HRC and State Dept special designation

SPECIAL GOVERNMENT EMPLOYEES ARE EXEMPT FROM CERTAIN STATUES RELATING TO OUTSIDE EMPLOYMENT, EARNED INCOME, AND FUNDRAISING ACTIVITIES U.S. Office Of Government Ethics: “Some Ethics Provisions That Apply To Executive Branch Employees Apply Differently To An Employee Who Qualifies As A ‘Special Government Employee’ (SGE), Or Do Not Apply At All.” [U.S. Office of Government Ethics, accessed 3/10/15] U.S. Office Of Government Ethics: Congress Created The Special Government Employee Designation In 1962 When It “Determined That The Government Cannot Obtain The Expertise It Needs If It Requires Experts To Forego Their Private Professional Lives As A Condition Of Temporary Service.” “Congress created the SGE category in 1962 when it revised the criminal conflict of interest statutes. Congress recognized the need to apply appropriate conflict of interest restrictions to experts, consultants, and other advisers who serve the Government on a temporary basis. On the other hand, Congress also determined that the Government cannot obtain the expertise it needs if it requires experts to forego their private professional lives as a condition of temporary service. Since 1962, the SGE category has been used in a number of statutes and regulations as a means of tailoring the applicability of some restrictions.” [U.S. Office of Government Ethics, accessed 3/10/15] U.S. Office Of Government Ethics: A Special Government Employee’s “Agency Can Use Special Waiver Provisions To Resolve Financial Conflicts Of Interest Arising Under…A Criminal Conflict Of Interest Statue.” “An SGE’s agency can use special waiver provisions to resolve financial conflicts of interest arising under 18 U.S.C. § 208 (a criminal conflict of interest statute prohibiting an employee from participating in any particular Government matter affecting personal or ‘imputed’ financial interests).” [U.S. Office of Government Ethics, accessed 3/10/15] U.S. Office Of Government Ethics: A Special Government Employee Is Not Covered By Statues “Prohibiting The Supplementation Of Government Salary” Or “Limiting Outside Earned Income And Restricting Certain Outside Employment.” “An SGE is not covered by 18 U.S.C. § 209 (a criminal conflict of interest statute prohibiting the supplementation of Government salary). An SGE is not covered by 5 U.S.C. app. 4 §§ 501 or 502 (civil statutes limiting outside earned income and restricting certain outside employment and affiliations).” [U.S. Office of Government Ethics, accessed 3/10/15] U.S. Office Of Government Ethics: “A Regulatory Provision Concerning Fundraising…Applies Differently” To Special Government Employees. “5 C.F.R. § 2635.808 (a regulatory provision concerning fundraising) applies differently to SGEs.” [U.S. Office of Government Ethics, accessed 3/10/15] New York Times: The Law Authorizing Specially Designated Employees “Was Established To Give Agencies The Flexibility…To Draw On The Skills Of Specialists In Various Fields Who Are Unable Or Unwilling To Leave Their Jobs And Go To Work For The Government.” “One issue concerns the original intent of the law authorizing federal agencies to hire special government employees. Experts say the law was established to give agencies the flexibility, usually on a temporary basis, to draw on the skills of specialists in various fields who are unable or unwilling to leave their jobs and go to work for the government.” [New York Times, 8/19/13] New York Times: Grassley Sent Major Government Agencies Letters Asking Them “To Explain The Criteria They Use To Hire Special Government Employees.” “Late last week, Mr. Grassley said in a letter to the State Department that Ms. Abedin’s area of expertise — ‘advising and participating in planning for the secretary’s schedule and travel’ — did not appear to qualify her for the status of special government employee. Mr. Grassley also reiterated his original questions…Mr. Grassley also sent other major agencies throughout the government letters asking them to explain the criteria they use to hire special government employees.” [New York Times, 8/19/13] GRASSLEY PUSHED FOR A RENEWED LOOK INTO SECRETARY CLINTON’S USE OF SPECIAL DESIGNATIONS ALLOWING HER STATE DEPARTMENT AIDES TO PURSUE PRIVATE SECTOR WORK

Washington Post: Grassley “Questioned Clinton’s Use Of A Program That Allowed Some Political Allies To Work For The Government While Pursuing Private-Sector Careers.” “Sen. Charles E. Grassley (R-Iowa), who heads the Judiciary Committee, had previously questioned Clinton’s use of a program that allowed some political allies to work for the government while pursuing private-sector careers.” [Washington Post, 3/9/15] Washington Post: “Grassley And Other Critics Have Said Clinton’s Use Of The Special Employee Program Appeared Unusual.” [Washington Post, 3/9/15] Washington Post: “Critics Say Abuse Of The [Special Employee Designation] Program Could Give Private-Sector Firms Unfair Access To Government Information And Internal Deliberations.” [Washington Post, 3/9/15] Washington Post: Grassley Said That Some Clinton Aides “Were State Department Employees Who Launched Secondary Careers In The Private Sector While Remaining Tied To The Department.” “Some recipients were political advisers with limited State Department expertise. Others, Grassley said, appeared to have turned the program on its head: Instead of being outside experts brought in to assist the government, they were State Department employees who launched secondary careers in the private sector while remaining tied to the department.” [Washington Post, 3/9/15] Grassley: “The Public’s Business Ought To Be Public With Few Exceptions…When Employees Are Allowed To Serve The Government And The Private Sector At The Same Time And Use Private Email, The Employees Have Access To Everything And The Public, Nothing.” [Washington Post, 3/9/15] Washington Post: Grassley Said He Will Press The State Department In The Coming Weeks ‘To Answer For Any Blurring Of The Lines Between Public And Private Service And Any Concealing Of The Blurred Lines Through Private Email.’” [Washington Post, 3/9/15] Washington Post: A Government Accountability Office Review Of The Special Designation Program Was In Progress, And As Of 2015 “No One Knows How Widely The Program Is Used Across The Government.” “No one knows how widely the program is used across the government. Grassley last year asked the Government Accountability Office to conduct a review. The assessment is not complete, but in the meantime, Grassley has focused his attention on Clinton and some of those who received the special designation under her leadership.” [Washington Post, 3/9/15] CLINTON SPOKESMEN SAY HER USE OF SPECIAL DESIGNATION FOLLOWED RULES Washington Post: “Spokesmen For Clinton And The State Department Say Her Use Of The [Special Designation] Program Was Appropriate And Followed Government Rules.” [Washington Post, 3/9/15] Washington Post: Clinton Spokesman Merrill On Grassley’s Claims That Clinton Misused State’s Special Employee Designation Program: “With All Due Respect, We Disagree.” “Asked to respond directly to Grassley’s concerns that Clinton may have misused the program, Clinton spokesman Nick Merrill replied by e-mail: ‘With all due respect, we disagree.’” [Washington Post, 3/9/15] SIX OF CLINTON’S POLITICAL AIDES WERE GRANTED SPECIAL DESIGNATION AT THE STATE DEPARTMENT Washington Post: “State Department Records Show That A Half-Dozen Of Clinton’s Political Allies Were Granted The Special Designation During Her Tenure.” “State Department records show that a half-dozen of Clinton’s political allies were granted the special designation during her tenure. Not all of them received government salaries. But critics say abuse of the program could give private-sector firms unfair access to government information and internal deliberations.” [Washington Post, 3/9/15]

Washington Post: Not All Of “Clinton’s Political Allies” Who Were Given A Special Designation At The State Department Received Government Salaries. “State Department records show that a half- dozen of Clinton’s political allies were granted the special designation during her tenure. Not all of them received government salaries. But critics say abuse of the program could give private-sector firms unfair access to government information and internal deliberations.” [Washington Post, 3/9/15] Washington Post: “More Than 100 People, Most With Expertise In Niche Areas Of Science And Global Affairs, Received [Special] Designation Each Year” Under Secretary Clinton. [Washington Post, 3/9/15] Washington Post: Several News Organizations “Learned The Extent To Which Hillary Clinton Used The [Special Designation] Program” Under The Freedom Of Information Act. “Through a request under the Freedom of Information Act, several news organizations, including The Washington Post, have since learned the extent to which Hillary Clinton used the program.” [Washington Post, 3/9/15] Washington Post: “A Former Campaign Manager, A Longtime Legal And Personal Adviser, A Former House Member Now Affiliated With A Group Backing A Clinton Presidential Bid, [And] A Former Pollster” Were Granted Special Designation Under Clinton. [Washington Post, 3/9/15]  Clinton Allies Granted Special Designation Included Huma Abedin, Maggie Williams, Jeremy Rosner, Jonathan Prince, Kathleen Kennedy Townsend, And Cheryl Mills. “Aside from Abedin, Clinton political allies who were granted the special status included Maggie Williams, Clinton’s 2008 campaign manager; Jeremy Rosner, a former Clinton pollster; Jonathan Prince, a speechwriter for Bill and Hillary Clinton; Kathleen Kennedy Townsend, a former Maryland lieutenant governor who is on the board of American Bridge, a left-leaning political operation that has defended Hillary Clinton against partisan attacks; and Cheryl Mills, a former White House deputy counsel and longtime adviser to Hillary Clinton.” [Washington Post, 3/9/15] Washington Post: “Huma Abedin, A Clinton Confidante And Adviser Who Was Granted The Special Designation, Also Used The Private E-Mail System” Used By Secretary Clinton. “Grassley had sought e-mails and other documents from the State Department. But he didn’t know until last week that Clinton was exclusively using a private e-mail account that could contain relevant information about her use of the so-called ‘special government employee’ program. Huma Abedin, a Clinton confidante and adviser who was granted the special designation, also used the private e-mail system.” [Washington Post, 3/9/15]  Washington Post: In 2013, “It Became Public That Abedin Was Being Paid By The State Department While Also Working For An International Consulting Firm With Close Ties To Bill And Hillary Clinton.” “Questions about Clinton’s use of the special program were first raised in 2013, when it became public that Abedin was being paid by the State Department while also working for an international consulting firm with close ties to Bill and Hillary Clinton.” [Washington Post, 3/9/15]  Washington Post: “In The Letter Abedin Wrote To The State Department In 2013, She Said Her Work At The Consulting Firm Teneo Was Unrelated To Anything Involving The Department.” [Washington Post, 3/9/15] New York Times: Three Months After State Department Officials Described Abedin’s Special Designation As “Nothing Unusual…Questions About The Arrangement Persisted” And Basic Information About Her Employment Situation Had Not Been Released. “When news surfaced in May that the State Department had approved an arrangement that allowed Huma Abedin, a top adviser to Secretary of State Hillary Rodham Clinton, to take on work for private clients, officials at the department described it as nothing unusual. But three months later, questions about the arrangement persist, and the department has declined to provide some basic information about Ms. Abedin’s situation and those of other State Department employees who may have been given similar status.” [New York Times, 8/9/13] New York Times: The State Department Has Declined To Say What Role Mrs. Clinton Played In Approving The Arrangement By Which Huma Abedin Worked For The Clinton Foundation, The State Department, And Teneo Concurrently. “Ms. Abedin, 37, a confidante of Mrs. Clinton’s, was made

a “special government employee” in June 2012. That allowed her to continue her employment at State but also work for Teneo, a consulting firm, founded in part by a former aide to President Bill Clinton, that has a number of corporate clients, including Coca-Cola. In addition, Ms. Abedin worked privately for the Clinton Foundation and for Mrs. Clinton personally…The State Department has declined to say what role Mrs. Clinton played in approving the arrangement.” [New York Times, 8/9/13] New York Times: “Abedin Has Not Disclosed How Much She Was Paid By Teneo, The Clinton Foundation Or Mrs. Clinton” During A Period In Which She Worked For All Three Entities. “Ms. Abedin, 37, a confidante of Mrs. Clinton’s, was made a “special government employee” in June 2012. That allowed her to continue her employment at State but also work for Teneo, a consulting firm, founded in part by a former aide to President Bill Clinton, that has a number of corporate clients, including Coca- Cola. In addition, Ms. Abedin worked privately for the Clinton Foundation and for Mrs. Clinton personally…Ms. Abedin has not disclosed how much she was paid by Teneo, the Clinton Foundation or Mrs. Clinton during this period.” [New York Times, 8/9/13]  New York Times: Grassley Sought Information On “Who In The Department Specifically Authorized The Arrangement For Ms. Abedin; Who In The Department Was Aware Of Her Outside Consulting Activities; Copies Of Contracts Ms. Abedin Signed With Private Clients; And The Amount She Earned From Those Contracts.” “Aides to Senator Charles E. Grassley, a Republican of Iowa who has led an inquiry into the matter, say they have faced obstacles in efforts to gather certain information about Ms. Abedin’s arrangement and about the rules the State Department applies in approving such arrangements. The questions Mr. Grassley and his staff are still seeking answers to include: who in the department specifically authorized the arrangement for Ms. Abedin; who in the department was aware of her outside consulting activities; copies of contracts Ms. Abedin signed with private clients; and the amount she earned from those contracts.” [New York Times, 8/9/13] Washington Post: “Maggie Williams, Clinton’s 2008 Campaign Manager…Received The Special Status To Work On Issues Relating To Women And Girls.” [Washington Post, 3/9/15] Washington Post: Cheryl Mills “Received No Compensation For Her Work, Which Was Tied To Reconstruction Efforts In Haiti” Amd “Retained Her Affiliation With The Department To Work On Haiti After Clinton Left.” “State Department documents show that Mills received no compensation for her work, which was tied to reconstruction efforts in Haiti. Mills did not respond to requests for comment. Merrill noted that Mills retained her affiliation with the department to work on Haiti after Clinton left.” [Washington Post, 3/9/15] Washington Post: Jonathan Prince “Received No Compensation For His Work, Which He Said Was Tied To Middle East Peace Talks And Unrelated To Anything Involving The Clintons.” [Washington Post, 3/9/15] Washington Post: Kathleen Kennedy Townsend “Did Not Receive A Government Paycheck From Her Special Designation. “Townsend, who did not receive a government paycheck from her special designation, did not respond to requests for comment.” [Washington Post, 3/9/15] Washington Post: Former Rep. Tauscher “Received A Special Designation In 2012 After Serving As Special Envoy For Strategic Stability And Missile Defense In The Office Of The Secretary Of State.” “Ellen O. Tauscher, a former California congresswoman, and Caitlin Klevorick, who previously worked at the Clinton Foundation, launched activities in the private sector while working as special government employees at the State Department. Records show that Tauscher received a special designation in 2012 after serving as special envoy for strategic stability and missile defense in the office of the secretary of state. Tauscher said she served only a few months. During that time, she joined a corporate board. She later started work as a lawyer with a Washington firm.” [Washington Post, 3/9/15]  Washington Post: “Tauscher Said She Served [In Clinton’s Office] A Few Months…During That Time, She Joined A Corporate Board…[And] She Later Started Work As A Lawyer With A Washington Firm.” “Ellen O. Tauscher, a former California congresswoman, and Caitlin Klevorick, who previously worked at the Clinton Foundation, launched activities in the private sector while

working as special government employees at the State Department. Records show that Tauscher received a special designation in 2012 after serving as special envoy for strategic stability and missile defense in the office of the secretary of state. Tauscher said she served only a few months. During that time, she joined a corporate board. She later started work as a lawyer with a Washington firm.”  Washington Post: Tauscher “Has Since Been Active In The Ready For Hillary Super PAC.” “Tauscher, who has since been active in the Ready for Hillary Super PAC, said she received the designation after expressing interest in retiring from government.” [Washington Post, 3/9/15]  Washington Post: Tauscher “Received The Designation After Expressing Interest In Retiring From Government” And “Was Told That The State Department Wanted Her To Continue To Serve At Least Part Time So She Could Remain Involved With Ongoing Missile-Defense Negotiations.” “Tauscher, who has since been active in the Ready for Hillary Super PAC, said she received the designation after expressing interest in retiring from government. She was told that the State Department wanted her to continue to serve at least part time so she could remain involved with ongoing missile-defense negotiations with Russian officials.” [Washington Post, 3/9/15] Washington Post: While Serving As A Clinton Aide In State Department, Caitlin Klevorick “Established CBK Strategies, A Consulting Firm That Advises Government And Corporate Clients On Communications And Policy.” “Klevorick, who joined the State Department as an aide to Clinton, received two one-year special appointments beginning in January 2012. During that time, records show that Klevorick established CBK Strategies, a consulting firm that advises government and corporate clients on communications and policy. Klevorick, whose participation in the program was first reported last year by Pro Publica, did not respond to requests for comment. Gerlach said Klevorick served as a senior adviser to the department.” [Washington Post, 3/9/15] Washington Post: Jeremy Rosner Maintained An “Association With The…Political Consulting Firm Greenberg Quinlan Rosner” While Working At State On A Project “Unrelated To The Clintons.” “Rosner, a pollster who worked for the National Security Council during Bill Clinton’s administration, had a special government employee assignment in 2011, a period during which he continued his association with the Washington-based political consulting firm Greenberg Quinlan Rosner. Rosner said his work at State, on a public diplomacy project in Pakistan, was unrelated to the Clintons.” [Washington Post, 3/9/15] THE GEORGE W. BUSH ADMINISTRATION EMPLOYED SEVERAL CONTROVERSIAL SPECIAL GOVERNMENT EMPLOYEES Roll Call: In July 2005, Ed Gillespie Became A Special Government Employee When He “Accepted A Request From The Bush Administration To Lead Its Lobbying Effort To Win Senate Confirmation For Roberts.” “In July 2005, [Ed Gillespie] accepted a request from the Bush administration to lead its lobbying effort to win Senate confirmation for Roberts. The job required Gillespie to relocate to the White House, and while he wasn't paid for the work, he was designated a special government employee, a status that prevented him from lobbying the White House.” [Roll Call, 10/17/05] Roll Call: Gillespie Was Not Paid For His White House Work On The Roberts Supreme Court Confirmation. “In July 2005, [Ed Gillespie] accepted a request from the Bush administration to lead its lobbying effort to win Senate confirmation for Roberts. The job required Gillespie to relocate to the White House, and while he wasn't paid for the work, he was designated a special government employee, a status that prevented him from lobbying the White House.” [Roll Call, 10/17/05] Roll Call: Gillespie Claims To Have Voluntarily Curtailed All Lobbying Activity While He Worked As A Special Government Employee At The White House. “Gillespie expanded the ban, curtailing his lobbying altogether. ‘I just think it's better to voluntarily separate what you're doing to help the people in your party from your lobbying activities,’ he said. ‘I just think it makes things easier, and otherwise, it could raise questions later about appearances.’” [Roll Call, 10/17/05] Roll Call: While Working As A Special Government Employee At The White House, Gillespie’s Firm Work Included “Maintaining Client Relationships And Speaking Engagements, That Didn't

Involve Solving Lobbying Problems.” “His work on the Roberts nomination included running daily strategy sessions, coordinating talking points and directing public relations efforts. But he still found time to return to the firm, sometimes as often as three times a week. ‘He did have some responsibilities here, like maintaining client relationships and speaking engagements, that didn't involve solving lobbying problems,’ said Rick Powell, the firm's managing partner. Indeed, Gillespie said while he works on all the firm's contracts, he is not involved with the day-to-day management of any of them.” [Roll Call, 10/17/05] International Herald Tribune Editorial: Richard Perle, Who Served As Chairman Of The Defense Policy Board And At The Same Time “Signed On To Represent A Major Telecommunications Company That Has A Strong Financial Interest In Lobbying The Defense Department…Should Immediately Drop One Of His Two Roles.” “As chairman of the Defense Policy Board, Richard Perle has been an influential architect of the Bush administration's Iraq policy and war plans. At the same time, it turns out, he has signed on to represent a major telecommunications company that has a strong financial interest in lobbying the Defense Department. This is a conflict pure and simple, and Perle should immediately drop one of his two roles. Perle, who served as an assistant defense secretary under President Ronald Reagan, is an important part of the current Defense Department. His position as chairman of the policy board, to which he was appointed by Defense Secretary Donald Rumsfeld, is unpaid. But he is nevertheless considered a ‘special government employee’ and is subject to federal ethics rules.” [Editorial, International Herald Tribune, 3/25/03] Although Richard Perle’s Bush Administration Position Was Unpaid, The International Herald Tribune Called On Him To Drop Either His Public Or Private Sector Role Because “He Is Nevertheless Considered A ‘Special Government Employee’ And Is Subject To Federal Ethics Rules.” “As chairman of the Defense Policy Board, Richard Perle has been an influential architect of the Bush administration's Iraq policy and war plans. At the same time, it turns out, he has signed on to represent a major telecommunications company that has a strong financial interest in lobbying the Defense Department. This is a conflict pure and simple, and Perle should immediately drop one of his two roles. Perle, who served as an assistant defense secretary under President Ronald Reagan, is an important part of the current Defense Department. His position as chairman of the policy board, to which he was appointed by Defense Secretary Donald Rumsfeld, is unpaid. But he is nevertheless considered a ‘special government employee’ and is subject to federal ethics rules.” [Editorial, International Herald Tribune, 3/25/03]