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Congressional - Legislation General (1)
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The original documents are located in Box 7, folder "Congressional - Legislation General
(1)" of the Philip Buchen Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 7 of the Philip Buchen Files at the Gerald R. Ford Presidential Library
93D CONGRESS
2D SESSION
S. 2951
IN THE SENATE OF THE UNITED STATES
FEBRUARY 4, 1974
Mr. BAYH introduced the following bill; which was read twice and referred
to the Committee on Government Operations
A
BILL
To provide for public ownership of certain documents of elected
public officials.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Public Documents Act".
4
SEC. 2. (a) Title 44, United States Code, is amended
5 by adding at the end thereof the following new chapter:
6
"Chapter 39-PUBLIC DOCUMENTS OF ELECTED
7
OFFICIALS
"Sec.
"3901. Definitions.
"3902. Papers of elected officials.
"3903. Preservation of public documents,
FORD LIBRARY
"3904. Judicial review.
II
2
1 "§ 3901. Definitions
2
"For purposes of this chapter-
3
" (1) 'elected official of the United States' means
4
the President, Vice President, Senator, and Member
5
of (or Resident Commissioner or Delegate to) the
6
House of Representatives, including any individual hold-
7
ing such office for any period by reason of appointment
8
to such office or succession to such office; and
)
" (2) 'public documents' means, with respect to an
10
elected official of the United States, the books, corre-
11
spondence, documents, papers, pamphlets, models, pic-
12
tures, photographs, plats, maps, films, motion pictures,
13
sound recordings, and other objects or materials which
14
shall have been retained by an individual holding elec-
15
tive office under the United States and which were pre-
16
pared for or originated by such individual in connec-
17
tion with the transaction of public business during the
18
period when such individual held elective office and
19
which would not have been prepared if that individual
&
FORD
20
had not held such office; except that copies of public
GERALD
LIBRARY
21
documents preserved only for convenience of reference,
22
and stocks of publications and of public documents previ-
23
ously processed under this title are not included.
3
1 "§ 3902. Papers of elected officials
2
"Within one hundred and eighty days after an elected
3 official of the United States ceases to hold his office, the
4 Administrator of General Services shall obtain any objects
5 or materials of that elected official which the Administrator
6 determines to be public documents within the meaning of
7 section 3901 (2) of this title, and such elected official shall
8 transmit such documents to the Administrator.
9 "§ 3903. Preservation of public documents
10
"The Administrator of General Services shall deposit in
11 the National Archives of the United States the public docu-
12 ments of each elected official of the United States obtained
13 under section 3902 of this title. Sections 2101-2113 of this
14 title shall apply to all public documents accepted under this
15 section.
16 "§ 3904. Judicial review
17
"A decision by the Administrator of General Services
18 that any object or material is a public document of an elected
19 official of the United States within the meaning of section
20 3901 (2) of this title shall be a final agency decision within
21 the meaning of section 702 of title 5.".
22
(b) The table of chapters, preceding chapter 1 of such
23 title 44, is amended by adding at the end thereof the
24 following:
"39. Public Documents of Elected Officials
3901".
93D CONGRESS
2D SESSION
S. 2951
A BILL
To provide for public ownership of certain
documents of elected public officials.
By Mr. BAYH
FEBRUARY 4, 1974
Read twice and referred to the Committee on
Government Operations
93D CONGRESS
2D SESSION
S. 2951
IN THE SENATE OF THE UNITED STATES
FEBRUARY 4, 1974
Mr. BAYH introduced the following bill; which was read twice and referred
to the Committee on Government Operations
A
BILL
To provide for public ownership of certain documents of elected
public officials.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Public Documents Act".
1020
4
SEC. 2. (a) Title 44, United States Code, is amended
5 by adding at the end thereof the following new chapter:
LIBRARY
6
"Chapter 39-PUBLIC DOCUMENTS OF ELECTED
7
OFFICIALS
"Sec.
"3901. Definitions.
"3902. Papers of elected officials.
"3903. Preservation of public documents,
"3904. Judicial review.
II
2
1 "§ 3901. Definitions
2
"For purposes of this chapter-
3
" (1) 'elected official of the United States' means
4
the President, Vice President, Senator, and Member
5
of (or Resident Commissioner or Delegate to) the
6
House of Representatives, including any individual hold-
7
ing such office for any period by reason of appointment
8
to such office or succession to such office; and
9
" (2) 'public documents' means, with respect to an
10
elected official of the United States, the books, corre-
11
spondence, documents, papers, painphlets, models, pic-
12
tures, photographs, plats, maps, films, motion pictures,
13
sound recordings, and other objects or materials which
14
shall have been retained by an individual holding elec-
15
tive office under the United States and which were pre-
16
pared for or originated by such individual in connec-
17
tion with the transaction of public business during the
18
period when such individual held elective office and
19
which would not have been prepared if that individual
20
had not held such office; except that copies of public
21
documents preserved only for convenience of reference,
22
and stocks of publications and of public documents previ-
23
ously processed under this title are not included.
3
1 "§ 3902. Papers of elected officials
2
"Within one hundred and eighty days after an elected
3 official of the United States ceases to hold his office, the
4 Administrator of General Services shall obtain any objects
5 or materials of that elected official which the Administrator
6 determines to be public documents within the meaning of
7 section 3901 (2) of this title, and such elected official shall
8 transmit such documents to the Administrator.
9 "§ 3903. Preservation of public documents
10
"The Administrator of General Services shall deposit in
11 the National Archives of the United States the public docu-
12 ments of each elected official of the United States obtained
13 under section 3902 of this title. Sections 2101-2113 of this
14 title shall apply to all public documents accepted under this
15 section.
16 "§ 3904. Judicial review
17
"A decision by the Administrator of General Services
18 that any object or material is a public document of an elected
19 official of the United States within the meaning of section
20 3901 (2) of this title shall be a final agency decision within
21 the meaning of section 702 of title 5.".
22
(b) The table of chapters, preceding chapter 1 of such
23 title 44, is amended by adding at the end thereof the
24 following:
"39. Public Documents of Elected Officials
3901".
93D CONGRESS
2D SESSION
S. 2951
A BILL
To provide for public ownership of certain
documents of elected public officials.
By Mr. BAYH
FEBRUARY 4, 1974
Read twice and referred to the Committee on
Government Operations
THE WHITE HOUSE
WASHINGTON
September 27, 1974
MEMORANDUM FOR:
MR. WILLIAM E. TIMMONS
FROM:
Philip W. Buchen
P.W.B.
SUBJECT:
Status of General Privacy Legislation
This responds to your memorandum of September 18, relative
to the status of general privacy legislation exclusive of specialized
bills dealing with criminal justice information, Federal employees
rights, IRS tax returns and military surveillance.
The House negotiations conducted by OMB and Privacy Committee
staff with the majority and minority leadership of the House
Government Operations Committee, resulted in an offer of the
Administration's support for H.R. 16373, reported unanimously
from the Government Operations Committee, September 24,
provided that the exemption for Federal personnel investigatory
records is restored to the bill. Congressman Erlenborn is prepared
to lead the floor fight for restoration. Every effort should be made
to assure passage of an appropriate amendment.
On the Senate side, OMB and the Privacy Committee have submitted
extensive detailed comments on S. 3418. This bill is close to the
more acceptable House version, but significant changes must be
made before we can consider supporting this measure. The Senate
has made significant progress in the direction of the House bill
by eliminating from its scope the private sector, contractors
and grantees, and by watering down significantly the powers of
the Privacy Commission.
FORD
LIBRARY
-2-
Our position is that there should be no slackening of effort to
secure legislative action for this session. We are committed
to issuing an Executive order only in the event that Congress
fails to act this year. OMB, I believe, has been dealing effectively
in allaying certain agency concerns about privacy legislation.
Having first-hand knowledge of the extensive inter-agency
dialogue of the past four or five months, I do not believe that
we will have a significant problem in dealing with agency comments,
particularly if Civil Service and Defense can make a pursuasive
case for their exemption.
Doug Metz can give you a more detailed and up to the minute
run-down on the foregoing matters. I suggest that you convene
a legislative strategy session involving Doug and those with
whom he has worked closely at OMB, including Walter Haase,
Bob Marik and Stan Ebner.
cc:
Robert Marik
Douglas Metz
GENALDA
LIBRARY
THE WHITE HOUSE
WASHINGTON
September 27, 1974
MEMORANDUM FOR:
MR. WILLIAM E. TIMMONS
FROM:
Philip W. Buchen P.U.B.
SUBJECT:
Legislation Protecting IRS Tax Returns
In response to your memo of September 23, 1974, Wilf Rommel,
OMB, has been asked to prepare a letter containing the Adminis-
tration's position on the Weicker-Litton legislation. Wilf is getting
initial input from Treasury and Justice. I have asked Doug Metz
to coordinate this for me.
As you know, Secretary Simon sent our bill to the Hill September 11,
1974, followed by issuance of an Executive order on September 20,
establishing specific restrictions on White House access to tax
returns. We should take immediate steps to assure that the
advantages of our bill and our specific objections to the Weicker-
Litton measure are more widely publicized on the Hill. We have
been unnecessarily on the defensive.
cc:
Richard Albrecht, DOL
Douglas Metz, Privacy Committee
Wilf Rommel, OMB
Laurence Silberman, Justice
GERALD FORD LIBRARY
THE WHITE HOUSE
WASHINGTON
August 29, 1974
MEMORANDUM FOR:
Phil Buchen
FROM:
Bill Casselman
PR.
The President will shortly have on his desk for signature the
juvenile delinquency bill. (The last day for action is September 7).
The Justice Department has some serious reservations about this
legislation which I feel we should hear out. If in my absence this
matter should be considered, I recommend that you talk to Larry
Silberman and especially Pete Velde (the new LEAA Administrator)
before taking any action.
GERALD FORD LIBRARY
THE WHITE HOUSE
WASHINGTON
January 2, 1975
MEMORANDUM FOR:
MAX FRIEDERSDORF
Boleri
FROM:
BOBBIE GREENE KILBERG
SUBJECT:
S. 1469 -- Amend Alaska Native
Claims Settlement Act of 1971
Attached are arguments in favor of the Sealaska selection
provision and in favor of the temporary exemption from the
federal securities laws. There is merit on both sides of
this controversy. As a political matter, the Counsel's Office
defers to you and Jack OUR Marsh. As a legal or domestic policy
matter, we withdraw
objection to the signing of the bill.
CC: Paul O'Neill
Ted Marrs
Lynn May
FORD
LIBRARY
Selection of "bonus lands" by Sealaska Corporation from
within Tongass National Forest. This provision would
permit the Native Southeast Alaska Regional Corporation
(Sealaska) to select some 200, 000 to 250, 000 acres of
"bonus lands" from within the Tongass National Forest.
A. The State of Alaska and the Sierra Club both
support this selection. The State originally
had a number of resource and social conflict
problems with the provision, all of which were
resolved to its satisfaction. The following
excerpts from the testimony of Guy R. Martin,
Alaska's Commissioner of Natural Resources,
before the Senate Interior and Insular Affairs
Committee explains much of the State's
reasoning:
"There is no reason, now that resource
and social conflicts are resolved, why
SEALASKA should not be entitled to
acquire commercial forest lands in
Southeastern Alaska. The lands involved
are to be logged at any event, and the
State can see no appreciable difference
between SEALASKA as a merchandiser
and the Forest Service. If anything,
the State, under the circumstances,
must favor SEALASKA.
First, SEALASKA cannot, as the
Forest Service and its logging contractors
do, invoke the Supremacy Clause to avoid
and violate State laws which protect
salmon spawning streams from the felled
trees and other disruptions of logging.
With casual disregard for Alaska's fore-
most industry, the Forest Service lays
out and logs one important drainage
after another. Second, unlike the
Forest Service, SEALASKA, as a private
and not Federal, forest manager, will be
subject to a forest practices act. Third,
SEALASKA, unlike the Forest Service,
will log in accordance with State law,
LIBRARY
- 2 -
economics, and silvicultural demands -- -
not in accordance with the mystical
slogan: Old, decadent trees must go;
new, thrifty, young trees will grow. 11
B. The Joint Federal-State Land Use Planning Commission
for Alaska also supports the provision for selection
from the National Forest as a "full and fair solution"
to the problems with Sealaska's entitlement and as
a provision which "minimizes[ing] adverse social,
environmental, and land management impacts. "
The excerpts reproduced below are from the
testimony of David S. Jackman, State Co-Chairman
of the Joint Commission before the Senate Interior
Committee. Mr. Jackman was speaking for the
Commission:
"The Sealaska proposal would confine regional
selections to lands previously withdrawn for
village selection which were not selected by
the village corporations. This would avoid
potential conflicts with certain areas with-
drawn under wither Section 17(d)(1) or
(d) (2) of the Settlement Act, and with other
sensitive resource areas. In addition, the
consolidation of private land ownership
within the village withdrawals, as required
by the amendment, should facilitate the
development of sound management programs
by Sealaska and its constituent villages,
as well as permit the continuance of good
land ownership patterns and management
practices within the national forest.
The amendment would protect certain
lands on Admiralty Island having important
natural values by precluding selections
from within the Angoon Village withdrawal
FORD
- 3 -
Key portions of the withdrawal, including the well known Mitchell Bay area, contain
valuable scenic, fisheries, and wildlife resources. Because of this, land and
estuarine areas within the Angoon withdrawal are used extensively by the residents
of Angoon and the general public for recreational and subsistence purposes, and
the living resources dependent on these areas are important for the entire region.
Negotiations which have taken place over the last three months indicate that the
land use conflicts created by further private ownership on Admiralty Island,
with the concomitant possibility of large-scale timber harvesting, would have
been difficult to resolve.
The amendment will also provide a mechanism for protecting important public
resource values within the Yakutat and Saxman withdrawals by requiring concur-
rence by the Governor of Alaska in selections from these areas. In these two
cases, existing values and patterns of public use do not appear to require a total
prohibition against selection, and a procedure requiring the Governor's concur-
rence should assure that Sealaska's selections are consonant with environmental
protection, and other public and community needs.
Although important natural values also exist within other village withdrawals, we
believe that many of the most critical areas would be protected by the preclusions
and limitations just discussed. In addition, requirements specified in State law,
including statutes relating to the protection of water quality and anadromous fish
streams, and in regulations implementing the Settlement Act, most notably those
regulations dealing with the compactness and contiguity of Native land selections,
will help to insure that Sealaska's selections and future land use are compatible
with the objectives previously discussed. It should also be noted in this regard
that until 1983, the harvesting of timber from Sealaska's land will remain subject
to the sustained yield and other environmental stipulations contained in Section
22 (k) (2) of the Settlement Act and that Sealaska has expressed support for the
enactment of a state forest practices act which would require the use of sound
timber management and harvest techniques on all private lands.
Finally, the Sealaska amendment requires selections from many areas which the
Forest Service has already earmarked for future timber harvest. Accordingly,
even assuming Sealaska would embark on a timber harvesting program, enact-
ment of the amendment would not create major changes in anticipated land use
for most of these areas. Rather, the amendment would serve to transfer revenues
and other benefits to Sealaska through the revenue sharing formula in the
Settlement Act, to the other eleven regional corporations - in further satisfaction
of the objectives of the settlement legislation enacted in 1971.
140
Exemption from Federal securities laws. This provision would
exempt the Native Corporations from the operation of the
securities laws administered by the Securities and Exchange
Commission until 1991 (until that date Native corporate stock
cannot be alienated). The rationale behind the exemption
involves congressional belief that the complex and highly
technical requirements of the securities laws would be costly
and involve extended administrative delays. The legislative
history indicated the congressional belief that the laws of the
State of Alaska are adequate to protect the Natives and that the
Federal laws can be reimposed if experience proves this to be
necessary.
A. Provision for 15-year exemption from Investment
Company Act of 1940.
The House Report explains in detail the reasons
behind the exemption provision. Particular problems
have arisen to date: (1) with the SEC staff's inclusion
of "certificates of deposit" as "investment securities"
within the definition of the 1940 Act; and (2) with
Section 17 of the Act as it has affected the right of
village corporations to merge on a regional basis.
The section of the House Report on the exemption
from the 1940 Investment Company Act is attached
at Tab A.
B. Protection of Stockholders.
One of the reasons for the SEC's opposition to the
temporary exemption from the securities laws
is its concern about protecting Native stockholders
(under section 17 of the 1940 Act) from the
possibility of corporate officer mismanagement
to the detriment of the stockholders. In answer
to this concern, it has been argued that the
stockholders of the corporations would be
protected by reason of Alaska's own securities
laws and other state statutes, as well as the
more general common law principles which are
applicable to corporations and their stockholders,
For example, Alaska statutes make it a crime
for corporate officers to steal or embezzle
LIBRARY
corporate funds (AS 11. 20. 140, 11.20.280), to
falsify corporate records (AS 11. 20. 430), or
to attempt to defraud by making false statements
about the corporation's financial position (AS
11. 2u. 440). In addition, common law principles
- 2 -
put the corporate officials in a fiduciary
relationship to the corporation and the
stockholders, and they are personnally
liable for breach of that duty. In this
connection, the legislative history of
S. 1469 makes clear Congress' intent
that Alaska courts "look to precedents
under Federal securities laws for
appropriate standards of conduct by
management
11 H. Rept. 94-729
at 20. Native corporations have also
assured the House Interior Committee
that they "intend to pursue the passage
of State legislation to the extent necessary
to provide any appropriate additional
protection. 11 Id.
The temporary exemption is viewed by Congress as
experimental in nature. The Secretary of the Interior retains
oversight functions with respect to ANCSA
corporations and those corporations must
submit annual audits to the Secretary
and to the Congress. 43 U.S.C. §1606(o).
Congress was aware of the possibility
of abuses if the limited exemptions were
enacted, and it addressed this problem in
the Committee reports:
"It should be noted that these
corporations are being exempted
from the federal securities laws
on the understanding that federal
regulation of Settlement Act
corporations is not necessary to
protect Native stockholders or the
public during the twenty-year period
when Native-owned stock cannot be sold.
However, if this assumption proves
invalid in light of experience, the
Committee is prepared to re-impose
such provisions of the federal laws as
may be necessary. In short, the
LIBRARY
twenty-year exemption should be
- 3 -
viewed by the Natives as an experiment
which will be stopped if it is abused. 11
H. Rept. at 20, S. Rept. 94-361 at 18.
The SEC exemption is a necessary aspect of
the merger provisions in section 6 of S. 1469.
That section would allow Native corporations
to merge in order to reduce the burdens of
managerial overhead and limited pools of
Native talent. Due to application of the
Investment Co. Act by the SEC, one merger
has already been frustrated and this could
be viewed as contrary to the fulfillment of
the policy of the Settlement Act.
The Natives believe that regulation by the
Alaska authorities would be more sensitively
attuned to their special situation. The SEC
has proposed a role which it considers to be
specifically tailored to the special nature of
the Native Corporations. However, the
Native groups view the SEC's proposal as
creating great difficulties for transactions
between regional corporations and villages
within a region in opposition to the 1971
Settlement Act's intent that the regions lend
significant managerial and financial assistance
to the villages in recognition of the limited
talent available at the village level.
I have spoken with SEC Chairman Hills, Commissioner Loomis
and General Counsel Pitt today and they all continue to feel
strongly that the Federal securities laws protection is necessary
and that the Alaska State Laws are not adequate. Commissioner
Loomis' letter to Jim Lynn is attached at Tab B. SEC is also
preparing a one-page summary sheet of the problems with the
state statutes which will be added to Tab B if it arrives in time
However, if a Presidential veto is to be decided solely on the
SEC grounds, the General Counsel would like the opportunity tp
LIBRARY
poll the Commission members again.
DEPARTMENT OF AGRICULTURE ARGUMENTS
It is my understanding that the arguments used on page 3
of the USDA "Supplemental Statement" on S. 1469 in opposition
to Section 10 (Sealaska "bonus laws" selection) are inaccurate
for the following reasons: (See Tab C for USDA memo.)
1. USDA contends §10 gives SEALASKA greater
selection rights than intended under the 1971
Settlement Act. It is my understanding that this
is inaccurate. Under theSettlement Act itself,
SEALASKA is entitled to select about 200, 000
acres. Section 10 controls the location of that
selection but does not alter the land size.
2. USDA contends §10 would adversely affect
other regions by reducing the amount of lands
they would receive. It is my understanding
that this is inaccurate. Section 10 cannot have
any effect on the lands allocated under section 12
of the bill. Section 12 does reduce lands allocated
to the regions by the amount conveyed under
section 16, but section 10 of S. 1469 concerns
lands conveyed under section 14 of the 1971
Settlement Act and those lands are not
deducted in making the section 12 allocation.
In fact, the other regions would benefit under
section 10 of S. 1469 since they would share on
a per capita basis in 70 percent of the revenues
generated by development of the forests. The
other 11 regions support section 10 of S. 1469
and their support appears in the legislative record.
3.
USDA states that there are sufficient other lands
in southeastern Alaska to permit selection outside
the Tongass Forest. USDA fails to note that
these "other" lands are either proposed for
inclusion in the Wrengell-St. Elias National
Park or are simply mountaintops.
FORD
17
corporations is subject to prohibitions on sale or disposition, i.e.
December 31, 1991.
A. The Investment Company Act of 1940
The exemption is necessary because of certain "mechanical" pro-
visions of the Investment Company Act and the present uncertain
status under the 1940 Act of Native corporations established pur-
suant to the Settlement Act. The 1940 Act requires highly technical
registration and periodic reports to the Securities Exchange Com-
mission (SEC) from corporations which are by design "investment
companies" as well as corporations which are deemed "inadvertent"
investment companies because more than 40 percent of their total
assets, exclusive of cash and government securities, are held in the
form of "investment securities."
The Native corporations are designed to be operating profitmaking
business corporations. They are not expected to be "investment com-
panies" as that term is customarily used. All of them will eventually
own surface and/or subsurface interests in substantial amounts of
land. Once the corporations are fully organized it is apparent that
many of them will never be "inyestment companies" by virtue of their
intentional business decisións or because they happen to have more
than 40 percent of their non-cash assets in investment securities. The
probable value of certain land interests makes it unlikely that several
of these corporations will ultimately fall under the 1940 Act because
of the 40 percent test.
The structure of the Settlement Act results, however, in substantial
cash flowing to these corporations years ahead of conveyance and eval-
uation of land selections. Over $150 million has been distributed to
Native corporations; whereas land selections have not yet resulted in
title passing to the corporations, selections will not be completed until
the end of 1975, at the earliest, and conveyances will not be completed
for perhaps 15 years.
The Native corporations must do something with the money they are
receiving. They cannot let it lie fallow in checking accounts, yet they
are unprepared now to proceed immediately into profit-oriented busi-
ness for themselves. To meet this problem corporations are to some
extent planning to put money into commercial bank time deposits or
certificates of deposit with interest returns somewhat higher than
savings accounts, but lower than "high-risk" investment ventures.
These plans present another potential problem under the 1940 Act.
While the Court of Appeals for the Second Circuit has held that
"certificates of deposit" are not "investment securities" for 1940 Act
purposes, the SEC staff informally takes a contrary position. Thus the
Native coporations which prudently try to obtain moderate return
by purchasing certificates of deposit may be required to undergo costly
and time-consuming registrations under the 1940 Act only to find that
three years from now when land selections are complete they are no
longer subject to that Act and must then go through costly and time-
consuming procedures to deregister. The end result is extensive paper-
work and a needless waste of time. money, and manpower.
It is too early for these fledgling corporations to know even what
their investment policies and legal and accounting problems may be to
57-006-75-3
FORD : DERALD LIBRARY
18
make registration practicable for them under the Investment Com-
to all stockholders
pany Act. On the other hand, the penalty for failure to register under
which they make the
that Act, even for a company which inadvertently becomes subject to
the 1933 Act is an et
its provisions, are severe. It is the purpose of Section 3 of H.R. 66H.
resulting prospectus
amended, to provide the corporations formed under the Settlement
disclose every last de
Act with turnaround time in order to identify any problems which
should acquire the St
they may ultimately have under the Investment Company Act and to
work out appropriate solutions for such problems internally and in
Corporations attemp
spectus, which had ne
consultation with the staff of the Securities and Exchange Commission.
from the SEC's initi
The SEC has promulgated a temporary rule exempting Native
mitted. consisted of w
corporations which register as investment companies from most of the
financial statements.
provisions of the 1940 Act. Nonetheless, the exemption provided for in
tions involved. In vi
this section is necessary. The Committee is informed that some
stockholders, partien
Regional Corporations have not registered under the SEC temporary
rule and there exists some risk that their corporate acts and contracts
a document clearly i
stockholders. Yet. Sue
might be vulnerable to challenge under the 1940 Act. The exemption
costly to prepare. and
will provide necessary breathing room to the SEC and the Native
well over $100.000. (
corporations in order to permit resolution of long-range solutions.
Another reason for temporarily exempting these entities from the
preclude the possibili
Investment Company Act is to enable them to merge under provisions
tions which might be
of Section 6 of H.R. 6644. In 1975 the NANA Corporation and the
Conversely, the tig
munications which m
eleven Village Corporations in that region agreed on a plan of merger.
virtually preclude an
The Natives-spent about $200,000 in preparation and filing of a pro-
spectus under the Securities Act of 1933. They did so in reliance on a
or community meetin;
"no-action" letter from the SEC advising them that no application
Thus the 1933 Act re
expensive document F
would be necessary under section 17 of the Investment Company Act, a
section which prohibits transactions between "affiliated persons" with-
as to Native corporati
communication.
out a prior order from the SEC that the terms of the transaction are
fair and equitable. At the last moment, however; the SEC withdrew
Similarly, applicat
their no-action letter, insisted on a section 17 application, and advised
necessary during the I
that no action would be taken on the application until extensive public
Act applies to corpor:
hearings had been held. This administrative procedure imposes such
in assets. An exemptic
1940 Investment Com
substantial costs that merger may be impracticable. Since the very pur-
porations and approx
pose of the merger authority in section 6 is to reduce administrative
subject to the 1934 A
expense and overhead, it is appropriate at the same time to eliminate
with the SEC, the fili
unnecessary expenses and delays imposed by federal securities laws.
the detailed proxy rule
B. The Securities Act of 1933 and the Securities Exchange Act of
reasons discussed abo'
1934
have little proper app
During the 20 year period when Native stock cannot be sold or
their intended purpos
transferred it is not necessary to subject these corporations to the ex-
Congressman Lloyd J.
ing the corporations fr
pense and administrative burdens of compliance with the 1933 Securi-
Act as "a statute which
ties Act and the 1934 Securities Exchange Act. Until December 1991,
there will be no "market" in the stock of Native corporations since the
and the investing publ
Since the stock of N
stock is inalienable. Therefore it does not seem necessary to subject
"public" may not inve
these corporations to the requirements of registering stock under the
application to these COI
1933 Act. The SEC has itself recognized that the 1933 Act need not be
Although the SEC
applied to those corporations in certain cases when it issued a "no-
action" letter regarding the issuance of the initial shares of stock to
form the "investing pu
do provide useful infor
Natives enrolled in Regional and Village Corporations.
The exemption from the 1933 Act is also needed to effectuate the
ing public. Accordingl
vides that any Native
merger authority in section 6. The 1933 Act requires that the stock
that section, would be S
be registered with the SEC, and a prospectus prepared and mailed
FORD
GERALD
LIBRARY
AND
EXCHANGE
SECURITIES
COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
MCMXXXIV
OFFICE OF
THE COMMISSIONER
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D.C. 20503
Re: S. 1469, 94th Congress; amendments to the
Alaska Native Claims Settlement Act
Dear Mr. Lynn:
In the absence of the Chairman, I am responding to the
December 22, 1975, request of Mr. Countee of your staff for the
Commission's views on S. 1469, a bill to amend the Alaska Native
Claims Settlement Act of 1971, 43 U.S.C. 1609-24. The Congress
passed this legislation on December 16, 1975, and, accordingly,
we understand that your office will shortly advise the President
whether he should sign or veto it. As we have indicated in
previous correspondence with your office (copies of which are
attached), the Commission strongly opposes Section 3 of S. 1469,
which would totally exempt, through 1991, corporations organized
pursuant to the Settlement Act (ANCSA corporations) from the
federal securities laws. We realize that your determination of
whether to advise that the President veto the bill must depend on
a weighing of the merits of the legislation as a whole, and that
the Commission's expertise does not extend to the broader issues
concerning the relationship between the federal government and
the Alaska natives. This Commission, however, adheres to its
opposition to the exemption in Section 3, and, accordingly
recommends in favor of a veto on that basis. Perhaps, after a
veto, Congress could reconsider the enactment of similar legis-
lation which omits the exemptive provisions of Section 3.
The Commission has dealt with the securities problems
arising from the Settlement Act during the past two years. In
that period, we have become well acquainted with the origin and
unique characteristics of the ANCSA corporations and with the
purposes which those entities are expected to fulfill. Based on
FORD
that experience, the Commission believes that the interests of
the Alaska native shareholders would be seriously disadvantaged,
GERALD
LIBRARY
The Honorable James T. Lynn
Page Two
and the objectives of the Settlement Act thwarted, since the Act
makes unavailable to the Alaska native shareholders the protections
afforded by the federal securities laws, particularly those pro-
vided by the Investment Company Act of 1940. While the specific
grounds for our objections to legislation such as S. 1469 have
been developed in detail in the prior correspondence, we have
summarized below certain salient points.
Our immediate concerns and emphasis upon Investment Company
Act protections for these shareholders stem from two basic conditions
which resulted from the passage of the Settlement Act and which
have not changed materially during the past two years. First, the
assets of the ANCSA corporations consist predominantly of sub-
stantial pools of liquid capital, presently representing an
aggregate of approximately $270,000,000 in Settlement Act appro-
priations. Second, it appears that the majority of shareholders
of these companies are unsophisticated in corporate and investment
matters.
Under these circumstances, there is reason to believe that
the managers of the ANCSA corporations, as trustees of large
amounts of capital readily convertible into cash, might be subject
to the same human temptations and potential for conflict of
interest which gave rise to the passage of the Investment Company
Act. That law was enacted upon the basis of findings made by
the Commission in its exhaustive study of abuses suffered by
investment company shareholders during the 1920's and 1930's. One
of the primary abuses was the operation of investment companies
for the benefit of insiders such as officers, directors and invest-
ment advisers, and other affiliated persons, or for the benefit
of brokers and dealers, or special classes of security holders of
such companies.
Pursuant to Section 17 of the Investment Company Act, the
Commission is authorized to review transactions between invest-
ment companies and their affiliates prior to their consummation
to determine whether such transactions are fair and involve no
disadvantage to investment company shareholders. This provision
thus provides protection for investment company shareholders
LIBRARY
The Honorable James T. Lynn
Page Three
which the antifraud provisions of the other securities laws do
not provide. Moreover, unlike the prohibitions of the antifraud
provisions of the other securities laws, which apply only to the
purchase or sale of a security, Section 17 of the Investment
Company Act provides for Commission review of affiliated trans-
actions regardless of the nature of the property involved, be it
securities, cash, other forms of personal property, or real
property.
We believe that this aspect of the greater scope of Section
17 will be highly significant in the case of the ANCSA corpora-
tions, because they are expected to be dealing with each other in
affiliated land transactions and other types of ventures not
involving the purchase or sale of a security. We have already
reviewed two such transactions involving ANCSA corporations and
difficult questions of land valuation. In this connection it is
important to bear in mind the size of the ANCSA corporations,
in terms of the aggregate value of their assets. The Settlement
Act calls for the distribution of nearly one billion dollars
in cash to the ANCSA corporations over a period of approximately
ten years. They are also entitled to approximately 40 million
acres of land in the State of Alaska, having an as yet undetermined,
but obviously enormous value.
The Commission is sensitive to the fact that the full
regulatory burdens to which traditional investment companies
are subject should not be imposed on the ANCSA corporations.
In February of 1974, the Commission adopted Rule 6c-2 (T) [17
C.F.R. 270.6c-2] under the Investment Company Act, which exempts
those ANCSA corporations which register as investment companies
under the Act from all but five provisions of the Act. This
rule is a temporary measure, and we expect it to be superseded
by the proposed permanent rule, Rule 6c-2, which the Commission
issued for comment on August 22, 1975. Although Rule 6c-2 would
increase somewhat the regulatory burden upon the larger ANCSA
corporations which register beyond that imposed under the temporary
rule, such additional requirements constitute what we consider the
minimum protections that are necessary and appropriate to the
protection of the interests of the Alaska native shareholders.
LIBRARY
The Honorable James T. Lynn
Page Four
As to the effect of the Securities Exchange Act of 1934
on the ANCSA corporations, it is probable that a number of the
larger corporations will become subject to the reporting provi-
sions of that Act if and when they cease to be investment
companies by engaging in some operating business, such as land
development. The Exchange Act was designed primarily to prevent
fraud in the purchase and sale of securities and to provide
investors with material information upon which to base invest-
ment decisions. This Commission feels strongly that the require-
ment for public disclosure of material activities conducted by a
publicly-held corporation, as well as the public disclosure of
material benefits personally derived by those individuals entrusted
to manage the affairs of such companies, affords important protec-
tion to the individual shareholders. We believe that such
disclosures frequently form the only basis on which the owners
can judge the stewardship and competency of those chosen to manage
their company. Further, such disclosures are often the only source
of adequate information available to stockholders or their legal
representatives in determining their rights and remedies under
applicable laws.
I trust that the foregoing will assist you in advising
the President as to the Commission's position on Section 3 of
S. 1469. Should you determine that you need additional informa-
tion on this matter, please do not hesitate to contact us.
Sincerely,
Philip A. Loomis, Jr.
Commissioner
Enclosures
GERALE FORD LIBRART
J
2
Section 4 - Food Stamp Eligibility
Section 4 of S. 1469 amends the Alaska Native Claims Settlement Act to
state that any compensation, remuneration, revenue, or other benefits
received by any member of such household under the Settlement Act shall
be disregarded in determining the eligibility of any household to participate
in the Food Stamp Program. We are opposed to this language, because it is
too broad and could cause the Food Stamp Program to have to disregard as
income and resources payments from timber and mineral rights and corporate
salaries and as a result wealthy households could become eligible.
We believe that all money available to any household should be considered
as income and that all households should be treated in the same manner
regardless of their source of income or resources. In addition, we believe
that this is the only way to maintain national eligibility standards which
is a requirement of the Food Stamp Act.
Section 10 - Sealaska Amendment
Section 10 of S. 1469 would amend section 16(b) of the Settlement Act to
permit Sealaska Regional Corporation to select the lands to which it is
entitled under section 14(h)( (8) from lands withdrawn for but not conveyed
to Village Corporations within the Region. However, Sealaska could not
select lands on Admiralty Island and, without the consent of the Governor
of Alaska, could not select lands in the Saxman and Yakutat withdrawal
areas.
The Department of Agriculture is strongly opposed to this provision.
An important aspect of the balance achieved by the Alaska Native Claims
Settlement Act (ANCSA) was the special treatment of land selection by
the natives of southeast Alaska. In 1968 the Court of Claims entered
judgment in behalf of the Tlingit and Haida Indians of southeast Alaska
in the amount of some $7.5 million. Most of this amount represented
compensation for the Federal taking of land which became the Tongass
National Forest. In formulating ANCSA, the Congress recognized this
cash settlement. It also recognized that the value of lands in south-
east Alaska with its water access and commercial timber is greater than
that of other regions in Alaska and that there was a need to prevent
conflict between the purposes of the Act and the purposes for which the
National Forests were established. Accordingly, under ANCSA, the
southeast native village corporations were limited to selections of
23,040 acres each, and the Southeast Regional Corporation (Sealaska)
was excluded from land selection under section 12. The only land which
Congress entitled Sealaska to select was a share of the balance of the
two million acres withdrawn under section 14(h). By specifically
authorizing conveyances from the National Forests for section 14(h) (1)
(2), (3), and (5), it is clear that Congress did not intend for 14(h)
FORD
(8) conveyances to be made from National Forest lands.
LIBRARY
3
Section 10 of S. 1469 would alter the balance of the Settlement Act by
awarding Sealaska a greater settlement than Congress intended and by
giving Sealaska selection rights on lands for which compensation has
already been granted. It would also have a detrimental effect on land
selections by the other Regional Corporations and represent an inequity
to them. First, by amending section 16, the Sealaska amendment would
affect the formula under section 12 which governs the amount of lands
that all other Regional Corporations may select and would reduce the
amount of lands to which these corporations are entitled. The effect
would be to prevent the conveyance of the full 40 million acres pro-
vided for in the Act. Secondly, Sealaska Region would receive 14(h)(8)
lands of far greater surface value than would the other Regional
Corporations. Moreover, if section 10 is enacted, it is probable that
the Chugach and Koniag Regions would desire similar treatment for their
entitlements under 14(h)(8). These Regions are claiming difficulty in
selecting the full amount of lands to which they are entitled under
section (c) because of the limitation on selections from the National
Forests and the National Wildlife Refuge System.
In our view, section 10 represents the kind of conflict between National
Forest purposes and the interests of the Alaska Natives that ANCSA sought
to eliminate. Section 10 would likely result in an additional 200-250,000
acres being withdrawn from the Tongass National Forest. These lands con-
tain the full range of resource values for which the National Forest was
established. The public values include significant wildlife habitat,
recreation use areas, access to major fishing areas, and lands suited to
timber harvest. We believe the benefits of multiple resource management
can best be achieved by retaining these lands as part of the National
Forest System.
There are sufficient D-1 lands within southeastern Alaska to provide for
Sealaska Corporation's selection as originally contemplated in the Alaska
Natives Claims Settlement Act. We believe that selections from these
lands, which are known to be mineralized, would be comparable to lands
available to other regional corporations under section 14(h)(8) of the
Act.
Section 12 - Cook Inlet Settlement
Section 12 of S. 1469 would legislate an agreement between the State of
Alaska, the Cook Inlet Regional Corporation, and the U.S. Department of
the Interior to resolve land entitlement difficulties experienced by
Cook Inlet.
There are no National Forest lands involved in this agreement. However,
we are informed that, although some of the Department of the Interior FORD
agencies support the terms of this agreement, the Secretary of the
Interior has not had the opportunity to review the agreement and has
expressed a desire to do SO.
LIBRARY
Legist Term
THE WHITE HOUSE
WASHINGTON
February 15, 1975
MEMORANDUM FOR:
JAMES CAVANAUGH
FROM:
KEN LAZARUS
THRU:
PHILIP BUCHEN T.W.B.
SUBJECT:
Health Legislation Memo (Log. No.
63)
Health Services -- any bill which is submitted should
incorporate the 1975 and 1976 budget decisions but HEW
should be given authority to negotiate on 1976 policy
to the extent that we may be forced to: (1) abandon a
reduction in funding authorizations and/or (2) maintain
or soften the proposed matching requirements. Emphasis
should be continued on need for revenue sharing or block
grant approach to funding.
Nurse training -- bill should incorporate features of
budget decisions. Some authority to negotiate on
funding authorization levels should be given to HEW.
Health manpower -- support option B, but allow HEW to
negotiate (1) standards on foreign medical graduates
and (2) pace of phaseout on capitation subsidies.
FORD
GENALD
LIORARY
THE WHITE HOUSE
WASHINGTON
Date 2/15/75
TO: phil Buchen
FROM: DUDLEY CHAPMAN
Judy Johnston 5ays
Jim Cavanavsh isperiting
for This.
I have nothing toadd
TO Ken's amments.
GERAL 0 LIBRARY FURO
THE WHITE HOUSE
WASHINGTON
February 15, 1975
J.m caranans
MEMORANDUM FOR:
Phil Areeda
FROM:
Ken Lazarus
Thru
P.W.B. B.
SUBJECT:
Health Legislation Memo (Log No. 63)
I have made a cursory review (15 min. ) of the subject memo and offer
the following:
Health Services--any bill which is submitted should incorporate the 1975
and 1976 budget decisions but HEW should be given authority to negotiate
on 1976 policy to the extent that we may be forced to: (1) abandon a
reduction in funding authorizations and/or (2) maintain or soften the
proposed matching requirements. Emphasis should be continued on
need for revenue sharing or block grant approach to funding.
Nurse training--bill should incorporate features of budget decisions.
Some authority to negotiate on funding authorization levels should be
given to HEW.
Health manpower support option B, but allow HEW to negotiate (1)
standards on foreign medical graduates and (2) pace of phaseout
on capitation subsidies.
FORD . LIBRARY GERVIN
THE WHITE HOUSE
CTION MEMORANDUM
WASHINGTON
LOG NO.: 63
Date: February 14, 1975
Time:
7:15 p.m.
FOR ACTION: Pam Needham
CC (for information): :
Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: Saturday, February 15
Time: 11:00 a.m.
SUBJECT:
Health Legislation memorandum (Lynn)
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
JERALD R. FORD LIBRARY
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
deldy in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
Biester
THE WHITE HOUSE
WASHINGTON
(5 (50ther (o-signer) other
Ken:
Will you please
follow propress on
this matter.
M. Leigh of State
has called me on this
matter 9 [expressed
his concerns to our
Long ressional Relations
people. If you have any tactical
suggestions, put them P. In,
CERALD R. FORD LIBRARY
THE WHITE HOUSE
WASHINGTON
March 7, 1975
MEMORANDUM FOR:
PHIL BUCHEN
THROUGH:
MAX FRIEDERSDORF
m.6.
FROM:
VERN LOEN
VL
SUBJECT:
H.R. 4438 - Executive Agreements
Limitation bill
This measure was introduced Thursday with bipartisan support,
based on the attached memo prepared by a junior staff man on the
majority side of the House Foreign Affairs Committee (George Burdus).
The six Republicans who cosponsored went along with the idea that
it was an extension of the assertion of Congressional powers, similar
to the War Powers bill, and would give the House committee some
of the action the Senate holds on treaty ratification.
The Republican cosponsors were: Biester (Pa), Burke (Fla), duPont (Del)
Findley (Ohio), Guyer (Ohio) and Whalen (Ohio). They were stirred up
by recent statements dealing with the recognition of Cuba and the
possibility of giving the Panama Canal to Panama.
State Department representatives and I met with Rep. Bill Broomfield
(R-Mich), ranking Republican member of Foreign Affairs, yesterday
and warned him of the dangers and indeed, the possible unconstitutionality
of the bill. Senator Ervin got a similar measure through the Senate
last year. The fact that it is starting in the House with bipartisan
sponsorship makes it more dangerous this year, particularly since
some Members feel the executive agreements power has been abused.
I called Reps. Guyer, Findley and Burke, but the bill already had been
introduced. They had not really focused on it and had been taken in
by the staff man. Guyer went so far as to have his name removed
from the bill and Burke indicated he would try. Findley is receptive
FORD
GERALD
LIBRARY
-2-
to amendments making it acceptable to the Administration
(perhaps a sense-of-Congress resolution?). State's strategy
is to try to delay hearings in Zablocki's subcommittee until the
Secretary returns and can explain ramifications to Zablocki,
Findley, et al.
FORD i LIBRARY GERALD
Committee mr Foreign Affairs
February 13, 1975
MEMORANDUM
TO:
Representatives Zablocki, Hays, Fountain, Fascell, Nix, Fraser,
Bingham, Wilson, Broomfield, Findley, du Pont and Biester
FROM:
The Honorable Thomas E. Morgan, Chairman chaliman...
SUBJECT: Co-sponsorship of an Executive Agreements Bill
One of the major pieces of legislation of the 94th Congress in the
foreign affairs area is likely to be a bill requiring the executive branch
to submit so-called executive agreements to Congress for its approval. (See
attached Christian Science Monitor article). Several bills on the subject
have already been introduced in the House and Senate this year. These bills
are either identical to, or slightly altered versions of, the Ervin bill,
S 3830, which the Senate passed in December but which subsequently was re-
ferred to the Rules Committee in the House where it died.
Together with our colleague the Honorable Clement J. Zablocki, I intend
to introduce, as soon as possible, an executive agreements bill which would
be a distinctive Foreign Affairs Committee offering on the subject. We
would like to have as co-sponsors, those Committee members who co-sponsored
the War Powers Resolution. The bill is attached for your consideration.
This bill differs from the Ervin bill and others on the subject by e=
ploying a selective rather than all-inclusive approach and seeking to reach
only those executive agreements which concern significant national commi
As defined in Section 5 of the bill this would include agreements regarding
U.S. military bases abroad, intervention or use of U.S. troops abroad, and
military, security, economic, or financial assistance.
Please note that unlike War Powers this bill does not reach to the actual
use of U.S. troops or other actual assistance but only to executive agreements
concerning the same. Also there is a disclaimer in paragraph 4 to provide
explicitly that the provisions of the War Powers Resolution prevail in
situation where both laws might be interpreted to pertain.
FORD : LIBRARY GERALD
If you would like to co-sponsor this bill, please have your secretary
call Jim Schollaert of the Committee staff at your earliest convenience.
will also be glad to discuss or answer any questions regarding the provisions
of the bill.
Enclosures
94th CONGRESS
SESSION
H.R.
IN THE HOUSE OF REPRESENTATIVES
Mr.
introduced the following bill; which was referred
to the Committee on
A
BILL
To provide for congressional review of international
executive agreements which create a national commitment
(Insert title of bill here)
1
Be it enacted by the Senate and House of Representatives of the United
2
States of America in Congress assembled, that this Act may be cited as
the "Executive Agreements Review Act of 1975".
Section 2. The Congress finds that its foreign affairs power to
share in the making of important international agreements, as pro-
vided by the Constitution, has been abridged through the Executive
Branch practice of using, in place of treaties or other Congression-
ally approved agreements, so-called executive agreements which are
not submitted to Congress for approval. It is the purpose of this
Act to reassert this foreign affairs power of the Congress by
requiring the Executive Branch to submit each executive agreement
concerning the establishment, renewal, continuance or revision of
GERALD FORD LIBRARY
a national commitment, as hereinafter defined, to the Congress for
review.
Section 3 (a). Each executive agreement entered into after the
date of enactment of this Act, concerning the establishment, renewal,
continuance or revision of a national commitment shall be transmitted
long volung R
V legislation
THE WHITE HOUSE
WASHINGTON
Hen: This meeting
was cancelled
and has not been
rescheduled 8
talled to Ruck
Carsons. Our
envolvement in the
future well be
M meeting with
you he 4 blad in the Ruture R
FORD i LIBRARY
THE WHITE HOUSE
WASHINGTON
April 16, 1975
MEMORANDUM FOR:
PHIL BUCHEN
FROM:
KEN LAZARUS
SUBJECT:
H.R. 1686: Federal Voter Registration bill.
As you may know, the President is scheduled to meet at 5 p.m.
today with a group of Congressmen, the Attorney General and
Dick Parsons on the referenced bill.
H.R. 1686 would establish a Voter Registration Administration
to operate a voter registration program for all federal elections.
The effect of the measure would be to provide federal oversight
of state registration processes in an effort to prevent fraudulent
registrations. Although the bill goes to great lengths to avoid the
establishment of federal voter qualifications, it nonetheless does
present an issue of constitutional dimension.
Article 1, Sec. 2, cl. 1 of the Constitution vests in the states
the responsibility, now limited, to establish voter qualifications
for congressional elections. However, judicial doctrine has
held that the right to vote for members of Congress is derived
from the federal Constitution and that Congress therefore may
legislate under Art. 1, Sec. 4, C1. 1 to protect the integrity of
this right but it cannot provide different voter qualifications
than those provided by the states.
In view of the fact that this meeting will involve the discussion
of a distinctly legal issue, you may want to give some consideration
to having a member of our office in attendance.
&
FORD
SCRALD
LIBRARY
94TH CONGRESS
1ST SESSION
H.R. 1686
2
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 1975
Mr. HAYS of Ohio introduced the following bill; which was referred to the
Committee on House Administration
A BILL
To establish a Voter Registration Administration within the Gen-
eral Accounting Office for the purpose of administering a
voter registration program through the Postal Service.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Voter Registration Act".
?
4
DEFINITIONS
5
SEC. 2. As used in this Act-
6
(1) the term "Administration" means the Voter
7
Registration Administration;
8
(2) the term "State" means each State of the
9
United States, the political subdivisions of each State,
FORD & LIBRARY 07V839
I
2
1
the Commonwealth of Puerto Rico, the Virgin Islands,
2
Guam, and the District of Columbia;
3
(3) the term "Federal office" means the office of
4
the President, the Vice President, an elector for Presi-
5
dent and Vice President, a Senator, a Representative, or
6
a Delegate to the Congress;
7
(4) the term "Federal election" means any bien-
8
nial or quadrennial primary or general election and any
9
special election held for the purpose of nominating or
10
electing candidates for any Federal office, including any
11
election held for the purpose of expressing voter pref-
12
erence for the nomination of individuals for election to
13
the office of President and any election held for the pur-
14
pose of selecting delegates to a national political party
15
nominating convention or to a caucus held for the
16
purpose of selecting delegates to such a convention;
17
(5) the term "State election" means any election
18
other than a Federal election; and
19
(6) the term "State official" means any individual
20
who acts as an official or agent of a government of a
21
State or political subdivision thereof to register qualified
22
electors, or to conduct or supervise any Federal election
23
in a State.
24
ESTABLISHMENT OF ADMINISTRATION
25
SEC. 3. (a) There is established within the General Ac-
FORD : LIBRAR 038860
26
counting Office the Voter Registration Administration.
3
1
(b) The President shall appoint, by and with the advice
2 and consent of the Senate, an Administrator and two Asso-
3 ciate Administrators for terms of four years each, who may
4 continue in office until a successor is qualified. An individual
5 appointed to fill a vacancy shall serve the remainder of the
6 term to which his predecessor was appointed. The Associate
7. Administrators shall not be members of the same political
8 party. The Administrator shall be the chief executive officer
9 of the Administration.
10
DUTIES AND POWERS
11
SEC. 4. The Administration shall-
12
(1) establish and administer a voter registration
13
program in accordance with this Act for all Federal
14
elections;
15
(2) collect, analyze, and arrange for the publica-
16
tion and sale by the Government Printing Office of
17
information concerning elections in the United States
18
(but this publication shall not disclose any information
19
which permits the identification of individual voters) ;
20
(3) provide assistance to State officials concern-
21
ing voter registration-by-mail and election problems
22
generally;
23
(4) obtain facilities and supplies and appoint and
24
fix the pay of officers and employees, as may be neces-
FORDO & LIBRARY 038870
25
sary to permit the Administration to carry out its duties
4
1
and powers under this Act, and such officers and em-
2
ployees shall be in the competitive service under title 5,
3
United States Code;
4
(5) appoint and fix the pay of experts and consult-
5
ants for temporary services as authorized under section
6
3109 of title 5, United States Code;
7
(6) provide the Congress with such information as
8
the Congress may from time to time request, and pre-
9
pare and submit to the President and the Congress a
10
report on its activities, and on voter registration and
11
elections generally in the United States, immediately
12
following each biennial general Federal election; and
13
(7) take such other action as it deems necessary
14
and proper to carry out its duties and powers under this
15
Act.
16
QUALIFICATIONS AND-PROCEDURE
17
SEC. 5. (a) An individual who fulfills the requirements
18 to be a qualified voter under State law and who is registered
19 to vote under the provisions of this Act shall be entitled to
20 vote in Federal elections in that State, except that each State
21 shall provide for the registration or other means of qualifica-
22 tion of all residents of such States who apply, not later than
23 thirty days immediately prior to any Federal election, for
24 registration or qualification to vote in such election.
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5
1
(b) Whenever a Federal election is held in any State,
2 the Administration may, upon the request of any State official,
3 furnish officers and employees and such other assistance as
4 the Administration and the State official may agree upon to
5 assist State officials in the registration of individuals applying
6 to register in that State under the provisions of this Act.
7
REGISTRATION FORMS
8
SEC. 6 (a) The Administration shall prepare voter
9 registration forms in accordance with the provisions of this
10 section.
11
(b) Printed registration forms shall be designed to pro-
12 vide a simple method of registering to vote by mail. Regis-
13 tration forms shall include matter as State law requires and
14 as the Administration determines appropriate to ascertain
15 the positive identification and voter qualifications of an indi-
16 vidual applying to register under the provisions of this Act,
17 to provide for the return delivery of the completed registra-
18 tion form to the appropriate State official, and to prevent
19 fraudulent registration. Registration forms shall also include
20 a statement of the penalties provided by law for attempting
21 fraudulently to register to vote under the provisions of this
22 Act.
(c) A registration notification form advising the appli-
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23
24 cant of the acceptance or rejection of his resignation shall
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25 be completed and promptly mailed by the State official to
1 the applicant. If any registration notification form is undeliv-
2 erable as addressed, it shall not be forwarded to another
3 address but shall be returned to the State official mailing the
4 form. The possession of a registration notification form indi-
5 cating that the individual is entitled to vote in an election
6 shall be prima facie evidence that the individual is a qualified
7 and registered elector entitled to vote in any such election
8 but presentation of the form shall not be required to cast
9 his ballot.
10
DISTRIBUTION OF REGISTRATION FORMS
11
SEC. 7. (a) The Administration is authorized to enter
12 into agreements with the Postal Service, with departments
13 and agencies of the Federal Government, and with State
14 officials for the distribution of registration forms in accord-
15 ance with the provisions of this section.
32
16
(b) Any agreement made between the Administration
17 and the Postal Service shall provide for the preparation by
18 the Administration of sufficient quantities of registration forms
19 so that the Postal Service can deliver a sufficient quantity of
20 registration forms to postal addresses and residences in the
21 United States and for the preparation of an ample quantity
22 of such forms for public distribution at any post office, postal
23 substation, postal contract station, or on any rural or star
24 ronte.
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1
(c) The Postal Service shall distribute the registration
2 forms to postal addresses and residences at least once every
3 two years not earlier than one hundred and twenty days or
4 later than sixty days prior to the close of registration for
5 the next Federal election in each State.
6
(d) The Administration is authorized to enter into
T agreements with the Secretary of each Military Department
-8 of the Armed Forces of the United States for the distribution
9 of registration forms at military installations.
10
(e) This section shall not be construed to place any
11 time limit upon the general availability of registration forms
12 in post offices and appropriate Federal, State, and local
13 government offices pursuant to agreements made under this
14 section.
15
PREVENTION OF FRAUDULENT REGISTRATION
16
SEC. 8. (a) In addition to taking any appropriate action
17 under State law, whenever a State official has reason to be-
18 lieve that individuals who are not qualified electors are
19 attempting to register to vote under the provisions of this
20 Act, he shall notify the Administration and request its assist-
21 ance to prevent fraudulent registration. The Administration
22 shall give reasonable and expeditious assistance in such cases,
23 and shall issue a report on its findings.
24
(b) (1) Whenever the Administration or a State official
25 determines that there is a pattern of fraudulent registration,
FORD & LIBRARY CERALO
8
1 attempted fraudulent registration, or any activity on the part
2 of any individuals or groups of individuals to register individ-
3 uals to vote who are not qualified electors, the Administration
4 or a State official may request the Attorney General to bring
5 action under this section. The Attorney General is authorized
6 to bring a civil action in any appropriate district court of the
7 United States or the United States District Court for the Dis-
8. trict of Columbia to secure an order to enjoin fraudulent reg-
9 istration, and any other appropriate order.
10
(2) The district court of the United States or the United
11 States District Court of the District of Columbia shall have
12 jurisdiction without regard to any amount in controversy of
13 proceedings instituted pursuant to this section.
14
PENALTIES
15
SEC. 9. (a) Whoever knowingly or willfully gives false
16 information as to his name, address, residence, age, or other
17 information for the purposes of establishing his eligibility to
18 register or vote under this Act, or conspires with another
19 individual for the purpose of encouraging his false registration
20 to vote or illegal voting, or pays or offers to pay or accepts
21 or offers to accept payment either for registration to vote or
22 for voting, or registers to vote with the intention of voting
23 more than once or votes more than once in the same Federal
24 election shall be fined not more than $10,000, or imprisoned
25 not more than five years, or both.
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9
1
(b) Any person who deprives, or attempts to deprive,
2 any other person of any right under this Act shall be fined
3 not more than $5,000, or imprisoned not more than five
4 years, or both.
5
(c) The provisions of section 1001 of title 18, United
6 States Code, are applicable to the registration form prepared
7 under section 6 of this Act.
8 FINANCIAL ASSISTANCE
9
SEC. 10 (a), The Administration shall determine the
10 fair and reasonable cost of processing registration forms pre-
11 scribed under this Act, and shall pay to each appropriate
12 State an amount equal to such cost per card multiplied by
13 the number of registration cards processed under this Act
14 in that State.
15
(b) The Administration is authorized to pay any State
16 which adopts the registration form and system prescribed by
17 this Act as a form and system of registration to be a qualified
18 and registered elector for State elections in that State. Pay-
19 ments made to a State under this subsection may not exceed
20 30 per centum of the amount paid that State under subsec-
21 tion (a) of this section for the most recent general Federal
22 election in that State.
23
(c) Payments under this section may be made in in-
24 stallments and in advance or by way of reimbursement, with
25 necessary adjustments on account of overpayments or under-
26 payments.
10
1
REGULATIONS
2
SEC. 11. The Administration is authorized to issue rules
3 and regulations for the administration of this chapter. Such
4 regulations may exclude a State from the provisions of this
5 chapter if that State does not require a qualified applicant
6 to register prior to the date of a Federal election.
7
EFFECT ON OTHER LAWS
8
SEC. 12. (a) Notwithstanding any other provision of
09 this Act, any State that adopts the Federal assistance post
10 card form recommended by the Federal Voting Assistance
11 Act of 1955 (50 U.S.C. 1451 et seq.) with respect to any
12
12 category of its electors (1) shall, insofar as such electors
13- are concerned, be deemed to be in full compliance with the
14 provisions of section 6 of this Act and (2) shall be eligible
15 to receive payments of financial assistance from the Adminis-
16 tration, as provided in section 10 of this Act, on account of
17 the simplified and greater voting opportunities thereby
18 granted to such electors.
19
(b) Nothing in this Act shall be construed to prevent
20 any State from granting less restrictive registration or voting
21 practices or more expanded registration of voting opportuni-
22 ties than those prescribed by this Act.
23
(c) Nothing in this Act shall be construed to limit or
24 repeal any provision of (1) section 202 of the Voting.
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25 Rights Act Amendments of 1970 (42 U.S.C. 1973aa-1),
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11
1 relating to expanded opportunities of registering to vote and
2 voting for electors for President and Vice President; or (2)
3 the Federal Voting Assistance Act of 1955 (50 U.S.C.
4 1451 et seq.).
5
AMENDMENTS TO TITLE 39, UNITED STATES CODE
6
SEC. 13. (a) Section 3202 (a) of title 39, United States
10
7 Code, is amended-
inster
bus
8
(1) by striking out "and" at the end of clause (4) ;
9
(2) by striking out the period at the end of clause
CODE BHEATS CHICKT
10
(5) and inserting in lieu thereof "; and"; and
11
(3) by adding at the end thereof:
odi
12
(6) mail relating to voter registration pursuant
13
to sections 6 and 7 of the Voter Registration Act.".
14
(b) Section 3206 of title 39, United States Code, is
15 amended by adding the following new subsection:
16
(d) The Voter Registration Administration shall trans-
17 fer to the Postal Service as postal revenues out of any
18 appropriations made to the Administration for that purpose
7801
19 the equivalent amount of postage, as determined by the
20 Postal Service, for penalty mailings under clause (6) of
21 section 3202 (a) of this title.".
22
(c) Section 404 of title 39, United States Code, is
23 amended—
24
(1) by striking out "and" at the end of clause (8) ;
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12
1
(2) by striking out the period at the end of clause
2
(9) and inserting in lieu thereof "; and"; and
3
(3) by adding at the end thereof the following new
4
clause:
5
"(10) to enter into arrangements with the Voter
6
Registration Administration of the General Accounting
7
Office-for the collection, delivery, and return delivery
(t
8
of voter registration forms.".
9
AMENDMENT TO TITLE 5, UNITED STATES CODE
10
SEC. 14. Section 5316 of title 5, United States Code, is
11 amended by adding at the end thereof the following new
12 paragraph:
13
"(132) Administrator and Associate Administra-
14
tors (2), Voter Registration Administration, General
15
Accounting Office.".
16
AUTHORIZATION OF APPROPRIATIONS
17
SEC. 15. There are authorized to be appropriated such
18 sums, not to exceed $50,000,000, as may be necessary to
benimmer
19 carry out the provisions of this Act.
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THE WHITE HOUSE
WASHINGTON
April 24, 1975
MEMORANDUM FOR THE PRESIDENT
FROM:
MAX L. FRIEDERSDORF
SUBJECT:
Senate & House Bills on Viet Nam Aid
(S 1484 and HR 6096)
Senate
House
1. $100 M for FY 1975 for
1.
$150 M for FY 1975 for
humanitarian aid withdrawal
humanitarian and evacuation
purposes from South Viet Nam
assistance from South Viet Nam.
as President determines in
national interest.
2. $150 M for humanitarian
2. No comparable provision.
assistance to refugees
in South Viet Nam and
Cambodia.
3. All relief funds controlled 3. No comparable provision.
and administered by U.N.
or other international
agency.
4. Report to Congress every
4. No comparable provision.
90 days on assistance.
5. Provision to use U.S. forces 5. May use U.S. forces if
to evacuate certain citizens
necessary to evacuate U.S.
and dependents.
citizens.
6. Provision with limitation
6.
Vietnamese eligible for
on numbers duration, and
immigration or those whose
areas authorizing President
lives are threatened may be
to evacuate foreign nationals
evacuated.
upon his determination and
certification to Congress.
Waives other limitation in
the law.
7. Requires Presidential report 7. No comparable provision.
FORD & LIBRARY 07VU29
to Congress or use of forces
as required by Sec. 4 (a) of
War Powers Resolution.
-2-
8.
Declares statutory authority 8. Declaration that act does
given herein within meaning
not abrogate War Powers
of War Power Sec. 8 (a) -
Resolution.
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