STATEMENT OF ALAN K. CAMPBELL CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION, BEFORE THE HOUSE SUBCOMMITTEE OF EMPLOYEE ETHICS AND UTILIZATION JUNE 16, 1977

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00314R000600010013-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 9, 2016
• Document Release Date: July 28, 2000
• Sequence Number: 13
• Publication Date: June 16, 1977
• Content Type: STATEMENT

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STATEi~ENT OF ALAN K. CAMPBELL
CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION,
BEFORE THE
HOUSE SUBCOMMITTEE ON EMPLOYEE ETHICS AND UTILIZATION
June 16, 1977
I welcome this opportunity to appear before your Subcommittee to
testify on the President's proposals on ethics as expressed in H.R.6951+,
"The Ethics in Government Act of 1977."
The Administration has been spending much time and effort in the
consideration and evaluation of the ethics program for employees in the
Executive branch of the Government. During his campaign, President Carter
expressed his interest and concern on potential conflicts of interest and
even before assuring office, he released guidelines for financial disclosure
by Presidential appointees. H.R.6951+ embodies the Administration's
recommendations for achieving high ethical standards in the Executive
branch. I shall refer briefly to two parts of the bill before dealing
more fully with that portion of the bill regarding the role of the Civil
Service Commission in administering the program.
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Public disclosure of financial statements would be required for all
top ranking personnel in the Executive branch. It would cover those in
the grade of GS-16 and above, including comparable officers in the foreign
service and the uniformed services. The office of President and Vice
President would be included.
As background, it is interesting to note that when Executive Order
11222 was promulgated in May 1965, the requirement for the filing of financial
statements caused considerable concern. The President's proposal goes one
step further in that it would require public disclosure by top ranking
personnel, since President Carter believes that the public has a right to
know the assets and liabilities of senior Government officials.
The statements of the President and Vice President and those of
Cabinet and other high ranking officials within the White House and full-
time members of Commissions, boards and committees would be filed with the
Director of the new Office of Government Ethics to be created in the
Commission. The financial reports of the other top officials would be
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filed with their respective agencies and would be available for public
inspection. Personnel below the grade of GS-16 would remain subject to
present financial reporting requirements as contained in the Commission's
regulations in Part 735 of Title 5 of the Code of Federal Regulations.
The statements of these employees, however, would not be subject to public
inspection.
To restrict, in so far as possible, the disclosure of financial
statements to those who have a genuine concern, H.R.6954. would make it
unlawful for any person to inspect or obtain a copy of any report for any
commercial purpose or for a credit rating or for use directly or indirectly
for any political, charitable or similar purpose. Appropriate sanctions
for violations are specified.
The financial report would. contain information on the source and
amount of earned income of $100 or more. Unearned income above $100 from
any one source would be reported by value category, i.e., up to $5,000,
from $5,000 to $15,000, from $15,000 to $50,000, from $50,000 to $100,000
and greater than $100,000. Gifts in excess of $25 or gifts aggregating
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$250 or more from a single source would have to be reported, other than
gifts from personal friends or relatives with whom the employee hay no
contact in the course of his official duties. The term gifts would
include transportation, lodging, food and entertainment.
Additionally, the official would have to report each liability; other
than to a relative which exceeds $2500 at any time during the course of the
year. Information on personal property held in a trade or business or for
investment or production of income and valued at $1,000 or over would
have to be furnished, excluding household furnishings, works of art,
jewelry and collections of stamps, coins and other similar items. Securities
transactions, cornodities futures and dealings in real property exceeding
$1,000 in value, as well as interests in patents, copyrights and mineral
leases would be included in the form.
Officials would have to identify positions they hold as officer or
employee in any business, nonprofit or educational organization, other than
religious, political, social or fraternal organizations.
H.R.6954 provides that any agreement for future employment
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would be made public as would continuing relationships with ormer employers,
such as bona fide pensions, employee benefit plans and leaves of absence to
take Government employment. I observe that H.R.3928 before your Subcommittee
covers this subject of private employment in that it would require employees
whose rate of pay is equal to or greater than the minimum for grade GS-13:
to disclose positions held by them during the three years preceding and
following their employment with the federal Government. According to statistics
compiled by our Commission, this bill would mandate public reporting for over
500,000 federal employees, embracing as it would employees in grade GS-12 at
or above step 7 by reason of their pay being equal to the minimum compensation
for grade GS-13. It would intrude upon the private lives of too many federal
employees whose positions do not warrant such a probing. At present, employees
in the grade of GS-15 and below, who are involved in contract procurement or
the rendering of decisions in economic matters affecting the public, must
submit statements of their financial interests under the Commission's regu-
lations issued pursuant to Executive Order 11222.
A second major improvement proposed by the President is in the field of
post employment where the Administration would seek, in so far as it is
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reasonably possible, to eliminate the "revolving door" syndrome. H.R.6954
would amend and strengthen section 207 of Title 18, United States Code,
which presently restricts in a limited fashion the post employment activities
of former federal employees. The amendment would enlarge from one year to
two years the prohibition against appearing before a former official's
agency on a particular matter which was within the official's responsibility
while he was w th the Government. A totally new concept would be added to
section 207 in that agency policymaking officials would be banned from
making any oral or written communication to any person in the agency in
which he previously served regarding any official matter which is pending
before that agency or in which the agency is a party or has a direct and
substantial interest, for one year after his employment with that agency
has ceased. A violation of this restriction would be subject to a fine of
up to $10,000 and imprisonment up to two years or both.
The major significance of H.R.6954 with respect to the Commission is
the creation of a new Office of Government Ethics within the Commission,
to be headed by a Director to be appointed by the President with the
advice and consent of the Senate. Most importantly, the bill contains
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provisions which would give the Commission the authority and responsibility
it requires in the area of conflicts of interest. Among the powers enumerated
are the monitoring and investigating of compliance with the public financial
disclosure requirements by the various agencies, conducting reviews on a
random basis of the financial statements filed in each agency, requiring
reports from agencies as needed by the Director of the Office of Government
Ethics and ordering corrective action on the part of agencies and employees
which the Director deems necessary. At the present time, the Commission is
carrying out its functions and responsibilities under the ethics program
pursuant to Executive Order 11222. Questions have been raised as to whether
the Commission has remedial authority over the federal agencies in the
ethics field, and while the Commission has prevailed in many situations by
a type of persuasive influence, specific authority to the Commission through
legislation would remove any doubt as to the Commission's power and
responsibility for the ethics program.
I appreciate the purposes of another bill before your Subcommittee,
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H.R.2733, a bill which would restrict the activities of employees at the
level of GS-16 and above where their actions are likely to have a
significant impact on matters regulated by their agency. We believe
that such considerations are covered generally by H.R.6954 and that rather
than approach each possible or potential conflict by separate enactment,
it would be preferable to have them handled by broader legislation such
as H.R.6954,with implementation through the Director of the proposed Office
of Government Ethics in the Commission.
it has been a pleasure to appear before you.
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