735.103 Applicability to members of the uniformed services.

735.104 Issuance, approval, and publication of agency regulations.

735.105 Interpretation and advisory service.

735.106 Reviewing statements and reporting conflicts of interest.

735.107 Disciplinary and other remedial action.

Subpart B-Agency Regulations Governing Ethical and Other Conduct and Responsibilities of Employees

735.201 Specific provisions of agency regulations.

735.2018 Proscribed actions.

735.202 Gifts, entértainment, and favors. 735.203 Outside employment and other activity.

736.204 Financial interests.

735.205 Use of Government property. 735.206 Misuse of information.

Sec.

735.207 Indebtedness.

$735.101

735.208 Gambling, betting, and lotteries. 735.209 General conduct prejudicial to the Government.

735.210 Miscellaneous statutory provisions.

Subpart C-Agency Regulations Governing Ethical and Other Conduct and Responsibilities of Special Government Employees 735.301 Specific provisions of agency regu lations.

735.302 Use of Government employment. 735.303 Use of inside information. 735.304 Coercion.

735.305 Gifts, entertainment, and favors. 735.306 Miscellancous statutory provisions.

Subpart D-Agency Regulations Governing Statements of Employment and Financial interests

735.401 Form and content of statements. 735.402 Specific provisions of agency regulations for employees.

735.403 Employees required to submit

statements.

735.403a Employee's complaint on filing requirement.

735.404 Employees not required to submit

statements.

735.404a Interests not required to be reported.

735.405 Time and place for submission of employees' statements.

735.406 Supplementary statements. 735.407 Interests of employees' relatives. 735.408 Information not known by employ

735.409 Information not required.

735.410 Confidentiality of employees'

statements.:

735.411 Effect of employees' statements on other requirements.

735.412 Specific provisions of agency regu lations for special Government employ. ees.

AUTHORITY: Secs. 602, 701, 702; E.Ö. 11222, 3 CFR, 1964-1965 Comp., p. 306, unless otherwise noted, 18 U.S.C. 201 note.

SOURCE: 33 FR 12487, Sept. 4, 1968, unless otherwise noted.

Subpart A-General Provisions $735.101 Purpose.

The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by Government employees and special Government employees is essential to assure the proper performance of the Govern

(a) "Agency" means an Executive agency (other than the General Accounting Office) as defined by section 105 of title 5, United States Code, the Postal Service, and the Postal Ratc Commission.

(b) "Employee" means an employee of an agency, but does not include a special Government employee or a member of the uniformed services.

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

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

(e) "Special Government employee" means a "special Government employee" as defined in section 202 of title 18, United States Code, who is employed in the executive branch, but does not include a member of the uniformed services.

(f) "Uniformed services" has the meaning given that term by section 2101 of title 5, United States Code.

[33 FR 12487, Sept. 4, 1968, as amended at 36 FR 11999, June 24, 1971)

#735.103 Applicability to members of the uniformed services.

This part, except this section, is not applicable to members of the uniformed services. Each agency having jurisdiction over members of the uniformed services shall issue regulations covering those members and regulating their ethical and other conduct

Title 5-Administrative Personnel

and the reporting of employment and financial interests in a manner consistent with the Executive order and this part.

$735.104 Issuance, approval, and publication of agency regulations.

(a) Except as provided in paragraph (f) of this section, each agency head shall prepare, and submit to OPM for approval, regulations in accordance with this part that

(1) Implement the requirements of law, the Executive order, and this part; and

(2) Prescribe additional standards of ethical and other conduct and reporting requirements that are appropriate to the particular functions and activities of the agency and are not inconsistent with law, the Executive order. and this part.

(b) After OPM approval each agency head shall:

(1) Submit the agency's regulations to the FEDERAL REGISTER for publication;

(2) Furnish each employee and special Government employee a copy of the appropriate agency regulations (or a comprehensive summary thereof) within 90 days after approval;

(3) Furnish each new employee and special Government employee a copy of the appropriate agency regulations (or a comprehensive summary thereof) at the time of his entrance on duty:

(4) Bring the appropriate agency regulations to the attention of each employee and special Government employee annually, and at such other times as circumstances warrant;

(5) Assure the availability of counseling to each employee and special Government employee as provided in § 735.105; and

(6) Have available for review by employees and special Government employers, as appropriate, copies of laws. the Executive order, agency regulations, and pertinent OPM regulations and instructions relating to ethical and other conduct.

(c) Agency regulations issued under this part are effective only after approval by OPM and publication in the FEDERAL REGISTER.

(a) Each agency head shall designate a top-ranking employee of his agency who has appropriate experience, preferably legal, and in whom he has complete personal confidence, to be the counselor for the agency and to serve as the agency's designee to OPM on matters covered by this part. The counselor shall be made responsible for coordination of the agency's counseling services provided under paragraph (b) of this section and for assuring that counseling and interpretations on questions of conflicts of interest and other matters covered by this part are available to deputy counselors designated under paragraph (b) of this section.

(b) Each agency head shall designate deputy counselors for the agency's employees and special Government-employees. Deputy counselors designated under this section shall be qualified and in a position to give authoritative advice and guidance to each employee and special Government employee who seeks advice and guidance on questions of conflicts of interest and on other matters covered by this part.

(c) Each agency shall notify its employees and special Government employees of the availability of counsel

§ 735.107

ing services and of how and where these services are available. This notification shall be made within 90 days after approval of the agency regulations to be issued under this part, and periodically thereafter. In the case of a new employee or special Government employee appointed after this notification, notification shall be made at the time of his entrance on duty.

#735.106 Reviewing statements and re porting conflicts of interest.

(a) Agency regulations issued under this part shall establish a system for the review of statements of employ. ment and financial interests submitted under Subpart D of this part. The system of review shall be designed to disclose conflicts of interest or apparent conflicts of interest on the part of employees and special Government employees.

(b) The system of review established under paragraph (a) of this section shall provide that, when a statement submitted under Subpart D of this part or Information from other sources indicates a conflict between the interests of an employee or special Government employee and the performance of his services for the Gov. ernment and when the conflict or appearance of conflict is not resolved at a lower level in the agency, the information concerning the conflict or ap pearance of conflict shall be reported to the agency head through the counselor for the agency.

(c) The employee or special Government employee concerned shall be provided an opportunity to explain the conflict or appearance of conflict. $735.107 Disciplinary and other remedial action.

(a) Agency regulations issued under. this part shall provide that a violation of the agency regulations by an employce or special Government employee may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law. (b) When, after consideration of the explanation of the employee or special Government employee provided by 735.106, the agency head decides that remedial action is required, he shall

§ 735.201

take immediate action to end the conflicts or appearance of conflicts of interest. Remedial action may include, but is not limited to:

(1) Changes in assigned duties; (2) Divestment by the employee or special Government employee of his. conflicting interest;

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations.

Subpart B-Agency Regulations Govemning Ethical and Other Conduct and Responsibilities of Employees 8735.201 Specific provisions of agency regulations.

Agency regulations issued under this subpart, as a minimum, shall contain provisions covering the standards of and governing the ethical and other conduct of its employees set forth in 735.202 through 735.210.

§ 735.201a Proscribed actions.

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

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Government efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making a Government decision outside official channels; or

(f) Affecting adversely the confi dence of the public in the integrity of the Government.

8 735.202 Gifts, entertainment, and favors.

(a) Except as provided in paragraphs (b) and (f) of this section, an employee shall not solicit or accept, directly or 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 his agency;

Title 5-Administrative Personnel

(2) Conducts operations or activities that are regulated by his agency; or

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

(b) Agency regulations implementing paragraph (a) of this section may provide for such exceptions as may be necessary and appropriate in view of the nature of the agency's work and the duties and responsibilities of the employees. Appropriate exceptions which may be made by an agency include, but are not limited to, those that:

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

(2) Permit 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) Permit acceptance of loans from banks or other financial institutions on customary terms of finance proper and usual activities of employees, such as home mortgage loans; and

(4) Permit acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars and other items of nominal in trinsic value.

(c) (Reserved)

(d) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(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 sec