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Additional quottlon* — Continued

28. Expltin how you wUI nHOlvt my pot.ntiil eonfllcti ol mtoroat Bui miy ****

luliitt It you»r» confirm* tor tht portion te which you havo boon nominal.

Tf. in the future. I am confronted by « situation thatnay create .

.. .«u.l or apparent conflict of In ■ I win seel, the advice and

..rId.nce of S .ervlclnn ethics coun.elor before proceeding.

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July 20, 1995

The Honorable Frank H. Murkowski

Chairman

Committee on Energy and Natural Resources

United States Senate

Washington, DC 20510-6150

Dear Mr. Chairman:

In accordance with the Ethics in Government Act of 1978, I enclose a copy of the financial disclosure report filed by Eluid L. Martinez, who has been nominated by President Clinton for the position of Commissioner, Bureau of Reclamation, Department of the Interior (DOI).

We have reviewed the report and have also obtained advice from the DOI concerning any possible conflict in light of its functions and the nominee's proposed duties. Also enclosed is a letter, dated July 19, 1995, from DOI's ethics official which discusses Mr. Martinez's ethics agreement with respect to recusals.

Based thereon, we believe that Mr. Martinez is in compliance with applicable laws and regulations governing conflicts of interest.

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United States Department of the Interior

OFFICE OF THE SECRETARY

U uhiiijion DC XKM

JUL I 9 1996

Mr. Stephen D. Potts

Director

U.S. Office of Government Ethics

Suite 500

1201 New York Avenue, N.W.

Washington D.C. 20005-3917

Dear Mr. Potts:

The enclosed financial disclosure report filed by Eluid L Martinez for the position of Commissioner, Bureau of Reclamation, has been reviewed in compliance with 5 CFR 2634.605.

In addition to the standard conflict of interest prohibitions contained in 18 U.S.C. §§ 201 - 209 and Executive Order 12674 (as modified by Executive Order 12731), the Commissioner, Bureau of Reclamation, is also subject to five statutory prohibitions that apply to employees in our Department. These statutory prohibitions are: 18 U.S.C. § 437; 30 U.S.C. § 6; 30 U.S.C. § 1211(0; 43 U.S.C. § 11; and 43 U.S.C. § 31(a). Except for 30 U.S.C. § 1211(f), the provisions of each of these statutes are extended to the Commissioner, Bureau of Reclamation by Department of the Interior regulations contained in 43 CFR Part 20.735.

Mr. Martinez is the former State Engineer for the State of New Mexico. He retired from ihis position on December 30,1994 . Presently, the only interests Mr. Martinez retains with the State of New Mexico are the benefits he receives from the public employees retirement plan and the deferred compensation plan. Both plans are administered by the State of New Mexico Public Employees Retirement Board whose members are elected by the participants of the State's Public Employees Retirement Plan.

The State's retirement plan is a defined benefit plan which gives Mr. Martinez, a monthly benefit payment of $3,049 for the rest of his life. Mr. Martinez's participation in the State sponsored deferred compensation plan allows him to receive a monthly benefit payment of $450 for a total of 20 months beginning January 1. 1995. The deferred compensation plan is independently managed with investments in Nationwide Insurance Company. The State of New Mexico makes no contributions to this plan on Mr. Martinez's behalf. Because of his continuing interest in the State.s pension plans, Mr. Martinez has agreed, upon confirmation as Commissioner of the Bureau of Reclamation, to recuse himself from all particular matters that have a direct and predictable effect on the State of New Mexico Public Employees Retirement Board.

Since his retirement from the State of New Mexico, Mr. Martinez has resigned or terminated his involvement with the organizations listed in Part I, Schedule D of his SF-278 Report. His involvement with these organizations were part of his official responsibilities as State Engineer. To avoid any appearance of impropriety and to comply with the Senate Committee's recusal policy, Mr. Martinez has also agreed to disqualify himself from all particular matters that involve the activities of the New Mexico State Engineer's Office through December 31, 1995. Mr. Martinez's recusal will not extend to general rule making, general legislation, or the formulation of general policy matters.

Based on our review of the information provided, I have determined and certified that Mr. Martinez is in compliance with the ethics statutes and regulations which apply to the Commissioner, Bureau of Reclamation. Should you have any questions concerning the report submitted by Mr. Martinez, please call Gabe Paone on 208-7960 or Mason Tsai on 208-5916.

Thank you.

Sincerely,

heresa Trujeque
Deputy Assistant Secretary for Human
Resources and Designated Agency Ethics
Official

Enclosure

cc: Mr. Martinez

DOl/OCL - 2 copies

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