[Senate Report 106-216]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 403
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-216
_______________________________________________________________________



                      OFFICE OF GOVERNMENT ETHICS


                       AUTHORIZATION ACT OF 1999

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 1503

TO AMEND THE ETHICS IN GOVERNMENT ACT OF 1978 (5 U.S.C. APP.) TO EXTEND 
THE AUTHORIZATION OF APPROPRIATIONS FOR THE OFFICE OF GOVERNMENT ETHICS 
                        THROUGH FISCAL YEAR 2003

 


                November 5, 1999.--Ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
79-010                     WASHINGTON : 1999


                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                   FRED THOMPSON, Tennessee, Chairman
WILLIAM V. ROTH, Jr., Delaware       JOSEPH I. LIEBERMAN, Connecticut
TED STEVENS, Alaska                  CARL LEVIN, Michigan
SUSAN M. COLLINS, Maine              DANIEL K. AKAKA, Hawaii
GEORGE VOINOVICH, Ohio               RICHARD J. DURBIN, Illinois
PETE V. DOMENICI, New Mexico         ROBERT G. TORRICELLI, New Jersey
THAD COCHRAN, Mississippi            MAX CLELAND, Georgia
ARLEN SPECTER, Pennsylvania          JOHN EDWARDS, North Carolina
JUDD GREGG, New Hampshire
             Hannah S. Sistare, Staff Director and Counsel
                      Dan G. Blair, Senior Counsel
      Joyce A. Rechtschaffen, Minority Staff Director and Counsel
                  Deborah C. Lehrich, Minority Counsel
                 Darla D. Cassell, Administrative Clerk

                                                       Calendar No. 403
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-216

======================================================================



 
         OFFICE OF GOVERNMENT ETHICS AUTHORIZATION ACT OF 1999

                                _______
                                

                November 5, 1999.--Ordered to be printed

                                _______
                                

Mr. Thompson, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1503]

    The Committee on Governmental Affairs, to which was 
referred the bill (S. 1503) to amend the Ethics in Government 
Act of 1978 (5 U.S.C. App.) to extend the authorization of 
appropriations for the Office of Government Ethics through 
fiscal year 2003, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Summary and Purpose..............................................1
II.- Background.......................................................1
III. Legislative History..............................................4
IV.- Section-by-Section Analysis......................................4
 V.- Regulatory Impact Statement......................................4
VI.- Congressional Budget Office Cost Estimate........................4
VII. Changes to Existing Law..........................................5

                         I. Summary and Purpose

    The purpose of S. 1503 is to ensure an effective ethics 
program throughout the Executive Branch, by extending the 
Office of Government Ethics authorization for four years.

                             II. Background


             A. CREATION OF THE OFFICE OF GOVERNMENT ETHICS

    The Office of Government Ethics (OGE) was created by Title 
IV of the Ethics in Government Act of 1978 (Ethics Act). In 
response to a 1976 General Accounting Office report to Congress 
identifying a number of problems with the federal government's 
ethics system, President Carter submitted draft legislation in 
1977 proposing the creation of OGE. Later in 1977, the Senate 
Committee on Governmental Affairs reported S. 555, the Public 
Officials Integrity Act. The basic concepts of S. 555 were 
incorporated into the Ethics Act, which was signed into law on 
October 26, 1978, as P.L. 95-521.
    The Ethics Act created OGE within the Office of Personnel 
Management (OPM) to provide ``overall direction of executive 
branch policies related to preventing conflicts of interest on 
the part of officers and employees of any executive agency.'' 
OGE was originally authorized for five years, through September 
30, 1983.

                B. 1983, 1988 and 1996 REAUTHORIZATIONS

    OGE was reauthorized for another five years in 1983 
pursuant to S. 461, which was signed into law as P.L. 98-150. 
S. 461 was reported by the Senate Governmental Affairs 
Committee, passed by the Senate, and amended by the House 
Committee on Post Office and Civil Service. As enacted, the law 
extended OGE's authorization through September 20, 1988 and 
clarified the agency's authority and independence. 
Specifically, the 1983 reauthorization:
          Established a five year term for the OGE Director;
          Gave OGE greater independence from OPM, allowing OGE 
        to operate ``in consultation with'' rather that ``under 
        the general supervision of'' OPM;
           Required a separate budget line for OGE;
           Permitted the OGE Director to request assistance 
        from the Inspector General of an agency in conducting 
        investigations involving financial disclosures; and
          Required OGE to review the financial disclosure 
        reports of high-level White House aides.
    OGE was again reauthorized in 1988, this time for six years 
through September 30, 1994. S. 2344, as reported by the Senate 
Governmental Affairs Committee, made a number of important 
changes in OGE's structure, including establishing OGE as a 
separate agency independent of OPM. In addition, the 1988 
reauthorization, enacted as P.L. 100-598:
          Upgraded the Director's position from Level V to 
        Level III of the Executive Schedule;
          Clarified the Director's authority to recommend and 
        order ``corrective action'' on the part of other 
        agencies; and
          Expanded the Director's authority to request 
        Inspector General assistance to include any 
        investigation pursuant to the agency's statutory 
        responsibilities.
    During the period of 1988 to 1994, the executive branch 
ethics program and OGE's responsibilities increased as a result 
adoption of the Ethics Reform Act of 1989 (P.L. 101-194), which 
included extensive ethics reform provisions, and two Executive 
Orders. Executive Order 12674 (April 12, 1989) required the 
promulgation of comprehensive Standards of Ethical Conduct for 
Executive Branch Employees and Executive Order 12834 (January 
20, 1993) created new post employment rules for political 
appointees.
    After a two-year lapse of authorization, OGE was again 
reauthorized in 1996. P.L. 104-179 reauthorized OGE for three 
years through September 20, 1999. This three year time span was 
selected in order to accommodate OGE's concerns that a 
reauthorization process not occur during the first or fourth 
years of Presidential term when its resources are significantly 
devoted to matters arising from election and transition 
activities. In this legislation, OGE was provided with gift 
acceptance authority. Federal departments and agencies are not 
permitted to accept gifts unless they have specific statutory 
authority to do so. This authority allowed OGE to accept gifts 
in furtherance of its education and training programs and 
allowed OGE to accept donated non-federal facilities offered 
for OGE's use by state and local governments and universities.

            C. DEVELOPMENTS SINCE OGE'S LAST REAUTHORIZATION

    Since OGE's reauthorization in 1996, no dramatic changes in 
the executive branch ethics program and laws have taken place.
    Two years ago, in order to improve its program 
capabilities, OGE reorganized its Office of Education and 
created a new Office of Agency Program with three separate 
divisions--Education and Program Services, Financial 
Disclosure, and Program Review. This reorganization allowed OGE 
to commit more resources to its education and training 
functions. OGE now provides more direct services to agencies 
through its desk officer program which acts as an ethics 
liaison to the department and agencies. Also, OGE developed 
employee training materials, including pamphlets and videos 
used by agencies in their ethics training. OGE has further 
designed new courses for the education of agency ethics 
officials including those located outside the Washington, D.C. 
area.
    Over the past three years, OGE has developed a web site 
providing information to the ethics program community, 
employees and the public. In addition, OGE has developed a CD-
ROM containing all of the basic resource and reference material 
important to carrying out its programs, and has developed 
software used in the completion of the confidential financial 
disclosure forms filed by over 250,000 employees in the 
executive branch. OGE is in the process of developing the 
software necessary for the completion of public financial 
disclosure reports as well.
    OGE has continued to devote a substantial amount of its 
resources to its core programs. OGE continues to review and 
certify the financial disclosure forms filed by Presidential 
nominees requiring Senate confirmation and to serve as the 
primary authority on conduct and financial disclosure issues. 
During the three-year period since its last authorization, OGE 
handled 724 nominee forms and approximately 3,000 annual and 
termination reports. In addition, OGE continued to provide 
interpretive guidance of the criminal conflict of interest 
statutes and to review and update its regulations for the 
Standards of Ethical Conduct.

                      D. OGE'S BUDGET AND STAFFING

    Since OGE's last reauthorization in 1996, its budget and 
staffing levels are as follows:

------------------------------------------------------------------------
                                                           Authorized
             Fiscal year                   Funding        staff levels
------------------------------------------------------------------------
1997................................        $8,078,000                87
1998................................         8,265,000                84
1999................................         8,492,000                84
2000................................         9,114,000                84
------------------------------------------------------------------------

                        III. Legislative History

    S. 1503 was introduced by Senator Thompson, for himself, 
and Senator Lieberman on August 5, 1999 and referred to the 
Senate Committee on Governmental Affairs. No hearings were held 
on the legislation.
    S. 1503 was considered by the Governmental Affairs 
Committee at its November 3, 1999 business meeting and was 
ordered favorably reported, without amendment, by voice vote. 
Senators voting and present were: Collins, Voinovich, Cochran, 
Lieberman, Levin, Akaka, Durbin, Cleland, Edwards and Thompson.

                    IV. Section-by-Section Analysis

    Section 1 designates the short title of the bill.
    Section 2 extends the authorization of appropriations 
through fiscal year 2003.
    Section 3 provides an effective date of October 1, 1999.

                     V. Regulatory Impact Statement

    S. 1503 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local or tribal 
governments.

                 VI. Congressional Budget Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 3, 1999.
Hon. Fred Thompson,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC 20510
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1503, the Office of 
Government Ethics Authorization Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1503--Office of Government Ethics Authorization Act of 1999

    Summary: S. 1503 would reauthorize the Office of Government 
Ethics (OGE) for fiscal years 2000 through 2003. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing S. 1503 would result in additional discretionary 
spending of $29 million over the 2001-2004 period (Public Law 
106-58 appropriated $9.1 million to the OGE for fiscal year 
2000.) This estimate assumes an adjustment for anticipated 
inflation in 2002 and 2003. Without such an adjustment, we 
estimate additional spending would total $27 million over the 
2001-2004 period. Because the bill would not affect direct 
spending or receipts, pay-as-you-go procedures would not apply. 
S. 1503 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 1503 is shown in the following table. 
For the purposes of this estimate, CBO assumes that the amounts 
necessary will be appropriated by the start of each fiscal year 
and that outlays will follow the historical spending pattern of 
the OGE. The costs of this legislation fall within budget 
function 800 (general government).
    Pay-as-you-go considerations: None.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

OGE Spending under current law:
    Budget Authority \1\...........................................        9        0        0        0        0
    Estimated Outlays..............................................        9        1        0        0        0
Proposed changes:
    Estimated Authorization Level..................................        0        9       10       10        0
    Estimated Outlays..............................................        0        8       10       10        1
OGE Spending under S. 1503:
    Estimated Authorization Level \1\..............................        9        9       10       10        0
    Estimated Outlays..............................................        9        9       10       10        1
----------------------------------------------------------------------------------------------------------------
\1\ The 2000 level is the amount appropriated for that year.

    Intergovernmental and private sector impact: S. 1503 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On October 13, 1999, CBO prepared a 
cost estimate for H.R. 2904, a bill to amend the Ethics in 
Government Act of 1978 to reauthorize funding for the Office of 
Government Ethics, and to expand the definition of a ``special 
government employee'' under title 18, United States Code, as 
ordered reported by the House Committee on Government Reform on 
September 30, 1999. H.R. 2904 is similar to S. 1503, and the 
two estimates of costs are identical.
    Estimate prepared by: John R. Righter.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      VII. Changes to Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 1503 as reported are shown as follows (existing law proposed 
to be omitted is enclosed in brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman):

                           UNITED STATES CODE


             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES


                           TITLE 5--APPENDIX


                    ETHICS IN GOVERNMENT ACT OF 1978


                 TITLE IV. OFFICE OF GOVERNMENT ETHICS


Sec. 405. Authorization of Appropriations

    There are authorized to be appropriated to carry out this 
title such sums as may be necessary for each of the fiscal 
years [1997 through 1999].

Sec. 406. Authorization of Appropriations

           *       *       *       *       *       *       *


    * * * -2000 through 2003.

                                  
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