[Congressional Record Volume 142, Number 113 (Monday, July 29, 1996)]
[House]
[Page H8603-H8604]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
REPEALING OF PROVISION OF UNITED STATES CODE RELATING TO FEDERAL
EMPLOYEES CONTRACTING OR TRADING WITH INDIANS
Mr. MOORHEAD. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3215) to amend title 18, United States Code, to repeal the
provision relating to Federal employees contracting or trading with
Indians.
The Clerk read as follows:
H.R. 3215
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. FEDERAL EMPLOYEES CONTRACTING OR TRADING WITH
INDIANS
(a) Repeal.--Section 437 of title 18, United States Code,
is repealed.
(b) Conforming Amendment.--The table of sections at the
beginning of chapter 23 of title 18, United States Code, is
amended by striking the item relating to section 437.
(c) Effective Date.--The repeal made by subsection (a)
shall--
(1) take effect on the date of enactment of this Act; and
(2) apply with respect to any contract obtained, and any
purchase or sale occurring, on or after the date of enactment
of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California [Mr. Moorhead] and the gentleman from Virginia [Mr. Scott]
each will control 20 minutes.
The Chair recognizes the gentleman from California [Mr. Moorhead].
general leave
Mr. MOORHEAD. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 3215.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. MOORHEAD. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 3215 which repeals a provision
of the Criminal Code, 18 U.S.C. 437, that prohibits certain Federal
employees from contracting or trading with American Indians. The
gentleman from Arizona, Mr. J.D. Hayworth, introduced H.R. 3215 on
March 29, 1996.
Section 437 prohibits employees of the Bureau of Indian Affairs and
the Indian Health Service from entering into contracts with American
Indians for the purchase, transportation, or delivery of goods or
supplies for any American Indian. It further prohibits these employees
from engaging in any purchase or sale of services or property from or
to any American Indian. Because these provisions prohibit any of these
transactions in any case in which the Federal employee appears to
benefit, they effectively bar any such transaction with a family member
of the Federal employee. A violation of this section is punishable by a
fine or imprisonment of up to 6 months.
Section 437, first passed in the 1800's, was enacted to prevent
Federal employees who are involved in administering programs to assist
American Indians from taking advantage of those they are supposed to be
helping. While it was well-intentioned when passed, today it is
outdated and no longer necessary. In addition, the section has the
perverse effect of making it harder for the Indian Health Service to
recruit and retain good medical employees for remote reservations
because those employees' spouses are prohibited from trading with the
local Indians.
In 1980, Congress amended this statute to allow the executive branch
to provide, by regulation, for exceptions
[[Page H8604]]
to the general prohibition on trading. Because H.R. 3215 will repeal
the authority under which these regulations were promulgated, they
should be repealed if this bill is enacted. As a practical matter,
these regulations providing for exceptions will no longer be necessary
nor effective because the general prohibition will no longer exist.
However, I want to make it clear that this repeal should not be
construed to prejudice any person who has lawfully acted in reliance on
those regulations. I also want to make it clear that even though we are
repealing section 437, and thereby rendering the regulations providing
for exceptions unnecessary, all other applicable general standards of
ethical conduct for these Federal employees remain in effect.
Similar legislation passed the other body on October 31, 1995, as
part of a broader package of technical amendments to laws relating to
Indians--S. 325. The package passed by unanimous consent. Last week,
the Committee on Indian Affairs in the other body by voice vote ordered
favorably reported S. 199, a separate bill that addresses only the
repeal of section 437. The Department of the Interior, of which the
Bureau of Indian Affairs is a part, testified in favor of the repeal of
section 437 at hearings on S. 325. I am informed that the Department of
Health and Human Services, which includes the Indian Health Service, is
in favor of repeal of section 437. I am also informed that the Navajo
Nation and the Hopi Tribe are in favor of this legislation. I do not
have any reason to believe that any other American Indian groups oppose
this bill. I urge all Members to support this worthy legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. SCOTT. Mr. Speaker, I yield myself such time as I may consume,
and I rise in support of the bill.
Mr. Speaker, this bill enjoys bipartisan support. The current law
prohibits employees from the Bureau of Indian Affairs and the Indian
Health Service from entering into contracts with Indians or their
families for the purchase, transportation or delivery of goods or
services. It also prohibits these employees from engaging in any
purchase or sale of services with the property of any Indian.
When first passed in the 1980's, the legislation was designed to
prevent Federal employees who were involved in administering programs
to help Indians from taking advantage of the Indians they were supposed
to be helping.
While it was well-intentioned when passed, today the law appears to
be outdated and has the negative effect of making it harder for Indian
Health Services to recruit and retain good medical employees for remote
reservations because those employees' spouses are prohibited from
trading with local Indians.
Mr. Speaker, passing this bill will not diminish in any way the
ethnical standards because the people involved will still be covered by
all of the ethics in Government regulations. The counterpart
legislation passed the Senate by unanimous consent last year, and I
urge Members to support the measure.
Mr. HAYWORTH. Mr. Speaker, I would like to take this opportunity to
thank the distinguished chairman and ranking member of the House
Judiciary Committee for their assistance in moving H.R. 3215 through
the legislative process.
As my colleagues may know, the Trading with Indians Act was
originally enacted in 1834, and at that time it served an important
purpose: to ensure that Federal employees did not improperly influence
native Americans. However, today this law is unnecessary and
unproductive. It establishes a prohibition against commercial trading
with native Americans by employees of the Indian Health Service [IHS]
and Bureau of Indian Affairs [BIA]. In many cases, this prohibition
also extends to transactions undertaken by the spouse of a Federal
employee.
The penalties for violations include a fine of not more than $5,000,
or imprisonment for not more than 6 months, or both. The act further
provides that any employee who is found to be in violation should be
terminated from Federal employment.
Enforcement of this outdated law has caused great difficulties for
many native American families. It has also made it more difficult for
IHS and BIA to retain quality Federal employees in certain facilities
located on remote parts of reservations.
Both Health and Human Services Secretary Donna Shalala and Interior
Assistant Secretary Ada Deer have expressed support for repealing the
Trading with Indians Act. The Senate has already approved legislation
which includes language identical to H.R. 3215. Both the Navajo Nation
and the Hopi Tribe support passage of the bill. In fact, I am not aware
of any opposition to H.R. 3215.
Repeal of the Trading with Indians Act is long overdue. Passage of
H.R. 3215 would benefit numerous native American families, and I hope
that my colleagues will join me in supporting this commonsense
legislation.
Mr. SCOTT. Mr. Speaker, I yield back the balance of my time.
Mr. MOORHEAD. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California [Mr. Moorhead] that the House suspend the
rules and pass the bill, H.R. 3215.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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