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EDITORS' NOTE: Senator Cotton (R., N.H.) proposed an amendment that would have limited the coverage of Title VII to establishments with 100 or more employees. Senator Dirksen (R., Ill.) and Senator Humphrey (D., Minn.) both opposed the amendment; it was defeated by a vote of 34 for, 63 against.
I would emphasize only the point that nothing in title VII or, in fact, in the amendment of the Senator from New Hampshire, tells any employer whom he may hire. What the bill does, as was pointed out so ably earlier today by the distinguished senior Senator from New Jersey [Mr. CASE] and the distinguished senior Senator from Pennsylvania [Mr. CLARK, is simply to make it an illegal practice to use race as a factor in denying employment. It provides that men and women shall be employed on the basis of their qualifications, not as Catholic citizens, not as Protestant citizens, not as Jewish citizens, not as colored citizens, but as citizens of the United States.
members of a particular religious faith. It provides that employers shall seek and recruit employees on the basis of their talents, their merit, and their qualifications for the job.
The employer will outline the qualifications to be met for the job. The employer, not the Government will establish the standards. This is an equal employment opportunity provision.
On March 6, 1961, the late President of the United States, John F. Kennedy, issued an Executive order which combined the President's Committee on Government Contracts with the President's Committee on Employment Policy. There was formed a single President's Committee on Equal Employment Opportunity. That Executive order established an office, which was presided over by the then Vice President and now President, Lyndon B. Johnson. That Executive order applied to any firm, regardless of size or location, which did any business with the Government of the United States in the form of providing goods or services to the Government of the United States.
These business firms have not complained because of this requirement; to the contrary, it is to the everlasting credit of American free enterprise that they have cooperated. It is to the great credit and honor of President Johnson that when he served as chairman of the Equal Employment Opportunity Committee, during the period that he occupied the vice-presidency, much outstanding work was accomplished in providing equal employment opportunity to thousands and thousands of qualified workers.
What we provide in the leadership substitute or, in fact, in the House bill, is much less stringent language, and much less in coverage than what was provided by the executive order that applies to business establishments doing business with the Federal Government. There are many. The Federal Government is the largest purchaser of goods and services of any establishment in the world.
I repeat that the order applies to a firm that hires 5 persons, 1 person, 100
persons, 1,000 persons, or 50,000, or 100,000.
What do we provide in the bill? First of all, as the distinguished Senator from Illinois [Mr. DIRKSEN] has indicated, we provide for local and State enforcement wherever there are local and State instrumentalities. We have simplified the recordkeeping to the point where State records suffice, with whatever notations may be necessary to indicate employment.
We have provided that in the first year after enactment of the civil rights statute there will be no enforcement at all. We have provided, for States which do not now have fair employment practice laws, that there will be an additional 180 days before there is any impact of the law.
We have provided that in the second year employers of 100 or more shall come under the act. In the third year, employers of 75 or more shall come under the act; in the fourth year, employers of 50 or more; in the fifth year, employers of 25 or more.
A large number of small businesses in America, the kind of small businesses that we know in Minnesota, South Dakota, New Hampshire, Wyoming, or any other State, are small businesses that employ fewer than 25 persons. When they get above 25, they get into some reasonable degree of gross product in terms of income or output or salaries or goods or services. They also lose most of whatever intimate, personal character they might have had.
What does the bill do without the Cotton amendment? There are 3 million employers in America registered under the social security system. Of this number, 259,343, or only about 8 percent of the total employers, employ 25 or more persons.
In other words, under the bill as now drafted, 92 percent of the employers of America would not be covered. They would not be touched by the Federal statute. A State might extend the coverage to them, but, insofar as the Federal requirements are concerned, 92 percent
would be exempted. That cannot be regarded as a drastic imposition on the business community.
There are only 56,366 employers in the entire Nation who employ 100 or more employees.
Thus the Cotton amendment would cover somewhat less than 2 percent of the total employers in America.
The House bill or the substitute would apply to only 8 percent of the employers in the United States. Insofar as employees are concerned, if the bill's coverage extended to 25 employees or more, 29,736,000 employees would be covered. If the Cotton amendment were adopted, about 21 million employees would be covered.
Coverage and Exemptions: Indians
EDITORS' NOTE: Congressman Berry (R., S.D.) sought to incorporate in the bill a measure designed to attract industry to Indian reservations by granting federal tax exemptions to any company certifying that more than 50 percent of its employees are Indians. This measure was not adopted.
AMENDMENT OFFERED BY MR. BERRY
Mr. BERRY. Mr. Chairman, I offer an amendment.
The Clerk read as follows:
Amendment offered by Mr. BERRY: On page 85, after line 23, insert the following new title VIII as follows:
"TITLE VIII: EQUAL EMPLOYMENT OPPORTUNITY FOR INDIANS THROUGH INDUSTRIAL DEVELOPMENT
"SEC. 801. (a) The purpose of this Act is to bring about Industrial development and economic advancement within Indian communities in order to aid in bringing Indian economic well-being more nearly to the level of the non-Indian community.
"(b) This Act shall be liberally construed to authorize tribal action which will enable Indians to attract and retain new industry within Indian reservations and amongst Indian communities, to promote gainful employment of Indians, and to authorize steps to improve the lot of Indians, including selfhelp on the part of the Indians and Indian tribes and Indian communities, legislative and corporate action by them which will accord assurances and security to industries availing themselves of the benefits of this › Act, and tribal action for self-help notwithstanding regulations or review by the Secretary of the Interior.
"SEC. 802. As used in this Act
"(1) The term 'tribe' means any Indian tribe, band, or other identifiable group living on one reservation or tract of trust land, and receiving direct services from the Bureau of Indian Affairs on the date of enactment of this Act.
"(2) The term 'Indian' means any recognized member of a tribe.
"SEC. 803. None of the provisions of this Act (except section 4) shall apply with respect to any tribe until the majority of the qualified resident voters of the tribe have voted to accept the provisions of this Act in a referendum (which may be conducted in connection with regular tribal elections or in a special election called for the purpose).
"SEC. 804. The Secretary of the Interior shall cause to be drafted a model corporate charter embodying the provisions and in
tents of this Act which shall be circulated to each tribe, whether or not the tribe has voted to accept the privileges of this Act, and whether or not the tribe is operating under a charter heretofore approved by the Secretary.
"SEC. 805. (a) Any Indian tribe which has accepted the provisions of this Act may adopt an appropriate constitution and bylaws, or, In the case of a tribe which already has a recognized constitution and bylaws, may adopt amendments thereto, which shall become effective, in accordance with such rules and requirements as the Secretary of the Interior may prescribe, when ratified by a majority vote of the adult members of the tribe, at a special election authorized and called by the Secretary of the Interior under such rules and regulations as he may prescribe. Any such constitution and bylaws may be revoked, in accordance with such rules and requirements as the Secretary of the Interior may prescribe, by a majority vote of the adult members of the tribe in a referendum (which may be conducted in connection with regular tribal elections or in a special election called for the purpose). Amendments to the constitution and bylaws thereafter proposed may be ratified and approved by the tribe in the same manner as is provided in this section for adoption by the tribe of the original constitution and bylaws.
"(b) Upon the adoption of a constitution and bylaws, as provided in subsection (a), the tribe shall be a body corporate, with such powers as are prescribed in this Act, and to the extent not inconsistent with this Act or any other law, shall have the powers provided by such constitution and bylaws.
"SEC. 806. (a) Each tribe which has accepted the provisions of this Act shall, in addition to any corporate powers which it otherwise may have or may be provided, have authority to purchase, sell, exchange, pledge, mortgage, or hypothecate property of every description, real and personal, in trust or fee status, on such conditions, if any, as to approval of the Secretary of the Interior as the tribe may provide: Provided, That if a tribe shall without approval of the Secretary of the Interior mortgage or sell property theretofore held in trust for it by the United States. It shall thereby waive any claim or demand it may otherwise have had against the United States arising out of the sale, exchange, pledge, mortgage, or hypothecation: And provided further, That except to the extent that this subsection authorizes
the sale, exchange, pledge, mortgage, or hypothecation of property, without Secretarial approval, no provision of this Act shall be regarded as affecting or impairing any claim which the tribe may have against the United States.
"(b) Any existing lawful debts of any tribe which has accepted the provisions of this Act shall continue in force, except as such debts may be satisfied or canceled pursuant to law.
"(c) The individually owned property of members of any tribe shall not be subject to any corporate debts or liabilities of the tribe without the owner's consent.
"(d) The officers of each tribe which has accepted the provisions of this Act shall maintain accurate and complete public accounts of the financial affairs which shall clearly show all credits, debts, pledges, and assignments, and shall furnish an annual balance sheet and report of financial affairs to the Secretary of the Interior. A summary of the balance sheet shall be published in a local paper of general distribution within the area of said community or reservation, within thirty days of compilation.
"(e) Each tribe which has accepted the provisions of this Act shall have the following corporate powers, in addition to any corporate powers which it otherwise may have or may be provided:
"(1) To appropriate and use any tribal moneys (including those held in trust) as an incentive to the location of new private industry on the reservation occupied by the tribe;
"(2) To negotiate and execute contracts with private industry, Federal, State, and local governments;
"(3) To extend to new private industry on the reservation occupied by the tribe a binding waiver of tribal taxes for a period which may not, without extension, exceed fifteen years;
"(4) To borrow money from any commercial organization or from established programs of the Federal Government, and if desired, to place tribal properties, real and personal, in trust or fee status, as collateral;
"(5) To deposit corporate funds, from whatever source derived, in any National or State bank to the extent that such funds are insured by the Federal Deposit Insurance Corporation, or by a surety bond, or other security:
"(6) To pledge or assign (for periods not to exceed ten years) chattels or future tribal income due or to become due;
"(7) To lend funds from the tribal treasury to any new industrial organization locating on the reservation, or for expansion of private industry operating on the reservation, where such location or expansion will further the economic well-being of the members of the tribe;
"(8) To exercise such further incidental powers not inconsistent with law as may be necessary for the conduct of corporate
"The Secretary of the Interior may delegate to such tribe, upon request, such au
thority as may be needed for the purposes of this Act.
"(f) Before any per capita distribution is made by any tribe which has accepted the provisions of this Act to its members, not less than sixty days advance notice must be given to the Secretary of the Interior, who may prohibit such distribution to the extent that he determines, and so notifies the tribe before the expiration of such sixty days, that the sums set aside for per capita payments do not represent income over that necessary to defray corporate obligations to members or other persons; to establish an adequate reserve fund; to construct necessary public works; to cover the costs of public enterprises; to pay the expenses of tribal government; or for other necessary corporate needs. Such notice by the Secretary shall be fully documented to show the tribe why approval was not given.
"(g) Any tribe or Indian community which has accepted the provisions of this Act may sue and be sued in courts of competent jurisdiction, State and Federal, in the United States.
"(h) All officers of any tribe which has accepted the provisions of this Act, who shall have responsibility for handling money, shall be bonded in such amounts as the Secretary of the Interior may from time to time determine.
"(1) In the case of fraud, or overreaching by or through ofcials of any tribe which has accepted the provisions of this Act, where such fraud or overreaching is at the expense of individual members or the membership of a tribe at large, the Secretary shall have full rights of investigation and review, including authority to set aside any such action, and including the right to seek assistance of courts of competent jurisdiction to that end.
"SEC. 807. (a) (1) Where any person, firm, corporation, or other business association proposes to establish a new industry on any reservation (hereafter referred to as the 'investor'), he shall qualify for the incentives provided by this section if he enters into a contract with the tribe living on such reservation for the establishment of such industry, and the Secretary of the Interior approves such contract after finding that it will be of significant aid to the tribe. No such contract shall be approved if it is a device whereby operations of an existing industry are transferred from Indian or nonIndian areas; nor shall the investor qualify for such incentives for any period during which less than half of the employees of such industry employed on the reservation are Indians.
"(2) Any contract entered into under paragraph (1) of this subsection with the approval of the Secretary of the Interior may include provisions under which the tribe shall construct the necessary buildings, and make such improvements as may be required, for the operation of such industry. and may sell such buildings and improvements. or lease them on a long-term basis, to the investor.
"(3) Where any tribe is in need of funds to carry out construction or improvements under paragraph (2) of this subsection, such tribe may borrow such funds, under such regulations as the Secretary of the Interior may prescribe, from the revolving funds authorized by the Acts of June 18, 1934 (48 Stat. 984, 986), June 26, 1936 (49 Stat. 1967, 1968), and April 19, 1950 (64 Stat. 44), as amended and supplemented. For the purposes of augmenting such funds to the extent necessary to carry out this paragraph, the Secretary of the Treasury is authorized to advance to such funds from time to time such sums as the Secretary of the Interior may request, but not more than may be specified from time to time in appropriation Acts. The Secretary of the Interior, out of interest paid on loans made out of such funds pursuant to this paragraph, shall pay semiannually to the Secretary of the Treasury interest at the rate or rates determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the advance. For the purposes of this paragraph, the Secretary of the Treasury may use the proceeds of the sale of any securities issued under the Second Liberty Bond Act, and the purposes for which securities may be issued under such Act include such purposes.
"(b) No tax shall be imposed by chapter 1 of the Internal Revenue Code of 1954 on the income of any investor qualified for the incentives provided by this section, to the extent that such income is attributable to the operation of a new industry established on the reservation, for the ten taxable years ending immediately after such investor first qualifies for the incentives provided by this section.
"(c) In the case of any capital investment made by any investor qualified for the incentives provided by this section in any new industry on a reservation, the basis of the property of such investor in such industry shall, for purposes of the Internal Revenue Code of 1954, at the election of the investor, be whichever is the higher, its fair market value at the end of the tenth taxable year after such investor first qualifies for the incentives provided by this section; or its cost. In addition, at the election of the investor, the deduction for depreciation allowed with respect to such property under chapter 1 of such Code may, for the eleventh through the fifteenth taxable year after such investor first qualifies for the incentives provided by this section, be computed at the rate of 20 per centum of the basis of such property.
"(d) Where any member of a tribe who is receiving welfare income at the time he is employed in a new industry on a reservation by an investor who has qualified for the incentives provided by this section remains continuously employed in such industry during any taxable year, the investor shall be allowed a deduction from gross income, for the purposes of the Internal Revenue Code
of 1954, in addition to any other deductions otherwise allowable, for the first five taxable years beginning after the tenth taxable year after the investor first qualifies for the incentives provided by this section, during any of which such member of the tribe remains continuously employed. Such deduction. for each year in which allowable, shall equal thirty-six times the monthly welfare payment being made to such member of a tribe at a time he was first employed.
"(e) Where a new industry is established on a reservation and the investor therein qualifies for any of the incentives provided by this section, the Housing and Home F1nance Administrator, acting through the Community Facilities Administration, shall be authorized to make loans to the tribe located on such reservation for the same purposes, and to the same extent, as he is authorized to make such loans under title II of the Housing Amendments of 1955 to any smaller municipality.
"SEC. 808. (a) The Secretary of the Interior shall provide services to Indians under the various programs now in operation, including adult education and Vocational training, on a priority basis with the view toward cooperating in the training of employable Indians for positions in industries availing themselves of this Act.
"(b) The Secretary is authorized to lease for rentals, which may range from a fair market rental downward to nominal or no rentals, depending on the attraction of industry, any surplus or excess Federal lands (including improvements) under his jurisdiction.
"(c) The Secretary is authorized, in his discretion, to lend Federal funds to be used in conjunction with tribal funds in such ratio as the Secretary may prescribe for construction of buildings and other facilities for investors seeking to qualify, or already qualified for the incentives provided by section 7, but only if the rentals to be paid by the industry over a period not exceeding fifteen years equal the original investment in Federal and tribal funds, plus interest thereon at a rate of 4 per centum per annum.
"SEC. 809. (a) Section 201(a) of the National Housing Act is amended by striking out 'or (2)' and inserting in lleu thereof ', (2)', and by inserting immediately after 'was executed' the following: . or (3) on tribally owned land on any Indian reservation where such leasehold is for not less than twenty-five years, and is subject to an option to renew for an additional period of not less than twenty-five years'.
"(b) Section 207(a)(1) of the National Housing Act is amended by striking out 'or (B) and inserting in lieu thereof ', (B)', and by inserting immediately after 'was executed' the following: ', or (C) on tribally owned land on any Indian reservation where such lease is for not less than twenty-five years, and is subject to an option to renew for an additional period of not less than twenty-five years'.
"SEC. 810. (a) Section 18 of title 18, United States Code, shall apply to Indians and non