(e) Certain provisions in 18 U.S.C. 201-209, dealing with conflicts of interest in Federal employment are referred to in §§ 0.735-21 through 0.735-27. § 0.735-21 Acts affecting a personal financial interest (based on 18 U.S.C. 208).

(a) General. Except as permitted by paragraphs (b), (c), and (d) of this section, no employee shall participate personally and substantially as a Government officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular 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 any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest.

(b) Granting of ad hoc exemptions. (1) If an employee desires to request an exemption from the prohibition of paragraph (a) of this section, he shall fully inform the field office manager, or the head of division or office, Headquarters, as appropriate, in writing of the nature and circumstances of the particular matter and of the financial interests involved and shall request a written determination in advance as to the propriety of his participation in such matter.

(2) The field office manager, or the head of division or office, Headquarters, as appropriate, after examining the information submitted, may relieve the employee from participation in the particular matter and so advise him in writing; or, he may approve the employee's participation in such matter upon advising him in writing:

(i) That he has determined the 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, and

(ii) That no provision of law and no regulation in this part would appear to be violated by the employee's participation in the particular matter.

(3) When the field office manager, or head of division or office, Headquarters, believes it is inappropriate for him to make a determination as provided in

subparagraph (2) of this paragraph, he shall forthwith submit the information with his recommendation through channels to the General Manager or to the Director of Regulation, as appropriate, who shall make a determination as provided in subparagraph (2) of this paragraph, forwarding the original of his determination to the submitting official and a copy to the employee involved.

(4) A copy of each request and response made under the provisions of subparagraphs (1) and (2) of this paragraph shall be forthwith forwarded through channels to the General Manager, or the Director of Regulations, as appropriate, as a matter of record. Copies of all documents referred to in subparagraphs (1), (2), and (3) of this paragraph shall be filed by the holders thereof in their confidential files.

(5) Whenever it can be reasonably anticipated that there will be a need to invoke these procedures repeatedly, and where it also appears that a burden would be placed on the AEC thereby, consideration should be given by the field office manager or head of division or office, Headquarters, to dismissal or transfer of the employee to another position where the problems will not arise, or to the elimination of the outside interest creating the difficulty. It is expected that the employee concerned will take the initiative in resolving any problem in this area.

(c) Exemption of remote or inconsequential financial interests.1 (1) In accordance with the provisions of 18 U.S.C. 208(b) (2) the AEC has exempted the following financial interests from paragraph (a) of this section and from the requirements of paragraph (b) of this section, upon the ground that such interests are too remote or too inconsequential to affect the integrity of its employees' services:

(i) Financial interests in an enterprise in the form of shares in the ownership thereof, including preferred and common stocks whether voting or nonvoting, and warrants to purchase such shares;

(ii) Financial interests in an enterprise in the form of bonds, notes, or other evidences of indebtedness;

(iii) Investments in State or local government bonds and investments in shares of a widely held diversified mutual fund or regulated investment company,

1 Effective upon publication in the FEDERAL REGISTER on March 14, 1964, at 29 F.R. 3392.

except holdings in mutual investment funds or regulated investment companies dealing primarily in atomic energy stocks.

Provided, That, in the case of subdivisions (i) and (ii) of this subparagraph: (a) The total market value of the financial interests described in said subdivisions with respect to any individual enterprise does not exceed $7,500; and (b) the holdings in any class of shares, or bonds, or other evidences of indebtedness, of the enterprise do not exceed 1 percent of the dollar value of the outstanding shares, or bonds or other evidences of indebtedness in said class.

(2) Where a person covered by this exemption is a member of a group organized for the purpose of investing in equity or debt securities, the interest of such person in any enterprise in which the group holds securities shall be based upon said person's equity share of the holdings of the group in that enterprise.

(3) For purposes of subparagraph (1) of this paragraph, computations of dollar-value of financial interests in corporations shall be by means of:

(i) Market value in the case of stocks listed on national exchanges; or

(ii) Over-the-counter market quotations as reported by the National Daily Quotation Service in the case of unlisted stocks; or

(iii) By means of net book value (i.e. assets less liabilities) in the case of stocks not covered by the preceding two categories.

With respect to debt securities, face value shall be used for valuation purposes.

(4) The dollar value and percentage of financial interests listed above in subparagraph (1) of this paragraph shall be computed as of the date on which the employee first participated personally and substantially in any particular matter, within the meaning of 18 U.S.C. 208(a), relating to the enterprise concerned.

The dollar value and percentage so computed shall govern during the entire period that the employee participates in the particular matter unless, after the aforesaid date of computation, he, or other person or organization referred to in paragraph (a) of this section, acquires an additional interest in the same enterprise. In the event of such subsequent acquisition, the dollar value and percentage shall be recomputed as of the date of such acquisition. If, in

such case, the dollar value and percentage computed exceeds the limitations described in subparagraph (1) of this paragraph, the general exemption provided therein shall no longer be applicable and an ad hoc exemption must be sought in accordance with paragraph (b) of this section.

(d) Special exemption for special Government employees. Federal Personnel Manual Chapter 735, Appendix C provides that a special Government employee should in general be disqualified from participating as such in a matter of any type the outcome of which will have a direct and predictable effect upon the financial interests covered by 18 U.S.C. 208. However, that chapter states that the power of exemption may be exercised in this situation "if the special Government employee renders advice of a general nature from which no preference or advantage over others might be gained by any particular person or organization." It is the policy of the Atomic Energy Commission in conformity with the foregoing, to exercise the power of exemption pursuant to 18 U.S.C. 208(b) in such situations. The authority to grant such an exemption is delegated to the AEC official responsible for appointment or designation of the particular consultant or advisor. This exemption is noted on the form AEC-443 by the appointing official for the consultant or advisor concerned, by a statement that the employee "need not be precluded from rendering general advice in situations where no preference or advantage over others might be gained by any particular person or organization."

§ 0.735-22 Future employment (based on 18 U.S.C. 208).

(a) Solicitation, negotiation, or arrangements for private employment by an employee who is acting on behalf of the AEC in any particular matter in which the prospective employer has a financial interest are prohibited. With the authorization of his supervisor, an employee may be relieved of any assignment which, in the absence of such relief, might preclude such solicitation, negotiation, or arrangements.

(b) No employee shall undertake to act on behalf of the AEC in any capacity in a matter that to his knowledge affects even indirectly any party outside the Government with whom he is soliciting, negotiating, or has arrangements for future employment, except pursuant to

the authorization of the General Manager, or the Director of Regulation, as appropriate, after full disclosure, or in the case of a field employee, the field office manager under whom he is employed. (See $0.735-21.)

§ 0.735-23 Activities of officers and employees in claims against and other matters affecting the Government (based on 18 U.S.C. 205).

(a) No employee shall otherwise than in the proper discharge of his official duties:

(1) Act as agent or attorney for prosecuting any claim against the United States, or receive any gratuity, or any share of or interest in any such claim in consideration of assistance in the prosecution of such claim, or

(2) Act as agent or attorney for anyone before any department, agency, court, court-martial, officer, or any civil, military, or naval commission in connection with any proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which the United States is a party or has a direct and substantial interest.

(b) A special Government employee shall be subject to paragraph (a) of this section only in relation to a particular matter involving a specific party or parties (1) in which he has at any time participated personally and substantially as a Government employee or as a special Government employee through decision, approval, disapproval, recommendation, the rendering of advice, investigation or otherwise, or (2) which is pending in the department or agency of the Government in which he is serving: Provided, That subparagraph (2) of this paragraph shall not apply in the case of a special Government employee who has served in such department or agency no more than 60 days during the immediately preceding period of 365 consecutive days.

(c) Nothing in paragraph (a) of this section prevents an employee, if not inconsistent with the faithful performance of his duties, from acting without compensation as agent or attorney for any person who is the subject of disciplinary, loyalty, or other personnel administration proceedings in connection with those proceedings.

(d) Nothing in paragraph (a) of this section prevents an employee from acting, with or without compensation, as

as

agent or attorney for his parents, spouse, child, or any person for whom, or for any estate for which, he is serving guardian, executor, administrator, trustee, or other personal fiduciary except in those matters in which he has participated personally and substantially as a Government employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, or which are the subject of his official responsibility, provided that the General Manager, the head of a division or office, Headquarters, or a field office manager, as appropriate, approves.

(e) (1) Nothing in paragraph (a) of this section prevents a special Government employee from acting as agent or attorney for another person in the performance of work under a grant by, or a contract with or for the benefit of, the United States when represented by the AEC provided that the General Manager shall certify in writing that the national interest so requires. Such certification shall be submitted for publication in the FEDERAL REGISTER.

(2) The special Government employee shall immediately notify the AEC when so designated to act as agent or attorney by his private employer.

(f) Nothing in paragraph (a) of this section prevents an employee from giving testimony under oath or from making statements required to be made under penalty for perjury or contempt.

§ 0.735-24 Receiving salary from source other than the U.S. Government (based on 18 U.S.C. 209).

(a) No employee shall receive any salary, or any contribution to or supplementation of salary, as compensation for his services as an employee of the AEC from any source other than the Government of the United States, except as may be contributed out of the treasury of any State, county, or municipality.

(b) Nothing in paragraph (a) of this section prevents an employee of the AEC 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.

(c) Paragraph (a) of this section does not apply to a special Government employee or to an employee of the Government serving without compensation,

whether or not he is a special Government employee.

(d) Paragraph (a) of this section does not prohibit acceptance of contributions, awards, or other expenses under the terms of the Government Employees Training Act (Public Law 85-507, 72 Stat. 327; 5 U.S.C. 2301-2319, July 7, 1958). See AEC Appendix 4150.

§ 0.735-25 Compensation to employees in matters affecting the Government (based on 18 U.S.C. 203).

(a) No employee shall, otherwise than as provided by law for the proper discharge of official duties, directly or indirectly receive or agree to receive, or ask, demand, solicit, or seek, any compensation for any services rendered or to be rendered either by himself or another in relation to any proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which the United States is a party or has a direct and substantial interest, before any department, agency, court-martial, officer, or any civil, military, or naval commission.

(b) A special Government employee shall be subject to paragraph (a) of this section only in relation to a particular matter involving a specific party or parties (1) in which he has at any time participated personally and substantially as a Government employee or as a special Government employee through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, or (2) which is pending in the department or agency of the Government in which he is serving: Provided, That subparagraph (2) of this paragraph shall not apply in the case of a special Government employee who has served in such department or agency no more than 60 days during the immediately preceding period of 365 consecutive days.

§ 0.735-26 Disqualification of former officers and employees in matters connected with former duties or official responsibilities (based on 18 U.S.C. 207).

(a) No employee, after his employment has ceased, shall knowingly act as agent or attorney for anyone other than the United States in connection with any judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter involving a specific party or par

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ties in which the United States is a party or has a direct and substantial interest and in which he participated personally and substantially as an employee,

through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, while so employed.

(b) No employee, within 1 year after his employment has ceased, may 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 proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter involving a specific party or parties in which the United States is a party or directly and substantially interested, and which was under his official responsibility as an employee of the Government at any time within a period of 1 year prior to the termination of such responsibility.

(c) Nothing in paragraph (a) or (b) of this section prevents a former employee with outstanding scientific or technological qualifications from acting as attorney or agent or appearing personally in connection with a particular Imatter in a scientific or technological field if the General Manager or the Commission, as appropriate, shall make a certification in writing, submitted for publication in the FEDERAL REGISTER, that the national interest would be served by such action or appearance by the former employee.

(d) A former AEC employee who desires to request for himself an exception to the legal restrictions set forth above on the basis of "scientific or technological" grounds may do so by submitting a written request to the head of the AEC office with which he would do business, who in turn will forward it to the General Manager with his recommendation. The General Manager, if he approves the exception, shall advise the former employee in writing through the AEC office with which he applied and shall submit for publication in the FEDERAL REGISTER a statement to the effect that:

(1) The former employee has outstanding scientific or technological qualifications;

(2) The exception provided by 18 U.S.C. 207(b) is granted for a particular matter in a scientific or technological field; and

(3) The national interest would be served by granting the exception.

§ 0.735-27 Appearances by former employees before AEC.

When a former employee proposes to act as agent or attorney before an AEC office on behalf of anyone other than the United States in connection with any of the matters cited in § 0.735-26, he is expected to make known to the appropriate official of the AEC office the fact of his former assignment with AEC. The manager of the field office or the head of the division or office, Headquarters, or employee before whom the former employee appears, before transacting business with the former employee or authorizing employees under his jurisdiction to transact any business with the former employee, shall call the former employee's attention to the restrictions and penalties contained in 18 U.S.C. 207. No AEC official or employee, except the General Counsel, shall offer to the former employee an interpretation of 18 U.S.C. 207 as applied to the situation at hand.

§ 0.735-28 Confidential statements of

employment and financial interests. (a) Categories of employees required to submit statements.1 The following employees2 shall submit statements of employment and financial interests, prepared in accordance with paragraph (d) of this section:

(1) Employees paid at a level of the Federal Executive Salary Schedule established by the Federal Executive Salary Act of 1964, as amended.

(2) Employees in grade GS-16 or above, or in comparable or higher positions (including scientific and technical [STS] positions).

(3) Employees in hearing examiner positions.

(4) All consultants (including advisers and experts) (see AEC Manual Chapter

1 Section 401 of Executive Order 11222 established separate reporting requirements for an agency head, a Presidential appointee in the Executive Office of the President who is not subordinate to the head of an agency in that Office, and a full-time member of a committee, board, or commission appointed by the President.

2 As used in § 0.735-28, the term "employee," except as otherwise indicated, includes regular Government employees, special Government employees, and members of the Uniformed Services and employees of other Government agencies assigned or detailed to the AEC.

4139) and special Government employees. (A special Government employee who is not a consultant is not required to submit a statement of employment and financial interests when the operating [appointing] official finds that the duties of the position held by the special Government employee are of a nature and at such a level of responsibility that the submission of the statement by the incumbent is not necessary to protect the integrity of the Government. For this purpose, "consultant" and “expert” have the meaning given those terms by Chapter 304 of the Federal Personnel Manual but do not include a physician, dentist, or allied medical specialist whose services are procured to provide care and service to patients.)

(5) Employees in positions or categories of positions, regardless of their official title, identified in Annex B to this part.

(b) Annex B. (1) Annex B to this part shall be maintained and changes therein made by the Atomic Energy Commission in accordance with the criteria set forth in Annex C to this part.

(2) Heads of Divisions and Offices, Headquarters, and Managers of Field Offices shall, in conformity with the above referenced criteria, recommend changes in Annex B to the Commission, the General Manager, or the Director of Regulation, as appropriate, for approval.

(3) Incumbents of positions added to Annex B shall become subject to the reporting requirements of this part upon receipt of notification as to same, pursuant to paragraph (c) of this section. Annex B shall be republished to reflect changes in the list.

(c) Notice to employees of time and place to submit statements. Regular Government employees required to submit statements shall be notified in writing of that fact by the Managers of Field Offices or the Assistant General Manager for Administration (for Headquarters employees), or by persons designated by them. The notice shall be accompanied by three copies of the statement form and shall tell the employee to which official he shall submit his statement (see par. (h) of this section). Such employee shall submit his statement to the designated official not later than:

(1) 90 days after the effective date of the regulations in this part if employed on or before that effective date; or

(2) 30 days after his entrance on duty but not earlier than 90 days after the