49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–445 

EXECUTIVE BRANCH REFORM ACT OF 2006 

APRIL 27, 2006.—Committed to the Committee of the White House on the State of 

the Union and ordered to be printed 

Mr. TOM DAVIS of Virginia, from the Committee on Government 

Reform, submitted the following 

R E P O R T 

[To accompany H.R. 5112] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Government Reform, to whom was referred 

the bill (H.R. 5112) to provide for reform in the operations of the 

executive branch, having considered the same, report favorably 

thereon without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Committee Statement and Views ........................................................................... 1 

Section-by-Section .................................................................................................... 3 

Explanation of Amendments ................................................................................... 8 

Committee Consideration ........................................................................................ 8 

Rollcall Votes ............................................................................................................ 9 

Application of Law to the Legislative Branch ....................................................... 10 

Statement of Oversight Findings and Recommendations of the Committee ...... 10 

Statement of General Performance Goals and Objectives .................................... 10 

Constitutional Authority Statement ...................................................................... 10 

Federal Advisory Committee Act ............................................................................ 10 

Unfunded Mandate Statement ............................................................................... 10 

Committee Estimate ................................................................................................ 10 

Budget Authority and Congressional Budget Office Cost Estimate .................... 11 

Changes in Existing Law Made by the Bill as Reported ...................................... 12 

COMMITTEE STATEMENT AND VIEWS

PURPOSE AND SUMMARY

H.R. 5112, ‘‘The Executive Branch Reform Act of 2006,’’ would 

provide enhanced transparency to the operations of the executive 

branch. This landmark legislation would ensure that the behavior 

of our public servants is above reproach and worthy of the public 

trust. This legislation would strike that fine balance between reaVerDate Aug 31 2005 05:53 Apr 29, 2006 Jkt 049006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR445.XXX HR445

CCOLEMAN on PROD1PC71 with HEARING
2 

sonable and focused rules of ethical behavior and arbitrary restrictions and prohibitions that hamstring our officials and prevent 

them from exercising the discretion needed to perform their missions on behalf of our citizens. The legislation contains commonsense rules that would enhance the public’s trust in our executive 

branch. 

Specifically, H.R. 5112 would bring transparency to meetings between the private sector and executive branch officials by requiring 

all political appointees and senior officials in federal agencies and 

the White House to report the contacts they have with private parties seeking to influence official government action. The reports, 

which would be filed quarterly and maintained on a searchable 

database at the Office of Government Ethics, must disclose the 

dates of meetings, the parties involved, and the subject matter discussed. 

H.R. 5112 would close the revolving door between the private 

sector and government by deeming lawyers, lobbyists and executives appointed to high government positions to have a prohibited 

conflict of interest if they take official actions affecting their former 

clients or employers within 2 years of entering government. No 

conflict-of-interest waivers could be granted without the approval of 

the Office of Government Ethics. In addition, government officials 

would be prohibited from negotiating future employment with private entities that are affected by their official actions. Officials who 

leave government for the private sector would not be able to contact their former colleagues for 2 years (current law has only a 1- 

year ban) on official matters. 

H.R. 5112 would close the revolving door between contractors 

and government. For the first time, executives who worked for private contractors would be barred from awarding contracts to their 

former employers when they enter government. The bill also clarifies the current law governing when government procurement officials could be hired by companies which hold federal contracts. 

H.R. 5112 would provide protection to national security whistleblowers by providing whistleblower protections for national security 

personnel. Currently, a federal employee who works on national security issues has no effective recourse if he loses his security clearance for retaliation for disclosing abuses. The bill would give these 

national security officials protections against this retaliation. 

H.R. 5112 would advance the cause of open government by eliminating the use of unregulated ‘‘pseudo-classifications’’ such as ‘‘sensitive but unclassified’’ or ‘‘for official use only.’’ The legislation 

would require the development of regulations and standards governing the use of any information control designations by federal 

agencies. Any use of administrative secrecy designations not covered by statute or the new regulations would be banned. 

H.R. 5112 would control government-sponsored advertising, communications, and propaganda by requiring the federal government 

to disclose its role in funding or disseminating advertising and 

communications and prohibits the expenditure of funds on unauthorized propaganda. 


CCOLEMAN on PROD1PC71 with HEARING
3 

SECTION-BY-SECTION

Section 1. Short Title 

This section provides the short title of H.R. 5112 as the ‘‘Executive Branch Reform Act of 2006.’’

Section 2. Requirements relating to significant contacts 

The section would amend the Ethics in Government Act of 1978 

(5 U.S.C. App.4) by adding a new Title VI—Executive Branch Disclosure of Significant Contacts—including the following new sections: 

Section 601—Recording and Reporting by Certain Executive 

Branch Officials of Significant Contacts Made to Those Officials. 

This section would require covered executive branch officials, on a 

quarterly basis, to file with the Office of Government Ethics a report on any significant contacts during that quarter between that 

official and any private party relating to an official government action. The report would contain the names of the covered official and 

the private party, a summary of the nature of the contact (date, 

subject matter). It would also provide that it does not require the 

filing of information exempt from public disclosure under section 

552 (b) of title 5, the Freedom of Information Act. 

Section 602—Authorities and Responsibilities of Office of Government Ethics. This section would provide that the Director of the Office of Government Ethics shall (1) provide guidance and assistance 

on the recording and reporting requirements and develop common 

compliance standards, rules, and procedures; (2) review and verify 

the accuracy, completeness and timeliness of the reports; (3) develop systems to carry out the title including, publicly available list 

of all persons who made a significant contact, computerized system 

to minimize burden of filing and public access: (4) make publicly 

available the filed reports; (5) retain reports for 6 years; (6) compile 

and summarize information for each reporting period; (7) notify 

any covered executive branch official that may be in noncompliance; and (8) notify the US Attorney General for the District of Columbia that a covered official may be in noncompliance if the official notified under paragraph (7) has failed to provide appropriate 

response with 60 days. 

Section 603—Penalties. This section would provide that a person 

who knowingly fails to remedy a defective filing within 60 days of 

notification shall be subject to a civil fine of not more than $50,000. 

Section 604—Definitions. This section would define the term 

‘‘covered executive branch official’’ to include officers and employees 

serving in level I, II, III, IV or V of the Executive Schedule, certain 

members of the uniformed services, officers and employees serving 

in confidential, policy positions described in 5 U.S.C. 7511(b)(2)(B), 

and those in the Executive Office of the President serving in a confidential, policy positions in the Executive Office of the President 

or the Office of the Vice President, but not including the President, 

Vice President and their respective chiefs of staff. This section 

would also define the term ‘‘significant contact’’ to include oral or 

written contacts in which a private party seeks influence, or obtain 

nonpublic information about official action and the term ‘‘private 

party’’ anyone other than a Federal, state, or local official. Finally 

this section would provide that the new title is to be effective 1 


CCOLEMAN on PROD1PC71 with HEARING
4 

year after enactment and that the initial regulations are to be promulgated in draft not later than 270 days after enactment and in 

final not later than 1 year after enactment. 

Section 3. Requirements relating to stopping the revolving door 

This section would amend the Ethics in Government Act of 1978 

(5 U.S.C. App.4) to add a new title VII—Stopping the Revolving 

Door—including the following new sections. 

Section 701—Two-Year Cooling-Off Period for Persons Leaving 

Government Service. This section would prohibit covered executive 

officials from contacting federal agencies to influence policy for 2 

years after the termination of the official’s federal employment. 

The section would extend the current 1–year prohibitions contained 

in 18 USC 207 (c) and (d) while not otherwise affecting any waiver 

or criminal penalties under section 207. Subsection (c) prohibits 

covered officials’ contacts with the agency the former official 

served, while subsection (d) prohibits contacts by very senior 

former officials with any Federal agency. 

Section 702—Prohibition on Negotiation of Future Employment. 

This section would prohibit a covered executive branch official from 

participating in an official matter if the organization with whom 

the official is negotiating or has an arrangement concerning prospective employment has a financial interest unless a waiver is obtained. The official responsible for the employment of covered executive branch official may waive the prohibition, if the responsible 

official determines that exceptional circumstances exist. The Director of the Office of Government Ethics would have to investigate 

and review the waiver determination and the waiver would not 

take effect until the Director certified in writing that exceptional 

circumstances exist. 

Section 703—Cooling-Off Period for Certain Persons Entering 

Government Service. This section would provide that a covered executive branch official who had been employed by an entity as an 

officer, director, trustee, general partner, employee or worked as 

lobbyist, lawyer, or other representative with the last 2 years shall 

not engage in official activities that would be prohibited under 18 

USC 208 involving his former employer unless a waiver is obtained 

from the agency’s designated ethics officer with the approval of the 

Director of the Office of Government Ethics. This section would not 

otherwise affect any waiver or criminal penalties under section 

208. Section 208, in general, prohibits covered officials from engaging in official acts affecting the official’s personal financial interest. 

Section 704—Penalties. This section would provide for civil fines 

of up to $100,000 for violations of sections 701, 702, or 703. 

Section 705—Definitions. This section would define the term 

‘‘covered executive branch official’’ to include officials or employees 

serving in level I, II, III, IV, or V of the Executive Schedule, various members of the uniformed services, certain members of the 

uniformed services, officers and employees serving in confidential, 

policy positions described in 5 U.S.C. 7511(b)(2)(B), officials or employees serving in the Executive Office of the President or the Office of the Vice President serving in confidential, policy positions, 

including the Vice President. 


CCOLEMAN on PROD1PC71 with HEARING
5 

Section 4. Additional provisions relating to procurement officials 

This section would amend the ‘‘Procurement Integrity Provisions’’

in section 27 of the Office of Federal Procurement Policy Act (41 

U.S.C. 423) to extend the current 1–year prohibition against a 

former government official accepting compensation from a contract 

as an employee, officer, director or consultant to include those serving the contractor as a lawyer or as a lobbyist and to extend the 

prohibition from the current 1 year to 2 years. The current prohibition applies to former officials who served as selection or evaluation 

officials at the time of the selection of a contractor in an acquisition 

valued at over $10,000,000, as a program manager, or similar capacity for a contract in excess of $10,000,000 or personally made 

a decision regarding (1) the award or selection of a contract, subcontract, modification, or the award of a task or delivery order 

above $10,000,000, (2) a decision to establish overhead or other 

rates under a contract, (3) issue a contract payment in excess of 

$10,000,000, or (4) to pay or settle a claim of more than 

$10,000,000. This prohibition currently applies to the entity of the 

contractor that produces the same or similar products or services 

that are the subject of the covered contract. This section would also 

tighten the coverage of the prohibition by removing the requirement that the official must have ‘‘personally’’ made a decision impacting subjects (1)–(4) above so that the prohibition would attach 

to an official who ‘‘participated personally and substantially in’’ the 

decision. 

This section would also amend 41 U.S.C. 423(c)(1) to expand that 

the current requirement that a government official participating in 

an agency procurement who is contacted by an offeror under that 

procurement for prospective employment, report the contact and either reject the offered employment or disqualify him or herself 

from participation in the procurement to include relatives of the 

participating government official as defined by 5 U.S.C. 3110 who 

are offered prospective employment. 

This section would also provide that the appropriate designated 

agency ethics official may determine that a former government official may accept an offer of compensation for work to be performed 

by the former official as a new employee in that portion of a contractor’s organization other than the organization that produced 

the good or service that was the subject of the former government 

official’s action if the ethics officer determines that the offer of compensation is not a reward for contract actions listed above and the 

acceptance of compensation will not affect the integrity of the procurement process. 

This section would also prohibit, for a 2-year period, a procurement official who is a former employee of a private-sector contractor from working on the award or management of a contract 

held by the official’s former employee. 

This section would provide that the Administrator for Federal 

Procurement Policy, in consultation with the Director of the Office 

of Government Ethics, should promulgate regulations to carry out 

and ensure the enforcement of the section and monitor and investigate agency compliance with the section. 


CCOLEMAN on PROD1PC71 with HEARING
6 

Section 5. Prohibition on unauthorized expenditure of funds for 

publicity or propaganda purposes 

This section would amend Chapter 13 of title 31 of the U.S. Code 

to add a new section 1355 that provides that an officer or employee 

of the Government may not make or authorize expenditure for publicity or propaganda within the United States unless authorized by 

law. 

Section 6. Requirement for disclosure of federal sponsorship of all 

federal advertising or other communication materials 

This section would provide that each advertisement or other communication paid for by an executive agency, directly or through a 

contract, include a notice that the notice is paid for by the agency. 

Section 7. Elimination of ‘‘pseudo’’ classification 

Subsection (a) would require, six months after enactment, each 

Federal agency to submit to the Archivist of the United States (Archivist) and congressional committees, a report describing the use 

of ‘‘pseudo’’ classification designations that include: the number of ‘‘pseudo’’ classification policies used, existing guidance regarding 

their use, number and experience of employees and contractor personnel authorized to make such designations, cost of placing and 

maintaining information under each such designation, extent to 

which information under such designations have been released 

under the Freedom of Information Act, extent to which such designations have been used to withhold from the public information 

not otherwise authorized to be withheld, and a list of the statutory 

provisions that allow federal agencies or contractors to control, protect, or otherwise withhold information based on security concerns. 

This subsection would require a subsequent report by the Archivist, within 9 months after enactment, to the House Committees on 

Government Reform, Judiciary, Homeland Security, and Appropriations and the Senate Committees on Homeland Security and Governmental Affairs, Judiciary, and Appropriations, on the use of 

‘‘pseudo’’ classifications across the executive branch based on the 

input provided by the agencies, as well as input from the Director 

of National Intelligence, other agencies and contractors. The Archivist would be required to provide notice and an opportunity for 

public comment. 

Subsection (b) would require the Archivist to issue regulations, 

not later than 15 months after enactment, banning the use of 

‘‘pseudo’’ classifications. If the Archivist determines that there is a 

need to use information control designations (‘‘pseudo’’ classifications) to safeguard information prior to review for disclosure, beyond designations established by statute or an Executive Order relating to the classification of national security information, the regulations should establish standards for use of such designations. 

The standards should address: standards for control designations 

that are narrowly tailored, procedures for providing specified officials with authority to use the designations, including training and 

certification requirements, categories of information that may be 

controlled, duration of control designations and the process for removal, procedures for identifying, making and tracking the designations, specific limitations and prohibitions against using the 

designations, procedures for challenge by the public and the manVerDate Aug 31 2005 05:38 Apr 29, 2006 Jkt 049006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR445.XXX HR445

CCOLEMAN on PROD1PC71 with HEARING
7 

ner in which use of the designations relates to procedures of each 

agency under the Freedom of Information Act. This regulation 

should be the sole authority by which federal agencies and contractors are permitted to safeguard information prior to review for disclosure except for authority granted under Federal statute or Executive Order relating to the classification of national security information. 

Subsection (c) would require the Archivist’s report under subsection (b) to examine existing Federal statutes that allow Federal 

agencies or contractors to withhold information and include recommendations on these existing Federal statutes that would improve public access to information governed by such statutes. In developing this regulation, the Archivist shall consult with agency acquisition officials, contractors, and experts on acquisition, including 

the Administrator for Federal Procurement Policy. 

Subsection (d) would provide for the definition of the term ‘‘congressional committees’’ and define the term ‘‘pseudo classification 

designation’’ to mean information control designations, including ‘‘sensitive but not classified’’ and ‘‘for official use only’’ that are not 

defined by Federal statute or by an Executive order relating to the 

classification of national security information, but are used to manage, direct, or route government information, or control the accessibility of Government information. Nothing in this section shall 

supercede or affect section 27 of the Office of Federal Procurement 

Policy Act (41 U.S.C.423). 

Section 8. National security whistleblower rights 

This section would amend Chapter 23 of title 5 of the US Code 

to add a new section 2303a, ‘‘National Security Whistleblower 

Rights.’’ Subsection (a) would provide that, in addition to rights provided 

in Title VII of P.L. 105–272, 5 U.S.C. 2303, and any other applicable law, an employee or applicant for employment of a covered 

agency (covered agencies include, the Central Intelligence Agency, 

Defense Intelligence Agency, National Imagery and Mapping Agency, National Security Agency, Federal Bureau of Investigation, National Reconnaissance Office and any other agency involved in foreign intelligence or counterintelligence activities) may not be discharged or discriminated against, including denying, suspending, or 

revoking a security clearance or otherwise restricting access to classified or sensitive information as a reprisal for disclosing covered 

information to an authorized Member of Congress, authorized executive official or the Inspector General (IG). 

Subsection (b) would provide that an employee or applicant who 

believes he has been the subject of a reprisal prohibited by subsection (a) may complain to the IG and the agency head. The IG 

is to investigate the complaint and report to the agency head within 180 days. 

Subsection (c) would provide that within 210 days of the filing 

of the complaint, the agency head, taking into account the IG report, shall issue an order accepting or rejecting the complaint. If 

the complaint is accepted, the agency head shall implement corrective action returning the complainant as nearly as possible to his 

pre-reprisal condition, including voiding any action denying, suspending, or revoking a security clearance or other access to classiVerDate Aug 31 2005 05:38 Apr 29, 2006 Jkt 049006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR445.XXX HR445

CCOLEMAN on PROD1PC71 with HEARING
8 

fied or sensitive information as well as back pay, benefits, costs, 

and consequential damages. If the complaint is denied, the agency 

head shall issue a report detailing the reasons. The subsection 

would further provide that where corrective action by an agency 

head involves voiding a suspension or revocation of a security clearance or other access to sensitive or classified information, the agency head may re-initiate procedures to suspend the clearance or restrict access only if the new actions are based exclusively on national security concerns and not related to the original reprisal. In 

such cases the agency head is to issue a report to the IG and authorized Members of Congress explaining that the actions are 

based exclusively on national security concerns and shall provide 

periodic updates on the actions. 

This subsection also would provide that if the agency has not 

acted on the complaint within 210 days, the complainant would be 

deemed to have exhausted the administrative remedies and may 

bring an action in the appropriate district court, which shall have 

jurisdiction without regard to the amount in controversy. A petition 

to review a final decision under this subsection shall be filed in the 

U.S. Court of Appeals for the Federal Circuit. Also the complainant 

may, within 60 days, have any order issued under the section reviewed by the appropriate district court or the U.S. Court of Appeals for the Federal Circuit. The review shall conform to chapter 

7 of title 5 of the U.S. Code. A review of a final decision of the district court shall be filed in the U.S. Court of Appeals for the Federal Circuit. This subsection would finally contain limitations on 

the executive agency’s assertion of the so-called ‘‘state secrets privilege’’ in actions for damages or relief under this section. 

Subsection (d) would provide that nothing in this section is to be 

construed to authorize the discharge, demotion or discrimination 

against an employee for a disclosure other than one protected by 

this section or to change a right or remedy otherwise available to 

the employee or applicant. 

Subsection (e) would provide for the definitions of the term ‘‘covered information’’ to include information, including classified information, that an employee reasonably believes provides evidence of 

a violation of any law, rule, or regulation, or gross mismanagement, or waste of funds, abuse of authority, or substantial and specific danger to public health or safety. The subsection would also 

define the term ‘‘covered agency’’ to include those agencies listed 

above and the term ‘‘authorized Member of Congress’’ to include a 

member of the House Permanent Select Committee on Intelligence, 

the Senate Select Committee on Intelligence, the House Committee 

on Government Reform, the Senate Committee on Homeland Security and Governmental Affairs and the committees of the House or 

Senate that have oversight over the program about which the information is disclosed. 

EXPLANATION OF AMENDMENTS

There were no amendments offered. 

COMMITTEE CONSIDERATION

On Thursday, April 6, 2006, the Committee ordered the bill reported to the House by a recorded vote. 


CCOLEMAN on PROD1PC71 with HEARING
9 


CCOLEMAN on PROD1PC71 with HEARINGInsert graphic folio 10 here HR445.001
10 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to the terms and conditions of employment or access to public services and accommodations. This bill provides enhanced transparency to the operations of the executive branch. As such this bill 

does not relate to employment or access to public services and accommodations. 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report. 

CONSTITUTIONAL AUTHORITY STATEMENT

Under clause 3(d)(1) of rule XIII of the Rules of the House of 

Representatives, the Committee must include a statement citing 

the specific powers granted to Congress to enact the law proposed 

by H.R. 5112. Article I, Section 8, Clause 18 of the Constitution of 

the United States grants the Congress the power to enact this law. 

FEDERAL ADVISORY COMMITTEE ACT

The Committee finds that the legislation does not establish or 

authorize the establishment of an advisory committee within the 

definition of 5 U.S.C. App., Section 5(b). 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandate 

Reform Act, P.L. 104–4) requires a statement whether the provisions of the reported include unfunded mandates. In compliance 

with this requirement the Committee has received a letter from the 

Congressional Budget Office included herein. 

COMMITTEE ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 

5112. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its 

report a timely submitted cost estimate of the bill prepared by the 

Director of the Congressional Budget Office under section 402 of 

the Congressional Budget Act. 


CCOLEMAN on PROD1PC71 with HEARING
11 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause (3)(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 

1974, the Committee has received the following cost estimate for 

H.R. 5112 from the Director of Congressional Budget Office: 

H.R. 5112—Executive Branch Reform Act of 2006 

Summary: H.R. 5112 would amend the Ethics in Government Act 

of 1978 and the Office of Federal Procurement Policy Act. Major 

provisions of the legislation would require increased disclosure regarding contacts between certain executive branch officials and lobbyists and would expand restrictions on certain federal employees 

and on federal employees leaving government service. In addition, 

H.R. 5112 would require new regulations and a report by the National Archives and Records Administration (NARA) on the inappropriate designation of government information as classified information by federal agencies. 

CBO estimates that implementing H.R. 5112 would cost about $2 

million in fiscal year 2007 and $20 million over the 2007–2011 period, subject to the availability of appropriated funds. Enacting the 

bill could affect revenues, but CBO estimates that any increase in 

revenue collections would not be significant. Enacting the bill 

would not affect direct spending. 

H.R. 5112 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal government. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5112 is shown in the following table. The costs 

of this legislation fall within budget function 800 (general government). 

By fiscal year, in millions of dollars— 

2007 2008 2009 2010 2011 

SPENDING SUBJECT TO APPROPRIATION 1

Office of Government Ethics: 

Authorization Level ......................................................................................... 11 12 12 13 13 

Estimated Outlays .......................................................................................... 11 12 12 13 13 

Proposed Changes: 

Estimated Authorization Level ....................................................................... 2 3 4 5 6 

Estimated Outlays .......................................................................................... 2 3 4 5 6 

Spending Under H.R. 5112 for the Office of Government Ethics: 

Estimated Authorization Level ....................................................................... 13 15 16 18 19 

Estimated Outlays .......................................................................................... 13 15 16 18 19 

1 Enacting the bill also could affect revenues, but CBO estimates that any such effects would not be significant. 

Basis of estimate: For this estimate, CBO assumes that the H.R. 

5112 will be enacted near the end of fiscal year 2006, that the necessary amounts will be appropriated over the 2007–2011 period, 

and that spending will follow historical spending patterns of the 

Office of Government Ethics (OGE). 


CCOLEMAN on PROD1PC71 with HEARING
12 

Spending subject to appropriation 

The legislation would require certain executive branch officials to 

disclose contacts with private parties seeking to influence government actions, and it would expand restrictions on certain federal 

employees leaving or beginning government service. H.R. 5112 also 

would require the Office of Government Ethics to enforce the new 

lobbying restrictions. 

Under current law, OGE manages financial reporting for about 

1,000 Presidential appointees and provides guidance and training 

to the executive branch regarding workplace ethics issues. According to information from the Office of Personnel Management (OPM) 

and data from the uniformed services, CBO estimates that approximately 8,000 employees would be affected by the expanded reporting requirements proposed in H.R. 5112. 

CBO estimates that OGE would need about 40 new attorneys, 

paralegals, auditors, and administrative personnel and additional 

computer resources to oversee workplace ethics reporting and compliance by those additional federal employees. In addition, we anticipate that this increase in staffing would occur over 4 years. 

Thus, CBO estimates that implementing the legislation would cost 

about $20 million over the 2007–2011 period, assuming appropriation of the necessary amounts. 

H.R. 5112 also would require the NARA to report on and issue 

regulations to prevent inappropriate classification of information as 

classified by federal agencies. Based on information from the 

NARA, this provision would codify and expand current policy. CBO 

estimates that preparing regulations and a report would cost less 

than $500,000 over the 2007–2008 period. 

Revenues 

Enacting H.R. 5112 could affect federal revenues as a result of 

new civil penalties for violations of workplace ethics rules. Collections of civil penalties are recorded in the budget as revenues. CBO 

estimates, however, that any change in revenues that would result 

from enacting the bill would not be significant. 

Intergovernmental and private-sector impact: H.R. 5112 contains 

no intergovernmental or private-sector mandates as defined in the 

UMRA and would impose no costs on state, local, or tribal government. 

Estimate prepared by: Federal Costs: Matthew Pickford. Impact 

on State, Local, and Tribal Governments: Sarah Puro. Impact on 

the Private Sector: Amy Petz. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

ETHICS IN GOVERNMENT ACT OF 1978 

* * * * * * * 


CCOLEMAN on PROD1PC71 with HEARING
13 

TITLE VI—EXECUTIVE BRANCH DISCLOSURE OF SIGNIFICANT CONTACTS 

SEC. 601. RECORDING AND REPORTING BY CERTAIN EXECUTIVE 

BRANCH OFFICIALS OF SIGNIFICANT CONTACTS MADE TO 

THOSE OFFICIALS. 

(a) IN GENERAL.—Not later than 30 days after the end of a calendar quarter, each covered executive branch official shall make a 

record of, and file with the Office of Government Ethics a report on, 

any significant contacts during the quarter between the covered executive branch official and any private party relating to an official 

government action. If no such contacts occurred, each such official 

shall make a record of, and file with the Office a report on, this fact, 

at the same time. 

(b) CONTENTS OF RECORD AND REPORT.—Each record made, and 

each report filed, under subsection (a) shall contain—

(1) the name of the covered executive branch official; 

(2) the name of each private party who had a significant contact with that official; and 

(3) for each private party so named, a summary of the nature 

of the contact, including—

(A) the date of the contact; 

(B) the subject matter of the contact and the specific executive branch action to which the contact relates; and 

(C) if the contact was made on behalf of a client, the 

name of the client. 

(c) WITHHOLDING FOIA-EXEMPT INFORMATION.—This section does 

not require the filing with the Office of Government Ethics of information that is exempt from public disclosure under section 552(b) 

of title 5, United States Code (popularly referred to at the ‘‘Freedom 

of Information Act’’). 

SEC. 602. AUTHORITIES AND RESPONSIBILITIES OF OFFICE OF GOVERNMENT ETHICS. 

(a) IN GENERAL.—The Director of the Office of Government Ethics 

shall—

(1) promulgate regulations to implement this title, provide 

guidance and assistance on the recording and reporting requirements of this title, and develop common standards, rules, and 

procedures for compliance with this title; 

(2) review, and, where necessary, verify the accuracy, completeness, and timeliness of reports; 

(3) develop filing, coding, and cross-indexing systems to carry 

out the purpose of this title, including—

(A) a publicly available list of all private parties who 

made a significant contact; and 

(B) computerized systems designed to minimize the burden of filing and maximize public access to reports filed 

under this title; 

(4) make available for public inspection and copying at reasonable times the reports filed under this title; 

(5) retain reports for a period of at least 6 years after they are 

filed; 


CCOLEMAN on PROD1PC71 with HEARING
14 

(6) compile and summarize, with respect to each reporting period, the information contained in reports filed with respect to 

such period in a clear and complete manner; 

(7) notify any covered executive branch official in writing that 

may be in noncompliance with this title; and 

(8) notify the United States Attorney for the District of Columbia that a covered executive branch official may be in noncompliance with this title, if the covered executive branch official has been notified in writing and has failed to provide an 

appropriate response within 60 days after notice was given 

under paragraph (7). 

SEC. 603. PENALTIES. 

Whoever knowingly fails to—

(1) remedy a defective filing within 60 days after notice was 

given under paragraph (7); or 

(2) comply with any other provision of this title; 

shall, upon proof of such knowing violation by a preponderance of 

the evidence, be subject to a civil fine of not more than $50,000, depending on the extent and gravity of the violation. 

SEC. 604. DEFINITIONS. 

In this title: 

(1) COVERED EXECUTIVE BRANCH OFFICIAL.—The term ‘‘covered executive branch official’’ means—

(A) any officer or employee serving in a position in level 

I, II, III, IV, or V of the Executive Schedule, as designated 

by statute or Executive order; 

(B) any member of the uniformed services whose pay 

grade is at or above O–7 under section 201 of title 37, 

United States Code; 

(C) any officer or employee serving in a position of a confidential, policy-determining, policy-making, or policy-advocating character described in section 7511(b)(2)(B) of title 5, 

United States Code; and 

(D) any officer or employee serving in a position of a confidential, policy-determining, policy-making, or policy advocating character, or any other individual functioning in the 

capacity of such an officer or employee, in the Executive Office of the President or the Office of the Vice President, but 

does not include the President or Vice President or the chief 

of staff of the President or Vice President. 

(2) SIGNIFICANT CONTACT.—The term ‘‘significant contact’’

means oral or written communication (including electronic communication) that is made by a private party to a covered executive branch official in which such private party seeks to influence, or obtain nonpublic information about, official action by 

any officer or employee of the executive branch of the United 

States. 

(3) PRIVATE PARTY.—The term ‘‘private party’’ means any person or entity, but does not include a Federal, State, or local government official or a person representing such an official. 


CCOLEMAN on PROD1PC71 with HEARING
15 

TITLE VII—STOPPING THE REVOLVING 

DOOR 

SEC. 701. TWO-YEAR COOLING-OFF PERIOD FOR PERSONS LEAVING 

GOVERNMENT SERVICE. 

(a) IN GENERAL.—A covered executive branch official shall not, for 

a period of two years after the termination of his employment, engage in any conduct that would be prohibited under subsections (c) 

or (d) of section 207 of title 18, United States Code, if it occurred 

within one year after the termination of his employment. 

(b) NO EFFECT ON SECTION 207.—This section does not expand, 

contract, or otherwise affect the application of any waiver or criminal penalties under section 207 of title 18, United States Code. 

SEC. 702. PROHIBITION ON NEGOTIATION OF FUTURE EMPLOYMENT. 

(a) PROHIBITION.—A covered executive branch official shall not 

participate in any official matter in which, to the official’s knowledge, a person or organization with whom the official is negotiating 

or has any arrangement concerning prospective employment has a 

financial interest, unless a waiver has been granted under subsection (b). 

(b) WAIVERS ONLY WHEN EXCEPTIONAL CIRCUMSTANCES EXIST.—

A waiver to subsection (a) is not available, and shall not be granted, 

to any individual except in a case which the Government official responsible for the individual’s appointment as a covered executive 

branch official determines that exceptional circumstances exist. 

Whenever such a determination is made, the Director of the Office 

of Government Ethics shall independently investigate and review 

the circumstances relating to the determination, and the waiver 

shall not take effect until the date on which the Director certifies in 

writing that exceptional circumstances exist. 

SEC. 703. COOLING-OFF PERIOD FOR CERTAIN PERSONS ENTERING 

GOVERNMENT SERVICE. 

(a) IN GENERAL.—A covered executive branch official shall not engage in conduct relating to a covered entity that would be prohibited 

under section 208 of title 18, United States Code, if the official had 

a financial interest in the covered entity, unless a waiver has been 

granted under subsection (b). 

(b) WAIVER.—An agency’s designated ethics officer may, if the Director of the Office of Government Ethics approves, waive the prohibition in subsection (a) with respect to a covered executive branch 

official of that agency upon a determination that the relationship 

between the covered executive branch official and the covered entity 

is not so substantial as to be deemed likely to affect the integrity of 

the services that the Government may expect from the official. 

(c) DEFINITION.—In this section, the term ‘‘covered entity’’ means 

an entity—

(1) in which the official, within the previous 2 years, served 

as an officer, director, trustee, general partner, or employee; or 

(2) for which the official, within the previous 2 years, worked 

as a lobbyist, lawyer, or other representative. 

(d) NO EFFECT ON SECTION 208.—This section does not expand, 

contract, or otherwise affect the application of any criminal penalties under section 208 of title 18, United States Code. 


CCOLEMAN on PROD1PC71 with HEARING
16 

SEC. 704. PENALTIES. 

Whoever violates section 701, 702, or 703 of this title shall, upon 

proof of such knowing violation by a preponderance of the evidence, 

be subject to a civil fine of not more than $100,000, depending on 

the extent and gravity of the violation. 

SEC. 705. DEFINITION. 

In this title, the term ‘‘covered executive branch official’’ means—

(1) any officer or employee serving in a position in level I, II, 

III, IV, or V of the Executive Schedule, as designated by statute 

or Executive order; 

(2) any member of the uniformed services whose pay grade is 

at or above O–7 under section 201 of title 37, United States 

Code; 

(3) any officer or employee serving in a position of a confidential, policy-determining, policy-making, or policy-advocating 

character described in section 7511(b)(2)(B) of title 5, United 

States Code; and 

(4) any officer or employee serving in a position of a confidential, policy-determining, policy-making, or policy advocating 

character, or any other individual functioning in the capacity 

of such an officer or employee, in the Executive Office of the 

President or the Office of the Vice President; and 

(5) the Vice President. 

SECTION 27 OF THE OFFICE OF FEDERAL 

PROCUREMENT POLICY ACT 

SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING CONTRACTOR BID OR PROPOSAL INFORMATION OR SOURCE 

SELECTION INFORMATION. 

(a) * * * 

* * * * * * * 

(c) ACTIONS REQUIRED OF PROCUREMENT OFFICERS WHEN CONTACTED BY OFFERORS REGARDING NON-FEDERAL EMPLOYMENT.—(1) 

If an agency official who is participating personally and substantially in a Federal agency procurement for a contract in excess of 

the simplified acquisition threshold contacts or is contacted by a 

person who is a bidder or offeror in that Federal agency procurement regarding possible non-Federal employment for that official 

or for a relative of that official (as defined in section 3110 of title 

5, United States Code),, the official shall—

(A) * * * 

* * * * * * * 

(d) PROHIBITION ON FORMER OFFICIAL’S ACCEPTANCE OF COMPENSATION FROM CONTRACTOR.—(1) A former official of a Federal 

agency may not accept compensation from a contractor as an employee, officer, director, øor consultant¿ consultant, lawyer, or lobbyist of the contractor within a period of øone year¿ two years after 

such former official—

(A) * * * 

* * * * * * * 

(C) øpersonally made for the Federal agency—¿ participated 

personally and substantially in—


CCOLEMAN on PROD1PC71 with HEARING
17 

(i) * * * 

* * * * * * * 

ø(2) Nothing in paragraph (1) may be construed to prohibit a 

former official of a Federal agency from accepting compensation 

from any division or affiliate of a contractor that does not produce 

the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in subparagraph (A), (B), or (C) of such paragraph.¿ 

(2) Paragraph (1) shall not prohibit a former official of a Federal agency from accepting compensation from any division or 

affiliate of a contractor that does not produce the same or similar products or services as the entity of the contractor that is 

responsible for the contract referred to in subparagraph (A), (B), 

or (C) of such paragraph if the agency’s designated ethics officer 

determines that—

(A) the offer of compensation is not a reward for any action described in paragraph (1); and 

(B) acceptance of the compensation is appropriate and 

will not affect the integrity of the procurement process. 

* * * * * * * 

(i) PROHIBITION ON INVOLVEMENT BY CERTAIN FORMER CONTRACTOR EMPLOYEES IN PROCUREMENTS.—An employee of the Federal Government who is a former employee of a contractor with the 

Federal Government shall not be personally and substantially involved with any award of a contract to the employee’s former employer, or the administration of such a contract, for the two-year period beginning on the date on which the employee leaves the employment of the contractor. 

(j) REGULATIONS.—The Administrator, in consultation with the 

Director of the Office of Government Ethics, shall—

(1) promulgate regulations to carry out and ensure the enforcement of this section; and 

(2) monitor and investigate individual and agency compliance with this section. 

CHAPTER 13 OF TITLE 31, UNITED STATES CODE 

CHAPTER 13—APPROPRIATIONS 

SUBCHAPTER I—GENERAL 

Sec. 

1301. Application. 

* * * * * * * 

SUBCHAPTER III—LIMITATIONS, EXCEPTIONS, AND PENALTIES 

1341. Limitations on expending and obligating amounts. 

* * * * * * * 

1355. Prohibition on unauthorized expenditure of funds for publicity or propaganda 

purposes. 

* * * * * * * 

SUBCHAPTER III—LIMITATIONS, EXCEPTIONS, AND 

PENALTIES 

* * * * * * * 


CCOLEMAN on PROD1PC71 with HEARING
18 

§ 1355. Prohibition on unauthorized expenditure of funds for 

publicity or propaganda purposes 

An officer or employee of the United States Government may not 

make or authorize an expenditure or obligation of funds for publicity or propaganda purposes within the United States unless authorized by law. 

CHAPTER 23 OF TITLE 5, UNITED STATES CODE 

CHAPTER 23—MERIT SYSTEM PRINCIPLES 

* * * * * * * 

§ 2303a. National security whistleblower rights 

(a) PROHIBITION OF REPRISALS.—In addition to any rights provided in Title VII of Public Law 105–272, section 2303 of title 5, 

United States Code, or any other law, an employee or applicant for 

employment of a covered agency may not be discharged, demoted, or 

otherwise discriminated against, including denying, suspending, or 

revoking a security clearance or otherwise restricting access to classified or sensitive information, as a reprisal for disclosing covered 

information to an authorized Member of Congress or to an authorized official of an executive agency, the Department of Justice, or the 

Inspector General of the employee’s employing covered agency. 

(b) INVESTIGATION OF COMPLAINTS.—An employee or applicant for 

employment of a covered agency who believes he has been subjected 

to a reprisal prohibited by subsection (a) may submit a complaint 

to the Inspector General and head of the covered agency. The Inspector General shall investigate the complaint and, unless the Inspector 

General determines that the complaint is frivolous, submit a report 

of the findings of the investigation within 180 days to the employee 

or applicant for employment and the head of the covered agency. 

(c) REMEDY.— (1) Within 210 days of the filing of the complaint, the head 

of the covered agency shall issue an order accepting or rejecting 

the complaint, or portions thereof, taking into consideration the 

report issued by the Inspector General under subsection (b), if 

any. If the head of the covered agency accepts the complaint, he 

shall implement corrective action to return the complainant, as 

nearly as possible, to the position he would have held had the 

reprisal not occurred, including voiding any directive or order 

denying, suspending, or revoking a security clearance or otherwise restricting access to classified or sensitive information that 

constituted a reprisal, as well as providing back pay and related benefits, medical costs incurred, travel expenses, and any 

other reasonable and foreseeable consequential damages including attorney’s fees and costs. If the head of the covered agency 

rejects the complaint, he shall issue a report to the employee or 

applicant for employment detailing the reasons for the rejection. 

(2)(A) If the head of the covered agency, in the process of implementing corrective action under (c)(1), voids a directive or 

order denying, suspending, or revoking a security clearance or 

otherwise restricting access to classified or sensitive information 

that constituted a reprisal, the head of the covered agency may 

re-initiate procedures to issue a directive or order denying, susVerDate Aug 31 2005 05:38 Apr 29, 2006 Jkt 049006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6603 E:\HR\OC\HR445.XXX HR445

CCOLEMAN on PROD1PC71 with HEARING
19 

pending, or revoking a security clearance or otherwise restricting access to classified or sensitive information only if those reinitiated procedures are based exclusively on national security 

concerns and are unrelated to the actions constituting the original reprisal. 

(B) In any case in which the head of a covered agency re-initiates procedures under (2)(A), the head of the covered agency 

shall issue an unclassified report to its IG and authorized members of Congress (with a classified annex if necessary), detailing 

the circumstances of the agency’s re-initiated procedures and 

describing the manner in which those procedures are based exclusively on national security concerns and are unrelated to the 

actions constituting the original reprisal. The head of the covered agency shall also provide periodic updates to the IG and 

authorized members of Congress detailing any significant actions taken as a result of those procedures, and shall respond 

promptly to inquiries from authorized Members of Congress regarding the status of those procedures. 

(3) If the head of the covered agency has not accepted or rejected the complaint within 210 days of the filing of the complaint, and there is no showing that such delay is due to the 

bad faith of the complainant, the complainant shall be deemed 

to have exhausted his or her administrative remedies with respect to the complaint, and the complainant may bring an action at law or equity for de novo review to seek any relief described in (c)(1) in the appropriate district court of the United 

States, which shall have jurisdiction over such action without 

regard to the amount in controversy. A petition to review a final 

decision under this subsection shall be filed in the United 

States Court of Appeals for the Federal Circuit. 

(4) The complainant may obtain review of any order issued 

under this section in the appropriate district court of the United 

States or the United States Court of Appeals for the Federal 

Circuit. No petition seeking such review may be filed more than 

60 days after issuance of the order by the head of the agency. 

Review shall conform to chapter 7 of title 5. A petition to review 

a final decision of a district court under this subsection shall 

be filed in the United States Court of Appeals for the Federal 

Circuit. 

(5)(A) If, in any action for damages or relief under subsections (c)(3) or (c)(4), an executive branch agency moves to 

withhold information from discovery based on a claim that disclosure would be inimical to national security by asserting the 

privilege commonly referred to as the ‘‘state secrets privilege,’’

and if the assertion of such privilege prevents the plaintiff from 

establishing an element in support of the plaintiff’s claim, the 

court shall resolve the disputed issue of fact or law in favor of 

the plaintiff, provided that an inspector general investigation 

under subsection (b) has resulted in substantial confirmation of 

that element, or those elements, of the plaintiff’s claim. 

(B) In any case in which an executive branch agency asserts 

the privilege commonly referred to as the ‘‘state secrets privilege,’’ whether or not an inspector general has conducted an investigation under subsection (b), the head of that agency shall, 

at the same time it asserts the privilege, issue a report to auVerDate Aug 31 2005 05:38 Apr 29, 2006 Jkt 049006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6603 E:\HR\OC\HR445.XXX HR445

CCOLEMAN on PROD1PC71 with HEARING
20 

thorized Members of Congress, accompanied by a classified 

annex if necessary, describing the reasons for the assertion, explaining why the court hearing the matter does not have the 

ability to maintain the protection of classified information related to the assertion, detailing the steps the agency has taken 

to arrive at a mutually agreeable settlement with the employee 

or applicant for employment, setting forth the date on which the 

classified information at issue will be declassified, and providing all relevant information about the underlying substantive matter. 

(d) CONSTRUCTION.—Nothing in this section may be construed to 

authorize the discharge of, demotion of, or discrimination against 

an employee for a disclosure other than a disclosure protected by 

subsection (a) of this section or to modify or derogate from a right 

or remedy otherwise available to the employee or applicant for employment. 

(e) DEFINITIONS.—In this section: 

(1) The term ‘‘covered information,’’ including classified information, is information that an employee reasonably believes to 

provide direct and specific evidence of—

(A) a violation of any law, rule, or regulation, or 

(B) gross mismanagement, a gross waste of funds, an 

abuse of authority, or a substantial and specific danger to 

public health or safety. 

(2) The term ‘‘covered agency’’ means one of the following: 

(A) The Central Intelligence Agency. 

(B) The Defense Intelligence Agency. 

(C) The National Imagery and Mapping Agency. 

(D) The National Security Agency. 

(E) The Federal Bureau of Investigation. 

(F) The National Reconnaissance Office. 

(G) Any other Executive agency, or element or unit thereof, determined by the President under section 

2302(a)(2)(C)(ii) of title 5, United States Code, to have as 

its principal function the conduct of foreign intelligence or 

counterintelligence activities. 

(3) The term ‘‘authorized member of Congress’’ means a member of the House Permanent Select Committee on Intelligence, 

the Senate Select Committee on Intelligence, the House Committee on Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, and the committees of 

the House of Representatives or the Senate that have oversight 

over the program about which the covered information is disclosed. 

* * * * * * * 

Æ 


CCOLEMAN on PROD1PC71 with HEARING