(11) Director of Nuclear Reactor Regulation.

(111) Director of Nuclear Material Safety and Safeguards.

(iv) Director of Nuclear Regulatory Research.

(v) The Secretary and Assistant Secretary.

(vi) The Chairman, Atomic Safety and Licensing Board Panel.

(vii) The Chairman, Atomic Safety and Licensing Appeal Panel.

(vill) The General Counsel.

(ix) The Solicitor.

(x) The Agency Inspector and Auditor. (x1) Director, Office of Public Affairs. (xii) Director, Office of Congressional Liaison.

(xiii) Chairman, Advisory Committee on Reactor Safeguards.

(2) Submitted to the Individual Commissioners: Special Assistants.

(3) Submitted to the Executive Director for Operations.

(1) Heads of Offices reporting to him. (11) Members of his immediate staff. (4) Submitted to the Heads of Offices and Divisions: Employees under their respective jurisdiction.

(5) Submitted to officials responsible for their appointments: Special Government employees, consultants, experts, and advisers.

(1) Availability of review. Any employee who believes that his position has been improperly included under this section as one requiring the submission of a statement of employment and financial interests may utilize the grievance procedure in NRC Manual, Chapter 4157, for review of his complaint.

[31 FR 4502, Mar. 17. 1966, as amended at 32 FR 13651, Sept. 29. 1987; 40 FR 8775, Mar. 3, 1975; 40 FR 50704, Oct. 31, 1975] § 0.735-29 Restriction against owning certain security interests upon Commissioners, staff and other related personnel.

(a) No Commissioner or employee, including special government employees who are members of the Advisory Committee on Reactor Safeguards, the Atomic Safety and Licensing Board Panel, or the Atomic Safety and Licensing Appeal Panel (including a spouse, minor child or other member of the immediate household of a Commissioner, employee or such special government employee) shall own any stocks, bonds, or other securities of any corporation of the type listed in paragraph (a)(1) of this section.

$ 0.735.30

(1) Corporations covered by the provisions of this section are:

(1) Any publicly or privately owned utility company engaged in the generation, distribution or sale of electric energy, or parent company of such company.

(11) Any company manufacturing or selling nuclear power or test reactors.

(i) Any architectural-engineering company primarily engaged in the design or construction of nuclear power or test reactor facilities.

(iv) Any company whose business consists substantially of serving as consultant to companies engaged in activities licensed or regulated by the NRC.

(2) (1) An employee presently owning stocks, bonds or other securities covered in paragraph (a) (1) shall dispose of them no later than April 30, 1975.'

(1) Any new employee who enters on duty after March 3, 1975 shall dispose of said stocks, bonds or securities no later than 30 days after entrance on duty.

(b) Such securities acquired on or after July 1, 1974, through gift, inheritance or other similarly involuntary manner, shall be disposed of within a reasonable period of time.

(c) The Commission may exempt an employee from the restrictions of paragraph (a) of this section where divestiture of the stock, bond, or other security interest is determined to be inequitable by the Commission.

[39 FR 788. Jan. 3, 1974, as amended at 40 FR 8776, Mar. 3, 1975]

Subpart C-Other Restrictions Imposed by Statute on Conduct of Employees § 0.735-30 Description of statutory pro

visions.

Each employee has a positive duty to acquaint himself with each statute that relates to his ethical and other conduct as an employee of the NRC and of the Government. Certain of these statutes are referred to in §§ 0.735-21-0.735-27. Attention of employees is also directed to the following statutory provisions:

(a) The prohibitions contained in the following sections of the Atomic Energy

This grace period does not apply to employees who were already subject to these restrictions prior to January 19, 1975 pursuant to regulations previously promulgated by the Atomic Energy Commission. These employees must be rid of all such stocks, bonds or other securities, except insofar as a specific exemption under paragraph (c) previously has been granted.

Act of 1954, as amended: Section 222, "Violation of Specific Sections"; Section 223. "Violation of Sections Generally"; Bection 224, "Communication of Restricted Data"; Section 225, "Receipt of Restricted Data"; Section 226, "Tampering With Restricted Data"; and Section 227, "Disclosure of Restricted Data" (42 U.S.C. 2272 through 2277).

(18

(b) The prohibitions against the disclosure of classified information U.S.C. 798, 50 U.S.C. 783).

(c) The prohibition against the disclosure of confidential informaton (18 U.S.C. 1905).

(d) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(e) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913). (1) The prohibition against proscribed political activities in subchapter III of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608. (See NRC Manual Chapter 4122, "Political Activity.")

(g) The prohibition against bribery of public officials and witnesses (18 U.S.C. 201).

(h) The prohibition against acceptance or solicitation to obtain appointive public office (18 U.S.C. 211).

(1) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 US.C. 1918). (See also NRC Manual Chapter 4121. "Oath of Office" and NRC Manual Chapter 4166, "Employee-Management Cooperation.")

(J) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

(k) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a (c)). (See also NRC Manuai Chapter 5142, "Motor Vehicle and Aircraft Management.")

(1) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).

(m) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

(n) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(0) The prohibition against mutilating or destroying a public record (18 US.C. 2071). (See also NRC Appendix 0230, "Records Disposition.")

(p) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(q) The prohibition against embezzlement of Government money or property (18 U.S.C. 641). (See also NRC Manual Chapter 5101, "Personal Property and Supply Management.")

(r) The prohibition against falling to account for public money (18 U.S.C. 643). (s) The prohibition against an employee's private use of public money (18 U.S.C. 653).

(t) The prohibition against embezzlement of the money or property of another person in the possession of an employce by reason of his employment (18 U.S.C. 654).

(u) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

(v) The prohibition against making false entries in official records with intent to defraud or making false reports concerning moneys and securities with such intent (18 U.S.C. 2073).

(w) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 US.C. 219).

(x) House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. B 12, the "Code of Ethics for Government Service."

[32 FR 13652, Sept. 29, 1987, as amended at 40 FR 50704, Oct. 31, 1975]

Subpart D-Restrictions Imposed by NRC Administrative Decision on Conduct of Employees

§ 0.735-40 Outside employment and other outside activity.

(a) NRC employees are entitled to the same rights and privileges with regard to outside employment and other outside activity as all other citizens. There is, therefore, no general prohibition against employees engaging in outside employment or other outside activity; except that no employee shall engage in such employment or activity if it is not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or

create the appearance of, conflicts of Interests; or

(2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner

(b) In any case in which there is a question as to the propriety of outside employment in which an employee proposes to engage, and when the head of the office or division concludes that the proposed outside employment may be in violation of NRC policy, the following information shall be sent to the Office of Administration for prior approval of the proposed activity (in consultation, as ap(1) the counselor): propriate, with Name, job title, and grade of the employee involved; (2) a brief summary of his official NRC duties; (3) a brief description of the proposed employment, including the compensation to be received; and (4) the name and nature of the business of the employing individual or crganization.

(c) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209).

(d) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, Executive Order 11222, CSC regulations, or the regulations in this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Civil Service Commission or Board of Examiners for the Foreign Service, that is dependent on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the Executive Director for Operations, has given written authorization for the use of nonpublic information on the basis that the use is in the public interest.

(e) Except as allowed for training or to attend meetings under section 4111 of title 5, United States Code, and Executive Order 10800, no employee shall accept a fee from an outside source on account of a public appearance, a speech, or lecture, if the public appearance or the preparation or delivery of the speech or lecture was a part of the official duties

§ 0.735-41

of the employee, if the public appearance, the speech, or the lecture was made during official working hours, or if travel for the purpose of the public appearance, speech, or lecture was made at Government expense. In addition, no employee shall accept a fee for the preparation, publication., or review of an article, story, or book if it was prepared during official working hours and/or was a part of the official duties of the employee.

(f) [Reserved]

(g) An employee is not precluded by this 0.735-40 or § 0.735-42 from:

(1) Receipt of bona fide reimbursement for expenses of travel and such other necessary subsistence for which no Government payment or reimbursement is made except when reimbursement from a person for travel on official business under AEC orders is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967, or otherwise prohibited by law. Questions concerning application of the Comptroller General's decision should be referred to the counselor or appropriate deputy counselor. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf. for excessive personal living expenses, gifts, entertainment, or other personal benefits.

(2) Participation in the activities of political parties not proscribed by law.

(3) Participation in the affairs of or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

[31 F.R. 4502, Mar. 17, 1966, as amended at 32 FR. 13552, Sept. 29. 1967: 33 FR. 11396. Aug. 10. 1968; 40 FR 8776, Mar. 3, 1975; 40 FR 50704, Oct. 31, 1975]

§ 0.735-41 Misuse of information.

For the purpose of furthering a priva interest, an employee shall not, except as provided in § 0.735-40 (d), directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public. See also section 68a of the Atomic Energy Act of 1954, 42 U.S.C., section 2098(a), "Public and acquired lands," which provides as follows:

a. No individual, corporation, partnership. or association, which had any part, directly

21-467 O 7821

or indirectly, in the development of the atomic energy program, may benefit by any location. entry, or settlement upon the public domain made after such individual, corporation. partnership, or association took part in such project. if such individual, corporation. partnership, or association, by reason of having had such part in the development of the atomic energy program, acquired conidential official information as to the existence of deposits of uranium, thorium, or other materials in the specific lands upon which such location, entry, or settlement is made, and subsequent to August 30. 1954, made such location, entry, or settlement, or caused the same to be made for his, or its, or their benefit.

§ 0.735-42 Gifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section, an employee shall not solicit or accept, directly o: indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with NRC.

(2) Conducts operations or activities that are regulated by NRC or is an applicant for a license from NRC; or

() Has interests that may be substantially affected by the performance or nonperformance of his official duty.

(b) The following exceptions are authorized as being necessary and appropriate in view of the nature of the NRC's work and the duties and responsibilities of its employees:

(1) When the circumstances make it clear that it is obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) rather than the business of the persons concerned which are the motivating factors;

(2) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour where an employee may properly be in attendance;

(3) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activitles of employees, such as home mortgage loans;

(4) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars and other items of nominal intrinsic value; and

(5) Acceptance of transportation not inconsistent with the provisions of paragraph (c) of this section.

(c) No employee shall accept free transportation in motor vehicles, aircraft, or other means, for official or unofficial purposes from NRC contractors, prospective contractors, licensees or prospective licensees, or representatives of any of them when such transportation might reasonably be interpreted as seeking to influence the impartiality of the employee or the agency.

(d) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351), nor shall an employee directly or indirectly solicit from, accept from, offer to, or grant to an official superior or subordinate employee a loan of more than a nominal amount. However, this paragraph does not prohibit (1) a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement, or (2) a loan as described above of more than a nominal amount where a special personal or business relationship is involved, with prior approval of the higherranking employee's supervisor, after consultation with the counselor for NRC, or a deputy counselor, as provided in § 0.735-3(h). A copy of such approval shall be filed as provided for in § 0.73528(e) (11).

(e) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in Public Law 89-673, 80 Stat. 952.

[31 F.R. 4502, Mar. 17. 1966. as amended at 32 FR 13653. Sept. 29, 1967; 38 FR 1271, Jan. 11, 1973]

§ 0.735-43 Use of Government property.

An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him.

§ 0.735-44 Scandalous conduct.

No employee shall engage in criminal, infamous, dishonest, immoral, or no

toriously disgraceful conduct or other conduct prejudicial to the Government. 80.735-45 Employee indebtedness.

Except as provided in § 0.735-42(d), the NRC considers the credit affairs of its employees essentially their own concern. However, employees are expected to conduct their credit affairs in a manner which does not reflect adversely on the Government as their employer. The NRC will not be placed in the position of acting as a collection agency or of determining the validity or amount of contested debts. An employee is expected to pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. Failure on the part of an employee without good reason to honor just financial obligations or to make or adhere to satisfactory arrangements for settlement may be cause for disciplinary action. For the purpose of this section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which NRC determines does not, under the circumstances, reflect adversely on the Government as his employer.

[38 FR 1271, Jan. 11, 1973]

$0.735-46 Gambling, betting, and lotteries.

An employee shall not participate. while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket. However, this section does not preclude activities:

(a) Necessitated by an employee's law enforcement duties; or

(b) Under section 3 of Executive Order 10927 and similar agencyapproved activities.

$0.735-47 Handling of funds entrusted

by fellow employees.

No employee shall receive, retain, or disburse funds entrusted to him by fellow employees, e.g., credit union deposits or donations to charitable organizations, except with the utmost care in the safeguarding of such funds and the maintenance of full and complete records with regard to the receipt, custody, and dis

$ 0.735-49a

Such records

bursement of such funds. shall be made available to appropriate authorities upon proper request.

§ 0.735-48 Ex parte contacts.

Certain ex parte contacts by an employee are prohibited in quasi-judicial proceedings under $ 2.719 and 2.780 of this chapter.

§ 0.735-49 Employment of persons on extended leave of absence from a previous employer with reemploy. ment rights or other benefits with the previous employer.

(a) NRC may employ persons on extended leave of absence from private employers where it is the way most advantageous to the NRC to obtain qualifled employees with needed skills and no violation of conflict of interest statutes would be involved. The necessity for continued employment of such persons shall be reviewed annually by the Director, Office of Administration. In their NRC assignments, such employees shall be permitted to handle, directly or indirectly, or have access to, business confidential data of their former employers' competitors.

(b) When it is proposed to employ such a person, a statement of the exact terms and conditions of the leave of absence from his employer will be obtained from the prospective employee and submitted to the General Counsel for a prior determination of possible violation of statute.

(c) The following quotation from 18 U.S.C. 209 is pertinent to this situation.

(b) Nothing herein prevents an omcer or employee of the executive branch of the US. Government, or of any independent agency of the United States, or of the District of Columbia, from continuing to participate in a bona fide pension, retirement, group life, health or accident insurance, profit-sharing. stock bonus, or other employee welfare or benefit plan maintained by a former employer.

8 0.735-49a Other proscribed actions.

An employee shall avoid any action, whether or not specifically prohibited by this Part 0, which might result in, or create the appearance of:

(a) Using a public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Government efficiency

or economy;