C. POTENTIAL CONFLICTS OF INTEREST Question 1. Describe all financial arrangements, deferred compensation agreements, and other dealings with business associates, clients, or customers. Answer. All such financial arrangements, deferred compensation agreements or other such dealings with business associates, clients or customers will be terminated prior to my confirmation hearing. Question 2. Indicate any investments, obligations, liabilities, or other relationships which could involve potential conflicts of interest in the position to which you have been nominated. Answer. None. Question 3. Describe any business relationship, dealing or financial transaction which you have had during the last 10 years, whether for yourself, on behalf of a client, or acting as an agent, that could in any way constitute or result in a possible conflict of interest in the position to which you have been nominated. Answer. None. Question 4. Describe any activity during the past 10 years in which you have engaged for the purpose of directly or indirectly influencing the passage, defeat or modification of any legislation or affecting the administration and execution of law or public policy. Answer. 1986-88: Wunder & Deifenderfer Clients: Log Export Legislation and timber supply issues generally-H.R. 1587; H.R. 2532 A bill to amend title V, U.S. Code, to include Inspectors of the Immigration and Naturalization Service, Inspectors of the U.S. Customs Service, and Revenue Officers of the Internal Revenue Service within the immediate retirement provisions applicable to certain employees engaged in hazardous occupation; Technical corrections to the Tax Reform Act of 1986; and Legislation creating third party right of access to satellite delivered programming. 1985-10/86: None. Employed by the United States Senate Committee on Finance. 1983-84: McNair Law Firm Clients: Legislation with respect to financial interest rules and syndication rules; Deregulation of old gas; Legislation blocking takeover of an oil company; H.R. 4170 Tax legislation affecting depreciation of telecommunication satellites; Loss of broadcast license by one corporation; Legislation giving antitrust protection to a professional sports league; Sale of Conrail; Legislation supporting employee (union) contractual rights in bankruptcy; S. 1992 In support of legislation benefitting state student loan programs; S. 19992 In support of Voluntary Employee Benefit Associations (Tax); S. 2996 Legislation sunsetting the Civil Aeronautics Board; S. 1992 Municipal bond legislation affecting one Midwestern cities' industrial development. 1979-4/83: None. Employed by the United States Senate Committee on Commerce, Science and Transportation. My answer to this question does not reflect any legislative matters I worked on as a Federal employee. Question 5. Explain how you will resolve any potential conflict of interest, including any that may be disclosed by your responses to the above items. (Please provide copies of any trust or other agreements.) Answer. I know of no conflict. Should one arise I will recuse myself from the matter in question. Question 6. Do you agree to have written opinions provided to the committee by the designated agency ethics officer or the agency to which you are nominated and by the Office of Government Ethics concerning potential conflicts of interest or any legal impediments to your serving in this position. Answer. Yes. D. LEGAL MATTERS Question 1. Have you ever been disciplined or cited for a breach of ethics for unprofessional conduct by, or been the subject of a complaint to any court, administrative agency, professional association, disciplinary committee, or other professional group? If so, provide details. Answer. No. Question 2. Have you ever been investigated, arrested or held by any Federal, State, or other law enforcment authority for violation of any Federal, State, country or municipal law, regulation or ordinance, other than a minor traffic offense. If so, provide details. Answer. Yes; arrested in 1984 driving under the influence of alcohol. All charges dropped after completion of diversion program. Question 3. Have you or any business of which you are or were an officer even been involved as a party in interest in any administrative agency proceeding or civil litigation? If so, provide details. Answer. No. Question 4. Have you ever been convicted (including pleas of guilty or nolo contendere) of any criminal violation other than a minor traffic offense? Answer. No. Question 5. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be considered in connection with your nomination. Answer. None. E. FINANCIAL DATA (RETAINED IN COMMITTEE FILES) AFFIDAVIT William Martin Diefenderfer III being duly sworn, hereby states that he has read and signed the foregoing Statement on Biographical and Financial Information and that the information provided therein is, to the best of his knowledge current, accurate, and complete. Economic policy and budget process... The Paperwork Reduction Act, regulatory reform, information policy, and the Office of Information and Regulatory Affairs.. I. NOMINATION PROCESS AND POTENTIAL CONFLICTS Page 48 Question. 1. Were any conditions, expressed or implied, attached to your nomina- Answer. No. Question 2. Have you made any commitments with respect to the policies and pro- grams which you will attempt to implement as Deputy Director of OMB? If so what Question 3. Are there any issues involving OMB from which you may have to dis- qualify yourself? If so, please explain. Answer. I believe there are no policy, budget, or regulatory issues involving OMB with respect to which I will be legally required to disqualify myself, if I am con- firmed. I sold all assets that the Office of Government Ethics thought would create a conflict or an appearance of a conflict. With regard to assets I now hold, I am not aware of any reason that might require disqualification. In response to the Commit- tee's request for biographical and financial information I noted prior relationships with certain firms or groups. To the best of my knowledge, I have no continuing financial interest in any of these firms or groups. However, to avoid even the appearance of conflict, I intend to recuse myself from: (1) Any particular tax legislative matter or particular activity before the I.R.S. in- volving all firms or groups I represented on tax legislative matters or before the I.R.S. This list, fourteen in number, is enumerated and identified in response to sup- plemental question #1 I provided to the Committee. (This recusal does not include issues of broad or general policy affecting a larger class of parties of which these companies may be one and will be for one year); (2) Any particular matter involving United Savings Association of Texas acquisi- tion of failed or failing savings and loan institutions (this recusal does not apply to matters of general policy affecting the Savings and Loan industry.) (3) Any particular matter involving the Federation of Postal Police Officers as it pertains to labor-management issues. This recusal will be for one year. (4) Participation in any governmental action directly and specifically addressing the acquisition by Henely Group of a Federally regulated firm. (5) Participation in any particular matter directly and specifically involving Phil- lip Morris' compliance with Federal Pension Law (this recusal does not include issues of broad or general policy affecting large class of parties of which Phillip Morris might be merely one. This recusal will be for one year.) § 208. Acts affecting a personal financial interest (a) Except as permitted by subsection (b) hereof, whoever being an officer or em- ployee of the executive branch of the United States Government, of any independ- tion, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which, to knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner or employee, or any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest Shall be fined not more than $10,000, or imprisoned not more than two years, or both. (b) Subsection (a) hereof shall not apply (1) if the officer or employee first advises the Government official responsible for appointment to his position of the nature and circumstances of the judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusatioin, arrest, or other particular matter and makes full disclosure of the financial interest and receives in advance a written determination made by such official that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such officer or employee, or (2) if, by general rule or regulation published in the Federal Register, the financial interest has been exempted from the requirements of clause (1) hereof as being too remote or too inconsequential to affect the integrity of Government officers' or employees' services. In the case of class A and B directors of Federal Reserve banks, the Board of Governors of the Federal Reserve System shall be the Government official responsible for appointment. (As amended Pub.L. 95-188, Title II, § 205, Nov. 16, 1977, 91 Stat. 1388.) II. ROLE AND RESPONSIBILITIES OF OMB DEPUTY DIRECTOR Question 1. What do you consider to be the mission of OMB? Answer. The mission of OMB is to assist the President in the preparation of the budget and the formulation of the fiscal programs of the Government, to supervise and control the administration of the budget, and to aid the President to bring about increased efficiency through improved management of government operations. The mission of OMB additionally includes responsibility for a number of central coordination and clearance functions, such as clearance of agency recommendations concerning proposed legislation and Presidential action on enrolled bills and clearance of Executive orders and Proclamations. Statutory duties of OMB also include overall direction of procurement policy through the Office of Federal Procurement Policy and overall supervision of information and paperwork policy through the Office of Information and Regulatory Affairs. Other management duties have been assigned to OMB by other statutes, such as the Prompt Payment Act, the Debt Collection Act and the Computer Security Act. In essence, the mission of OMB is to act as the President's principal arm for the exercise of his budgetary and managerial functions. Question 2. What will be your basic role and responsibilities as Deputy Director? Answer. The basic role and responsibilities of the Deputy Director are to carry out the duties and powers prescribed by the Director and to act as Director when the Director is absent or unable to serve. 5 U.S.C. 502(b). In addition, the Deputy Director performs a number of functions pursuant to Executive Order or OMB regulations. These include the functions of acting as Chairman of the President's Council on Integrity and Efficiency (E.O. 12301), and Chairman of the President's Council on Management Improvement (E.O. 12479). OMB regulations and internal directives also give the Deputy Director various responsibilities regarding standards of conduct, Freedom of Information Act, equal employment opportunity, and Privacy Act matters. Ultimately, aside from functions conferred by statute or Executive Order, the basic role and responsibility of the Deputy Director is defined by the Director. If confirmed, I expect to become thoroughly involved in the full range of OMB activities as necessary to carry out the duties assigned to me by the Director. Question 3. How do you envision your relationship and the nature of your responsibilities as they relate to: (a) the Director of OMB; (b) the Administrator of the Office of Federal Procurement Policy; (c) the Administrator of the Office of Information and Regulatory Affairs; and, (d) the Associate directors of OMB? Answer. (a) If confirmed, as Deputy Director of OMB, I would have responsibilities, under the Director, for all of the activities of OMB. I must prepare myself to function fully and capably in the Director's absence. Therefore, I will involve myself to my fullest capability in each duty, function or role of OMB. I will advise the Director on all OMB policy and program matters and carry out on his behalf, specific responsibilities delegated to me. (b) The Administrator of the Office of Federal Procurement Policy reports to the Director of OMB. I will have general review of procurement policy, like other matters for which the Deputy Director has responsibility. The Executive Associate Director will have responsibility for advising the Director and the Deputy Director on procurement policy. (c) The Administrator for the Office of Information and Regulatory Affairs (OIRA) reports to the Director of OMB. The Director intends to task me, if confirmed, with keeping apprised of OIRA activities on a day to day basis. (d) The Associate Directors of OMB also report to the Director. As Deputy Director, I will routinely be involved in the work they perform for the Director and in specific instances, as delegated by the Director, direct their actions. Question 4. Do you see any need to revise the current OMB organizational structure? Answer. Yes. The OMB organizational structure as it existed at the end of the last Administration is currently being revised. In the last Administration, the Director and Deputy Director together supervised all staff and line OMB functions. It is my opinion that an additional Deputy Director position is needed at OMB. The primary function and focus of this additional Deputy would be management. Some believe that the management functions of OMB are not accorded their full and deserved attention, because the budget functions of OMB dominate the schedule and attention of the Director and Deputy Director of OMB. The creation of an additional Deputy Director position and specifying in Law the management role and responsibilities of this new position will elevate the management functions of OMB to their proper level. The role of the existing Deputy will not be diminished by such action, but enhanced. The Director's intention is to have the existing Deputy be designated the Primary Deputy. As such the existing Deputy will continue to have the basic responsibilities including those under 5 U.S.C. 502(b) set forth in the answer to question II 2. Naturally, such a change requires the full participation and agreement of OMB's parent committees in Congress. As you know, we have privately shared our thoughts on this matter with you over the recent weeks. We also plan to make the Executive Associate Director of OMB a part of the senior management group which currently consists of the Director and Deputy Director. The Executive Associate Director will review all matters requiring the Director's attention concerning Management. The Executive Associate Director will also have special review of the Division of National Security and International Affairs. Question 5. What role do you anticipate playing in the selection of individuals to appointive positions in OMB which are not subject to Senate confirmation? Answer. If I am confirmed as Deputy Director of OMB, I will advise the Director on selecting the members of OMB senior staff. I would be actively involved in assuring that all of the individuals appointed to senior positions at OMB are eminently capable and reliable. The qualifications of political appointees will, of course, be subject to White House review. Question 6. What objectives do you expect OMB to achieve in the next four years? Answer. (1) Breaking the back of the fiscal deficit in accordance with our legal responsibility under the Gramm-Rudman-Hollings structure. (2) To insure in a permanent manner that the Management function of OMB receives the attention, resources and support it deserves. (3) In a time of abnormally limited public resources I would like to focus OMB's attention on the distribution of those resources. To the extent that current public resources flow to those without need they should be redirected to those with need. (4) To pursue the goals the Director stated in his testimony before this committee in the procurement field, information and regulatory activities, financial management, orienting OMB's vision to long-term issues, and creating a simple Government-wide management-by-objectives system. (Director's response attached.) ATTACHMENT Role and responsibilities of OMB Director Question. What goals do you expect OMB to achieve in the next four years? Answer. With regard to the budget, a primary goal is set by Gramm-Rudman-Hollings (G-R-H): to meet the G-R-H deficit targets. While considerable progress has been made toward this goal, it will take hard work by Congress and the administration to achieve it. For ŎMB, this will mean careful scrutiny of budgets, leadership in providing successful overall strategies for deficit reduction, and close attention to management improvements to realize efficiencies wherever possible. |