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1976/10/02 HR11722 Deprivation of Employment on Account of Political Contribution
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1976/10/02 HR11722 Deprivation of Employment on Account of Political Contribution
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The original documents are located in Box 59, folder "1976/10/02 HR11722 Deprivation of
Employment on Account of Political Contribution" of the White House Records Office:
Legislation Case 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 59 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED OCT 2-1976
$10/2
ACTION
THE WHITE HOUSE
WASHINGTON
Last Day: October 9
October 2, 1976
Posted
MEMORANDUM FOR
THE PRESIDENT
10/4/76
FROM:
JIM CANNON
SUBJECT:
H.R. 11722 - Deprivation of
achive
Employment on Account of Political
Contribution
10/4/76
Attached for your consideration is H.R. 11722, sponsored
by Representative Roush and eighteen others.
The enrolled bill prohibits denial of State and local
government employment in Federally-supported programs
for refusal to make a political contribution and expands
the current prohibition against racial and political
discrimination in Federally-funded work relief programs
to cover discrimination based on sex, religion or national
origin.
A discussion of the provisions of the bill is provided in
OMB's enrolled bill report at Tab A.
OMB, Max Friedersdorf, Counsel's Office (Kilberg) and I
recommend approval of the enrolled bill.
RECOMMENDATION
That you sign H.R. 11722 at Tab B.
FORD : LIBRARY
THE
RESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
SECURITY
STATE
ARE
WASHINGTON, D.C. 20503
OCT 1 1976
MEMORANDUM FOR THE PRESIDENT
Subject: H.R. 11722 - Deprivation of Employment on
Account of Political Contribution
Sponsor - Rep. Roush (D) Indiana and 18 others
Last Day for Action
October 9, 1976 - Saturday
Purpose
Prohibits denial of State and local government employ-
ment in Federally-supported programs for refusal to
make a political contribution; and expands the current
prohibition against racial and political discrimination
in Federally-funded work relief programs to cover
discrimination based on sex, religion, or national
origin.
Agency Recommendations
Office of Management and Budget
Approval
Department of Justice
Approval
Civil Service Commission
Approval
Department of Health, Education,
and Welfare
No objection
Advisory Commission on Inter-
governmental Relations
No comment
Civil Rights Commission
No recommendation
Discussion
This legislation would ban the practice, still prevalent
in some State and local governments, under which employees
in, and persons entitled to benefits from, a Federally-
supported program are threatened with loss of employment
or of a benefit, respectively, if they do not make a
contribution to the political party in power. The report
of the House Judiciary Committee uses the State of
2
Indiana as an example of this practice and states, "The
evidence received by the Subcommittee on Criminal Justice
indicated that in Indiana the employees are expected to
contribute 2 percent of their gross salary, giving rise
to what is popularly known as the 'Two Percent Club.
In its attached views letter, the Civil Service Commission
(CSC) advises that it has sought unsuccessfully to prevent
such practices through the Hatch Act, which is applicable
to situations in which both the requesting supervisor and
the employee are employed in connection with a Federally-
financed activity and where there is an indication of
political coercion. According to CSC, States promptly
circumvented the Hatch Act "by the simple expedient of
making sure that the person who dunned employees of Federally-
funded programs was not himself employed in connection with
such a program."
There are presently two sections in the Federal Criminal
Code directed at protecting Federally-funded employment
and relief programs from partisan favoritism. One, 18
U.S.C. 600, makes it a misdemeanor to promise future employ-
ment or other benefits on account of a person's political
activity. The other, 18 U.S.C. 601, which would be amended
by the enrolled bill, makes it a misdemeanor to deny con-
tinued employment or other benefits on such a basis, but
only in programs "provided for or made possible by an Act
of Congress appropriating funds for work relief or relief
purposes." Therefore, current statute does not penalize
extorting political contributions from employees of State
or local governments and from other persons entitled to
benefits from a Federal program, except in Federal relief
programs.
H.R. 11722 would expand the scope of 18 U.S.C. 601 to apply
in any Federally-funded program. As expanded, Section 601
would make it unlawful to force or attempt to force any
person to make a contribution of value, including services,
for the benefit of any candidate or political party by
threatening loss of, or denial of employment in any Federal,
State, or local government agency or program which involves
the use of Federal funds. Denying an individual full entitle-
ment to a benefit under a Federally-funded relief program for
failure to make a political contribution would also be pro-
hibited.
Violation of either 18 U.S.C. 600 or 601, as amended, would
continue to be a misdemeanor, punishable by a maximum one-
year imprisonment, but the enrolled bill would increase the
current maximum fine from $1,000 to $10,000 in both sections.
3
Finally, H.R. 11722 would also re-enact, as a new section
in the Civil Rights chapter of Title 18, that portion of
present 18 U.S.C. 601 regarding denial of employment in
Federally-funded relief programs on account of race, creed,
color, and political affiliation. The bill would add new
forms of discrimination, i.e., "sex, religion, or national
origin." Violation of this new section would also be a
misdemeanor offense, punishable by a maximum fine of $10,000
or imprisonment for one year, or both.
This new section would not contain language, now in 18
U.S.C. 601, which qualifies the broad proscription against
the various forms of discrimination in Federally-supported
relief programs by excepting, in effect, those programs
targeted at certain minority groups. The Civil Rights
Commission expresses its concern, in its attached views
letter, that the bill's deletion of this language might
interfere with the operation of work relief programs
specially targeted at minority-group persons and women who
have suffered prior economic discrimination. Although we
are also uncertain as to the potential effect of this change,
we do not believe that it was Congress' intent to invalidate
its earlier actions with regard to certain minorities,
principally because the legislative history is silent on
this point.
*****
The Department of Justice, in its attached views letter,
states that the "main reason for supporting this legisla-
tion is our belief that the United States has an obligation
to insure that none of the jobs and benefits which are
funded in whole or in part by federal appropriations is
the subject of discrimination on the basis of whether the
victim makes a political contribution. An additional jus-
tification for a federal proscription in this area is the
fact that when abuses of this nature arise, they are
frequently locally sanctioned, either in law or custom, so
that federal intervention is often the only means of halting
the extortionate practice."
Acting Director
Enclosures
UNITED
STATE
CIVIL
COMMISSION
UNITED STATES CIVIL SERVICE COMMISSION
SERVICE
WASHINGTON, D.C. 20415
CHAIRMAN
September 27, 1976
Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Lynn:
This is in response to your request for our views on H.R. 11722,
an act "To amend title 18 of the United States Code to prohibit
deprivation of employment or other benefit for political contri-
bution, and for other purposes.
We have no objection to this bill, but would defer to the views
of the Department of Justice since title 18 of the United States
Code is within the ambit of that agency's responsibility.
This Commission has noted with concern the existence of "kickback"
or "Two Per Cent Clubs" in various States through the years.
We have attempted to reach such situations by means of the Hatch
Act (5 U.S.C. 1501, et seq.) without success. Such attempts were
frustrated by virtue of the Hatch Act's applicability only where
both the requester and the giver are employed in connection with
a Federally financed activity. State organizations were prompt
to circumvent this provision by the simple expedient of making
sure that the person who dunned employees of Federally funded
programs was not himself employed in connection with such a
program. In such circumstances no violation of the Hatch Act
occurred, and the Two Per Cent Club could operate with impunity.
This bill, however, is not similarly restricted in its appli-
cability, since jurisdiction under section 601 of title 18, United
States Code, would devolve from employment, payment or benefit,
"made possible in whole or in part by an Act of Congress", and
would reach any person who seeks a political contribution by
means of denial or deprivation, or threat thereof, of such
employment, payment or benefit. Further, this bill would reach
such situations in a Federal agency as well as in State or local
2
agencies. The change of the maximum fine from $1,000 to $10,000
seems entirely appropriate as does the similar modification of
section 600 of title 18, United States Code, which is provided
for in section 3 of the bill.
Further, the addition of the categories of sex and national origin
to section 246 of title 18, United States Code, and the change of
the maximum fine to $10,000, seem equally appropriate.
In summary, we feel that this bill may have salutory effects
in the century-long attempt to rid this nation of the remnants
of the "spoils system". The Civil Service Commission strongly
favors any law which may have such an effect, and recommends
that the President sign the enrolled bill, H.R. 11722, provided
the Department of Justice interposes no objections.
By direction of the Commission:
Sincerely yours,
UNITED STATES COMMISSION ON CIVIL RIGHTS
WASHINGTON, D. C. 20425
SEP 30 1976
STAFF DIRECTOR
Mr. James M. Frey
Assistant Director
for Legislative Reference
Office of Management and Budget
7201 New Executive Office Bldg.
Washington, D.C.
Dear Mr. Frey:
This is to respond to your request of September 28, 1976 for the views
and comments of the U.S. Commission on Civil Rights on enrolled bill
H.R. 11722 which amends Title 18 of the United States Code. The
Commission is not able to formulate definitive comments on the enrolled
bill in a one-day period. Nevertheless, I would like to share with
you a concern about one aspect of the enrolled bill.
H.R. 11722 alters Title 18 in two respects. First, the bill generally
establishes that the "deprivation of employment or other benefit for
political contribution" is a Federal criminal offense. This substantive
addition to the U.S. Code is effectuated by amendment of the existing
Section 601 of Title 18. Although the establishment of a new criminal
offense for the "deprivation of employment or other benefit for
political contribution" does not relate to the substantive jurisdiction
of the Commission on Civil Rights, I feel that it would minimize
the potential for political corruption.
H.R. 11722 alters Title 18 in a second respect. The bill generally
reestablishes the existing Section 601 of Title 18 as a new Section 246.
The alterations of the existing Section 601 reflected in the proposed
new Section 246 are indicated below (deletions from the existing Section
601 noted by underlining; additions to the existing Section 601 noted
by brackets).
Whoever, except as required by law, directly or indirectly,
deprives, attempts to deprive, or threatens to deprive
any person of any employment, position, work, compensation,
or other benefit provided for or made possible [in whole or
in part] by any Act of Congress appropriating funds for
work relief or relief purposes, on account of [political
affiliation,] race, creed, color, [sex, religion, or
national origin,] or any political activity, support of,
or opposition to any candidate or any political party in
any election, shall be fined not more than $1,000 [$10,000],
or imprisoned not more than one year, or both.
2
In my view, the Commission would have no problem endorsing expansion
of the statute to cover discrimination based on sex or national origin.
I am troubled, however, by the potential effect of the deletion of
the phrase "except as required by law". Specifically, I am concerned
that this deletion might interfere with the operation of work relief
programs which contain targeting mechanisms to provide assistance
to minority-group persons and women who have suffered prior economic
discrimination.
Thank you for the opportunity to comment on enrolled bill H.R. 11722.
If you have any questions, please contact Jim Lyons at 254-6626.
Sincerely,
JOHN A. BUGGS
Staff Director
ASSISTANT ATTORNEY GENERAL
LEGISL ATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
September 27, 1976
Honorable James T. Lynn
Director, Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Lynn:
Pursuant to your request, I have examined a facsimile of
the bill H.R. 11722 "To amend title 18 of the United States Code
to prohibit deprivation of employment or other benefit for
political contribution, and for other purposes."
The basic problem which this proposal addresses is the
practice, prevalent in some States and localities across the
country (most notably Indiana), whereby employees of State or
local governments, and persons entitled to benefits from a
federal program, are threatened with the loss of employment or
of a benefit, if they do not make a contribution of a thing of
value to the political party in power. Under current federal
law, no statute penalizes such extortionate conduct except
18 U.S.C. 601, which is confined in scope to deprivations, on
account of political activity, of employment or other benefits
"provided for or made possible by any Act of Congress appropri-
ating funds for work relief or relief purposes." H.R. 11722 is
designed to remedy the lack of an effective penal santion in
this area, principally by amending 18 U.S.C. 601 to remove its
limitation to programs for work relief purposes.
Under the bill, 18 U.S.C. 601 will punish (at a one-year
misdemeanor level as under current law) whoever knowingly causes
or attempts to cause any person to make a contribution of a thing
of value, including services, for the benefit of any candidate or
political party, by means of the deprivation, (1) of any employ-
ment, position, or work in or for any agency of the United States
or a State or political subdivision thereof, or any compensation
or benefit of such employment, position or work, or (2) any payment
or benefit of a program of the United States or a State or
political subdivision thereof. The statute applies if the
"employment, position, work, compensation, payment or benefit
is provided for or made possible in whole or in part by an Act
of Congress."
In addition, H.R. 11722 reenacts the latter part of present
18 U.S.C. 601, dealing with deprivations of work relief benefits
on account of race, creed, and color, so as to add as prohibited
-2-
forms of discrimination, "sex, religion, or national origin.'
This offense is moved to chapter 13 of title 18 (civil rights)
as new section 246. Finally, the bill increases the maximum
fine applicable to 18 U.S.C. 601 and its sister statute
18 U.S.C. 600 (punishing certain promises of employment or
other benefit for political activity) from $1,000 to $10,000.
The Department of Justice testified in favor of a
predecessor proposal to this bill (H.R. 2920) in October 1975
and filed a favorable report on H.R. 11722 in June of this year
with the Senate Judiciary Committee. As we noted in that report,
our main reason for supporting this legislation is our belief
that the United States has an obligation to insure that none of
the jobs and benefits which are funded in whole or in part by
federal appropriations is the subject of discrimination on the
basis of whether the victim makes a political contribution. An
additional justification for a federal proscription in this
area is the fact that when abuses of this nature arise, they
are frequently locally sanctioned, either in law or custom, so
that federal intervention is often the only means of halting
the extortionate practice.
Accordingly, the Department of Justice recommends Executive
approval of this bill.
Without Sincerely, Ue
Michael M. Uhlmann
Assistant Attorney General
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: October 1
Time: 400pm
FOR ACTION: Dick Parsons
CC (for information): Jack Mahhh
Bobbie Kilberg in
Jim Connor
Max Friedersdorf
Ed Schmults
Steve McConahey
Jeanne Holm an
FROM THE STAFF SECRETARY
DUE: Date:
Time:
October 2
noon
SUBJECT:
H.R. 11722-Deprivation of Employment on Account of
Political Contribution
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
please return to judy gbhnston, ground floor west wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
HEALTH.
EDUCA
DEPARTMENT OF HEALTH, EDUCATION. AND WELFARE
U.S.A.
The Honorable James T. Lynn
Director, Office of Management
and Budget
SEP 2 8 1976
Washington, D. C. 20503
Dear Mr. Lynn:
This is in response to your request for a report on H.R. 11722,
an enrolled bill "To amend title 18 of the United States
Code to prohibit deprivation of employment or other benefit
for political contribution, and for other purposes."
In short, we support the objectives of the bill, but defer
to the Department of Justice regarding the specific
language in the bill and the appropriateness of increasing
the penalties for certain violations covered by the bill.
Currently, section 600 of title 18 of the United States Code
limits to $1,000 the fine that may be levied against persons
who offer employment or other benefits provided under Federal
law to any individual on the basis of political activity.
Section 601 of title 18 sets the same maximum fine for
denying employment or other benefits in welfare programs
on the basis of race, creed, color, or political considerations.
Among other things, the enrolled bill would modify section 601
of title 18 to parallel more closely section 600 of that
title. First, it would limit the prohibition contained in
section 601 to discrimination based upon political considerations.
The other forms of discrimination now prohibited by section 601
(race, creed, and color) would be prohibited by a new
section 246, which the enrolled bill would add to title 18
of the Code and which is discussed below. Secondly, the revised
section 601 would prohibit the denial of employment or
other benefits under any federally assisted program on the
basis of political considerations, thus eliminating the
restriction to "relief" programs currently contained in
section 601.
The Honorable James T. Lynn
2
We agree that the inexplicable limitation of section 601 to
relief programs should be eliminated. This Department administers
many programs for the benefit of any individual who needs them
and who meets the relevant program criteria. The prohibitions
contained in section 601 should apply to all such programs,
not merely those which are for the limited purpose of relief.
The enrolled bill would also add a new section 246 to title 18
of the United States Code. That section would, essentially,
codify in chapter 13 of title 18 of the United States Code
(pertaining to civil rights) those forms of discrimination now
prohibited by section 601 but which would be deleted from that
section by the enrolled bill. The proposed section 246 would
expand the prohibited forms of discrimination (currently limited
to race, color, religion, and political activity) to cover
discrimination based upon sex or national origin. We favor
expanding the acts now prohibited to cover discrimination
based upon sex or national origin, and have no objection to
the recodification of the provision in chapter 13. However,
we are confused that the Congress has retained, for purposes
of the proposed section 246, the language of the current
section 601 which limits the applicability of the section to
relief programs, while at the same time deleting this
restriction for purposes of the amended section 601.
Nevertheless, because this restriction does not result in
any change from current law, we have no objection to the
proposed section 246.
Lastly, the enrolled bill makes several changes in the
terminology used to describe political activities for purposes
of section 601, and increases the monetary penalty for the
acts prohibited by sections 600, 601, and 246 from $1,000
to $10,000. We defer to the Department of Justice on the
adequacy of the revised terminology in section 601 and on the
appropriate monetary penalty for violations of the amended
provisions of law.
We therefore have no objection to enactment of the enrolled
bill.
Sincerely,
Rarjine Lynch
Under Secretary
SOLISORY COMMISS COM PERFECTS
ADVISORY
ACIR
COMMISSION ON INTERGOVERNMENTAL RELATIONS
INTERNATIONAL ERNMENTAL accounts STATE REPRESENT
WASHINGTON, D.C. 20575
September 24, 1976
Mr. James M. Frey
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Frey:
This is in response to your request for the views of
the ACIR on enrolled bill H.R. 11722, "An Act to amend title
18 of the United States Code to prohibit deprivation of
employment or other benefit for political contribution, and
for other purposes." The Commission has not studied the subject
matter of this bill and therefore has no comment.
Thank you for the opportunity to review and comment on
this legislation.
Sincerely yours,
David B. Walker
Assistant Director
THE WHITE HOUSE
.CTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: October 1
Time: 400pm
FOR ACTION:
Dick Parsons
cc (for information): Jack Marsh
Bobbie Kilberg
Jim Connor
Max Friedersdorf
Ed Schmults
Steve McConahey
Jeanne Holm
FROM THE STAFF SECRETARY
DUE: Date:
Time:
October 2
noon
SUBJECT:
H.R. 11722-Deprivation of Employment on Account of
Political Contribution
ACTION REQUESTED:
For Necessary Action
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
approve Killey 10/1/76
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
James M. Cannon
-
telephone the Staff Secretary immediately
WAS the Prodident
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: October 1
Time: 400pm
FOR ACTION:
Dick Parsons
CC (for information): Jack Marsh
Bobbie Kilberg
Jim Connor
Max Friedersdorf
Ed Schmults
Steve McConahey
Jeanne Holm
FROM THE STAFF SECRETARY
DUE: Date:
Time:
October 2
noon
SUBJECT:
H.R. 11722-Deprivation of Employment on Account of
Political Contribution
ACTION REQUESTED:
For Necessary Action
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
Recommend signature.
Karen Kenling for
Jeanne M. Holm
October 1, 1976
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
James M. Cannon
I
telephone the Staff Secretary immediately
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: October 1
Time: 400pm
FOR ACTION:
Dick Parsons
CC (for information): Jack Marsh
Bobbie Kilberg
OK RKW
Jim Connor
Max Friedersdorf
Ed Schmults
Steve McConahey
Jeanne Holm
FROM THE STAFF SECRETARY
DUE: Date:
Time:
October 2
noon
SUBJECT:
H.R. 11722-Deprivation of Employment on Account of
Political Contribution
ACTION REQUESTED:
For Necessary Action
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
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately
James M. Progident Cannon
THE WHITE HOUSE
TION MEMORANDUM
WASHINGTON
LOG NO.:
Date: October 1
Time: 400pm
FOR ACTION:
Dick Parsons
CC (for information): Jack Marsh
Bobbie Kilberg
Jim Connor
Max Friedersdorf
Ed Schmults
Steve McConahey
Jeanne Holm
FROM THE STAFF SECRETARY
DUE: Date:
Time:
October 2
noon
SUBJECT:
H.R. 11722-Deprivation of Employment on Account of
Political Contribution
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Approval. RR
please return to judy johnston, ground floor west wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
James M. Cannon
telephone the Staff Secretary immediately
Procident
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
OCT 1 1976
MEMORANDUM FOR THE PRESIDENT
Subject: H.R. 11722 - Deprivation of Employment on
Account of Political Contribution
Sponsor - Rep. Roush (D) Indiana and 18 others
Last Day for Action
October 9, 1976 - Saturday
Purpose
Prohibits denial of State and local government employ-
ment in Federally-supported programs for refusal to
make a political contribution; and expands the current
prohibition against racial and political discrimination
in Federally-funded work relief programs to cover
discrimination based on sex, religion, or national
origin.
Agency Recommendations
Office of Management and Budget
Approval
Department of Justice
Approval
Civil Service Commission
Approval
Department of Health, Education,
and Welfare
No objection
Advisory Commission on Inter-
governmental Relations
No comment
Civil Rights Commission
No recommendation
Discussion
This legislation would ban the practice, still prevalent
in some State and local governments, under which employees
in, and persons entitled to benefits from, a Federally-
supported program are threatened with loss of employment
or of a benefit, respectively, if they do not make a
contribution to the political party in power. The report
of the House Judiciary Committee uses the State of
94TH CONGRESS
—
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 94-986
DEPRIVATION OF EMPLOYMENT ON ACCOUNT OF
POLITICAL CONTRIBUTION
MARCH 30, 1976.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. HUNGATE, from the Committee on the Judiciary,
submitted the following
REPORT
[To accompany H.R. 11722]
The Committee on the Judiciary, to whom was referred the bill
(H.R. 11722) to amend title 18 of the United States Code to prohibit
deprivation of employment or other benefit for political contribution,
and for other purposes, having considered the same, report favorably
thereon with amendments and recommend that the bill as amended
do pass.
The amendments are as follows:
Page 2, line 5, strike out "or" the second place it appears.
Page 2, line 10, insert "or" immediately after the semicolon.
Page 2, immediately after line 10, insert the following:
"(3) whether or not such person is such an employee, of
any payment under or benefit of a program of the United
States, a State, or a political subdivision of a State;
Page 2, beginning in line 11, strike out "or benefit", and insert in
lieu thereof "benefit, or payment".
Page 2, line 13, strike out "making or".
Page 2, line 14, strike out "failing" and insert in lieu thereof "re-
fusing".
Page 4, line 13, insert "political affiliation," immediately before
"race".
PURPOSE
The purpose of this legislation is to amend title 18 of the United
States Code to prohibit deprivation of employment or other benefit,
on account of refusing to make a political contribution, where the em-
ployment or benefit is made possible in whole or part by Act of
Congress.
BACKGROUND
From time to time, and for a number of years, both major political
parties have utilized the "lug," a method of obtaining funds for the
political party in power. Certain public officers are told that they are
57-006
2
3
expected to contribute a part of their salaries to the party.¹ If they
working on the Federally-funded highway construction program, and
refuse to do so, they are threatened with dismissal. This is an example
threatens to fire him if he does not contribute to A's party, the Justice
of such a threat, a letter sent to certain employees in Indiana.
Department cannot prosecute A. The reason is that section 601 is inap-
When you hired into the State Employment you were in-
plicable because the Federal funds are not being used for "work relief
formed then that each and every paycheck you received, two
or relief purposes." If section 601 is to provide adequate criminal
(2) percent was due and payable to the Party.
sanctions, it must be expanded to include more than "work relief and
Now, I did not make this rule, but I have been charged
relief" situations.⁵
with collecting this two (2) percent and turning it in.
It is not fair for your fellow workmen to pay his share and
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
you letting it go this way. [sic] I am warning you to "shape
SECTION 1
up or ship out." This must be paid in full by March 11, 1974
or I will be in the process of making out 104's which means
The first section of H.R. 11722 amends section 601 of title 18, United
letting you go.
States Code. Present section 601 of title 18 has two aspects. The first is
Sincerely,
a deprivation of employment or other benefit on account of "race,
Superintendent.
creed, color, or any political activity." The second aspect, which re-
lates to Federal jurisdiction, is that the employment or benefit must be
If the threats fail, the employee may actually be fired.
made possible by Federal funds.
The employees who are subjected to threats of this sort are not
In recasting the language of section 601, the Committee made several
just those who are located at the top of the salary ladder.3 The major-
basic decisions. The evidence gathered during the hearing focused on
ity of employees victimized are people of modest incomes, such as
deprivations based on refusing to make political contributions and not
persons working construction on highway and even lifeguards. The
on deprivations based on "race, creed, color." It was therefore decided
Committee is of the opinion that this practice has no place in a repub-
not to expand the Federal jurisdictional aspect of section 601 insofar
lican form of government. Where the people govern themselves, they
as it concerned deprivations based on "race, creed, color." It was also
should not be expected to pay tribute in order to work for themselves.
decided that these provisions should be taken out of section 601 alto-
There are presently two statutes directed at protecting federally-
gether and put in a new section to be located in chapter 13 ("civil
funded employment and programs from partisan favoritism. One is
rights") of title 18. Further, the committee found the phrase "political
section 600 of title 18, which makes it a crime to promise employment
activity" to be vague and to raise constitutional problems. It was there-
or other benefit, made possible in whole or in part by an Act of Con-
fore decided to replace it with more precise terms.
gress, on account of a person's political activity.
Section 601 as proposed by this legislation is directed at actual, at-
The other statute is section 601. It provides:
tempted or threatened deprivation of employment or benefit on ac-
Whoever, except as required by law, directly or indirectly,
count of refusing to make a contribution of a thing of value, including
deprives, attempts to deprive, or threatens to deprive any
services. Thus, section 601 will cover a situation where a letter like the
person of any employment, position, work, compensation, or
one set forth above is sent to a highway construction employee who re-
other benefit provided for or made possible by any Act of
fuses to contribute money or services to the party in power. It would
Congress appropriating funds for work relief or relief pur-
also cover the situation where a benefit-such as an LEAA grant-is
poses, on account of race, creed, color, or any political activity,
withheld from a private individual because of the individual's refusal
support of. or opposition to any candidate or any political
to contribute. It would not, however, reach a private individual who
party in any election, shall be fined not more than $1,000 or
receives the LEAA grant and who conditions other persons' employ-
imprisoned not more than one year, or both. [emphasis added]
ment with him on those persons' making a political contribution to a
The "work relief and relief purposes" limitation makes section 601
specified party.⁶
much narrower than section 600. Thus, for example, if A promises
Section 601 as proposed by this legislation provides for Federal
B a job on a Federally-funded highway construction program if B
jurisdiction if the employment or benefit is made possible in whole or
will make a contribution to A's party, the Justice Department can
part by an Act of Congress. Thus, for example, the statute will reach
prosecute A under section 600, But, if A goes to C, who is already
situations where the employee works construction on Federally-funded
highways. Under present section 601, this would not be reached because
1 The evidence received by the Subcommittee on Criminal Justice indicated that in
the Federal highway money is not being spent for "work relief or re-
Indiana the employees are expected to contribute 2 percent of their gross salary, giving
rise to what is popularly known as the "Two Percent Club." See statement of Representa-
lief purposes."
tive J. Edward Roush in Hearing on Legislation Relating to Deprivation of Employment
SECTION 2
on Account of Political Contribution Before the Subcommittee on Criminal Justice of the
House Committee on the Judiciary, 94th Cong., 1st sess., Serial No. 24, at 9 [hereinafter
Section 2 of H.R. 11722 amends the entry for section 601 in the table
cited as "Hearing"]
In some areas of Indiana, the local party organization may collect a 1 percent lug in
of sections for chapter 29 of title 18, United States Code. This is neces-
addition to the State party's 2 percent. See Hearing at 33, 73-74 (letter of Murrel
Meadors).
sary because section 1 of the bill changes the title of section 601.
3 Hearing at 30-31, 73.
3 The employees involved are those who are not protected by civil service laws. This is
not an unsubstantial number of people. In Indiana, for example, at least 7,000 of the
IS See Oversight findings, infra at 4.
State's 26,000 employees hold such positions. See Hearing at 76 (testimony of Thomas S.
This is SO because employment with a private individual is not a "benefit of a pro-
Mulligan), 55 (testimony of Charles F. Eble).
grain of the United States" within the meaning of section 601 (a) (3).
4 See, e.o Hearing at 19 (testimony of Representative Roush).
H.R. 986
H.R. 986
4
5
SECTION 3
INFLATION IMPACT STATEMENT
Section 3 of H.R. 11722 amends section 600 of title 18, United States
This legislation will have no foreseeable inflationary impact on
Code, by raising the maximum fine from $1,000 to $10,000. Sections
prices or costs in the operation of the national economy.
600 and 601 are companion sections and ought to have the same maxi-
mum fine.
COMMITTEE VOTE
SECTION 4
This bill was reported out of Committee on Tuesday, March 16, by
Section 4 of H.R. 11722 amends chapter 13 of title 18, United States
voice vote. Twenty-two Members of the Committee were present.
Code, by adding a new section to it (section 246). The new section is
intended to continue the present policy of section 601 insofar as it con-
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
cerns deprivations based upon civil rights and political affiliation. Two
changes have been made in the language of present section 601. First,
In compliance with clause 3 of rule XIII of the Rules of the House
the basis for the discrimination ("race, creed, color" in present section
of Representatives, changes in existing law made by the bill, as re-
601) has been expanded to include sex and national origin. Second, in
ported, are shown as follows (existing law proposed to be omitted is
line with the action taken with regard to sections 600 and 601, the
enclosed in black brackets, new matter is printed in italic, existing law
maximum fine is set at $10,000.
in which no change is proposed is shown in roman) :
OVERSIGHT
TITLE 18, UNITED STATES CODE
The Fraud Section of the Justice Department's Criminal Division
*
is responsible for enforcing the provisions of sections 600 and 601 of
title 18. Section 600 is addressed to the situation where a benefit, made
Chapter 13. CIVIL RIGHTS
possible in whole or part by an Act of Congress, is promised in return
Sec.
for political activity. Section 601 addresses the situation where there
241. Conspiracy against rights of citizens.
is a deprivation of employment or other benefit on account of political
242. Deprivation of rights under color of law.
activity. However, section 601 is'limited-the employment or benefit
243. Exclusion of jurors on account of race or color.
244. Discrimination against person wearing uniform of armed forces.
must be made possible by an Act of Congress appropriating funds for
245. Federally protected activities.
"work relief or relief purposes."
246. Deprivation of relief benefits.
This limitation prevents the Justice Department from being able to
prosecute where nonrelief benefits are taken away. The Committee
concurs in the Justice Department's belief that this result "frustrates
§ 246. Deprivation of relief benefits
the basic purpose which sections 600 and 601 both serve."
Whoever directly or indirectly deprives, attempts to deprive, or
This legislation will better enable the Justice Department to carry
threatens to deprive any person of any employment, position, work,
out the Congressional policy behind sections 600 and 601 of title 18.
compensation, or other benefit provided for or made possible in whole
or in part by any Act of Congress appropriating funds for work relief
COST
or relief purposes on account of political affiiliation, race, color, sex,
religion, or national origin, shall be fined not more than $10,000, or
Pursuant to clause 7. rule XIII of the Rules of the House of Rep-
imprisoned not more than one year, or both.
resentatives, the committee estimates that no new cost to the United
**
States is entailed by H.R. 11722.
Chapter 29.-ELECTIONS AND POLITICAL ACTIVITIES
Sec.
NEW BUDGET AUTHORITY
591. Definitions.
592. Troops at polls.
This legislation creates no new budget authority.
593. Interference by armed forces.
594. Intimidation of voters.
STATEMENT OF THE BUDGET COMMITTEE
595. Interference by administrative employees of Federal, State, or Territorial
Governments.
596. Polling armed forces.
No statement on this legislation has been received from the House
597. Expenditures to influence voting.
Committee on the Budget.
598. Coercion by means of relief appropriations.
599. Promise of appointment by candidate.
STATEMENT OF THE COMMITTEE ON GOVERNMENT OPERATIONS
600. Promise of employment or other benefit for political activity.
601. Deprivation of employment or other benefit for political [activity] con-
tribution.
No statement on this legislation has been received from the House
*
*
Committee on Government Operations.
*
7 Hearing at 37 (testimony of Roger Pauley).
H.R. 986
H.R. 986
6
7
§ 600. Promise of employment or-other benefit for political activity.
with a view to bringing about his nomination for election, or elec-
Whoever, directly or indirectly, promises any employment, position,
tion, to such office;
compensation, contract, appointment, or other benefit, provided for
(2) the term "election" means (1) a general, special, primary,
or made possible in whole or in part by any Act of Congress, or any
or runoff election, (2) a convention or caucus of a political party
special consideration in obtaining any such benefit, to any person as
held to nominate a candidate, (3) a primary election held for the
consideration, favor, or reward for any political activity or for the
selection of delegates to a nominating convention of a political
support of or opposition to any candidate or any political party in
party, (4) a primary election held for the expression of a prefer-
connection with any general or special election to any political office,
ence for the nomination of persons for election to the office of
or in connection with any primary election or political convention or
President, and (5) the election of delegates to a constitutional
caucus held to select candidates for any political office, shall be fined
convention for proposing amendments to the Constitution of the
not more than [$1,000] $10,000 or imprisoned not more than one year,
United States or of any State; and
or both.
(3) the term "State" means a State of the United States, the
[$ 601. Deprivation of employment or other benefit for political activity.
District of Columbia, the Commonwealth of Puerto Rico, or any
Whoever, except as required by law, directly or indirectly. deprives,
territory or possession of the United States.
attempts to deprive, or threatens to deprive any person of any em-
*
ployment, position, work, compensation, or other benefit provided for
or made possible by any Act of Congress appropriating funds for work
relief or relief purposes, on account of race, creed, color, or any politi-
cal activity, support of, or opposition to any candidate or any politi-
cal party in any election, shall be fined not more than $1,000 or im-
prisoned not more than one year, or both.
§ 601. Deprivation of employment or other benefit for political contribution
(a) Whoever directly or indirectly deprives or denies, attempts to
deprive or deny, or threatens to deprive or deny any person-
(1) who is an employee in or for any agency or other entity,
of the government of the United States, a State, or a political sub-
division of a State, of any employment, position, work, compen-
sation, or any benefit of such employment, position, or work;
(2) whether or not such person is such an employee, of any
employment, position, or work, in or for any agency or other
entity, of the government of the United States, a State, or a politi-
cal subdivision of a State; or
(3) whether or not such person is such an employee, of any
payment under or benefit of a program of the United States, a
State, or a political subdivision of a State;
if such employment, position, work, compensation, benefit, or payment
is provided for or made possible in whole or in part by an Act of Con-
gress, on account of such person's refusing to make a contribution of
(1) thing of value (including services) for the benefit of any candidate
or any political party, shall be fined not more than $10,000 or impris-
oned not more than one year, or both.
(b) As used in this section-
(1) the term "candidate" means an individual who seeks nomi-
nation for election, or election, to Federal, State, or local office.
whether or not such individual is elected, and, for purposes of
this paragraph, an individual shall be deemed to seek nomination
for election, or election, to Federal, State, or local office, if he has
(A) taken the action necessary under the law of a State to quality
himself for nomination for election, or election, or (B) received
contributions or made expenditures, or has given his consent for
any other person to receive contributions or make expenditures,
H.R. 986
H.R. 986
H. R. 11722
Ainety-fourth Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the nineteenth day of January,
one thousand nine hundred and seventy-six
An Act
To amend title 18 of the United States Code to prohibit deprivation of employ-
ment or other benefit for political contribution, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 601 of
title 18 of the United States Code is amended to read as follows:
"§ 601. Deprivation of employment or other benefit for political
contribution
"(a) Whoever, directly or indirectly, knowingly causes or attempts
to cause any person to make a contribution of a thing of value (includ-
ing services) for the benefit of any candidate or any political party,
by means of the denial or deprivation, or the threat of the denial or
deprivation, of-
"(1) any employment, position, or work in or for any agency
or other entity of the Government of the United States, a State,
or a political subdivision of a State, or any compensation or bene-
fit of such employment, position, or work; or
"(2) any payment or benefit of a program of the United States,
a State, or a political subdivision of a State;
if such employment, position, work, compensation, payment, or bene-
fit is provided for or made possible in whole or in part by an Act of
Congress, shall be fined not more than $10,000, or imprisoned not more
than one year, or both.
(b) As used in this section-
"(1) the term 'candidate' means an individual who seeks nomi-
nation for election, or election, to Federal, State, or local office,
whether or not such individual is elected, and, for purposes of
this paragraph, an individual shall be deemed to seek nomina-
tion for election, or election, to Federal, State, or local office, if
he has (A) taken the action necessary under the law of a State
to qualify himself for nomination for election, or election, or (B)
received contributions or made expenditures, or has given his con-
sent for any other person to receive contributions or make expend-
itures, with a view to bringing about his nomination for election,
or election, to such office;
"(2) the term 'election' means (A) a general, special primary,
or runoff election, (B) a convention or caucus of a political party
held to nominate a candidate, (C) a primary election held for the
selection of delegates to a nominating convention of a political
party, (D) a primary election held for the expression of a prefer-
ence for the nomination of persons for election to the office of
President, and (E) the election of delegates to a constitutional
convention for proposing amendments to the Constitution of the
United States or of any State; and
"(3) the term 'State' means a State of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, or any
territory or possession of the United States.".
CORRECTED SHEET
H. R. 11722-2
SEC. 2. The item relating to section 601 in the table of sections for
chapter 29 of title 18 of the United States Code is amended to read as
follows:
"601. Deprivation of employment or other benefit for political contribution.".
SEC. 3. Section 600 of title 18 of the United States Code is amended
by striking out "$1,000" and inserting "$10,000" in lieu thereof.
SEC. 4. (a) Chapter 13 of title 18 of the United States Code is
amended by adding at the end the following new section:
"§ 246. Deprivation of relief benefits
"Whoever directly or indirectly deprives, attempts to deprive, or
threatens to deprive any person of any employment, position, work,
compensation, or other benefit provided for or made possible in whole
or in part by any Act of Congress appropriating funds for work relief
or relief purposes, on account of political affiliation, race, color, sex,
religion, or national origin, shall be fined not more than $10,000, or
imprisoned not more than one year, or both.".
(b) The table of sections for chapter 13 of title 18 of the United
States Code is amended by adding at the end thereof the following new
item:
"246. Deprivation of relief benefits.".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.