counselors shall 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.

§ 1600.735-6 Reviewing statements and reporting conflicts of interest.

All statements of employment and financial interests submitted under § 1600.735-62 shall be forwarded to the Director of Selective Service through the counselor. The employee or special Government employee shall be given an opportunity to explain any conflict of interest or any appearance of conflict.

§ 1600.735-7 Disciplinary and other remedial action.

(a) In addition to any penalty prescribed by law appropriate disciplinary action shall be taken or initiated by the superiors of employees and special Government employees who violate laws, rules, or regulations on conduct or fail to observe the standards of conduct prescribed in this part.

(b) When, after consideration of the explanation of the employee or special Government employee provided by § 1600.735-6, the Director of Selective Service decides that remedial action is required, he shall 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

(a) Employees of the Selective Service System shall not solicit or accept, directly or indirectly, anything of economic value as a gift, gratuity, favor, entertainment, or loan which is, or may appear to be, designed to in any manner influence official conduct particularly from a person who:

(1) Is seeking to obtain contractual or other business or financial relations with the Selective Service System; or

(2) Has interests that may be substantially affected by the performance or nonperformance of this duty.

No gift shall be accepted whenever the employee has any reason to believe that it would not have been made except for his official position or that the donor's private interests are likely to be affected by his actions or actions of the Selective Service System.

(b) Appropriate exceptions to paragraph (a) of this section include 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 to 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, calen

dars, and other items of nominal intrinsic value.

(c) 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.

(d) 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 5 U.S.C. 7342.

1600.735

(e) Neither this section nor 22 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under agency orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or

(2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(b) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government.

(c) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law 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 Director of Selective Service gives written authorization for the use of nonpublic information on the basis that the use is in the public interest.

[32 F.R. 14947, Oct. 28, 1967, as amended by Amdt. 113, 34 F.R. 5293, Mar. 15, 1969] § 1600.735-23 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;

and shall not, directly or indirectly, make use of, or permit others to make use of, official information in the possession of the Selective Service System, not made available to the general public, for the purpose of furthering a private interest. Nothing in this section shall be construed as directing any employee to withhold unclassified information from the press or public. This section is intended solely to limit prior distribution of confidential information to an individual or group of individuals where the possession of such information would give the individual or individuals advantages not accorded to other citizens.

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

§ 1600.735-27 Gambling, betting, and lotteries.

An employee shall not participate, while on Government-owned or leased property or while on duty for the Government, 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 numbers slip or ticket. § 1600.735-28 General conduct prejudicial to the Government.

An employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government. The use of intoxicants in any space occupied by the Selective Service System is prohibited.

§ 1600.735-29 Miscellaneous statutory provisions.

Each employee shall acquaint himself with the statutes relating to his ethical

and other conduct as an employee including:

(a) House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. B12, the "Code of Ethics for Government Service". (Appendix C to this part.)

(b) Parts of Chapter 11 of title 18, United States Code relating to bribery, graft, and conflicts of interests. (Appendix A to this part.)

(c) Other laws concerning the conduct of employees. (Appendix B to this part.)

Subpart C-Ethical and Other Conduct and Responsibilities of Special Government Employees

§ 1600.735-41 Applicable regulations.

The ethical and other conduct of special Government employees shall be governed by this subpart and such other provisions of this part as may be specifically applicable.

A special Government employee shall not use his selective service 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.

§ 1600.735-43 Use of inside information.

(a) A special Government employee shall not use inside information obtained as a result of his selective service 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 part, "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 not inconsistent with § 1600.735-22 in regard to employees.

§ 1600.735-44 Coercion.

A special Government employee shall not use his selective service employment to coerce, or give the appearance of coercing, a person to provide financial ben

efit to himself or another person, particularly one with whom he has family, business, or financial ties. § 1600.735-45 favors.

Gifts, entertainment, and

(a) Except as provided in paragraph (b) of this section, a special Government employee, while so employed or in connection with his employment, shall not receive or solicit from a person having business with his agency anything of value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business, or financial ties.

(b) Special Government employees are subject to such appropriate exceptions as are authorized for employees in § 1600.735-21.

§ 1600.735-46 Miscellaneous statutory provisions.

Each special Government employee shall acquaint himself with the statutes relating to his ethical and other conduct referred to in § 1600.735-29. Subpart D-Regulations Governing Statements of Employment and Financial Interests

The statements of employment and financial interests required under this subpart for use by employees and special Government employees shall contain the information required by the Commission in the Federal Personnel Manual.

§ 1600.735-62 Employees required to submit statements.

Except as provided in § 1600.735-63, the Director of Selective Service shall require statements of employment and financial interests from the following:

(a) The Deputy Director of Selective Service.

(b) The Chief, Office of Public Information.

(c) The General Counsel.

(d) The Chief, Office of Legislation and Liaison.

(e) The Assistant Deputy Director for Operations.

(f) The Assistant Deputy Director for Administration.

(g) Each State Director of Selective Service.

(h) Employees paid at a level of the Executive Schedule in Subchapter II of chapter 53 of title 5, United States Code. Other positions may be designated from time to time by the Director of Selective Service.

(Sec. 10, 62 Stat. 618, as amended; 50 U.S.C. App. 460, E.O. 9979; 3 CFR, 1943-1949 Comp., p. 713) [Amdt. 117, 35 F.R. 10009, June 18, 1970]

§ 1600.735-62a Employee's complaint on filing requirement.

An employee required to submit a statement under the provisions of this part who believes that his position has been improperly included under § 1600.735-62 may have the decision to include the position reviewed under the Selective Service grievance procedures. § 1600.735-63 Employees not required to submit statements.

A statement of employment and financial interests is not required by this subpart from 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, 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.

§ 1600.735-64 Time and place for submission of employees' statements.

An employee required to submit a statement of employment and financial interests under the provisions of this part shall submit that statement to the Director of Selective Service not later than:

(a) Ninety days after the effective date of this part if employed on or before that effective date;

(b) Thirty days after his entrance on duty, but not earlier than ninety days after the effective date, if appointed after that effective date. § 1600.735-65

ments.

Supplementary

state

Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year. If no changes or additions occur, a negative report is required. Notwith

standing the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts-of-interest provisions of section 208 of title 18, United States Code, or Subpart B of this part. § 1600.735-66 Interests of employees'

relatives.

The interest of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, "member of an employee's immediate household" means those blood relations who are residents of the employee's household.

§ 1600.735-67 Information not known by employees.

If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf. § 1600.735-68 Information prohibited.

This subpart does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included in an employee's statement of employment and financial interests.

§ 1600.735-69 Confidentiality of employees' statements.

Each statement of employment and financial interests, and each supplementary statement, shall be held in confidence. The Director of Selective Serv

ice, or qualified employees designated by him, shall review and retain the statements. Employees so designated are responsible for maintaining the statements in confidence and shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purpose of this part. Information from a statement may not be disclosed except as the U.S. Civil Service Commission or the Director of Selective Service may determine for good cause shown. 1600.735-70 Effect of employees' statements on other requirements. The statements of employment and financial interests and supplementary statements required of employees are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, order, or regulation. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, order, or regulation. § 1600.735-71 Specific provisions for special Government employees.

(a) Each special Government employee shall submit a statement of employment and financial interest which reports:

(1) All other employment; and

(2) The financial interests of the special Government employee which the Director of Selective Service determines are relevant in the light of the duties he is to perform.

(b) The Director of Selective Service may waive the requirement of paragraph (a) of this section for the submission of a statement of employment and financial interests in the case of a special Government employee who is not a consultant or an expert when he finds that the duties of the position held by that 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 the purpose of this paragraph, "consultant" and "expert" have the meanings given those terms by Chapter 304 of the Federal Personnel Manual, but do not include: