Sec.

1450.735-1

1450.735-2

1450.735-3

1450.735-4

1450.735-5

1450.735-6 1450.735-7

Financial interests exempted from statutory prohibition.

Disciplinary and other remedial action. Notice to employees.

AUTHORITY: The provisions of this Part 1450 issued under section 702, E.O. 11222, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104.

SUBPART A-GENERAL PROVISIONS

1450.735-1 Purpose.-The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by Government employees and special Government employees is essential to assure the proper performance of the Government business and the maintenance of confidence by citizens in their Government. The avoidance of misconduct and conflicts of interest on the part of Government employees and special Government employees through informed judgment is indispensable to the maintenance of these standards. To accord with these concepts, this part prescribes standards of conduct and responsibilities of employees and special Government employees, and governs statements reporting employment and financial interests of such employees.

1450.735-2 Definitions.-As used in this part:

(a) "Board" means The Renegotiation Board, including the regional boards, except when the context indicates otherwise.

(b) "Employee" means a member or employee of the Board, but does not include a special Government employee.

(c) "Executive order" means Executive Order No. 11222 of May 8, 1965.

(d) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution.

(e) "Special Government employee" means a "special Government employee" as defined in section 202 of Title 18 of the United States Code, such as a consultant, expert, etc., who is employed by the Board.

1450.735-3 Interpretation and advisory service. (a) The Board shall designate a counselor for the Board, who shall also serve as

the designee of the Board to the Civil Service Commission, on matters covered by this part. Such counselor shall be responsible for coordination of the Board's counseling services provided under this section, and for assuring that counseling and interpretations on questions of conflicts of interest and other matters covered by this part are available to deputy counselors designated under paragraph (b) of this section.

(b) The Board shall designate a deputy counselor for the headquarters office of the Board and for each regional board. Such deputy counselors shall give advice and guidance to each employee or special Government employee in their respective locations who seeks advice and guidance on questions of conflicts of interest or other matters covered by this part. The deputy counselors shall report to the counselor at such times and in such manner as the counselor shall prescribe.

(c) Employees and special Government employees are strongly urged to feel free to seek advice and guidance from the appropriate deputy counselor on questions of conflicts of interest and other matters covered by this part, so that the requirements of proper conduct may be fully understood and observed at all times.

(d) Counseling service shall be available to employees and special Government employees during the hours of business of the Board, or a regional board, upon request to the appropriate deputy counselor.

1450.735-4 Reviewing statements and reporting conflicts of interest.—(a) Statements of employment and financial interests of each employee and special Government employee, submitted under Subpart D of this part, shall be submitted to the counselor designated pursuant to section 1450.735-3 (a), who shall review such statements for conflicts of interest or apparent conflicts of interest.

(b) When a statement submitted under Subpart D of this part, or information from other sources, indicates in the judgment of the counselor a conflict between the interests of an employee or special Government employee and the performance of his services for the Board, the counselor, or at his request the appropriate deputy counselor, shall consult with such employee or special Government employee, and when necessary with his superior, in an effort to resolve the conflict or appearance of conflict by any

of the methods described in subparagraphs (1), (2), and (3) of § 1450.735-5 (c). If the matter is not resolved to the satisfaction of the counselor, the information concerning the conflict or appearance of conflict shall be reported to the Board by the counselor for disciplinary or other remedial action pursuant to the provisions of § 1450.735-5. In the latter event, written notice of such referral to the Board shall be given by the counselor to the affected employee or special Government employee. Such notice shall include advice that such employee or special Government employee will be provided an opportunity to explain to the Board the conflict or appearance of conflict.

(c) In order to preserve the standards of honesty, integrity, and impartiality required of Government employees in accordance with the provisions of section 208, title 18, United States Code, and the regulations in this part, every employee, whether or not designated in § 1450.735-42, should use extreme care to avoid participation in any matter with respect to which he has a financial or other interest which, whether or not required to be reported under Subpart D of this part, would conflict or appear to conflict with his performance of services for the Board. If a matter is assigned to an employee having such an interest, he shall forthwith report such interest through his immediate superior to the appropriate deputy counselor. If the deputy counselor is unable to resolve the conflict or appearance of conflict, he shall so report to the counselor, who shall then proceed as in paragraph (b) of this section.

(d) Section 208, title 18, United States Code, reads as follows:

SEC. 208. Acts affecting a personal financial interest. (a) Except as permitted by subsection (b) hereof, whoever, being an officer or employee of the executive branch of the U.S. Government, of any independent agency of the United States, or of the District of Columbia, including a special Government employee, participates personally and substantially as a Government officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner or employee, or any person or organization with whom he is negotiating or has any arrangement con

cerning prospective employment, has a financial interest

Shall be fined not more than $10,000, or imprisoned not more than 2 years, or both.

(b) Subsection (a) hereof shall not apply (1) if the officer or employee first advises the Government official responsible for appointment to his position of the nature and circumstances of the judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter and makes full disclosure of the financial interest and receives in advance a written determination made by such official that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such officer or employee, or (2) if, by general rule or regulation published in the FEDERAL REGISTER, the financial interest has been exempted from the requirements of clause (1) hereof as being too remote or too inconsequential to affect the integrity of Government officers' or employees' services. Added Pub. L. 87-849, §1(a), October 23, 1962, 76 Stat. 1124.

1450.735-5 Disciplinary and other remedial action.—(a) Any violation of the regulations in this part, by an employee or special Government employee, may be cause for disciplinary action, which may be in addition to any penalty prescribed by law.

(b) When, after consideration of the explanation of the employee or special Government employee provided by § 1450.735–4(b), the Board decides that remedial action is required, the Board will take immediate action to end the conflicts or appearance of conflicts of interest. (c) Remedial action under paragraph (a) or (b) of this section may include, but is not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee or special Government employee of his conflicting interest; (3) Disqualification for a particular assignment; or

(4) Disciplinary action.

Remedial action, whether disciplinary or otherwise, will be effected in accordance with any applicable laws, Executive orders, and regulations.

1450.735-6 Notice to employees. Within twenty (20) days after the effective date of the regulations in this part, or of any amendment thereto, each employee and special Government employee shall be provided with a copy of this part, or of such amendment. Each new employee or special Government employee appointed thereafter shall be provided with a copy of this

part, and all amendments thereto, at the time of his entrance on duty. At least semi-annually, the regulations in this part shall be brought to the attention of all employees and special Government employees, each of whom shall be required at each such time to execute a statement in form as follows:

I have read and I understand the provisions of Part 1450 of the Renegotiation Board Regulations, and I agree to abide thereby as long as I remain an employee of The Renegotiation Board.

It shall be the responsibility of the Director, Office of Administration, to carry out the provisions of this section.

1450.735-7 Financial interests exempted from statutory prohibition.-Pursuant to the provisions of subsection (b) of 18 U.S.C. 208, the Board has determined that the following financial interests are too remote or too inconsequential to affect the integrity of the services of its employees, and therefore has exempted such interests from the requirement of this part: Investments in widely held diversified mutual funds (i.e., open-end management investment companies as defined by section 5 of the Investment Company Act of 1940, 15 U.S.C. 80a-5) in which the employee does not serve as a director, officer, partner, or adviser. SUBPART B-ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF EMPLOYEES

1450.735-21 Proscribed actions.-An employee shall avoid any action, whether or not specifically prohibited by this subpart, which might result in, or create the appearance of:

(a) Using public office for private gain;
(b) Giving preferential treatment to any

tuity, 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 the Board;

(2) Conducts operations or activities that are within the scope of the Renegotiation Act of 1951, as amended; or

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

(b) There are excepted from the prohibitions contained in paragraph (a) of this section:

(1) Transactions governed by obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships 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 on an inspection tour where an employee may properly be in attendance;

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

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

(c) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, nothing herein contained shall prohibit a voluntary gift of nominal value or donation in a nominal amount, made on a special occasion such as marriage, illness, or retirement.

(d) 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, 80 Stat. 952 (22 U.S.C. 2621-2626).

(e) Neither this section nor § 1450.735-23 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other recessary

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subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Board orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

1450.735-23 Outside employment and other activity.-(a) An employee shall not engage in, or conduct negotiations or arrangements for, outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his employment with the Board. 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 his mental or physical capacity to perform his duties and responsibilities as an employee in an acceptable manner.

(b) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209).

(c) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, the Civil Service Regulations, or this part. 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 Civil Service Commission or Board of Examiners for the Foreign Service, that is dependent on information obtained as a result of his employment by the Board, except when that information has been made available to the general public or will be made available on request, or when the Board gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. In addition, a member of the Board, covered by

section 401(a) of the Executive 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 the Board, or which draws substantially on official data or ideas which have not become part of the body of public information.

(d) Revoked.

(e) This section does not preclude an employee from:

(1) Reserved.

(2) Participation in the activities of national or state political parties not proscribed by law. (3) 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 civic organization.

1450.735-24 Financial interests.-(a) An employee shall not:

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

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his employment with the Board.

(b) This section 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, Part 735 of the Civil Service Regulations (5 CFR, Part 735), or this part.

1450.735-25 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.

1450.735-26 Misuse of information.-For the purpose of furthering a private interest, an employee shall not, except as provided in § 1450.735-23 (c), directly or indirectly use, or

allow the use of, official information obtained through or in connection with his employment by the Board which is not available to the general public.

1450.735-27 Indebtedness.-An employee shall pay each just financial obligation in a proper and timely manner. For the purpose of this section, a "just financial obligation" means one acknowledged by the employee, or reduced to judgment by a court, or imposed by law, such as Federal, State, or local taxes; and "in a proper and timely manner" means in a manner which the Board, if consulted, 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, this section does not require the Board to determine the validity or amount of the disputed debt.

1450.735-28 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 numbers slip or ticket. However, this section does not preclude activities under section 3 of Executive Order 10927 (relating to fund raising) or Board-approved activities of a similar nature.

1450.735-29 General conduct; conduct prejudicial to the Government.-(a) Every employee shall conduct himself in such a manner that the work of the Board is effectively accomplished, observing at all times the requirements of courtesy, consideration and promptness in dealing with representatives of other Departments and Agencies, contractor representatives, and the general public.

(b) An employee shall not engage in criminal, infamous, dishonest, immoral or notoriously disgraceful conduct, or other conduct prejudicial to the Government.

1450.735-30 Miscellaneous statutory provisions. In addition to the regulations in this part and Part 1480 of this subchapter, each employee shall acquaint himself with each statute that relates to his ethical and other conduct as an employee of the Board and of the Government. The attention of employees is directed to the following statutory provisions: