becoming involved in a conflict of interests is remote.

(c) Procedures for filing statements of employment and financial interests are contained in Appendix C to this subpart.

(d) The following procedures will be followed with regard to the maintenance of statements of employment and financial interests. Each head of a field or component installation, and, at Headquarters, the Assistant Administrator for Personnel Programs, will maintain, on a current basis, a master list of employees required to file statements under this subpart. It will be this official's responsibility to determine that the list includes all those employees following within the criteria for reporting set forth in this subpart and that the requirement for filing statements is fully carried out on a timely basis. In the event of any question regarding the interpretation of these criteria, the official will consult the Agency Counselor of NASA directly.

(e) Any employee who considers that his position does not come within the criteria for reporting set forth in this subpart, and therefore that he should not be required to file a statement, may request a review, through the NASA grievance procedure, of the determination that his position does come within such criteria. The NASA grievance procedure is set forth in the Federal Personnel Manual, Chapter 771, and the NASA Supplement thereto.

(f) An employee who refuses to file a statement for reasons other than that his position does not come within the criteria for reporting set forth in this subpart, or who refuses to file after the determination that his position does come within such criteria has been reviewed, as provided in § 1207.353-404(e), and has been approved, will be subject to appropriate disciplinary action.

(g) Employee statements comprise a System of Records of the Civil Service Commission (CSC) under the Privacy Act of 1974. The General Counsel of NASA has been designated as the System Manager in the CSC System Notice. Statements forwarded to the appropriate personnel office in accord

ance with this part will be in sealed envelopes. Statements will be retained in a special locked cabinet or safe to which only the designated employees will have access. The head of the local personnel office will designate within his office one or more key employees who are authorized to open and examine statements for completeness. When a form is complete, it shall be promptly forwarded to a Deputy Counselor (Legal) for review pursuant to Subpart E. Statements will be retained in a special locked cabinet or safe to which only the designated employees will have access. Transmission of statements for legal review will be in a sealed envelope bearing the inscriptions "To Be Opened Only By (bearing the name of the individual authorized to review such statements)" and "Subject to the Privacy Act." Within each NASA legal office, procedures for limiting access to statements and for their safekeeping, as rigorous as those set forth for personnel offices, will be maintained. There will be no discussion or disclosure of the details of statements of employment and financial interests except as necessary to carry out the provisions of Subpart E. In accordance with the Privacy Act, information from a statement shall not be disclosed outside of NASA except as the Administrator or the Civil Service Commission shall determine for good cause shown. Within NASA, except for the examination and review process set forth in this paragraph, access to the employee statements will be permitted only upon the express approval of the General Counsel.

(h) This subpart does not require an employee to include in 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 subpart, 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 financial interest statement.

(i) Information concerning financial interests which have been exempted from the prohibition of 18 U.S.C. 208(a), as set forth in Appendix B to this subpart, may be omitted from the statement of employment and financial interests, except that, notwithstanding the exemption set forth in paragraph la of Appendix B, the ownership of securities in any amount in a company doing business with NASA will be disclosed if the employee's duties and responsibilities require the exercise of judgment in making a Government decision or in taking Government action in relation to that company.

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

APPENDIX A-WAIVER PROCEDURES (see

§ 1207.735-403(a))

1. Employees appointed under authority of section 203(c)(2)(A) ("NASA Excepted Positions") or section 203(b)(10) (“Alien Scientists") of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473(C)(2)(A) and 2473(b)(10)); or under 5 U.S.C. 3164.

a. The employee will address a written request for a waiver to the Administrator. The request will describe the specific matter involved, the nature and extent of the employee's participation therein, and the exact nature and amount of the financial interest relating to the specific matter.

b. The employee, if stationed at NASA Headquarters, will forward his request to the Administrator via the Official-in-Charge of the Headquarters Office in which the employee is located. The official will transmit the request with his comments and recommendations on the proposed waiver to the Administrator.

c. The employee, if stationed at a NASA field or component installation, will forward his request to the Administrator via the Head of the installation, who will transmit the request, with his comments and recommendations on the proposed waiver, to the Administrator.

d. The determination required by the statute will be made only by the Administrator or Deputy Administrator in the case of employees holding appointments under the statutes cited in paragraph 1 of this appendix.

2. All other employees-a. Headquarters. (1) All other NASA employees (including civilian and military personnel of other Government agencies regularly detailed to

NASA) who are stationed at NASA Headquarters will forward their requests for a waiver to the Official-in-Charge of the Headquarters Office in which the employee is located. The waiver request will contain the same information as required in paragraph la of this appendix. The official will transmit the request with his comments and recommendations on the proposed waiver to the Associate Administrator for Center Operations.

(2) The Associate Administrator for Center Operations is authorized to make the determination required by the Statute. This authority may not be redelegated.

b. Field and component installations. (1) All other NASA employees (including civilian and military personnel of other Government agencies regularly detailed to NASA) who are stationed at a field or component installation will forward their requests for a waiver to the head of the installation, via the head of the major organizational component in which the employee is located. The waiver request will contain the same information as required in paragraph la of this appendix. The head of the major organizational component will transmit the request to the head of the installation with his comments and recommendations on the proposed waiver.

(2) The heads of NASA field and component installations, and the deputy or associate heads of such installations, are authorized to make the determination required by the statute. This authority may not be redelegated. An information copy of each such determination or of the disapproval of the employee's request will be forwarded to the Associate Administrator for Center Operations, NASA Headquarters.

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

APPENDIX B-CATEGORIES OF FINANCIAL INTERESTS EXEMPTED FROM THE PROHIBITION OF 18 U.S.C. 208(a) (see § 1207.735-403(b)) Pursuant to the authority contained in 18 U.S.C. 108(b)(2), it has been determined that the categories of financial interests hereinafter described are, to the extent indicated, exempted from the application of the prohibition of 18 U.S.C. 208(a), because they are too remote or too inconsequential to affect the integrity of a NASA employee's services in any matter in which he may act in his governmental capacity. Therefore, the provisions of 18 U.S.C. 208(a) do not preclude the participation by a NASA employee, including a special Government employee, in matters of a type covered by the prohibition of section 208(a) where the financial interest involved has been exempted hereunder.

1. The following exemptions apply to financial interests which are held directly by

a NASA employee, including a special Government employee, or by his spouse or minor child, whether jointly or individually, or by a NASA employee and his partner or partners as joint assets of the partnership:

a. Ownership of shares of common or preferred stocks, including warrants to purchase such shares, and of corporate bonds or other corporate securities, if the current aggregate market value of the stocks and other securities so owned in any single corporation does not exceed $5,000, and provided such stocks and securities are listed for trading on the New York or the American Stock Exchange. This exemption extends also to any financial interests that the corporation whose stocks or other securities are so owned may have in other business entities.

b. Ownership of bonds other than corporate bonds, regardless of the value of such interest. This exemption extends also to any financial interests that the organization whose bonds are so owned may have in other business entities.

c. Ownership of shares in a mutual fund or regulated investment company regardless of the value of such interest. This exemption extends also to any financial interests that the mutual fund or investment company may have in other business entities.

2. If a NASA employee, including a special Government employee, or his spouse or minor child has a present beneficial interest or a vested remainder interest under a trust, the ownership of stocks, bonds, or other corporate securities under the trust will be exempt to the same extent as provided in paragraph la above for the direct ownership of such securities. The ownership of bonds other than corporate bonds, or of shares in a mutual fund or regulated investment company, under the trust will be exempt to the same extent as provided under paragraph 1 b and c above for the direct ownership of such bonds or shares.

3. If a NASA employee, including a special Government employee, is an officer, director, trustee, or employee of an educational institution, or if he is negotiating for, or has an arrangement concerning prospective employment with such an institution, a direct financial interest which the institution has in any matter will not itself be exempt, but any financial interests that the institution may have in the matter through its holdings of securities issued by business entities will be exempt, provided the NASA employee is not serving as a member of the investment committee of the institution or is not otherwise advising it on its investment portfolio.

4. If a NASA employee, including a special Government employee, has continued to participate in a bona fide pension, retirement, group life, health or accident insurance plan, or other employee welfare or

benefit plan that is maintained by a business or nonprofit organization of which he is a former employee, his financial interest in that organization will be exempt, except to the extent that the welfare or benefit plan is a profit sharing or stock bonus plan. This exemption extends also to any financial interests that the organization may have in other business activities.

APPENDIX C-PROCEDURES FOR FILING STATEMENTS OF EMPLOYMENT AND FINANCIAL INTERESTS (see § 1207.735-404)

1. Time and place. a. Each employee required to file a statement under Subpart D will obtain NASA Form 1270 from the local personnel office and after completing the form will submit it to the local personnel officer as follows:

(a) Thirty days after entrance on duty;

(b) Ten days after his position is specifically identified as one requiring the incumbent thereof to file a financial statement under § 1207.735-404(a)(4), or after the Civil Service Commission has approved the determination that he should file, under § 1207.735-404(a)(5).

(c) After selection and at least 5 days before service on the boards or committees listed in § 1207.735-404(a)(3).

2. 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 of interest held as of June 30 each year. If no changes or additions have occurred since the previous statement, a negative report to that effect is required. All supplementary statements, including negative reports, will be filed on NASA Form 1270.

3. Financial interests of employee's relatives. For purposes of this reporting requirement, the financial interests of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee and must be reported. "Members of an employee's immediate household" means those blood relations who are residents of the employee's household.

4. 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 the information in his behalf. The employee concerned should avoid gaining knowledge about such interests in order to prevent the possibility of invoking 18 U.S.C. 208.

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

Subpart E-Advisory Service and Enforcement

§ 1207.735-500 Scope of subpart.

This subpart (a) establishes an advisory service for employees for the purpose of furnishing interpretations and advising on questions arising under this part, and (b) prescribes the types of remedial and disciplinary actions which may be taken to enforce the requirements of Subparts A, B, C, D, and E of this part.

§ 1207.735-501 Use of advisory service.

When questions or problems arise concerning matters covered by this part NASA employees will seek the advice and consultative services of the counselors designated in § 1207.735502.

§ 1207.735-502 Designation of counselors and statement of functions.

(a) The General Counsel is designated as the Agency Counselor. His functions consist of the following:

(1) Act as the principal point of contact with the Civil Service Commission on matters covered by this part; and

(2) Provide general guidance to Deputy Counselors for the purpose of achieving uniform interpretation of this part.

(b) Deputy Counselors. (1) The following officials are designated as Deputy Counselors under this subpart: (i) NASA Headquarters

(a) Assistant Administrator for Personnel Programs;

(b) Director of Personnel, NASA; (c) Deputy General Counsel;

(d) An Assistant General Counsel, as designated by the Agency Counselor; and

(e) Director, Headquarters Office of Personnel.

(ii) NASA field and component installations

(a) The Chief Counsel; and
(b) The Personnel Office.

(2) Functions of the Deputy Counselors;

(i) The Assistant Administrator for Personnel Program, NASA, will oversee the activities of the Deputy Counselors (Personnel) under the general guidance of the Agency Counselor.

(ii) Deputy Counselors (Legal) will be responsible for

(a) Reviewing statements of employment and financial interests, filed pursuant to the provisions of Subpart D; and

(b) Advising the Deputy Counselors (Personnel) on questions regarding the interpretation and application of statutes, Executive Orders, Court Decisions, the decisions of the Comptroller General, and other legal matters arising under this part.

(iii) Deputy Counselors (Personnel) will be responsible for—

all

(a) Counseling employees on other problems and questions arising under this part which are not specifically within the responsibility of the Deputy Counselors (Legal); and

(b) Consulting, as necessary, with the Deputy Counselors (Legal) on questions and problems arising under this part.

(iv) Deputy Counselors may carry out their responsibilities through designated subordinates. The Deputy Counselors, however, shall retain ultimate responsibility for the functions assigned to them under this § 1207.735-502.

[32 FR 14648, Oct. 21, 1967, as amended at 41 FR 31527, July 29, 1976]

§ 1207.735-503 Review, enforcement, reporting, and investigating.

(a) Each statement, and supplementary statement, of employment and financial interests submitted under Subpart D shall be reviewed by the appropriate Deputy Counselor (Legal). If that review discloses a conflict of interest or apparent conflict of interest the employee shall be given an opportunity to explain the conflict or apparent conflict, and every effort shall be made to resolve the matter. If the matter cannot be resolved at a lower level, it shall be reported to the Agency Counselor. If the Agency Counselor decides that remedial action is necessary, he shall take such action immediately to end the conflict or apparent conflict of interest.

(b) NASA employees should consult with their Deputy Counselors with regard to any questions concerning this part. Resolution of problems disclosed by such consultations will be ac

complished at the lowest possible supervisory level in the agency through counseling or by taking administrative action to eliminate real or apparent conflicts of interest. The services of the NASA Inspection Division will be requested by the Deputy Counselor, when necessary, to conduct investigations to ascertain all relevant facts.

(c) Any NASA employee receiving an allegation of a possible violation of the provisions of this part by any other NASA employee (including civilian and military personnel of other Government agencies, regularly detailed to NASA) shall, unless it is based on mere gossip or rumor, promptly report it directly to the Director of Inspections or his local representative, as provided for in NASA Management Instruction 1960.1.

(d) A violation of the regulations contained in this part may be cause for appropriate disciplinary action. All disciplinary or remedial action taken hereunder will be in conformance with applicable laws, Executive Orders, Civil Service Commission regulations and NASA regulations. Appropriate disciplinary or remedial action includes, but is not limited to, divestiture by the employee of his conflicting interest, disqualification for particular assignments, reassignment, or disciplinary action.

(e) The employee concerned will have a reasonable opportunity during any investigation and at all levels of consideration of his problem to present in person and through documents his position on the matter.

(a) Special Government employee. A special Government employee is defined, under 18 U.S.C. 202, and for the purposes of this subpart, as an officer or employee who is retained, designated, appointed, or employed to perform, with or without compensation, temporary duties, either on a full-time or intermittent basis, for not to exceed 130 days during any period of 365 consecutive days (see § 1207.735-602).

(b) Particular matter. The term "particular matter" is not defined in the statutes, but is used in context as follows:

66 **

any proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest or other particular matter."

(c) Personally and substantially. The term "personally and substantially" is not defined in the statutes, but is used in context as follows: “* personally and substantially, * through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise ***”

(d) Official responsibility. The term "official responsibility" is defined by statute to mean the "direct administrative or operating authority, whether intermediate or final, and either exercisable alone or with others, and either personally or through subordinates, to approve, disapprove, or otherwise direct Government action." NASA consultants or experts will not normally exercise official responsibility in connection with any matters. § 1207.735-602 Applicability.

(a) This subject is applicable to all NASA employees who are classified as special Government employees. It is of particular applicability to NASA consultants and experts, who normally fall within the definition of the term "special Government employee."

(b) To the extent that the conflict of interests statutes apply to a special Government employee, they apply to his activities on all days during the period of his NASA appointment, beginning with the date on which he takes an oath of office as a Government employee, whether he works on