SEER Act: New Ethics Rules for Government Advisors Like Elon Musk & David Sacks

Concerns regarding potential conflicts of interest within the US federal government have spurred legislative action. Lawmakers are now examining ways to enhance ethical regulations for individuals who serve as part-time advisors, particularly when these advisors also hold significant positions in the private sector.

Addressing Potential Conflicts of Interest

The focus of this legislative push is on individuals designated as Special Government Employees (SGEs). These advisors offer their expertise to federal agencies on a limited basis, working up to 130 days per year. While this system is designed to bring valuable external knowledge into government, it has faced scrutiny. Critics argue that the current framework doesn’t subject SGEs to the same level of ethical oversight as full-time federal employees, potentially creating loopholes.

This situation has raised questions about figures such as Elon Musk and venture capitalist David Sachs advising the government while leading private enterprises. Concerns exist that these individuals could influence public policy in ways that might benefit their companies, especially those potentially seeking government contracts or subject to federal regulation.

Proposed Legislative Changes: The SEER Act

Spearheaded by Senator Elizabeth Warren, the proposed legislation, known as the “Strengthening Ethics and Integrity in Public Service Act” (SEER Act), aims to close these perceived gaps in federal oversight. The act introduces several key changes to how SGEs operate and are monitored.

Under current regulations, many SGEs are exempt from detailed financial disclosures unless specific compensation thresholds are met. The SEER Act proposes stricter rules:

• Enhanced disclosure requirements would begin after an SGE completes 60 days of service.
• A prohibition on earning outside income related to their corporate roles would apply once an SGE reaches the 130-day service limit.
• SGEs would be restricted from engaging with federal agencies that regulate or provide funding to their private companies.

Enhanced Transparency and Oversight

Furthermore, the SEER Act mandates increased transparency. Any waivers granted for potential conflicts of interest would require approval from the Office of Government Ethics and must be made publicly available. A new federal database would also be established to track all SGEs, detailing their service duration and the specific nature of their advisory work.

This legislative effort has garnered support from various ethics watchdog organizations, including Citizens for Responsibility and Ethics in Washington (CREW), the Project On Government Oversight (POGO), and Public Citizen. These groups advocate that greater transparency has been long overdue. If enacted, the SEER Act would represent a significant reform of ethics rules for part-time government consultants, aiming to limit potential undue influence from corporate leaders and bolster public accountability.