Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
26416128
label
President - Campaign Executive Branch Officials Participation (5)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
26416128
sourceUrl
contentType
document
title
President - Campaign Executive Branch Officials Participation (5)
citationUrl
collections
Philip W. Buchen Files
Philip Buchen's General Subject Files
subjects
Presidential campaign, 1976
Hatch Act, 1939
Cabinet
Executive departments
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
26416128
coverageEndDate
logicalDate
1976-10-01
month
10
year
1976
coverageStartDate
logicalDate
1975-03-01
month
3
year
1975
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
9c25409f15bf9757
ocrText
The original documents are located in Box 44, folder "President - Campaign Executive
Branch Officials Participation (5)" of the Philip Buchen Files at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 44 of the Philip Buchen Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
March 12, 1976
TO:
JOHN MARSH
FROM:
EVA DAUGHTREY
The attached memo arrived too late
for Mr. Buchen to bring to the Senior
Staff meeting.
He wanted it sent to you -- in case you
would like to let the President know.
BERALD FORD
FOR SENIOR STAFF MEETING
THE WHITE HOUSE
WASHINGTON
March 12, 1976
MEMORANDUM FOR:
PHIL BUCHEN
FROM:
KEN LAZARUS
pl
SUBJECT:
The Senate Passage of H.R. 8617,
the Hatch Act Amendments
Yesterday, by a vote of 47 to 32, the Senate passed the Federal
Employees Political Activities Act of 1976. Although we were
successful in defeating the Clark Amendment which would have
brought White House staff within the purview of the Hatch Act,
as amended, the Senate version of H.R. 8617 is generally no
more acceptable to the President than the version passed by the
House in October of 1975.
A Federal employees pay act amendment offered by Senator Allen
and accepted by the Senate as an amendment to H.R. 8617 will
insure that the bill will now go to conference. Had this amend-
ment not been offered and accepted, it was likely that the amend-
ments added by the Senate would have been promptly accepted by
the House and the measure sent on to the President before the end
of the month.
With the additional time allowed by the necessity of a conference
on this bill, it would be desirable to fashion a series of Presidential
actions,e. g., a letter of concern from the President to the members
of the Conference Committee and a meeting with Mr. Nathan
Wolkomir, President of the National Federation of Federal
Employees (and opposed to the bill), in order to lay a footing for
an anticipated veto. As I mentioned in a previous memo to you
on this subject, prospects for sustaining a veto in the House are
fair. By virtue of yesterday's votes in the Senate, I anticipate
that there will be little difficulty in sustaining a veto there.
GREATE FORD LIBRARY
DRAFT
[July 1976?]
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE CABINET
SUBJECT: Guidelines in Connection with the 1976
Election Campaign
On January 7, 1976, I sent members of the Cabinet
and others a memorandum on the same subject. At this
time, the President has asked me to reaffirm the guidance
provided by that memorandum and to set forth additional
principles which specifically should be applied in regard
to delegates (and alternates) to the upcoming Republican
National Convention.
Every opportunity may be afforded the delegates to
become fully acquainted with the President's record and
his opinion and policies on issues of concern to them,
but no official action or stand on the part of anyone
in the Administration shall be offered, promised or
provided as consideration, favor or reward for the
support of delegates to benefit the President's
DEPARTMENT
/
candidacy.
LEVESIT
In the event a delegate has an interest in the
outcome of a pending or prospective procedure for employ-
ment, contract, grant, benefit or relief from the Federal
- 2 -
Government, no intervention with those officials who
are responsible for determining the results shall be
made by anyone on behalf of the President to control
or affect the results of that procedure as a means to
influence the votes or activities of the delegate.
This restriction is not intended to preclude requested
inquiries and reports on the status of pending procedures,
but these should be handled in the same manner as they
would for any other concerned citizen and without
affecting the results of the procedures.
Delegates may be informed of all the reasons why
selection of the President to be the nominee of the
Republican Party is in the best interest of the nation,
but no offer or promise shall be made to delegates that
an appointment to office or other benefit can be
obtained from the Federal Government for any particular
person as a consequence of the votes or activities of
such delegates in the convention.
James E. Connor
SECRETARY OF THE CABINET
pd dies
THE WHITE HOUSE
WASHINGTON
January 7, 1976
MEMORANDUM FOR
THE CABINET
SUBJECT:
Guidelines in Connection with the 1976.
Election Campaign
Following are guidelines to be followed by all members of the
Cabinet, as well as other appropriate Federal officials, in
connection with their participation in the 1976 Federal elections,
These guidelines are based upon relevant statutory prohibitions,
Executive Orders, rulings and proposed regulations by the
Federal Election Commission.
I.
GENERAL PROHIBITIONS
The following restrictions on particular political
activities apply to all Federal employees:
A. Federal law prohibits the solicitation or receipt
of political contributions by a Federal official or
employee from any other Federal official or employee.
B. Federal law prohibits solicitation or receipt of
political contributions on Federal property.
In the event that campaign contributions are
received either from such persons or on Federal
property, such contributions must be promptly
returned with an appropriate explanation.
C. Federal law prohibits any direct or indirect promise
of appointment, employment, contract, or special
consideration for a governmental benefit as a
consideration, favor or reward for political activity
or support to a candidate or political party.
SEAL 2. FORD LIBRARY
- 2 -
D. Appropriated funds may not be used to conduct or
support political activities on behalf of a candidate
or political party.
II. HATCH ACT RESTRICTIONS
A. The Hatch Act prohibits all persons subject to its
provisions from participating or engaging in any
political campaign activity, either State or Federal,
on behalf of any candidate or political party. In
general, the heads of the Executive or Military
Departments, other officials appointed by the
President subject to Senate confirmation, and em-
ployees paid by the White House Office or the
Vice President's Office, are exempt from the
Hatch Act restrictions. Other Federal employees,
including NEA and Schedule C employees, are
subject to the Act; and the Act applies to them
even outside of working hours and while they are
on leave status.
B. "Hatched" employees may not assist in writing
political speeches, and may not be utilized in
advancing, conducting or managing a political
event or a candidate-related activity. PFC
personnel will be available to assist you in
connection with any such political activity. This
restriction does not apply to regular security
personnel present for the protection of the
participating official or to aides making advance
arrangements, unrelated to the event itself, for
official travel and activities. Although "Hatched"
employees may assist the official in going to and
from a political event, they must not take an
active role or participate in the event itself.
III. PERMISSIBLE POLITICAL ACTIVITIES
Following are guidelines for permissible political activities
on behalf of the President or the Republican Party by Cabinet
members and other officials not subject to the Hatch Act:
A. Although final allocation regulations will not be
available from the Federal Election Commission
- 3 -
until later in January, the Commission has
informally indicated its approval of an allocation
formula which apportions travel expenses on
mixed official and political trips based upon the
relative periods of time spent on the two kinds
of activities. Accordingly, accurate records should
be kept which distinguish all time spent and direct
expenses incurred for political events from the
time and expenses incurred for official business.
Such records should then be sent to the PFC for
allocation of expenses on the basis of the relative
periods of time spent on political and bona fide
official activities. More specific guidelines
will be provided once the final allocation regulations
are available from the Federal Election Commission.
B. Permissible political activities include serving as
speaker, honored guest or sponsor for fundraising
or other political events. However, the participating
government official should not accept contributions
for the President, but should direct the contributor
to a PFC fundraising official. In connection with
particular events, the PFC will avoid singling out
for campaign support special interest groups or
organizations which are immediately concerned with
the functions of the department or agency represented
by the government official appearing at the event.
C. As a general rule, speeches before non-partisan
groups, such as a trade, labor, or professional
association, are official in nature. Each member
of the Administration should insure that official
activities and other non-political functions are not
and do not appear to involve political activities
for the benefit of or on behalf of any Federal
candidate. If candidate-related activities, including
extemporaneous remarks, are engaged in during
an official trip, the Federal election campaign laws
may require that a portion of the expenses incurred
for such trip shall be attributed to the candidate
and counted against the candidate's spending limits.
- 4 -
However, this requirement does not preclude full,
fair and open discussion of national issues,
current conditions and trends, and existing or
proposed administrative or legislative programs
which are within the expertise of the speaker.
What it does preclude is advocacy of a candidate
for Federal office or making partisan political
comment about a candidate or political party.
Questions regarding the above guidelines or the
legality or propriety of any mixed official-political
activity should be directed to the Office of the
Counsel to the President. Advice regarding the
conduct of the campaign itself under the new
Federal election campaign laws should be sought
from the General Counsel to the President Ford
Committee.
JAMES E. CONNOR
SECRETARY TO THE CABINET
GERAL
LIBRARY
DRAFT
[Vuly 1976?
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE CABINET
SUBJECT:
Guidelines in Connection with the 1976
Election Campaign
On January 7, 1976, I sent members of the Cabinet
and others a memorandum on the same subject. At this
time, the President has asked me to reaffirm the guidance
provided by that memorandum and to set forth additional
principles which specifically should be applied in regard
to delegates (and alternates) to the upcoming Republican
National Convention.
Every opportunity may be afforded the delegates to
become fully acquainted with the President's record and
his opinion and policies on issues of concern to them,
but no official action or stand on the part of anyone
in the Administration shall be offered, promised or
provided as consideration, favor or reward for the
support of delegates to benefit the President's
candidacy.
s. FORD LIBRARY
In the event a delegate has an interest in the
outcome of a pending or prospective procedure for employ-
ment, contract, grant, benefit or relief from the Federal
- 2 -
Government, no intervention with those officials who
are responsible for determining the results shall be
made by anyone on behalf of the President to control
or affect the results of that procedure as a means to
influence the votes or activities of the delegate.
This restriction is not intended to preclude requested
inquiries and reports on the status of pending procedures,
but these should be handled in the same manner as they
would for any other concerned citizen and without
affecting the results of the procedures.
Delegates may be informed of all the reasons why
selection of the President to be the nominee of the
Republican Party is in the best interest of the nation,
but no offer or promise shall be made to delegates that
an appointment to office or other benefit can be
obtained from the Federal Government for any particular
person as a consequence of the votes or activities of
such delegates in the convention.
James E. Connor
SECRETARY OF THE CABINET
LETTER TO
The Honorable Vernon W. Thompson
Chairman, The Federal Election Commission
1325 K. Street, N.W.
Washington, D. C.
Dear Mr. Chairman:
On March 12, 1976, Citizens for Reagan sent a
letter to the Commission calling for "an immediate
investigation" of Secretary Kissinger's political
activities on behalf of the Ford campaign. We hoped
the Commission would look into the broad question of
"the use of government powers for clearly partisan
campaign purposes. We viewed this problem as "the
greatest danger facing the current election laws, "
and therefore, urged the Commission to "act on this
matter immediately.'
On May 13, 1976, the Public Citizen Litigation
Group filed a Memorandum of Law with the Commission
supporting the legal basis of our request. Since that
date, more and more questionable uses of the power
of the incumbency and the resources of government
by the Ford administration have come to our attention.
We feel that these actions endanger our free political
system and raise the spector of the abuses that the
new election law was supposed to prevent.
We have noted numerous cases of Ford White House
staff who are listed as reimbursed only for campaign
travel on the Ford Committee reports. Does this mean
that their efforts and services can be used with im-
punity to promote Mr. Ford's election campaign while
the taxpayer picks up the tab? Are these in-kind
contributions of staff time allowed to escape all
-2-
financial disclosure and remain unfettered by the
contribution and expenditure limitations that bind
all other presidential candidates?
Apparently, the Ford Committee has been
fianncing much of this travel via governemnt credit.
While our Committee has paid in advance over $800,000
for our candidate's chartered airplanes, the Ford Committee
reports a much lower rate of payment for their campaign
travel (less than $100,000 for Air Force One travel to
date and helicopter charges as low as $11.54 per trip);
and these were billed on a credit basis providing
immeasurable assistance to his campaign during the period
when matching funds were not available. It would appear
from the record that while White House political press
travel is financed by the government and uses government
employees for arrangements, the other candidates must
finance for as long as three months their press travel
expenses and hire employees to plan and coordinate the
trips. Only limited reimbursements for extensive campaign
travel by various cabinet officials and holders of high
administrative positions are apparent on the Ford Committee's
reports. Given the unusually low charges for White House
travel when compared to other campaigns, full disclosure
of all political travel by the First Family should be
required to give an equitable measure of benefits.
As the campaign spending limits close in on all
the candidates campaigns, the potential of government
"fringe benefits" available to an incumber president
become even more significant and must be carefully
monitored by the Federal Election Commission to insure
that the spirit and the letter of the Federal election
law is carried out. The spending limitation would
otherwise be grossly unfair under our system. This
is especially amplified in the setting of this campaign
which is so close that virtually all political commentators
agree it is too close to call.
On Wednesday of this week, our Committee delivered
the attached letter (Appendix A) to the Chairman of the
-3-
Republican National Committee. It was motivated by
what to us is not only a
abuse, but by what
is an outrageous political advantage in a contest where
even a slight political advantage might be critical.
On the basis of the public record, it appears
that the Ford Campaign is contemplating the lavish
useof White House personnel and resources at the Repub-
lican National Convention in Kansas City. The White
House above and beyond the Ford Committee has been
allocated 288 rooms and 450 Gallery passes to the
Convention. In other words, it would appear that the
White House is planning to bring almost three times
the number of personnel to Kansas City as the amount
that they are officially planning to report under
their Ford Committee budget.
In running against an incumber one must expect to
run against the normal advantages of the incumbency;
the promise of Federal projects, contracts and benefits,
the distribution of Federal appointments and jobs in
primary states immediately before the election, and the
ability to use White House dinners and facilities to
WOO party officials and delegates. We make no complaints
about these practices; good, bad, legal or questionable,
they are all part of a long established game. However,
we must draw the line somewhere. The White House staff,
paid by the taxpayers, is lavishly used as an adjunct to
the Ford Committee. This is improper in the worst sense.
This strikes at the heart of fair elections. When the
President can travel via government means for the entire
campaign at a cost that would not total two full weeks
outlay for air travel for other candidates and do it on
credit, something is very wrong.
We are hoping the Commission would realize the
seriousness of these facts and the urgency of doing
something in light of the approaching Republican National
Convention, now only six weeks away. So far, to our
knowledge, nothing has been done. I, therefore,
-4-
respectfully request a special and public Commission
meeting to deal with this problem during the week of
July 6 through 9, 1976. This meeting should be public
since the over-riding question is one of basic legal
principle. Does an incumbent have a legal right to use
staff and the resources of his public office to promote
his campaign? Do such uses constitute contributions and
expenditures which must be disclosed? Once these legal
questions are resolved, we understand that the normal
executive session compliance procedures are mandated.
If the Commission choses not to act, such refusal
constitutes a denial of any relief to our Committee.
Additionally, if the Commission takes no action, then
we must assume it has chosen to exercise its exclusive
primary jurisdiction under 2 U.S.C. 437c (b) (1) in a
negative way. In virw of the critically short time,
our remedy must then be left to the judiciary.
Sincerely,
Loren A. Smith
CC: All Federal Election Commissioners
Mary Louise Smith, Chairman
Republican National Committee
7/8/76
cy given to
Cannon
DRAFT
Barry gave
Commor
a cy.
MEMORANDUM FOR
THE CABINET
SUBJECT:
Guidelines in Connection with
the 1976 Election Campaign
On January 7, 1976, I sent members of the Cabinet and others a
memorandum on the same subject. At this time, the President
has asked me to reaffirm the guidance provided by that memorandum
and to set forth additional principles which specifically should be
applied in regard to delegates (and alternates) to the upcoming
Republican National Conventionan in regard to your ottendance
st the Convention.
Every opportunity may be afforded the delegates to become fully
acquainted with the President's record and his opinion and
policies on issues of concern to them, but no official action or
stand on the part of anyone in the Administration shall be offered,
promised or provided as consideration, favor or reward for the
support of delegates to benefit the President's candidacy.
In the event a delegate has an interest in the outcome of a pending
or prospective procedure for employment, contract, grant,
benefit or relief from the Federal Government, no intervention
BERAHD n. FORD
-2-
with those officials who are responsible for determining the
results shall be made by anyone on behalf of the President to
control or affect the results of that procedure as a mean S to
influence the votes or activities of the delegate. This restriction
is not intended to preclude requested inquiries and reports on
the status of pending procedures, but these should be handled in
the same manner as they would for any other concerned citizen
and without affecting the results of the procedures.
Delegates may be informed of all the reasons why selection of
the President to be the nominee of the Republican Party is in the
best interest of the nation, but no offer or promise shall be made
to delegates that an appointment to office or other benefit can be
obtained from the Federal Government for any particular person
as a consequence of the votes or activities of such delegates in
the convention.
In connection with the attendance of various members of the Cabinet
at the 1976 Republican National Convention, care must be taken to
assure that appropriated funds are not used to conduct or support
political activities on behalf of a candidate or a political party.
TOTAL - LIBRARY GIVEN
-3-
While some of you may require that members of your staff
accompany you to the Convention to assist you in carrying out
your official duties, it is necessary that the use of such
personnel be strictly limited. Due to questions of appearance
and the limited availability of hotel accommodations in Kansas
City, it is requested thatyou plan to take not more than one such
staff member with you, exclusive of authorized security personnel.
In the case of staff members who are subject to the Hatch Act,
they are prohibited by law from participating or engaging in
any political campaign activity.
Rogers Morton has designated Stanton Anderson to coordinate
Convention activities for the President Ford Committee. Any
questions in this regard should be directed to Stan at 457-6470.
Your assistance is appreciated.
JAMES E. CONNOR
Secretary for the Cabinet
STATE 1. YORK
THE WHITE HOUSE
WASHINGTON
January 7, 1976
MEMORANDUM FOR
THE CABINET
SUBJECT:
Guidelines in Connection with the 1976.
Election Campaign
Following are guidelines to be followed by all members of the
Cabinet, as well as other appropriate Federal officials, in
connection with their participation in the 1976 Federal elections.
These guidelines are based upon relevant statutory prohibitions,
Executive Orders, rulings and proposed regulations by the
Federal Election Commission.
I. GENERAL PROHIBITIONS
The following restrictions on particular political
activities apply to all Federal employees:
A. Federal law prohibits the solicitation or receipt
of political contributions by a Federal official or
employee from any other Federal official or employee.
B. Federal law prohibits solicitation or receipt of
political contributions on Federal property.
In the event that campaign contributions are
received either from such persons or on Federal
property, such contributions must be promptly
returned with an appropriate explanation.
C. Federal law prohibits any direct or indirect promise
of appointment, employment, contract, or special
consideration for a governmental benefit as a
consideration, favor or reward for political activity
or support to a candidate or political party.
GERALD 1825 LIBRARY
- 2 -
D. Appropriated funds may not be used to conduct or
support political activities on behalf of a candidate
or political party.
II. HATCH ACT RESTRICTIONS
A. The Hatch Act prohibits all persons subject to its
provisions from participating or engaging in any
political campaign activity, either State or Federal,
on behalf of any candidate or political party. In
general, the heads of the Executive or Military
Departments, other officials appointed by the
President subject to Senate confirmation, and em-
ployees paid by the White House Office or the
Vice President's Office, are exempt from the
Hatch Act restrictions. Other Federal employees,
including NEA and Schedule C employees, are
subject to the Act; and the Act applies to them
even outside of working hours and while they are
on leave status.
B. "Hatched" employees may not assist in writing
political speeches, and may not be utilized in
advancing, conducting or managing a political
event or a candidate-related activity. PFC
personnel will be available to assist you in
connection with any such political activity. This
restriction does not apply to regular security
personnel present for the protection of the
participating official or to aides making advance
arrangements, unrelated to the event itself, for
official travel and activities. Although "Hatched"
employees may assist the official in going to and
from a political event, they must not take an
active role or participate in the event itself.
III. PERMISSIBLE POLITICAL ACTIVITIES
Following are guidelines for permissible political activities
on behalf of the President or the Republican Party by Cabinet
members and other officials not subject to the Hatch Act:
A. Although final allocation regulations will not be
available from the Federal Election Commission
STATE TORD LIBRARY
- 3 -
until later in January, the Commission has
informally indicated its approval of an allocation
formula which apportions travel expenses on
mixed official and political trips based upon the
relative periods of time spent on the two kinds
of activities. Accordingly, accurate records should
be kept which distinguish all time spent and direct
expenses incurred for political events from the
time and expenses incurred for official business.
Such records should then be sent to the PFC for
allocation of expenses on the basis of the relative
periods of time spent on political and bona fide
official activities. More specific guidelines
will be provided once the final allocation regulations
are available from the Federal Election Commission.
B. Permissible political activities include serving as
speaker, honored guest or sponsor for fundraising
or other political events. However, the participating
government official should not accept contributions
for the President, but should direct the contributor
to a PFC fundraising official. In connection with
particular events, the PFC will avoid singling out
for campaign support special interest groups or
organizations which are immediately concerned with
the functions of the department or agency represented
by the government official appearing at the event.
C. As a general rule, speeches before non-partisan
groups, such as a trade, labor, or professional
association, are official in nature. Each member
of the Administration should insure that official
activities and other non-political functions are not
and do not appear to involve political activities
for the benefit of or on behalf of any Federal
candidate. If candidate-related activities, including
extemporaneous remarks, are engaged in during
an official trip, the Federal election campaign laws
may require that a portion of the expenses incurred
for such trip shall be attributed to the candidate
and counted against the candidate's spending limits.
STATES YORK 1
- 4 -
However, this requirement does not preclude full,
fair and open discussion of national issues,
current conditions and trends, and existing or
proposed administrative or legislative programs
which are within the expertise of the speaker.
What it does preclude is advocacy of a candidate
for Federal office or making partisan political
comment about a candidate or political party.
Questions regarding the above guidelines or the
legality or propriety of any mixed official-political
activity should be directed to the Office of the
Counsel to the President. Advice regarding the
conduct of the campaign itself under the new
Federal election campaign laws should be sought
from the General Counsel to the President Ford
Committee.
JAMES E. CONNOR
SECRETARY TO THE CABINET
This
General Conned
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMEN AND BUDGET
WASHINGION, D
20503
MAR 2 - 1976
MEMORANDUM FOR:
PHIL BUCHEN
FROM:
JIM LYNN
This responds to your request for comments on the attached
memorandum concerning standards of conduct.
I think the memorandum is fine but agree that it needs
some editorial comment. I suggest insertion of the following
paragraph on the first page following the material quoted
from Executive Order 11222:
As we enter a Presidential election year, it is
especially important to assure that the conduct
of government business is beyond reproach. Offi-
cials in your departments should be aware of the
employee standards of conduct and specific
statutory prohibitions that are applicable to
such conduct in the awarding of governmental
contracts, grants and loans. The purpose of this
memorandum is to provide a central listing of the
various prohibitions under which each of your
Departments has been governed in this area.
STATE FDED LIBRARY
RECEIVED
THE WHITE HOUSE
WASHINGTON
FEB 12 39 AM '76
February 11, 1976
OFFICE OF
MANAGEMENT & BUDGET
MEMORANDUM FOR:
JIM LYNN
FROM:
PHIL BUCHEN
P.
Please give your comments on this initial draft of
the memorandum we discussed. I had thought of
adding to this straightforward compilation of the
applicable rules and statutes some editorial comment
that might avoid a tendency to policies which are
unnecessarily apolitical or as a matter of precaution
favor interests of a party not in control of the Executive
branch. However, I am at a loss to come up with
language that could not be misconstrued.
DIRECTOR'S
CORRESFONDENCE
Action to:
MR. Nichols
Heply inc
Dir
Dep
Control No:
Due Date:
0332
2-26
Info Copies:
SEAL R. FORD
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR
THE CABINET
SUBJECT:
Standards of Conduct and Statutory
Prohibitions Involved in Governmental
Contract, Grant and Loan Decisions
This memorandum summarizes employee standards of conduct and
specific statutory prohibitions that are applicable to such conduct
in the awarding of governmental contracts, grants and loans. It
provides a central listing of the various prohibitions under which
each of your Departments has been governed in this area.
Executive Order 11222 prescribes standards of ethical conduct for
government officers and employees. Section 201 (c) of the E. O.
directs Federal employees to avoid any action "which might result
in, or create the appearance of:
(1) using public office for private gain;
(2) giving preferential treatment to any organization or person;
(3) impeding government efficiency or economy;
(4) losing complete independence or impartiality of action;
(5) making a government decision outside official channels; or
(6) affecting adversely the confidence of the public in the
integrity of the Government."
Below is a description of each of the relevant statutory prohibitions:
18 U.S. C. § 201 prohibits the seeking or acceptance of bribes by
public officials. Section 201 (c) specifically prohibits any public
official or person selected to be a public official from corruptly
seeking or accepting anything of value for himself or herself or
for any other person or entity, in return for:
STATE 2. 1020 LIBRARY
-2-
"(1) being influenced in his [or her] performance of any offi-
cial act; or
"(2) being influenced to commit or aid in committing, or to
collude in, or allow, any fraud, on the United States; or
"(3) being induced to do or omit to do any act in violation of
his [or her] official duty. "
Section 201 (g) specifically prohibits any present or former public
official or any person selected to be a public official from seeking
or accepting anything of value for himself or herself "for or be-
cause of any official act performed by him [or her] or to be per-
formed" by him or her.
18 U.S. C. § 595 prohibits any Federal, state or local employee
from using his or her official authority derived from Federal loan
or grant programs to interfere with any Federal election. It shall
be unlawful for the above-mentioned employee
"
in connection with any activity which is
financed in whole or in part by loans or grants
made by the United States, or any department
or agency thereof,
...
[to use his or her] offi-
cial authority for the purpose of interfering with,
or affecting, the nomination or the election of any
candidate for the office of President, Vice Presi-
dent, Presidential elector, Member of the Senate,
Member of the House of Representatives, Delegate
from the District of Columbia, or Resident Com-
missioner, =
18 U.S. C. § 598 prohibits voting coercion by means of relief appro-
priations. This provision makes it illegal for a person to use any
part of any appropriation made by Congress for "work relief, relief,
or for increasing employment by providing loans and grants for
public works projects, " or to exercise or administer any authority
conferred by any appropriation act "for the purpose of interfering
with, restraining, or coercing any individual in the exercise of his
[or her] rights to vote at any election. 11
TOAG LIBRARY
-3-
18 U.S. C. § 600 prohibits the promise of a contract, employment,
appointment or compensation in exchange for political support. It
shall be unlawful for a person to promise
11
any employment, position, compensation,
contract, appointment, or other benefit, provided
for or made possible in whole or in part by any
Act of Congress, or any special consideration in
obtaining any such benefit, to any person as con-
sideration, favor, or reward for any political
activity or for the support of or opposition to any
candidate or any political party in connection with
any general or special election to any political
office, or in connection with any primary election
or political convention or caucus held to select
candidates for any political office,
It
18 U.S. C. § 601 prohibits the deprivation of employment or other
benefit under work relief or relief programs because of political
activity. It shall be unlawful for a person to deprive, attempt to
deprive, or threaten to deprive
"
any person of any employment, position,
work, compensation, or other benefit provided
for or made possible by any Act of Congress appro-
priating funds for work relief or relief purposes, on
account of race, creed, color or any political acti-
vity, support of or opposition to any candidate or
any political party in any election,
11
18 U.S. C. § 611 prohibits political contributions by Federal govern-
ment contractors or contractors in the process of negotiating
a
government contract, and prohibits the solicitation of such contri-
butions by government officials or other persons. It shall be unlaw-
ful for any person who is
11
entering into any contract with the United
States or any department or agency thereof either
TAB
for the rendition of personal services or furnishing
STATE
-4-
any material, supplies, or equipment to the United
States or any department or agency thereof or for
selling any land or building to the United States or
any department or agency thereof, if payment for
the performance of such contract or payment for
such material, supplies, equipment, land or building
is to be made in whole or in part from funds appro-
priated by the Congress, at any time between the
commencement of negotiations for and the later of
(1) the completion of performance under, or (2) the
termination of negotiations for, such contract or
furnishing of material, supplies, equipment, land
or buildings,
[to directly or indirectly make]
any contribution of money or other thing of value,
or
[to promise] expressly or impliedly to
make any such contribution, to any political party,
committee, or candidate for public office or to any
person for any political purpose or use;
= and
it shall be unlawful for any person to knowingly solicit any such
contribution.
R. FORD LIBRARY
MEMORANDUM
ALLOCATION OF CAMPAIGN EXPENSES - ADVOCATES
The Federal Election Commission (FEC) recently issued
its proposed regulations for the allocation of campaign
expenses. The PFC intends to abide by and follow the
Commission's recommendations in this area. Accordingly, set
forth below are the pertinent provisions of the regulations
with comment and example, where relevant:
$107.5 ALLOCATION OF EXPENSE BETWEEN CAMPAIGN
AND NON-CAMPAIGN-RELATED TRAVEL
"(a) All expenditures for campaign-related travel
paid for by a candidate from a campaign account or by
his or her authorized committee or by any other political
committee shall be reported.
(b) (1) Travel expenditures paid for by a candidate
from personal funds, or from a source other than a political
committee, shall constitute reportable expenditures if the
travel is campaign-related.
(2) Where a candidate's trip involves both
campaign-related and non-campaign-related stops, the
expenditure allocable for campaign purposes are reportable,
and are calculated on the actual cost-per-mile of the means
of transportation actually used, starting at the point of
origin of the trip, via every campaign-related stop and
ending at the point of origin.
(3) Where a candidate conducts any campaïgn-
related activity in a stop, the stop is a campaign-
related stop and travel expenditures made are reportable.
Campaign-related activity shall not include incidental
contacts.
(c) (1) Where an individual, other than a candidate,
conducts campaign-related activities on a trip, that portion
of the trip attributed to each candidate shall be allocated
on a reasonable basis.
(2) Travel expenses of a candidate's spouse and
family are reportable as expenditures only if the spouse
or family members conduct campaign-related activities.
*****
FORD LIBRARY
- 2 -
(e) Notwithstanding (2) above, the reportable expen-
diture for a candidate who uses government conveyance or
accommodations for travel which is campaign-related is the
rate for comparable commercial conveyancy or accommodation.
In the case of a candidate authorized by law or required
by national security to be accompanied by staff and equip-
ment, the allocable expenditures are the costs of facilities
sufficient to accommodate the party, less authorized or
required personnel and equipment. If such a trip includes
both campaign and non-campaign stops, equivalent costs are
calculated in accordance with paragraphs (b) and (c)
above." (Emphasis added).
Emphasis should be placed on the following aspects of this
provision:
I. ALLOCATION OF EXPENSES FOR THE PRESIDENT
A. General Rule
When the President conducts any campaign-related
activity at a stop, the stop is considered campaign-related and
all expenditures must be reported and are attributed to the
respective PFC expenditure limitation.
(1) Incidental political contacts are not con-
sidered campaign-related activity (e.g. small, unpublicized
political meetings).
B. Transportation Expenses
(1) Interstate transportation expenses for the
President which involve both campaign-related and official
activity are attributed to the PFC's national expenditure limi-
tation based on the cost-per-mile for comparable commercial
transportation or a pro rata share of the Air Force One expenses
starting at the point of origin of the trip, via every campaign-
related stop, and ending at the point of origin.
(2) All intrastate transportation expenses by
the President should be attributed to the individual state's
expenditure limitation.
C. Additional Expenses
(1) All other expenses by the President must be
attributed to the individual state's expenditure limitation.
h. FORD LIBRARY
- 3 -
II. INDIVIDUALS OTHER THAN THE PRESIDENT
A. General Rule
Individuals other than the President (e.g.,
advocates) who conduct both campaign-related and non-campaign-
related activity at a stop must reasonably allocate their
expenses on the basis of the time they spend at campaign-
related activity or some other manner of reasonable allocation.
B. Transportation Expenses
(1) Interstate transportation expenses by indi-
viduals other than the President which involve only campaign-
related activity must be attributed in toto to the PFC national
expenditure limitation.
(2) Interstate transportation expenses by indi-
viduals other than the Presidnet which involve both campaign-
related and non-campaign-related activity must be reasonably
alloated so that a portion of the expenses are attributed to
the PFC national expenditure limitation.
(3) Intrastate transportation expenses by indi-
viduals other than the President which involve only campaign-
related activity must be attributed in toto to the specific
state's expenditure limitation.
(4) Intrastate transportation expenses by indi-
viduals other than the President which involve both campaign-
related and non-campaign-related activity must be reasonably
allocated so that a portion of the expenses are attributed to
the specific state's expenditure limitation.
C. Additional Expenses
(1) All other campaign-related expenses by indi-
viduals other than the President must be attributed to the
individual state's expenditure limitation.
III. EXAMPLE OF ALLOCATION OF INTERSTATE TRAVEL EXPENSES
An advocate appears in Los Angeles as a speaker at an
official Chamber of Commerce dinner. He also represents the
President Ford Committee at a fundraising breakfast in San
Francisco the next day. Cumulatively, the advocate spends
twenty-four hours away from Washington, D. C., participating
in both official and PFC activities. The flight takes four
hours from Washington, D. C. to Los Angeles; another one hour
1.
SEALS
- 4 -
is spent in flight from Los Angeles to San Francisco, and
four hours returning to Washington, D. C. Ten hours are
spent in Los Angeles on official business at the Chamber
of Commerce dinner and with local officials. Five hours are
spent in San Francisco at the PFC fundraiser. The total
cost of the trip for the advocate is $1,000 which includes
the cost of transportation, meals and a room in Los Angeles.
Under the aforementioned FEC regulations, a reasonable portion
of this trip's expenses must be attributed to the President
Ford Committee's national and state expenditure limitations.
The following allocations would be appropriate:
A. 1. Official
a. Cost of airfare: D.C. to L.A.
$600
L.A. to D.C.
b. Cost of meals and room in L.A.
75
C. Cost of ground transportation
25
Subtotal
$ 700
2. PFC
a. National Expenditure Limitation
(1) Difference between L.A. to
D.C. and S.F. to D.C.
$ 80
b. California Expenditure Limitation
(1) Cost of airfare L.A. to S.F. 120
(2) Ground costs in S.F.
100
Subtotal
300
TOTAL
$1,000
B. 1. Total costs
$1,000
2. Percentage of total time devoted
to political activities (i.e. 5/24)
21%
3. Total costs attributed to political
activities
$ 210
4. Total costs attributed to official
activities
$ 790
SEAL R. FORD LIBRARY
- 5 -
C. Procedures for Payment and Reimbursement
If the primary purpose of a mixed official/political
trip is official (i.e., greater than 50% of the advocates time
to be devoted to official activities), the appropriate agency
should submit a TR in the normal manner for processing.
Following the trip, the PFC should be advised of the relative
time spent on political activities and the actual costs involved.
The PFC will promptly determine the appropriate allocation and
reimburse the Government as directed.
If the primary purpose of such a trip is political,
the PFC will arrange for appropriate tickets in advance and
reimburse the advocate for any additional expenses he may incur.
SERVICE R. FORD LIBRANY
July 8, 1976
MEMORANDUM FOR:
FROM:
WILLIAM J. BAROODY, JR.
SUBJECT:
Presidential Spokesmen's person's Briefing
Wednesday, July 14, 1976
You and top members of your Department (Agency) are invited to
participate in a Presidential Spokesmen's Briefing next Wednesday,
July 14, between 3:00 p.m. and 5:15 p.m. in the East Room at the
White House.
The purpose of this meeting is to bring together top Presidential
appointees and spokespersons with the President and top members
of his Administration to discuss major current policies and programs.
John Shlaes, my Director of White House Conferences, will be in
touch with your office to coordinate invitation lists. Invitees should
be limited to Schedule C and other excepted positions.
Should you have any thoughts in the meantime, please contact
Mr. Shlaes at 456-7090. I look forward to seeing you and other
members of your Department on Wednesday.
FORD & LIBRARY
THE WHITE HOUSE
WASHINGTON
July 19, 1976
MEMORANDUM FOR
THE CABINET
SUBJECT:
Guidelines in Connection with
the 1976 Election Campaign
On January 7, 1976, I sent members of the Cabinet and others a
memorandum on the same subject. The President has asked me
to reaffirm the guidance provided by that memorandum and to
review guidelines which should be applied with regard to delegates
(and alternates) to the Republican National Convention and in
regard to your attendance at the Convention.
First, every opportunity may be afforded the delegates to become
fully acquainted with this Administration's record and the
President's opinion and policies on issues of concern to them.
However, no official action or position on any matter by anyone
in the Administration shall be, directly or indirectly, offered,
promised or provided as consideration, favor or reward for
the support of any delegate to benefit the President's candidacy.
In the event a delegate has an interest in the outcome of a pending
or prospective procedure for employment, contract, grant, or
benefit from the Federal Government, no intervention with those
officials who are responsible for determining such action shall
be made by anyone on behalf of the President to control or affect
the results of that procedure as a means to influence the votes
or activities of the delegate. This restriction is not intended to
preclude normal requests, inquiries and reports regarding the
status of pending procedures, but these should be handled in
the same manner as they would for any other concerned citizen
and without affecting the results of the procedures.
LIBRARY
-2-
Second, delegates may be informed of the many reasons why
nomination and election of the President is in the best interests
of the nation, but no direct or indirect offer or promise shall
be made to delegates that an appointment to office or other
benefit can be obtained from the Federal Government for any
particular person, as a consequence of the votes or activities
of such delegates to the Convention.
Finally, in connection with the attendance of various members
of the Cabinet at the 1976 Republican National Convention, care
must be taken to assure that appropriated funds are not used to
conduct or support political activities on behalf of a candidate
or a political party. While some of you may require that
members of your staff accompany you to the Convention to
assist you in carrying out your official duties, the use of such
personnel must be strictly so limited. Moreover, due to
obvious questions of appearance and the limited availability of
hotel accommodations in Kansas City, it is requested that you
plan to take not more than one such staff member with you,
exclusive of authorized security personnel. It should again be
noted that, in the case of staff members who are subject to the
Hatch Act, they are, of course, prohibited by law from
participating or engaging in any political campaign activity.
Rogers Morton has designated Stanton Anderson to coordinate
Convention activities for the President Ford Committee. Any
questions in this regard should be directed to Stan at 457-6470.
Your assistance is appreciated.
Jahn
Secretary for the Cabinet
THE WHITE HOUSE
WASHINGTON
July 12, 1976
MEMORANDUM FOR
THE CABINET
SUBJECT:
Guidelines in Connection with
the 1976 Election Campaign
On January 7, 1976, I sent members of the Cabinet and others a
memorandum on the same subject. The President has asked me
to reaffirm the guidance provided by that memorandum and to
review guidelines which should be applied with regard to delegates
(and alternates) to the Republican National Convention and in
regard to your attendance at the Convention.
First, every opportunity may be afforded the delegates to become
fully acquainted with this Administration's record and the
President's opinion and policies on issues of concern to them.
However, no official action or position on any matter by anyone
in the Administration shall be, directly or indirectly, offered,
promised or provided as consideration, favor or reward for
the support of any delegate to benefit the President's candidacy.
In the event a delegate has an interest in the outcome of a pending
or prospective procedure for employment, contract, grant, or
benefit from the Federal Government, no intervention with those
officials who are responsible for determining such action shall
be made by anyone on behalf of the President to control or affect
the results of that procedure, as a means to influence the votes
or activities of the delegate. This restriction is not intended to
preclude normal requests, inquiries and reports regarding the
status of pending procedures, but these should be handled in
the same manner as they would for any other concerned citizen
and without affecting the results of the procedures.
GERATE YORD LIBRARY
-2-
Second, delegates may be informed of the many reasons why
nomination and election of the President is in the best interests
of the nation, but no direct or indirect offer or promise shall
be made to delegates that an appointment to office or other
benefit can be obtained from the Federal Government for any
particular person, as a consequence of the votes or activities
of such delegates to the Convention.
Finally, in connection with the attendance of various members
of the Cabinet at the 1976 Republican National Convention, care
must be taken to assure that appropriated funds are not used to
conduct or support political activities on behalf of a candidate
or a political party. While some of-you may require that
members of your staff accompany you to the Convention to
assist you in carrying out your official duties, the use of such
personnel must be strictly so limited. Moreover, due to
obvious questions of appearance and the limited availability of
hotel accommodations in Kansas City, it is requested that you
plan to take not more than one such staff member with you,
exclusive of authorized security personnel. It should again be
noted that, in the case of staff members who are subject to the
Hatch Act, they are, of course, prohibited by law from
participating or engaging in any political campaign activity.
Rogers Morton has designated Stanton Anderson to coordinate
Convention activities for the President Ford Committee. Any
questions in this regard should be directed to Stan at 457-6470.
Your assistance is appreciated.
James E. Connor
Secretary for the Cabinet
THE WHITE HOUSE
WASHINGTON
Barry,
Whatever is decided, Jim
says he is only going to send one memo.
Eleanor
7/13
President Ford Committee
1828 1 STREET, N.W., SUITE 250, WASHINGTON, D.C. 20036 (202) 457-6400
July 12, 1976
MEMORANDUM
TO: Dr. James E. Conner
Secretary to Cabinet
The White House
FROM: Bob Visser
Tim Ryan
RRV
RE: Cabinet Officials Convention Travel and Expenses
Attached is a copy of a memorandum to the Cabinet
regarding Cabinet Officials Convention Travel and Expenses.
It is our feeling that you, as Secretary to the Cabinet,
should forward this to the Cabinet members and other Executive
Department officials. This memorandum has been coordinated
with Barry Roth and Stan Anderson.
a. TORO LIBRARY
CABINET OFFICIALS CONVENTION
TRAVEL AND EXPENSES
The purpose of this memorandum is to summarize the law
applicable to expenditures made by Cabinet officials and their
aides regarding travel to and living expenses at the Republican
National Convention. In general, expenditures by any individual
engaged in political activity on behalf of a clearly identified
candidate are considered either (1) an expenditure by the PFC,
(2) statutorily exempt expenditures by such persons or (3) "in-kind"
contributions to the President Ford Committee (PFC).
The expenditure of funds for travel and subsistence by such
individuals may be handled in one of three ways:
First, a Cabinet official or aide not subject to the Hatch
Act may absorb the cost of travel expenses, including transporation,
food and lodging, in Kansas City up to $500.00, as set forth in the
Federal Election Campaign Act, as amended. In particular, Section
431 (e) (5) (D) of Title 2, United States Code, states that the term
"contribution" does not include
"
any unreimbursed payment
for travel expenses made by an individual who on his own behalf
volunteers his personal services to a candidate." A parallel
exclusion from the definition of "expenditure" is set forth in
Section 431 (f) (4) (E). Of particular importance is the fact that
such unreimbursed travel expenses are not chargeable to the PFC's
state or national expenditure ceiling. Moreover, such expenditures
are not required to be reported to the Federal Election Commission,
although the PFC has recommended that individuals keep records of
all such expenses. The exclusion, however, extends only to the
cumulative value of expenditures by any person on behalf of each
candidate which does not exceed $500.00 with respect to any election.
In other words, any person may absorb up to $500.00 of transportation
and related subsistence on behalf of any candidate during the primary
election period. During the general election, each individual will
have another $500.00 to absorb under this provision of the election
laws.
Second, if an individual in this category has already absorbed
the $500.00 allowable under the law, an expenditure for transportation
or subsistence or other campaign related expenses incurred on behalf
of the candidate would become an "in-kind" contribution to that
candidate and, therefore, such expenditure would be limited to the
$1,000 individual contribution limitation applicable to each federal
candidate per election (2 U.S.C. §441a. (a) (1)). In addition, this
"in-kind" contribution would be considered an expenditure by the
PFC and would be applied to the PFC's national expenditure limitation.
Third, the PFC could reimburse the Cabinet officials for his
or her travel and subsistence expenses but such payments would also
be applied to the PFC's national expenditure ceiling.
FORD
Cabinet Officials Convention
Travel and Expenses
Page Two
In conclusion, we have been informally advised by the
legal staff of the Federal Election Commission (FEC) and have
testified before the Commission that a "personal benefit" method
of calculating the $500.00 exclusion is acceptable under the
Federal Election Campaign Act. Thus, if an individual flies first
class to Kansas City for the purpose of engaging in political
activity and then rents a suite of rooms for his or her own
accommodations, the proper expense applied to the $500.00 exclu-
sion would be a coach fare and the normal cost of a hotel room
and not the total actual costs incurred. Any additional expense
is only for the "personal benefit" of the traveler or guest and
the benefit of such accommodations accrues only to that individual,
not the candidate. On the other hand, the "personal benefit"
approach may not be utilized when the purpose of the expenditure
(e.g., a hotel suite) is to be utilized for candidate related activity
and not merely the personal use and comfort of the individual.
July 12, 1976
R. FORD LIBRARY
THE WHITE HOUSE
WASHINGTON
September 24, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
P.W.B.
PHILIP BUCHEN
DICK PARSONS
SUBJECT:
Hatch Act
This is to advise you that we have no legal
problem with members of the staff of the
Domestic Council continuing to perform their
normal and customary duties on behalf of the
President, including canvassing the various
departments and agencies of the Federal
Government to determine those issues of
Federal concern which the President might
encounter in traveling around the country.
We would not think it appropriate, however,
for those members of the staff of the
Domestic Council who are not paid from
appropriations to the President to contact
persons from outside the Federal Government
(such as State or local officials or poli-
tical party chairmen) for the purpose of
identifying issues of local sensitivity or
concern.
DERALD LEVERITY FORD
Buchen FYI
THE WHITE HOUSE
WASHINGTON
September 29, 1976
MEMORANDUM FOR:
James A. Baker
Chairman
President Ford Committee
SUBJECT:
Campaign-Related Activities Performed
by Members of the White House Staff
This memorandum is in followup to our recent conversations
concerning campaign-related activities performed by White
House staff members and the impact of Federal statutes regu-
lating elections and the conduct of Federal employees on
such activities.
As you are aware, there has been no definitive ruling con-
cerning the extent to which publicly paid staff members of
incumbent Federal candidates may undertake campaign-related
activities. The Federal Election Commission purposely
avoided deciding this issue in its decision dismissing, in
effect, complaints made regarding Secretary Morton's joint
role as Counsellor to the President and as the White House
liaison with the President Ford Committee. 1 However, there
are several key factors which must be examined in determining
the propriety of White House staff members performing campaign-
related activities. First, whether Federal funds are being
used for purposes other than those for which the funds were
appropriated. Second, whether staff activities may be con-
sidered to be either contributions or expenditures under
the Federal Election Campaign Act, as amended, 2 U.S.C. 431,
et seq. With regard to this latter factor, comments should
be sought from the PFC General Counsel. However, it would
appear from the discussion that follows that no contribution
or expenditure problem is raised.
A. Relevant provisions of law governing the
activities of persons paid by the White
THE FORD LIBRARY
House Office
The relevant provisions of the current appropriation
for the White House Office are found in the Executive Office
Appropriations Act, 1977, Title III of P.L. 94-363. The
1 In the Matter of the President Ford Committee (Morton),
MUR 077 (76), dec'd., July 26, 1976. (Attached at Tab A)
-2-
controlling language of this Act is as follows:
"For expenses necessary for the White House
Office as authorized by law, including not
to exceed $3,850,000 for services as author-
ized by 5 U.S.C. 3109, at such per diem rates
for individuals as the President may specify
and other personal services without regard to
the provisions of law regulating the employ-
ment and compensation of persons in the Govern-
ment service
"
[emphasis added]
Appropriations to the White House Office for prior fiscal
years contain similar provisions. While there is no per-
manent authorization for the entire White House Office, cer-
tain permanent provisions contained in Title 3 of the United
States Code indicate that the President is to have consider-
able latitude in the assignment of duties to the members of
his staff. For example, 3 U.S.C. 106 authorizes six admin-
istrative assistants for the President, and further states
that "
Each such administrative assistant shall perform
such duties as the President may prescribe.' Section 105
of this Title authorizes "
eight other secretaries or
other immediate staff assistants in the White House Office."
By inference, it would appear Congress intended that the
duties of these eight assistants, as well as all other per-
sons paid from the appropriations to the White House Office,
be governed by the standard stated in Section 106, i.e.,
"such duties as the President may prescribe." While this
discretionary authority in assigning responsibilities to
members of the White House staff is extremely broad, we do
not suggest that this discretion is unlimited. These statutes
must be construed to require that employees devote at least
some significant portion of their time to matters which are
official in nature.
In addition to the above-referenced provisions of law,
those of the so-called Hatch Act, 5 U.S.C. 7321, et seq.,
governing political activities by Executive Branch employees
are also relevant. Section 7324 (a) (2) of Title 5 provides
that an Executive Branch employee may not "
take an active
part in political management or in political campaigns."
However, employees "paid from the appropriation for the
Office of the President" are exempted from this proscription
(5 U.S.C. 7324 (d) ) This appears to be Congressional recog-
nition of the traditional and necessary role of members of
the White House staff in political activities, and a clear
statement of Congressional intent to allow such activities
by employees of the White House Office. Moreover, this is
consistent with the political role allowed to the members of
the personal staff of a Senator or Congressman.
-3-
In Public Citizen and Ralph Nader V. William E. Simon, 2
plaintiffs asserted that campaign activities performed by
certain members of the White House staff during the 1972
Presidential election required reimbursement to the Treasury
for at least a portion of their salary for the period spent
on campaign-related activities. Plaintiffs' suit was brought
on the basis that, as taxpayers, they had been injured by the
expenditure of appropriated funds in violation of 31 U.S.C.
628 which provides:
"Except as otherwise provided by law, sums
appropriated for the various branches or
expenditures in the public service shall
be applied solely to the objects for which
they are respectively made, and for no
others."
The suit was dismissed by the District Court for lack of
standing and affirmed by the Court of Appeals, in a 2-1 deci-
sion. Although Circuit Judges Leventhal and MacKinnon re-
fused to look beyond the issue of standing, Judge McMillan
(United States District Judge for the Western District of
North Carolina), dissenting, indicated he would have found
for the plaintiffs on the question of standing. However,
his view on the merits was that White House Office employees
could properly perform at least some campaign activities.
He stated, in part:
"In summary, I would find that plaintiffs
have standing to bring the suit and that
the case should be decided on the merits
in favor of those defendants who may be
covered by the express exemptions under
5 U.S.C. 7324(d), but against any defen-
dants not expressly so covered, including
any person whose salaries come from sources
other than 'appropriations for the Office
of the President.'
Similar questions concerning the performance of campaign-
related activities by members of the White House staff were
raised in complaints to the Federal Election Commission
relative to the appointment of Secretary Morton as Coun-
sellor to the President. Although the actual decision of
the Commission was limited to a finding that there was no
reason to believe that any violation of the Federal Elec-
tion Campaign Act had been raised by the complaints, the
2D.D.C., Civil Action No. 2280-72, dec'd Sept. 30, 1974,
aff'd., U.S. App. D.C. (1976), No. 74-2025, dec'd.
June 25, 1976.
-4-
General Counsel's Report to the Commission on these com-
plaints and a separate statement issued by Vice Chairman
Harris offer further clarification of the law in this
regard.
The General Counsel construed the Hatch Act exemption for
employees "paid from the appropriation for the Office of
the President" to permit " an exempt employee to engage
in campaign-related activities in non-business hours."
However, he proceeded to note that " there is no standard
definition of ordinary business work day for a person at
Mr. Morton's level," i.e., Presidential appointees. 3
On the other hand, Vice Chairman Harris took the position
that Congress never intended the Federal Election Commission
to have the responsibility for monitoring political activity
of Federal employees. With respect to the general coverage
of the Hatch Act, this is the responsibility of the Civil
Service Commission. He also noted that the CSC has the
general responsibility to enforce Executive Order 11222,
"Prescribing Standards of Ethical Conduct for Government
Officers and Employees. In particular, he indicated that
Section 204 of this Order may be applicable to campaign
activities performed by Federal employees in that it
provides:
"An employee shall not use Federal property
of any kind for other than officially-
approved activities."
However, as long as campaign activities are undertaken
without additional cost to the Government, it would appear
that there is no violation of this provision.
In addition, Mr. Harris noted that the General Accounting
Office would have the authority to deal with questions con-
cerning campaign activities by Federal employees on the
basis of 31 U.S.C. 628. Finally, he stated that personal
services which (a) are volunteered and (b) in addition to
those required as part of the employee's normal work day are
amended.
not in violation 4 of the Federal Election Campaign Act, as
B. Policy of the Ford White House
While the above discussion of the law does not offer
guidelines setting forth absolute limits on campaign activi-
ties which can be performed by members of the White House
3 See 5 U.S.C. 6301, et seq.
LEVERY
4 See 2 U.S.C. 431 (e) (5)
-5-
staff, the policy of the White House in this Administration
has long been on the public record. In his letter to the
Federal Election Commission of September 3, 1975 Philip
Buchen, Counsel to the President, stated the following:
"No precise dividing line now exists, nor is
one likely to be drawn, which clearly indi-
cates when such employees [the personal staffs
of incumbent candidates for Federal office] are
performing official duties and when those duties
are political. So long as these employees expend
a substantial majority (an average in excess of
forty hours per week) of their time on official
duties, there is no need to attribute any por-
tion of the salaries of such employees to a
political committee."
This has commonly been referred to as the forty-hour rule,
and was discussed by the FEC in dismissing the Morton com-
plaints. Moreover, the FEC's proposed regulations govern-
ing voluntary personal services clearly recognize the general
validity of this approach. While these regulations would not
necessarily control the activities of Federal employees, by
analogy, they effectively moot any questions concerning the
activities currently performed by exempt employees. In
particular, Section 100.4 (a) (5) of the proposed regulations
provides that there is no contribution to a campaign when
compensation is paid to an employee:
" (i) (A) who is paid on an hourly or salaried basis;
(B) who is expected to perform duties for an employer
for a particular number of hours per period; and
(C) who engages in political activity during what
would otherwise be a regular work period; if
the taken or released time is made up or com-
pleted by that employee within a reasonable
period; or
(iii) where the time used by the employee to engage
in political activity is bona fide, although
compensable, vacation time or other earned
leave time. [emphasis added]
Accordingly, there is no question but that employees can
properly engage in campaign-related activities as long as
they devote at least forty hours per week, on an average
5 At Tab B
-6-
basis over a reasonable time period, to their official
Government duties.
Even with the proposed FEC regulations, the law governing
the activities of employees on the public payroll has yet
to be fully interpreted. The questions that we now face
in this regard are ones of first impression for which we
are most likely setting the standard for other office hold-
ers to follow in the future. Our use of the so-called forty-
hour rule appears to be in full compliance with the law as
it now stands, particularly in view of the transfer to the
PFC's roles of personnel whose duties are expected to be
primarily campaign-related rather than official in nature
for the period through the election. Persons so transferred
include those working on the Advocates Program, advance
personnel, and others in similar situations.
In addition, the Counsel's Office has met with other members
of the White House staff and reviewed the duties of these
officials and their staffs. As described to us, we have
found that such staff members are devoting substantial por-
tions of time, consistent with the above discussion, on
matters which are official in nature, and thus in accord
with even the most narrow readings of the FEC regulations
and its decision on the Morton complaints.
It is expected that these staff members will continue to
perform substantial official duties through the election,
although the amount of time each week will vary. In the
event it is called to our attention that White House Office
employees do assume campaign duties which do not allow them
to continue to devote substantial amounts of time to official
duties, we will reexamine with you whether corrective steps
should be taken, such as the transfer of the employee to the
roles of the PFC. Moreover, we are taking steps to assure
that members of the senior staff are fully aware of the
responsibility that is placed on each of them and their
staffs in continuing to perform official duties. We are
also reminding these employees that questions in this regard
are to be raised immediately with this office.
I trust that this is responsive to your concern that we
take all practical steps to ensure that the President's
campaign is conducted in accord with the highest ethical
and legal standards, and that questions concerning the
activities of the White House staff should not even be
raised.
Edward C. Schmults
Deputy Counsel to the President
JAMES C.CONRAD 374-3956
GARY C. WITT 324- 3953
Investigation is being conducted at the specific re-uest of
the Department of Justice, to ascert-in information concerning the
possible use of White House facitities for political purposes. and whether
ctivities might involve X possible viol-tion of 2USC 434 and 441a(b).
as
Following -ctivities have been -lleged/Fevors and entertainment
to Delegates solected to RNC in possible viol-tion of election lews.
6/23/76-Visit by Bobby Shelton from Gaffney, SC. to WH
(g)
7/3/76-Ro1nh Dial-cio of NY received from PFC three tickets
to USS Forrestal Reviewing Stand for Topsail in NY
7/7/76- Richard 11. Rosenboum of NY invited to WH dinner
for Queen Elizabeth
7/15/76- Willi-m O. Forbes of Va. attended WH dinner for
West German Ch.ncellor Schmidt
7/19/76- NJ Delegates entertained at WH
7/22/76- NY Delegates entertained at WH with food and drinks
7/25/76-Md. Delegates invited to WH
7/28/76-C₂lviu Smith from Va. at WH.
7/4-8/4/76-Virginia L.mne of Va. visited WH three times
8/4/76- Va. Delegation at WH.
Did the committee Day for expenses incurred in connection
with bringing convention delegates to the VH and their entertainment
there, if any. If not, who was responsible for such expenditure.
TONDO & LIBRARY
The Honorable Philip Buchen
Counsel to the President
THE WHITE HOUSE
WASHINGTON
October 1, 1976
MEMORANDUM FOR
THE CABINET
SUBJECT:
Travel by Advocates
In order to assure full compliance with the letter and spirit
of the new campaign laws, full responsibility for the Advocates
Program has been assigned to the President Ford Committee.
In this regard, the following rebuttable presumptions have
been established to guide both you and the President Ford
Committee through the campaign period with respect to the
scheduling of travel by the Advocates and the payment of
expenses related thereto:
1. All public appearances by the Cabinet members and
other government officials who participate in the Advocate
Program after the nomination will be considered candidate
related in nature, and expenses will be paid by the
President Ford Committee, except in the case of official
activities scheduled by the respective Agency prior to
August 19, 1976; and
2. All public appearances by such Advocates after
October 16, 1976, including those official activities
scheduled by the respective Agency prior to August 19, 1976,
will be considered candidate related in nature and expenses
will be paid by the President Ford Committee.
Any questions concerning determinations with regard to whether
an activity is official, thereby overcoming the above presumptions,
will be answered by the Office of the Counsel to the President.
These guidelines are in no way meant to interfere with the
performance of your official duties and responsibilities. However,
STATE FORD
- 2 -
as you are aware, the new Federal election laws have placed
new constraints upon the conduct of this election. These
guidelines have been developed to eliminate even the slightest
question of the President's intent to comply fully with the spirit
and the letter of that law. Accordingly, we very much appreciate
your continued cooperation in this regard.
One
STATE
LIBRARY