1964                                     EXECUTIVE ORDERS

agency head notify his appointing authority, and make a written disclosure of his
financial interest to such agency head or appointing authority. A copy of such
written disclosure shall be sent to the Board of Ethics. The agency head will
thereupon relieve him of his duty and responsibility in the matter, unless the Board
of Ethics makes a written determination that under the circumstances the public
welfare and interest in the officer's or employee's participation exceeds the public
interest in his disqualification and provided that the State officer or employee shall
consent to such participation. A full statement of the pertinent facts and of the
Board's determination of public welfare and interest under any provisions of this
section shall be kept on file by the Board and shall be a public record.

Nothing in this section shall preclude a State officer or employee from
participating in (a) a contract with his agency for the rendering or furnishing of
public utility services or any other service at a published rate established or
authorized by any federal, state, county, or city regulatory agency where payments
under the contract do not exceed $1,000 and where the services supplied are usual
and necessary for the performance of the official duties of the State officer or
employee, or (b) transactions involving the State with respect to the deposit of
State monies in bank depositaries where a fixed formula is utilized to determine
the percentage ratio of State monies to be deposited in any given bank and where
the officer or employee does not participate in the fixing or amending of the
formula.

Article IV.

Board of Ethics

A Board of Ethics is hereby established within the executive branch of the State
government. It shall consist of seven members appointed by the Governor from the
general public who are not subject to this Code of Ethics. The term of each
member shall be four years or until a successor is appointed and takes office. Any
member of the Board shall be eligible for reappointment. Of the members first
appointed, one member shall be appointed for one year, two members for two
years, two members for three years, and two members for four years. One member
shall be designated as chairman by the Governor and shall serve as such during his
full term of office as a member. Five members of the Board shall constitute a
quorum, regardless of vacancies, and the affirmative vote of at least five members
shall be necessary for any action. Members of the Board shall serve without
compensation but shall be reimbursed for their actual expenses incurred in the
performance of their duties. The Board, with the approval of the Governor, may
appoint a paid Executive Secretary at such salary as the Governor may determine.

The powers and duties of the Board shall be as follows:

1.      To recommend from time to time such orders, rules, regulations and
changes, as it deems necessary and proper to supplement, administer, and
implement or amend the provisions of this Code of Ethics, which
recommendations, when approved by the Governor, shall become part of this Code
of Ethics. A copy of any such orders, rules, and regulations, when adopted by the

Governor, shall be filed with the Secretary of State as an amendment to this executive

order.

2.    To render advisory opinions to officers and employees of the State, or any
agency thereof, with respect to any matter or transaction in which such officer or
employee is involved concerning the applicability of this Code of Ethics. The Board
shall publish such advisory opinions with such deletions as may be necessary to
prevent disclosure of the officer or employee who may request such an opinion.

3.     To investigate any alleged violation of said Code by an officer or employee
where both the appointing authority for said officer or employee and the officer or
employee involved in the alleged violation shall request the Board to make such
investigation. A written report of the results of the Board's investigation shall be