(d) Working materials. Official inspection personnel shall have available for their use and shall familiarize themselves with the provisions of the Act, the official grain standards, the regulations, and the instructions. Such personnel shall also have a working knowledge of the mandatory and the permissive inspection services which are available under the Act and shall help interested persons determine which type and kind (scope) of service is needed or desired.

(e) Reporting changes. Each licensee shall promptly inform the field office of any change in the scope or sphere of his duties, or of his employment, or any suspension of his official inspection activities for such length of time as would impair the inspection services at any location within his designated inspection area.

(f) Reporting violations. Official inspection personnel shall immediately report to their immediate supervisor (1) evidence coming to their knowledge which shows or tends to show a violation of or a noncompliance with any of the provisions of the Act, the regulations, or the instructions issued by the Administrator, and (2) evidence of any instructions which have been issued to them by any other official inspection personnel which are contrary to or inconsistent with the Act, the regulations, or the instructions.

(g) Related duties. Official inspection personnel should assist in training official inspection agency employees who desire to become licensees. Upon request of the Administrator, such personnel may assist in examining applicants for competency.

(h) Warehouse samplers. Each elevator or warehouse employee who is licensed to obtain warehouseman's samples shall maintain such records and submit such reports pertaining to his sampling functions as may be prescribed in the instruction.

(i) Instruction by Administrator. Official inspection personnel shall execute diligently all instructions issued to them by the Administrator either in writing or orally and, upon request, shall inform the Administrator in full detail of any facts regarding inspection equipment used by them, inspection services performed by them, and compensation received for such services: Provided, That instructions issued by the Administrator to employees of official inspection agencies shall insofar as practicable, be issued after consultation with the official inspection agencies.

(j) Joint responsibilities. In the administration and enforcement of the Act, each official inspection agency and official inspection personnel employed by such agency shall be deemed to be jointly and severally liable for the duties which are assigned to the inspection personnel. The failure of a grain inspection agency shall not be deemed to diminish the responsibility of a licensee employed by such agency to comply with all applicable provisions of the Act, the regulations, and the instructions.

§ 26.86 Standards of conduct for official inspection personnel.

(a) General. High standards of honesty, integrity, impartiality, and other aspects of conduct must be met by official inspection personnel to assure proper performance of their duties and responsibilities and

to maintain the confidence of the grain industry and the public in the official grain inspection service. The confidence in the service depends not only on the manner in which the personnel perform their duties and responsibilities, but also on the way the personnel conduct themselves in the eyes of the public.

(b) Authorized employees. Authorized employees of the Department of Agriculture are subject to the standards of conduct prescribed by (1) paragraphs (d) through (f) of this section, and (2) Part 0 of this Title 7 covering employee responsibilities and conduct.

(c) Licensees. Licensees shall be subject to the standards of conduct prescribed by paragraphs (d) through (f) of this section.

(d) Prohibited conduct-general. Subject to the guarantees of the Constitution of the United States, and except as provided in subparagraphs (4) and (6) of this paragraph, licensees are specifically prohibited from:

(1) Engaging in criminal, dishonest, or notoriously disgraceful conduct, or other conduct prejudicial to the Department of Agriculture. (2) Making unwarranted criticisms or accusations against other licensees or employees of the Department of Agriculture.

(3) Refusing to give testimony or respond to questions made in connection with official inquiries or investigations.

(4) Soliciting contributions from other licensees, or making a donation, for a gift to an employee of the Department of Agriculture. (The restrictions in this paragraph shall not be deemed to prohibit activities incident to the voluntary giving or acceptance of gifts of nominal value made on special occasions such as retirement.)

(5) Reporting for duty in an intoxicated condition or consuming intoxicating beverages while on duty.

(6) Taking any action, whether or not specifically prohibited by this paragraph, which might result in, or create the appearance of (i) losing complete independence or impartiality; or (ii) affecting adversely the confidence of the public in the integrity of the official grain inspection service. (The restrictions in this subparagraph shall not be deemed violated by licensed employees of grain elevators or warehouses merely because of their employment.)

(e) Outside (nonofficial) activities. No licensee other than a licensed employee of a grain elevator or warehouse shall perform or be engaged in any outside (nonofficial) work or activity:

(1) If the efficiency of the licensee may be impaired by the performance of the outside duties; that is where the outside duties are of such onerous or fatiguing nature as to injure his health or to prevent him from doing his best work during his official hours;

(2) If the outside work or activity may be construed by the public to be the official acts of the licensee (Forms or reports, if any, used in the performance of duties other than official inspection duties shall not contain or show any of the following information or statements: (i) The words "Official Grain Inspection Certificate"; (ii) any grade shown in the official grain standards: (iii) the terms U.S. Grain Standards or official grain standards; (iv) any information or statements which would conflict with information and statements shown on an official certificate; or (v) the titles. Official Grain Sampler, Official Grain Technician, or Official Grain Inspector.);

(3) If the business connections to be established or property interests to be acquired may result in a conflict between the private interest of the licensee and his official duty; or

(4) If such employment or activity may tend to bring criticism on or cause embarrassment to the Department of Agriculture.

(f) Activities with form organizations. (1) No licensee shall participate actively in meetings or in other activities concerned with the establishment of general or specialized farm organizations, or with recruiting members for existing organizations such as the national, regional, State, and local organizations of the National Grange, the American Farm Bureau Federation, the Farmers' Union, the National Farmers Organization, the National Association of Soil Conservation Districts, the National Rural Electric Cooperative Association, the National Council of Farmer Cooperatives and Breed and Commodity Organizations. This is a necessary corollary of the equally long-established policy of the Department of Agriculture that it shall deal fairly with all organizations and deal with each upon the same basis. As a continuation of this policy, it should be understood by licensees that it is not permissible for any of them to:

(i) Participate in establishing any general or specialized farm organization:

(ii) Act as organizer for any such organization, or hold any other office therein;

(iii) Act as financial or business agent for any such organization; (iv) Participate in any way in any membership campaign or other activity designed to recruit members for any such organization;

(v) Accept the use of free office space or contributions for salary or traveling expense from any such organization;

(vi) Advocate that any particular general or specialized organization of farmers is better adapted for carrying out the work of the Department of Agriculture than any individual citizen, group of citizens or organizations;

(vii) Advocate that the responsibilities of any agency of the Department of Agriculture or any other Federal agency should be carried out through any particular general or specialized organization of farmers; or

(viii) Advocate or recommend that any State or local agency should carry out its responsibilities through any particular general or specialized organization of farmers.

(2) The restrictions set forth in this section do not:

(i) Apply to specialized organizations of farmers such as cow testing associations and similar groups; or

(ii) Prohibit licensees from participating in the organization of groups that are needed in carrying out Federally authorized programs, for example, an REA cooperative, and similar groups determined by the Administrator to be essential in effectuating Federally authorized programs.

$26.87 Conflicts of interest.

(a) General. Section 11 of the Act prohibits official inspection personnel from (1) being financially interested (directly or otherwise) in any business entity owning or operating any grain elevator or warehouse or engaged in the merchandising of grain, or (2) being in

the employment of, or accept gratuities from, any such entity, or (3) being engaged in any other kind of activity specified by regulation of the Secretary as involving a conflict of interest: Provided, however, That the Secretary may license qualified employees of any grain elevator or warehouse to perform official sampling functions, under such conditions as the Secretary may by regulations prescribe, and the Secretary may by regulation provide such other exceptions to the restrictions of section 11 of the Act as he determines are consistent with the purposes of this Act.

(b) Interpretations. (1) A person will be deemed to be financially interested in a business entity owning or operating a grain elevator or warehouse or engaged in the mechandising of grain if he (i) holds any appointive or elective office or position in any national, regional State, or local grain industry group, organization, or association: Provided, That a grain inspection group, organization or association shall not be deemed to be a grain industry group, organization, or association; or (ii) is employed by or otherwise works for any association, corporation, or other business entity owned or composed, in whole or in part, by persons who are financially interested in a grain elevator or warehouse or who are engaged in the merchandising of grain: Provided, That this restriction will not apply if neither such business entity, nor any of its officers or members, give any technical advice or technical direction to the official inspection personnel, or otherwise exercise any control, direct or indirect, over any of the technical aspects of the official inspection functions: Provided further, That the physical presence of any officer or member of such a business entity in the inspection or testing quarters assigned to the official inspection personnel may, in the absence of a specific invitation by the personnel, be deemed to be a control, direct or indirect, over the technical aspects of the official inspection functions performed by such personnel.

(2) A person will be deemed to be engaged in the merchandising of grain if he is engaged in the business of buying, selling, transporting, cleaning, elevating, storing, binning, mixing, blending, drying, treating, fumigating, or other preparation of grain (other than as a grower of grain, or the disposition of inspection samples); or in the business of cleaning, treating, or fitting of carriers or containers for transporting or storing grain; the merchandising for non-farm use of equipment for cleaning, drying, treating, fumigating, or otherwise processing, handling, or storing grain; or the merchandising of grain inspection equipment (other than buying or selling by official inspection personnel of such equipment for use in performance of their official inspection functions): Provided, That licensed employees of grain elevators or warehouses may obtain warehouseman's samples, as provided in § 26.6(d).

(3) A "gratuity" will be deemed to include any fee or charge in excess of the published fee or charge or any favor, gift, loan, unusual discount, service, entertainment, or other thing of monetary value furnished to official inspection personnel in circumstances in which acceptance could result, or create the appearance of resulting in (i) the use of their office for undue private gain; (ii) an undertaking to give undue preferential treatment to any person; or (iii) any other loss of complete independence or impartiality in performance of official inspection functions.

(c) Other conflicts. The kinds of activities specified in subpara

graphs (1) and (2) of this paragraph shall also be deemed to involve a conflict of interest if engaged in by official inspection personnel.

(1) No official inspection personnel shall participate (directly or otherwise) in any transaction concerning the purchase or sale of corporate stocks or bonds, commodities, or other property for speculatives purposes if such action might tend to interfere with the proper and impartial performance of his duties or bring discredit upon the Department of Agriculture. Licensees and employees are not prohibited by this paragraph fom making bona fide investments.

(2) No official inspection personnel shall coerce or give the appearance of coercing any person to provide special or undue benefits to themselves as licensees or authorized employees.

(d) Reports of interests. Official inspection personnel shall report such information regarding their employment or other business interests as may be required at any time by the Administrator. (The filing of such reports, or the filing of an application for a license as provided in § 26.77, does not permit a licensee or authorized employee to have a conflict of interest prohibited by the Act or the regulations.)

(e) Avoiding conflicts of interest. Each licensee and each authorized employee shall at all times avoid acquiring any financial interest or engaging in any activity that would result in a violation of this section or § 26.86 or other violation of section 11 of the Act and shall not permit his spouse, minor children, or any blood relative who reside in his immediate household to acquire any such interest or engage in any such activity. For the purpose of this section, the interest. of a spouse, minor child, or blood relative who is a resident of a licensee's or an authoritzed employee's immediate household shall be considered to be an interest of the licensee or employee.

(f) Disposition of conflicting interests. (1) Upon being advised that certain employment or other interest is in conflict with his official duties and that remedial action is required, the applicant, licensee, or authorized employee shall take immediate action to end the conflict of interest and advise the responsible officials of action taken in this respect.

(2) An applicant, licensee, or authorized employee who believes that remedial action will cause undue hardship may request a review and modification by forwarding to the Administrator either directly or through the field office, a written statement setting forth all the facts and circumstances with the reasons for the request or modification.

(3) If a final determination is made that a conflict of interest does, in fact, exist, failure to take immediate action to end the conflict of interest shall subject an applicant to the dismissal of his application; a licensee to administrative action against his license and criminal prosecution; and an authorized employee to disciplinary action and criminal prosecution.

§ 26.88 Other prohibited actions by official inspection personnel.

(a) General. In addition to the prohibitions or restrictions prescribed in the Act, and the applicable regulations, official inspection personnel shall also be subject to the prohibitions in paragraphs (b) through (f) of this section.

(b) Instructions by supervising licensees. No chief inspector or supervisory licensee shall issue to licensees under his supervision any