SECTION 1600.735-202. GIFTS, ENTERTAINMENT, AND FAVORS

(a) General limitations.-Employees shall not solicit or accept, directly or in-directly, 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 this agency;

(2) Conducts operations or activities that are regulated by this agency; (3) Has interests that may be substantially affected by the performance or nonperformance of his official duty.

(b) Exceptions.-Section 1600.735-202 (a) does not preclude:

(1) Acceptance of a gift, gratuity, favor, entertainment, loan, payment of expenses, fee, compensation, or other things of monetary value incident to obvious family or personal relationships (such as those between the employee and theparents, children, or spouse of the employee) when the circumstances make it clear that it is the family relationship rather than the business of the persons concerned which are the motivating factors;

(2) 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) Acceptance of loans from banks of other financial institutions on customary terms to finance proper and usual activities of employees such as homemortgage loans;

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

and

(5) Receipt of bona fide reimbursement, unless prohibited by law, for expenses for travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made, However, an 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, or for travel on official business proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

(c) Gifts to superiors.-An employee shall not solicit contributions from another employee for a gift to an employee in a superior official position. An employee in a superior official position shall not accept a gift presented as a contribution from employees receiving less salary than himself. An employee shall not make a donation as a gift to an employee in a superior official position (5) U.S.C. 7351). However, this does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion; i.e., marriage, illness, or retirement.

(d) Gifts from foreign governments.-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 Public Law 89-673, 5 U.S.C. 7342.

§ 1600.735-203

OUTSIDE EMPLOYMENT AND OTHER ACTIVITY

(a) General limitations: An employee shall not engage in outside employment or other 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 the mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner. (3) Receipt by an employee of any salary or anything of monetary value from a private source as compensation for his services to the Government (18U.S.C. 209).

(b) Employees are encouraged to engage in teaching, lecturing and writing that is not prohibited by law, the Executive order, this part, or the agency regulations. 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 Commission or Board of Examiners for the Foreign Service, that depends 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 agency head gives written authorization for use of nonpublic information on the basis that the use is in the public interest. In addition, an employee who is a Presidential appointee covered by section 401(a) of the order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of his agency, or which draws substantially on official data or ideas which have not become part of the body of public information.

(c) [Reserved]

(d) Exceptions: Section 1600.735-203 does not preclude:

(1) Participation in the activities of national or state political parties not proscribed by law.

(2) Participation in the affairs of, or acceptance of an award for, a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civil organization.

(3) Outside employment permitted under this part, including payments or reimbursements under § 1600.735-202 (b) (5).

(e) Procedure: An employee who engages in outside employment shall obtain this supervisor's approval in advance and shall inform the Personnel Division by memorandum.

$1600.735-204

An Employee shall not:

FINANCIAL INTERESTS

(a) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities;

or

(b) Engage in, directly or indirectly, as financial transaction as a result of, or primarily relying on, information obtained through his Government employment. This does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, the Executive order, or these regulations.

(a) Use of Government property.-An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him.

(b) Misuses of information.-For the purpose of furthering a private interest, an employee shall not, except as provided in § 1600.735–203(b), directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public.

(c) Indebtedness.-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. 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 the agency determines 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, the agency is not required to determine the validity or amount of his disputed debt.

(d) 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 number slip or ticket.

(e) 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.

(f) Miscellaneous statutory provisions.—Each employee shall acquaint himself with each statute that relates to his ethical and other conduct as an employee of the Government. Attention is specifically directed to the following statutory provisions:

(1) House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. B12, the "Code of Ethics for Government Service".

(2) Chapter 11 of Title 18, United States Code, relating to bribery, graft, and conflicts of interest, as appropriate to the employees concerned.

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

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

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

(6) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information (18 U.S.C. 1905).

(7) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

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

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

(10) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

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

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

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

(14) The prohibitions against (1) embezzlement of Government money or property (18 U.S.C. 641), (2) failing to account for public money (18 U.S.C. 643), and (3) 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).

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

(16) The prohibitions against political activities—in subchapter III of chapter 73 of Title 5, United States Code, and 18 U.S.C. 602, 607, and 608.

(17) The prohibition against an employee acting as an agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219). SUBPART C-CONDUCT AND RESPONSIBILITIES OF SPECIAL GOVERNMENT EMPLOYEES

$1600.735-301 LIMITATIONS

Special Government employees shall be subject to the same standards of conduct prescribed in Subpart B above for other employees, except § 1600.735-203 (a) (3), plus the following:

(a) Use of Government employment.—A special Government employee shall not use his Government 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.

(b) Use of inside information.-A special Government employee shall not use inside information obtained as a result of his Government 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 section "inside information" means information obtained under Government authority which has not become part of the body of public information. Such employees may teach, lecture, or write in a manner not inconsistent with § 1600.735-203(b) above.

(c) Coercion.-A special Government employee shall not use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or to another person, particularly one with whom he has family, business, or financial ties.

(d) Gifts, entertainment, and favors.—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.

(e) Miscellaneous statutory provisions.—Special Government employees are responsible for a knowledge of statutory obligations as outlined in § 1600.735205(f).

SUBPART D-STATEMENT OF EMPLOYMENT AND FINANCIAL INTERESTS

§ 1600.735-401 EMPLOYEES REQUIRED TO SUBMIT STATEMENTS

(a) The following categories of employees are determined by the EEOC, subject to the right of appear under § 1600.735-105, to be within the scope of 5 CFR 735-403, 735-404 and therefore they shall submit Statements of Employment and Financial Interests:

(1) Employees paid at a level of the Executive Schedule in Subpchapter II of Chapter 53 of Title 5 United States Code, except the members of the Commission who report under section 401 of Executive Order 11222.

(2) Employees in Grade GS-16 or above of the General Schedule in 5 U.S.C. 5332.

(3) Employees in the Office of Liaison engaged in grant or reimbursement activities classified at GS-13 or above of the General Schedule.

(4) Employees in the Office of Administration engaged in contracting or procurement activities who are classified at GS-13 or above of the General Schedule unless otherwise indicated, i.e., Director of Administration, Chief of Administrative Services. Contract Specialists, and Contract Specialist GS-12.

(b) Each special Government employee shall submit a Statement of Employment and Financial Interests showing all other employment and such financial interests as the agency determines are relevant in the light of the duties. he is to perform, except when this requirement is waived under 5 CFR 735.412 (c).

§ 1600.735-402 Statement of Employment and Financial Interests shall be submitted by employees covered by § 1600.735-401 within 60 days after issuance of this part for employees on the rolls at that time and for new employees within 30 days of their entrance on duty. Special Government employees will complete duplicate copies of the forms in appendix A at the time of entrance on duty. All other employees required to file Statements of Employment and Financial Interests will complete duplicate copies of the form in appendix B. The completed original of these forms will be sent to the Director of Personnel in a sealed envelope marked on the outside "Confidential Statement Enclosed." The duplicate copy will be retained by the employee. The Personnel Division shall retain files of the Statements of Employment and Financial Interests.

TIME AND PLACE FOR SUBMISSION OF EMPLOYEE STATEMENT

$1600.735-403 REVIEW OF STATEMENT OF EMPLOYMENT AND FINANCIAL INTERESTS The Director of Personnel shall review these statements for the purpose of disclosing any conflict of interest or apparent conflict of interest. If such conflict between the interests of an employee or special Government employee and the performance of his services for the Government are found, they shall be brought to the attention of the employee or special Government employee and he shall be granted the opportunity to explain the conflict and attempt to resolve it. If the indicated conflict cannot be resolved, the Director of Personnel should submit a written report with the recommendation for appropriate remedial action to the Chairman through the General Counsel.

§ 1600.735-404 SUPPLEMENTARY STATEMENTS

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. Notwithstanding 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 18 U.S.C. 208 or this part.

§ 1600.735-405 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.

§ 1600.735-406 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.

§ 1600.735-407 INFORMATION NOT REQUIRED

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, civil, 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.

§ 1600.753-408 CONFIDENTIALITY OF EMPLOYEES' STATEMENTS

The agency shall hold each Statement of Employment and Financial Interests, and each supplementary statement, in confidence. The Director of Personnel or other employee authorized to review or retain a statement are responsible for maintaining them 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. The agency may not disclose information from a statement except as the Civil Service Commission or the Chairman, EEOC, may determine for good cause shown.

§ 1600.753-409 EFFECT OF EMPLOYEES' STATEMENTS ON OTHER REQUIREMENTS The Statements of Employment and Financial Interest and supplementary statements 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 he or the other person's participation is prohibited by law, order, or regulation.

PART 1601-PROCEDURAL REGULATIONS Sec.