mediate offices of Commissioners other than the Chairman to a Commissioner and/or the Commission.

[Order 319, 31 F.R. 4118, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 3, 1967] §3.735-10 Disciplinary and other remedial action.

Violation of

(a) Disciplinary action. the provisions of this Subpart C by any Commission employee, except a Commissioner, may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law. Appropriate disciplinary action shall be effected in accordance with applicable laws, executive orders and regulations and may include one or more of the following: removal, suspension, reduction in grade. The disciplinary action taken will depend upon the seriousness of the violation and pertinent conditions and circumstances. In instances where criminal violation is indicated, the matter will be referred by the Commission to the Department of Justice for appropriate action.

(b) Other remedial action. Other remedial action shall be effected in accordance with applicable laws, executive orders and regulations and may include: (1) Divestment of the employee of his conflicting interest.

(2) Changes in assigned duties. (3) Disqualification for a particular assignment.

(c) Procedure. (1) Except as provided in subparagraph (2) of this paragraph, after receipt from the Agency Counselor of the conflicts-of-interest report prepared by the Director, Office of Personnel Programs in accordance with the provisions of §§ 3.735-8(a) (1) (ii) (e) and 3.735-9(e) (1), and after consideration of the explanation provided by the employee, the Chairman shall take such appropriate disciplinary or other remedial action as may be required. If the Chairman concludes that there is no actual or apparent conflict of interest or if no disciplinary or other remedial action is required, the Chairman shall so inform the employee.

(2) In the case of personnel employed regularly and full time in the immediate office of a Commissioner other than the Chairman, that Commissioner shall execute the provisions of subparagraph (1) of this paragraph. Any Commissioner may, in his discretion, refer the matter

Each employee and special Government employee shall acquaint himself with the following statutes and regulations relating to ethical conduct. The full texts of these statutes and regulations are available in the offices of the Agency Counselor and Director, Office of Personnel Programs.

(a) General. (1) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. B12, the "Code of Ethics for Government Service," and Federal Power Commission Administrative Order No. 66, July 23, 1958, setting forth canons of conduct based on H. Con. Res. 175.

(2) Executive Order 11222, May 8, 1965, Prescribing Standards of Ethical Conduct for Government Officers and Employees, 30 F.R. 6469, and the implementing regulations issued by the Civil Service Commission, 30 F.R. 12529, 5 CFR Part 735.

(3) Violation of any law, rule, or regulation, administered by the Civil Service Commission, or failure to adhere to established policies, regulations, standards, and instructions on personnel management subject to the jurisdiction of the Commission. (Civil Service Rule 5.4.)

(4) Refusal to furnish testimony or information to authorized representatives of the Civil Service Commission in regard to matters inquired of arising under the laws, rules, and regulations administered by the Commission. (Civil Service Regulation 731.201(d).)

(5) Executive Order 10927, March 18, 1961, Abolishing the President's Committee on Fundraising within the Federal Service and providing for the conduct of fundraising activities, 26 F.R. 2383.

(6) The prohibitions relating to gifts to superiors. (5 U.S.C. 7351.)

(b) Personal conduct. (1) the provision relating to the habitual use of intoxicants to excess. (5 U.S.C. 7352.)

(2) The prohibition against criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct. (Civil Service Regulation 731.201(b).)

(c) Disloyalty and striking. (1) The See §3.735-32.

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

NOTE: An employee who advocates the overthrow of our constitutional form of government, or is a member of an organization knowing it so advocates, shall be dismissed. Strikes against the Government are forbidden as well as membership in Government employee organizations which assert the right to strike against any federal department or agency.

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

(d) Foreign governments. (1) The prohibition against accepting a gift, present, decoration, or any other thing from a foreign government unless authorized by Congress as provided by the Constitution and in P.L. 89-673, 80 Stat. 952.

(2) The prohibition against serving while on annual leave or leave without pay, with or without remuneration, for any foreign government, corporation, partnership or individual that is in competition with American industry. (Executive Order 5221, November 11, 1929.)

(3) 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.)

(e) Political activities. (1) The prohibitions against political activities (the former Hatch Act) in subchapter III of chapter 73 of title 5, U.S.C. and 18 U.S.C. 602, 603, 607, and 608. The prohibitions, and exemptions therefrom, with respect to Government employees holding state, territorial or municipal offices. (Civil Service Regulations, 5 CFR Part 734.)

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

No part of the money appropriated by any enactment of Congress shall, in the absence of express authorization by Congress, be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, to favor or oppose, by vote or otherwise, any legislation or appropriation by Congress, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation; but this shall not prevent officers or employees of the United States or of its departments or agencies from communicating to Members of Congress on the request of any Member or to Congress, through the proper official channels, requests for legislation or appropriations which they deem necessary for the efficient conduct of the public business.

The penalty for violation includes fine or imprisonment and removal.

(1)

(f) Disclosure of information. Section 301(b) of the Federal Power Act and section 8(b) of the Natural Gas Act forbid employees, in the absence of Commission or court direction, from divulging information gained in examining books or accounts.

(2) Section 1.36 of the Federal Power Commission's rules of practice and procedure (18 CFR 1.36) outlines what is public information and what is not.

(3) Section 1.4(d) of the Federal Power Commission's rules of practice and procedure (18 CFR 1.4(d)) describes the prohibitions against ex parte communications.

(4) Federal Power Commission Administrative Order No. 56, July 11, 1956, describes standards of conduct relating to "Official Staff Contacts Outside the Commission."

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

(g) Bribery, graft, and conflicts of interest. (1) Chapter 11 of title 18, United States Code (Public Law 87-849) especially:

Sec. 201-Bribery of public officials and witnesses.

Sec. 202-Definitions.

Secs. 203 and 209-Outside compensation in matters affecting the Government.

Sec. 205-Activities in claims against and other matters affecting the Government.

Sec. 207-Disqualification of former officers and employees in matters connected with former duties.

Sec. 208-Acts affecting personal financial interests.

Sec. 210-Offer to procure appointive public office.

Sec. 211-Acceptance or solicitation to obtain appointive public office.

(2) Federal Power Act, section 1 (16 U.S.C. 792) restricting outside employment and financial interests of Commissioners.

(3) Section 1.4(c) of the Federal Power Commission's rules of practice and procedure (18 CFR 1.4 (c)) states the restrictions against appearances by former employees.

(h) Fraud and deceit, embezzlement, extortion. (1) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

The prohibition against intentional false statements or deception or fraud in examination for appointment (Civil Service Regulation 731.201(c)). The prohibition against influencing another to withdraw from competition for any position in the competitive service for the purpose of either improving or injuring the prospects of any applicant for appointment. (Civil Service Rule 4.3.)

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

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

(4) The prohibitions against (i) embezzlement of Government money or property (18 U.S.C. 641); (ii) failing to account for public money (18 U.S.C. 643); and (iii) 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.)

(5) The prohibition against extortion. (18 U.S.C. 872.)

(1) Misuse of Government property. (1) The prohibition against the misuse of a Government vehicle. (31 U.S.C. 638a (c).)

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

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

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

[Order 319, 31 F.R. 4118, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15239, 15240, Nov. 3, 1967]

Subpart D-Standards of Conduct for

Special Government Employees

AUTHORITY: The provisions of this Subpart D issued under E.O. 11222 of May 8, 1965, 30 FR. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104.

SOURCE: The provisions of this Subpart D contained in Order 319, 31 F.R. 4124, Mar. 9, 1966; 31 F.R. 4448, Mar. 16, 1966, unless otherwise noted.

§ 3.735-21 Purpose.

(a) The Commission recognizes that the maintenance of high standards of honesty, integrity, impartiality, and conduct by special Government employees is essential to assure the proper performance of Commission business and the maintenance of confidence by citizens in

the integrity of their Government. The avoidance of misconduct and conflicts of interest on the part of special Government employees through informed judgment is indispensable to the maintenance of these standards. The Commission, acting under authority conferred by the Federal Power Act and pursuant to sections 201(b) and 702 of Executive Order 11222 of May 8, 1965, 30 F.R. 6469, and the implementing regulations issued by the Civil Service Commission, 30 F.R. 12529, 5 CFR Part 735, issues this Subpart D to advise all special Government employees of the standards of conduct each is expected to observe while employed by the Federal Power Commission.

(b) The summaries of statutory provisions, such as the conflict-of-interest provisions of Public Law 87-849, 18 U.S.C. 201-218, which appear in this Subpart D at 3.735-32 are not intended and should not be construed as verbatim quotations of the law. The statutes should be consulted in any situation in which they might apply.

[Order 319, 31 F.R. 4124, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 3, 1967]

This Subpart D applies only to special Government employees, usually consultants and advisors, as defined in § 3.735-24 (h).

§ 3.735-23 Notice and receipt.

Each special Government employee in the employ of the Commission on March 9, 1966, shall be provided with a copy of this Subpart D on or before June 1, 1966, and shall within 5 days after receipt, sign and return to the Director, Office of Personnel Programs the certification of receipt and agreement to comply with conditions and requirements (FPC Form 855). At the time his appointment is processed, each new special Government employee shall be provided with a copy of this Subpart D and shall sign and return to the Director, Office of Personnel Programs the certification of receipt and agreement to comply with conditions and requirements. Special Government employees shall be advised of this Subpart D at least once each year and shall be promptly informed of any change therein.

[Order 319, 31 F.R. 4124, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 3, 1967]

§ 3.735-24 Definitions.

(a) "Conflict of interest" means a situation in which a special Government employee's private interest, usually of an economic nature, conflicts or raises a reasonable question of potential conflict with the efficient and impartial conduct of his official duties and responsibilities. The conflict is of concern whether it is real or only apparent.

(b) "Employed" means the period of time for which a special Government employee is appointed by the Federal Power Commission and/or other federal agencies to render services, including those days on which no services are rendered.

(c) "Executive order" means Executive Order 11222 of May 8, 1965.

(d) "Member of the special Government employee's immediate household" means blood relations of the special Government employee who are permanent residents of the special Government employee's household.

(e) "Official responsibility" means "the direct administrative or operating authority, whether intermediate or final, and either exercisable alone or with others, and either personally or through subordinates, to approve, disapprove, or otherwise direct Government action." (18 U.S.C. 202(b).)

(f) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other group, organization or institution.

(g) "Serve" means to render services, whether with or without compensation.

(h) "Special Government employee" means a special Government employee as defined in section 202 of title 18 of the United States Code, who is employed by the Commission:

The term "special Government employee" shall mean an officer or employee of ⚫ • any independent agency of the United States ... who is retained, designated, appointed, or employed to perform, with or without compensation, for not to exceed 130 days during any period of 365 consecutive days, temporary duties either on a full-time or intermittent basis. * (18 U.S.C. 202(a).)

§ 3.735-25 Classification of special Government employees.

(a) FPC service. Classification as a special Government employee shall be made on the basis of an estimate of the number of days the Commission will require the services of the employee during the 365 days following his appointment

which shall not extend for more than 365 days. Only employees whose service is estimated at 130 days or less shall be classified as special Government employees. Despite inaccuracies, employees shall retain, throughout each 365-day period, the classification assigned on the basis of the estimate for that period. A part of a day shall be counted as a full day and a Saturday, Sunday, or holiday on which duty is to be performed shall be counted equally with a regular workday.

(b) Multiagency service. A special Government employee who undertakes to serve one or more other Federal departments or agencies shall inform the Federal Power Commission of his arrangements with the others. The Director, Office of Personnel Programs, Federal Power Commission, shall coordinate the classification of special Government employees with the designated coordinator in the other agencies. If the employee's appointments with two or more agencies are made on the same date the aggregate of the service estimates made by each agency shall be considered determinative of his classification by each. If after being employed by one agency, a special Government employee is appointed to serve in the same capacity by one or more other agencies, each agency shall make an estimate of the amount of the employee's service to it for the remaining portion of the 365-day period covered by the original estimate of the first agency. The sum of these estimates and of the actual number of days of the employee's service to the first agency during the prior portion of such 365day period shall be considered determinative of the employee's classification by each agency during the remaining portion.

[Order 319, 31 F.R. 4124, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 3, 1967]

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

(c) Outside compensation in matters affecting the Government. Special Government employees are prohibited from accepting any compensation, except as provided by law for the proper discharge of official duties, for any services rendered in relation to a particular matter involving a specific party or parties in which the United States is a party or has a direct and substantial interest and in which the special Government employee participated personally and substantially in the course of his Commission duties. Special Government employees who have served the Commission for more than 60 days during the immediately preceding period of 365 consecutive days are also subject to a similar prohibition with respect to matters pending before the Commission during their period of service, even though they have not participated personally and substantially in those matters (18 U.S.C. 203.)

(d) Financial interests. A special Government employee is prohibited, under penalty of fine or imprisonment, from participating personally and substantially as a Government officer or employee in any matter in which, to his knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner, or employee, or person with whom he is negotiating for employment, has a financial interest. However, this prohibition does not apply if, prior to such participation, and upon complete disclosure of the financial interest, the Chairman of the Commission determines that the interest in question is not so substantial as to affect the special Government employee's services to the Commission. (18 U.S.C. 208.)

(e) Gifts, entertainment, loans and favors. (1) Unless permitted by subparagraph (2) of this paragraph, a special Government employee, while so employed or in connection with his employment, shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, for himself or another person, particularly one with whom he has family, business, or financial ties, from any person who:

(i) Has, or is seeking to obtain, approval or denial by the Commission of actions required under statute, or the Commission's rules and regulations; or

(ii) Conducts operations or activities which are regulated by the Commission or concerning which determinations of status are pending before the Commission; or

(iii) Has, or is seeking to obtain, contractual or other business or financial relations with the Commission; or

(iv) Has interests which may be substantially affected by the performance or nonperformance of the special Government employee's official duty; or

(v) Is in any way attempting to influence the special Government employee's official actions.

(2) The requirements of subparagraph (1) of this paragraph do not apply to:

(1) Obvious family or personal relationships where circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors the clearest illustration being the parents, children or spouses of employees;

(ii) Acceptance of food and refreshments of nominal value on infrequent occasions in the course of a luncheon, dinner or other meeting or on an inspection tour where a special Government employee may properly be in attendance. Special Government employees on an inspection tour may also accept necessary arrangements for travel and lodging when no other reasonable alternatives are available.

(iii) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of the special Government employee, such as, for example, home mortgage loans.

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

(v) Receipt of a bona fide reimbursement for expenses for travel and such other necessary subsistence as is compatible with this Subpart D for which no Government payment or reimbursement is made except that a special Government employee may not be reimbursed, and payment may not be made on his behalf for excessive personal living expenses, gifts, entertainment, or other personal benefits. A special Government employee may not receive non-Government reimbursement for travel on official business pursuant to Commission or