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Ex. ORD. No. 11222. STANDARDS OF ETHICAL CONDUCT

FOR GOVERNMENT OFFICERS AND EMPLOYEES
Ex. Ord. No. 11222, May 8, 1965, 30 F.R. 6469, as
amended by Ex. Ord. No. 11590, Apr. 23, 1971, 36 F.R.
7831, provided:

By virtue of the authority vested in me by Section
301 of Title 3 of the United States Code, and as Presi-
dent of the United States, it is hereby ordered as fol-
lows:

PART I-POLICY
SECTION 101. Where government is based on the con-
sent of the governed, every citizen is entitled to have
complete confidence in the integrity of his govern-
ment. 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.

Sec. 203. Employees may not (a) have direct or indi-
rect financial interests that conflict substantially, or
appear to conflict substantially, with their responsibil.
ities 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 restric-
tions, employees are free to engage in lawful financial
transactions to the same extent as private citizens.
Agencies may, however, further restrict such transac-
tions in the light of the special circumstances of their
individual missions.

SEC. 204. An employee shall not use Federal proper-
ty of any kind for other than officially approved ac-
tivities. 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 infor-
mation not made available to the general public.

SEC. 206. An employee is expected to meet all just fi-
nancial obligations, especially those-such as Federal,
State, or local taxes—which are imposed by law.

PART II-STANDARDS OF CONDUCT
SECTION 201. (a) Except in accordance with regula-
tions issued pursuant to subsection (b) of this section,
no employee shall solicit or accept, directly or indirect-
ly, 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 regu. lated 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 Com-
mission, 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

PART III-STANDARDS OF ETHICAL CONDUCT FOR

SPECIAL GOVERNMENT EMPLOYEES
SECTION 301. This part applies to all “special Govern-
ment employees” as defined in Section 202 of Title 18
of the United States Code, who are employed in the
Executive Branch.

SEC. 302. A consultant, adviser or other special Gov-
ernment employee must refrain from any use of his
public office which is motivated by, or gives the ap-
pearance of being motivated by, the desire for private
gain for himself or other persons, including particular-
ly those with whom he has family, business, or finan-
cial ties.

Sec. 303. A consultant, adviser, or other special Gov.
ernment employee shall not use any inside informa-

TITLE 18-CRIMES AND CRIMINAL PROCEDURE

Page 1026

terests by such employees, subordinate to the heads of
agencies, as the Commission may designate. The Com-
mission shall prescribe the form and content of such
statements and the time or times and places for such
submission.

SEC. 403. (a) The interest of a spouse, minor child, or
other member of his immediate household shall be
considered to be an interest of a person required to
submit a statement by or pursuant to this part.

(b) In the event any information required to be in-
cluded in a statement required by or pursuant to this
part is not known to the person required to submit
such statement but is known to other persons, the
person concerned shall request such other persons to
submit the required information on his behalf.

(c) This part shall not be construed to require the
submission of any information relating to any person's
connection with, or interest in, any professional soci-
ety or any charitable, religious, social, fraternal, edu-
cational, recreational, public service, civic, or political
organization or any similar organization not conduct-
ed as a business enterprise and which is not engaged in
the ownership or conduct of a business enterprise.

SEC. 404. The Chairman of the Civil Service Commis-
sion shall report to the President any information con-
tained in statements required by Section 401 of this
part which may indicate a conflict between the finan-
cial interests of the official concerned and the perfor-
mance of his services for the Government. The Com-
mission shall report, or by regulation require report-
ing, to the head of the agency concerned any informa-
tion contained in statements submitted pursuant to
regulations issued under Section 402 of this part
which may indicate a conflict between the financial in-
terests of the officer or employee concerned and the
performance of his services for the Government.

Sec.. 405. The statements and amended statements
required by or pursuant to this part shall be held in
confidence, and no information as to the contents
thereof shall be disclosed except as the Chairman of

8 201

tion obtained as a result of his government service for
private personal gain, either by direct action on his
part or by counsel, recommendations or suggestions to
others, including particularly those with whom he has
family, business, or financial ties.

SEC. 304. An adviser, consultant, or other special
Government employee shall not use his position in
any way to coerce, or give the appearance of coercing,
another person to provide any financial benefit to him
or persons with whom he has family, business, or fi-
nancial ties.

SEC. 305. An adviser, consultant, or other special
Government employe shall not receive or solicit from
persons having business with his agency anything of
value as a gift, gratuity, loan or favor for himself or
persons with whom he has family, business, or finan-
cial ties while employed by the government or in con-
nection with his work with the government.

Sec. 306. Each agency shall, at the time of employ-
ment of a consultant, adviser, or other special Govern.
ment employee require him to supply it with a state-
ment of all other employment. The statement shall
list the names of all the corporations, companies,
firms, State or local governmental organizations, re-
search organizations and educational or other institu-
tions in which he is serving as employee, officer,
member, owner, director, trustee, adviser, or consul.
tant. In addition, it shall list such other financial in-
formation as the appointing department or agency
shall decide is relevant in the light of the duties the
appointee is to perform. The appointee may, but need
not, be required to reveal precise amounts of invest-
ments. The statement shall be kept current through-
out the period during which the employee is on the
Government rolls.

PART IV-REPORTING OF FINANCIAL INTERESTS
SECTION 401. (a) Not later than ninety days after the
date of this crder, the head of each agency, each
Presidential appointee in the Executive Office of the

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agency. each in the Executive Office of the

statements quired by or pursuant to this part shall be held in confidence. and

no thereof

information as to the contents shilli dixclosed except

the Chairman of

President who is not subordinate to the head of an
agency in that Office, and each full-time member of a
committee, board, or commission appointed by the
President, shall submit to the Chairman of the Civil
Service Commission & statement containing the fol.
lowing:

(1) A list of the names of all corporations, compa-
nies, firms, or other business enterprises, partnerships,
nonprofit organizations, and educational or other in-
stitutions-

(A) with which he is connected as an employee, offl-
cer, owner, director, trustee, partner, adviser, or con-
sultant; or

(B) in which he has any continuing financial inter-
est, through a pension or retirement plan, shared
income, or otherwise, as a result of any current or
prior employment or business or professional associ-
ation; or

(C) in which he has any financial interest through
the ownership of stocks, bonds, or other securities.

(2) A list of the names of his creditors, other than
those to whom he may be indebted by reason of a
mortgage on property which he occupies as a personal
residence or to whom he may be indebted for current
and ordinary household and living expenses.

(3) A list of his interests in real property or rights in
lands, other than property which he occupies as a per-
sonal residence.

(b) Each person who enters upon duty after the date
of this order in an office or position as to which a
statement is required by this section shall submit such
statement not later than thirty days after the date of
his entrance on duty.

(c) Each statement required by this section shall be
kept up to date by submission of amended statements
of any changes in, or addition to, the information re-
quired to be included the original statement, on a
quarterly basis.

Sec. 402. The Civil Service Commission shall pre-
scribe regulations, not inconsistent with this part, to
require the submission of statements of financial in-

the Civil Service Commission or the head of the
agency concerned may determine for good cause
shown.

SEC. 406. The statements and amended statements
required by or pursuant to this part shall be in addi-
tion to, and not in substitution for, or in derogation of,
any similar requirement imposed by law, regulation, or
order. The submission of a statement or amended
statements required by or pursuant to this part shall
not be deemed to permit any person to participate in
any matter in which his participation is prohibited by
law, regulation, or order.
PART V-DELEGATING AUTHORITY OF THE PRESIDENT

UNDER SECTIONS 205 AND 208 or TITLE 18 OF THE
UNITED STATES CODE RELATING TO CONFLICTS OF IN-
TEREST

SECTION 501. As used in this part, “department"
means an executive department, "agency" means an
independent agency or establishment or & Govern-
ment corporation. and "head of an agency" means, in
the case of an agency headed by more than one
person, the chairman or comparable member of such
agency.

Sec. 502. There is delegated, in accordance with and
to the extent prescribed in Sections 503 and 504 of
this part, the authority of the President under Sec-
tions 205 and 208(b) of Title 18, United States Code, to
permit certain actions by an officer or employee of the
Government, including a special Government employ-
ee, for appointment to whose position the President is
responsible,

Sec. 503. Insofar as the authority of the President
referred to in Section 502 extends to any appointee of
the President subordinate to or subject to the chair.
manship of the head of a department or agency, It is
delegated to such department or agency head.

Sec. 504. Insofar as the authority of the President referred to in Section 502 extends to an appointee of the President who is within or attached to a depart

TITLE 18-CRIMES AND CRIMINAL PROCEDURE

8 201

"employee" means any officer or employee of an agency.

SEC. 706. This Order shall be applicable to the
United States Postal Service established by the Postal
Reorganization Act of 1970 (Title 39, Postal Service).

LYNDON B. JOHNSON.
MEMORANDUM OF ATTORNEY GENERAL REGARDING CON-

FLICT OF INTEREST PROVISIONS OF PUBLIC LAW 87-849,
FEB. 1, 1963, 28 F.R. 985

JANUARY 28, 1963.
Public Law 87-849, “To strengthen the criminal laws
relating to bribery, graft, and conflicts of interest, and
for other purposes," came into force January 21, 1963.
A number of departments and agencies of the Govern-
ment have suggested that the Department of Justice
prepare and distribute a memorandum analyzing the
conflict of interest provisions contained in the new
act. I am therefore distributing the attached memo
randum.

One of the main purposes of the new legislation
merits specific mention. That purpose is to help the
Government obtain the temporary or intermittent ser
vices of persons with special knowledge and skills
whose principal employment is outside the Govern-
ment. For the most part the conflict of interest stat.
utes superseded by Public Law 87-849 imposed the
same restraints on a person serving the Government
temporarily or intermittently as on a full-time em-
ployee, and those statutes often had an unnecessarily
severe impact on the former. As a result, they impeded
the departments and agencies in the recruitment of
experts for important work. Public Law 87-849 meets
this difficulty by imposing å lesser array of prohibi-
tions on temporary and intermittent employees than
on regular employees. I believe that a widespread ap-
preciation of this aspect of the new law will lead to a
significant expansion of the pool of talent on which
the departments and agencies can draw for their spe-
cial needs.

ROBERT F. KENNEDY,

Attorney General

Page 1027

ment or agency for purposes of administration, it is delegated to the head of such department or agency.

Sec. 505. Notwithstanding any provision of the pre-
ceding sections of this part to the contrary, this part
does not include a delegation of the authority of the
President referred to in Section 502 insofar as It ex-
tends to:

(a) The head of any department or agency in the Ex-
ecutive Branch;

(b) Presidential appointees in the Executive Office
of the President who are not subordinate to the head
of an agency in that Office; and

(c) Presidential appointees to committees, boards,
commissions, or similar groups established by the
President.

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PART VI-PROVIDING FOR THE PERFORMANCE BY THE

CIVIL SERVICE COMMISSION OF CERTAIN AUTHORITY
VESTED IN THE PRESIDENT BY SECTION 1753 OF THE RE-
VISED STATUTES

SECTION 601. The Civil Service Commission is desig-
nated and empowered to perform, without the approv.
al, ratification, or other action of the President, so
much of the authority vested in the President by Sec-
tion 1753 of the Revised Statutes of the United States
(5 U.S.C. 631) (now covered by sections 3301 and 7301
of Title 5] as relates to establishing regulations for the
conduct of persons in the civil service.

SEC. 602. Regulations issued under the authority of
Section 601 shall be consistent with the standards of
ethical conduct provided elsewhere in this order.

:

PART VII-GENERAL PROVISIONS
SECTION 701. The Civil Service Commission is autho-
rized and directed, in addition to responsibilities as-
signed elsewhere in this order:

(a) To issue appropriate regulations and instructions
implementing Parts II, III, and IV of this order;

(b) To review agency regulations from time to time for conformance with this order; and

President from

time

to

sing a lesser array of prohibitions on temporary and intermittent employees than on regular employees. I believe that a widespread appreciation of this aspect of the new law will lead to a Bignificant.expansion

of talent which

or

the pool

lies as-
in this order:
(a) To issue appropriate regulations and instructions
implementing Parts II, III, and IV of this order:
for conformance with this orders and
(b) To review agency regulations from time to time

(c) To recommend to the President from time to
time such revisions in this order as may appear neces-
sary to ensure the maintenance of high ethical stan-
dards within the Executive Branch.

SEC. 702. Each agency head is hereby directed to
supplement the standards provided by law, by this
order, and by regulations of the Civil Service Commis-
sion with regulations of special applicability to the
particular functions and activities of his agency. Each
agency head is also directed to assure (1) the widest
possible distribution of regulations issued pursuant to
this section, and (2) the availability of counseling for
those employees who request advice or interpretation.

Sec. 703. The following are hereby revoked:
(a) Executive Order No. 10939 of May 5, 1961.
(b) Executive Order No. 11125 of October 29, 1963.

(c) Section 2(a) of Executive Order No. 10530 of May
10, 1954.

(d) White House memorandum of July 20, 1961, on
“Standards of Conduct for Civilian Employees.

(e) The President's Memorandum of May 2, 1963,
"Preventing Conflicts of Interest on the Part of Spe-
cial Government Employees.” The effective date of
this revocation shall be the date of issuance by the
Civil Service Commission of regulations under Section
701(a) of this order.

Sec. 704. All actions heretofore taken by the Presi-
dent or by his delegates in respect of the matters af.
fected by this order and in force at the time of the is-
suance of this order, including any regulations pre-
scribed or approved by the President or by his dele-
gates in respect of such matters, shall, except as they
may be inconsistent with the provisions of this order
or terminate by operation of law, remain in effect
until amended, modified, or revoked pursuant to the
authority conferred by this order.

SEC. 705. As used in this order, and except as other-
wise specifically provided herein, the term "agency"
means any executive department, or any independent
agency or any Government corporation; and the term

ROBERT F. KENNEDY,

Attorney General
MEMORANDUM RE THE CONFLICT OF INTEREST PROVISIONS

OF PUBLIC LAW 87-849, 76 STAT. 1119, APPROVED Oc-
TOBER 23, 1962

INTRODUCTION
Public Law 87-849, which came into force January
21, 1963, affected seven statutes which applied to offi-
cers and employees of the Government and were gen-
erally spoken of as the “conflict of interest" laws.
These included six sections of the criminal code, 18
U.S.C. 216, 281, 283, 284, 434 and 1914, and a statute
containing no penalties, section 190 of the Revised
Statutes (5 U.S.C. 99). Public Law 87-849 (sometimes
referred to hereinafter as "the Act") repealed section
190 and one of the criminal statutes, 18 U.S.C. 216,
without replacing them.' In addition it repealed and
supplanted the other five criminal statutes. It is the
purpose of this memorandum to summarize the new
law and to describe the principal differences between
it and the legislation it has replaced.

The Act accomplished its revisions by enacting new
sections 203, 205, 207, 208 and 209 of title 18 of the
United States Code and providing that they supplant
the above-mentioned sections 281, 283, 284, 434 and
1914 of title 18 respectively.' It will be convenient,
therefore, after summarizing the principal provisions
of the new sections, to examine each section separate-
ly, comparing it with its precursor before passing to
the next. First of all, however, it is necessary to de-
scribe the background and provisions of the new 18
U.S.C. 202(a), which has no counterpart among the
statutes formerly in effect.

SPECIAL GOVERNMENT EMPLOYEES (NEW 18 U.S.C.

202(a)] In the main the prior conflict of interest laws imposed the same restrictions on individuals who serve

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