writing to his superior in such detail as that official shall require.

(2) Employment by State, local, or other governmental body.

(d) No full-time employee or parttime employee with a regularly scheduled tour of duty shall maintain a publicly listed place of business without the prior approval of the appropriate deputy counselor.

(e) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, Executive order, Civil Service Commission regulations, or 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 Secretary or his designee gives written authorization for the use of nonpublic information on the basis that the use is in the public interest.

(1) Each employee including the Secretary, and including each full-time member of a committee, board, or commission appointed by the President, shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, the subject matter of which is devoted substantially to the responsibilities, programs, or operations of the Department, or which draws substantially on official data or ideas which have not become part of the body of public information pursuant to the regulations in this part.

(2) An employee may use his name and title in connection with articles for publication which bear upon his work in the Department only if he obtains the approval of the appropriate deputy counselor.

(f) This section does not preclude an employee from:

(1) Participation in the activities of National or State political parties not proscribed by law.

(2) 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.

§ 0.735-205 Financial interests.

(a) An employee shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities.

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(3) Acquire securities issued by the Federal National Mortgage Association.

(4) Acquire ownership of stock or other interest in a rental project financed with an FHA insured mortgage as long as the insurance is in force.

(5) Acquire ownership of FHA debentures or certificates of claim.

(6) Acquire interest in a cooperative or condominium housing project financed under the National Housing Act if the interest is not for obtaining a home for himself or his family.

(7) Be an officer or director of any organization which is an FHA approved mortgagee or lending institution or which services mortgages or other securities for the Department. An employee may hold stock or shares in such organizations provided his official duties are such that the holding will not create or tend to create a conflict of interest. The prohibitions of this paragraph do not apply to Federal Credit Unions that have been approved as Title I lending institutions.

(8) Participate directly or indirectly in any real estate activities for speculative purposes as distinguished from bona fide investment purposes on a moderate scale. There is a presumption of speculation when the use of borrowed funds is involved on a continuing basis or in large sums or the income characteristic of an investment is disproportionate or absent.

(b) (1) No employee, including a special Government employee, may participate as such in any matter in which to his knowledge he, his spouse, minor child, organization in which he is serving as an officer, director, trustee, partner, or employee, or a partner has a financial interest. He must also not participate in any matter in which to his knowledge a person, business, or nonprofit organization with whom he is seeking, or has an

arrangement for, employment has a financial interest (18 U.S.C. 208(a)).

(2) Subparagraph (1) of this paragraph does not apply:

(i) If the officer or employee first advises the Department counselor in writing of the nature and circumstances of the matter, makes full disclosure of the financial interest, and receives in advance a written determination by such official or his designee that such interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such officer or employee; or

(ii) If the financial interest is within one of the following categories which are hereby exempted from the requirements of section 208(a) of title 18, United States Code as being too remote or too inconsequential to affect the integrity of a Government officer's or employee's services;

(a) Any holding in a widely held mutual fund, or regulated investment company, which does not specialize in any particular industry.

(b) Ownership of shares of stock and of corporate bonds or other corporate securities, if the current aggregate value of the stocks and other securities so owned in any single corporation is less than $7,500 and is less than 1 percent of the outstanding stock of the organization concerned, and if the employee, his spouse, or minor children are not active in the management of the organization and have no other connection with or interest in it.

(c) Continued participation in a bona fide pension, retirement, group life, health, or accident insurance plan or other employee welfare or benefit plan that is maintained by a business or nonprofit organization by which the employee was formerly employed, to the extent that the employee's rights in the plan are vested and require no additional services by him or further payments to the plan by the organization with respect to the services of the employee. To the extent that such plans are profit sharing or stock bonus plans, this exemption shall not apply.

(c) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government So long as it is not prohibited by law,

Executive Order 11222, Civil Service Commission regulations, or this part. [33 F.R. 15114, Oct. 10, 1968, as amended at 34 F.R. 12625, Aug. 2, 1969; 35 F.R. 4622, Mar. 17, 1970]

§ 0.735-206 Use of Government prop

erty.

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.

§ 0.735-207 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 0.735-204 (e), 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.

An employee shall pay each just filnancial obligation in a proper and timely manner, especially one imposed by law, such as Federal, State, and local taxes. 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 the Department determines does not, under the circumstances, reflect adversely on the Government as his employer. In the event of a dispute between an employee and an alleged creditor, this section does not require the Department to determine the validity or amount of the disputed debt.

§ 0.735-209 Gambling, betting, and lotteries.

An employee shall not participate, while on Government owned or leased property or while on duty for the Department, 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 number slip or ticket. However, this section does not preclude activities:

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

(b) Under section 3 of Executive Order 10927, namely, solicitations conducted by organizations composed of employees among their own members for organizational support or for benefit or welfare funds for their members, or similar Department-approved activities.

§ 0.735-210

General conduct; and conduct prejudicial to the Government. (a) Each employee shall conduct himself in a manner that facilitates the effective accomplishment of the work of the Department, observing at all times the requirements of courtesy, consideration, and promptness in dealing with the public and with persons or organizations having business with the Department;

(b) An employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government.

§ 0.735-211 Intermediaries and product recommendations.

No employee shall recommend or suggest the use of any particular or identified nongovernmental intermediary to deal with the Department nor shall he recommend any device or product tested by or for, or used by, the Department, except as required by his official duties. § 0.735-212 Membership in organizations.

(a) An employee may not, in his official capacity as an officer or employee of the Department, serve as a member of a non-Federal or private organization except where express statutory authority exists, or statutory language necessarily implies such authority, or where the Secretary has determined in writing that such service would be beneficial to the Department and consistent with such officer's or employee's service as a Department employee. However, an ployee may serve in an individual capacity as a member of a non-Federal or private organization, provided that:

em

(1) His membership does not violate the restrictions noted in § 0.735-204; and

(2) His official title or organization connection is not shown on any listing or presented in any activity of the organization in such a manner as to imply that he is acting in his official capacity.

(b) An employee may be designated in writing to serve as a liaison representative of the Department to a non

Federal or private organization when the Secretary, the Under Secretary, an Assistant Secretary, the General Counsel, or a Regional Administrator, as appropriate, has determined that such service would be beneficial to the Department and provided that:

(1) The activity relates to the work of the Department.

(2) The employee does not participate by vote in the policy determinations of the organization.

(3) The Department is in no way bound by any vote or action taken by the organization.

[33 F.R. 15114, Oct. 10, 1968, as amended at 34 F.R. 12625, Aug. 2, 1969]

§ 0.735-213 Prohibited activities by former employees.

A former officer or employee or former Special Government employee of the executive branch of the U.S. Government, of any independent agency of the United States or of the District of Columbia shall not:

(a) At any time after his Government employment has ended, knowingly act as an agent or attorney for anyone other than the United States in connection with any matter involving a specific party or parties in which the United States is a party or has a direct or substantial interest and in which he participated personally and substantially as an officer or employee for the Government through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise while so employed. (18 U.S.C. 207(a).)

(b) Within 1 year after his Government employment has ended, appear personally before any court or department or agency of the Government as agent, or attorney for, anyone other than the United States in connection with any matter involving a specific party or parties in which the United States is a party or directly or substantially interested, and which was under his official responsibility as an officer or employee of the Government at any time within a period of one year prior to the termination of such responsibility (18 U.S.C. 202(b) and 207(b)).

§ 0.735-214 Miscellaneous statutory pro

visions.

Each employee shall acquaint himself with each statute that relates to his ethical and other conduct as an employee

of the Department and of the Government. The attention of each employee is directed to the following statutory provisions:

(a) House Concurrent Resolution 175, 85th Congress, second session, 72 Stat. B12, the "Code of Ethics for Government Service".

(b) Chapter 11 of Title 18, United States Code, relating to bribery, graft, and conflicts of interest, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).

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

(f) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information (18 U.S.C. 1905).

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

(h) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a (c)).

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

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

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

(1) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

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

(n) The prohibitions against (1) embezzlement of Government money or property (18 U.S.C. 641); (2) failing to account for public money (18 U.S.C. 643); and (3) embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654).

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

(p) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code, and 18 U.S.C. 602, 603, 607, and 608.

(q) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219). Subpart C-Conduct and Responsibilities of Special Government Employees

§ 0.735-301 Use of Government em. ployment.

A special Government employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties.

§ 0.735-302 Use of inside information.

(a) A special Government employee shall not use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or financial ties. For the purpose of this section, "inside information" means information obtained under Government authority which has not become part of the body of public information.

(b) Special Government employees may teach, lecture, or write in a manner consistent with the provisions of § 0.735204(e).

50-047-71-- -2

or another person, particularly one with whom he has family, business, or financial ties.

(b) The exceptions of § 0.735-203 (b), which are applicable to employees, are also applicable to special Government employees.

§ 0.735-305 Applicability of other provisions.

(a) Each special Government employee is subject to the provisions of $$ 0.735-201, 0.735-205 (b), 0.735-206 through 0.735-210, 0.735-212, 0.735-213, 0.735-214, and 0.735-411.

(b) Each special Government employee shall acquaint himself with each statute listed in § 0.735-214. A special Government employee engaged on an irregular or occasional basis is bound by the political activity restrictions of the former Hatch Act cited in § 0.735-214(p) only while in an active duty status and for the entire 24 hours of any day during which he is actually employed.

[33 F.R. 15114, Oct. 10, 1968, as amended at 34 F.R. 12625, Aug. 2, 1969]

Subpart D-Statements of Employment and Financial Interests

§ 0.735-401 Employees required to submit statements.

Except as provided in § 0.735-403, the following categories of employees shall submit statements of employment and financial interest:

(a) Employees paid at a level of the Executive schedule in subchapter II of chapter 53 of title 5, United States Code.

(b) Employees classified at GS-13 or above who are in positions identified in the appendix to this part as positions the incumbents of which are responsible for making a Government decision or taking a Government action in regard to:

(1) Contracting or procurement; (2) Administering or monitoring grants or subsidies;

(3) Regulating or auditing private or other non-Federal enterprise; or

(4) Other activities where the decision or action has an economic impact on the interests of any non-Federal enterprise.

(c) Employees classified at GS-13 or above who are in positions which the Department has determined have duties and responsibilities which require the

incumbent to report employment and financial interests in order to avoid involvement in a possible conflicts-of-interest situation and carry out the purpose of law, Executive order, and this part. The positions are identified in the appendix to this part.

(d) Employees classified below GS-13 who are in positions which otherwise meet the criteria in paragraph (b) or (c) of this section. These positions have been approved by the Civil Service Commission as exceptions that are essential to protect the integrity of the Government and avoid employee involvement in a possible conflict-of-interest situation. The positions are identified in the appendix to this part by footnote 1.

§ 0.735-402 Employee's complaint on filing requirement.

Employees have the opportunity for review through the Department's grievance procedures of a complaint by an employee that his position has been improperly included under these regulations as one requiring the submission of a statement of employment and financial interests.

§ 0.735-403 Employees not required to submit statements.

(a) Employees in positions that meet the criteria in § 0.735-401(b) may be excluded from the reporting requirement when the Department Counselor determines that:

(1) The duties of a position are such that the likelihood of the incumbent's involvement in a conflict-of-interest situation is remote;

(2) The duties of a position are at such a level of responsibility that the submission of a statement of employment and financial interests is not necessary because of the degree of supervision and review over the incumbent or the inconsequential effect on the integrity of the Government.

(b) A statement of employment and financial interests is not required by this subpart from the Secretary or a full-time member of a committee, board, or commission appointed by the President. These employees are subject to separate reporting requirements under section 401 of the Executive order.

[33 F.R. 15114, Oct. 10, 1968, as amended at 34 F.R. 12625, Aug. 2, 1969]