Executive Order 12731 of October 17, 1990



		     "PRINCIPLES OF ETHICAL CONDUCT

		 FOR GOVERNMENT OFFICERS AND EMPLOYEES"





By virtue of the authority vested in me as President by the Constitution 

and the laws of the United States of America, and in order to establish 

fair and exacting standards of ethical conduct for all executive branch 

employess, it is hereby ordered that Executive Order 12674 of April 12,

1989, is henceforth modified to read as follows:





"EXECUTIVE ORDER



"     



"principles of ethical conduct for government officers and employees



"By virtue of the authority vested in me as President by the Constitution 

and the laws of the United States of America, and in order to establish 

fair and exacting standards of ethical conduct for all executive branch 

employees, it is hereby ordered as follows:

 

"Part 1 -- PRINCIPLES OF ETHICAL CONDUCT



   "Section 101.  Principles of Ethical Conduct. To ensure that every

citizen can have complete confidence in the integrity of the Federal 

Government, each Federal employee shall respect and adhere to the 

fundamental principles of ethical service as implemented in regulations 

promulgated under sections 201 and 301 of this order:



   "(a) Public service is a public trust, requiring employees to place 

loyalty to the Constitution, the laws, and ethical principles above

private gain.



   "(b) Employees shall not hold financial interests that conflict 

with the conscientious performance of duty.



   "(c) Employees shall not engage in financial transactions using

nonpublic Government information or allow the improper use of such 

information to further any private interest.  



   "(d) An employee shall not, except pursuant to such reasonable

exceptions  as are provided by regulation, solicit or accept any gift 

or other item of monetary value from any person or entity seeking 

official action from, doing business with, or conducting activities 

regulated by the employee's agency, or whose interests may be 

substantially affected by the performance or nonperformance of the 

employee's duties.



   "(e) Employees shall put forth honest effort in the performance of

their duties.



   "(f) Employees shall make no unauthorized commitments or promises of

any kind purporting to bind the Government.



   "(g) Employees shall not use public office for private gain.



   "(h) Employees shall act impartially and not give preferential 

treatment to any private organization or individual.



   "(i) Employees shall protect and conserve Federal property and shall

not use it for other than authorized activities.



   "(j) Employees shall not engage in outside employment or activities,

including seeking or negotiating for employment, that conflict with

official Government duties and responsibilities.



   "(k) Employees shall disclose waste, fraud, abuse, and corruption to

appropriate authorities.



   "(l) Employees shall satisfy in good faith their obligations as 

citizens, including all just financial obligations, especially those

-- such as Federal, State, or local taxes -- that are imposed by law.



   "(m) Employees shall adhere to all laws and regulations that 

provide equal opportunity for all Americans regardless of race, color, 

religion, sex, national origin, age, or handicap.



   "(n) Employees shall endeavor to avoid any actions creating the 

appearance that they are violating the law or the ethical standards 

promulgated pursuant to this order.



   "Sec. 102.  Limitations on Outside Earned Income.



   "(a) No employee who is appointed by the President to a full-time 

noncareer position in the executive branch (including full-time noncareer 

employees in  the White House Office, the Office of Policy Development,

and the Office of Cabinet Affairs), shall receive any earned income for 

any outside employment or activity performed during that Presidential 

appointment.



   "(b) The prohibition set forth in subsection (a) shall not apply to 

any full-time noncareer employees employed pursuant to 3 U.S.C. 105 and

3 U.S.C. 107(a) at salaries below the minimum rate of basic pay then 

paid for GS-9 of the General Schedule.  Any outside employment must 

comply with relevant agency standards of conduct, including any 

requirements for approval of outside employment.

 

"PART II -- OFFICE OF GOVERNMENT ETHICS AUTHORITY



   "Sec. 201.  The Office of Government Ethics.  The Office of Government 

Ethics shall be responsible for administering this order by:



   "(a) Promulgating, in consultation with the Attorney General and the 

Office of Personnel Management, regulations that establish a single, 

comprehensive, and clear set of executive-branch standards of conduct 

that shall be objective, reasonable, and enforceable.



   "(b) Developing, disseminating, and periodically updating an ethics 

manual for employees of the executive branch describing the applicable 

statutes, rules, decisions, and policies.



   "(c) Promulgating, with the concurrence of the Attorney General, 

regulations interpreting the provisions of the post-employment statute, 

section 207 of title 18, United States Code; the general 

conflict-of-interest statute, section 208 of title 18, United States 

Code; and the statute prohibiting supplementation of salaries, section 209 

of title 18, United States Code.



   "(d) Promulgating, in consultation with the Attorney General and the 

Office of Personnel Management, regulations establishing a system of 

nonpublic (confidential) financial disclosure by executive branch 

employees to complement the system of public disclosure under the Ethics

in Government Act of 1978. Such regulations shall include criteria to 

guide agencies in determining which employees shall submit these reports.



   "(e) Ensuring that any implementing regulations issued by agencies 

under this order are consistent with and promulgated in accordance with 

this order.



   "Sec. 202.  Executive Office of the President.  In that the agencies 

within the Executive Office of the President (EOP) currently exercise 

functions that are not distinct and separate from each other within the 

meaning and for the purposes of section 207(e) of title 18, United States 

Code, those agencies shall be treated as one agency under section 207(c)

of title 18, United States Code.

 

"PART III -- AGENCY RESPONSIBILITIES



   "Sec. 301.  Agency Responsibilities.  Each agency head is directed to:



   "(a) Supplement, as necessary and appropriate, the comprehensive 

executive branch-wide regulations of the Office of Government Ethics, 

with regulations of special applicability to the particular functions 

and activities of that agency. Any supplementary agency regulations shall 

be prepared as addenda to the branch-wide regulations and promulgated 

jointly with the Office of Government Ethics, at the agency's expense, 

for inclusion in Title 5 of the Code of Federal Regulations.



   "(b) Ensure the review by all employees of this order and regulations

promulgated pursuant to the order.



   "(c) Coordinate with the Office of Government Ethics in developing 

annual agency ethics training plans.  Such training shall include 

mandatory annual briefings on ethics and standards of conduct for all 

employees appointed by the President, all employees in the Executive 

Office of the President, all officials required to file public or 

nonpublic financial disclosure reports, all employees who are contracting 

officers and procurement officials, and any other employees designated by 

the agency head.



   "(d) Where practicable, consult formally or informally with the Office

of Government Ethics prior to granting any exemption under section 208 of 

title 18, United States Code, and provide the Director of the Office of 

Government Ethics a copy of any exemption granted.



   "(e) Ensure that the rank, responsibilities, authority, staffing, and

resources of the Designated Agency Ethics Official are sufficient to 

ensure the effectiveness of the agency ethics program.  Support should 

include the provision of a separate budget line item for ethics 

activities, where practicable.

 

"PART IV -- DELEGATIONS OF AUTHORITY



   "Sec. 401.  Delegations to Agency Heads.  Except in the case of the 

head of an agency, the authority of the President under sections 203(d), 

205(e), and 208(b) of title 18, United States Code, to grant exemptions 

or approvals to individuals, is delegated to the head of the agency in 

which an individual requiring an exemption or approval is employed or 

to which the individual (or the committee, commission, board, or similar 

group employing the individual) is attached for purposes of administration.



   "Sec. 402.  Delegations to the Counsel to the President.



   "(a) Except as provided in section 401, the authority of the President 

under sections 203(d), 205(e), and 208(b) of title 18, United States Code, 

to grant exemptions or approvals for Presidential appointees to committees, 

commissions, boards, or similar groups established by the President is 

delegated to the Counsel to the President.



   "(b) The authority of the President under sections 203(d), 205(e), and 

208(b) of title 18, United States Code, to grant exemptions or approvals 

for individuals appointed pursuant to 3 U.S.C. 105 and 3 U.S.C. 107(a),

is delegated to the Counsel to the President.



   "Sec. 403.  Delegation Regarding Civil Service.  The Office of 

Personnel Management and the Office of Government Ethics, as appropriate, 

are delegated the authority vested in the President by 5 U.S.C. 7301 

to establish general regulations for the implementation of this Executive 

order.

 

"PART V -- GENERAL PROVISIONS



   "Sec. 501.  Revocations.  The following Executive orders are hereby 

revoked:



   "(a) Executive Order No. 11222 of May 8, 1965.



   "(b) Executive Order No. 12565 of September 25, 1986.



   "Sec. 502.  Savings Provisions.



   "(a) All actions already taken by the President or by his delegates

concerning matters affected by this order and in force when this order is

issued, including any regulations issued under Executive Order 11222, 

Executive Order 12565, or statutory authority, shall, except as they are 

irreconcilable with the provisions of this order or terminate by operation 

of law or by Presidential action, remain in effect until properly amended, 

modified, or revoked pursuant to the authority conferred by this order or 

any regulations promulgated under this order.  Notwithstanding anything in 

section 102 of this order, employees may carry out preexisting contractual 

obligations entered into before April 12, 1989.



   "(b) Financial reports filed in confidence (pursuant to the authority

of Executive Order No. 11222, 5 C.F.R. Part 735, and individual agency 

regulations) shall continue to be held in confidence.



   "Sec. 503.  Definitions.  For purposes of this order, the term:



   "(a) 'Contracting officers and procurement officials' means all such 

officers and officials as defined in the Office of Federal Procurement 

Policy Act Amendments of 1988.



   "(b) 'Employee' means any officer or employee of an agency, including

a special Government employee.



   "(c) 'Agency' means any executive agency as defined in 5 U.S.C. 105,

including any executive department as defined in 5 U.S.C. 101, Government

corporation as defined in 5 U.S.C. 103, or an independent establishment 

in the executive branch as defined in 5 U.S.C. 104 (other than the 

General Accounting Office), and the United States Postal Service and 

Postal Rate Commission.



   "(d) 'Head of an agency' means, in the case of an agency headed by 

more than one person, the chair or comparable member of such agency.



   "(e) 'Special Government employee' means a special Government employee

as defined in 18 U.S.C. 202(a).



   "Sec. 504.  Judicial Review.  This order is intended only to improve

the internal management of the executive branch and is not intended to 

create any right or benefit, substantive or procedural, enforceable at

law by a party against the United States, its agencies, its officers, 

or any person.".



George Bush



The White House, 

October 17, 1990.