(2) 5 U.S.C. 7311.

[41 FR 29656, July 19, 1976. Redesignated at 47 FR 12337, Mar. 23, 1982]

$105.515 Disclosure of official information.

(a) No employee shall disclose any official information not authorized by law relating to trade secrets, processes, operations, statistical or income data or other confidential information of any person or firm.

(b) No employee shall disclose any unauthorized information concerning any SBA plan or action which will or might affect the value of securities.

(c) No employee shall utilize unauthorized or inside information to invest or speculate directly or indirectly, or otherwise to advance his or another's private interests. For the purposes of this section, inside information means information obtained under Government authority which has not become part of the body of public information.

(d) No employee shall disclose any classified information, as defined in part 137 of these regulations, to unauthorized persons.

(e) The disclosure of official government information, including classified information, is governed by statutory and other authority. Such authorities include:

(1) 5 U.S.C. 552, the Freedom of Information Act;

(2) 5 U.S.C. 552a, the Privacy Act; (3) 15 U.S.C. 645(b), the Small Business Act;

(4) 18 U.S.C. 798, Act of October 31, 1951;

(5) 18 U.S.C. 1905, the Trade Secrets Act;

(6) 50 U.S.C. 783, the Subversive Activities Control Act; and

(7) Executive Order 12356, "National Security Information," and National Security Decision Directive 84, "Safeguarding National Security Information."

[41 FR 29656, July 19, 1976. Redesignated at 47 FR 12337, Mar. 23, 1982, and amended at 49 FR 4371, Feb. 6, 1984]

$105.516 Duty to report irregularities.

(a) Every employee shall immediately report to the SBA Inspector General any acts of malfeasance or misfeasance or other irregularities, ei

ther actual or suspected, arising in connection with the performance by SBA of any of its official functions.

(Sec. 5 of the Small Business Act, 72 Stat. 384 (15 U.S.C. 631 et seq.) and E.O. 11222, 3 CFR 1964-65 Comp.; 5 CFR 735.104)

[43 FR 3078, Jan. 23, 1978. Redesignated and amended at 47 FR 12337, Mar. 23, 1982]

§ 105.517 Applicable rules and directions.

(a) Every employee shall follow all agency rules, regulations, operating procedures, instructions and other proper directions in the performance of his official functions.

[41 FR 29656, July 19, 1976. Redesignated at 47 FR 12337, Mar. 23, 1982]

§ 105.518 Gambling.

(a) No employee, while on official duty or on Government owned or leased property, shall participate in or operate any gambling activity.

(b) This prohibition shall not apply to activities conducted by employee welfare or similar organizations if prior written approval therefor is obtained from the Director of Personnel.

[41 FR 29656, July 19, 1976. Redesignated at 47 FR 12337, Mar. 23, 1982]

§ 105.519 Payment of financial obligations.

(a) Each employee shall pay his just financial obligations in a proper and timely manner. This is especially important in the case of Federal, State and local taxes.

(b) For the purposes of this provision, just financial obligations means those acknowledged by the employee, reduced to judgment by a court or imposed by law such as Federal, State or local taxes. In the event of a dispute, SBA will not determine the validity or amount of a debt.

(c) For the purposes of this provision, in a proper and timely manner means a manner which does not reflect adversely upon SBA, the Government or the employee in his official capacity.

[41 FR 29656, July 19, 1976. Redesignated at 47 FR 12337, Mar. 23, 1982]

$105.520 Recommendations of private person.

(a) No employee shall recommend or suggest the use of any nongovernmental person to provide any service as agent, attorney or otherwise in connection with negotiations with or other involvement with SBA. This regulation does not preclude an employee from providing a list of nongovernmental entities which participate or evince an interest in participating in SBA assistance programs where the purpose is solely to assist current or potential applicants or recipients of SBA assistance and where it is made clear that no recommendations or certification as to quality of service, ability or other attributes is involved.

[41 FR 29656, July 19, 1976. Redesignated and amended at 47 FR 12337, Mar. 23, 1982]

§ 105.521 Prohibited actions with respect to the Minority Small Business Program.

(a) (1) No person within the employ of the Administration shall, during the term of such employment and for a period of two years after such employment has been terminated, engage in any activity or transaction specified below with respect to any participant in the section 8(a) program which has been certified during such person's term of employment, if such person participated personally (either directly or indirectly) in decisionmaking responsibilities relating to such program participant or with respect to the administration of any assistance provided to program participants generally under section 8(a), section 7(j)(10), or section 7(a)(20) of the Small Business Act (15 U.S.C. 637(a), 636(j)(10) 636(g)(20)).

or

(2) The activities and transactions prohibited by this section include:

(i) The buying, selling, or receiving (except by inheritance) of any legal or other beneficial ownership of stock or any other ownership interest in a section 8(a) program participant or the right to acquire any such interest;

(ii) The entering into or execution of any written or oral agreement (whether or not legally enforceable) to purchase or otherwise obtain any right or interest described in paragraph (a)(2)(i) of this section; or

(iii) The receipt of any other benefit or right that may be an incident of ownership of a section 8(a) program participant.

(b) The employees designated below shall annually submit a written certification to the Administration regarding compliance with the requirements of this section:

(1) Regional Administrators; (2) District Directors;

(3) the Associate Administrator for Minority Small Business and Capital Ownership Development;

(4) employees whose principal duties relate to the award of contracts or the provision of other assistance pursuant to this subsection or section 7(j)(10); and

(5) such other employees as the Administrator may deem appropriate.

(c) Any present or former employee of the Administration who violates this section shall be subject to a civil penalty, assessed by the Attorney General, that shall not exceed 300 per centum of the maximum amount of gain such employee realized or could have realized as a result of engaging in those activities and transactions proscribed by this section.

(d) In addition to any other remedy or sanction provided for under law or regulation, any person who falsely certifies pursuant to this section shall be subject to a civil penalty under the program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801-3812).

[54 FR 34745, Aug. 21, 1989]

§ 105.522 Politically motivated activities with respect to the Minority Small Business Program.

(a) Any employee of the Administration who has authority to take, direct others to take, recommend, or approve any action with respect to any program or activity conducted pursuant to section 8(a) or section 7(j) of the Small Business Act, shall not, with respect to any such action, exercise or threaten to exercise such authority on the basis of the political activity or affiliation of any party. Employees of the Administration shall expeditiously report to the Inspector General of the Administration any such action for which such employee's participation has been solicited or directed.

(b) Any employee who willfully and knowingly violates this section shall be subject to disciplinary action, imposed by the Administrator, which may consist of separation from service, reduction in grade, suspension, or reprimand.

(c) This section shall not apply to any action taken as a penalty or other enforcement of a violation of any law, rules, or regulation prohibiting or restricting political activity.

(d) The prohibitions of and remedial measures provided for under this section with regard to such prohibitions, shall be in addition to, and not in lieu of, any other prohibitions, measures or liabilities that may arise under any other provision of law.

[54 FR. 34746, Aug. 21, 1989]

RESTRICTIONS RELATING TO OFFICERS OR EMPLOYEES OF OTHER GOVERNMENT OR QUASI-GOVERNMENT ORGANIZATIONS

§ 105.601 Assistance to officers or employees of other Government organizations.

(a) Except as noted in paragraph (b) of this section no SBA Assistance, other than Disaster loans under subparagraphs (1) and (2) of section 7(b) of the Small Business Act, shall be furnished to a person when its sole proprietor, partner, officer, director or stockholder with a 10 percent or more interest, or a member of his household, is an employee of another Government department having a grade of GS-13 or its equivalent or higher in the case of civilian employees, or the rank of major or lieutenant commander or its equivalent or higher in the case of military personnel, without a prior written statement of no objection by the pertinent department or military service.

(b) Except in special circumstances approved by the Standards of Conduct Committee, SBA will not enter into a contract with a person when its sole proprietor, partner, officer, director or stockholder with a 10 or more percent interest, or a member of his household, is an employee of a Government agency. In this connection, also see 41 CFR 1-1.302.3.

(c)(1) Without the approval of the Standards of Conduct Committee, no

SBA assistance, other than disaster loans under subparagraphs (1) and (2) of section 7(b) of the Small Business Act, shall be furnished to a person:

(i) When its officer, director or stockholder with a 10 percent or more interest, or a member of his household, is a member of Congress;

(ii) When its sole proprietor, partner, officer, director or stockholder with a 10 percent or more interest, or a member of his household, is an appointed official or employee of the legislative or judicial branch of the Government.

(2) There are statutory provisions relevant to the question of assistance to officials of the United States Government. These include:

(i) 18 U.S.C. 431. (ii) 18 U.S.C. 433. (iii) 41 U.S.C. 22.

[41 FR 29656, July 19, 1976, as amended at 47 FR 12337, Mar. 23, 1982]

§ 105.602 Assistance to employees or members of quasi-Government organizations.

(a) Without the prior written approval of the Standards of Conduct Committee, no SBA Assistance other than Disaster loans under subparagraphs (1) and (2) of section 7(b) of the Small Business Act, shall be furnished to a person when its sole proprietor, partner, officer, director or stockholder with a 10 percent or more interest, or a member of his household, is a member or employee of a Small Business Advisory Council or is a SCORE or ACE volunteer.

(b) In reviewing applications for approval under this provision, the Standards of Conduct Committee may consider, among other factors, the possibilities that the granting of the assistance might result in or create the appearance of giving preferential treatment, the loss of complete independence or impartiality or adversely affecting the confidence of the public in the integrity of the Government.

ADMINISTRATIVE PROVISIONS

§ 105.701 Penalties.

Any employee guilty of violating any of the provisions in this regulation may be subject to disciplinary action, including dismissal or suspension from

(a) The Standard of Conduct Committee shall as provided for in these regulations:

(1) Advise and give direction in the administration of this regulation and any other rules, regulations or directives dealing with conflicts of interest and ethical standards of SBA employees;

(2) Make decisions on specific requests for guidance from Agency management officials in connection with matters relating to standards of conduct;

(b) The Standards of Conduct Committee shall be comprised of:

(1) The General Counsel or, in his absence, the Deputy General Counsel or, in his absence, the Acting General Counsel who shall act as Chairman of the Committee;

(2) The Associate Deputy Administrator for Management and Administration, or in his or her absence, the Assistant Administrator for Administration;

(3) The Director of Personnel, or in his or her absence the Deputy Director of Personnel.

[41 FR 29656, July 19, 1976, as amended at 44 FR 27073, May 9, 1979; 47 FR 12337, Mar. 23, 1982; 55 FR 39399, Sept. 27, 1990]

$105.802 Standards of Conduct Counselors.

(a) The SBA Standards of Conduct Counselor shall be the Deputy General Counsel. He shall be assisted by a Regional Standards of Conduct Counselor for each SBA Region. The Regional Counsel shall be the Regional Standards of Conduct Counselor for each Region.

(b) The SBA Standards of Conduct Counselors or their delegatees shall:

(1) Provide general advice, assistance and guidance to employees concerning these regulations;

(2) "Monitor the Standards of Conduct Program within their respective areas and provide required reports thereon; and”

(3) Review Statements of Employment and Financial Interests as re

quired under $105.511 herein. Each Regional Standards of Conduct Counselor shall provide an annual report on filing requirements and compliance therewith within his Region to the Associate General Counsel for General Law as of September 1 of each year.

(4) Provide Outside Employment and Activities decisions pursuant to § 105.510 of this regulation.

(c) Each employee shall be periodically informed by the Director of his office of the name, address and telephone number of the Standards of Conduct Counselor whom he may contact for advice and assistance.

(d) Where a specific ruling regarding a particular situation is required, the request should be directed to the Standards of Conduct Counselor for appropriate action.

[41 FR 29656, July 19, 1976, as amended at 47 FR 12338, Mar. 23, 1982; 49 FR 45742, Nov. 20, 1984; 51 FR 7551, Mar. 5, 1986; 55 FR 39399, Sept. 27, 1990]

§ 105.803 Designated Agency Ethics Of ficials.

(a) The Designated Agency Ethics Officials, appointed by the Administrator pursuant to the Ethics in Government Act of 1978, shall be the Deputy General Counsel. He may, in turn, appoint an Alternate Designated Agency Ethics Official, who will be an attorney in the Office of Finance and Legislation. The Alternate Official will assist the designated Agency Ethics Official and shall act for him in his absence, in the performance of his official functions.

(b) The Designated Agency Ethics Officials shall administer the program for Financial Disclosure Statements under § 105.512, receive and evaluate these statements and provide advice and counsel regarding matters relating to the Ethics in Government Act of 1978 and its implementing regulations. The duties and responsibilities of the Designated Agency Ethics Officials are set forth in more detail in 5 CFR part 738 which is promulgated by and, from time to time, amended by the Office of Government Ethics.

[47 FR 12338, Mar. 23, 1982, as amended at 49 FR 45742, Nov. 20, 1984; 51 FR 7551, Mar. 5, 1986]

§ 105.901 Statutory and other regulatory provisions.

The attention of all employees is also directed to the following statutory and other legal provisions:

(a) House Concurrent Resolution 175, 85th Congress 2nd Session, 72 Stat. B12, the "Code of Ethics for Government Service."

(b) Chapter 11 of title 18, United States Code, relating to bribery, graft, and conflicts of interest.

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

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

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

(f) The prohibitions contained in the Freedom of Information Act against failing to disclose information disclosure of which is required by that Act (5 U.S.C. 552(a)(4)(F)).

(g) The prohibitions against: (1) The disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); (2) the disclosure of confidential information (18 U.S.C. 1905); and (3) disclosure of information which is restricted by the Privacy Act (5 U.S.C. 552a(i)(1)).

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

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

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

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

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

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

(n) The prohibition against counterfeiting and foregoing transportation requests (18 U.S.C. 508).

(0) 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).

(p) 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.

(q) The prohibitions against: (1) Embezzling or misapplying funds and securities, (2) making false reports with intent to defraud, (3) receiving money or profit fraudulently through act of SBA and (4) making profit out of information about value of securities of companies receiving assistance (15 U.S.C. 645).

(r) The provisions relating to post Government employment restrictions (18 U.S.C. 207).

(s) The prohibition against official acts affecting employees' personal financial interest (18 U.S.C. 208).

(t) The prohibition against the payment of Government employees' salary by other than the United States (18 U.S.C. 209).

(u) The prohibition against Government employees receiving basic pay from more than one Federal Government job for more than 40 hours per week (5 U.S.C. 5533).

(v) The prohibitions against accepting honorariums beyond designated amounts (2 U.S.C. 441(i)).

(w) Code of Ethics for Government Service (Pub. L. 96-303; July 3, 1980).

[41 FR 29656, July 19, 1976, as amended at 47 FR 12338, Mar. 23, 1982]