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 a 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, offi- 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 in 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 OF 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 a 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
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.
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
"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
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 a 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.
(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
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.
In the main the prior conflict of interest laws imposed the same restrictions on individuals who serve
TITLE 18-CRIMES AND CRIMINAL PROCEDURE
the Government intermittently or for a short period of time as on those who serve full-time. The conse- quences of this generalized treatment were pointed out in the following paragraph of the Senate Judiciary Committee report on the bill which became Public Law 87-849:"
In considering the application of present law in rela- tion to the Government's utilization of temporary or intern ittent consultants and advisers, it must be em- phasized that most of the existing conflict-of-interest statutes were enacted in the 19th century-that is, at a time when persons outside the Government rarely served it in this way. The laws were therefore directed at activities of regular Government employees, and their present impact on the occasionally needed ex- perts-those whose main work is performed outside the Government-is unduly severe. This harsh impact constitutes an appreciable deterrent to the Govern- ment's obtaining needed part-time services.
The recruiting problem noted by the Committee generated a major part of the impetus for the enact- ment of Public Law 87-849. The Act dealt with the problem by creating a category of Government em- ployees termed "special Government employees" and by excepting persons in this category from certain of the prohibitions imposed on ordinary employees. The new 18 U.S.C. 202(a) defines the term "special Govern- ment employee" to include, among others, officers and employees of the departments and agencies who are appointed or employed to serve, with or without com- pensation, for not more than 130 days during any period of 365 consecutive days either on a full-time or intermittent basis.
SUMMARY 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 sub- lect to the following major prohibitions (the citations
(b) He may not, except in the discharge of his offi- cial duties, represent anyone else in a matter pending before the agency he serves unless he has served there no more than 60 days during the past 365 (18 U.S.C. 203 and 205). He is bound by this restraint despite the fact that the matter is not one in which he has ever participated personally and substantially.
The restrictions described in subparagraphs (a) and (b) apply to both paid and unpaid representation of another. These restrictions in combination are, of course, less extensive than the one described in the corresponding paragraph 1 in the list set forth above with regard to regular employees.
2. He may not participate in his governmental capac- ity 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 1 year after his Government em- ployment 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 respon- sibility during the last year of his Government service (18 U.S.C. 207(b)). This temporary restraint of course gives way to the permanent restriction described in paragraph 3 if the matter is one in which he partici- pated personally and substantially.
It will be seen that paragraphs 2, 3, and 4 for special Government employees are the same as the corre- sponding paragraphs for regular employees. Para- graph 5 for the latter, describing the bar against the receipt of salary for Government work from a private source, does not apply to special Government employ-
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 Gov- ernment 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 an- other (18 U.S.C. 203 and 205).
2. He may not participate in his governmental capac- ity 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 1 year after his Government em- ployment 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 respon- sibilities during the last year of his Government ser- vice (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 partici- pated personally and substantially.
5. He may not receive any salary, or supplementa- tion of his Government salary, from a private source as compensation for his services to the Government (18 U.S.C. 209).
A special Government employee is in general subject only to the following major prohibitions:
1. (a) 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 in interest and in which he has at any time participated personally and substantially for the Government (18 U.S.C. 203 and 205).
As appears below, there are a number of exceptions to the prohibitions summarized in the two lists.
COMPARISON OF OLD AND NEW CONFLICT OF INTEREST SECTIONS OF TITLE 18, UNITED STATES CODE
New 18 U.S.C. 203. Subsection (a) of this section in general prohibits a Member of Congress and an officer or employee of the United States in any branch or agency of the Government from soliciting or receiving compensation for services rendered on behalf of an- other person before a Government department or agency in relation to any particular matter in which the United States is a party or has a direct and sub- stantial interest. The subsection does not preclude compensation for services rendered on behalf of an- other in court.
Subsection (a) is essentially a rewrite of the repealed portion of 18 U.S.C. 281. However, subsections (b) and (c) have no counterparts in the previous statutes.
Subsection (b) makes it unlawful for anyone to offer or pay compensation the solicitation or receipt of which is barred by subsection (a).
Subsection (c) narrows the application of subsection (a) in the case of a person serving as a special Govern- ment employee to two, and only two, situations. First, subsection (c) bars him from rendering services before the Government on behalf of others, for compensa- tion, in relation to a matter involving a specific party or parties in which he has participated personally and substantially in the course of his Government duties. And second, it bars him from such activities in relation to a matter involving a specific party or parties, even though he has not participated in the matter person- ally and substantially, if it is pending in his depart- ment or agency and he has served therein more than 60 days in the immediately preceding period of a year. New 18 U.S. C. 205. This section contains two major prohibitions. The first prevents an officer or employee of the United States in any branch or agency of the Government from acting as agent or attorney for pros-
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