(a) An employee may accept compensation or an honorarium for permissible outside employment or other outside activity which is nonofficial in character unless otherwise prohibited by this subpart.

(b)(1) Except as provided in § 1207.735–201(d)(9) and in paragraph (b)(2) of this section, travel expenses will be borne by the Government when official employment activities of NASA employees are involved, including attendance at meetings of nongovernmental organizations. Conversely, when nonofficial outside employment activities are involved, appropriated funds will not be utilized for travel or subsistence.

(2) Contributions and awards incident to training in non-Government facilities and travel, subsistence, and other expenses incident to attendance at meetings may be accepted by NASA employees, provided that such contributions, awards, and payments are made by non-profit organizations pursuant to 5 U.S.C. 4111 (formerly the Government Employees Training Act), and that the employee has obtained specific written authorization accept the contribution or award.

to

(3) No employee shall accept (i) any honorarium of more than $2,000 (excluding amounts accepted for actual travel and subsistence expenses for such person and spouse or aide, and excluding amounts paid or incurred for agents' fees or commission) for any appearance, speech, or article, or (ii) honorariums aggregating more than $25,000 in any calendar year (Pub. L. 94-283, section 328). The provisions of this paragraph apply whether the appearance, speech or article is approved as permissible outside employment under this subpart, or pertains to the private interests of the employee.

[41 FR 2633, Jan. 19, 1976, as amended at 41 FR 31526, July 29, 1976; 41 FR 35479, Aug. 23, 1976]

§ 1207.735-306 [Reserved]

§ 1207.735-307 Special conditions applicable to writing and editing.

(a) Subject to the limitations set forth in § 1207.735-303, NASA employees may serve as editors, as editorial consultants, or on editorial boards, and may contribute articles to publications issued by nonprofit organizations or by profit organizations involved in trade or news press publishing.

(b) Publication associated with organizations in the nonprofit category are those such as the National Geographic Society.

(c) The profit category of publications includes textbooks, hand books, magazines, journals, and newspapers. Editing activities for profit organizations should be carefully appraised. Under no circumstances should the activity involve approval or disapproval of advertising.

(d) Writing and editing, with or without pay, which pertain to the private interests of employees regarding hobbies, sports, or cultural activities are permitted unless there are actual or apparent conflicts with their officially assigned duties.

§ 1207.735-308 Administrative approval.

The provisions of this section will be observed with respect to all outside employment or other outside activity. Each employee must be alert to identify and to avoid any situation that would involve him is prohibited activity. Aside from avoiding prohibited outside employment or other outside activity, each employee must also obtain administrative approval in accordance with Appendix A to this subpart before engaging in outside employment of the following types:

(a) Writing or editing except those activities set out in § 1207.735-307(d). (b) Speaking engagements except where the subject matter is unrelated to the subject matter of the employee's official duties.

(c) Teaching and lecturing.
(d) Regular self-employment.
(e) Consulting services.

(f) Holding State or local public office.

(g) Outside employment or other outside activity involving a NASA contractor or subcontractor.

(h) Any other outside work concerning the propriety of which an employee is uncertain.

Prior administrative approval may be required for additional types of outside employment where, because of special considerations, such a requirement is considered desirable for the protection of employees or NASA.

§ 1207.735-309 Related statutory provisions.

Several criminal statutory provisions restrict certain types of outside activities on the part of employees, as follows:

(a) 18 U.S.C. 203 imposes criminal penalties upon an employee who, other than in the proper discharge of official duties, directly or indirectly receives or agrees to receive, or asks, demands, solicits, or seeks, 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, courtmartial, officer, or any civil, military, or naval commission.

(b)(1) 19 U.S.C. 205 imposes criminal penalties upon an employee who other than in the proper discharge of his official duties—

(i) Acts as agent or attorney for prosecuting any claim against the United States or receives any gratuity, or any share of or interest in any such claim, in consideration of assistance in the prosecution of such claim; or

(ii) Acts as agent or attorney for anyone before any department, agency, court, courtmartial, 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.

(2) Exceptions to the foregoing prohibitions are as follows:

(i) If not inconsistent with the faithful performance of his duties, an employee may act, 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.

(ii) An employee may act, with or without compensation, as agent or attorney for his parents, spouse, child, or any person for whom, or for any estate for which, he is serving as 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 Government official responsible for appointment to his position approves.

(c)(1) Under 18 U.S.C. 209 an employee is prohibited from receiving any salary, or any contribution to or supplementation of salary, as compensation for his services as an officer or employee of the Government, 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 muncipality, or except as may be paid under the terms of 5 U.S.C. 4101-4118 (formerly the Government Employees Training Act).

(2) Exceptions to the prohibitions of 18 U.S.C. 209 are also made for those employees 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. However, such financial interests may still violate 18 U.S.C. 208 unless waived. (See Subpart D, Appendix B, paragraph 4.)

(d) Pub. L. 94-283, section 328 provides:

No person while an elected or appointed officer or employee of any branch of the Federal Government shall accept

(1) Any honorarium of more than $2,000 (excluding amounts accepted for actual travel and subsistence expenses for such person and his spouse or an aide to such person, and excluding amounts paid or incurred for any agents' fees or commissions) for any appearance, speech, or article; or

(2) Honorariums (not prohibited by paragraph (d)(1) of this section) aggregating more than $25,000 in any calendar year.

Violation of this section can result in a substantial civil penalty amounting to $5,000, $10,000, or higher, depending on the circumstances.

[32 FR 14648, Oct. 21, 1967, as amended at 41 FR 31526, July 29, 1976]

APPENDIX A-PROCEDURES FOR PERMISSION

TO ENGAGE IN OUTSIDE EMPLOYMENT OR OTHER OUTSIDE ACTIVITY (see § 1207.735308)

1. Form and content of request. A request for administrative approval of outside employment or other outside activity shall be in writing and show:

a. Employee's name and occupational title.

b. Nature of the activity: full description of specific duties or services to be performed.

c. Name and business of person or organization for which the work will be done. (In the case of self-employment in a professional capacity serving a large number of individuals, instead of listing each client, the type of services to be rendered and estimate of the total number of clients anticipated during the next 6 months will be indicated.) d. Estimated total time that will be devoted to the activity. (If on a continuing basis, the estimated time per year; if not, the anticipated ending date.)

e. Whether service can be performed entirely outside of usual duty hours; if not, estimated number of hours of absence from work that will be required.

2. Routing. The request for approval will be submitted (in duplicate) to the appropriate Official-in-Charge of the Headquarters Office or to the head of the field or component installation or to the persons designated to act for them. Employees will be notified in writing of the actions taken on their requests. All approved requests (or copies of such requests) and two copies of the notification of the approval action will be maintained in the local Personnel Office as follows:

a. A special file on outside employment, separated by title of types of employment. b. A copy in the personnel folder of the employee concerned.

3. Keeping record up to date. If there is a change in the nature or scope of the duties or services performed or the nature of his employer's business, the employee will submit a revised request for approval promptly. If the outside work is discontinued sooner than anticipated (not merely suspended temporarily), he will notify the officer who approved the request.

4. Enforcement. Failure to request administrative approval for outside employment or other outside activity for which approval is required is ground for disciplinary action. 5. Confidentiality of requests. All requests for approval will be treated as confidential and made available only to specifically authorized persons.

[32 FR 14648, Oct. 21, 1967, as amended at 41 FR 31526, July 29, 1976]

Subpart D-Financial Interests and Investments

§ 1207.735-400 Scope of subpart.

This subpart prescribes policies and procedures for the avoidance of conflicting financial interests in connection with an employee's Government position or in the discharge of his official responsibilities, and sets out the requirements for reporting financial interests and outside employment.

§ 1207.735-401 General.

(a) Employees are subject to two types of controls in connection with apparent or actual conflicting financial interests. One is a criminal statute, 18 U.S.C. 208, which by its terms prohibits an employee's participation in certain official activities where he has a conflicting personal financial interest. The other is a requirement under Executive Order 11222 and Civil Service Commission regulations that employees occupying certain Government positions must report all personal financial interests and outside employment by filing a statement of employment and financial interests. The statute and the statement of employment and financial interests have the common objective of deterring the occurrence of conflicting financial interest situations, one by sanctions and the other by disclosure, but where the statute prohibits and punishes, the statement of employment and financial interests is intended to serve as an aid to the employee and those who

review his statement in the avoidance of the conflicting situation through advice and counseling.

(b) The statement of employment and financial interests (NASA Form 1270) required under this subpart is 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, unless he obtains a waiver under procedures set out in this subpart.

(c) Notwithstanding the requirement under this subpart for filing a statement of employment and financial interests, and an annual supplement thereto an employee shall avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of 18 U.S.C. 208(a) or of this part.

against acts affecting a personal financial interest.

(a) The provisions of 18 U.S.C. 208(a) prohibit any employee from participating personally and substantially in the course of his Government duties in any judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in relation to which matter, to his knowledge, the following persons or organizations have a financial interest:

(1) The employee, or his spouse, minor child, or partners;

(2) A business or nonprofit organization in which the employee is serving as an officer, director, trustee, partner, or employee; or

(3) A person or business or nonprofit organization with whom or with which the employee is negotiating, or has any arrangement with, concerning prospective employment.

(b) The prohibitions in paragraph (a) of this section may be waived under certain circumstances which are set out in § 1207.735-403.

(c) Illustrative of the types of matters in which NASA employees commonly participate and which may fall within the prohibitions described in paragraph (a) of this section are the following:

(1) The negotiation, administration, or auditing of contracts or agreements; (2) The selection or approval of contractors or known subcontractors under a NASA prime contract;

(3) The technical monitoring or direction of work under a contract;

(4) Participation on boards or committees of the type listed in § 1207.735404(a)(3); or

(5) Project monitoring.

(d) Unless a waiver is granted pursuant to § 1207.735-403, no NASA employee or civilian or military personnel of other Government agencies regularly detailed to NASA will participate personally and substantially in the course of his Government duties in any specific matter of a type listed in paragraph (c) of this section, or in any other matter of a type referred to in paragraph (a) of this section if, to his knowledge, any of the persons or organizations identified in paragraph (a) of this section have a financial interest relating to that specific matter.

§ 1207.735-403 Waiver of statutory prohibition.

(a) The prohibition of 18 U.S.C. 208 (a) may be waived in connection with a specific matter of the type which comes under the statute if the employee makes a full disclosure in writing of the nature of the matter involved and of the financial interest relating thereto and receives, in advance of his participation in such matter, a written determination that such financial interest is not so substantial as to affect the integrity of his services and, therefore, that the employee may participate personally and substantially in that matter. The procedures set forth in Appendix A to this subpart will be followed in connection with granting a waiver as described in this section.

(b) The prohibition of 18 U.S.C. 208(a) also may be waived by general regulation applicable to all NASA employees so as to permit an employee (including civilian and military personnel of other Government agencies reg

ularly detailed to NASA) to participate personally and substantially in a specific matter, notwithstanding the existence of a financial interest relating to that matter, where it has been determined that such a financial interest is too remote or to inconsequential to affect the integrity of the employee's services in any matter in which he may act in his governmental capacity. Such a determination has been made by the Administrator with respect to the categories of financial interests set forth in Appendix B to this subpart.

§ 1207.735-404 Statement of employment and financial interests.

(a) The following criteria define the categories and types of employees who will file a statement of employment and financial interests, containing the kind of information required by the Civil Service Commission, on NASA Form 1270:

(1) Employees paid at a level of the Executive Schedule in Subchapter II of Chapter 53 of Title 5, United States Code, except the Administrator, who is subject to separate reporting requirements under section 401 of Executive Order 11222.

(2) Employees classified at the GS13 level and above, under 5 U.S.C. 5332 or at comparable pay levels under other authority, unless otherwise exempted pursuant to paragraph (b) of this section, whose duties and responsibilities require the exercise of judgment in making a Government decision or in taking Government action in regard to:

(i) Contracting or procurement, including the evaluation or selection of contractors; the negotiation, approval, or award of contracts; the supervision of activities performed by contractors, including the administration, monitoring, audit, and inspection of contractors and contract activities; and the initiation or approval of requests to procure supplies, equipment, or services, other than those common items available from NASA or GSA inventories:

(ii) Administering or monitoring grants or subsidies, including grants to educational institutions and other non-Federal organizations;

(iii) Auditing financial transactions;

(4) Employees classified at the GS13 level and above under 5 U.S.C. 5332, or at comparable pay levels under other authority, and who are identified by the head of a field or component installation or, at Headquarters, by the Assistant Administrator for Personnel Programs, as holding positions requiring the incumbent thereof to exercise judgment in making Government decisions or taking actions where such decisions or actions may have an economic impact on the interest of any non-Federal enterprise.

(5) Employees classified below the GS-13 level under 5 U.S.C. 5332, or at a comparable pay level under other authority, and who are in positions which otherwise meet the criteria of § 1207.735-404(a)(2) or § 1207.735404(a)(4), providing the Civil Service Commission has approved the determination that the incumbents of such positions should be required to file statements of employment and financial interests in order to protect the integrity of the Government and to avoid the employee's involvement in a possible conflict of interests situation.

(b) An employee described in paragraph (a)(2) of this section may be exempted from the requirement for filing a statement of employment and financial interests when the head of the field or component installation involved or, at Headquarters, the Assistant Administrator for Personnel Programs, determines that the employee's duties are of such a nature, or are at such a level of responsibility and are subject to such a degree of supervision and review, that the possibility of his

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