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B-201129 1 (1980-11-25)

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B-201129


COMPT ROLLER GENERAL OF THE UNITED STATES
           WASHINGTON D.C. 20548




                              November 25, 1980


The Honorable Howard W. Cannon
Chairman, Committee on Commerce,
   Science and Transportation
United States Senate


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  Dear Mr. Chairman:                                                        -

       Your letter of October 29, 1980, raises questions concerning   DLAO)S379
[appointments to the Railroad Accounting Principles Boardjestablished
/by Title III of the Staggers Rail Act of 1980, Pub. L. 96-448. The
isix Board members, to be appointed by the Comptroller General as
  chairman, are required by 49 U.S.C. 11161(a)(3), as added by that act,
  to be well qualified for such position by virtue of experience in or
  knowledge of rate regulation, accounting or cost determinations.
  Given this requirement, and because the law requires five of the six
  Board members to be appointed from sectors of the transportation
  industry and from specified professions, you note the possibility that
  persons actively engaged in Interstate Commerce Commission (ICC) rate ,6C.OOO'
  proceedings may be recommended for appointment. You ask whether such
  an appointment would pose conflicts of interest problems, either now
  or after such person has served on the Board.

       At the outset, we must point out that the Attorney General has
  responsibility for enforcing the provisions of Title 18 of the U.S.
  Code pertaining to conflicts of interest and that the views of this
  Office are advisory only.

       Subsection 11161(a)(1) of Title 49, as added by the Staggers
  Rail Act of 1980, establishes the Railroad Accounting Principles Board
  within and responsible to the legislative branch of the Federal
  Government. Because the Board is within the legislative branch, its
  members would not appear to be subject to several of the more signif-
  icant conflicts of interest provisions contained in Chapter 11 of
  Title 18 of the U.S. Code or to the Standards of Ethical Conduct for
  Government Officers and Employees,, Executive Order 11222. They would
  possibly be subject to conflicts of interest restrictions promulgated
  within the legislative branch for application to its officers and
  employees.







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