representatives which he wants to lead. Now we come to the penalty. As you know, we have a financial penalty because we believe that the inaccurate statements that the Speaker said to us prolonged the process. There are other reasons why there is a financial penalty, but that was one of them. And the subcommittee concluded, and I quote, ``that because these inaccurate statements were provided to the committee, this matter was not resolved as expeditiously as it could have been. This caused a controversy over the matter to arise and last for a substantial period of time, it disrupted the operations of the House, and it cost the House a substantial amount of money in order to determine the facts.'' So I urge our colleagues, in light of all of that, to support the bipartisan recommendation of the committee. The $300,000 penalty I believe speaks eloquently to the American people, who may not know the weight of one of our sanctions or another, but they understand $300,000. And I hope that this money will not come from the Speaker's political campaign funds, because I think that will increase the cynicism of the American people about what goes on here in Washington. Whether the Speaker remains Speaker is up to the Republicans. He is technically eligible. I hope you will make a judgment as to whether he is ethically fit. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida [Mr. Goss), the chairman of the subcommittee, and I want to recognize the outstanding job that he did chairing that subcommittee, as I recognize the remarkable service of the members of that subcommittee. (Mr. GOSS asked and was given permission to revise and extend his remarks.) Mr. GOSS. Mr. Speaker, I thank the gentlewoman from Connecticut, the distinguished chair of our committee, for yielding me this time. She deserves our sincere gratitude for all she has endured, for her persistence, for her determination to bring this to a successful conclusion, and here we are today. It was certainly an unenviable and, I know, thankless task. Today we have a conclusion. Today the House takes the final step in what has been a most difficult process, I think we all would agree. It is not just for those intimately involved in the day-to-day twists and turns in this tortuous case, but also for the entire House. On Friday the full Committee on Standards of Official Conduct approved a recommendation which is today before this House, for an official reprimand and a $300,000 cost assessment to Mr. Gingrich as sanction for his violation of House rules and as partial reimbursement for the costs of the inquiry that ensued. This is unquestionably a serious sanction, but one that is also fair and appropriate, in my view, as evidenced by the fact that indeed Mr. Gingrich himself has agreed to it. The Committee on Standards of Official Conduct, functioning independently of leadership on both sides of the aisle, is supposed to find the truth through an investigative process. It is not designed to protect errant Members, nor is it designed to permit partisan zealots to destroy Members or to score political points. In this case, the committee's members were subject to frequent unfair and inaccurate partisan political attack. That is a matter of fact. Outsiders attempted to influence our activities, our deliberations, our schedule and our conclusions. That is truly a shame. It has caused harm, not just to the Members involved, but it has also brought discredit to this institution, in my view. Friday, I urged the leadership on both sides of the aisle to tone down the rhetoric, cut the nonsense, and get back to work in repairing the damage that has come to this House. I repeat that exhortation today. With regard to the matter at hand, I am very satisfied with the work done by our investigative subcommittee, whose recommendation was adopted by the full committee and is the recommendation all Members will consider today. The four of us, working with the extraordinarily talented special counsel, Jim Cole, functioned in a spirit of bipartisan cooperation that did actually grow as we went along in the case. I say we started with different perspectives, but we started with open minds, and I am grateful for the very fine service, the unbelievable commitment of time of the members, their cooperation. I take my hat off to the gentleman from Maryland [Mr. Cardin], the gentleman from New Mexico [Mr. Schiff], and the gentlewoman from California [Ms. Pelosi], all of whom in my view bring great credit to this institution. Contrary to what has been reported, the statement of alleged violations that our subcommittee developed and passed and which forms the basis for the sanctioned recommendation did not, I repeat not, find that Mr. Gingrich violated or did not violate tax law in his relationship with 501(c)(3) tax exempt organizations. And contrary to media reports, that statement of alleged violation of December 21st also did not charge Mr. Gingrich with intentionally deceiving our committee with his correspondence in this case. Nonetheless, I found it extraordinarily imprudent of Mr. Gingrich not to seek and follow a less aggressive course of action in tax areas he knew to be sensitive and controversial. And even more troubling, I found the fact that the committee was given inaccurate, unreliable, and incomplete information to be a very serious failure on his part. {time} 1300 Now, it is certainly true that we had more than enough facts and extenuating circumstances to consider. We all know a Member of Congress wears many hats, for our official lives, our campaign lives, our private lives, our business lives or whatever, and knowledge of how careful we must be in wearing those hats is fundamental to our job. We all have an extra obligation to be sure our activities are appropriate, no matter which hat we are wearing. That is an obligation that each of us signs up for when we run to serve in this institution. That is why the serious sanction we recommend is appropriate, in my view. The gentleman from Georgia [Mr. Gingrich] has recognized his lapses and the problems they have caused for this House. He has apologized, forthrightly and sincerely. He has also accepted the unique sanction we proposed, one that includes a clear signal to all Members about the importance of providing accurate and grounded information to the Select Committee on Ethics, whether in response to a complaint or in filing a complaint. I must point out to Members that our mission in the preliminary investigation was to find and examine the dark clouds. That is what investigations do. Mr. Cole is very good at that. He is a brilliant prosecutor. In his report he presented well those dark clouds. He did not, however, present all of the other clouds we looked at that turned out to be not quite so dark. So I found that his report would be well supplemented by reading the report of the Speaker's attorneys for balance, as well. I refer colleagues and interested parties to both reports to get the full picture. In the end, I agreed with my subcommittee colleagues that Mr. Gingrich's absence of diligence subjects him legitimately to charges of conduct reckless enough to constitute a violation of House rules. I sincerely hope with today's voting we can put this matter to rest. I urge this House to adopt the recommendation of the Select Committee on Ethics and remember, the penalty is aimed at findings in response to the specific work of our subcommittee, no matter what feelings any particular Member may personally have about Mr. Gingrich. Some have said this is a sad day. Indeed it is, whenever we have this type of a situation. I will also say it is a day of victory. We have proved to the American people that no matter how rough the process is, we can police ourselves. We do know right from wrong in this institution. We can take the necessary steps. [[Page H178]] Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania [Mr. Borski], a very valuable member of the Select Committee on Ethics, who has done yeoman's service for the House and for the Congress on that committee. (Mr. BORSKI asked and was given permission to revise and extend his remarks.) Mr. BORSKI. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I want to start by commending the members of the investigative subcommittee, the gentleman from Maryland, Mr. Ben Cardin, the gentlewoman from California, Ms. Nancy Pelosi, the chairman, the gentleman from Florida, Mr. Porter Goss, and, of course, the gentleman from New Mexico, Mr. Schiff, for the extraordinary job they have performed for this institution. They are all people of enormously high integrity, and they have done this committee and this House very proud. I also want to commend the special counsel, Mr. Cole, who under the most difficult and trying of circumstances came through with a report that, again, I would urge all Members of the House to read; but again, under the most difficult and trying of circumstances, he performed an heroic deed for this House. Mr. Speaker, let me state the obvious. No Member seeks or enjoys a position on the Ethics Committee, but the proper functioning of that committee is essential to the integrity of the House. It is a matter of personal and institutional honor that each of us has agreed to serve. I remember distinctly when I received the phone call that any one of us never wants to get; a leader of my party, Speaker Tom Foley, asked me to serve on the Ethics Committee. I remember distinctly saying to Mr. Foley that I was reminded of the fellow who was tarred and feathered, put on a rail and run out of town, whose retort was that if it weren't for the honor, he would rather walk. I am on this committee, but it is as a reluctant member. On more than one occasion I have offered to step down when the removal of a member was necessary to maintain the political balance of the committee. But Mr. Speaker, I feel very strongly that it is our constitutional duty, and it was mine, to respond positively to Tom Foley's request. It was, again, certainly not a position that I wanted. I hope to concentrate my efforts and energies on the work of the Committee on Transportation and Infrastructure, probably the most bipartisan committee in this House of Representatives, and where that bipartisan atmosphere has enabled us to turn out very important pieces of legislation. It is always a grueling and distasteful task to investigate a fellow Member--all the more so in the case of the Speaker. Some have suggested that partisan attempts were made to derail the special counsel's efforts and render him less effective. I might say that I agree. The subcommittee released its statement of alleged violation on the Saturday before Christmas. The counsel's report was released on Friday afternoon, before inaugural weekend, with the vote firmly scheduled for this afternoon. Despite a prior agreement which allowed for a full week of public hearings, we were left with only a single afternoon's session. Mr. Cole, along with members of the full committee and subcommittee were troubled by the time line insisted upon by Republican leadership. The special counsel insisted with consistency that he would be hard pressed to complete a report detailing the 2-year investigation before February 4. Yet, Mr. Cole was denied the time he deemed necessary. Despite these obstacles, however, the special counsel did release a report on Friday afternoon which included the subcommittee's recommended sanction of a reprimand and fine. In this report, Mr. Cole, along with Ms. Roady, the subcommittee's tax expert, and two members of the committee conclude that Mr. Gingrich has violated the tax code in conjunction with 501(c)(3). However, the Committee agreed that the focus of the investigation should be on the conduct of the Member rather than the resolution of issues of tax law which would best be left to the IRS. What the report does say about the 501(c)(3), is the following: ``* * * the subcommittee was faced with a disturbing choice. Either Mr. Gingrich did not seek legal advice because he was aware that it would not have permitted him to use a 501(c)(3) organization for his projects, or he was reckless in not taking care that, as a Member of Congress, he made sure that his conduct conformed with the law in an area where he had ample warning that his intended course was fraught with legal peril. The subcommittee decided that regardless of the resolution of the 501(c)(3) tax question, Mr. Gingrich's conduct in this regard was improper, did not reflect creditably on the House and was deserving of sanction.'' With respect to the letters containing inaccurate information that Mr. Gingrich provided to the committee, the report goes on to say: ``The special counsel suggested that a good argument could be made, based on the record, that Mr. Gingrich did act intentionally, however it would be difficult to establish that with a high degree of certainty * * * In determining what the appropriate sanction should be in this matter, the subcommittee and the special counsel considered the seriousness of the conduct, the level of care exercised by Mr. Gingrich, the disruption caused to the House by the conduct, the cost to the House in having to pay for an extensive investigation, and the repetitive nature of the conduct.'' ``The subcommittee was faced with troubling choices in each of the areas covered by the statement of alleged violation. Either Mr. Gingrich's conduct in regard to the 501(c)(3) organizations and the letters he submitted to the committee was intentional or it was reckless. Neither choice reflects creditably on the House. * * *'' Under the rules of the committee, a reprimand is the appropriate sanction for a serious violation of House Rules and a censure is appropriate for a more serious violation of House rules. This is the extent to which guidelines are in place for Members to make a determination of sanction. According to the special counsel, it was the opinion of the Ethics Subcommittee, after two years of investigation and inquiry, that this matter fell somewhere in between. As such, both the subcommittee and the special counsel recommended that the appropriate sanction should be a reprimand and a payment reimbursing the House for some of the costs of the investigation in the amount of $300,000. Mr. Gingrich has agreed that this is the appropriate sanction, as has the full Ethics Committee. Mr. Speaker, I say to my colleagues, particularly my colleagues on the Democratic side of the aisle, this is not about who should be the Speaker of the House. Democrats have no say in who should be the Speaker of the House. That is up to the majority party. This is not about process. There were parts of this process that I find extremely disturbing, and parts that I think need to be dealt with further at an appropriate time. This is not that time. This is not about whether the existing tax code in question is arcane. I asked the special counsel, Mr. Cole, at our Friday afternoon public hearing whether the law was in fact arcane, and Mr. Cole responded in the strongest possible language that the law was not arcane. In fact, it is a headline issue that politics and tax-exempt organizations should not mix. Even Mr. Gingrich's tax attorney agreed with that statement. I also asked the special counsel to respond to the spin that we are all familiar with, and it goes like this: ``I saw the course, I watched the tape. There is nothing political about them.'' Mr. Cole's response was that the issue in question was not so much the content of the course, but, rather, the intent and the way in which it was distributed. The report states, ``Mr. Gingrich applied the ideas of the course to partisan political purposes.'' Mr. Speaker, this is not about determining the innocence or the guilt of Mr. Gingrich. He has already admitted that guilt, that he has brought discredit to this House. This is about the ability of the House of Representatives, under the most trying of circumstances, to judge one of its own Members, an extremely controversial Member, one who has led his party to the majority. It is our duty to determine the appropriate sanction to that Member. The subcommittee, aided by the special counsel, has conducted an investigation and made its recommendation to the full committee, which in turn has made that recommendation to the full House. Those are the processes we have adopted and those are the processes we have followed. We are giving every Member, independently, the opportunity to put aside partisan politics and follow the recommendation offered by the special counsel, the subcommittee, and the full committee upon completion of a 2-year inquiry. It is right and it is just. We were asked as Members of Congress to put aside our partisan beliefs and serve on this committee out of a sense of duty and honor. [[Page H179]] Now, we are asking you to honor our recommendations with dignity. I ask my colleagues to honor the work of the Ethics Committee and to vote yes for this very strict sanction. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. Smith]. (Mr. SMITH of Texas asked and was given permission to revise and extend his remarks.) Mr. SMITH of Texas. Mr. Speaker, I thank the chair of the Ethics Committee for yielding time to me. Let me say at the outset that you can clearly disagree and have great respect for your colleagues on the Ethics Committee, as I do, and still reach different conclusions, as I do. My conclusion is that the penalty that has been assessed by the Ethics Committee is way too severe whe

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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH
(House of Representatives - January 21, 1997)

Text of this article available as: TXT PDF [Pages H171-H235] IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH Mrs. JOHNSON of Connecticut. Mr. Speaker, pursuant to rule IX and by direction of the Select Committee on Ethics, I send to the desk a privileged resolution (H. Res. 31) in the matter of Representative Newt Gingrich, and ask for its immediate consideration. The Clerk read the resolution, as follows: House Resolution 31 In the Matter of Representative Newt Gingrich Resolved, That the House adopt the report of the Select Committee on Ethics dated January 17, 1997, In the Matter of Representative Newt Gingrich. The SPEAKER pro tempore. The resolution constitutes a question of privilege and may be called up at any time. Announcement by the Speaker Pro Tempore The SPEAKER pro tempore. Before we proceed, the Chair will have a statement about the decorum expected of the Members. The Chair has often reiterated that Members should refrain from references in debate to the conduct of other Members where such conduct is not the question actually pending before the House, either by way of a report from the Committee on Standards of Official Conduct or by way of another question of the privileges of the House. This principle is documented on pages 168 and 526 of the House Rules and Manual and reflects the consistent rulings of the Chair in this and in prior Congresses. It derives its force primarily from clause 1 of rule XIV which broadly prohibits engaging in personality in debate. It has been part of the rules of the House since 1789. On the other hand, the calling up of a resolution reported by the Committee on Standards of Official Conduct, or the offering of a resolution as a similar question of the privileges of the House, embarks the House on consideration of a proposition that admits references in debate to a Member's conduct. Disciplinary matters by their very nature involve personalities. Still, this exception to the general rule against engaging in personality--admitting references to a Member's conduct when that conduct is the very question under consideration by the House--is closely limited. This point was well stated on July 31, 1979, as follows: While a wide range of discussion is permitted during debate on a disciplinary resolution, clause 1 of rule XIV still prohibits the use of language which is personally abusive. This is recorded in the Deschler-Brown Procedure in the House of Representatives in chapter 12, at section 2.11. On the question now pending before the House, the resolution offered by the gentlewoman from Connecticut, Members should confine their remarks in debate to the merits of that precise [[Page H172]] question. Members should refrain from remarks that constitute personalities with respect to members of the Committee on Standards of Official Conduct or the Select Committee on Ethics or with respect to other sitting Members whose conduct is not the subject of the pending report. Finally, Members should exercise care to maintain an atmosphere of mutual respect. On January 27, 1909, the House adopted a report that stated the following: It is the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members. This is recorded in Cannon's Precedents in volume 8 at section 2497. The report adopted on that occasion responded to improper references in debate to the President, but it articulated a principle that occupants of the Chair over many Congresses have held equally applicable to Members' remarks toward each other. The Chair asks and expects the cooperation of all Members in maintaining a level of decorum that properly dignifies the proceedings of the House. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 1 hour. Mrs. JOHNSON of Connecticut. Mr. Speaker, I ask unanimous consent that debate on the resolution be extended for a half an hour. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Connecticut? There was no objection. The SPEAKER pro tempore. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 90 minutes. Mrs. JOHNSON of Connecticut. Mr. Speaker, for purposes of debate only, I yield 45 minutes to the gentleman from Maryland [Mr. Cardin], pending which I yield myself such time as I may consume. Mr. Speaker, I rise as chairman of the Select Committee on Ethics to lay before you the committee's bipartisan recommendation for final action on the matter of Representative Newt Gingrich. The committee recommends that Representative Gingrich be reprimanded and reimburse the House $300,000. The penalty is tough and unprecedented. It is also appropriate. No one is above the rules of the House of Representatives. This matter centered on two key questions: whether the Speaker violated Federal tax law and whether he intentionally filed incorrect information with the Ethics Committee. While the committee investigated these questions extensively, its findings were inconclusive. Rather, the committee found that Representative Gingrich brought discredit to the House by failing to get appropriate legal advice to ensure that his actions would be in compliance with tax law and to oversee the development of his letters to the committee to ensure they were accurate in every respect. Each Member of Congress, especially those in positions of leadership, shoulders the responsibility of avoiding even the appearance of impropriety. Representative Gingrich failed to exercise the discipline and caution of his office and so is subject to penalty today. As I have said, the penalty recommended by the committee is tough and unprecedented. In past cases of this nature, the House has reprimanded a Member only where the Member was found to have intentionally made false statements to the Ethics Committee. In this case, the committee recommended a reprimand of Representative Gingrich even though the statement of alleged violations did not assert that he intentionally misled the committee. Likewise in past cases where the committee imposed monetary sanctions on a Member, the committee found that the Member had been personally enriched by the misconduct. The committee made no such finding against Representative Gingrich, yet recommends that a cost reimbursement of $300,000 be paid to the House by him. The report before us contains several hundred pages of exhibits and a detailed analysis of the subcommittee's findings. The allegations and the key facts supporting them were laid out by the special counsel during a public hearing on January 17. The committee's recommendations before you today end 2 long years of work. Throughout this process we never lost sight of our key goals: full and complete disclosure of the facts and a bipartisan recommendation. We accomplished both. Even though it would have been easy for Republicans or Democrats to walk away from the process at many stages, we did not, because we believed in this institution and in the ethics process. The investigative subcommittee was ably chaired by Representative Porter Goss. Representatives Ben Cardin, Steve Schiff, and Nancy Pelosi, along with Mr. Goss deserve the gratitude of this House for the extraordinary workload they shouldered and for their dedication to pursuing each issue until they reached consensus. Together with Mr. James Cole, the special counsel, they laid the groundwork for the bipartisan conclusion of this matter. I want to thank Mr. Cardin, the current ranking member, as well, for working with me through difficult times to enable the bipartisan Ethics Committee process to succeed. In the last 2 years the committee was forced to conduct its work against the backdrop of harsh political warfare. It is the first time ever that members of the Ethics Committee have been the target of coordinated partisan assaults in their districts. Coordinated political pressure on members of the Ethics Committee by other Members is not only destructive of the ethics oversight process but is beneath the dignity of this great institution and those who serve here. {time} 1215 Despite the pressures, we bring you today a bipartisan recommendation resolving the most complex charge against Representative Newt Gingrich. I ask for both my colleagues' rejection of the partisanship and animosity that has so deeply permeated the work of the House and for their support of the committee's resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. announcement by the speaker pro tempore The SPEAKER pro tempore. The gentleman will suspend. The Chair notes a disturbance in the visitors' gallery in contravention of the laws and the rules of the House. The Doorkeepers and police, the Chair believes, have already acted, but shall act to remove from the gallery those persons participating in a disturbance. If there is an outburst from the visitors' gallery, the Chair will make this statement but will insist on order. The Chair recognizes the gentleman from Maryland [Mr. Cardin]. Mr. CARDIN. Mr. Speaker, as I have said, this is a sad moment for the House of Representatives. One of our Members has admitted to a serious violation of the House rules. This process and this admission affects not only that Member but each Member who serves in this body. While I believe that is true of any ethics proceeding, it is particularly true and particularly troublesome in this case because the offending Member is the Speaker of the House, the third ranking official in our Government. We have received the report and recommendation from the special counsel. Mr. Gingrich has agreed with the judgment of the special counsel. In addition to the report, the recommendation of sanctions represents the bipartisan work produced by our investigative subcommittee. The report in the recommendation of sanctions has been overwhelmingly approved by the full Committee on Standards of Official Conduct and deserves the support of this House. Let me begin by saying how proud I am of the work of the investigative subcommittee. In my judgment, all four members of the subcommittee maintained their commitment to a process that was fair to the respondent as well as the House and its rules. I want to commend and compliment the work of our chairman, the gentleman from Florida [Mr. Goss], for the extraordinary work that he did as well as the work of the gentleman from New Mexico [Mr. Schiff] and the gentlewoman from California [Ms. Pelosi] and the work of the subcommittee. I also want to recognize the extraordinary service performed by Jim Cole, our special counsel; Kevin Wolf, his assistant; and Virginia Johnson from the [[Page H173]] Committee on Standards of Official Conduct. Before commenting on the substance of the resolution before us, I feel obligated to point out the severe problems that have plagued the process. The 1-year delay in 1995 in enlisting the services of the special counsel was wrong. We have some evidence that this delay may have been part of the strategy by allies of Mr. Gingrich. In sharp contrast to the good faith, bipartisan cooperation which governed the subcommittee's work, the orderly process collapsed on December 21, 1996, after the matter was forwarded to the full committee. Ignoring the advice of special counsel and the subcommittee, the Republican leadership in the House imposed an unrealistic deadline for the completion of our work to coincide with the Presidential inauguration. The schedule agreed upon by the full Committee on Standards of Official Conduct for full public hearings on the subcommittee findings was unilaterally and improperly canceled. These partisan actions were aimed at shielding Mr. Gingrich from a full airing of the charges to which he has admitted guilt. During the past 5 days the gentlewoman from Connecticut [Mrs. Johnson] and I have worked closely together to use these days as effectively as possible to achieve two objectives: First, in the face of an unrealistic time limit, to get the broadest possible public release of the information contained in the subcommittee's report; and second, to arrive at a fair, bipartisan recommendation on sanctions. We have achieved both objectives, and for that I would like to express my appreciation to the chairwoman. The report details the reason why the committee has found that Mr. Gingrich has committed a serious violation of the House ethics rules. I urge each of my colleagues to read the report and the accompanying exhibits. I will now briefly review the findings of the special counsel's report. First, we must disregard the notion that this case involves a college professor engaged in a normal academic classroom activity. The respondent in this case is not Professor Gingrich, but Representative Gingrich, a Member of the House, minority whip and then Speaker of the House, who had a vision to launch a political movement to change the country, in his words, from a welfare state to an opportunity society. Second, over a 5-year period Mr. Gingrich improperly commingled political activities with tax exempt organizations. When GOPAC ran short of funds, Mr. Gingrich sought contributions from several tax exempt entities in order to continue his partisan political crusade. Third, there is ample evidence that he did so in violation of tax laws. Celia Roady, the tax expert retained by the committee, has concluded that the tax laws were violated, and it is not even a close call. Our special counsel agrees with that judgment. In all, almost $1.5 million was spent by these tax exempt organizations, costing the U.S. Treasury hundreds of thousands of dollars in lost tax revenues that should have been paid. Fourth, one need not reach a conclusion on the tax issues to find that Mr. Gingrich has violated our ethical standards. From his involvement in the American Campaign Academy case, Mr. Gingrich knew that pursuing these activities posed a risk of potential tax law violations. The ACA case established limits on political activities of tax exempt organizations. It is important to understand that this case involved similar facts and some of the same parties as the matter investigated by the subcommittee. In fact, in response to a question from the special counsel, Mr. Gingrich stated, and I quote: ``I lived through that case. I mean I was very well aware of what the ACA case did and what the ruling was.'' All experts agreed that he should have sought tax advice before using tax exempt organizations to pursue his political agenda. In the words of our special counsel Mr. Gingrich's actions suggest that ``either Mr. Gingrich did not seek legal advice because he is aware that it would not have permitted him to use a 501(c)(3) organization for his projects,'' or he was ``reckless in an area that was fraught with legal peril.'' Finally, the House must make a judgment on the question of whether Mr. Gingrich deliberately misled the committee. Mr. Gingrich submitted two letters to the committee that he now admits contained information about GOPAC that was inaccurate. The facts surrounding these inaccuracies were well known to Mr. Gingrich. Mr. Gingrich had read the letters before submitting them to the committee. When the investigative subcommittee specifically called the contradiction in the letters to Mr. Gingrich's attention, he once again defended them as accurate even though they were clearly wrong. The misleading letters were sent with the express intent of persuading the Committee on Standards of Official Conduct to dismiss the pending charges. They had the effect of misleading the committee. It stretches credibility to conclude that the repeated misstatements were innocent mistakes. The linchpin of these findings is stated clearly in the report of special counsel: ``Of all the people involved in drafting, reviewing, or submitting the letters, the only person who had firsthand knowledge of the facts contained within them with respect to the Renewing American Civilization course was Mr. Gingrich.'' The special counsel concludes: ``Either Mr. Gingrich intentionally made misrepresentations to the committee or he was again reckless in the way he provided information to the committee concerning a very important matter.'' Mr. Gingrich's defense is that he has always been very sensitive to ethics issues and he was embarrassed by the obvious inaccurate letters. He said he never intended to mislead the committee. But Mr. Gingrich's actions with respect to the understanding reached with the Committee on Standards of Official Conduct belies his statement. Mr. Gingrich, through his attorneys, had entered into an agreement with the committee. That agreement provided ``Mr. Gingrich agree that no public comment should be made about this matter while it is still pending. This includes having surrogates sent out to comment on the matter and attempt to mischaracterize it.'' I am sure that Members of this House are well aware of public comment since the release of our findings on December 21. As the special counsel States, ``In the opinion of the subcommittee Members and the special counsel, a number of press accounts indicated that Mr. Gingrich had violated that agreement,'' the finding of the bipartisan committee and our special counsel. Mr. Gingrich's violation of the no comment agreement raises serious questions about the extent to which he has deliberately sought to mislead the committee in other instances. Beyond the events of December 21, 1996, Republican operatives close to Mr. Gingrich conducted an ongoing campaign to disrupt the committee's work. It is relevant for this House to consider these circumstances in determining the degree of Mr. Gingrich's culpability in providing the Committee on Standards of Official Conduct information that was not accurate, reliable, and complete. It is up to the Members of this House to determine the appropriate sanction for the violations committed by Mr. Gingrich. This is not a vote on whether Mr. Gingrich should remain Speaker of the House. Members need time to become familiar with the factual record presented in the special counsel's report and to consider the seriousness of these violations that have just come to light during the past 4 days. In the days and weeks to come Mr. Gingrich and each Member of this House should consider how these charges bear on the question of the speakership. The resolution before us, the House, today is a sanction for Representative Gingrich for the ethics violations that he has committed. According to the House rules a reprimand is appropriate for serious violations of ethical standards. Sadly, Mr. Gingrich's conduct requires us to confirm that this case involves infractions of at least that level of seriousness. He has provided inaccurate and misleading information to the Committee on Standards of Official Conduct and there is significant evidence that he intended to do so. The recent history of congressional ethics sanctions indicate the House has imposed the sanction of reprimand when a Member has been found knowingly to have given false statements. But the earlier cases did not involve [[Page H174]] giving false statements to the Committee on Standards of Official Conduct itself in response to an inquiry from the Committee on Standards of Official Conduct, and Mr. Gingrich's case involves more than just giving false information to the committee. Mr. Gingrich has also admitted to directing a political empire that made extensive use of tax exempt entities for political fundraising purposes. As a result of all these actions, the reputation of the House of Representatives has been damaged and tax dollars have been lost. But there is still more. This is not the first time Mr. Gingrich has had ethical problems that drew critical action by the Committee on Standards of Official Conduct. On other occasions he has been sighted by this committee for violating House rules. The American public has not forgotten the lucrative book advance contract that the incoming Speaker of the House was forced to renounce under public pressure. Our committee concluded in regards to that book deal: ``At a minimum this creates the impression of exploiting one's office for personal gain. Such perception is especially troubling when it pertains to the Office of the Speaker of the House, a constitutional office requiring the highest standards of ethical behavior.'' Because of all those factors, these violations require a penalty more serious than a reprimand. Considering all these matters, I urge this House to adopt the resolution before us. The resolution incorporates the recommendation of the special counsel, the investigative subcommittee, the full Committee on Standards of Official, and Mr. Gingrich. The sanction we recommend is somewhere between a reprimand and a censure. It provides a reprimand plus a required $300,000 contribution by Mr. Gingrich to the cost of these proceedings. In my view this payment should come from his personal resources because it is a personal responsibility. Mr. Speaker, with today's vote I will have completed my service on the Committee on Standards of Official Conduct. Over the past 6 years and 1 month I have participated in many ethics matters. Among the issues that we had before the committee during my tenure has been not only this matter but the House bank and post office matters, both of which exposed many Members of this House, including its leadership, to embarrassment either for misdeeds or for mismanagement. I must say, however, that the matter before us today has brought a threat to the Committee on Standards of Official Conduct that far exceeded anything I have seen. The committee was subject to repeated attempts to obstruct its work and improperly interfere with its investigation. As I leave the Committee on Standards of Official Conduct, I hope that the incoming Members will find the process has survived and will continue to serve this House and the people of our Nation. Mr. Speaker, I reserve the balance of my time. {time} 1230 Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico [Mr. Schiff], a distinguished member of the subcommittee. Mr. SCHIFF. Mr. Speaker, I first want to join in the compliments to the other committee members and to our staffs and special counsel because, even though we had many disagreements along the way, and obviously still have some disagreements, I think we made the best possible effort to get us here today. I agree with the gentleman from Maryland [Mr. Cardin] this is a sad day. It is a sad day when any Member is here because of a recommendation of the Committee on Standards of Official Conduct. Last time I was here it was because a Democratic colleague was here on our recommendations. I was not happier then because it was a Democrat and not a Republican then. I think it is a sad day when it is a Member of the House. Nevertheless, I think the House can be proud of the fact there is accountability for its Members. I wish such accountability could be found from every area of our government. Second, I am sorry that in the rendition of facts I just heard, there were certain partisan conclusions that eliminated other conclusions which I guess could be stated from the other side. For example, it was said that there was an attempt made by our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson] who got us here, when many people expected along the way we could never get here; but through her leadership we are here today. There was the accusation that our chairwoman deliberately tried to scuttle the information getting to the Members in order to mitigate any effect on Congressman Gingrich. Quite the contrary. Our chairwoman and the rest of us had an agreed to up to 5 days of public hearings. Those were changed only when our Democratic colleagues on the Committee on Standards of Official Conduct held a press conference in which they said the most important product we could produce would be a written report that Members could consider before they vote. That left our Chair, in my judgment, no alternative but to change directions and to postpone the public hearing, which we ultimately did have anyway, in favor of trying to produce the written report by this date which we have now accomplished. There has been no mention of the fact that Members on the Republican side particularly were subject to enormous political attack in their districts. If I were still a district attorney, a career I had before I got to Congress, I would have certain leaders arrested for attempted jury tampering, because I think that is what they were doing. They were trying to use political pressure to get a result in what is essentially a judicial type of deliberative body. That was their intent. That was one of the most unethical things I have seen since becoming a member of the Committee on Standards of Official Conduct. What I want to emphasize now is why we are here today. I want to point out that the statement made, that there have been many new facts revealed in the last several days, in my judgment is not correct. We are here because of a statement of alleged violation found by the ethics subcommittee and released publicly on December 21, 1996, to which the Speaker acknowledged. And those violations have not changed. What has changed is the reporting of those violations in the news media over the last several days. What I have seen in the news media in various forms is some significant misstatements of what the violations are. But I have to add that I do not believe that that was in this case the fault of the news media. It is their job to be critical of us, and it is our responsibility to respond if we think it is appropriate. But I want to make it very clear what I think happened was an unfortunate matter of timing, that on Friday of last week, our hearing did not begin and our written report was not available until 3 o'clock on Friday afternoon. Some reporters have told me there were not enough copies to go around. So they are trying to form deadlines for their programs or for their newspapers with a report that is over 200 pages long. I think it is entirely understandable that some errors were made at first. Nevertheless, I think some errors were made. They were made because Mr. Cole's report attempted to be a soup-to-nuts, beginning to end explanation of what we did in the ethics subcommittee to get to where we are today. In going through step by step, he quite properly, in my judgment, said we had this choice to make and we had this fact and we handled it as follows, and so forth. But what I have seen as reported as a final conclusion, certain excerpts from that report were intermediary at best. The final conclusion of the subcommittee did not change. That final conclusion is, first, that Mr. Gingrich should have sought competent legal, professional tax advice before he began his procedures that involved the use of a tax-exempt foundation, which under the law is called a 501(c)(3) organization. Second, that materials were sent to the Committee on Standards of Official Conduct in response to questions from the Committee on Standards of Official Conduct that the Speaker should have known were inaccurate. That is the final finding, if you will, of the subcommittee. The report goes through all of the events, and I heard the gentleman from [[Page H175]] Maryland [Mr. Cardin] make reference to a number of the events. But the findings did not change. All of the events would include things like we on the subcommittee interviewed everybody we could find who had anything to do with the preparation of those two letters that were inaccurate. What we found, in my judgment, if it were not so serious, and I recognize how serious it is, it would really be called a comedy of errors. What happened was the letters were prepared in Mr. Gingrich's law firm that sent the letters first to a staff member in Mr. Gingrich's office. The law firm thought that the staff member would correct any factual misstatements. The staff member thought the law firm had already checked out the facts. So nobody checked out the facts to see if they were accurate. But the most important thing is that Mr. Gingrich was never involved in the preparation of those letters at any point until the very end where he acknowledges he signed them, he should have read more carefully, and he is responsible for that before this House of Representatives. I would point out that in a letter of October 1996 that he prepared himself with his staff, he gave us entirely accurate information about the matters that are under consideration here. I think it is pretty obvious you do not give accurate information in October and then you can deliberately prepare information the following September and March that nobody would know the difference of. Based upon the allegation, the violations we found, the Committee on Standards of Official Conduct on a 7-to-1 vote, full committee now, entire committee, recommended the following penalty: It recommended a reprimand and a cost assessment of $300,000. In some meetings earlier with members, I have heard some members say that that is unique and they are concerned about that penalty being unique because, although we have imposed cost assessments before, we have never done so in the past for the cost of the investigation. That is basically what we did. We set $300,000 as the estimated cost of that portion of the investigation that dealt with clearing up the misstatements that we received, which may have begun to be prepared in Mr. Gingrich's law firm, but for which he is responsible as a Member of the House. I want to tell all Members that they do not need, in my judgment, to be concerned about the precedent value, because I believe everyone concerned understood that this is a unique penalty because the Speaker of the House is a unique official in our institution. In fact, that is the reason we decided to, on the subcommittee's part, propose a unique penalty, and we got word, I have to say ``got word,'' because we never met with the Speaker to discuss the penalty. All of the negotiations were by our special counsel on our behalf and the Speaker's attorney, Mr. Evans, on his behalf. So we got reports on it. But the report we got back was that Speaker Newt Gingrich agrees that because he holds a unique position in the House he should receive a unique penalty, so there is no doubt even the Speaker of the House is not above the rules. I would hastily add, however, two things, and conclude with this. The first is that I think there is room for this to be made a standing procedure in certain cases. For example, I saw what in my judgment were a number of frivolous complaints filed with the Committee on Standards of Official Conduct which had no other purpose than to be leaked to the press and create bad publicity for whomever was the target of those complaints. It seems to me that the precedent we have established here should apply to those who are found by the committee to have filed frivolous complaints. Finally, on how the funds should be paid if the House adopts the recommended penalty, we were deliberately silent on that. My colleague, the gentleman from Maryland [Mr. Cardin], is most certainly entitled to his opinion, but the subcommittee and the committee made no determination. Insofar as I have studied the precedents on financial remuneration to the Government, we have never established as a matter of law how these funds can be paid. Mr. Gingrich, if he does get this as a final penalty, understands all the ramifications, I am certain he does not need me to explain them to him or, for that matter, any of my colleagues on the other side. But the fact is the committee was silent deliberately on how any such funds should be paid. It is my understanding there are at least some precedents for campaign funds, for example, being used to reimburse the Government, and certainly we all know that the Chief Executive of the United States has a legal defense fund in which he raises money. So I am just saying that whatever the options are to Newt Gingrich as a Member of the House, they have not been precluded legally by the committee, and in my judgment they should not be. With that, Mr. Speaker, I just want to again commend our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson], my fellow members of the committee, and say I believe we have come up with an appropriate penalty, which some think is too harsh, some think is too lenient. That tells me we are about where we ought to be. I hope the House will adopt it. announcement by the speaker pro tempore The SPEAKER pro tempore (Mr. Bereuter). The Chair will request that visitors in the gallery, in coming and going, refrain from any audible disruption of the proceedings. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume briefly to comment on some of the points raised by the gentleman from New Mexico [Mr. Schiff]. Mr. Speaker, the gentleman from New Mexico [Mr. Schiff] is correct, we are in agreement on the recommendation. We put different emphasis on some of the facts. Mr. Gingrich clearly, in my view, had ample opportunity to know about the statements in his letters. He did indicate he hired an attorney in order to draft the two letters. Let me just read, if I might, from the transcripts as to the exchange between Mr. Cole and Mr. Baran, Mr. Baran being Mr. Gingrich's attorney. Mr. Cole: ``Would you have made sure that he had read it and approved it, or just the fact he read it is all you would have been interested in,'' referring to Mr. Gingrich? Mr. Baran said, ``No, I would have wanted him to be comfortable with this on many levels.'' Mr. Cole: ``Were you satisfied he was comfortable with it prior to filing it with the committee?'' Mr. Baran: ``Yes.'' Let me also point out that after this, after we pointed out to Mr. Gingrich the inconsistency in the letters, Mr. Gingrich wrote another letter back to the committee. Clearly he had time to review the inconsistencies by that time. The October 31, 1996, letter, in that letter he still maintains his innocence on inconsistencies in the letter, even though the letters were clearly inaccurate, he knew they were inaccurate, and he had a chance to reread the letters and correct the record. Mr. Speaker, I yield 11\1/2\ minutes to the gentlewoman from California [Ms. Pelosi], my colleague on the Committee on Standards of Official Conduct, who was on the investigative subcommittee and who has made a great contribution to this process and has been an extraordinary member of our Committee on Standards of Official Conduct. Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time and for his leadership and guidance throughout this process. Clearly without his involvement, we would not be here today with a bipartisan recommendation for a sanction for the Speaker of the House. Mr. Speaker, as a member of the investigative subcommittee, I would like to take this opportunity to publicly thank the gentleman from Florida, Porter Goss, our Chair of the investigative subcommittee, again acknowledge the gentleman from Maryland, Mr. Cardin, as ranking member for his service there, as well as to say how much I learned from the gentleman from new Mexico, Mr. Schiff, in the course of our service there. Clearly, from the debate so far, you can see that we had many unresolved difficult issues to deal with, and under the leadership of the gentleman from Florida [Mr. Goss], we went through that. I want to also commend our special counsel, James Cole, for making us stick to the facts, the law, and the ethics rules as those elements that were [[Page H176]] the only matters relevant to our decisions, and many thanks to Kevin Wolf and Virginia Johnson for their assistance and professionalism. I heard my colleague, the gentleman from New Mexico [Mr. Schiff], say in his earlier days as a prosecutor he might entertain thoughts of bringing jury tampering charges. If he decides to do that, I hope that the gentleman will include in his package the dirty tricks memo that is now in the public record that is a written document about attempts to undermine the ethics process directly by the Republican House leadership. Let me say though we did produce a bipartisan product. I hope our work will serve as a foundation for a bipartisan solution to be agreed to today. Today, others have said it, is a sad day. I think it is a tragic day. Here in the House of Representatives we will sanction a sitting Speaker for the first time. It is an unwelcome task to pass judgment on any of our colleagues, but we have a responsibility to uphold ethical standards called for in the rules and expected by the American people. I associate myself with the gentleman from Maryland, Mr. Cardin's, remarks about the process. We should not have to choose to make the American people aware of either the hearing, a full hearing, or the report. But since we have a report, I urge everyone to read it. I think it is very instructive and gives lie to many of the mischaracterizations that have been made about the violations that the committee charged Mr. Gingrich with and those which he admitted to. {time} 1245 The last few weeks have been dreadful. But we have an opportunity to say today to the American people that when we come to Washington, we do not check our integrity at the beltway, and that power is not a license to ignore ethical standards. We also have an opportunity to tell the American people that sanity can reign in the Congress by demonstrating our ability to agree and disagree in a respectful way. The American people gave us the privilege to serve; they expect us not only to make the laws and to obey the laws, but also to live up to a high ethical standard. So today we are here to address the failure of Speaker Gingrich with regard to the laws governing charitable contributions and GOPAC, and his failure to respond accurately and reliably to the Committee on Standards of Official Conduct. I would like to just take a moment to refer to the book, because as I asked people to read it, I want to point out the statement of alleged violations which was originally set forth by the special counsel. This is on page 155. Based on the information described above, the special counsel proposed a statement of alleged violations to the subcommittee on December 12. The statement of alleged violations contained 3 counts: Mr. Gingrich's activities on behalf of ALOF in regard to AOW and ACTV, and the activities of others in that regard with his knowledge and approval, constituted a violation of ALOF's status under section 501(c)(3). Second, Mr. Gingrich's activities on behalf of Kennesaw State College Foundation, the Progress and Freedom Foundation, and Reinhardt College in regard to the Renewing American Civilization course, and other activities in that regard, with his knowledge and approval, constituted a violation of those organizations' status under 501(c)(3). And, third, Mr. Gingrich had provided information to the committee, directly or through counsel, that was material to matters under consideration by the committee, which Mr. Gingrich knew or should have known was inaccurate, incomplete, and unreliable. These were not the alleged violations that were passed out at the committee because we did not come to agreement on them, but they are the original allegations by the special counsel. I think everyone is well aware that we have charged the Speaker in our statement of alleged violations that he did not ensure that the law was complied to in his activities, and that he gave information to the committee that was not accurate. Think how much easier it would be if we could all use the 501(c)(3), not consult a lawyer, and build our political agenda around tax deductible considerations. The American people in their generosity give the opportunity to charitable institutions to do charitable work. That does not include subsidizing our political activity. At the grassroots level we have always had to comply with the law in relationship to political activity and 501(c)(3). If we have to do it at the grassroots level, so should the Speaker of the House. As the counsel mentions in his statement, some members of the committee and the special counsel were in favor, as I mentioned before, of the original proposal. After much deliberation, all four of us could agree on a statement of alleged violations that despite, in quotes, ``Despite significant and substantial warnings, Mr. Gingrich did not seek the legal advice to ensure that his conduct conformed with the provisions of 501(c)(3),'' with the law. Why did he not? Why did he not? Either because Speaker Gingrich knew what the answer would be no, from an attorney, ``No, you cannot do this,'' or he was reckless in conforming with the law. The committee decided that regardless of the resolution of the 501(c)(3) tax question, Speaker Gingrich's conduct was improper, did not reflect credibly on the House, and was deserving of sanction, serious sanction, and Speaker Gingrich agreed. The next issue in my view is the most serious, that of not dealing honestly with the Committee on Standards of Official Conduct. It is interesting to me that Speaker Gingrich has repeatedly stated that ethics are important to him. Why, then, did he say that he was too busy to respond to the committee accurately? Again, either he was trying to get complaints dismissed and an accurate answer would not achieve that end, or that ethics were not important enough for him to take the necessary time. As our colleague, Mr. Cardin, has pointed out, Mr. Gingrich gave one answer in the earlier letter in order to respond to a complaint regarding use of official resources for his course, so he said GOPAC did it. Then when we asked the question if GOPAC and 501(c)(3) cannot be that cozy, then he said GOPAC did not do it; and then in the third communication to the committee, he stood by his previous letters. The gentleman from New Mexico [Mr. Schiff] prefers to call it a comedy of errors. I think it is violating our trust that we have among Members. Every day that we speak to each other in this House, we refer to each other as the gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland. We trust each other that we will deal truthfully with each other. Unfortunately, in terms of Speaker Gingrich's dealings with the committee on a number of occasions, and in his violation of the agreement under which we would go forward in bringing this issue to a conclusion, Mr. Gingrich's statements lead me to one conclusion: that Mr. Gingrich, in his dealings with the committee, is not to be believed. I conclude also that Mr. Gingrich gave these different answers not because it was a comedy of errors, but because he thought he would get away with it. I was particularly concerned about the ``too busy'' defense. We cannot say that ethics is important to us and then say we are too busy to answer the central question asked by the Committee on Standards of Official Conduct. Maintaining a high ethical standard is a decision, and it requires making it a priority. It is not just something we do when we are not too busy. We expect the Speaker of the House to be busy. We also expect the Speaker of the House to be ethical. Speaker Gingrich himself has stated that the Speaker must be held to a higher standard. I do not put any additional burden on the Speaker. I think all Members of Congress should be held to a higher ethical standard. When new Members arrive in Congress, one of the first documents they receive is the House Ethics Manual. And one of the first responsibilities impressed upon all of us is to uphold a high ethical standard. Clearly, Speaker Gingrich did not live up to his own professed ethical standards of the House, and, indeed, to the ethical standards in this book. I urge my colleagues to read this report. I think when you do, you will see [[Page H177]] that it gives lie to the mis characterizations of our Republican colleagues that the violations were nothing, or that they were like trespassing or double parking. Either our colleagues were ill-informed, and that is what I choose to believe, or they have a cavalier regard for the tragedy of the Speaker admitting bringing discredit to the House of Representatives which he wants to lead. Now we come to the penalty. As you know, we have a financial penalty because we believe that the inaccurate statements that the Speaker said to us prolonged the process. There are other reasons why there is a financial penalty, but that was one of them. And the subcommittee concluded, and I quote, ``that because these inaccurate statements were provided to the committee, this matter was not resolved as expeditiously as it could have been. This caused a controversy over the matter to arise and last for a substantial period of time, it disrupted the operations of the House, and it cost the House a substantial amount of money in order to determine the facts.'' So I urge our colleagues, in light of all of that, to support the bipartisan recommendation of the committee. The $300,000 penalty I believe speaks eloquently to the American people, who may not know the weight of one of our sanctions or another, but they understand $300,000. And I hope that this money will not come from the Speaker's political campaign funds, because I think that will increase the cynicism of the American people about what goes on here in Washington. Whether the Speaker remains Speaker is up to the Republicans. He is technically eligible. I hope you will make a judgment as to whether he is ethically fit. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida [Mr. Goss), the chairman of the subcommittee, and I want to recognize the outstanding job that he did chairing that subcommittee, as I recognize the remarkable service of the members of that subcommittee. (Mr. GOSS asked and was given permission to revise and extend his remarks.) Mr. GOSS. Mr. Speaker, I thank the gentlewoman from Connecticut, the distinguished chair of our committee, for yielding me this time. She deserves our sincere gratitude for all she has endured, for her persistence, for her determination to bring this to a successful conclusion, and here we are today. It was certainly an unenviable and, I know, thankless task. Today we have a conclusion. Today the House takes the final step in what has been a most difficult process, I think we all would agree. It is not just for those intimately involved in the day-to-day twists and turns in this tortuous case, but also for the entire House. On Friday the full Committee on Standards of Official Conduct approved a recommendation which is today before this House, for an official reprimand and a $300,000 cost assessment to Mr. Gingrich as sanction for his violation of House rules and as partial reimbursement for the costs of the inquiry that ensued. This is unquestionably a serious sanction, but one that is also fair and appropriate, in my view, as evidenced by the fact that indeed Mr. Gingrich himself has agreed to it. The Committee on Standards of Official Conduct, functioning independently of leadership on both sides of the aisle, is supposed to find the truth through an investigative process. It is not designed to protect errant Members, nor is it designed to permit partisan zealots to destroy Members or to score political points. In this case, the committee's members were subject to frequent unfair and inaccurate partisan political attack. That is a matter of fact. Outsiders attempted to influence our activities, our deliberations, our schedule and our conclusions. That is truly a shame. It has caused harm, not just to the Members involved, but it has also brought discredit to this institution, in my view. Friday, I urged the leadership on both sides of the aisle to tone down the rhetoric, cut the nonsense, and get back to work in repairing the damage that has come to this House. I repeat that exhortation today. With regard to the matter at hand, I am very satisfied with the work done by our investigative subcommittee, whose recommendation was adopted by the full committee and is the recommendation all Members will consider today. The four of us, working with the extraordinarily talented special counsel, Jim Cole, functioned in a spirit of bipartisan cooperation that did actually grow as we went along in the case. I say we started with different perspectives, but we started with open minds, and I am grateful for the very fine service, the unbelievable commitment of time of the members, their cooperation. I take my hat off to the gentleman from Maryland [Mr. Cardin], the gentleman from New Mexico [Mr. Schiff], and the gentlewoman from California [Ms. Pelosi], all of whom in my view bring great credit to this institution. Contrary to what has been reported, the statement of alleged violations that our subcommittee developed and passed and which forms the basis for the sanctioned recommendation did not, I repeat not, find that Mr. Gingrich violated or did not violate tax law in his relationship with 501(c)(3) tax exempt organizations. And contrary to media reports, that statement of alleged violation of December 21st also did not charge Mr. Gingrich with intentionally deceiving our committee with his correspondence in this case. Nonetheless, I found it extraordinarily imprudent of Mr. Gingrich not to seek and follow a less aggressive course of action in tax areas he knew to be sensitive and controversial. And even more troubling, I found the fact that the committee was given inaccurate, unreliable, and incomplete information to be a very serious failure on his part. {time} 1300 Now, it is certainly true that we had more than enough facts and extenuating circumstances to consider. We all know a Member of Congress wears many hats, for our official lives, our campaign lives, our private lives, our business lives or whatever, and knowledge of how careful we must be in wearing those hats is fundamental to our job. We all have an extra obligation to be sure our activities are appropriate, no matter which hat we are wearing. That is an obligation that each of us signs up for when we run to serve in this institution. That is why the serious sanction we recommend is appropriate, in my view. The gentleman from Georgia [Mr. Gingrich] has recognized his lapses and the problems they have caused for this House. He has apologized, forthrightly and sincerely. He has also accepted the unique sanction we proposed, one that includes a clear signal to all Members about the importance of providing accurate and grounded information to the Select Committee on Ethics, whether in response to a complaint or in filing a complaint. I must point out to Members that our mission in the preliminary investigation was to find and examine the dark clouds. That is what investigations do. Mr. Cole is very good at that. He is a brilliant prosecutor. In his report he presented well those dark clouds. He did not, however, present all of the other clouds we looked at that turned out to be not quite so dark. So I found that his report would be well supplemented by reading the report of the Speaker's attorneys for balance, as well. I refer colleagues and interested parties to both reports to get the full picture. In the end, I agreed with my subcommittee colleagues that Mr. Gingrich's absence of diligence subjects him legitimately to charges of conduct reckless enough to constitute a violation of House rules. I sincerely hope with today's voting we can put this matter to rest. I urge this House to adopt the recommendation of the Select Committee on Ethics and remember, the penalty is aimed at findings in response to the specific work of our subcommittee, no matter what feelings any particular Member may personally have about Mr. Gingrich. Some have said this is a sad day. Indeed it is, whenever we have this type of a situation. I will also say it is a day of victory. We have proved to the American people that no matter how rough the process is, we can police ourselves. We do know right from wrong in this institution. We can take the necessary steps. [[Page H178]] Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania [Mr. Borski], a very valuable member of the Select Committee on Ethics, who has done yeoman's service for the House and for the Congress on that committee. (Mr. BORSKI asked and was given permission to revise and extend his remarks.) Mr. BORSKI. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I want to start by commending the members of the investigative subcommittee, the gentleman from Maryland, Mr. Ben Cardin, the gentlewoman from California, Ms. Nancy Pelosi, the chairman, the gentleman from Florida, Mr. Porter Goss, and, of course, the gentleman from New Mexico, Mr. Schiff, for the extraordinary job they have performed for this institution. They are all people of enormously high integrity, and they have done this committee and this House very proud. I also want to commend the special counsel, Mr. Cole, who under the most difficult and trying of circumstances came through with a report that, again, I would urge all Members of the House to read; but again, under the most difficult and trying of circumstances, he performed an heroic deed for this House. Mr. Speaker, let me state the obvious. No Member seeks or enjoys a position on the Ethics Committee, but the proper functioning of that committee is essential to the integrity of the House. It is a matter of personal and institutional honor that each of us has agreed to serve. I remember distinctly when I received the phone call that any one of us never wants to get; a leader of my party, Speaker Tom Foley, asked me to serve on the Ethics Committee. I remember distinctly saying to Mr. Foley that I was reminded of the fellow who was tarred and feathered, put on a rail and run out of town, whose retort was that if it weren't for the honor, he would rather walk. I am on this committee, but it is as a reluctant member. On more than one occasion I have offered to step down when the removal of a member was necessary to maintain the political balance of the committee. But Mr. Speaker, I feel very strongly that it is our constitutional duty, and it was mine, to respond positively to Tom Foley's request. It was, again, certainly not a position that I wanted. I hope to concentrate my efforts and energies on the work of the Committee on Transportation and Infrastructure, probably the most bipartisan committee in this House of Representatives, and where that bipartisan atmosphere has enabled us to turn out very important pieces of legislation. It is always a grueling and distasteful task to investigate a fellow Member--all the more so in the case of the Speaker. Some have suggested that partisan attempts were made to derail the special counsel's efforts and render him less effective. I might say that I agree. The subcommittee released its statement of alleged violation on the Saturday before Christmas. The counsel's report was released on Friday afternoon, before inaugural weekend, with the vote firmly scheduled for this afternoon. Despite a prior agreement which allowed for a full week of public hearings, we were left with only a single afternoon's session. Mr. Cole, along with members of the full committee and subcommittee were troubled by the time line insisted upon by Republican leadership. The special counsel insisted with consistency that he would be hard pressed to complete a report detailing the 2-year investigation before February 4. Yet, Mr. Cole was denied the time he deemed necessary. Despite these obstacles, however, the special counsel did release a report on Friday afternoon which included the subcommittee's recommended sanction of a reprimand and fine. In this report, Mr. Cole, along with Ms. Roady, the subcommittee's tax expert, and two members of the committee conclude that Mr. Gingrich has violated the tax code in conjunction with 501(c)(3). However, the Committee agreed that the focus of the investigation should be on the conduct of the Member rather than the resolution of issues of tax law which would best be left to the IRS. What the report does say about the 501(c)(3), is the following: ``* * * the subcommittee was faced with a disturbing choice. Either Mr. Gingrich did not seek legal advice because he was aware that it would not have permitted him to use a 501(c)(3) organization for his projects, or he was reckless in not taking care that, as a Member of Congress, he made sure that his conduct conformed with the law in an area where he had ample warning that his intended course was fraught with legal peril. The subcommittee decided that regardless of the resolution of the 501(c)(3) tax question, Mr. Gingrich's conduct in this regard was improper, did not reflect creditably on the House and was deserving of sanction.'' With respect to the letters containing inaccurate information that Mr. Gingrich provided to the committee, the report goes on to say: ``The special counsel suggested that a good argument could be made, based on the record, that Mr. Gingrich did act intentionally, however it would be difficult to establish that with a high degree of certainty * * * In determining what the appropriate sanction should be in this matter, the subcommittee and the special counsel considered the seriousness of the conduct, the level of care exercised by Mr. Gingrich, the disruption caused to the House by the conduct, the cost to the House in having to pay for an extensive investigation, and the repetitive nature of the conduct.'' ``The subcommittee was faced with troubling choices in each of the areas covered by the statement of alleged violation. Either Mr. Gingrich's conduct in regard to the 501(c)(3) organizations and the letters he submitted to the committee was intentional or it was reckless. Neither choice reflects creditably on the House. * * *'' Under the rules of the committee, a reprimand is the appropriate sanction for a serious violation of House Rules and a censure is appropriate for a more serious violation of House rules. This is the extent to which guidelines are in place for Members to make a determination of sanction. According to the special counsel, it was the opinion of the Ethics Subcommittee, after two years of investigation and inquiry, that this matter fell somewhere in between. As such, both the subcommittee and the special counsel recommended that the appropriate sanction should be a reprimand and a payment reimbursing the House for some of the costs of the investigation in the amount of $300,000. Mr. Gingrich has agreed that this is the appropriate sanction, as has the full Ethics Committee. Mr. Speaker, I say to my colleagues, particularly my colleagues on the Democratic side of the aisle, this is not about who should be the Speaker of the House. Democrats have no say in who should be the Speaker of the House. That is up to the majority party. This is not about process. There were parts of this process that I find extremely disturbing, and parts that I think need to be dealt with further at an appropriate time. This is not that time. This is not about whether the existing tax code in question is arcane. I asked the special counsel, Mr. Cole, at our Friday afternoon public hearing whether the law was in fact arcane, and Mr. Cole responded in the strongest possible language that the law was not arcane. In fact, it is a headline issue that politics and tax-exempt organizations should not mix. Even Mr. Gingrich's tax attorney agreed with that statement. I also asked the special counsel to respond to the spin that we are all familiar with, and it goes like this: ``I saw the course, I watched the tape. There is nothing political about them.'' Mr. Cole's response was that the issue in question was not so much the content of the course, but, rather, the intent and the way in which it was distributed. The report states, ``Mr. Gingrich applied the ideas of the course to partisan political purposes.'' Mr. Speaker, this is not about determining the innocence or the guilt of Mr. Gingrich. He has already admitted that guilt, that he has brought discredit to this House. This is about the ability of the House of Representatives, under the most trying of circumstances, to judge one of its own Members, an extremely controversial Member, one who has led his party to the majority. It is our duty to determine the appropriate sanction to that Member. The subcommittee, aided by the special counsel, has conducted an investigation and made its recommendation to the full committee, which in turn has made that recommendation to the full House. Those are the processes we have adopted and those are the processes we have followed. We are giving every Member, independently, the opportunity to put aside partisan politics and follow the recommendation offered by the special counsel, the subcommittee, and the full committee upon completion of a 2-year inquiry. It is right and it is just. We were asked as Members of Congress to put aside our partisan beliefs and serve on this committee out of a sense of duty and honor. [[Page H179]] Now, we are asking you to honor our recommendations with dignity. I ask my colleagues to honor the work of the Ethics Committee and to vote yes for this very strict sanction. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. Smith]. (Mr. SMITH of Texas asked and was given permission to revise and extend his remarks.) Mr. SMITH of Texas. Mr. Speaker, I thank the chair of the Ethics Committee for yielding time to me. Let me say at the outset that you can clearly disagree and have great respect for your colleagues on the Ethics Committee, as I do, and still reach different conclusions, as I do. My conclusion is that the penalty that has been assessed by the Ethics Committee is way too

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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH


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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH
(House of Representatives - January 21, 1997)

Text of this article available as: TXT PDF [Pages H171-H235] IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH Mrs. JOHNSON of Connecticut. Mr. Speaker, pursuant to rule IX and by direction of the Select Committee on Ethics, I send to the desk a privileged resolution (H. Res. 31) in the matter of Representative Newt Gingrich, and ask for its immediate consideration. The Clerk read the resolution, as follows: House Resolution 31 In the Matter of Representative Newt Gingrich Resolved, That the House adopt the report of the Select Committee on Ethics dated January 17, 1997, In the Matter of Representative Newt Gingrich. The SPEAKER pro tempore. The resolution constitutes a question of privilege and may be called up at any time. Announcement by the Speaker Pro Tempore The SPEAKER pro tempore. Before we proceed, the Chair will have a statement about the decorum expected of the Members. The Chair has often reiterated that Members should refrain from references in debate to the conduct of other Members where such conduct is not the question actually pending before the House, either by way of a report from the Committee on Standards of Official Conduct or by way of another question of the privileges of the House. This principle is documented on pages 168 and 526 of the House Rules and Manual and reflects the consistent rulings of the Chair in this and in prior Congresses. It derives its force primarily from clause 1 of rule XIV which broadly prohibits engaging in personality in debate. It has been part of the rules of the House since 1789. On the other hand, the calling up of a resolution reported by the Committee on Standards of Official Conduct, or the offering of a resolution as a similar question of the privileges of the House, embarks the House on consideration of a proposition that admits references in debate to a Member's conduct. Disciplinary matters by their very nature involve personalities. Still, this exception to the general rule against engaging in personality--admitting references to a Member's conduct when that conduct is the very question under consideration by the House--is closely limited. This point was well stated on July 31, 1979, as follows: While a wide range of discussion is permitted during debate on a disciplinary resolution, clause 1 of rule XIV still prohibits the use of language which is personally abusive. This is recorded in the Deschler-Brown Procedure in the House of Representatives in chapter 12, at section 2.11. On the question now pending before the House, the resolution offered by the gentlewoman from Connecticut, Members should confine their remarks in debate to the merits of that precise [[Page H172]] question. Members should refrain from remarks that constitute personalities with respect to members of the Committee on Standards of Official Conduct or the Select Committee on Ethics or with respect to other sitting Members whose conduct is not the subject of the pending report. Finally, Members should exercise care to maintain an atmosphere of mutual respect. On January 27, 1909, the House adopted a report that stated the following: It is the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members. This is recorded in Cannon's Precedents in volume 8 at section 2497. The report adopted on that occasion responded to improper references in debate to the President, but it articulated a principle that occupants of the Chair over many Congresses have held equally applicable to Members' remarks toward each other. The Chair asks and expects the cooperation of all Members in maintaining a level of decorum that properly dignifies the proceedings of the House. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 1 hour. Mrs. JOHNSON of Connecticut. Mr. Speaker, I ask unanimous consent that debate on the resolution be extended for a half an hour. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Connecticut? There was no objection. The SPEAKER pro tempore. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 90 minutes. Mrs. JOHNSON of Connecticut. Mr. Speaker, for purposes of debate only, I yield 45 minutes to the gentleman from Maryland [Mr. Cardin], pending which I yield myself such time as I may consume. Mr. Speaker, I rise as chairman of the Select Committee on Ethics to lay before you the committee's bipartisan recommendation for final action on the matter of Representative Newt Gingrich. The committee recommends that Representative Gingrich be reprimanded and reimburse the House $300,000. The penalty is tough and unprecedented. It is also appropriate. No one is above the rules of the House of Representatives. This matter centered on two key questions: whether the Speaker violated Federal tax law and whether he intentionally filed incorrect information with the Ethics Committee. While the committee investigated these questions extensively, its findings were inconclusive. Rather, the committee found that Representative Gingrich brought discredit to the House by failing to get appropriate legal advice to ensure that his actions would be in compliance with tax law and to oversee the development of his letters to the committee to ensure they were accurate in every respect. Each Member of Congress, especially those in positions of leadership, shoulders the responsibility of avoiding even the appearance of impropriety. Representative Gingrich failed to exercise the discipline and caution of his office and so is subject to penalty today. As I have said, the penalty recommended by the committee is tough and unprecedented. In past cases of this nature, the House has reprimanded a Member only where the Member was found to have intentionally made false statements to the Ethics Committee. In this case, the committee recommended a reprimand of Representative Gingrich even though the statement of alleged violations did not assert that he intentionally misled the committee. Likewise in past cases where the committee imposed monetary sanctions on a Member, the committee found that the Member had been personally enriched by the misconduct. The committee made no such finding against Representative Gingrich, yet recommends that a cost reimbursement of $300,000 be paid to the House by him. The report before us contains several hundred pages of exhibits and a detailed analysis of the subcommittee's findings. The allegations and the key facts supporting them were laid out by the special counsel during a public hearing on January 17. The committee's recommendations before you today end 2 long years of work. Throughout this process we never lost sight of our key goals: full and complete disclosure of the facts and a bipartisan recommendation. We accomplished both. Even though it would have been easy for Republicans or Democrats to walk away from the process at many stages, we did not, because we believed in this institution and in the ethics process. The investigative subcommittee was ably chaired by Representative Porter Goss. Representatives Ben Cardin, Steve Schiff, and Nancy Pelosi, along with Mr. Goss deserve the gratitude of this House for the extraordinary workload they shouldered and for their dedication to pursuing each issue until they reached consensus. Together with Mr. James Cole, the special counsel, they laid the groundwork for the bipartisan conclusion of this matter. I want to thank Mr. Cardin, the current ranking member, as well, for working with me through difficult times to enable the bipartisan Ethics Committee process to succeed. In the last 2 years the committee was forced to conduct its work against the backdrop of harsh political warfare. It is the first time ever that members of the Ethics Committee have been the target of coordinated partisan assaults in their districts. Coordinated political pressure on members of the Ethics Committee by other Members is not only destructive of the ethics oversight process but is beneath the dignity of this great institution and those who serve here. {time} 1215 Despite the pressures, we bring you today a bipartisan recommendation resolving the most complex charge against Representative Newt Gingrich. I ask for both my colleagues' rejection of the partisanship and animosity that has so deeply permeated the work of the House and for their support of the committee's resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. announcement by the speaker pro tempore The SPEAKER pro tempore. The gentleman will suspend. The Chair notes a disturbance in the visitors' gallery in contravention of the laws and the rules of the House. The Doorkeepers and police, the Chair believes, have already acted, but shall act to remove from the gallery those persons participating in a disturbance. If there is an outburst from the visitors' gallery, the Chair will make this statement but will insist on order. The Chair recognizes the gentleman from Maryland [Mr. Cardin]. Mr. CARDIN. Mr. Speaker, as I have said, this is a sad moment for the House of Representatives. One of our Members has admitted to a serious violation of the House rules. This process and this admission affects not only that Member but each Member who serves in this body. While I believe that is true of any ethics proceeding, it is particularly true and particularly troublesome in this case because the offending Member is the Speaker of the House, the third ranking official in our Government. We have received the report and recommendation from the special counsel. Mr. Gingrich has agreed with the judgment of the special counsel. In addition to the report, the recommendation of sanctions represents the bipartisan work produced by our investigative subcommittee. The report in the recommendation of sanctions has been overwhelmingly approved by the full Committee on Standards of Official Conduct and deserves the support of this House. Let me begin by saying how proud I am of the work of the investigative subcommittee. In my judgment, all four members of the subcommittee maintained their commitment to a process that was fair to the respondent as well as the House and its rules. I want to commend and compliment the work of our chairman, the gentleman from Florida [Mr. Goss], for the extraordinary work that he did as well as the work of the gentleman from New Mexico [Mr. Schiff] and the gentlewoman from California [Ms. Pelosi] and the work of the subcommittee. I also want to recognize the extraordinary service performed by Jim Cole, our special counsel; Kevin Wolf, his assistant; and Virginia Johnson from the [[Page H173]] Committee on Standards of Official Conduct. Before commenting on the substance of the resolution before us, I feel obligated to point out the severe problems that have plagued the process. The 1-year delay in 1995 in enlisting the services of the special counsel was wrong. We have some evidence that this delay may have been part of the strategy by allies of Mr. Gingrich. In sharp contrast to the good faith, bipartisan cooperation which governed the subcommittee's work, the orderly process collapsed on December 21, 1996, after the matter was forwarded to the full committee. Ignoring the advice of special counsel and the subcommittee, the Republican leadership in the House imposed an unrealistic deadline for the completion of our work to coincide with the Presidential inauguration. The schedule agreed upon by the full Committee on Standards of Official Conduct for full public hearings on the subcommittee findings was unilaterally and improperly canceled. These partisan actions were aimed at shielding Mr. Gingrich from a full airing of the charges to which he has admitted guilt. During the past 5 days the gentlewoman from Connecticut [Mrs. Johnson] and I have worked closely together to use these days as effectively as possible to achieve two objectives: First, in the face of an unrealistic time limit, to get the broadest possible public release of the information contained in the subcommittee's report; and second, to arrive at a fair, bipartisan recommendation on sanctions. We have achieved both objectives, and for that I would like to express my appreciation to the chairwoman. The report details the reason why the committee has found that Mr. Gingrich has committed a serious violation of the House ethics rules. I urge each of my colleagues to read the report and the accompanying exhibits. I will now briefly review the findings of the special counsel's report. First, we must disregard the notion that this case involves a college professor engaged in a normal academic classroom activity. The respondent in this case is not Professor Gingrich, but Representative Gingrich, a Member of the House, minority whip and then Speaker of the House, who had a vision to launch a political movement to change the country, in his words, from a welfare state to an opportunity society. Second, over a 5-year period Mr. Gingrich improperly commingled political activities with tax exempt organizations. When GOPAC ran short of funds, Mr. Gingrich sought contributions from several tax exempt entities in order to continue his partisan political crusade. Third, there is ample evidence that he did so in violation of tax laws. Celia Roady, the tax expert retained by the committee, has concluded that the tax laws were violated, and it is not even a close call. Our special counsel agrees with that judgment. In all, almost $1.5 million was spent by these tax exempt organizations, costing the U.S. Treasury hundreds of thousands of dollars in lost tax revenues that should have been paid. Fourth, one need not reach a conclusion on the tax issues to find that Mr. Gingrich has violated our ethical standards. From his involvement in the American Campaign Academy case, Mr. Gingrich knew that pursuing these activities posed a risk of potential tax law violations. The ACA case established limits on political activities of tax exempt organizations. It is important to understand that this case involved similar facts and some of the same parties as the matter investigated by the subcommittee. In fact, in response to a question from the special counsel, Mr. Gingrich stated, and I quote: ``I lived through that case. I mean I was very well aware of what the ACA case did and what the ruling was.'' All experts agreed that he should have sought tax advice before using tax exempt organizations to pursue his political agenda. In the words of our special counsel Mr. Gingrich's actions suggest that ``either Mr. Gingrich did not seek legal advice because he is aware that it would not have permitted him to use a 501(c)(3) organization for his projects,'' or he was ``reckless in an area that was fraught with legal peril.'' Finally, the House must make a judgment on the question of whether Mr. Gingrich deliberately misled the committee. Mr. Gingrich submitted two letters to the committee that he now admits contained information about GOPAC that was inaccurate. The facts surrounding these inaccuracies were well known to Mr. Gingrich. Mr. Gingrich had read the letters before submitting them to the committee. When the investigative subcommittee specifically called the contradiction in the letters to Mr. Gingrich's attention, he once again defended them as accurate even though they were clearly wrong. The misleading letters were sent with the express intent of persuading the Committee on Standards of Official Conduct to dismiss the pending charges. They had the effect of misleading the committee. It stretches credibility to conclude that the repeated misstatements were innocent mistakes. The linchpin of these findings is stated clearly in the report of special counsel: ``Of all the people involved in drafting, reviewing, or submitting the letters, the only person who had firsthand knowledge of the facts contained within them with respect to the Renewing American Civilization course was Mr. Gingrich.'' The special counsel concludes: ``Either Mr. Gingrich intentionally made misrepresentations to the committee or he was again reckless in the way he provided information to the committee concerning a very important matter.'' Mr. Gingrich's defense is that he has always been very sensitive to ethics issues and he was embarrassed by the obvious inaccurate letters. He said he never intended to mislead the committee. But Mr. Gingrich's actions with respect to the understanding reached with the Committee on Standards of Official Conduct belies his statement. Mr. Gingrich, through his attorneys, had entered into an agreement with the committee. That agreement provided ``Mr. Gingrich agree that no public comment should be made about this matter while it is still pending. This includes having surrogates sent out to comment on the matter and attempt to mischaracterize it.'' I am sure that Members of this House are well aware of public comment since the release of our findings on December 21. As the special counsel States, ``In the opinion of the subcommittee Members and the special counsel, a number of press accounts indicated that Mr. Gingrich had violated that agreement,'' the finding of the bipartisan committee and our special counsel. Mr. Gingrich's violation of the no comment agreement raises serious questions about the extent to which he has deliberately sought to mislead the committee in other instances. Beyond the events of December 21, 1996, Republican operatives close to Mr. Gingrich conducted an ongoing campaign to disrupt the committee's work. It is relevant for this House to consider these circumstances in determining the degree of Mr. Gingrich's culpability in providing the Committee on Standards of Official Conduct information that was not accurate, reliable, and complete. It is up to the Members of this House to determine the appropriate sanction for the violations committed by Mr. Gingrich. This is not a vote on whether Mr. Gingrich should remain Speaker of the House. Members need time to become familiar with the factual record presented in the special counsel's report and to consider the seriousness of these violations that have just come to light during the past 4 days. In the days and weeks to come Mr. Gingrich and each Member of this House should consider how these charges bear on the question of the speakership. The resolution before us, the House, today is a sanction for Representative Gingrich for the ethics violations that he has committed. According to the House rules a reprimand is appropriate for serious violations of ethical standards. Sadly, Mr. Gingrich's conduct requires us to confirm that this case involves infractions of at least that level of seriousness. He has provided inaccurate and misleading information to the Committee on Standards of Official Conduct and there is significant evidence that he intended to do so. The recent history of congressional ethics sanctions indicate the House has imposed the sanction of reprimand when a Member has been found knowingly to have given false statements. But the earlier cases did not involve [[Page H174]] giving false statements to the Committee on Standards of Official Conduct itself in response to an inquiry from the Committee on Standards of Official Conduct, and Mr. Gingrich's case involves more than just giving false information to the committee. Mr. Gingrich has also admitted to directing a political empire that made extensive use of tax exempt entities for political fundraising purposes. As a result of all these actions, the reputation of the House of Representatives has been damaged and tax dollars have been lost. But there is still more. This is not the first time Mr. Gingrich has had ethical problems that drew critical action by the Committee on Standards of Official Conduct. On other occasions he has been sighted by this committee for violating House rules. The American public has not forgotten the lucrative book advance contract that the incoming Speaker of the House was forced to renounce under public pressure. Our committee concluded in regards to that book deal: ``At a minimum this creates the impression of exploiting one's office for personal gain. Such perception is especially troubling when it pertains to the Office of the Speaker of the House, a constitutional office requiring the highest standards of ethical behavior.'' Because of all those factors, these violations require a penalty more serious than a reprimand. Considering all these matters, I urge this House to adopt the resolution before us. The resolution incorporates the recommendation of the special counsel, the investigative subcommittee, the full Committee on Standards of Official, and Mr. Gingrich. The sanction we recommend is somewhere between a reprimand and a censure. It provides a reprimand plus a required $300,000 contribution by Mr. Gingrich to the cost of these proceedings. In my view this payment should come from his personal resources because it is a personal responsibility. Mr. Speaker, with today's vote I will have completed my service on the Committee on Standards of Official Conduct. Over the past 6 years and 1 month I have participated in many ethics matters. Among the issues that we had before the committee during my tenure has been not only this matter but the House bank and post office matters, both of which exposed many Members of this House, including its leadership, to embarrassment either for misdeeds or for mismanagement. I must say, however, that the matter before us today has brought a threat to the Committee on Standards of Official Conduct that far exceeded anything I have seen. The committee was subject to repeated attempts to obstruct its work and improperly interfere with its investigation. As I leave the Committee on Standards of Official Conduct, I hope that the incoming Members will find the process has survived and will continue to serve this House and the people of our Nation. Mr. Speaker, I reserve the balance of my time. {time} 1230 Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico [Mr. Schiff], a distinguished member of the subcommittee. Mr. SCHIFF. Mr. Speaker, I first want to join in the compliments to the other committee members and to our staffs and special counsel because, even though we had many disagreements along the way, and obviously still have some disagreements, I think we made the best possible effort to get us here today. I agree with the gentleman from Maryland [Mr. Cardin] this is a sad day. It is a sad day when any Member is here because of a recommendation of the Committee on Standards of Official Conduct. Last time I was here it was because a Democratic colleague was here on our recommendations. I was not happier then because it was a Democrat and not a Republican then. I think it is a sad day when it is a Member of the House. Nevertheless, I think the House can be proud of the fact there is accountability for its Members. I wish such accountability could be found from every area of our government. Second, I am sorry that in the rendition of facts I just heard, there were certain partisan conclusions that eliminated other conclusions which I guess could be stated from the other side. For example, it was said that there was an attempt made by our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson] who got us here, when many people expected along the way we could never get here; but through her leadership we are here today. There was the accusation that our chairwoman deliberately tried to scuttle the information getting to the Members in order to mitigate any effect on Congressman Gingrich. Quite the contrary. Our chairwoman and the rest of us had an agreed to up to 5 days of public hearings. Those were changed only when our Democratic colleagues on the Committee on Standards of Official Conduct held a press conference in which they said the most important product we could produce would be a written report that Members could consider before they vote. That left our Chair, in my judgment, no alternative but to change directions and to postpone the public hearing, which we ultimately did have anyway, in favor of trying to produce the written report by this date which we have now accomplished. There has been no mention of the fact that Members on the Republican side particularly were subject to enormous political attack in their districts. If I were still a district attorney, a career I had before I got to Congress, I would have certain leaders arrested for attempted jury tampering, because I think that is what they were doing. They were trying to use political pressure to get a result in what is essentially a judicial type of deliberative body. That was their intent. That was one of the most unethical things I have seen since becoming a member of the Committee on Standards of Official Conduct. What I want to emphasize now is why we are here today. I want to point out that the statement made, that there have been many new facts revealed in the last several days, in my judgment is not correct. We are here because of a statement of alleged violation found by the ethics subcommittee and released publicly on December 21, 1996, to which the Speaker acknowledged. And those violations have not changed. What has changed is the reporting of those violations in the news media over the last several days. What I have seen in the news media in various forms is some significant misstatements of what the violations are. But I have to add that I do not believe that that was in this case the fault of the news media. It is their job to be critical of us, and it is our responsibility to respond if we think it is appropriate. But I want to make it very clear what I think happened was an unfortunate matter of timing, that on Friday of last week, our hearing did not begin and our written report was not available until 3 o'clock on Friday afternoon. Some reporters have told me there were not enough copies to go around. So they are trying to form deadlines for their programs or for their newspapers with a report that is over 200 pages long. I think it is entirely understandable that some errors were made at first. Nevertheless, I think some errors were made. They were made because Mr. Cole's report attempted to be a soup-to-nuts, beginning to end explanation of what we did in the ethics subcommittee to get to where we are today. In going through step by step, he quite properly, in my judgment, said we had this choice to make and we had this fact and we handled it as follows, and so forth. But what I have seen as reported as a final conclusion, certain excerpts from that report were intermediary at best. The final conclusion of the subcommittee did not change. That final conclusion is, first, that Mr. Gingrich should have sought competent legal, professional tax advice before he began his procedures that involved the use of a tax-exempt foundation, which under the law is called a 501(c)(3) organization. Second, that materials were sent to the Committee on Standards of Official Conduct in response to questions from the Committee on Standards of Official Conduct that the Speaker should have known were inaccurate. That is the final finding, if you will, of the subcommittee. The report goes through all of the events, and I heard the gentleman from [[Page H175]] Maryland [Mr. Cardin] make reference to a number of the events. But the findings did not change. All of the events would include things like we on the subcommittee interviewed everybody we could find who had anything to do with the preparation of those two letters that were inaccurate. What we found, in my judgment, if it were not so serious, and I recognize how serious it is, it would really be called a comedy of errors. What happened was the letters were prepared in Mr. Gingrich's law firm that sent the letters first to a staff member in Mr. Gingrich's office. The law firm thought that the staff member would correct any factual misstatements. The staff member thought the law firm had already checked out the facts. So nobody checked out the facts to see if they were accurate. But the most important thing is that Mr. Gingrich was never involved in the preparation of those letters at any point until the very end where he acknowledges he signed them, he should have read more carefully, and he is responsible for that before this House of Representatives. I would point out that in a letter of October 1996 that he prepared himself with his staff, he gave us entirely accurate information about the matters that are under consideration here. I think it is pretty obvious you do not give accurate information in October and then you can deliberately prepare information the following September and March that nobody would know the difference of. Based upon the allegation, the violations we found, the Committee on Standards of Official Conduct on a 7-to-1 vote, full committee now, entire committee, recommended the following penalty: It recommended a reprimand and a cost assessment of $300,000. In some meetings earlier with members, I have heard some members say that that is unique and they are concerned about that penalty being unique because, although we have imposed cost assessments before, we have never done so in the past for the cost of the investigation. That is basically what we did. We set $300,000 as the estimated cost of that portion of the investigation that dealt with clearing up the misstatements that we received, which may have begun to be prepared in Mr. Gingrich's law firm, but for which he is responsible as a Member of the House. I want to tell all Members that they do not need, in my judgment, to be concerned about the precedent value, because I believe everyone concerned understood that this is a unique penalty because the Speaker of the House is a unique official in our institution. In fact, that is the reason we decided to, on the subcommittee's part, propose a unique penalty, and we got word, I have to say ``got word,'' because we never met with the Speaker to discuss the penalty. All of the negotiations were by our special counsel on our behalf and the Speaker's attorney, Mr. Evans, on his behalf. So we got reports on it. But the report we got back was that Speaker Newt Gingrich agrees that because he holds a unique position in the House he should receive a unique penalty, so there is no doubt even the Speaker of the House is not above the rules. I would hastily add, however, two things, and conclude with this. The first is that I think there is room for this to be made a standing procedure in certain cases. For example, I saw what in my judgment were a number of frivolous complaints filed with the Committee on Standards of Official Conduct which had no other purpose than to be leaked to the press and create bad publicity for whomever was the target of those complaints. It seems to me that the precedent we have established here should apply to those who are found by the committee to have filed frivolous complaints. Finally, on how the funds should be paid if the House adopts the recommended penalty, we were deliberately silent on that. My colleague, the gentleman from Maryland [Mr. Cardin], is most certainly entitled to his opinion, but the subcommittee and the committee made no determination. Insofar as I have studied the precedents on financial remuneration to the Government, we have never established as a matter of law how these funds can be paid. Mr. Gingrich, if he does get this as a final penalty, understands all the ramifications, I am certain he does not need me to explain them to him or, for that matter, any of my colleagues on the other side. But the fact is the committee was silent deliberately on how any such funds should be paid. It is my understanding there are at least some precedents for campaign funds, for example, being used to reimburse the Government, and certainly we all know that the Chief Executive of the United States has a legal defense fund in which he raises money. So I am just saying that whatever the options are to Newt Gingrich as a Member of the House, they have not been precluded legally by the committee, and in my judgment they should not be. With that, Mr. Speaker, I just want to again commend our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson], my fellow members of the committee, and say I believe we have come up with an appropriate penalty, which some think is too harsh, some think is too lenient. That tells me we are about where we ought to be. I hope the House will adopt it. announcement by the speaker pro tempore The SPEAKER pro tempore (Mr. Bereuter). The Chair will request that visitors in the gallery, in coming and going, refrain from any audible disruption of the proceedings. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume briefly to comment on some of the points raised by the gentleman from New Mexico [Mr. Schiff]. Mr. Speaker, the gentleman from New Mexico [Mr. Schiff] is correct, we are in agreement on the recommendation. We put different emphasis on some of the facts. Mr. Gingrich clearly, in my view, had ample opportunity to know about the statements in his letters. He did indicate he hired an attorney in order to draft the two letters. Let me just read, if I might, from the transcripts as to the exchange between Mr. Cole and Mr. Baran, Mr. Baran being Mr. Gingrich's attorney. Mr. Cole: ``Would you have made sure that he had read it and approved it, or just the fact he read it is all you would have been interested in,'' referring to Mr. Gingrich? Mr. Baran said, ``No, I would have wanted him to be comfortable with this on many levels.'' Mr. Cole: ``Were you satisfied he was comfortable with it prior to filing it with the committee?'' Mr. Baran: ``Yes.'' Let me also point out that after this, after we pointed out to Mr. Gingrich the inconsistency in the letters, Mr. Gingrich wrote another letter back to the committee. Clearly he had time to review the inconsistencies by that time. The October 31, 1996, letter, in that letter he still maintains his innocence on inconsistencies in the letter, even though the letters were clearly inaccurate, he knew they were inaccurate, and he had a chance to reread the letters and correct the record. Mr. Speaker, I yield 11\1/2\ minutes to the gentlewoman from California [Ms. Pelosi], my colleague on the Committee on Standards of Official Conduct, who was on the investigative subcommittee and who has made a great contribution to this process and has been an extraordinary member of our Committee on Standards of Official Conduct. Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time and for his leadership and guidance throughout this process. Clearly without his involvement, we would not be here today with a bipartisan recommendation for a sanction for the Speaker of the House. Mr. Speaker, as a member of the investigative subcommittee, I would like to take this opportunity to publicly thank the gentleman from Florida, Porter Goss, our Chair of the investigative subcommittee, again acknowledge the gentleman from Maryland, Mr. Cardin, as ranking member for his service there, as well as to say how much I learned from the gentleman from new Mexico, Mr. Schiff, in the course of our service there. Clearly, from the debate so far, you can see that we had many unresolved difficult issues to deal with, and under the leadership of the gentleman from Florida [Mr. Goss], we went through that. I want to also commend our special counsel, James Cole, for making us stick to the facts, the law, and the ethics rules as those elements that were [[Page H176]] the only matters relevant to our decisions, and many thanks to Kevin Wolf and Virginia Johnson for their assistance and professionalism. I heard my colleague, the gentleman from New Mexico [Mr. Schiff], say in his earlier days as a prosecutor he might entertain thoughts of bringing jury tampering charges. If he decides to do that, I hope that the gentleman will include in his package the dirty tricks memo that is now in the public record that is a written document about attempts to undermine the ethics process directly by the Republican House leadership. Let me say though we did produce a bipartisan product. I hope our work will serve as a foundation for a bipartisan solution to be agreed to today. Today, others have said it, is a sad day. I think it is a tragic day. Here in the House of Representatives we will sanction a sitting Speaker for the first time. It is an unwelcome task to pass judgment on any of our colleagues, but we have a responsibility to uphold ethical standards called for in the rules and expected by the American people. I associate myself with the gentleman from Maryland, Mr. Cardin's, remarks about the process. We should not have to choose to make the American people aware of either the hearing, a full hearing, or the report. But since we have a report, I urge everyone to read it. I think it is very instructive and gives lie to many of the mischaracterizations that have been made about the violations that the committee charged Mr. Gingrich with and those which he admitted to. {time} 1245 The last few weeks have been dreadful. But we have an opportunity to say today to the American people that when we come to Washington, we do not check our integrity at the beltway, and that power is not a license to ignore ethical standards. We also have an opportunity to tell the American people that sanity can reign in the Congress by demonstrating our ability to agree and disagree in a respectful way. The American people gave us the privilege to serve; they expect us not only to make the laws and to obey the laws, but also to live up to a high ethical standard. So today we are here to address the failure of Speaker Gingrich with regard to the laws governing charitable contributions and GOPAC, and his failure to respond accurately and reliably to the Committee on Standards of Official Conduct. I would like to just take a moment to refer to the book, because as I asked people to read it, I want to point out the statement of alleged violations which was originally set forth by the special counsel. This is on page 155. Based on the information described above, the special counsel proposed a statement of alleged violations to the subcommittee on December 12. The statement of alleged violations contained 3 counts: Mr. Gingrich's activities on behalf of ALOF in regard to AOW and ACTV, and the activities of others in that regard with his knowledge and approval, constituted a violation of ALOF's status under section 501(c)(3). Second, Mr. Gingrich's activities on behalf of Kennesaw State College Foundation, the Progress and Freedom Foundation, and Reinhardt College in regard to the Renewing American Civilization course, and other activities in that regard, with his knowledge and approval, constituted a violation of those organizations' status under 501(c)(3). And, third, Mr. Gingrich had provided information to the committee, directly or through counsel, that was material to matters under consideration by the committee, which Mr. Gingrich knew or should have known was inaccurate, incomplete, and unreliable. These were not the alleged violations that were passed out at the committee because we did not come to agreement on them, but they are the original allegations by the special counsel. I think everyone is well aware that we have charged the Speaker in our statement of alleged violations that he did not ensure that the law was complied to in his activities, and that he gave information to the committee that was not accurate. Think how much easier it would be if we could all use the 501(c)(3), not consult a lawyer, and build our political agenda around tax deductible considerations. The American people in their generosity give the opportunity to charitable institutions to do charitable work. That does not include subsidizing our political activity. At the grassroots level we have always had to comply with the law in relationship to political activity and 501(c)(3). If we have to do it at the grassroots level, so should the Speaker of the House. As the counsel mentions in his statement, some members of the committee and the special counsel were in favor, as I mentioned before, of the original proposal. After much deliberation, all four of us could agree on a statement of alleged violations that despite, in quotes, ``Despite significant and substantial warnings, Mr. Gingrich did not seek the legal advice to ensure that his conduct conformed with the provisions of 501(c)(3),'' with the law. Why did he not? Why did he not? Either because Speaker Gingrich knew what the answer would be no, from an attorney, ``No, you cannot do this,'' or he was reckless in conforming with the law. The committee decided that regardless of the resolution of the 501(c)(3) tax question, Speaker Gingrich's conduct was improper, did not reflect credibly on the House, and was deserving of sanction, serious sanction, and Speaker Gingrich agreed. The next issue in my view is the most serious, that of not dealing honestly with the Committee on Standards of Official Conduct. It is interesting to me that Speaker Gingrich has repeatedly stated that ethics are important to him. Why, then, did he say that he was too busy to respond to the committee accurately? Again, either he was trying to get complaints dismissed and an accurate answer would not achieve that end, or that ethics were not important enough for him to take the necessary time. As our colleague, Mr. Cardin, has pointed out, Mr. Gingrich gave one answer in the earlier letter in order to respond to a complaint regarding use of official resources for his course, so he said GOPAC did it. Then when we asked the question if GOPAC and 501(c)(3) cannot be that cozy, then he said GOPAC did not do it; and then in the third communication to the committee, he stood by his previous letters. The gentleman from New Mexico [Mr. Schiff] prefers to call it a comedy of errors. I think it is violating our trust that we have among Members. Every day that we speak to each other in this House, we refer to each other as the gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland. We trust each other that we will deal truthfully with each other. Unfortunately, in terms of Speaker Gingrich's dealings with the committee on a number of occasions, and in his violation of the agreement under which we would go forward in bringing this issue to a conclusion, Mr. Gingrich's statements lead me to one conclusion: that Mr. Gingrich, in his dealings with the committee, is not to be believed. I conclude also that Mr. Gingrich gave these different answers not because it was a comedy of errors, but because he thought he would get away with it. I was particularly concerned about the ``too busy'' defense. We cannot say that ethics is important to us and then say we are too busy to answer the central question asked by the Committee on Standards of Official Conduct. Maintaining a high ethical standard is a decision, and it requires making it a priority. It is not just something we do when we are not too busy. We expect the Speaker of the House to be busy. We also expect the Speaker of the House to be ethical. Speaker Gingrich himself has stated that the Speaker must be held to a higher standard. I do not put any additional burden on the Speaker. I think all Members of Congress should be held to a higher ethical standard. When new Members arrive in Congress, one of the first documents they receive is the House Ethics Manual. And one of the first responsibilities impressed upon all of us is to uphold a high ethical standard. Clearly, Speaker Gingrich did not live up to his own professed ethical standards of the House, and, indeed, to the ethical standards in this book. I urge my colleagues to read this report. I think when you do, you will see [[Page H177]] that it gives lie to the mis characterizations of our Republican colleagues that the violations were nothing, or that they were like trespassing or double parking. Either our colleagues were ill-informed, and that is what I choose to believe, or they have a cavalier regard for the tragedy of the Speaker admitting bringing discredit to the House of Representatives which he wants to lead. Now we come to the penalty. As you know, we have a financial penalty because we believe that the inaccurate statements that the Speaker said to us prolonged the process. There are other reasons why there is a financial penalty, but that was one of them. And the subcommittee concluded, and I quote, ``that because these inaccurate statements were provided to the committee, this matter was not resolved as expeditiously as it could have been. This caused a controversy over the matter to arise and last for a substantial period of time, it disrupted the operations of the House, and it cost the House a substantial amount of money in order to determine the facts.'' So I urge our colleagues, in light of all of that, to support the bipartisan recommendation of the committee. The $300,000 penalty I believe speaks eloquently to the American people, who may not know the weight of one of our sanctions or another, but they understand $300,000. And I hope that this money will not come from the Speaker's political campaign funds, because I think that will increase the cynicism of the American people about what goes on here in Washington. Whether the Speaker remains Speaker is up to the Republicans. He is technically eligible. I hope you will make a judgment as to whether he is ethically fit. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida [Mr. Goss), the chairman of the subcommittee, and I want to recognize the outstanding job that he did chairing that subcommittee, as I recognize the remarkable service of the members of that subcommittee. (Mr. GOSS asked and was given permission to revise and extend his remarks.) Mr. GOSS. Mr. Speaker, I thank the gentlewoman from Connecticut, the distinguished chair of our committee, for yielding me this time. She deserves our sincere gratitude for all she has endured, for her persistence, for her determination to bring this to a successful conclusion, and here we are today. It was certainly an unenviable and, I know, thankless task. Today we have a conclusion. Today the House takes the final step in what has been a most difficult process, I think we all would agree. It is not just for those intimately involved in the day-to-day twists and turns in this tortuous case, but also for the entire House. On Friday the full Committee on Standards of Official Conduct approved a recommendation which is today before this House, for an official reprimand and a $300,000 cost assessment to Mr. Gingrich as sanction for his violation of House rules and as partial reimbursement for the costs of the inquiry that ensued. This is unquestionably a serious sanction, but one that is also fair and appropriate, in my view, as evidenced by the fact that indeed Mr. Gingrich himself has agreed to it. The Committee on Standards of Official Conduct, functioning independently of leadership on both sides of the aisle, is supposed to find the truth through an investigative process. It is not designed to protect errant Members, nor is it designed to permit partisan zealots to destroy Members or to score political points. In this case, the committee's members were subject to frequent unfair and inaccurate partisan political attack. That is a matter of fact. Outsiders attempted to influence our activities, our deliberations, our schedule and our conclusions. That is truly a shame. It has caused harm, not just to the Members involved, but it has also brought discredit to this institution, in my view. Friday, I urged the leadership on both sides of the aisle to tone down the rhetoric, cut the nonsense, and get back to work in repairing the damage that has come to this House. I repeat that exhortation today. With regard to the matter at hand, I am very satisfied with the work done by our investigative subcommittee, whose recommendation was adopted by the full committee and is the recommendation all Members will consider today. The four of us, working with the extraordinarily talented special counsel, Jim Cole, functioned in a spirit of bipartisan cooperation that did actually grow as we went along in the case. I say we started with different perspectives, but we started with open minds, and I am grateful for the very fine service, the unbelievable commitment of time of the members, their cooperation. I take my hat off to the gentleman from Maryland [Mr. Cardin], the gentleman from New Mexico [Mr. Schiff], and the gentlewoman from California [Ms. Pelosi], all of whom in my view bring great credit to this institution. Contrary to what has been reported, the statement of alleged violations that our subcommittee developed and passed and which forms the basis for the sanctioned recommendation did not, I repeat not, find that Mr. Gingrich violated or did not violate tax law in his relationship with 501(c)(3) tax exempt organizations. And contrary to media reports, that statement of alleged violation of December 21st also did not charge Mr. Gingrich with intentionally deceiving our committee with his correspondence in this case. Nonetheless, I found it extraordinarily imprudent of Mr. Gingrich not to seek and follow a less aggressive course of action in tax areas he knew to be sensitive and controversial. And even more troubling, I found the fact that the committee was given inaccurate, unreliable, and incomplete information to be a very serious failure on his part. {time} 1300 Now, it is certainly true that we had more than enough facts and extenuating circumstances to consider. We all know a Member of Congress wears many hats, for our official lives, our campaign lives, our private lives, our business lives or whatever, and knowledge of how careful we must be in wearing those hats is fundamental to our job. We all have an extra obligation to be sure our activities are appropriate, no matter which hat we are wearing. That is an obligation that each of us signs up for when we run to serve in this institution. That is why the serious sanction we recommend is appropriate, in my view. The gentleman from Georgia [Mr. Gingrich] has recognized his lapses and the problems they have caused for this House. He has apologized, forthrightly and sincerely. He has also accepted the unique sanction we proposed, one that includes a clear signal to all Members about the importance of providing accurate and grounded information to the Select Committee on Ethics, whether in response to a complaint or in filing a complaint. I must point out to Members that our mission in the preliminary investigation was to find and examine the dark clouds. That is what investigations do. Mr. Cole is very good at that. He is a brilliant prosecutor. In his report he presented well those dark clouds. He did not, however, present all of the other clouds we looked at that turned out to be not quite so dark. So I found that his report would be well supplemented by reading the report of the Speaker's attorneys for balance, as well. I refer colleagues and interested parties to both reports to get the full picture. In the end, I agreed with my subcommittee colleagues that Mr. Gingrich's absence of diligence subjects him legitimately to charges of conduct reckless enough to constitute a violation of House rules. I sincerely hope with today's voting we can put this matter to rest. I urge this House to adopt the recommendation of the Select Committee on Ethics and remember, the penalty is aimed at findings in response to the specific work of our subcommittee, no matter what feelings any particular Member may personally have about Mr. Gingrich. Some have said this is a sad day. Indeed it is, whenever we have this type of a situation. I will also say it is a day of victory. We have proved to the American people that no matter how rough the process is, we can police ourselves. We do know right from wrong in this institution. We can take the necessary steps. [[Page H178]] Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania [Mr. Borski], a very valuable member of the Select Committee on Ethics, who has done yeoman's service for the House and for the Congress on that committee. (Mr. BORSKI asked and was given permission to revise and extend his remarks.) Mr. BORSKI. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I want to start by commending the members of the investigative subcommittee, the gentleman from Maryland, Mr. Ben Cardin, the gentlewoman from California, Ms. Nancy Pelosi, the chairman, the gentleman from Florida, Mr. Porter Goss, and, of course, the gentleman from New Mexico, Mr. Schiff, for the extraordinary job they have performed for this institution. They are all people of enormously high integrity, and they have done this committee and this House very proud. I also want to commend the special counsel, Mr. Cole, who under the most difficult and trying of circumstances came through with a report that, again, I would urge all Members of the House to read; but again, under the most difficult and trying of circumstances, he performed an heroic deed for this House. Mr. Speaker, let me state the obvious. No Member seeks or enjoys a position on the Ethics Committee, but the proper functioning of that committee is essential to the integrity of the House. It is a matter of personal and institutional honor that each of us has agreed to serve. I remember distinctly when I received the phone call that any one of us never wants to get; a leader of my party, Speaker Tom Foley, asked me to serve on the Ethics Committee. I remember distinctly saying to Mr. Foley that I was reminded of the fellow who was tarred and feathered, put on a rail and run out of town, whose retort was that if it weren't for the honor, he would rather walk. I am on this committee, but it is as a reluctant member. On more than one occasion I have offered to step down when the removal of a member was necessary to maintain the political balance of the committee. But Mr. Speaker, I feel very strongly that it is our constitutional duty, and it was mine, to respond positively to Tom Foley's request. It was, again, certainly not a position that I wanted. I hope to concentrate my efforts and energies on the work of the Committee on Transportation and Infrastructure, probably the most bipartisan committee in this House of Representatives, and where that bipartisan atmosphere has enabled us to turn out very important pieces of legislation. It is always a grueling and distasteful task to investigate a fellow Member--all the more so in the case of the Speaker. Some have suggested that partisan attempts were made to derail the special counsel's efforts and render him less effective. I might say that I agree. The subcommittee released its statement of alleged violation on the Saturday before Christmas. The counsel's report was released on Friday afternoon, before inaugural weekend, with the vote firmly scheduled for this afternoon. Despite a prior agreement which allowed for a full week of public hearings, we were left with only a single afternoon's session. Mr. Cole, along with members of the full committee and subcommittee were troubled by the time line insisted upon by Republican leadership. The special counsel insisted with consistency that he would be hard pressed to complete a report detailing the 2-year investigation before February 4. Yet, Mr. Cole was denied the time he deemed necessary. Despite these obstacles, however, the special counsel did release a report on Friday afternoon which included the subcommittee's recommended sanction of a reprimand and fine. In this report, Mr. Cole, along with Ms. Roady, the subcommittee's tax expert, and two members of the committee conclude that Mr. Gingrich has violated the tax code in conjunction with 501(c)(3). However, the Committee agreed that the focus of the investigation should be on the conduct of the Member rather than the resolution of issues of tax law which would best be left to the IRS. What the report does say about the 501(c)(3), is the following: ``* * * the subcommittee was faced with a disturbing choice. Either Mr. Gingrich did not seek legal advice because he was aware that it would not have permitted him to use a 501(c)(3) organization for his projects, or he was reckless in not taking care that, as a Member of Congress, he made sure that his conduct conformed with the law in an area where he had ample warning that his intended course was fraught with legal peril. The subcommittee decided that regardless of the resolution of the 501(c)(3) tax question, Mr. Gingrich's conduct in this regard was improper, did not reflect creditably on the House and was deserving of sanction.'' With respect to the letters containing inaccurate information that Mr. Gingrich provided to the committee, the report goes on to say: ``The special counsel suggested that a good argument could be made, based on the record, that Mr. Gingrich did act intentionally, however it would be difficult to establish that with a high degree of certainty * * * In determining what the appropriate sanction should be in this matter, the subcommittee and the special counsel considered the seriousness of the conduct, the level of care exercised by Mr. Gingrich, the disruption caused to the House by the conduct, the cost to the House in having to pay for an extensive investigation, and the repetitive nature of the conduct.'' ``The subcommittee was faced with troubling choices in each of the areas covered by the statement of alleged violation. Either Mr. Gingrich's conduct in regard to the 501(c)(3) organizations and the letters he submitted to the committee was intentional or it was reckless. Neither choice reflects creditably on the House. * * *'' Under the rules of the committee, a reprimand is the appropriate sanction for a serious violation of House Rules and a censure is appropriate for a more serious violation of House rules. This is the extent to which guidelines are in place for Members to make a determination of sanction. According to the special counsel, it was the opinion of the Ethics Subcommittee, after two years of investigation and inquiry, that this matter fell somewhere in between. As such, both the subcommittee and the special counsel recommended that the appropriate sanction should be a reprimand and a payment reimbursing the House for some of the costs of the investigation in the amount of $300,000. Mr. Gingrich has agreed that this is the appropriate sanction, as has the full Ethics Committee. Mr. Speaker, I say to my colleagues, particularly my colleagues on the Democratic side of the aisle, this is not about who should be the Speaker of the House. Democrats have no say in who should be the Speaker of the House. That is up to the majority party. This is not about process. There were parts of this process that I find extremely disturbing, and parts that I think need to be dealt with further at an appropriate time. This is not that time. This is not about whether the existing tax code in question is arcane. I asked the special counsel, Mr. Cole, at our Friday afternoon public hearing whether the law was in fact arcane, and Mr. Cole responded in the strongest possible language that the law was not arcane. In fact, it is a headline issue that politics and tax-exempt organizations should not mix. Even Mr. Gingrich's tax attorney agreed with that statement. I also asked the special counsel to respond to the spin that we are all familiar with, and it goes like this: ``I saw the course, I watched the tape. There is nothing political about them.'' Mr. Cole's response was that the issue in question was not so much the content of the course, but, rather, the intent and the way in which it was distributed. The report states, ``Mr. Gingrich applied the ideas of the course to partisan political purposes.'' Mr. Speaker, this is not about determining the innocence or the guilt of Mr. Gingrich. He has already admitted that guilt, that he has brought discredit to this House. This is about the ability of the House of Representatives, under the most trying of circumstances, to judge one of its own Members, an extremely controversial Member, one who has led his party to the majority. It is our duty to determine the appropriate sanction to that Member. The subcommittee, aided by the special counsel, has conducted an investigation and made its recommendation to the full committee, which in turn has made that recommendation to the full House. Those are the processes we have adopted and those are the processes we have followed. We are giving every Member, independently, the opportunity to put aside partisan politics and follow the recommendation offered by the special counsel, the subcommittee, and the full committee upon completion of a 2-year inquiry. It is right and it is just. We were asked as Members of Congress to put aside our partisan beliefs and serve on this committee out of a sense of duty and honor. [[Page H179]] Now, we are asking you to honor our recommendations with dignity. I ask my colleagues to honor the work of the Ethics Committee and to vote yes for this very strict sanction. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. Smith]. (Mr. SMITH of Texas asked and was given permission to revise and extend his remarks.) Mr. SMITH of Texas. Mr. Speaker, I thank the chair of the Ethics Committee for yielding time to me. Let me say at the outset that you can clearly disagree and have great respect for your colleagues on the Ethics Committee, as I do, and still reach different conclusions, as I do. My conclusion is that the penalty that has been assessed by the Ethics Committee is way too severe whe

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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH
(House of Representatives - January 21, 1997)

Text of this article available as: TXT PDF [Pages H171-H235] IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH Mrs. JOHNSON of Connecticut. Mr. Speaker, pursuant to rule IX and by direction of the Select Committee on Ethics, I send to the desk a privileged resolution (H. Res. 31) in the matter of Representative Newt Gingrich, and ask for its immediate consideration. The Clerk read the resolution, as follows: House Resolution 31 In the Matter of Representative Newt Gingrich Resolved, That the House adopt the report of the Select Committee on Ethics dated January 17, 1997, In the Matter of Representative Newt Gingrich. The SPEAKER pro tempore. The resolution constitutes a question of privilege and may be called up at any time. Announcement by the Speaker Pro Tempore The SPEAKER pro tempore. Before we proceed, the Chair will have a statement about the decorum expected of the Members. The Chair has often reiterated that Members should refrain from references in debate to the conduct of other Members where such conduct is not the question actually pending before the House, either by way of a report from the Committee on Standards of Official Conduct or by way of another question of the privileges of the House. This principle is documented on pages 168 and 526 of the House Rules and Manual and reflects the consistent rulings of the Chair in this and in prior Congresses. It derives its force primarily from clause 1 of rule XIV which broadly prohibits engaging in personality in debate. It has been part of the rules of the House since 1789. On the other hand, the calling up of a resolution reported by the Committee on Standards of Official Conduct, or the offering of a resolution as a similar question of the privileges of the House, embarks the House on consideration of a proposition that admits references in debate to a Member's conduct. Disciplinary matters by their very nature involve personalities. Still, this exception to the general rule against engaging in personality--admitting references to a Member's conduct when that conduct is the very question under consideration by the House--is closely limited. This point was well stated on July 31, 1979, as follows: While a wide range of discussion is permitted during debate on a disciplinary resolution, clause 1 of rule XIV still prohibits the use of language which is personally abusive. This is recorded in the Deschler-Brown Procedure in the House of Representatives in chapter 12, at section 2.11. On the question now pending before the House, the resolution offered by the gentlewoman from Connecticut, Members should confine their remarks in debate to the merits of that precise [[Page H172]] question. Members should refrain from remarks that constitute personalities with respect to members of the Committee on Standards of Official Conduct or the Select Committee on Ethics or with respect to other sitting Members whose conduct is not the subject of the pending report. Finally, Members should exercise care to maintain an atmosphere of mutual respect. On January 27, 1909, the House adopted a report that stated the following: It is the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members. This is recorded in Cannon's Precedents in volume 8 at section 2497. The report adopted on that occasion responded to improper references in debate to the President, but it articulated a principle that occupants of the Chair over many Congresses have held equally applicable to Members' remarks toward each other. The Chair asks and expects the cooperation of all Members in maintaining a level of decorum that properly dignifies the proceedings of the House. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 1 hour. Mrs. JOHNSON of Connecticut. Mr. Speaker, I ask unanimous consent that debate on the resolution be extended for a half an hour. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Connecticut? There was no objection. The SPEAKER pro tempore. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 90 minutes. Mrs. JOHNSON of Connecticut. Mr. Speaker, for purposes of debate only, I yield 45 minutes to the gentleman from Maryland [Mr. Cardin], pending which I yield myself such time as I may consume. Mr. Speaker, I rise as chairman of the Select Committee on Ethics to lay before you the committee's bipartisan recommendation for final action on the matter of Representative Newt Gingrich. The committee recommends that Representative Gingrich be reprimanded and reimburse the House $300,000. The penalty is tough and unprecedented. It is also appropriate. No one is above the rules of the House of Representatives. This matter centered on two key questions: whether the Speaker violated Federal tax law and whether he intentionally filed incorrect information with the Ethics Committee. While the committee investigated these questions extensively, its findings were inconclusive. Rather, the committee found that Representative Gingrich brought discredit to the House by failing to get appropriate legal advice to ensure that his actions would be in compliance with tax law and to oversee the development of his letters to the committee to ensure they were accurate in every respect. Each Member of Congress, especially those in positions of leadership, shoulders the responsibility of avoiding even the appearance of impropriety. Representative Gingrich failed to exercise the discipline and caution of his office and so is subject to penalty today. As I have said, the penalty recommended by the committee is tough and unprecedented. In past cases of this nature, the House has reprimanded a Member only where the Member was found to have intentionally made false statements to the Ethics Committee. In this case, the committee recommended a reprimand of Representative Gingrich even though the statement of alleged violations did not assert that he intentionally misled the committee. Likewise in past cases where the committee imposed monetary sanctions on a Member, the committee found that the Member had been personally enriched by the misconduct. The committee made no such finding against Representative Gingrich, yet recommends that a cost reimbursement of $300,000 be paid to the House by him. The report before us contains several hundred pages of exhibits and a detailed analysis of the subcommittee's findings. The allegations and the key facts supporting them were laid out by the special counsel during a public hearing on January 17. The committee's recommendations before you today end 2 long years of work. Throughout this process we never lost sight of our key goals: full and complete disclosure of the facts and a bipartisan recommendation. We accomplished both. Even though it would have been easy for Republicans or Democrats to walk away from the process at many stages, we did not, because we believed in this institution and in the ethics process. The investigative subcommittee was ably chaired by Representative Porter Goss. Representatives Ben Cardin, Steve Schiff, and Nancy Pelosi, along with Mr. Goss deserve the gratitude of this House for the extraordinary workload they shouldered and for their dedication to pursuing each issue until they reached consensus. Together with Mr. James Cole, the special counsel, they laid the groundwork for the bipartisan conclusion of this matter. I want to thank Mr. Cardin, the current ranking member, as well, for working with me through difficult times to enable the bipartisan Ethics Committee process to succeed. In the last 2 years the committee was forced to conduct its work against the backdrop of harsh political warfare. It is the first time ever that members of the Ethics Committee have been the target of coordinated partisan assaults in their districts. Coordinated political pressure on members of the Ethics Committee by other Members is not only destructive of the ethics oversight process but is beneath the dignity of this great institution and those who serve here. {time} 1215 Despite the pressures, we bring you today a bipartisan recommendation resolving the most complex charge against Representative Newt Gingrich. I ask for both my colleagues' rejection of the partisanship and animosity that has so deeply permeated the work of the House and for their support of the committee's resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. announcement by the speaker pro tempore The SPEAKER pro tempore. The gentleman will suspend. The Chair notes a disturbance in the visitors' gallery in contravention of the laws and the rules of the House. The Doorkeepers and police, the Chair believes, have already acted, but shall act to remove from the gallery those persons participating in a disturbance. If there is an outburst from the visitors' gallery, the Chair will make this statement but will insist on order. The Chair recognizes the gentleman from Maryland [Mr. Cardin]. Mr. CARDIN. Mr. Speaker, as I have said, this is a sad moment for the House of Representatives. One of our Members has admitted to a serious violation of the House rules. This process and this admission affects not only that Member but each Member who serves in this body. While I believe that is true of any ethics proceeding, it is particularly true and particularly troublesome in this case because the offending Member is the Speaker of the House, the third ranking official in our Government. We have received the report and recommendation from the special counsel. Mr. Gingrich has agreed with the judgment of the special counsel. In addition to the report, the recommendation of sanctions represents the bipartisan work produced by our investigative subcommittee. The report in the recommendation of sanctions has been overwhelmingly approved by the full Committee on Standards of Official Conduct and deserves the support of this House. Let me begin by saying how proud I am of the work of the investigative subcommittee. In my judgment, all four members of the subcommittee maintained their commitment to a process that was fair to the respondent as well as the House and its rules. I want to commend and compliment the work of our chairman, the gentleman from Florida [Mr. Goss], for the extraordinary work that he did as well as the work of the gentleman from New Mexico [Mr. Schiff] and the gentlewoman from California [Ms. Pelosi] and the work of the subcommittee. I also want to recognize the extraordinary service performed by Jim Cole, our special counsel; Kevin Wolf, his assistant; and Virginia Johnson from the [[Page H173]] Committee on Standards of Official Conduct. Before commenting on the substance of the resolution before us, I feel obligated to point out the severe problems that have plagued the process. The 1-year delay in 1995 in enlisting the services of the special counsel was wrong. We have some evidence that this delay may have been part of the strategy by allies of Mr. Gingrich. In sharp contrast to the good faith, bipartisan cooperation which governed the subcommittee's work, the orderly process collapsed on December 21, 1996, after the matter was forwarded to the full committee. Ignoring the advice of special counsel and the subcommittee, the Republican leadership in the House imposed an unrealistic deadline for the completion of our work to coincide with the Presidential inauguration. The schedule agreed upon by the full Committee on Standards of Official Conduct for full public hearings on the subcommittee findings was unilaterally and improperly canceled. These partisan actions were aimed at shielding Mr. Gingrich from a full airing of the charges to which he has admitted guilt. During the past 5 days the gentlewoman from Connecticut [Mrs. Johnson] and I have worked closely together to use these days as effectively as possible to achieve two objectives: First, in the face of an unrealistic time limit, to get the broadest possible public release of the information contained in the subcommittee's report; and second, to arrive at a fair, bipartisan recommendation on sanctions. We have achieved both objectives, and for that I would like to express my appreciation to the chairwoman. The report details the reason why the committee has found that Mr. Gingrich has committed a serious violation of the House ethics rules. I urge each of my colleagues to read the report and the accompanying exhibits. I will now briefly review the findings of the special counsel's report. First, we must disregard the notion that this case involves a college professor engaged in a normal academic classroom activity. The respondent in this case is not Professor Gingrich, but Representative Gingrich, a Member of the House, minority whip and then Speaker of the House, who had a vision to launch a political movement to change the country, in his words, from a welfare state to an opportunity society. Second, over a 5-year period Mr. Gingrich improperly commingled political activities with tax exempt organizations. When GOPAC ran short of funds, Mr. Gingrich sought contributions from several tax exempt entities in order to continue his partisan political crusade. Third, there is ample evidence that he did so in violation of tax laws. Celia Roady, the tax expert retained by the committee, has concluded that the tax laws were violated, and it is not even a close call. Our special counsel agrees with that judgment. In all, almost $1.5 million was spent by these tax exempt organizations, costing the U.S. Treasury hundreds of thousands of dollars in lost tax revenues that should have been paid. Fourth, one need not reach a conclusion on the tax issues to find that Mr. Gingrich has violated our ethical standards. From his involvement in the American Campaign Academy case, Mr. Gingrich knew that pursuing these activities posed a risk of potential tax law violations. The ACA case established limits on political activities of tax exempt organizations. It is important to understand that this case involved similar facts and some of the same parties as the matter investigated by the subcommittee. In fact, in response to a question from the special counsel, Mr. Gingrich stated, and I quote: ``I lived through that case. I mean I was very well aware of what the ACA case did and what the ruling was.'' All experts agreed that he should have sought tax advice before using tax exempt organizations to pursue his political agenda. In the words of our special counsel Mr. Gingrich's actions suggest that ``either Mr. Gingrich did not seek legal advice because he is aware that it would not have permitted him to use a 501(c)(3) organization for his projects,'' or he was ``reckless in an area that was fraught with legal peril.'' Finally, the House must make a judgment on the question of whether Mr. Gingrich deliberately misled the committee. Mr. Gingrich submitted two letters to the committee that he now admits contained information about GOPAC that was inaccurate. The facts surrounding these inaccuracies were well known to Mr. Gingrich. Mr. Gingrich had read the letters before submitting them to the committee. When the investigative subcommittee specifically called the contradiction in the letters to Mr. Gingrich's attention, he once again defended them as accurate even though they were clearly wrong. The misleading letters were sent with the express intent of persuading the Committee on Standards of Official Conduct to dismiss the pending charges. They had the effect of misleading the committee. It stretches credibility to conclude that the repeated misstatements were innocent mistakes. The linchpin of these findings is stated clearly in the report of special counsel: ``Of all the people involved in drafting, reviewing, or submitting the letters, the only person who had firsthand knowledge of the facts contained within them with respect to the Renewing American Civilization course was Mr. Gingrich.'' The special counsel concludes: ``Either Mr. Gingrich intentionally made misrepresentations to the committee or he was again reckless in the way he provided information to the committee concerning a very important matter.'' Mr. Gingrich's defense is that he has always been very sensitive to ethics issues and he was embarrassed by the obvious inaccurate letters. He said he never intended to mislead the committee. But Mr. Gingrich's actions with respect to the understanding reached with the Committee on Standards of Official Conduct belies his statement. Mr. Gingrich, through his attorneys, had entered into an agreement with the committee. That agreement provided ``Mr. Gingrich agree that no public comment should be made about this matter while it is still pending. This includes having surrogates sent out to comment on the matter and attempt to mischaracterize it.'' I am sure that Members of this House are well aware of public comment since the release of our findings on December 21. As the special counsel States, ``In the opinion of the subcommittee Members and the special counsel, a number of press accounts indicated that Mr. Gingrich had violated that agreement,'' the finding of the bipartisan committee and our special counsel. Mr. Gingrich's violation of the no comment agreement raises serious questions about the extent to which he has deliberately sought to mislead the committee in other instances. Beyond the events of December 21, 1996, Republican operatives close to Mr. Gingrich conducted an ongoing campaign to disrupt the committee's work. It is relevant for this House to consider these circumstances in determining the degree of Mr. Gingrich's culpability in providing the Committee on Standards of Official Conduct information that was not accurate, reliable, and complete. It is up to the Members of this House to determine the appropriate sanction for the violations committed by Mr. Gingrich. This is not a vote on whether Mr. Gingrich should remain Speaker of the House. Members need time to become familiar with the factual record presented in the special counsel's report and to consider the seriousness of these violations that have just come to light during the past 4 days. In the days and weeks to come Mr. Gingrich and each Member of this House should consider how these charges bear on the question of the speakership. The resolution before us, the House, today is a sanction for Representative Gingrich for the ethics violations that he has committed. According to the House rules a reprimand is appropriate for serious violations of ethical standards. Sadly, Mr. Gingrich's conduct requires us to confirm that this case involves infractions of at least that level of seriousness. He has provided inaccurate and misleading information to the Committee on Standards of Official Conduct and there is significant evidence that he intended to do so. The recent history of congressional ethics sanctions indicate the House has imposed the sanction of reprimand when a Member has been found knowingly to have given false statements. But the earlier cases did not involve [[Page H174]] giving false statements to the Committee on Standards of Official Conduct itself in response to an inquiry from the Committee on Standards of Official Conduct, and Mr. Gingrich's case involves more than just giving false information to the committee. Mr. Gingrich has also admitted to directing a political empire that made extensive use of tax exempt entities for political fundraising purposes. As a result of all these actions, the reputation of the House of Representatives has been damaged and tax dollars have been lost. But there is still more. This is not the first time Mr. Gingrich has had ethical problems that drew critical action by the Committee on Standards of Official Conduct. On other occasions he has been sighted by this committee for violating House rules. The American public has not forgotten the lucrative book advance contract that the incoming Speaker of the House was forced to renounce under public pressure. Our committee concluded in regards to that book deal: ``At a minimum this creates the impression of exploiting one's office for personal gain. Such perception is especially troubling when it pertains to the Office of the Speaker of the House, a constitutional office requiring the highest standards of ethical behavior.'' Because of all those factors, these violations require a penalty more serious than a reprimand. Considering all these matters, I urge this House to adopt the resolution before us. The resolution incorporates the recommendation of the special counsel, the investigative subcommittee, the full Committee on Standards of Official, and Mr. Gingrich. The sanction we recommend is somewhere between a reprimand and a censure. It provides a reprimand plus a required $300,000 contribution by Mr. Gingrich to the cost of these proceedings. In my view this payment should come from his personal resources because it is a personal responsibility. Mr. Speaker, with today's vote I will have completed my service on the Committee on Standards of Official Conduct. Over the past 6 years and 1 month I have participated in many ethics matters. Among the issues that we had before the committee during my tenure has been not only this matter but the House bank and post office matters, both of which exposed many Members of this House, including its leadership, to embarrassment either for misdeeds or for mismanagement. I must say, however, that the matter before us today has brought a threat to the Committee on Standards of Official Conduct that far exceeded anything I have seen. The committee was subject to repeated attempts to obstruct its work and improperly interfere with its investigation. As I leave the Committee on Standards of Official Conduct, I hope that the incoming Members will find the process has survived and will continue to serve this House and the people of our Nation. Mr. Speaker, I reserve the balance of my time. {time} 1230 Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico [Mr. Schiff], a distinguished member of the subcommittee. Mr. SCHIFF. Mr. Speaker, I first want to join in the compliments to the other committee members and to our staffs and special counsel because, even though we had many disagreements along the way, and obviously still have some disagreements, I think we made the best possible effort to get us here today. I agree with the gentleman from Maryland [Mr. Cardin] this is a sad day. It is a sad day when any Member is here because of a recommendation of the Committee on Standards of Official Conduct. Last time I was here it was because a Democratic colleague was here on our recommendations. I was not happier then because it was a Democrat and not a Republican then. I think it is a sad day when it is a Member of the House. Nevertheless, I think the House can be proud of the fact there is accountability for its Members. I wish such accountability could be found from every area of our government. Second, I am sorry that in the rendition of facts I just heard, there were certain partisan conclusions that eliminated other conclusions which I guess could be stated from the other side. For example, it was said that there was an attempt made by our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson] who got us here, when many people expected along the way we could never get here; but through her leadership we are here today. There was the accusation that our chairwoman deliberately tried to scuttle the information getting to the Members in order to mitigate any effect on Congressman Gingrich. Quite the contrary. Our chairwoman and the rest of us had an agreed to up to 5 days of public hearings. Those were changed only when our Democratic colleagues on the Committee on Standards of Official Conduct held a press conference in which they said the most important product we could produce would be a written report that Members could consider before they vote. That left our Chair, in my judgment, no alternative but to change directions and to postpone the public hearing, which we ultimately did have anyway, in favor of trying to produce the written report by this date which we have now accomplished. There has been no mention of the fact that Members on the Republican side particularly were subject to enormous political attack in their districts. If I were still a district attorney, a career I had before I got to Congress, I would have certain leaders arrested for attempted jury tampering, because I think that is what they were doing. They were trying to use political pressure to get a result in what is essentially a judicial type of deliberative body. That was their intent. That was one of the most unethical things I have seen since becoming a member of the Committee on Standards of Official Conduct. What I want to emphasize now is why we are here today. I want to point out that the statement made, that there have been many new facts revealed in the last several days, in my judgment is not correct. We are here because of a statement of alleged violation found by the ethics subcommittee and released publicly on December 21, 1996, to which the Speaker acknowledged. And those violations have not changed. What has changed is the reporting of those violations in the news media over the last several days. What I have seen in the news media in various forms is some significant misstatements of what the violations are. But I have to add that I do not believe that that was in this case the fault of the news media. It is their job to be critical of us, and it is our responsibility to respond if we think it is appropriate. But I want to make it very clear what I think happened was an unfortunate matter of timing, that on Friday of last week, our hearing did not begin and our written report was not available until 3 o'clock on Friday afternoon. Some reporters have told me there were not enough copies to go around. So they are trying to form deadlines for their programs or for their newspapers with a report that is over 200 pages long. I think it is entirely understandable that some errors were made at first. Nevertheless, I think some errors were made. They were made because Mr. Cole's report attempted to be a soup-to-nuts, beginning to end explanation of what we did in the ethics subcommittee to get to where we are today. In going through step by step, he quite properly, in my judgment, said we had this choice to make and we had this fact and we handled it as follows, and so forth. But what I have seen as reported as a final conclusion, certain excerpts from that report were intermediary at best. The final conclusion of the subcommittee did not change. That final conclusion is, first, that Mr. Gingrich should have sought competent legal, professional tax advice before he began his procedures that involved the use of a tax-exempt foundation, which under the law is called a 501(c)(3) organization. Second, that materials were sent to the Committee on Standards of Official Conduct in response to questions from the Committee on Standards of Official Conduct that the Speaker should have known were inaccurate. That is the final finding, if you will, of the subcommittee. The report goes through all of the events, and I heard the gentleman from [[Page H175]] Maryland [Mr. Cardin] make reference to a number of the events. But the findings did not change. All of the events would include things like we on the subcommittee interviewed everybody we could find who had anything to do with the preparation of those two letters that were inaccurate. What we found, in my judgment, if it were not so serious, and I recognize how serious it is, it would really be called a comedy of errors. What happened was the letters were prepared in Mr. Gingrich's law firm that sent the letters first to a staff member in Mr. Gingrich's office. The law firm thought that the staff member would correct any factual misstatements. The staff member thought the law firm had already checked out the facts. So nobody checked out the facts to see if they were accurate. But the most important thing is that Mr. Gingrich was never involved in the preparation of those letters at any point until the very end where he acknowledges he signed them, he should have read more carefully, and he is responsible for that before this House of Representatives. I would point out that in a letter of October 1996 that he prepared himself with his staff, he gave us entirely accurate information about the matters that are under consideration here. I think it is pretty obvious you do not give accurate information in October and then you can deliberately prepare information the following September and March that nobody would know the difference of. Based upon the allegation, the violations we found, the Committee on Standards of Official Conduct on a 7-to-1 vote, full committee now, entire committee, recommended the following penalty: It recommended a reprimand and a cost assessment of $300,000. In some meetings earlier with members, I have heard some members say that that is unique and they are concerned about that penalty being unique because, although we have imposed cost assessments before, we have never done so in the past for the cost of the investigation. That is basically what we did. We set $300,000 as the estimated cost of that portion of the investigation that dealt with clearing up the misstatements that we received, which may have begun to be prepared in Mr. Gingrich's law firm, but for which he is responsible as a Member of the House. I want to tell all Members that they do not need, in my judgment, to be concerned about the precedent value, because I believe everyone concerned understood that this is a unique penalty because the Speaker of the House is a unique official in our institution. In fact, that is the reason we decided to, on the subcommittee's part, propose a unique penalty, and we got word, I have to say ``got word,'' because we never met with the Speaker to discuss the penalty. All of the negotiations were by our special counsel on our behalf and the Speaker's attorney, Mr. Evans, on his behalf. So we got reports on it. But the report we got back was that Speaker Newt Gingrich agrees that because he holds a unique position in the House he should receive a unique penalty, so there is no doubt even the Speaker of the House is not above the rules. I would hastily add, however, two things, and conclude with this. The first is that I think there is room for this to be made a standing procedure in certain cases. For example, I saw what in my judgment were a number of frivolous complaints filed with the Committee on Standards of Official Conduct which had no other purpose than to be leaked to the press and create bad publicity for whomever was the target of those complaints. It seems to me that the precedent we have established here should apply to those who are found by the committee to have filed frivolous complaints. Finally, on how the funds should be paid if the House adopts the recommended penalty, we were deliberately silent on that. My colleague, the gentleman from Maryland [Mr. Cardin], is most certainly entitled to his opinion, but the subcommittee and the committee made no determination. Insofar as I have studied the precedents on financial remuneration to the Government, we have never established as a matter of law how these funds can be paid. Mr. Gingrich, if he does get this as a final penalty, understands all the ramifications, I am certain he does not need me to explain them to him or, for that matter, any of my colleagues on the other side. But the fact is the committee was silent deliberately on how any such funds should be paid. It is my understanding there are at least some precedents for campaign funds, for example, being used to reimburse the Government, and certainly we all know that the Chief Executive of the United States has a legal defense fund in which he raises money. So I am just saying that whatever the options are to Newt Gingrich as a Member of the House, they have not been precluded legally by the committee, and in my judgment they should not be. With that, Mr. Speaker, I just want to again commend our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson], my fellow members of the committee, and say I believe we have come up with an appropriate penalty, which some think is too harsh, some think is too lenient. That tells me we are about where we ought to be. I hope the House will adopt it. announcement by the speaker pro tempore The SPEAKER pro tempore (Mr. Bereuter). The Chair will request that visitors in the gallery, in coming and going, refrain from any audible disruption of the proceedings. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume briefly to comment on some of the points raised by the gentleman from New Mexico [Mr. Schiff]. Mr. Speaker, the gentleman from New Mexico [Mr. Schiff] is correct, we are in agreement on the recommendation. We put different emphasis on some of the facts. Mr. Gingrich clearly, in my view, had ample opportunity to know about the statements in his letters. He did indicate he hired an attorney in order to draft the two letters. Let me just read, if I might, from the transcripts as to the exchange between Mr. Cole and Mr. Baran, Mr. Baran being Mr. Gingrich's attorney. Mr. Cole: ``Would you have made sure that he had read it and approved it, or just the fact he read it is all you would have been interested in,'' referring to Mr. Gingrich? Mr. Baran said, ``No, I would have wanted him to be comfortable with this on many levels.'' Mr. Cole: ``Were you satisfied he was comfortable with it prior to filing it with the committee?'' Mr. Baran: ``Yes.'' Let me also point out that after this, after we pointed out to Mr. Gingrich the inconsistency in the letters, Mr. Gingrich wrote another letter back to the committee. Clearly he had time to review the inconsistencies by that time. The October 31, 1996, letter, in that letter he still maintains his innocence on inconsistencies in the letter, even though the letters were clearly inaccurate, he knew they were inaccurate, and he had a chance to reread the letters and correct the record. Mr. Speaker, I yield 11\1/2\ minutes to the gentlewoman from California [Ms. Pelosi], my colleague on the Committee on Standards of Official Conduct, who was on the investigative subcommittee and who has made a great contribution to this process and has been an extraordinary member of our Committee on Standards of Official Conduct. Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time and for his leadership and guidance throughout this process. Clearly without his involvement, we would not be here today with a bipartisan recommendation for a sanction for the Speaker of the House. Mr. Speaker, as a member of the investigative subcommittee, I would like to take this opportunity to publicly thank the gentleman from Florida, Porter Goss, our Chair of the investigative subcommittee, again acknowledge the gentleman from Maryland, Mr. Cardin, as ranking member for his service there, as well as to say how much I learned from the gentleman from new Mexico, Mr. Schiff, in the course of our service there. Clearly, from the debate so far, you can see that we had many unresolved difficult issues to deal with, and under the leadership of the gentleman from Florida [Mr. Goss], we went through that. I want to also commend our special counsel, James Cole, for making us stick to the facts, the law, and the ethics rules as those elements that were [[Page H176]] the only matters relevant to our decisions, and many thanks to Kevin Wolf and Virginia Johnson for their assistance and professionalism. I heard my colleague, the gentleman from New Mexico [Mr. Schiff], say in his earlier days as a prosecutor he might entertain thoughts of bringing jury tampering charges. If he decides to do that, I hope that the gentleman will include in his package the dirty tricks memo that is now in the public record that is a written document about attempts to undermine the ethics process directly by the Republican House leadership. Let me say though we did produce a bipartisan product. I hope our work will serve as a foundation for a bipartisan solution to be agreed to today. Today, others have said it, is a sad day. I think it is a tragic day. Here in the House of Representatives we will sanction a sitting Speaker for the first time. It is an unwelcome task to pass judgment on any of our colleagues, but we have a responsibility to uphold ethical standards called for in the rules and expected by the American people. I associate myself with the gentleman from Maryland, Mr. Cardin's, remarks about the process. We should not have to choose to make the American people aware of either the hearing, a full hearing, or the report. But since we have a report, I urge everyone to read it. I think it is very instructive and gives lie to many of the mischaracterizations that have been made about the violations that the committee charged Mr. Gingrich with and those which he admitted to. {time} 1245 The last few weeks have been dreadful. But we have an opportunity to say today to the American people that when we come to Washington, we do not check our integrity at the beltway, and that power is not a license to ignore ethical standards. We also have an opportunity to tell the American people that sanity can reign in the Congress by demonstrating our ability to agree and disagree in a respectful way. The American people gave us the privilege to serve; they expect us not only to make the laws and to obey the laws, but also to live up to a high ethical standard. So today we are here to address the failure of Speaker Gingrich with regard to the laws governing charitable contributions and GOPAC, and his failure to respond accurately and reliably to the Committee on Standards of Official Conduct. I would like to just take a moment to refer to the book, because as I asked people to read it, I want to point out the statement of alleged violations which was originally set forth by the special counsel. This is on page 155. Based on the information described above, the special counsel proposed a statement of alleged violations to the subcommittee on December 12. The statement of alleged violations contained 3 counts: Mr. Gingrich's activities on behalf of ALOF in regard to AOW and ACTV, and the activities of others in that regard with his knowledge and approval, constituted a violation of ALOF's status under section 501(c)(3). Second, Mr. Gingrich's activities on behalf of Kennesaw State College Foundation, the Progress and Freedom Foundation, and Reinhardt College in regard to the Renewing American Civilization course, and other activities in that regard, with his knowledge and approval, constituted a violation of those organizations' status under 501(c)(3). And, third, Mr. Gingrich had provided information to the committee, directly or through counsel, that was material to matters under consideration by the committee, which Mr. Gingrich knew or should have known was inaccurate, incomplete, and unreliable. These were not the alleged violations that were passed out at the committee because we did not come to agreement on them, but they are the original allegations by the special counsel. I think everyone is well aware that we have charged the Speaker in our statement of alleged violations that he did not ensure that the law was complied to in his activities, and that he gave information to the committee that was not accurate. Think how much easier it would be if we could all use the 501(c)(3), not consult a lawyer, and build our political agenda around tax deductible considerations. The American people in their generosity give the opportunity to charitable institutions to do charitable work. That does not include subsidizing our political activity. At the grassroots level we have always had to comply with the law in relationship to political activity and 501(c)(3). If we have to do it at the grassroots level, so should the Speaker of the House. As the counsel mentions in his statement, some members of the committee and the special counsel were in favor, as I mentioned before, of the original proposal. After much deliberation, all four of us could agree on a statement of alleged violations that despite, in quotes, ``Despite significant and substantial warnings, Mr. Gingrich did not seek the legal advice to ensure that his conduct conformed with the provisions of 501(c)(3),'' with the law. Why did he not? Why did he not? Either because Speaker Gingrich knew what the answer would be no, from an attorney, ``No, you cannot do this,'' or he was reckless in conforming with the law. The committee decided that regardless of the resolution of the 501(c)(3) tax question, Speaker Gingrich's conduct was improper, did not reflect credibly on the House, and was deserving of sanction, serious sanction, and Speaker Gingrich agreed. The next issue in my view is the most serious, that of not dealing honestly with the Committee on Standards of Official Conduct. It is interesting to me that Speaker Gingrich has repeatedly stated that ethics are important to him. Why, then, did he say that he was too busy to respond to the committee accurately? Again, either he was trying to get complaints dismissed and an accurate answer would not achieve that end, or that ethics were not important enough for him to take the necessary time. As our colleague, Mr. Cardin, has pointed out, Mr. Gingrich gave one answer in the earlier letter in order to respond to a complaint regarding use of official resources for his course, so he said GOPAC did it. Then when we asked the question if GOPAC and 501(c)(3) cannot be that cozy, then he said GOPAC did not do it; and then in the third communication to the committee, he stood by his previous letters. The gentleman from New Mexico [Mr. Schiff] prefers to call it a comedy of errors. I think it is violating our trust that we have among Members. Every day that we speak to each other in this House, we refer to each other as the gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland. We trust each other that we will deal truthfully with each other. Unfortunately, in terms of Speaker Gingrich's dealings with the committee on a number of occasions, and in his violation of the agreement under which we would go forward in bringing this issue to a conclusion, Mr. Gingrich's statements lead me to one conclusion: that Mr. Gingrich, in his dealings with the committee, is not to be believed. I conclude also that Mr. Gingrich gave these different answers not because it was a comedy of errors, but because he thought he would get away with it. I was particularly concerned about the ``too busy'' defense. We cannot say that ethics is important to us and then say we are too busy to answer the central question asked by the Committee on Standards of Official Conduct. Maintaining a high ethical standard is a decision, and it requires making it a priority. It is not just something we do when we are not too busy. We expect the Speaker of the House to be busy. We also expect the Speaker of the House to be ethical. Speaker Gingrich himself has stated that the Speaker must be held to a higher standard. I do not put any additional burden on the Speaker. I think all Members of Congress should be held to a higher ethical standard. When new Members arrive in Congress, one of the first documents they receive is the House Ethics Manual. And one of the first responsibilities impressed upon all of us is to uphold a high ethical standard. Clearly, Speaker Gingrich did not live up to his own professed ethical standards of the House, and, indeed, to the ethical standards in this book. I urge my colleagues to read this report. I think when you do, you will see [[Page H177]] that it gives lie to the mis characterizations of our Republican colleagues that the violations were nothing, or that they were like trespassing or double parking. Either our colleagues were ill-informed, and that is what I choose to believe, or they have a cavalier regard for the tragedy of the Speaker admitting bringing discredit to the House of Representatives which he wants to lead. Now we come to the penalty. As you know, we have a financial penalty because we believe that the inaccurate statements that the Speaker said to us prolonged the process. There are other reasons why there is a financial penalty, but that was one of them. And the subcommittee concluded, and I quote, ``that because these inaccurate statements were provided to the committee, this matter was not resolved as expeditiously as it could have been. This caused a controversy over the matter to arise and last for a substantial period of time, it disrupted the operations of the House, and it cost the House a substantial amount of money in order to determine the facts.'' So I urge our colleagues, in light of all of that, to support the bipartisan recommendation of the committee. The $300,000 penalty I believe speaks eloquently to the American people, who may not know the weight of one of our sanctions or another, but they understand $300,000. And I hope that this money will not come from the Speaker's political campaign funds, because I think that will increase the cynicism of the American people about what goes on here in Washington. Whether the Speaker remains Speaker is up to the Republicans. He is technically eligible. I hope you will make a judgment as to whether he is ethically fit. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida [Mr. Goss), the chairman of the subcommittee, and I want to recognize the outstanding job that he did chairing that subcommittee, as I recognize the remarkable service of the members of that subcommittee. (Mr. GOSS asked and was given permission to revise and extend his remarks.) Mr. GOSS. Mr. Speaker, I thank the gentlewoman from Connecticut, the distinguished chair of our committee, for yielding me this time. She deserves our sincere gratitude for all she has endured, for her persistence, for her determination to bring this to a successful conclusion, and here we are today. It was certainly an unenviable and, I know, thankless task. Today we have a conclusion. Today the House takes the final step in what has been a most difficult process, I think we all would agree. It is not just for those intimately involved in the day-to-day twists and turns in this tortuous case, but also for the entire House. On Friday the full Committee on Standards of Official Conduct approved a recommendation which is today before this House, for an official reprimand and a $300,000 cost assessment to Mr. Gingrich as sanction for his violation of House rules and as partial reimbursement for the costs of the inquiry that ensued. This is unquestionably a serious sanction, but one that is also fair and appropriate, in my view, as evidenced by the fact that indeed Mr. Gingrich himself has agreed to it. The Committee on Standards of Official Conduct, functioning independently of leadership on both sides of the aisle, is supposed to find the truth through an investigative process. It is not designed to protect errant Members, nor is it designed to permit partisan zealots to destroy Members or to score political points. In this case, the committee's members were subject to frequent unfair and inaccurate partisan political attack. That is a matter of fact. Outsiders attempted to influence our activities, our deliberations, our schedule and our conclusions. That is truly a shame. It has caused harm, not just to the Members involved, but it has also brought discredit to this institution, in my view. Friday, I urged the leadership on both sides of the aisle to tone down the rhetoric, cut the nonsense, and get back to work in repairing the damage that has come to this House. I repeat that exhortation today. With regard to the matter at hand, I am very satisfied with the work done by our investigative subcommittee, whose recommendation was adopted by the full committee and is the recommendation all Members will consider today. The four of us, working with the extraordinarily talented special counsel, Jim Cole, functioned in a spirit of bipartisan cooperation that did actually grow as we went along in the case. I say we started with different perspectives, but we started with open minds, and I am grateful for the very fine service, the unbelievable commitment of time of the members, their cooperation. I take my hat off to the gentleman from Maryland [Mr. Cardin], the gentleman from New Mexico [Mr. Schiff], and the gentlewoman from California [Ms. Pelosi], all of whom in my view bring great credit to this institution. Contrary to what has been reported, the statement of alleged violations that our subcommittee developed and passed and which forms the basis for the sanctioned recommendation did not, I repeat not, find that Mr. Gingrich violated or did not violate tax law in his relationship with 501(c)(3) tax exempt organizations. And contrary to media reports, that statement of alleged violation of December 21st also did not charge Mr. Gingrich with intentionally deceiving our committee with his correspondence in this case. Nonetheless, I found it extraordinarily imprudent of Mr. Gingrich not to seek and follow a less aggressive course of action in tax areas he knew to be sensitive and controversial. And even more troubling, I found the fact that the committee was given inaccurate, unreliable, and incomplete information to be a very serious failure on his part. {time} 1300 Now, it is certainly true that we had more than enough facts and extenuating circumstances to consider. We all know a Member of Congress wears many hats, for our official lives, our campaign lives, our private lives, our business lives or whatever, and knowledge of how careful we must be in wearing those hats is fundamental to our job. We all have an extra obligation to be sure our activities are appropriate, no matter which hat we are wearing. That is an obligation that each of us signs up for when we run to serve in this institution. That is why the serious sanction we recommend is appropriate, in my view. The gentleman from Georgia [Mr. Gingrich] has recognized his lapses and the problems they have caused for this House. He has apologized, forthrightly and sincerely. He has also accepted the unique sanction we proposed, one that includes a clear signal to all Members about the importance of providing accurate and grounded information to the Select Committee on Ethics, whether in response to a complaint or in filing a complaint. I must point out to Members that our mission in the preliminary investigation was to find and examine the dark clouds. That is what investigations do. Mr. Cole is very good at that. He is a brilliant prosecutor. In his report he presented well those dark clouds. He did not, however, present all of the other clouds we looked at that turned out to be not quite so dark. So I found that his report would be well supplemented by reading the report of the Speaker's attorneys for balance, as well. I refer colleagues and interested parties to both reports to get the full picture. In the end, I agreed with my subcommittee colleagues that Mr. Gingrich's absence of diligence subjects him legitimately to charges of conduct reckless enough to constitute a violation of House rules. I sincerely hope with today's voting we can put this matter to rest. I urge this House to adopt the recommendation of the Select Committee on Ethics and remember, the penalty is aimed at findings in response to the specific work of our subcommittee, no matter what feelings any particular Member may personally have about Mr. Gingrich. Some have said this is a sad day. Indeed it is, whenever we have this type of a situation. I will also say it is a day of victory. We have proved to the American people that no matter how rough the process is, we can police ourselves. We do know right from wrong in this institution. We can take the necessary steps. [[Page H178]] Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania [Mr. Borski], a very valuable member of the Select Committee on Ethics, who has done yeoman's service for the House and for the Congress on that committee. (Mr. BORSKI asked and was given permission to revise and extend his remarks.) Mr. BORSKI. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I want to start by commending the members of the investigative subcommittee, the gentleman from Maryland, Mr. Ben Cardin, the gentlewoman from California, Ms. Nancy Pelosi, the chairman, the gentleman from Florida, Mr. Porter Goss, and, of course, the gentleman from New Mexico, Mr. Schiff, for the extraordinary job they have performed for this institution. They are all people of enormously high integrity, and they have done this committee and this House very proud. I also want to commend the special counsel, Mr. Cole, who under the most difficult and trying of circumstances came through with a report that, again, I would urge all Members of the House to read; but again, under the most difficult and trying of circumstances, he performed an heroic deed for this House. Mr. Speaker, let me state the obvious. No Member seeks or enjoys a position on the Ethics Committee, but the proper functioning of that committee is essential to the integrity of the House. It is a matter of personal and institutional honor that each of us has agreed to serve. I remember distinctly when I received the phone call that any one of us never wants to get; a leader of my party, Speaker Tom Foley, asked me to serve on the Ethics Committee. I remember distinctly saying to Mr. Foley that I was reminded of the fellow who was tarred and feathered, put on a rail and run out of town, whose retort was that if it weren't for the honor, he would rather walk. I am on this committee, but it is as a reluctant member. On more than one occasion I have offered to step down when the removal of a member was necessary to maintain the political balance of the committee. But Mr. Speaker, I feel very strongly that it is our constitutional duty, and it was mine, to respond positively to Tom Foley's request. It was, again, certainly not a position that I wanted. I hope to concentrate my efforts and energies on the work of the Committee on Transportation and Infrastructure, probably the most bipartisan committee in this House of Representatives, and where that bipartisan atmosphere has enabled us to turn out very important pieces of legislation. It is always a grueling and distasteful task to investigate a fellow Member--all the more so in the case of the Speaker. Some have suggested that partisan attempts were made to derail the special counsel's efforts and render him less effective. I might say that I agree. The subcommittee released its statement of alleged violation on the Saturday before Christmas. The counsel's report was released on Friday afternoon, before inaugural weekend, with the vote firmly scheduled for this afternoon. Despite a prior agreement which allowed for a full week of public hearings, we were left with only a single afternoon's session. Mr. Cole, along with members of the full committee and subcommittee were troubled by the time line insisted upon by Republican leadership. The special counsel insisted with consistency that he would be hard pressed to complete a report detailing the 2-year investigation before February 4. Yet, Mr. Cole was denied the time he deemed necessary. Despite these obstacles, however, the special counsel did release a report on Friday afternoon which included the subcommittee's recommended sanction of a reprimand and fine. In this report, Mr. Cole, along with Ms. Roady, the subcommittee's tax expert, and two members of the committee conclude that Mr. Gingrich has violated the tax code in conjunction with 501(c)(3). However, the Committee agreed that the focus of the investigation should be on the conduct of the Member rather than the resolution of issues of tax law which would best be left to the IRS. What the report does say about the 501(c)(3), is the following: ``* * * the subcommittee was faced with a disturbing choice. Either Mr. Gingrich did not seek legal advice because he was aware that it would not have permitted him to use a 501(c)(3) organization for his projects, or he was reckless in not taking care that, as a Member of Congress, he made sure that his conduct conformed with the law in an area where he had ample warning that his intended course was fraught with legal peril. The subcommittee decided that regardless of the resolution of the 501(c)(3) tax question, Mr. Gingrich's conduct in this regard was improper, did not reflect creditably on the House and was deserving of sanction.'' With respect to the letters containing inaccurate information that Mr. Gingrich provided to the committee, the report goes on to say: ``The special counsel suggested that a good argument could be made, based on the record, that Mr. Gingrich did act intentionally, however it would be difficult to establish that with a high degree of certainty * * * In determining what the appropriate sanction should be in this matter, the subcommittee and the special counsel considered the seriousness of the conduct, the level of care exercised by Mr. Gingrich, the disruption caused to the House by the conduct, the cost to the House in having to pay for an extensive investigation, and the repetitive nature of the conduct.'' ``The subcommittee was faced with troubling choices in each of the areas covered by the statement of alleged violation. Either Mr. Gingrich's conduct in regard to the 501(c)(3) organizations and the letters he submitted to the committee was intentional or it was reckless. Neither choice reflects creditably on the House. * * *'' Under the rules of the committee, a reprimand is the appropriate sanction for a serious violation of House Rules and a censure is appropriate for a more serious violation of House rules. This is the extent to which guidelines are in place for Members to make a determination of sanction. According to the special counsel, it was the opinion of the Ethics Subcommittee, after two years of investigation and inquiry, that this matter fell somewhere in between. As such, both the subcommittee and the special counsel recommended that the appropriate sanction should be a reprimand and a payment reimbursing the House for some of the costs of the investigation in the amount of $300,000. Mr. Gingrich has agreed that this is the appropriate sanction, as has the full Ethics Committee. Mr. Speaker, I say to my colleagues, particularly my colleagues on the Democratic side of the aisle, this is not about who should be the Speaker of the House. Democrats have no say in who should be the Speaker of the House. That is up to the majority party. This is not about process. There were parts of this process that I find extremely disturbing, and parts that I think need to be dealt with further at an appropriate time. This is not that time. This is not about whether the existing tax code in question is arcane. I asked the special counsel, Mr. Cole, at our Friday afternoon public hearing whether the law was in fact arcane, and Mr. Cole responded in the strongest possible language that the law was not arcane. In fact, it is a headline issue that politics and tax-exempt organizations should not mix. Even Mr. Gingrich's tax attorney agreed with that statement. I also asked the special counsel to respond to the spin that we are all familiar with, and it goes like this: ``I saw the course, I watched the tape. There is nothing political about them.'' Mr. Cole's response was that the issue in question was not so much the content of the course, but, rather, the intent and the way in which it was distributed. The report states, ``Mr. Gingrich applied the ideas of the course to partisan political purposes.'' Mr. Speaker, this is not about determining the innocence or the guilt of Mr. Gingrich. He has already admitted that guilt, that he has brought discredit to this House. This is about the ability of the House of Representatives, under the most trying of circumstances, to judge one of its own Members, an extremely controversial Member, one who has led his party to the majority. It is our duty to determine the appropriate sanction to that Member. The subcommittee, aided by the special counsel, has conducted an investigation and made its recommendation to the full committee, which in turn has made that recommendation to the full House. Those are the processes we have adopted and those are the processes we have followed. We are giving every Member, independently, the opportunity to put aside partisan politics and follow the recommendation offered by the special counsel, the subcommittee, and the full committee upon completion of a 2-year inquiry. It is right and it is just. We were asked as Members of Congress to put aside our partisan beliefs and serve on this committee out of a sense of duty and honor. [[Page H179]] Now, we are asking you to honor our recommendations with dignity. I ask my colleagues to honor the work of the Ethics Committee and to vote yes for this very strict sanction. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. Smith]. (Mr. SMITH of Texas asked and was given permission to revise and extend his remarks.) Mr. SMITH of Texas. Mr. Speaker, I thank the chair of the Ethics Committee for yielding time to me. Let me say at the outset that you can clearly disagree and have great respect for your colleagues on the Ethics Committee, as I do, and still reach different conclusions, as I do. My conclusion is that the penalty that has been assessed by the Ethics Committee is way too

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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH
(House of Representatives - January 21, 1997)

Text of this article available as: TXT PDF [Pages H171-H235] IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH Mrs. JOHNSON of Connecticut. Mr. Speaker, pursuant to rule IX and by direction of the Select Committee on Ethics, I send to the desk a privileged resolution (H. Res. 31) in the matter of Representative Newt Gingrich, and ask for its immediate consideration. The Clerk read the resolution, as follows: House Resolution 31 In the Matter of Representative Newt Gingrich Resolved, That the House adopt the report of the Select Committee on Ethics dated January 17, 1997, In the Matter of Representative Newt Gingrich. The SPEAKER pro tempore. The resolution constitutes a question of privilege and may be called up at any time. Announcement by the Speaker Pro Tempore The SPEAKER pro tempore. Before we proceed, the Chair will have a statement about the decorum expected of the Members. The Chair has often reiterated that Members should refrain from references in debate to the conduct of other Members where such conduct is not the question actually pending before the House, either by way of a report from the Committee on Standards of Official Conduct or by way of another question of the privileges of the House. This principle is documented on pages 168 and 526 of the House Rules and Manual and reflects the consistent rulings of the Chair in this and in prior Congresses. It derives its force primarily from clause 1 of rule XIV which broadly prohibits engaging in personality in debate. It has been part of the rules of the House since 1789. On the other hand, the calling up of a resolution reported by the Committee on Standards of Official Conduct, or the offering of a resolution as a similar question of the privileges of the House, embarks the House on consideration of a proposition that admits references in debate to a Member's conduct. Disciplinary matters by their very nature involve personalities. Still, this exception to the general rule against engaging in personality--admitting references to a Member's conduct when that conduct is the very question under consideration by the House--is closely limited. This point was well stated on July 31, 1979, as follows: While a wide range of discussion is permitted during debate on a disciplinary resolution, clause 1 of rule XIV still prohibits the use of language which is personally abusive. This is recorded in the Deschler-Brown Procedure in the House of Representatives in chapter 12, at section 2.11. On the question now pending before the House, the resolution offered by the gentlewoman from Connecticut, Members should confine their remarks in debate to the merits of that precise [[Page H172]] question. Members should refrain from remarks that constitute personalities with respect to members of the Committee on Standards of Official Conduct or the Select Committee on Ethics or with respect to other sitting Members whose conduct is not the subject of the pending report. Finally, Members should exercise care to maintain an atmosphere of mutual respect. On January 27, 1909, the House adopted a report that stated the following: It is the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members. This is recorded in Cannon's Precedents in volume 8 at section 2497. The report adopted on that occasion responded to improper references in debate to the President, but it articulated a principle that occupants of the Chair over many Congresses have held equally applicable to Members' remarks toward each other. The Chair asks and expects the cooperation of all Members in maintaining a level of decorum that properly dignifies the proceedings of the House. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 1 hour. Mrs. JOHNSON of Connecticut. Mr. Speaker, I ask unanimous consent that debate on the resolution be extended for a half an hour. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Connecticut? There was no objection. The SPEAKER pro tempore. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 90 minutes. Mrs. JOHNSON of Connecticut. Mr. Speaker, for purposes of debate only, I yield 45 minutes to the gentleman from Maryland [Mr. Cardin], pending which I yield myself such time as I may consume. Mr. Speaker, I rise as chairman of the Select Committee on Ethics to lay before you the committee's bipartisan recommendation for final action on the matter of Representative Newt Gingrich. The committee recommends that Representative Gingrich be reprimanded and reimburse the House $300,000. The penalty is tough and unprecedented. It is also appropriate. No one is above the rules of the House of Representatives. This matter centered on two key questions: whether the Speaker violated Federal tax law and whether he intentionally filed incorrect information with the Ethics Committee. While the committee investigated these questions extensively, its findings were inconclusive. Rather, the committee found that Representative Gingrich brought discredit to the House by failing to get appropriate legal advice to ensure that his actions would be in compliance with tax law and to oversee the development of his letters to the committee to ensure they were accurate in every respect. Each Member of Congress, especially those in positions of leadership, shoulders the responsibility of avoiding even the appearance of impropriety. Representative Gingrich failed to exercise the discipline and caution of his office and so is subject to penalty today. As I have said, the penalty recommended by the committee is tough and unprecedented. In past cases of this nature, the House has reprimanded a Member only where the Member was found to have intentionally made false statements to the Ethics Committee. In this case, the committee recommended a reprimand of Representative Gingrich even though the statement of alleged violations did not assert that he intentionally misled the committee. Likewise in past cases where the committee imposed monetary sanctions on a Member, the committee found that the Member had been personally enriched by the misconduct. The committee made no such finding against Representative Gingrich, yet recommends that a cost reimbursement of $300,000 be paid to the House by him. The report before us contains several hundred pages of exhibits and a detailed analysis of the subcommittee's findings. The allegations and the key facts supporting them were laid out by the special counsel during a public hearing on January 17. The committee's recommendations before you today end 2 long years of work. Throughout this process we never lost sight of our key goals: full and complete disclosure of the facts and a bipartisan recommendation. We accomplished both. Even though it would have been easy for Republicans or Democrats to walk away from the process at many stages, we did not, because we believed in this institution and in the ethics process. The investigative subcommittee was ably chaired by Representative Porter Goss. Representatives Ben Cardin, Steve Schiff, and Nancy Pelosi, along with Mr. Goss deserve the gratitude of this House for the extraordinary workload they shouldered and for their dedication to pursuing each issue until they reached consensus. Together with Mr. James Cole, the special counsel, they laid the groundwork for the bipartisan conclusion of this matter. I want to thank Mr. Cardin, the current ranking member, as well, for working with me through difficult times to enable the bipartisan Ethics Committee process to succeed. In the last 2 years the committee was forced to conduct its work against the backdrop of harsh political warfare. It is the first time ever that members of the Ethics Committee have been the target of coordinated partisan assaults in their districts. Coordinated political pressure on members of the Ethics Committee by other Members is not only destructive of the ethics oversight process but is beneath the dignity of this great institution and those who serve here. {time} 1215 Despite the pressures, we bring you today a bipartisan recommendation resolving the most complex charge against Representative Newt Gingrich. I ask for both my colleagues' rejection of the partisanship and animosity that has so deeply permeated the work of the House and for their support of the committee's resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. announcement by the speaker pro tempore The SPEAKER pro tempore. The gentleman will suspend. The Chair notes a disturbance in the visitors' gallery in contravention of the laws and the rules of the House. The Doorkeepers and police, the Chair believes, have already acted, but shall act to remove from the gallery those persons participating in a disturbance. If there is an outburst from the visitors' gallery, the Chair will make this statement but will insist on order. The Chair recognizes the gentleman from Maryland [Mr. Cardin]. Mr. CARDIN. Mr. Speaker, as I have said, this is a sad moment for the House of Representatives. One of our Members has admitted to a serious violation of the House rules. This process and this admission affects not only that Member but each Member who serves in this body. While I believe that is true of any ethics proceeding, it is particularly true and particularly troublesome in this case because the offending Member is the Speaker of the House, the third ranking official in our Government. We have received the report and recommendation from the special counsel. Mr. Gingrich has agreed with the judgment of the special counsel. In addition to the report, the recommendation of sanctions represents the bipartisan work produced by our investigative subcommittee. The report in the recommendation of sanctions has been overwhelmingly approved by the full Committee on Standards of Official Conduct and deserves the support of this House. Let me begin by saying how proud I am of the work of the investigative subcommittee. In my judgment, all four members of the subcommittee maintained their commitment to a process that was fair to the respondent as well as the House and its rules. I want to commend and compliment the work of our chairman, the gentleman from Florida [Mr. Goss], for the extraordinary work that he did as well as the work of the gentleman from New Mexico [Mr. Schiff] and the gentlewoman from California [Ms. Pelosi] and the work of the subcommittee. I also want to recognize the extraordinary service performed by Jim Cole, our special counsel; Kevin Wolf, his assistant; and Virginia Johnson from the [[Page H173]] Committee on Standards of Official Conduct. Before commenting on the substance of the resolution before us, I feel obligated to point out the severe problems that have plagued the process. The 1-year delay in 1995 in enlisting the services of the special counsel was wrong. We have some evidence that this delay may have been part of the strategy by allies of Mr. Gingrich. In sharp contrast to the good faith, bipartisan cooperation which governed the subcommittee's work, the orderly process collapsed on December 21, 1996, after the matter was forwarded to the full committee. Ignoring the advice of special counsel and the subcommittee, the Republican leadership in the House imposed an unrealistic deadline for the completion of our work to coincide with the Presidential inauguration. The schedule agreed upon by the full Committee on Standards of Official Conduct for full public hearings on the subcommittee findings was unilaterally and improperly canceled. These partisan actions were aimed at shielding Mr. Gingrich from a full airing of the charges to which he has admitted guilt. During the past 5 days the gentlewoman from Connecticut [Mrs. Johnson] and I have worked closely together to use these days as effectively as possible to achieve two objectives: First, in the face of an unrealistic time limit, to get the broadest possible public release of the information contained in the subcommittee's report; and second, to arrive at a fair, bipartisan recommendation on sanctions. We have achieved both objectives, and for that I would like to express my appreciation to the chairwoman. The report details the reason why the committee has found that Mr. Gingrich has committed a serious violation of the House ethics rules. I urge each of my colleagues to read the report and the accompanying exhibits. I will now briefly review the findings of the special counsel's report. First, we must disregard the notion that this case involves a college professor engaged in a normal academic classroom activity. The respondent in this case is not Professor Gingrich, but Representative Gingrich, a Member of the House, minority whip and then Speaker of the House, who had a vision to launch a political movement to change the country, in his words, from a welfare state to an opportunity society. Second, over a 5-year period Mr. Gingrich improperly commingled political activities with tax exempt organizations. When GOPAC ran short of funds, Mr. Gingrich sought contributions from several tax exempt entities in order to continue his partisan political crusade. Third, there is ample evidence that he did so in violation of tax laws. Celia Roady, the tax expert retained by the committee, has concluded that the tax laws were violated, and it is not even a close call. Our special counsel agrees with that judgment. In all, almost $1.5 million was spent by these tax exempt organizations, costing the U.S. Treasury hundreds of thousands of dollars in lost tax revenues that should have been paid. Fourth, one need not reach a conclusion on the tax issues to find that Mr. Gingrich has violated our ethical standards. From his involvement in the American Campaign Academy case, Mr. Gingrich knew that pursuing these activities posed a risk of potential tax law violations. The ACA case established limits on political activities of tax exempt organizations. It is important to understand that this case involved similar facts and some of the same parties as the matter investigated by the subcommittee. In fact, in response to a question from the special counsel, Mr. Gingrich stated, and I quote: ``I lived through that case. I mean I was very well aware of what the ACA case did and what the ruling was.'' All experts agreed that he should have sought tax advice before using tax exempt organizations to pursue his political agenda. In the words of our special counsel Mr. Gingrich's actions suggest that ``either Mr. Gingrich did not seek legal advice because he is aware that it would not have permitted him to use a 501(c)(3) organization for his projects,'' or he was ``reckless in an area that was fraught with legal peril.'' Finally, the House must make a judgment on the question of whether Mr. Gingrich deliberately misled the committee. Mr. Gingrich submitted two letters to the committee that he now admits contained information about GOPAC that was inaccurate. The facts surrounding these inaccuracies were well known to Mr. Gingrich. Mr. Gingrich had read the letters before submitting them to the committee. When the investigative subcommittee specifically called the contradiction in the letters to Mr. Gingrich's attention, he once again defended them as accurate even though they were clearly wrong. The misleading letters were sent with the express intent of persuading the Committee on Standards of Official Conduct to dismiss the pending charges. They had the effect of misleading the committee. It stretches credibility to conclude that the repeated misstatements were innocent mistakes. The linchpin of these findings is stated clearly in the report of special counsel: ``Of all the people involved in drafting, reviewing, or submitting the letters, the only person who had firsthand knowledge of the facts contained within them with respect to the Renewing American Civilization course was Mr. Gingrich.'' The special counsel concludes: ``Either Mr. Gingrich intentionally made misrepresentations to the committee or he was again reckless in the way he provided information to the committee concerning a very important matter.'' Mr. Gingrich's defense is that he has always been very sensitive to ethics issues and he was embarrassed by the obvious inaccurate letters. He said he never intended to mislead the committee. But Mr. Gingrich's actions with respect to the understanding reached with the Committee on Standards of Official Conduct belies his statement. Mr. Gingrich, through his attorneys, had entered into an agreement with the committee. That agreement provided ``Mr. Gingrich agree that no public comment should be made about this matter while it is still pending. This includes having surrogates sent out to comment on the matter and attempt to mischaracterize it.'' I am sure that Members of this House are well aware of public comment since the release of our findings on December 21. As the special counsel States, ``In the opinion of the subcommittee Members and the special counsel, a number of press accounts indicated that Mr. Gingrich had violated that agreement,'' the finding of the bipartisan committee and our special counsel. Mr. Gingrich's violation of the no comment agreement raises serious questions about the extent to which he has deliberately sought to mislead the committee in other instances. Beyond the events of December 21, 1996, Republican operatives close to Mr. Gingrich conducted an ongoing campaign to disrupt the committee's work. It is relevant for this House to consider these circumstances in determining the degree of Mr. Gingrich's culpability in providing the Committee on Standards of Official Conduct information that was not accurate, reliable, and complete. It is up to the Members of this House to determine the appropriate sanction for the violations committed by Mr. Gingrich. This is not a vote on whether Mr. Gingrich should remain Speaker of the House. Members need time to become familiar with the factual record presented in the special counsel's report and to consider the seriousness of these violations that have just come to light during the past 4 days. In the days and weeks to come Mr. Gingrich and each Member of this House should consider how these charges bear on the question of the speakership. The resolution before us, the House, today is a sanction for Representative Gingrich for the ethics violations that he has committed. According to the House rules a reprimand is appropriate for serious violations of ethical standards. Sadly, Mr. Gingrich's conduct requires us to confirm that this case involves infractions of at least that level of seriousness. He has provided inaccurate and misleading information to the Committee on Standards of Official Conduct and there is significant evidence that he intended to do so. The recent history of congressional ethics sanctions indicate the House has imposed the sanction of reprimand when a Member has been found knowingly to have given false statements. But the earlier cases did not involve [[Page H174]] giving false statements to the Committee on Standards of Official Conduct itself in response to an inquiry from the Committee on Standards of Official Conduct, and Mr. Gingrich's case involves more than just giving false information to the committee. Mr. Gingrich has also admitted to directing a political empire that made extensive use of tax exempt entities for political fundraising purposes. As a result of all these actions, the reputation of the House of Representatives has been damaged and tax dollars have been lost. But there is still more. This is not the first time Mr. Gingrich has had ethical problems that drew critical action by the Committee on Standards of Official Conduct. On other occasions he has been sighted by this committee for violating House rules. The American public has not forgotten the lucrative book advance contract that the incoming Speaker of the House was forced to renounce under public pressure. Our committee concluded in regards to that book deal: ``At a minimum this creates the impression of exploiting one's office for personal gain. Such perception is especially troubling when it pertains to the Office of the Speaker of the House, a constitutional office requiring the highest standards of ethical behavior.'' Because of all those factors, these violations require a penalty more serious than a reprimand. Considering all these matters, I urge this House to adopt the resolution before us. The resolution incorporates the recommendation of the special counsel, the investigative subcommittee, the full Committee on Standards of Official, and Mr. Gingrich. The sanction we recommend is somewhere between a reprimand and a censure. It provides a reprimand plus a required $300,000 contribution by Mr. Gingrich to the cost of these proceedings. In my view this payment should come from his personal resources because it is a personal responsibility. Mr. Speaker, with today's vote I will have completed my service on the Committee on Standards of Official Conduct. Over the past 6 years and 1 month I have participated in many ethics matters. Among the issues that we had before the committee during my tenure has been not only this matter but the House bank and post office matters, both of which exposed many Members of this House, including its leadership, to embarrassment either for misdeeds or for mismanagement. I must say, however, that the matter before us today has brought a threat to the Committee on Standards of Official Conduct that far exceeded anything I have seen. The committee was subject to repeated attempts to obstruct its work and improperly interfere with its investigation. As I leave the Committee on Standards of Official Conduct, I hope that the incoming Members will find the process has survived and will continue to serve this House and the people of our Nation. Mr. Speaker, I reserve the balance of my time. {time} 1230 Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico [Mr. Schiff], a distinguished member of the subcommittee. Mr. SCHIFF. Mr. Speaker, I first want to join in the compliments to the other committee members and to our staffs and special counsel because, even though we had many disagreements along the way, and obviously still have some disagreements, I think we made the best possible effort to get us here today. I agree with the gentleman from Maryland [Mr. Cardin] this is a sad day. It is a sad day when any Member is here because of a recommendation of the Committee on Standards of Official Conduct. Last time I was here it was because a Democratic colleague was here on our recommendations. I was not happier then because it was a Democrat and not a Republican then. I think it is a sad day when it is a Member of the House. Nevertheless, I think the House can be proud of the fact there is accountability for its Members. I wish such accountability could be found from every area of our government. Second, I am sorry that in the rendition of facts I just heard, there were certain partisan conclusions that eliminated other conclusions which I guess could be stated from the other side. For example, it was said that there was an attempt made by our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson] who got us here, when many people expected along the way we could never get here; but through her leadership we are here today. There was the accusation that our chairwoman deliberately tried to scuttle the information getting to the Members in order to mitigate any effect on Congressman Gingrich. Quite the contrary. Our chairwoman and the rest of us had an agreed to up to 5 days of public hearings. Those were changed only when our Democratic colleagues on the Committee on Standards of Official Conduct held a press conference in which they said the most important product we could produce would be a written report that Members could consider before they vote. That left our Chair, in my judgment, no alternative but to change directions and to postpone the public hearing, which we ultimately did have anyway, in favor of trying to produce the written report by this date which we have now accomplished. There has been no mention of the fact that Members on the Republican side particularly were subject to enormous political attack in their districts. If I were still a district attorney, a career I had before I got to Congress, I would have certain leaders arrested for attempted jury tampering, because I think that is what they were doing. They were trying to use political pressure to get a result in what is essentially a judicial type of deliberative body. That was their intent. That was one of the most unethical things I have seen since becoming a member of the Committee on Standards of Official Conduct. What I want to emphasize now is why we are here today. I want to point out that the statement made, that there have been many new facts revealed in the last several days, in my judgment is not correct. We are here because of a statement of alleged violation found by the ethics subcommittee and released publicly on December 21, 1996, to which the Speaker acknowledged. And those violations have not changed. What has changed is the reporting of those violations in the news media over the last several days. What I have seen in the news media in various forms is some significant misstatements of what the violations are. But I have to add that I do not believe that that was in this case the fault of the news media. It is their job to be critical of us, and it is our responsibility to respond if we think it is appropriate. But I want to make it very clear what I think happened was an unfortunate matter of timing, that on Friday of last week, our hearing did not begin and our written report was not available until 3 o'clock on Friday afternoon. Some reporters have told me there were not enough copies to go around. So they are trying to form deadlines for their programs or for their newspapers with a report that is over 200 pages long. I think it is entirely understandable that some errors were made at first. Nevertheless, I think some errors were made. They were made because Mr. Cole's report attempted to be a soup-to-nuts, beginning to end explanation of what we did in the ethics subcommittee to get to where we are today. In going through step by step, he quite properly, in my judgment, said we had this choice to make and we had this fact and we handled it as follows, and so forth. But what I have seen as reported as a final conclusion, certain excerpts from that report were intermediary at best. The final conclusion of the subcommittee did not change. That final conclusion is, first, that Mr. Gingrich should have sought competent legal, professional tax advice before he began his procedures that involved the use of a tax-exempt foundation, which under the law is called a 501(c)(3) organization. Second, that materials were sent to the Committee on Standards of Official Conduct in response to questions from the Committee on Standards of Official Conduct that the Speaker should have known were inaccurate. That is the final finding, if you will, of the subcommittee. The report goes through all of the events, and I heard the gentleman from [[Page H175]] Maryland [Mr. Cardin] make reference to a number of the events. But the findings did not change. All of the events would include things like we on the subcommittee interviewed everybody we could find who had anything to do with the preparation of those two letters that were inaccurate. What we found, in my judgment, if it were not so serious, and I recognize how serious it is, it would really be called a comedy of errors. What happened was the letters were prepared in Mr. Gingrich's law firm that sent the letters first to a staff member in Mr. Gingrich's office. The law firm thought that the staff member would correct any factual misstatements. The staff member thought the law firm had already checked out the facts. So nobody checked out the facts to see if they were accurate. But the most important thing is that Mr. Gingrich was never involved in the preparation of those letters at any point until the very end where he acknowledges he signed them, he should have read more carefully, and he is responsible for that before this House of Representatives. I would point out that in a letter of October 1996 that he prepared himself with his staff, he gave us entirely accurate information about the matters that are under consideration here. I think it is pretty obvious you do not give accurate information in October and then you can deliberately prepare information the following September and March that nobody would know the difference of. Based upon the allegation, the violations we found, the Committee on Standards of Official Conduct on a 7-to-1 vote, full committee now, entire committee, recommended the following penalty: It recommended a reprimand and a cost assessment of $300,000. In some meetings earlier with members, I have heard some members say that that is unique and they are concerned about that penalty being unique because, although we have imposed cost assessments before, we have never done so in the past for the cost of the investigation. That is basically what we did. We set $300,000 as the estimated cost of that portion of the investigation that dealt with clearing up the misstatements that we received, which may have begun to be prepared in Mr. Gingrich's law firm, but for which he is responsible as a Member of the House. I want to tell all Members that they do not need, in my judgment, to be concerned about the precedent value, because I believe everyone concerned understood that this is a unique penalty because the Speaker of the House is a unique official in our institution. In fact, that is the reason we decided to, on the subcommittee's part, propose a unique penalty, and we got word, I have to say ``got word,'' because we never met with the Speaker to discuss the penalty. All of the negotiations were by our special counsel on our behalf and the Speaker's attorney, Mr. Evans, on his behalf. So we got reports on it. But the report we got back was that Speaker Newt Gingrich agrees that because he holds a unique position in the House he should receive a unique penalty, so there is no doubt even the Speaker of the House is not above the rules. I would hastily add, however, two things, and conclude with this. The first is that I think there is room for this to be made a standing procedure in certain cases. For example, I saw what in my judgment were a number of frivolous complaints filed with the Committee on Standards of Official Conduct which had no other purpose than to be leaked to the press and create bad publicity for whomever was the target of those complaints. It seems to me that the precedent we have established here should apply to those who are found by the committee to have filed frivolous complaints. Finally, on how the funds should be paid if the House adopts the recommended penalty, we were deliberately silent on that. My colleague, the gentleman from Maryland [Mr. Cardin], is most certainly entitled to his opinion, but the subcommittee and the committee made no determination. Insofar as I have studied the precedents on financial remuneration to the Government, we have never established as a matter of law how these funds can be paid. Mr. Gingrich, if he does get this as a final penalty, understands all the ramifications, I am certain he does not need me to explain them to him or, for that matter, any of my colleagues on the other side. But the fact is the committee was silent deliberately on how any such funds should be paid. It is my understanding there are at least some precedents for campaign funds, for example, being used to reimburse the Government, and certainly we all know that the Chief Executive of the United States has a legal defense fund in which he raises money. So I am just saying that whatever the options are to Newt Gingrich as a Member of the House, they have not been precluded legally by the committee, and in my judgment they should not be. With that, Mr. Speaker, I just want to again commend our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson], my fellow members of the committee, and say I believe we have come up with an appropriate penalty, which some think is too harsh, some think is too lenient. That tells me we are about where we ought to be. I hope the House will adopt it. announcement by the speaker pro tempore The SPEAKER pro tempore (Mr. Bereuter). The Chair will request that visitors in the gallery, in coming and going, refrain from any audible disruption of the proceedings. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume briefly to comment on some of the points raised by the gentleman from New Mexico [Mr. Schiff]. Mr. Speaker, the gentleman from New Mexico [Mr. Schiff] is correct, we are in agreement on the recommendation. We put different emphasis on some of the facts. Mr. Gingrich clearly, in my view, had ample opportunity to know about the statements in his letters. He did indicate he hired an attorney in order to draft the two letters. Let me just read, if I might, from the transcripts as to the exchange between Mr. Cole and Mr. Baran, Mr. Baran being Mr. Gingrich's attorney. Mr. Cole: ``Would you have made sure that he had read it and approved it, or just the fact he read it is all you would have been interested in,'' referring to Mr. Gingrich? Mr. Baran said, ``No, I would have wanted him to be comfortable with this on many levels.'' Mr. Cole: ``Were you satisfied he was comfortable with it prior to filing it with the committee?'' Mr. Baran: ``Yes.'' Let me also point out that after this, after we pointed out to Mr. Gingrich the inconsistency in the letters, Mr. Gingrich wrote another letter back to the committee. Clearly he had time to review the inconsistencies by that time. The October 31, 1996, letter, in that letter he still maintains his innocence on inconsistencies in the letter, even though the letters were clearly inaccurate, he knew they were inaccurate, and he had a chance to reread the letters and correct the record. Mr. Speaker, I yield 11\1/2\ minutes to the gentlewoman from California [Ms. Pelosi], my colleague on the Committee on Standards of Official Conduct, who was on the investigative subcommittee and who has made a great contribution to this process and has been an extraordinary member of our Committee on Standards of Official Conduct. Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time and for his leadership and guidance throughout this process. Clearly without his involvement, we would not be here today with a bipartisan recommendation for a sanction for the Speaker of the House. Mr. Speaker, as a member of the investigative subcommittee, I would like to take this opportunity to publicly thank the gentleman from Florida, Porter Goss, our Chair of the investigative subcommittee, again acknowledge the gentleman from Maryland, Mr. Cardin, as ranking member for his service there, as well as to say how much I learned from the gentleman from new Mexico, Mr. Schiff, in the course of our service there. Clearly, from the debate so far, you can see that we had many unresolved difficult issues to deal with, and under the leadership of the gentleman from Florida [Mr. Goss], we went through that. I want to also commend our special counsel, James Cole, for making us stick to the facts, the law, and the ethics rules as those elements that were [[Page H176]] the only matters relevant to our decisions, and many thanks to Kevin Wolf and Virginia Johnson for their assistance and professionalism. I heard my colleague, the gentleman from New Mexico [Mr. Schiff], say in his earlier days as a prosecutor he might entertain thoughts of bringing jury tampering charges. If he decides to do that, I hope that the gentleman will include in his package the dirty tricks memo that is now in the public record that is a written document about attempts to undermine the ethics process directly by the Republican House leadership. Let me say though we did produce a bipartisan product. I hope our work will serve as a foundation for a bipartisan solution to be agreed to today. Today, others have said it, is a sad day. I think it is a tragic day. Here in the House of Representatives we will sanction a sitting Speaker for the first time. It is an unwelcome task to pass judgment on any of our colleagues, but we have a responsibility to uphold ethical standards called for in the rules and expected by the American people. I associate myself with the gentleman from Maryland, Mr. Cardin's, remarks about the process. We should not have to choose to make the American people aware of either the hearing, a full hearing, or the report. But since we have a report, I urge everyone to read it. I think it is very instructive and gives lie to many of the mischaracterizations that have been made about the violations that the committee charged Mr. Gingrich with and those which he admitted to. {time} 1245 The last few weeks have been dreadful. But we have an opportunity to say today to the American people that when we come to Washington, we do not check our integrity at the beltway, and that power is not a license to ignore ethical standards. We also have an opportunity to tell the American people that sanity can reign in the Congress by demonstrating our ability to agree and disagree in a respectful way. The American people gave us the privilege to serve; they expect us not only to make the laws and to obey the laws, but also to live up to a high ethical standard. So today we are here to address the failure of Speaker Gingrich with regard to the laws governing charitable contributions and GOPAC, and his failure to respond accurately and reliably to the Committee on Standards of Official Conduct. I would like to just take a moment to refer to the book, because as I asked people to read it, I want to point out the statement of alleged violations which was originally set forth by the special counsel. This is on page 155. Based on the information described above, the special counsel proposed a statement of alleged violations to the subcommittee on December 12. The statement of alleged violations contained 3 counts: Mr. Gingrich's activities on behalf of ALOF in regard to AOW and ACTV, and the activities of others in that regard with his knowledge and approval, constituted a violation of ALOF's status under section 501(c)(3). Second, Mr. Gingrich's activities on behalf of Kennesaw State College Foundation, the Progress and Freedom Foundation, and Reinhardt College in regard to the Renewing American Civilization course, and other activities in that regard, with his knowledge and approval, constituted a violation of those organizations' status under 501(c)(3). And, third, Mr. Gingrich had provided information to the committee, directly or through counsel, that was material to matters under consideration by the committee, which Mr. Gingrich knew or should have known was inaccurate, incomplete, and unreliable. These were not the alleged violations that were passed out at the committee because we did not come to agreement on them, but they are the original allegations by the special counsel. I think everyone is well aware that we have charged the Speaker in our statement of alleged violations that he did not ensure that the law was complied to in his activities, and that he gave information to the committee that was not accurate. Think how much easier it would be if we could all use the 501(c)(3), not consult a lawyer, and build our political agenda around tax deductible considerations. The American people in their generosity give the opportunity to charitable institutions to do charitable work. That does not include subsidizing our political activity. At the grassroots level we have always had to comply with the law in relationship to political activity and 501(c)(3). If we have to do it at the grassroots level, so should the Speaker of the House. As the counsel mentions in his statement, some members of the committee and the special counsel were in favor, as I mentioned before, of the original proposal. After much deliberation, all four of us could agree on a statement of alleged violations that despite, in quotes, ``Despite significant and substantial warnings, Mr. Gingrich did not seek the legal advice to ensure that his conduct conformed with the provisions of 501(c)(3),'' with the law. Why did he not? Why did he not? Either because Speaker Gingrich knew what the answer would be no, from an attorney, ``No, you cannot do this,'' or he was reckless in conforming with the law. The committee decided that regardless of the resolution of the 501(c)(3) tax question, Speaker Gingrich's conduct was improper, did not reflect credibly on the House, and was deserving of sanction, serious sanction, and Speaker Gingrich agreed. The next issue in my view is the most serious, that of not dealing honestly with the Committee on Standards of Official Conduct. It is interesting to me that Speaker Gingrich has repeatedly stated that ethics are important to him. Why, then, did he say that he was too busy to respond to the committee accurately? Again, either he was trying to get complaints dismissed and an accurate answer would not achieve that end, or that ethics were not important enough for him to take the necessary time. As our colleague, Mr. Cardin, has pointed out, Mr. Gingrich gave one answer in the earlier letter in order to respond to a complaint regarding use of official resources for his course, so he said GOPAC did it. Then when we asked the question if GOPAC and 501(c)(3) cannot be that cozy, then he said GOPAC did not do it; and then in the third communication to the committee, he stood by his previous letters. The gentleman from New Mexico [Mr. Schiff] prefers to call it a comedy of errors. I think it is violating our trust that we have among Members. Every day that we speak to each other in this House, we refer to each other as the gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland. We trust each other that we will deal truthfully with each other. Unfortunately, in terms of Speaker Gingrich's dealings with the committee on a number of occasions, and in his violation of the agreement under which we would go forward in bringing this issue to a conclusion, Mr. Gingrich's statements lead me to one conclusion: that Mr. Gingrich, in his dealings with the committee, is not to be believed. I conclude also that Mr. Gingrich gave these different answers not because it was a comedy of errors, but because he thought he would get away with it. I was particularly concerned about the ``too busy'' defense. We cannot say that ethics is important to us and then say we are too busy to answer the central question asked by the Committee on Standards of Official Conduct. Maintaining a high ethical standard is a decision, and it requires making it a priority. It is not just something we do when we are not too busy. We expect the Speaker of the House to be busy. We also expect the Speaker of the House to be ethical. Speaker Gingrich himself has stated that the Speaker must be held to a higher standard. I do not put any additional burden on the Speaker. I think all Members of Congress should be held to a higher ethical standard. When new Members arrive in Congress, one of the first documents they receive is the House Ethics Manual. And one of the first responsibilities impressed upon all of us is to uphold a high ethical standard. Clearly, Speaker Gingrich did not live up to his own professed ethical standards of the House, and, indeed, to the ethical standards in this book. I urge my colleagues to read this report. I think when you do, you will see [[Page H177]] that it gives lie to the mis characterizations of our Republican colleagues that the violations were nothing, or that they were like trespassing or double parking. Either our colleagues were ill-informed, and that is what I choose to believe, or they have a cavalier regard for the tragedy of the Speaker admitting bringing discredit to the House of Representatives which he wants to lead. Now we come to the penalty. As you know, we have a financial penalty because we believe that the inaccurate statements that the Speaker said to us prolonged the process. There are other reasons why there is a financial penalty, but that was one of them. And the subcommittee concluded, and I quote, ``that because these inaccurate statements were provided to the committee, this matter was not resolved as expeditiously as it could have been. This caused a controversy over the matter to arise and last for a substantial period of time, it disrupted the operations of the House, and it cost the House a substantial amount of money in order to determine the facts.'' So I urge our colleagues, in light of all of that, to support the bipartisan recommendation of the committee. The $300,000 penalty I believe speaks eloquently to the American people, who may not know the weight of one of our sanctions or another, but they understand $300,000. And I hope that this money will not come from the Speaker's political campaign funds, because I think that will increase the cynicism of the American people about what goes on here in Washington. Whether the Speaker remains Speaker is up to the Republicans. He is technically eligible. I hope you will make a judgment as to whether he is ethically fit. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida [Mr. Goss), the chairman of the subcommittee, and I want to recognize the outstanding job that he did chairing that subcommittee, as I recognize the remarkable service of the members of that subcommittee. (Mr. GOSS asked and was given permission to revise and extend his remarks.) Mr. GOSS. Mr. Speaker, I thank the gentlewoman from Connecticut, the distinguished chair of our committee, for yielding me this time. She deserves our sincere gratitude for all she has endured, for her persistence, for her determination to bring this to a successful conclusion, and here we are today. It was certainly an unenviable and, I know, thankless task. Today we have a conclusion. Today the House takes the final step in what has been a most difficult process, I think we all would agree. It is not just for those intimately involved in the day-to-day twists and turns in this tortuous case, but also for the entire House. On Friday the full Committee on Standards of Official Conduct approved a recommendation which is today before this House, for an official reprimand and a $300,000 cost assessment to Mr. Gingrich as sanction for his violation of House rules and as partial reimbursement for the costs of the inquiry that ensued. This is unquestionably a serious sanction, but one that is also fair and appropriate, in my view, as evidenced by the fact that indeed Mr. Gingrich himself has agreed to it. The Committee on Standards of Official Conduct, functioning independently of leadership on both sides of the aisle, is supposed to find the truth through an investigative process. It is not designed to protect errant Members, nor is it designed to permit partisan zealots to destroy Members or to score political points. In this case, the committee's members were subject to frequent unfair and inaccurate partisan political attack. That is a matter of fact. Outsiders attempted to influence our activities, our deliberations, our schedule and our conclusions. That is truly a shame. It has caused harm, not just to the Members involved, but it has also brought discredit to this institution, in my view. Friday, I urged the leadership on both sides of the aisle to tone down the rhetoric, cut the nonsense, and get back to work in repairing the damage that has come to this House. I repeat that exhortation today. With regard to the matter at hand, I am very satisfied with the work done by our investigative subcommittee, whose recommendation was adopted by the full committee and is the recommendation all Members will consider today. The four of us, working with the extraordinarily talented special counsel, Jim Cole, functioned in a spirit of bipartisan cooperation that did actually grow as we went along in the case. I say we started with different perspectives, but we started with open minds, and I am grateful for the very fine service, the unbelievable commitment of time of the members, their cooperation. I take my hat off to the gentleman from Maryland [Mr. Cardin], the gentleman from New Mexico [Mr. Schiff], and the gentlewoman from California [Ms. Pelosi], all of whom in my view bring great credit to this institution. Contrary to what has been reported, the statement of alleged violations that our subcommittee developed and passed and which forms the basis for the sanctioned recommendation did not, I repeat not, find that Mr. Gingrich violated or did not violate tax law in his relationship with 501(c)(3) tax exempt organizations. And contrary to media reports, that statement of alleged violation of December 21st also did not charge Mr. Gingrich with intentionally deceiving our committee with his correspondence in this case. Nonetheless, I found it extraordinarily imprudent of Mr. Gingrich not to seek and follow a less aggressive course of action in tax areas he knew to be sensitive and controversial. And even more troubling, I found the fact that the committee was given inaccurate, unreliable, and incomplete information to be a very serious failure on his part. {time} 1300 Now, it is certainly true that we had more than enough facts and extenuating circumstances to consider. We all know a Member of Congress wears many hats, for our official lives, our campaign lives, our private lives, our business lives or whatever, and knowledge of how careful we must be in wearing those hats is fundamental to our job. We all have an extra obligation to be sure our activities are appropriate, no matter which hat we are wearing. That is an obligation that each of us signs up for when we run to serve in this institution. That is why the serious sanction we recommend is appropriate, in my view. The gentleman from Georgia [Mr. Gingrich] has recognized his lapses and the problems they have caused for this House. He has apologized, forthrightly and sincerely. He has also accepted the unique sanction we proposed, one that includes a clear signal to all Members about the importance of providing accurate and grounded information to the Select Committee on Ethics, whether in response to a complaint or in filing a complaint. I must point out to Members that our mission in the preliminary investigation was to find and examine the dark clouds. That is what investigations do. Mr. Cole is very good at that. He is a brilliant prosecutor. In his report he presented well those dark clouds. He did not, however, present all of the other clouds we looked at that turned out to be not quite so dark. So I found that his report would be well supplemented by reading the report of the Speaker's attorneys for balance, as well. I refer colleagues and interested parties to both reports to get the full picture. In the end, I agreed with my subcommittee colleagues that Mr. Gingrich's absence of diligence subjects him legitimately to charges of conduct reckless enough to constitute a violation of House rules. I sincerely hope with today's voting we can put this matter to rest. I urge this House to adopt the recommendation of the Select Committee on Ethics and remember, the penalty is aimed at findings in response to the specific work of our subcommittee, no matter what feelings any particular Member may personally have about Mr. Gingrich. Some have said this is a sad day. Indeed it is, whenever we have this type of a situation. I will also say it is a day of victory. We have proved to the American people that no matter how rough the process is, we can police ourselves. We do know right from wrong in this institution. We can take the necessary steps. [[Page H178]] Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania [Mr. Borski], a very valuable member of the Select Committee on Ethics, who has done yeoman's service for the House and for the Congress on that committee. (Mr. BORSKI asked and was given permission to revise and extend his remarks.) Mr. BORSKI. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I want to start by commending the members of the investigative subcommittee, the gentleman from Maryland, Mr. Ben Cardin, the gentlewoman from California, Ms. Nancy Pelosi, the chairman, the gentleman from Florida, Mr. Porter Goss, and, of course, the gentleman from New Mexico, Mr. Schiff, for the extraordinary job they have performed for this institution. They are all people of enormously high integrity, and they have done this committee and this House very proud. I also want to commend the special counsel, Mr. Cole, who under the most difficult and trying of circumstances came through with a report that, again, I would urge all Members of the House to read; but again, under the most difficult and trying of circumstances, he performed an heroic deed for this House. Mr. Speaker, let me state the obvious. No Member seeks or enjoys a position on the Ethics Committee, but the proper functioning of that committee is essential to the integrity of the House. It is a matter of personal and institutional honor that each of us has agreed to serve. I remember distinctly when I received the phone call that any one of us never wants to get; a leader of my party, Speaker Tom Foley, asked me to serve on the Ethics Committee. I remember distinctly saying to Mr. Foley that I was reminded of the fellow who was tarred and feathered, put on a rail and run out of town, whose retort was that if it weren't for the honor, he would rather walk. I am on this committee, but it is as a reluctant member. On more than one occasion I have offered to step down when the removal of a member was necessary to maintain the political balance of the committee. But Mr. Speaker, I feel very strongly that it is our constitutional duty, and it was mine, to respond positively to Tom Foley's request. It was, again, certainly not a position that I wanted. I hope to concentrate my efforts and energies on the work of the Committee on Transportation and Infrastructure, probably the most bipartisan committee in this House of Representatives, and where that bipartisan atmosphere has enabled us to turn out very important pieces of legislation. It is always a grueling and distasteful task to investigate a fellow Member--all the more so in the case of the Speaker. Some have suggested that partisan attempts were made to derail the special counsel's efforts and render him less effective. I might say that I agree. The subcommittee released its statement of alleged violation on the Saturday before Christmas. The counsel's report was released on Friday afternoon, before inaugural weekend, with the vote firmly scheduled for this afternoon. Despite a prior agreement which allowed for a full week of public hearings, we were left with only a single afternoon's session. Mr. Cole, along with members of the full committee and subcommittee were troubled by the time line insisted upon by Republican leadership. The special counsel insisted with consistency that he would be hard pressed to complete a report detailing the 2-year investigation before February 4. Yet, Mr. Cole was denied the time he deemed necessary. Despite these obstacles, however, the special counsel did release a report on Friday afternoon which included the subcommittee's recommended sanction of a reprimand and fine. In this report, Mr. Cole, along with Ms. Roady, the subcommittee's tax expert, and two members of the committee conclude that Mr. Gingrich has violated the tax code in conjunction with 501(c)(3). However, the Committee agreed that the focus of the investigation should be on the conduct of the Member rather than the resolution of issues of tax law which would best be left to the IRS. What the report does say about the 501(c)(3), is the following: ``* * * the subcommittee was faced with a disturbing choice. Either Mr. Gingrich did not seek legal advice because he was aware that it would not have permitted him to use a 501(c)(3) organization for his projects, or he was reckless in not taking care that, as a Member of Congress, he made sure that his conduct conformed with the law in an area where he had ample warning that his intended course was fraught with legal peril. The subcommittee decided that regardless of the resolution of the 501(c)(3) tax question, Mr. Gingrich's conduct in this regard was improper, did not reflect creditably on the House and was deserving of sanction.'' With respect to the letters containing inaccurate information that Mr. Gingrich provided to the committee, the report goes on to say: ``The special counsel suggested that a good argument could be made, based on the record, that Mr. Gingrich did act intentionally, however it would be difficult to establish that with a high degree of certainty * * * In determining what the appropriate sanction should be in this matter, the subcommittee and the special counsel considered the seriousness of the conduct, the level of care exercised by Mr. Gingrich, the disruption caused to the House by the conduct, the cost to the House in having to pay for an extensive investigation, and the repetitive nature of the conduct.'' ``The subcommittee was faced with troubling choices in each of the areas covered by the statement of alleged violation. Either Mr. Gingrich's conduct in regard to the 501(c)(3) organizations and the letters he submitted to the committee was intentional or it was reckless. Neither choice reflects creditably on the House. * * *'' Under the rules of the committee, a reprimand is the appropriate sanction for a serious violation of House Rules and a censure is appropriate for a more serious violation of House rules. This is the extent to which guidelines are in place for Members to make a determination of sanction. According to the special counsel, it was the opinion of the Ethics Subcommittee, after two years of investigation and inquiry, that this matter fell somewhere in between. As such, both the subcommittee and the special counsel recommended that the appropriate sanction should be a reprimand and a payment reimbursing the House for some of the costs of the investigation in the amount of $300,000. Mr. Gingrich has agreed that this is the appropriate sanction, as has the full Ethics Committee. Mr. Speaker, I say to my colleagues, particularly my colleagues on the Democratic side of the aisle, this is not about who should be the Speaker of the House. Democrats have no say in who should be the Speaker of the House. That is up to the majority party. This is not about process. There were parts of this process that I find extremely disturbing, and parts that I think need to be dealt with further at an appropriate time. This is not that time. This is not about whether the existing tax code in question is arcane. I asked the special counsel, Mr. Cole, at our Friday afternoon public hearing whether the law was in fact arcane, and Mr. Cole responded in the strongest possible language that the law was not arcane. In fact, it is a headline issue that politics and tax-exempt organizations should not mix. Even Mr. Gingrich's tax attorney agreed with that statement. I also asked the special counsel to respond to the spin that we are all familiar with, and it goes like this: ``I saw the course, I watched the tape. There is nothing political about them.'' Mr. Cole's response was that the issue in question was not so much the content of the course, but, rather, the intent and the way in which it was distributed. The report states, ``Mr. Gingrich applied the ideas of the course to partisan political purposes.'' Mr. Speaker, this is not about determining the innocence or the guilt of Mr. Gingrich. He has already admitted that guilt, that he has brought discredit to this House. This is about the ability of the House of Representatives, under the most trying of circumstances, to judge one of its own Members, an extremely controversial Member, one who has led his party to the majority. It is our duty to determine the appropriate sanction to that Member. The subcommittee, aided by the special counsel, has conducted an investigation and made its recommendation to the full committee, which in turn has made that recommendation to the full House. Those are the processes we have adopted and those are the processes we have followed. We are giving every Member, independently, the opportunity to put aside partisan politics and follow the recommendation offered by the special counsel, the subcommittee, and the full committee upon completion of a 2-year inquiry. It is right and it is just. We were asked as Members of Congress to put aside our partisan beliefs and serve on this committee out of a sense of duty and honor. [[Page H179]] Now, we are asking you to honor our recommendations with dignity. I ask my colleagues to honor the work of the Ethics Committee and to vote yes for this very strict sanction. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. Smith]. (Mr. SMITH of Texas asked and was given permission to revise and extend his remarks.) Mr. SMITH of Texas. Mr. Speaker, I thank the chair of the Ethics Committee for yielding time to me. Let me say at the outset that you can clearly disagree and have great respect for your colleagues on the Ethics Committee, as I do, and still reach different conclusions, as I do. My conclusion is that the penalty that has been assessed by the Ethics Committee is way too severe whe

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IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH
(House of Representatives - January 21, 1997)

Text of this article available as: TXT PDF [Pages H171-H235] IN THE MATTER OF REPRESENTATIVE NEWT GINGRICH Mrs. JOHNSON of Connecticut. Mr. Speaker, pursuant to rule IX and by direction of the Select Committee on Ethics, I send to the desk a privileged resolution (H. Res. 31) in the matter of Representative Newt Gingrich, and ask for its immediate consideration. The Clerk read the resolution, as follows: House Resolution 31 In the Matter of Representative Newt Gingrich Resolved, That the House adopt the report of the Select Committee on Ethics dated January 17, 1997, In the Matter of Representative Newt Gingrich. The SPEAKER pro tempore. The resolution constitutes a question of privilege and may be called up at any time. Announcement by the Speaker Pro Tempore The SPEAKER pro tempore. Before we proceed, the Chair will have a statement about the decorum expected of the Members. The Chair has often reiterated that Members should refrain from references in debate to the conduct of other Members where such conduct is not the question actually pending before the House, either by way of a report from the Committee on Standards of Official Conduct or by way of another question of the privileges of the House. This principle is documented on pages 168 and 526 of the House Rules and Manual and reflects the consistent rulings of the Chair in this and in prior Congresses. It derives its force primarily from clause 1 of rule XIV which broadly prohibits engaging in personality in debate. It has been part of the rules of the House since 1789. On the other hand, the calling up of a resolution reported by the Committee on Standards of Official Conduct, or the offering of a resolution as a similar question of the privileges of the House, embarks the House on consideration of a proposition that admits references in debate to a Member's conduct. Disciplinary matters by their very nature involve personalities. Still, this exception to the general rule against engaging in personality--admitting references to a Member's conduct when that conduct is the very question under consideration by the House--is closely limited. This point was well stated on July 31, 1979, as follows: While a wide range of discussion is permitted during debate on a disciplinary resolution, clause 1 of rule XIV still prohibits the use of language which is personally abusive. This is recorded in the Deschler-Brown Procedure in the House of Representatives in chapter 12, at section 2.11. On the question now pending before the House, the resolution offered by the gentlewoman from Connecticut, Members should confine their remarks in debate to the merits of that precise [[Page H172]] question. Members should refrain from remarks that constitute personalities with respect to members of the Committee on Standards of Official Conduct or the Select Committee on Ethics or with respect to other sitting Members whose conduct is not the subject of the pending report. Finally, Members should exercise care to maintain an atmosphere of mutual respect. On January 27, 1909, the House adopted a report that stated the following: It is the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members. This is recorded in Cannon's Precedents in volume 8 at section 2497. The report adopted on that occasion responded to improper references in debate to the President, but it articulated a principle that occupants of the Chair over many Congresses have held equally applicable to Members' remarks toward each other. The Chair asks and expects the cooperation of all Members in maintaining a level of decorum that properly dignifies the proceedings of the House. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 1 hour. Mrs. JOHNSON of Connecticut. Mr. Speaker, I ask unanimous consent that debate on the resolution be extended for a half an hour. The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Connecticut? There was no objection. The SPEAKER pro tempore. The gentlewoman from Connecticut [Mrs. Johnson] is recognized for 90 minutes. Mrs. JOHNSON of Connecticut. Mr. Speaker, for purposes of debate only, I yield 45 minutes to the gentleman from Maryland [Mr. Cardin], pending which I yield myself such time as I may consume. Mr. Speaker, I rise as chairman of the Select Committee on Ethics to lay before you the committee's bipartisan recommendation for final action on the matter of Representative Newt Gingrich. The committee recommends that Representative Gingrich be reprimanded and reimburse the House $300,000. The penalty is tough and unprecedented. It is also appropriate. No one is above the rules of the House of Representatives. This matter centered on two key questions: whether the Speaker violated Federal tax law and whether he intentionally filed incorrect information with the Ethics Committee. While the committee investigated these questions extensively, its findings were inconclusive. Rather, the committee found that Representative Gingrich brought discredit to the House by failing to get appropriate legal advice to ensure that his actions would be in compliance with tax law and to oversee the development of his letters to the committee to ensure they were accurate in every respect. Each Member of Congress, especially those in positions of leadership, shoulders the responsibility of avoiding even the appearance of impropriety. Representative Gingrich failed to exercise the discipline and caution of his office and so is subject to penalty today. As I have said, the penalty recommended by the committee is tough and unprecedented. In past cases of this nature, the House has reprimanded a Member only where the Member was found to have intentionally made false statements to the Ethics Committee. In this case, the committee recommended a reprimand of Representative Gingrich even though the statement of alleged violations did not assert that he intentionally misled the committee. Likewise in past cases where the committee imposed monetary sanctions on a Member, the committee found that the Member had been personally enriched by the misconduct. The committee made no such finding against Representative Gingrich, yet recommends that a cost reimbursement of $300,000 be paid to the House by him. The report before us contains several hundred pages of exhibits and a detailed analysis of the subcommittee's findings. The allegations and the key facts supporting them were laid out by the special counsel during a public hearing on January 17. The committee's recommendations before you today end 2 long years of work. Throughout this process we never lost sight of our key goals: full and complete disclosure of the facts and a bipartisan recommendation. We accomplished both. Even though it would have been easy for Republicans or Democrats to walk away from the process at many stages, we did not, because we believed in this institution and in the ethics process. The investigative subcommittee was ably chaired by Representative Porter Goss. Representatives Ben Cardin, Steve Schiff, and Nancy Pelosi, along with Mr. Goss deserve the gratitude of this House for the extraordinary workload they shouldered and for their dedication to pursuing each issue until they reached consensus. Together with Mr. James Cole, the special counsel, they laid the groundwork for the bipartisan conclusion of this matter. I want to thank Mr. Cardin, the current ranking member, as well, for working with me through difficult times to enable the bipartisan Ethics Committee process to succeed. In the last 2 years the committee was forced to conduct its work against the backdrop of harsh political warfare. It is the first time ever that members of the Ethics Committee have been the target of coordinated partisan assaults in their districts. Coordinated political pressure on members of the Ethics Committee by other Members is not only destructive of the ethics oversight process but is beneath the dignity of this great institution and those who serve here. {time} 1215 Despite the pressures, we bring you today a bipartisan recommendation resolving the most complex charge against Representative Newt Gingrich. I ask for both my colleagues' rejection of the partisanship and animosity that has so deeply permeated the work of the House and for their support of the committee's resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. announcement by the speaker pro tempore The SPEAKER pro tempore. The gentleman will suspend. The Chair notes a disturbance in the visitors' gallery in contravention of the laws and the rules of the House. The Doorkeepers and police, the Chair believes, have already acted, but shall act to remove from the gallery those persons participating in a disturbance. If there is an outburst from the visitors' gallery, the Chair will make this statement but will insist on order. The Chair recognizes the gentleman from Maryland [Mr. Cardin]. Mr. CARDIN. Mr. Speaker, as I have said, this is a sad moment for the House of Representatives. One of our Members has admitted to a serious violation of the House rules. This process and this admission affects not only that Member but each Member who serves in this body. While I believe that is true of any ethics proceeding, it is particularly true and particularly troublesome in this case because the offending Member is the Speaker of the House, the third ranking official in our Government. We have received the report and recommendation from the special counsel. Mr. Gingrich has agreed with the judgment of the special counsel. In addition to the report, the recommendation of sanctions represents the bipartisan work produced by our investigative subcommittee. The report in the recommendation of sanctions has been overwhelmingly approved by the full Committee on Standards of Official Conduct and deserves the support of this House. Let me begin by saying how proud I am of the work of the investigative subcommittee. In my judgment, all four members of the subcommittee maintained their commitment to a process that was fair to the respondent as well as the House and its rules. I want to commend and compliment the work of our chairman, the gentleman from Florida [Mr. Goss], for the extraordinary work that he did as well as the work of the gentleman from New Mexico [Mr. Schiff] and the gentlewoman from California [Ms. Pelosi] and the work of the subcommittee. I also want to recognize the extraordinary service performed by Jim Cole, our special counsel; Kevin Wolf, his assistant; and Virginia Johnson from the [[Page H173]] Committee on Standards of Official Conduct. Before commenting on the substance of the resolution before us, I feel obligated to point out the severe problems that have plagued the process. The 1-year delay in 1995 in enlisting the services of the special counsel was wrong. We have some evidence that this delay may have been part of the strategy by allies of Mr. Gingrich. In sharp contrast to the good faith, bipartisan cooperation which governed the subcommittee's work, the orderly process collapsed on December 21, 1996, after the matter was forwarded to the full committee. Ignoring the advice of special counsel and the subcommittee, the Republican leadership in the House imposed an unrealistic deadline for the completion of our work to coincide with the Presidential inauguration. The schedule agreed upon by the full Committee on Standards of Official Conduct for full public hearings on the subcommittee findings was unilaterally and improperly canceled. These partisan actions were aimed at shielding Mr. Gingrich from a full airing of the charges to which he has admitted guilt. During the past 5 days the gentlewoman from Connecticut [Mrs. Johnson] and I have worked closely together to use these days as effectively as possible to achieve two objectives: First, in the face of an unrealistic time limit, to get the broadest possible public release of the information contained in the subcommittee's report; and second, to arrive at a fair, bipartisan recommendation on sanctions. We have achieved both objectives, and for that I would like to express my appreciation to the chairwoman. The report details the reason why the committee has found that Mr. Gingrich has committed a serious violation of the House ethics rules. I urge each of my colleagues to read the report and the accompanying exhibits. I will now briefly review the findings of the special counsel's report. First, we must disregard the notion that this case involves a college professor engaged in a normal academic classroom activity. The respondent in this case is not Professor Gingrich, but Representative Gingrich, a Member of the House, minority whip and then Speaker of the House, who had a vision to launch a political movement to change the country, in his words, from a welfare state to an opportunity society. Second, over a 5-year period Mr. Gingrich improperly commingled political activities with tax exempt organizations. When GOPAC ran short of funds, Mr. Gingrich sought contributions from several tax exempt entities in order to continue his partisan political crusade. Third, there is ample evidence that he did so in violation of tax laws. Celia Roady, the tax expert retained by the committee, has concluded that the tax laws were violated, and it is not even a close call. Our special counsel agrees with that judgment. In all, almost $1.5 million was spent by these tax exempt organizations, costing the U.S. Treasury hundreds of thousands of dollars in lost tax revenues that should have been paid. Fourth, one need not reach a conclusion on the tax issues to find that Mr. Gingrich has violated our ethical standards. From his involvement in the American Campaign Academy case, Mr. Gingrich knew that pursuing these activities posed a risk of potential tax law violations. The ACA case established limits on political activities of tax exempt organizations. It is important to understand that this case involved similar facts and some of the same parties as the matter investigated by the subcommittee. In fact, in response to a question from the special counsel, Mr. Gingrich stated, and I quote: ``I lived through that case. I mean I was very well aware of what the ACA case did and what the ruling was.'' All experts agreed that he should have sought tax advice before using tax exempt organizations to pursue his political agenda. In the words of our special counsel Mr. Gingrich's actions suggest that ``either Mr. Gingrich did not seek legal advice because he is aware that it would not have permitted him to use a 501(c)(3) organization for his projects,'' or he was ``reckless in an area that was fraught with legal peril.'' Finally, the House must make a judgment on the question of whether Mr. Gingrich deliberately misled the committee. Mr. Gingrich submitted two letters to the committee that he now admits contained information about GOPAC that was inaccurate. The facts surrounding these inaccuracies were well known to Mr. Gingrich. Mr. Gingrich had read the letters before submitting them to the committee. When the investigative subcommittee specifically called the contradiction in the letters to Mr. Gingrich's attention, he once again defended them as accurate even though they were clearly wrong. The misleading letters were sent with the express intent of persuading the Committee on Standards of Official Conduct to dismiss the pending charges. They had the effect of misleading the committee. It stretches credibility to conclude that the repeated misstatements were innocent mistakes. The linchpin of these findings is stated clearly in the report of special counsel: ``Of all the people involved in drafting, reviewing, or submitting the letters, the only person who had firsthand knowledge of the facts contained within them with respect to the Renewing American Civilization course was Mr. Gingrich.'' The special counsel concludes: ``Either Mr. Gingrich intentionally made misrepresentations to the committee or he was again reckless in the way he provided information to the committee concerning a very important matter.'' Mr. Gingrich's defense is that he has always been very sensitive to ethics issues and he was embarrassed by the obvious inaccurate letters. He said he never intended to mislead the committee. But Mr. Gingrich's actions with respect to the understanding reached with the Committee on Standards of Official Conduct belies his statement. Mr. Gingrich, through his attorneys, had entered into an agreement with the committee. That agreement provided ``Mr. Gingrich agree that no public comment should be made about this matter while it is still pending. This includes having surrogates sent out to comment on the matter and attempt to mischaracterize it.'' I am sure that Members of this House are well aware of public comment since the release of our findings on December 21. As the special counsel States, ``In the opinion of the subcommittee Members and the special counsel, a number of press accounts indicated that Mr. Gingrich had violated that agreement,'' the finding of the bipartisan committee and our special counsel. Mr. Gingrich's violation of the no comment agreement raises serious questions about the extent to which he has deliberately sought to mislead the committee in other instances. Beyond the events of December 21, 1996, Republican operatives close to Mr. Gingrich conducted an ongoing campaign to disrupt the committee's work. It is relevant for this House to consider these circumstances in determining the degree of Mr. Gingrich's culpability in providing the Committee on Standards of Official Conduct information that was not accurate, reliable, and complete. It is up to the Members of this House to determine the appropriate sanction for the violations committed by Mr. Gingrich. This is not a vote on whether Mr. Gingrich should remain Speaker of the House. Members need time to become familiar with the factual record presented in the special counsel's report and to consider the seriousness of these violations that have just come to light during the past 4 days. In the days and weeks to come Mr. Gingrich and each Member of this House should consider how these charges bear on the question of the speakership. The resolution before us, the House, today is a sanction for Representative Gingrich for the ethics violations that he has committed. According to the House rules a reprimand is appropriate for serious violations of ethical standards. Sadly, Mr. Gingrich's conduct requires us to confirm that this case involves infractions of at least that level of seriousness. He has provided inaccurate and misleading information to the Committee on Standards of Official Conduct and there is significant evidence that he intended to do so. The recent history of congressional ethics sanctions indicate the House has imposed the sanction of reprimand when a Member has been found knowingly to have given false statements. But the earlier cases did not involve [[Page H174]] giving false statements to the Committee on Standards of Official Conduct itself in response to an inquiry from the Committee on Standards of Official Conduct, and Mr. Gingrich's case involves more than just giving false information to the committee. Mr. Gingrich has also admitted to directing a political empire that made extensive use of tax exempt entities for political fundraising purposes. As a result of all these actions, the reputation of the House of Representatives has been damaged and tax dollars have been lost. But there is still more. This is not the first time Mr. Gingrich has had ethical problems that drew critical action by the Committee on Standards of Official Conduct. On other occasions he has been sighted by this committee for violating House rules. The American public has not forgotten the lucrative book advance contract that the incoming Speaker of the House was forced to renounce under public pressure. Our committee concluded in regards to that book deal: ``At a minimum this creates the impression of exploiting one's office for personal gain. Such perception is especially troubling when it pertains to the Office of the Speaker of the House, a constitutional office requiring the highest standards of ethical behavior.'' Because of all those factors, these violations require a penalty more serious than a reprimand. Considering all these matters, I urge this House to adopt the resolution before us. The resolution incorporates the recommendation of the special counsel, the investigative subcommittee, the full Committee on Standards of Official, and Mr. Gingrich. The sanction we recommend is somewhere between a reprimand and a censure. It provides a reprimand plus a required $300,000 contribution by Mr. Gingrich to the cost of these proceedings. In my view this payment should come from his personal resources because it is a personal responsibility. Mr. Speaker, with today's vote I will have completed my service on the Committee on Standards of Official Conduct. Over the past 6 years and 1 month I have participated in many ethics matters. Among the issues that we had before the committee during my tenure has been not only this matter but the House bank and post office matters, both of which exposed many Members of this House, including its leadership, to embarrassment either for misdeeds or for mismanagement. I must say, however, that the matter before us today has brought a threat to the Committee on Standards of Official Conduct that far exceeded anything I have seen. The committee was subject to repeated attempts to obstruct its work and improperly interfere with its investigation. As I leave the Committee on Standards of Official Conduct, I hope that the incoming Members will find the process has survived and will continue to serve this House and the people of our Nation. Mr. Speaker, I reserve the balance of my time. {time} 1230 Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico [Mr. Schiff], a distinguished member of the subcommittee. Mr. SCHIFF. Mr. Speaker, I first want to join in the compliments to the other committee members and to our staffs and special counsel because, even though we had many disagreements along the way, and obviously still have some disagreements, I think we made the best possible effort to get us here today. I agree with the gentleman from Maryland [Mr. Cardin] this is a sad day. It is a sad day when any Member is here because of a recommendation of the Committee on Standards of Official Conduct. Last time I was here it was because a Democratic colleague was here on our recommendations. I was not happier then because it was a Democrat and not a Republican then. I think it is a sad day when it is a Member of the House. Nevertheless, I think the House can be proud of the fact there is accountability for its Members. I wish such accountability could be found from every area of our government. Second, I am sorry that in the rendition of facts I just heard, there were certain partisan conclusions that eliminated other conclusions which I guess could be stated from the other side. For example, it was said that there was an attempt made by our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson] who got us here, when many people expected along the way we could never get here; but through her leadership we are here today. There was the accusation that our chairwoman deliberately tried to scuttle the information getting to the Members in order to mitigate any effect on Congressman Gingrich. Quite the contrary. Our chairwoman and the rest of us had an agreed to up to 5 days of public hearings. Those were changed only when our Democratic colleagues on the Committee on Standards of Official Conduct held a press conference in which they said the most important product we could produce would be a written report that Members could consider before they vote. That left our Chair, in my judgment, no alternative but to change directions and to postpone the public hearing, which we ultimately did have anyway, in favor of trying to produce the written report by this date which we have now accomplished. There has been no mention of the fact that Members on the Republican side particularly were subject to enormous political attack in their districts. If I were still a district attorney, a career I had before I got to Congress, I would have certain leaders arrested for attempted jury tampering, because I think that is what they were doing. They were trying to use political pressure to get a result in what is essentially a judicial type of deliberative body. That was their intent. That was one of the most unethical things I have seen since becoming a member of the Committee on Standards of Official Conduct. What I want to emphasize now is why we are here today. I want to point out that the statement made, that there have been many new facts revealed in the last several days, in my judgment is not correct. We are here because of a statement of alleged violation found by the ethics subcommittee and released publicly on December 21, 1996, to which the Speaker acknowledged. And those violations have not changed. What has changed is the reporting of those violations in the news media over the last several days. What I have seen in the news media in various forms is some significant misstatements of what the violations are. But I have to add that I do not believe that that was in this case the fault of the news media. It is their job to be critical of us, and it is our responsibility to respond if we think it is appropriate. But I want to make it very clear what I think happened was an unfortunate matter of timing, that on Friday of last week, our hearing did not begin and our written report was not available until 3 o'clock on Friday afternoon. Some reporters have told me there were not enough copies to go around. So they are trying to form deadlines for their programs or for their newspapers with a report that is over 200 pages long. I think it is entirely understandable that some errors were made at first. Nevertheless, I think some errors were made. They were made because Mr. Cole's report attempted to be a soup-to-nuts, beginning to end explanation of what we did in the ethics subcommittee to get to where we are today. In going through step by step, he quite properly, in my judgment, said we had this choice to make and we had this fact and we handled it as follows, and so forth. But what I have seen as reported as a final conclusion, certain excerpts from that report were intermediary at best. The final conclusion of the subcommittee did not change. That final conclusion is, first, that Mr. Gingrich should have sought competent legal, professional tax advice before he began his procedures that involved the use of a tax-exempt foundation, which under the law is called a 501(c)(3) organization. Second, that materials were sent to the Committee on Standards of Official Conduct in response to questions from the Committee on Standards of Official Conduct that the Speaker should have known were inaccurate. That is the final finding, if you will, of the subcommittee. The report goes through all of the events, and I heard the gentleman from [[Page H175]] Maryland [Mr. Cardin] make reference to a number of the events. But the findings did not change. All of the events would include things like we on the subcommittee interviewed everybody we could find who had anything to do with the preparation of those two letters that were inaccurate. What we found, in my judgment, if it were not so serious, and I recognize how serious it is, it would really be called a comedy of errors. What happened was the letters were prepared in Mr. Gingrich's law firm that sent the letters first to a staff member in Mr. Gingrich's office. The law firm thought that the staff member would correct any factual misstatements. The staff member thought the law firm had already checked out the facts. So nobody checked out the facts to see if they were accurate. But the most important thing is that Mr. Gingrich was never involved in the preparation of those letters at any point until the very end where he acknowledges he signed them, he should have read more carefully, and he is responsible for that before this House of Representatives. I would point out that in a letter of October 1996 that he prepared himself with his staff, he gave us entirely accurate information about the matters that are under consideration here. I think it is pretty obvious you do not give accurate information in October and then you can deliberately prepare information the following September and March that nobody would know the difference of. Based upon the allegation, the violations we found, the Committee on Standards of Official Conduct on a 7-to-1 vote, full committee now, entire committee, recommended the following penalty: It recommended a reprimand and a cost assessment of $300,000. In some meetings earlier with members, I have heard some members say that that is unique and they are concerned about that penalty being unique because, although we have imposed cost assessments before, we have never done so in the past for the cost of the investigation. That is basically what we did. We set $300,000 as the estimated cost of that portion of the investigation that dealt with clearing up the misstatements that we received, which may have begun to be prepared in Mr. Gingrich's law firm, but for which he is responsible as a Member of the House. I want to tell all Members that they do not need, in my judgment, to be concerned about the precedent value, because I believe everyone concerned understood that this is a unique penalty because the Speaker of the House is a unique official in our institution. In fact, that is the reason we decided to, on the subcommittee's part, propose a unique penalty, and we got word, I have to say ``got word,'' because we never met with the Speaker to discuss the penalty. All of the negotiations were by our special counsel on our behalf and the Speaker's attorney, Mr. Evans, on his behalf. So we got reports on it. But the report we got back was that Speaker Newt Gingrich agrees that because he holds a unique position in the House he should receive a unique penalty, so there is no doubt even the Speaker of the House is not above the rules. I would hastily add, however, two things, and conclude with this. The first is that I think there is room for this to be made a standing procedure in certain cases. For example, I saw what in my judgment were a number of frivolous complaints filed with the Committee on Standards of Official Conduct which had no other purpose than to be leaked to the press and create bad publicity for whomever was the target of those complaints. It seems to me that the precedent we have established here should apply to those who are found by the committee to have filed frivolous complaints. Finally, on how the funds should be paid if the House adopts the recommended penalty, we were deliberately silent on that. My colleague, the gentleman from Maryland [Mr. Cardin], is most certainly entitled to his opinion, but the subcommittee and the committee made no determination. Insofar as I have studied the precedents on financial remuneration to the Government, we have never established as a matter of law how these funds can be paid. Mr. Gingrich, if he does get this as a final penalty, understands all the ramifications, I am certain he does not need me to explain them to him or, for that matter, any of my colleagues on the other side. But the fact is the committee was silent deliberately on how any such funds should be paid. It is my understanding there are at least some precedents for campaign funds, for example, being used to reimburse the Government, and certainly we all know that the Chief Executive of the United States has a legal defense fund in which he raises money. So I am just saying that whatever the options are to Newt Gingrich as a Member of the House, they have not been precluded legally by the committee, and in my judgment they should not be. With that, Mr. Speaker, I just want to again commend our chairwoman, the gentlewoman from Connecticut [Mrs. Johnson], my fellow members of the committee, and say I believe we have come up with an appropriate penalty, which some think is too harsh, some think is too lenient. That tells me we are about where we ought to be. I hope the House will adopt it. announcement by the speaker pro tempore The SPEAKER pro tempore (Mr. Bereuter). The Chair will request that visitors in the gallery, in coming and going, refrain from any audible disruption of the proceedings. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume briefly to comment on some of the points raised by the gentleman from New Mexico [Mr. Schiff]. Mr. Speaker, the gentleman from New Mexico [Mr. Schiff] is correct, we are in agreement on the recommendation. We put different emphasis on some of the facts. Mr. Gingrich clearly, in my view, had ample opportunity to know about the statements in his letters. He did indicate he hired an attorney in order to draft the two letters. Let me just read, if I might, from the transcripts as to the exchange between Mr. Cole and Mr. Baran, Mr. Baran being Mr. Gingrich's attorney. Mr. Cole: ``Would you have made sure that he had read it and approved it, or just the fact he read it is all you would have been interested in,'' referring to Mr. Gingrich? Mr. Baran said, ``No, I would have wanted him to be comfortable with this on many levels.'' Mr. Cole: ``Were you satisfied he was comfortable with it prior to filing it with the committee?'' Mr. Baran: ``Yes.'' Let me also point out that after this, after we pointed out to Mr. Gingrich the inconsistency in the letters, Mr. Gingrich wrote another letter back to the committee. Clearly he had time to review the inconsistencies by that time. The October 31, 1996, letter, in that letter he still maintains his innocence on inconsistencies in the letter, even though the letters were clearly inaccurate, he knew they were inaccurate, and he had a chance to reread the letters and correct the record. Mr. Speaker, I yield 11\1/2\ minutes to the gentlewoman from California [Ms. Pelosi], my colleague on the Committee on Standards of Official Conduct, who was on the investigative subcommittee and who has made a great contribution to this process and has been an extraordinary member of our Committee on Standards of Official Conduct. Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time and for his leadership and guidance throughout this process. Clearly without his involvement, we would not be here today with a bipartisan recommendation for a sanction for the Speaker of the House. Mr. Speaker, as a member of the investigative subcommittee, I would like to take this opportunity to publicly thank the gentleman from Florida, Porter Goss, our Chair of the investigative subcommittee, again acknowledge the gentleman from Maryland, Mr. Cardin, as ranking member for his service there, as well as to say how much I learned from the gentleman from new Mexico, Mr. Schiff, in the course of our service there. Clearly, from the debate so far, you can see that we had many unresolved difficult issues to deal with, and under the leadership of the gentleman from Florida [Mr. Goss], we went through that. I want to also commend our special counsel, James Cole, for making us stick to the facts, the law, and the ethics rules as those elements that were [[Page H176]] the only matters relevant to our decisions, and many thanks to Kevin Wolf and Virginia Johnson for their assistance and professionalism. I heard my colleague, the gentleman from New Mexico [Mr. Schiff], say in his earlier days as a prosecutor he might entertain thoughts of bringing jury tampering charges. If he decides to do that, I hope that the gentleman will include in his package the dirty tricks memo that is now in the public record that is a written document about attempts to undermine the ethics process directly by the Republican House leadership. Let me say though we did produce a bipartisan product. I hope our work will serve as a foundation for a bipartisan solution to be agreed to today. Today, others have said it, is a sad day. I think it is a tragic day. Here in the House of Representatives we will sanction a sitting Speaker for the first time. It is an unwelcome task to pass judgment on any of our colleagues, but we have a responsibility to uphold ethical standards called for in the rules and expected by the American people. I associate myself with the gentleman from Maryland, Mr. Cardin's, remarks about the process. We should not have to choose to make the American people aware of either the hearing, a full hearing, or the report. But since we have a report, I urge everyone to read it. I think it is very instructive and gives lie to many of the mischaracterizations that have been made about the violations that the committee charged Mr. Gingrich with and those which he admitted to. {time} 1245 The last few weeks have been dreadful. But we have an opportunity to say today to the American people that when we come to Washington, we do not check our integrity at the beltway, and that power is not a license to ignore ethical standards. We also have an opportunity to tell the American people that sanity can reign in the Congress by demonstrating our ability to agree and disagree in a respectful way. The American people gave us the privilege to serve; they expect us not only to make the laws and to obey the laws, but also to live up to a high ethical standard. So today we are here to address the failure of Speaker Gingrich with regard to the laws governing charitable contributions and GOPAC, and his failure to respond accurately and reliably to the Committee on Standards of Official Conduct. I would like to just take a moment to refer to the book, because as I asked people to read it, I want to point out the statement of alleged violations which was originally set forth by the special counsel. This is on page 155. Based on the information described above, the special counsel proposed a statement of alleged violations to the subcommittee on December 12. The statement of alleged violations contained 3 counts: Mr. Gingrich's activities on behalf of ALOF in regard to AOW and ACTV, and the activities of others in that regard with his knowledge and approval, constituted a violation of ALOF's status under section 501(c)(3). Second, Mr. Gingrich's activities on behalf of Kennesaw State College Foundation, the Progress and Freedom Foundation, and Reinhardt College in regard to the Renewing American Civilization course, and other activities in that regard, with his knowledge and approval, constituted a violation of those organizations' status under 501(c)(3). And, third, Mr. Gingrich had provided information to the committee, directly or through counsel, that was material to matters under consideration by the committee, which Mr. Gingrich knew or should have known was inaccurate, incomplete, and unreliable. These were not the alleged violations that were passed out at the committee because we did not come to agreement on them, but they are the original allegations by the special counsel. I think everyone is well aware that we have charged the Speaker in our statement of alleged violations that he did not ensure that the law was complied to in his activities, and that he gave information to the committee that was not accurate. Think how much easier it would be if we could all use the 501(c)(3), not consult a lawyer, and build our political agenda around tax deductible considerations. The American people in their generosity give the opportunity to charitable institutions to do charitable work. That does not include subsidizing our political activity. At the grassroots level we have always had to comply with the law in relationship to political activity and 501(c)(3). If we have to do it at the grassroots level, so should the Speaker of the House. As the counsel mentions in his statement, some members of the committee and the special counsel were in favor, as I mentioned before, of the original proposal. After much deliberation, all four of us could agree on a statement of alleged violations that despite, in quotes, ``Despite significant and substantial warnings, Mr. Gingrich did not seek the legal advice to ensure that his conduct conformed with the provisions of 501(c)(3),'' with the law. Why did he not? Why did he not? Either because Speaker Gingrich knew what the answer would be no, from an attorney, ``No, you cannot do this,'' or he was reckless in conforming with the law. The committee decided that regardless of the resolution of the 501(c)(3) tax question, Speaker Gingrich's conduct was improper, did not reflect credibly on the House, and was deserving of sanction, serious sanction, and Speaker Gingrich agreed. The next issue in my view is the most serious, that of not dealing honestly with the Committee on Standards of Official Conduct. It is interesting to me that Speaker Gingrich has repeatedly stated that ethics are important to him. Why, then, did he say that he was too busy to respond to the committee accurately? Again, either he was trying to get complaints dismissed and an accurate answer would not achieve that end, or that ethics were not important enough for him to take the necessary time. As our colleague, Mr. Cardin, has pointed out, Mr. Gingrich gave one answer in the earlier letter in order to respond to a complaint regarding use of official resources for his course, so he said GOPAC did it. Then when we asked the question if GOPAC and 501(c)(3) cannot be that cozy, then he said GOPAC did not do it; and then in the third communication to the committee, he stood by his previous letters. The gentleman from New Mexico [Mr. Schiff] prefers to call it a comedy of errors. I think it is violating our trust that we have among Members. Every day that we speak to each other in this House, we refer to each other as the gentleman from Georgia, the gentlewoman from Connecticut, the gentleman from Maryland. We trust each other that we will deal truthfully with each other. Unfortunately, in terms of Speaker Gingrich's dealings with the committee on a number of occasions, and in his violation of the agreement under which we would go forward in bringing this issue to a conclusion, Mr. Gingrich's statements lead me to one conclusion: that Mr. Gingrich, in his dealings with the committee, is not to be believed. I conclude also that Mr. Gingrich gave these different answers not because it was a comedy of errors, but because he thought he would get away with it. I was particularly concerned about the ``too busy'' defense. We cannot say that ethics is important to us and then say we are too busy to answer the central question asked by the Committee on Standards of Official Conduct. Maintaining a high ethical standard is a decision, and it requires making it a priority. It is not just something we do when we are not too busy. We expect the Speaker of the House to be busy. We also expect the Speaker of the House to be ethical. Speaker Gingrich himself has stated that the Speaker must be held to a higher standard. I do not put any additional burden on the Speaker. I think all Members of Congress should be held to a higher ethical standard. When new Members arrive in Congress, one of the first documents they receive is the House Ethics Manual. And one of the first responsibilities impressed upon all of us is to uphold a high ethical standard. Clearly, Speaker Gingrich did not live up to his own professed ethical standards of the House, and, indeed, to the ethical standards in this book. I urge my colleagues to read this report. I think when you do, you will see [[Page H177]] that it gives lie to the mis characterizations of our Republican colleagues that the violations were nothing, or that they were like trespassing or double parking. Either our colleagues were ill-informed, and that is what I choose to believe, or they have a cavalier regard for the tragedy of the Speaker admitting bringing discredit to the House of Representatives which he wants to lead. Now we come to the penalty. As you know, we have a financial penalty because we believe that the inaccurate statements that the Speaker said to us prolonged the process. There are other reasons why there is a financial penalty, but that was one of them. And the subcommittee concluded, and I quote, ``that because these inaccurate statements were provided to the committee, this matter was not resolved as expeditiously as it could have been. This caused a controversy over the matter to arise and last for a substantial period of time, it disrupted the operations of the House, and it cost the House a substantial amount of money in order to determine the facts.'' So I urge our colleagues, in light of all of that, to support the bipartisan recommendation of the committee. The $300,000 penalty I believe speaks eloquently to the American people, who may not know the weight of one of our sanctions or another, but they understand $300,000. And I hope that this money will not come from the Speaker's political campaign funds, because I think that will increase the cynicism of the American people about what goes on here in Washington. Whether the Speaker remains Speaker is up to the Republicans. He is technically eligible. I hope you will make a judgment as to whether he is ethically fit. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida [Mr. Goss), the chairman of the subcommittee, and I want to recognize the outstanding job that he did chairing that subcommittee, as I recognize the remarkable service of the members of that subcommittee. (Mr. GOSS asked and was given permission to revise and extend his remarks.) Mr. GOSS. Mr. Speaker, I thank the gentlewoman from Connecticut, the distinguished chair of our committee, for yielding me this time. She deserves our sincere gratitude for all she has endured, for her persistence, for her determination to bring this to a successful conclusion, and here we are today. It was certainly an unenviable and, I know, thankless task. Today we have a conclusion. Today the House takes the final step in what has been a most difficult process, I think we all would agree. It is not just for those intimately involved in the day-to-day twists and turns in this tortuous case, but also for the entire House. On Friday the full Committee on Standards of Official Conduct approved a recommendation which is today before this House, for an official reprimand and a $300,000 cost assessment to Mr. Gingrich as sanction for his violation of House rules and as partial reimbursement for the costs of the inquiry that ensued. This is unquestionably a serious sanction, but one that is also fair and appropriate, in my view, as evidenced by the fact that indeed Mr. Gingrich himself has agreed to it. The Committee on Standards of Official Conduct, functioning independently of leadership on both sides of the aisle, is supposed to find the truth through an investigative process. It is not designed to protect errant Members, nor is it designed to permit partisan zealots to destroy Members or to score political points. In this case, the committee's members were subject to frequent unfair and inaccurate partisan political attack. That is a matter of fact. Outsiders attempted to influence our activities, our deliberations, our schedule and our conclusions. That is truly a shame. It has caused harm, not just to the Members involved, but it has also brought discredit to this institution, in my view. Friday, I urged the leadership on both sides of the aisle to tone down the rhetoric, cut the nonsense, and get back to work in repairing the damage that has come to this House. I repeat that exhortation today. With regard to the matter at hand, I am very satisfied with the work done by our investigative subcommittee, whose recommendation was adopted by the full committee and is the recommendation all Members will consider today. The four of us, working with the extraordinarily talented special counsel, Jim Cole, functioned in a spirit of bipartisan cooperation that did actually grow as we went along in the case. I say we started with different perspectives, but we started with open minds, and I am grateful for the very fine service, the unbelievable commitment of time of the members, their cooperation. I take my hat off to the gentleman from Maryland [Mr. Cardin], the gentleman from New Mexico [Mr. Schiff], and the gentlewoman from California [Ms. Pelosi], all of whom in my view bring great credit to this institution. Contrary to what has been reported, the statement of alleged violations that our subcommittee developed and passed and which forms the basis for the sanctioned recommendation did not, I repeat not, find that Mr. Gingrich violated or did not violate tax law in his relationship with 501(c)(3) tax exempt organizations. And contrary to media reports, that statement of alleged violation of December 21st also did not charge Mr. Gingrich with intentionally deceiving our committee with his correspondence in this case. Nonetheless, I found it extraordinarily imprudent of Mr. Gingrich not to seek and follow a less aggressive course of action in tax areas he knew to be sensitive and controversial. And even more troubling, I found the fact that the committee was given inaccurate, unreliable, and incomplete information to be a very serious failure on his part. {time} 1300 Now, it is certainly true that we had more than enough facts and extenuating circumstances to consider. We all know a Member of Congress wears many hats, for our official lives, our campaign lives, our private lives, our business lives or whatever, and knowledge of how careful we must be in wearing those hats is fundamental to our job. We all have an extra obligation to be sure our activities are appropriate, no matter which hat we are wearing. That is an obligation that each of us signs up for when we run to serve in this institution. That is why the serious sanction we recommend is appropriate, in my view. The gentleman from Georgia [Mr. Gingrich] has recognized his lapses and the problems they have caused for this House. He has apologized, forthrightly and sincerely. He has also accepted the unique sanction we proposed, one that includes a clear signal to all Members about the importance of providing accurate and grounded information to the Select Committee on Ethics, whether in response to a complaint or in filing a complaint. I must point out to Members that our mission in the preliminary investigation was to find and examine the dark clouds. That is what investigations do. Mr. Cole is very good at that. He is a brilliant prosecutor. In his report he presented well those dark clouds. He did not, however, present all of the other clouds we looked at that turned out to be not quite so dark. So I found that his report would be well supplemented by reading the report of the Speaker's attorneys for balance, as well. I refer colleagues and interested parties to both reports to get the full picture. In the end, I agreed with my subcommittee colleagues that Mr. Gingrich's absence of diligence subjects him legitimately to charges of conduct reckless enough to constitute a violation of House rules. I sincerely hope with today's voting we can put this matter to rest. I urge this House to adopt the recommendation of the Select Committee on Ethics and remember, the penalty is aimed at findings in response to the specific work of our subcommittee, no matter what feelings any particular Member may personally have about Mr. Gingrich. Some have said this is a sad day. Indeed it is, whenever we have this type of a situation. I will also say it is a day of victory. We have proved to the American people that no matter how rough the process is, we can police ourselves. We do know right from wrong in this institution. We can take the necessary steps. [[Page H178]] Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from Pennsylvania [Mr. Borski], a very valuable member of the Select Committee on Ethics, who has done yeoman's service for the House and for the Congress on that committee. (Mr. BORSKI asked and was given permission to revise and extend his remarks.) Mr. BORSKI. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I want to start by commending the members of the investigative subcommittee, the gentleman from Maryland, Mr. Ben Cardin, the gentlewoman from California, Ms. Nancy Pelosi, the chairman, the gentleman from Florida, Mr. Porter Goss, and, of course, the gentleman from New Mexico, Mr. Schiff, for the extraordinary job they have performed for this institution. They are all people of enormously high integrity, and they have done this committee and this House very proud. I also want to commend the special counsel, Mr. Cole, who under the most difficult and trying of circumstances came through with a report that, again, I would urge all Members of the House to read; but again, under the most difficult and trying of circumstances, he performed an heroic deed for this House. Mr. Speaker, let me state the obvious. No Member seeks or enjoys a position on the Ethics Committee, but the proper functioning of that committee is essential to the integrity of the House. It is a matter of personal and institutional honor that each of us has agreed to serve. I remember distinctly when I received the phone call that any one of us never wants to get; a leader of my party, Speaker Tom Foley, asked me to serve on the Ethics Committee. I remember distinctly saying to Mr. Foley that I was reminded of the fellow who was tarred and feathered, put on a rail and run out of town, whose retort was that if it weren't for the honor, he would rather walk. I am on this committee, but it is as a reluctant member. On more than one occasion I have offered to step down when the removal of a member was necessary to maintain the political balance of the committee. But Mr. Speaker, I feel very strongly that it is our constitutional duty, and it was mine, to respond positively to Tom Foley's request. It was, again, certainly not a position that I wanted. I hope to concentrate my efforts and energies on the work of the Committee on Transportation and Infrastructure, probably the most bipartisan committee in this House of Representatives, and where that bipartisan atmosphere has enabled us to turn out very important pieces of legislation. It is always a grueling and distasteful task to investigate a fellow Member--all the more so in the case of the Speaker. Some have suggested that partisan attempts were made to derail the special counsel's efforts and render him less effective. I might say that I agree. The subcommittee released its statement of alleged violation on the Saturday before Christmas. The counsel's report was released on Friday afternoon, before inaugural weekend, with the vote firmly scheduled for this afternoon. Despite a prior agreement which allowed for a full week of public hearings, we were left with only a single afternoon's session. Mr. Cole, along with members of the full committee and subcommittee were troubled by the time line insisted upon by Republican leadership. The special counsel insisted with consistency that he would be hard pressed to complete a report detailing the 2-year investigation before February 4. Yet, Mr. Cole was denied the time he deemed necessary. Despite these obstacles, however, the special counsel did release a report on Friday afternoon which included the subcommittee's recommended sanction of a reprimand and fine. In this report, Mr. Cole, along with Ms. Roady, the subcommittee's tax expert, and two members of the committee conclude that Mr. Gingrich has violated the tax code in conjunction with 501(c)(3). However, the Committee agreed that the focus of the investigation should be on the conduct of the Member rather than the resolution of issues of tax law which would best be left to the IRS. What the report does say about the 501(c)(3), is the following: ``* * * the subcommittee was faced with a disturbing choice. Either Mr. Gingrich did not seek legal advice because he was aware that it would not have permitted him to use a 501(c)(3) organization for his projects, or he was reckless in not taking care that, as a Member of Congress, he made sure that his conduct conformed with the law in an area where he had ample warning that his intended course was fraught with legal peril. The subcommittee decided that regardless of the resolution of the 501(c)(3) tax question, Mr. Gingrich's conduct in this regard was improper, did not reflect creditably on the House and was deserving of sanction.'' With respect to the letters containing inaccurate information that Mr. Gingrich provided to the committee, the report goes on to say: ``The special counsel suggested that a good argument could be made, based on the record, that Mr. Gingrich did act intentionally, however it would be difficult to establish that with a high degree of certainty * * * In determining what the appropriate sanction should be in this matter, the subcommittee and the special counsel considered the seriousness of the conduct, the level of care exercised by Mr. Gingrich, the disruption caused to the House by the conduct, the cost to the House in having to pay for an extensive investigation, and the repetitive nature of the conduct.'' ``The subcommittee was faced with troubling choices in each of the areas covered by the statement of alleged violation. Either Mr. Gingrich's conduct in regard to the 501(c)(3) organizations and the letters he submitted to the committee was intentional or it was reckless. Neither choice reflects creditably on the House. * * *'' Under the rules of the committee, a reprimand is the appropriate sanction for a serious violation of House Rules and a censure is appropriate for a more serious violation of House rules. This is the extent to which guidelines are in place for Members to make a determination of sanction. According to the special counsel, it was the opinion of the Ethics Subcommittee, after two years of investigation and inquiry, that this matter fell somewhere in between. As such, both the subcommittee and the special counsel recommended that the appropriate sanction should be a reprimand and a payment reimbursing the House for some of the costs of the investigation in the amount of $300,000. Mr. Gingrich has agreed that this is the appropriate sanction, as has the full Ethics Committee. Mr. Speaker, I say to my colleagues, particularly my colleagues on the Democratic side of the aisle, this is not about who should be the Speaker of the House. Democrats have no say in who should be the Speaker of the House. That is up to the majority party. This is not about process. There were parts of this process that I find extremely disturbing, and parts that I think need to be dealt with further at an appropriate time. This is not that time. This is not about whether the existing tax code in question is arcane. I asked the special counsel, Mr. Cole, at our Friday afternoon public hearing whether the law was in fact arcane, and Mr. Cole responded in the strongest possible language that the law was not arcane. In fact, it is a headline issue that politics and tax-exempt organizations should not mix. Even Mr. Gingrich's tax attorney agreed with that statement. I also asked the special counsel to respond to the spin that we are all familiar with, and it goes like this: ``I saw the course, I watched the tape. There is nothing political about them.'' Mr. Cole's response was that the issue in question was not so much the content of the course, but, rather, the intent and the way in which it was distributed. The report states, ``Mr. Gingrich applied the ideas of the course to partisan political purposes.'' Mr. Speaker, this is not about determining the innocence or the guilt of Mr. Gingrich. He has already admitted that guilt, that he has brought discredit to this House. This is about the ability of the House of Representatives, under the most trying of circumstances, to judge one of its own Members, an extremely controversial Member, one who has led his party to the majority. It is our duty to determine the appropriate sanction to that Member. The subcommittee, aided by the special counsel, has conducted an investigation and made its recommendation to the full committee, which in turn has made that recommendation to the full House. Those are the processes we have adopted and those are the processes we have followed. We are giving every Member, independently, the opportunity to put aside partisan politics and follow the recommendation offered by the special counsel, the subcommittee, and the full committee upon completion of a 2-year inquiry. It is right and it is just. We were asked as Members of Congress to put aside our partisan beliefs and serve on this committee out of a sense of duty and honor. [[Page H179]] Now, we are asking you to honor our recommendations with dignity. I ask my colleagues to honor the work of the Ethics Committee and to vote yes for this very strict sanction. Mrs. JOHNSON of Connecticut. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. Smith]. (Mr. SMITH of Texas asked and was given permission to revise and extend his remarks.) Mr. SMITH of Texas. Mr. Speaker, I thank the chair of the Ethics Committee for yielding time to me. Let me say at the outset that you can clearly disagree and have great respect for your colleagues on the Ethics Committee, as I do, and still reach different conclusions, as I do. My conclusion is that the penalty that has been assessed by the Ethics Committee is way too

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