(g) No employee shall use public office to obtain or coerce private gain for himself or any other person.

(h) No employee shall make a Government decision outside official channels.

(i) No employee shall take any action which would adversely affect the confidence of the public in the integrity of the Government.

RESTRICTIONS RELATING TO FORMER SBA EMPLOYEES

§ 105.401 Acting as representative in matter previously under official responsibility of former employee.

No former employee may, within two years after his employment with SBA has ceased, appear before SBA or in any proceeding conducted by or on behalf of SBA, or in which SBA has an interest, as agent, attorney or representative, or make any oral or written communications to SBA with intent to influence, in connection with any claim, determination or other specific matter which was under his official responsibility within one year prior to the termination of his employment. [47 FR 12334, Mar. 23, 1982]

$105.402 Acting as representative in matter in which former employee personally participated.

No former employee may ever, after his employment with SBA has ceased, appear as agent, attorney or representative before SBA or in any proceeding conducted by or on behalf of SBA, or in which SBA has an interest, or make any oral or written communication to SBA with intent to influence, in connection with any claim, determination or other specific matter in which he participated personally and substantially while an employee through decision, approval, disapproval, recommendation, the rendering of advice, investigation or otherwise.

[47 FR 12334, Mar. 23, 1982]

$105.403 Employment of former employee by person previously the recipient of SBA assistance.

No former employee, who occupied a position involving discretion or who exercised discretion with respect to the granting of SBA assistance or the ad

ministration of such assistance, may accept or retain a position as employee, partner, agent, attorney or otherwise with a concern which has received this SBA assistance for a period of two years following the date of such assistance if

(a) The date of such assistance or such administrative act with respect thereto was within the period of the employee's term of employment, or;

(b) The date of such assistance or such administrative act with respect thereto was within one year following the termination of such employment. Failure of a recipient of SBA assistance to comply with these provision may result, in the discretion of SBA, in the requirement for immediate repayment of SBA financial assistance, the immediate termination of other assistance involved or other appropriate action.

[41 FR 29656, July 19, 1976, as amended at 47 FR 12334, Mar. 23, 1982]

$105.404 SBA assistance to person employing former SBA employee.

(a) SBA shall not provide assistance to any person who has as an employee, owner, partner, attorney, agent, owner of stock, officer, director, creditor or debtor, any individual who, within one year prior to the request for such assistance was an SBA employee, without the prior approval of the SBA Standards of Conduct Counselor. The Standards of Conduct Counselor will refer matters of a controversial nature to the Standards of Conduct Committee for final decision. On all matters the decision of the Standards of Conduct Counselor is final.

(b) In reviewing applications for assistance, the Standards of Conduct Counselor will consider:

(1) The relationship of the former employee with the applicant concern;

(2) The nature of the SBA assistance requested;

(3) The position held by the former employee with SBA and its relationship to the assistance requested; and

(4) The appearance of a possible conflict of interest that might arise if the assistance were anted.

$105.405 Personal appearance by former Senior Employee in matter in which he personally participated.

No former SBA Senior Employee may, within two years after his employment has ceased, assist by personal presence, another person in representations in any formal or informal appearance before SBA or in any formal or informal proceeding conducted by or on behalf of SBA, or in which SBA has an interest, in connection with any claim, determination or other specific matter in which he participated personally and substantially while an SBA Senior Employee through decision, approval, disapproval, recommendation, the rendering of advice or otherwise.

[47 FR 12334, Mar. 23, 1982]

§ 105.406 Involvement by former Senior Employee in SBA decisional

matters.

No former SBA Senior Employee may, within one year after his employment has ceased, make any formal or informal appearance before SBA or in any proceeding conducted by or on behalf of SBA as agent, attorney or representative or make any oral or written communication to SBA with intent to influence, in connection with any matter, whether or not dealing with a particular person or particular persons, which involves a decision, ruling, approval, disapproval, investigation, rulemaking or similar determination by SBA.

[47 FR 12334, Mar. 23, 1982]

$105.407 Proceedings for debarment

from appearances before SBA for violations of post employment restrictions contained in 18 U.S.C. 207 (a), (b) and (c).

(a) SBA may, in accordance with section 207(j) of 18 U.S.C. (included in the Ethics in Government Act of 1978, Pub. L. 95-521, as amended), as an administrative penalty for violation of 18 U.S.C. 207 (a), (b) or (c), prohibit a former SBA employee from making, on behalf of any other person, any informal or formal appearance before or, with intent to influence, any oral or written communication to SBA on a pending matter for a period not to exceed five years, or take other appro

priate disciplinary action. SBA administrative proceedings for such purpose shall be conducted in accordance with the provisions of part 134 of this chapter. The Assistant Administrator of the Office of Hearings and Appeals or an Administrative Law Judge of such office shall be the reviewing official for purposes of § 134.34.

(b) The Standards of Conduct Committee (established pursuant to § 105.801) after reviewing all available information, may determine that there is reasonable cause to believe that a former employee (referred to in this section as Respondent) has violated 18 U.S.C. 207 (a), (b), or (c). This determination shall be set forth in a Report (Report) containing the relevant facts and inferences therefrom, and a recommendation for sanctions and/or disciplinary action, within the limitations of paragraph (a) of this section.

(c)(1) A copy of this Report and any appropriate comments will be provided to the Director of the Office of Government Ethics and, in coordination with the SBA Inspector General, to the Criminal Division of the Department of Justice. SBA administrative proceedings will be coordinated with the Department of Justice unless the Department advises SBA that it does not intend to initiate criminal prosecution.

(2) Copies of this Report and all other notices, pleadings, motions and other official documents relative to a proceeding under this section shall be provided by the Standards of Conduct Committee, by the SBA General Counsel, by the Respondent and by any other parties to the SBA Office of Hearings and Appeals. This office will serve as the Docket Office for these proceedings and the documents filed with it will constitute the official files for the proceedings.

[47 FR 12334, Mar. 23, 1982, as amended at 49 FR 33628, Aug. 24, 1984]

§ 105.408 Cross references.

There are statutory provisions which are relevant to the obligations of and restrictions upon former employees. Some of these statutory provisions are: (a) 18 U.S.C. 207.

(b) 15 U.S.C. 642.

[41 FR 29656, July 19, 1976. Redesignated at 47 FR 12334, Mar. 23, 1982]

RESTRICTIONS RELATING TO PRESENT SBA EMPLOYEES

$105.501 Involvement in matters in which Government has substantial interest.

(a) No employee, otherwise than in the proper discharge of his official duties, shall act as agent, attorney or in any other representative capacity before a Department, regardless of whether compensation is received, in connection with any matter in which the United States is a party or has a direct and substantial interest. This provision shall be applicable to a Special Government Employee only to the extent set forth in paragraph (c) of this section.

(b) No employee, or person acting on behalf of said employee, otherwise than in the proper discharge of the employee's official duties, shall receive, agree to receive or solicit compensation for services rendered or to be rendered, in connection with any matter in which the United States is a party or has a direct and substantial interest. This provision shall be applicable to a Special Government Employee only to the extent set forth in paragraph (c) of this section.

(c) A Special Government Employee is subject to the foregoing paragraphs (a) and (b) of this section in connection with a particular matter: (1) In which he has at any time participated personally and substantially or which was under his official responsibility as an employee, or (2) which is pending at SBA while he is serving as a Special Government Employee. This provision (c)(2) does not apply where the Special Government Employee has served no more than 60 days with SBA during the immediately preceding period of 365 consecutive days.

(d) Notwithstanding paragraphs (a), (b) and (c) of this section an employee:

(1) May act, with or without compensation, as agent or attorney for his parents, spouse, child or any person for whom, or any estate for which, he is serving as guardian, executor, administrator, trustee or other personal fidu

ciary, except in those matters in which he has participated personally and substantially or which were under his official responsibility as an employee. In order to determine the possibility of any conflict of interest and the appearances of the arrangement, this function must first be reviewed and approved by the Standards of Conduct Counselor. The Standards of Conduct Counselor I will refer matters of a controversial nature to the Standards of Conduct Committee for final decision. On all other matters the decision of the Standards of Conduct Counselor is final.

(2) If not inconsistent with the faithful and full performance of his duties, as determined by his supervisor, may act without compensation as agent or attorney for any individual who is the subject of disciplinary, loyalty or other personnel proceedings in connection with those proceedings.

(e) There are statutory provisions which are relevant to the restrictions upon representative functions of a Government employee not performed as part of his official duties. Some of these statutory provisions are:

(1) 18 U.S.C. 203. (2) 18 U.S.C. 205.

[41 FR 29656, July 19, 1976, as amended at 55 FR 39398, Sept. 27, 1990]

$105.502 Compensation relating to of ficial duties from nongovernment

source.

or

(a) No employee shall receive any salary, contribution to supplementation of salary, as compensation for his services to SBA as an employee from any source other than the Government, except as may be authorized by law.

(b) No employee shall receive, agree to receive, request or solicit anything of value for himself or for any other person in return for committing, or aid in committing, or to colluding in, or allowing, any fraud, or making the opportunity for the commission of any fraud, on the United States or for being induced to do or omit to do any act in violation of his official duty.

(c) No employee shall receive, agree to receive, request or solicit anything of value for himself or any her per son, otherwise than as prov

in the proper discharge of his official duties, to support or influence decisions for the hiring of any person as an employee of SBA or any other Department.

(d) Nothing in this section precludes an employee from accepting travel or subsistence expenses from persons other than the Government in connection with proper outside activities conducted on his own time when such outside activities are approved under these regulations. Such travel or subsistence expenses, however, may not be accepted in connection with official duties or activities performed at the direction of SBA, except as otherwise authorized by law.

(e) There are statutory provisions which are relevant to the obligation of and restrictions upon compensation to employees from nongovernment

sources. Some of these provisions are:

(1) 18 U.S.C. 209.

(2) 18 U.S.C. 201.

(3) 18 U.S.C. 211.

(4) Decision of the Comptroller General; March 7, 1967; B-128527.

§ 105.503 Gratuities from persons dealing with SBA.

(a) Except as otherwise permitted in this section, no employee or member of his household shall receive, agree to receive, request or solicit, 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 directly or as the representative of another, any contracted or other business or financial relations with SBA or any SBA Assistance.

(2) Is a financial institution which participates with SBA in any of its lending or other programs or is an officer, director, agent, representative or significant equity owner of such an institution.

(3) Conducts operations or activities regulated by SBA.

(4) Has interests that may be substantially affected by the performance or nonperformance of the employee's official duties.

(b) The prohibitions of paragraph (a) of this section shall not apply to:

(1) Gifts, entertainment and favors of a relatively nominal value when the

circumstances make it clear that it is wholly a personal relationship rather than the business of the persons concerned which are the motivating factors.

(2) The acceptance of food and refreshments of nominal value when:

(i) On infrequent occasions they are provided in the ordinary course of a luncheon or dinner business meeting or other business meeting or on an inspection tour where an employee may properly be in attendance; or

(ii) It is in SBA's interest that an employee attend an event, such as a reception, seminar, conference, or training session, where food or refreshments are being served, provided that, the event is expected to be widely attended and of mutual interest to the Government and the private sector; the food and refreshments offered are not excessive; and the employee obtains prior approval from his immediate supervisor, or in the case of Agency management officials, prior approval from the appropriate Agency Ethics Official. However, where the sponsor of the event is an individual or entity that is directly involved in a matter or matters presently before SBA or otherwise regulated by SBA, the approving official must also determine that the timing of the event or other circumstances surrounding the event do not create a real or apparent conflict of interest.

(3) The acceptance of loans from banks and other financial institutions on customary terms to finance usual activities of employees, such as home mortgage loans;

(4) The acceptance of unsolicited advertising or promotional material, such as pens, pencils, calendars and other items of nominal value.

(c) Generally, an employee may not accept travel or subsistence expenses from a private person while traveling on official business under SBA orders. Payment for such expenses normally is made by SBA in accordance with applicable laws and regulations relating to official travel. Employees faced with questions relating to this rule or exceptions thereto should consult the appropriate SBA Standards of Conduct Counselor.

[41 FR 29656, July 19, 1976, as amended at 53 FR 38941, Oct. 4, 1988]

§ 105.504 Other gifts and gratuities.

(a) No employee shall:

(1) Solicit a contribution from another employee for a gift to an official superior.

(2) Make a donation or gift to or for the benefit of an official superior.

(3) Receive a gift from an employee receiving less pay and having less rank than himself.

(b) The foregoing paragraph (a) of this section does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion, such as marriage, illness, separation or retirement.

(c) No employee shall accept a gift, decoration or other thing from a foreign government except as authorized by statute.

(d) There are statutory provisions relevant to the question of gifts to and from employees. Some of these provisions are:

(1) 5 U.S.C. 7342. (2) 5 U.S.C. 7351.

§ 105.505 Situations creating a conflict of interest or the appearance thereof.

(a) No employee shall engage in any action, whether or not specifically prohibited, which might result in or create the appearance of:

(1) Using public office to obtain or coerce personal gain for himself or any other person.

(2) Giving preferential treatment to any person.

(3) Impeding Government efficiency or economy.

(4) Losing independence or impartiality.

(5) Making a Government decision outside official channels.

(6) Adversely affecting the confidence of the public in the integrity of the Government.

(b) Employees should be aware that the appearance of a conflict of interest, even absent the existence of any actual conflict, are matters of significant concern in the administration of employee standards of conduct. Appearances problems could arise, for example, where an employee is involved in the consideration of SBA assistance to a personal friend, a former supervisor or a similarly situated person, or where

a

an employee is considering a business or commercial transaction with known applicant for or recipient of SBA assistance, or where an employee is involved, in a personal capacity, in business negotiations with a known applicant for or recipient of SBA assistance. Special care should be taken by each employee to guard against the occurrence of any appearance violation of these regulations. Violations may be the basis for SBA disciplinary action. Where there is any question relating to the application of these rules to a particular situation, the employee is required to disqualify himself from any official action which might create such an appearance of a conflict of interest until he has received written approval from the appropriate SBA Standards of Conduct Counselor or from the SBA Standards of Conduct Committee.

[41 FR 29656, July 19, 1976, as amended at 47 FR 12336, Mar. 23, 1982]

§ 105.506 Personal interests in firms or matters having SBA involvement. (a) Except as otherwise provided in paragraph (e) of this section, no employee or member of his household shall purchase, or direct the purchase of, directly or indirectly, any interest in the persons specified in paragraph (c) of this section.

(b)(1) Except as otherwise provided in paragraph (e) of this section, without the approval of the Standards of Conduct Committee, no employee or member of his household shall own or otherwise hold directly or indirectly, whether acquired prior to or during the period of his SBA employment, any interest in the persons specified in paragraph (c) of this section:

(2) Application for approval under this subsection shall be submitted to the Standards of Conduct Committee no later than 60 calendar days after entering upon SBA employment where the employee's interest in the concern arose prior to his SBA employment. Where the interest of the employee arose during the period of his SBA employment, application shall be made no later than 60 calendar days after the acquisition of such interest.

(c) Proscribed persons for the purposes of paragraphs (a) and (b) of this section: