Date Acknowledgement of Receipt of Summary of Public Law 87-849 Location Executive Director President's Commission on Personnel Interchange I have received a copy of the Summary of Public Law 87-849 which deals with conflicts of interest and excerpts from Executive Order No. 11222 which prescribe standards of ethical conduct for Government officers and employees and which are applicable to Interchange Executives. I understand that during my appointment as an Interchange Executive, I will be subject to this Law and Executive Order. I further understand, that although my appointment as an Interchange Executive will be carefully screened for purposes of insuring compliance with this Law and Executive Order, should I at any time become aware of a possible conflict-of-interest situation or of a situation which gives rise to the appearance of a conflict of interest, I should bring the matter to the attention of the official designated for giving advice and counseling on such matters. Signature Print Name of Signer Title or Position. Company or Agency/Department_ I have delivered to the Executive whose name appears above a copy of Summary of Public Law 87-849 and excerpts from Executive Order 11222 (referred to above). Signature Print Name of Signer. Title or Position_ Avoiding Conflicts of Interest Here is a summary prepared by the Department of Justice of the main conflict of interest provisions of Public Law 87-849: A regular officer or employee of the Government-that is, one appointed or employed to serve more than 130 days in any period of 365 days-is in general subject to the following major prohibitions (the citations are to the new sections of title 18): 1. He may not, except in the discharge of his official duties, represent anyone else before a court or Government agency in a matter in which the United States is a party or has an interest. This prohibition applies both to paid and unpaid representation of another (18 U.S.C. 203 and 205). 2. He may not participate in his governmental capacity in any matter in which he, his spouse, minor child, outside business associate, or person with whom he is negotiating for employment has a financial interest (18 U.S.C. 208). 3. He may not, after his Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and in which he participated personally and substantially for the Government (18 U.S.C. 207(a)). 4. He may not, for one year after his Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and which was within the boundaries of his official responsibility during the last year of his Government service (18 U.S.C. 207(b)). This temporary restraint of course, gives way to the permanent restraint described in paragraph 3 if the matter is one in which he participated personally and substantially. 5. He may not receive any salary, or supplementation of his Government salary, from a private source as compensation for his services to the Government (18 U.S.C. 209). (This summary is taken from the Department of Justice memorandum Analyzing Provisions of Public Law 87-849, etc. It was reproduced as a part of the Committee Print, Senate Judiciary Committee, 88th Congress, 1st Session, March 1, 1963, p. 14. It will also be found in the note following 18 U.S.C. 201). Standards of Ethical Conduct EXECUTIVE ORDER 11222 PRESCRIBING STANDARDS OF ETHICAL CONDUCT FOR GOVERNMENT OFFICERS AND EMPLOYEES By virtue of the authority vested in me by section 301 of title 3 of the United States Code, and as President of the United States, it is hereby ordered as follows: PART I POLICY Section 101. Where government is based on the consent of the governed, every citizen is entitled to have complete confidence in the integrity of his government. Each individual officer, employee, or adviser of government must help to earn and must honor that trust by his own integrity and conduct in all official actions. PART II-STANDARDS OF CONDUCT Section 201. (a) Except in accordance with regulations issued pursuant to subsection (b) of this section, no employee shall solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from any person, corporation, or group which (1) has, or is seeking to obtain, contractual or other business or financial relationships with his agency; (2) conducts operations or activities which are regulated by his agency; or (3) has interests which may be substantially affected by the performance or nonperformance of his official duty. (b) Agency heads are authorized to issue regulations, coordinated and approved by the Civil Service Commission, implementing the provisions of subsection (a) of this section and to provide for such exceptions therein as may be necessary and appropriate in view of the nature of their agency's work and the duties and responsibilities of their employees. For example, it may be appropriate to provide exceptions (1) governing obvious family or personal relationships where the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors-the clearest illustration being the parents, children or spouse of federal employees; (2) permitting acceptance of food and refreshment available in the ordinary course of a luncheon or dinner or other meeting or on inspection tours where an employee may properly be in attendance; or (3) permitting acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans. This shall be effective upon issuance of such regulations. (c) It is the intent of this section that employees avoid any action, whether or not specifically prohibited by subsection (a), which might result in, or create the appearance of— (1) using public office for private gain; (2) giving preferential treatment to any organization or person; (3) impeding government efficiency or economy; (4) losing complete independence or impartiality of action; (5) making a government decision outside official channels; or (6) affecting adversely the confidence of the public in the integrity of the Government. Sec. 202. An employee shall not engage in any outside employment, including teaching, lecturing, or writing, which might result in a conflict, or an apparent conflict, between the private interests of the employee and his official government duties and responsibilities, although such teaching, lecturing, and writing by employees are generally to be encouraged so long as the laws, the provisions of this order, and Civil Service Commission and agency regulations covering conflict of interest and outside employment are observed. Sec. 203. Employees may not (a) have direct or indirect financial interests that conflict substantially, or appear to conflict substantially, with their responsibilities and duties as Federal employees, or (b) engage in, directly or indirectly, financial transactions as a result of, or primarily relying upon, information obtained through their employment. Aside from these restrictions, employees are free to engage in lawful financial transactions to the same extent as private citizens. Agencies may, however, further restrict such transactions in the light of the special circumstances of their individual missions. Sec. 204. An employee shall not use Federal property of any kind for other than officially approved activities. He must protect and conserve all Federal property, including equipment and supplies, entrusted or issued to him. Sec. 205. An employee shall not directly or indirectly make use of, or permit others to make use of, for the purpose of furthering a private interest, official information not made available to the general public. Sec. 206. An employee is expected to meet all just financial obligations, especially those such as Federal, State, or local taxes- which are imposed by law. Mr. DINGELL. I note that you do not refer to section 208, nor do you refer to the action which must be taken by the employee under section 208 (b). Now, I am getting you into a kind of technical morass, and I don't intend to hit you while you are floundering there, so let me just say that Mr. SMITH. I don't find 208 (b), but I do find section 208 on here. Mr. DINGELL. Section 208 (b) happens to be an extremely important section, because that relates to exemptions. And if you would, at your convenience, after you talk with your counsel and your staff, would you give us an answer indicating what you feel should be done with regard to possibly including reference not only to the requirements of section 208 (a), but also 208 (b) and our counsel will work with you and your folks to enable you to give us an appropriate answer to that particular point. Mr. SMITH. Fine. [The information was not received.] Mr. DINGELL. Now, again, these are old cases, but they are old cases that happen to trouble me very greatly. Let's turn to the case of Mr. Bowen, which brought this matter very forcefully to my attention. Can you give us, after you get back and have time to review the matter, statements as to what can be done with regard to prevention of the utilization of the program under the circumstances that it was utilized in the Bowen case and what changes in the procedures and requirements that you have down there that you do utilize in that particular Mr. SMITH. Mr. Chairman, may I comment on one thing right now? If I remember the reports I have had, Mr. Bowen moved from one position in the agency to another. And it was in the new position that there were claims of conflict of interest. Mr. DINGELL. Well, this subcommittee found rather clear evidence of it. Mr. SMITH. Then we have made the change whereby no one may change assignments without notifying the Commission office. So that that can be reviewed again for conflict of interest. Mr. DINGELL. I think that is a highly desirable change. Let me come down to another case that I find very much troubling. It's the case of a fellow by the name of Van Reen, Consumer Power Co. He was assigned to the Assistant Secretary of Water and Power Resources at the Department of the Interior. And he wrote to Neil Stein, advising PEIP that he had a special work assignment that designated an Interior Department representative on the OMB task force, which is designed to simplify and speed internal Federal processing procedures within and amongst agencies on powerplant siting. And here he worked with OMB, FTC, AEC, EPA, and the Corps of Engineers. And he also worked very specifically on powerplant siting legislation, which was a matter of very special concern to his employers, and which was highly controversial legislation, bitterly fought out in another committee of which I am a member. I am curious about what actions or what requirements you would impose at this time with regard to legislative undertakings and possible conflicts with regard to legislation and with regard to formulation of an administrative position, and with regard to legislation? Mr. SMITH. Well Mr. DINGELL. I think you can probably submit that to us. That would be most helpful. [Exhibit 5 follows:] EXHIBIT 5 PENDING PCEI LEGISLATION To Establish the President's Commission on Executive Interchange and for Other Purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress find that (1) mutual understanding by executives in both the public and private sectors of the other sector will enhance responsible cooperation among them and contribute to the further progress of our nation; (2) it is in the public interest and important to the development of future leadership of the United States that the most outstanding executives in each sector be given the opportunity to work in challenging and responsible positions in the other sector; (3) therefore, in order to implement and support, on a continuing basis, a means through which executives in both sectors can gain an understanding of the processes of each other's sector, the President's Commission on Executive Interchange should be established. SEC. 2. (a) Chapter 33 of Title 5, United States Code, is amended by inserting the following new subchapter at the end thereof: SUBCHAPTER VIII-EXECUTIVE INTERCHANGE § 3391. Definitions (a) For the purposes of this chapter, a "public sector executive" means an executive or senior career employee of the Executive Branch of the Federal Government. (b) A “private sector executive" means an executive occupying a management or administrative position in a non-governmental organization. § 3392. The President's Commission on Executive Interchange (a) There is established as an independent establishment the President's Commission on Executive Interchange in the Executive branch (hereinafter referred to as the "Commission"), to be composed of not more than 20 persons, consisting of such officials in the Executive Branch of the Federal Government and such persons from the private sector as the President may from time to time appoint. The President shall designate one of the members as Chairman. Each appointment shall be for a term of two years, unless sooner terminated by the President. The Commission shall meet at the call of the Chairman. (b) Members of the Commission who are officials of the Federal Government shall serve without additional pay. Members of the Commission appointed from the private sector shall serve without pay, but shall be entitled to travel expenses, including a per diem allowance in accordance with section 5703 (b) of this title. (c) The Commission is authorized to appoint an executive director without regard to the Civil Service laws, at an appropriate grade in the general schedule. The Executive Director is authorized, in accordance with the provisions of this title, to appoint such other personnel as may be necessary to administer the program provided by this Act and is authorized to procure the services of experts and consultants in accordance with the provisions of section 3109 of this title, but at rates not to exceed the daily rate of GS-18. § 3393. Functions of the Commission The President's Commission on Executive Interchange shall: (1) develop an Interchange Program under which outstanding public sector and private sector executives will be selected by the Commission and placed in positions offering challenge and responsibility in the other sector; (2) establish procedures and guidelines for avoiding conflicts of interest in accordance with section 3394; (3) develop an educational program designed to acquaint Interchange executives with the various processes of the Federal and private sectors; (4) supervise, review, and evaluate the operation of the Program and recommend to the President ways to promote interchange between the Federal Government and the private sector; and 69-982 O 76 - 13 |