(2) Ownership of shares in a mutual fund;

(3) 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 American stock exchanges. 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;

(4) Remainder interest in any trust over which the employee does not have any right of control and the investments of which do not exceed the limitations specified in paragraph (g)(3) of this section.

(h) Effect of employees' statements on other requirements. The statements of employment and financial interests and supplementary statements required of employees are in addition to, and are not in substitution for, or in derogation of, any similar requirement imposed by law, regulation, or Executive order. The submission of the statement or supplementary statement by an employee does not permit him or any other person to participate in any matter in which his or the other person's participation is prohibited by law, regulation, or Executive order. Employees are required to notify their supervisor of any conflicts-of-interest between their Foundation duties and an organization with which they are negotiating for employment, and subsequently to divest themselves of said duties.

(i) Confidentiality of employees' statements. Each statement of employment and financial interest and each supplementary statement will be held in strictest confidence. The Executive Secretary shall maintain the confidential file of statements in such a manner that access to, or the disclosure of information from, a statement shall not be allowed except to carry out the purpose of this part.

[NSF Circ. 54, 31 FR 4595, Mar. 18, 1966, as amended at 33 FR 746, Jan. 20, 1968; 33 FR 2388, Jan. 31, 1968]

§ 600.735-9 Employee conduct.

(a) General: The Foundation assumes that each employee will conduct himself in a manner that will not discredit or embarrass himself or the Foundation. However, it is pointed out that the violation of the regulations in this part or any criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct on the part of an employee (whether in official duty status or not) is cause for immediate disciplinary action, up to and including removal.

(b) Indebtedness: Employees are expected to meet their financial obligations and not to take advantage of the fact that their wages are not subject to garnishment for private debts. Failure to meet just financial obligations in a proper and timely manner may result in disciplinary action, up to and including removal. For the purpose of this section, a “just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which the agency 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 NSF to determine the validity or amount of the disputed debt.

(c) Payment of taxes: Employees are expected to meet their obligation for payment of taxes to Federal, State, and local authorities. Delinquency in payment of Federal, State, and local taxes is cause for disciplinary action, up to and including removal. Federal agencies are required to furnish State taxing authorities (including the District of Columbia) with a copy of Form W-2 indicating annual earnings and Federal income tax withheld. Employees are authorized to pay delinquent Federal taxes by payroll deduction, provided that they make satisfactory arrangements with the Internal Revenue Service to liquidate their tax liabilities in this manner. When such arrangements are not made, District Di

rectors of Internal Revenue have the authority to levy upon the salaries of Federal employees for the full amount of delinquent Federal income tax.

(d) Financial interests: Any employee may hold financial interests and engage in financial transactions in the same way as any private citizen not employed by the Foundation: Provided, That such interests or activities are not prohibited by law, Executive order, or the regulations in this part. In particular, no employee may have any direct or indirect financial interest that conflicts substantially or appears to conflict substantially with his duties and responsibilities as a Foundation employee. No employee shall carry out Foundation duties involving any organization in which he has a direct or indirect financial interest, except an organization or financial interest the reporting of which is waived under § 600.735-8(g). No employee shall engage directly or indirectly in any financial transaction resulting from, or primarily relying on, information obtained through his employment.

(e) Participation in NSF grants by former NSF employees: In cases not directly coming under the prohibitions of 18 U.S.C. 207 (relating to activities of former Government officials), the following rules shall apply:

(1) Where an employee on leave of absence from his university or other organization has suspended work on an NSF grant or contract to become a Foundation employee, he may resume his work under the grant or contract immediately upon terminating his service with the Foundation. He may also apply at once to the Foundation for support for his resumed activities.

(2) In addition to the statutory bars against ever dealing with the U.S. Government in connection with a particular matter in which he participated personally and substantially while an employee, and against dealing with the Government for 1 year after leaving in connection with a matter under his official responsibility while in the Government, a former regular employee of the Foundation may not negotiate with NSF, with a view to obtaining support for himself or his organization, by grant, contract, or otherwise,

within 1 year after having left NSF, except with the written authorization of the Director.

(3) Former employees of the Foundation may not be compensated directly from an NSF grant or contract within 1 year of their leaving the Foundation, except with the written permission of the Director.

(f) Gifts, entertainment, and favors: (1) Employees may not solicit or accept directly or indirectly from any person, institution, corporation, or group, anything of economic value as a gift, gratuity, favor, entertainment, or loan, which might be reasonably interpreted by others as being of such a nature that it would affect his impartiality. This is especially applicable in those instances where the employee has reason to believe that the person, institution, corporation, or group:

(i) Has, is seeking, or is likely to seek assistance, support, or funds from the Foundation; or

(ii) Conducts operations or activities which are involved with, or are supported by, the Foundation; or

(iii) Has interests which might be substantially affected by the employee's performance or nonperformance of duties; or

(iv) May be attempting to affect the employee's official actions.

(2) As required by law (5 U.S.C. 7351), no employee shall solicit contributions from another employee for a gift to an official superior. A superior shall not accept a gift obtained from contributions from employees receiving less salary than himself. An employee shall not make a donation as a gift to an employee in a superior position. However, it is not intended that this paragraph prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(3) Employees are not permitted to accept a gift, or decoration, or other objects from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342.

(4) Employees may accept promotional material of nominal intrinsic value such as pens, pencils, note pads, calendars, etc. Employees may on in

frequent occasions accept items of nominal value such as food in the ordinary course of a luncheon or dinner meeting, site visit, or professional conference when the employee is properly in attendance.

(g) Outside employment: (1) Employees shall not engage in any outside employment or other outside activity not compatible with the full and proper discharge of their Foundation duties and responsibilities. Incompatible activities include, but are not limited to, acceptance of anything of monetary value which may result in or create the appearance of a conflict of interest.

(2) Employees shall not engage in outside employment which tends to impair their health or capacity to discharge acceptably their duties and responsibilities.

(3) Employees shall not receive anything of monetary value from a private source as compensation for their activities as Foundation employees.

(4) Employees shall not engage in teaching, lecturing, or writing which is dependent on official information obtained as a result of Government employment, except when the information has been, or is being made available to the general public, or will be made available to the public on request, or when the Director or Deputy Director gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. However, employees are encouraged to engage in teaching, lecturing, and writing not prohibited by the regulations in this part, by law, or by Executive order.

(5) Employees shall not receive anything of monetary value for any consulting, lecturing, discussion, writing, or presentation, the subject of which is devoted to the responsibilities, programs, or operations of the Foundation, or which draws on official data or ideas which have not become part of the body of public information.

(6) Employees shall not serve as organizers or directors of scientific conferences, colloquia or similar events supported by grant or contract from the Foundation, but may otherwise participate in such events provided they do not receive any compensation

or economic benefit for such participation.

(7) Employees shall avoid any action whether or not specifically prohibited which might result in or create the appearance of:

(i) Using public office for private gain;

(ii) Giving preferential treatment to any person;

(iii) Impeding Government efficiency or economy;

(iv) Losing complete independence or impartiality;

(v) Making a Government decision outside official channels; or

(vi) Affecting adversely the confidence of the public in the integrity of the Government.

(8) Employees may, however, participate in the affairs of, and accept an award for meritorious public contribution or achievement given by a charitable, religious, fraternal, educational, recreational, public service, or civic organization.

(h) Advice or assistance to nonprofit or commercial organizations: The conditions under which employees may offer assistance or advice to nonprofit or commercial organizations are set forth in this paragraph (h).

(1) General rule. While not on official duty, an employee may provide advice or assistance and receive compensation therefor, to either nonprofit or commercial organizations, provided that such services are unrelated to his activities at the Foundation and do not draw upon information deriving from Government sources not publicly available.

(2) Specific situations-(i) Visiting committees. Except with the specific approval of the Director, employees should not participate in the deliberations of a college or university visiting committee; however, an employee may meet with such groups as a Foundation official where it would be appropriate to attend a similar meeting with any other comparable group requesting his assistance.

(ii) Participation in non-Federal research institutions. Except with the specific approval of the Director, employees may not participate in any way in the policy making or administration of a non-Federal research insti

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tution which receives or is eligible to receive funds from a Federal agency.

(iii) Membership and office holding in professional societies. Except with the specific approval of the Director, an employee may be a member of a professional society, but may not serve as an officer except where the society has not received any support from the Foundation during the preceding three years and the employee has no reason to expect it to seek support during the tenure of his office. If the society later requests support from the Foundation, the employee should resign his office in the society or request permission to remain in such office.

(i) Misuse of information: For the purpose of furthering a private interest, employees shall not (except as provided in paragraph (g)(4) of this section) directly or indirectly use, or allow the use of, official information obtained through, or in connection with, his Government employment which has not been made available to the general public.

(j) Compensation from NSF-awarded funds: No employee may receive any compensation either directly or indirectly from NSF funds awarded to contractors or grantees.

(k) Use of Federal property: No employee may use Federal property or facilities of any kind for other than officially approved activities. Every employee has the responsibility to protect and conserve all Federal property which has been entrusted to him.

(1) Exercise of notary powers: Employees who are notaries public may not charge or receive any compensation for performing any notarial act during working hours, including the luncheon period.

(m) Political activity: Restrictions in this section are applicable to employees on leave, leave without pay, or furlough, as well as to other regular employees of the Foundation. Individuals whose employment is on an intermittent basis (not occupying a substantial portion of their time) are subject to the political-activities restrictions only while they are in an active-duty status. The period of active-duty status for a particular employee includes the entire 24-hour period of any day of

actual employment. The Federal Personnel Manual contains information on such restrictions. Copies of the Federal Personnel Manual may be consulted in the Personnel Office. If an employee is in doubt about permissible activities, he should contract the Personnel Office for clarifications.

(1) Employees may not use their official positions or influence for the purpose of interfering with an election and they may not take an active part in political management or in political campaigns, except as provided in paragraphs (m) (4) and (5) of this section.

(2) No employee may discriminate against another employee because of his political opinions or affiliations.

(3) An employee may not become a candidate for nomination or election to a Federal, State, county, or municipal office on a partisan political ticket. Nor may an employee become a candidate as an independent when opposed by a partisan political candidate, except as provided in paragraph (m) (4) of this section.

(4) Certain political subdivisions in the vicinity of Washington, D.C., as well as other municipalities, designated by the CSC, have been granted a limited exception to the rules prohibiting political management or candidacy for local office. In such municipalities, employees may become candidates as independents, even when opposed by partisan political candidates.

(5) In general, the Foundation encourages employees to be candidates for, and to hold, State, county, or municipal offices of a nonpartisan nature when permitted by law. Employees desiring to be candidates for or to hold a State or local office or to undertake the political management of a candidacy for such office, must first secure the approval of the head of their Division or Office, and then forward their request to the Personnel Officer for approval.

(6) Full-time employees, with the prior consent of the Director, may hold positions under a State or local government on a part-time basis only. Intermittent employees may hold fulltime or part-time State or local government positions. In both cases, the above restrictions on political activity must be observed.

§ 600.735-20 Purpose.

(a) In order to meet the requirements of the Civil Service Commission pertaining to conflicts of interest and ethical conduct, this subpart prescribes NSF policy and procedures governing all NSF consultants and shall serve as formal notification of the conditions for serving as consultants. Acceptance of the appointment as consultant signifies that the consultant is subject to and will abide by the conditions set forth in this subpart.

(b) To promote the highest possible standards of honesty, integrity, and impartiality in the conduct of its business, the National Science Foundation conveys to all consultants the regulations in this subpart as an aid in the avoidance of actual or apparent conflicts of interest and misconduct.

(a) A consultant shall not use his position for the actual or apparent purpose of private gain for himself or another person, particularly one with whom he has family business or financial ties, nor shall he convey inside information (that which has not become part of the body of public information and that would not be available upon request) directly or indirectly to any person for the purpose of private gain for himself or another person, particularly one with whom he has family business or financial ties.

(b) A consultant shall not, either for or without compensation, engage in teaching, lecturing, or writing that is dependent on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the Director gives written authorization for the use of nonpublic information on the basis that the use is in the public interest.

(c) A consultant shall not use his position with the Foundation to coerce or give the appearance of coercing a person to provide private gain for himself or another person.

(d) A consultant shall not, in connection with his NSF duties, receive or solicit from anyone having business with the Foundation anything of value such as a gift, gratuity, loan, or entertainment for himself or another person. (This does not prohibit the infrequent acceptance of unsolicited advertising or promotional materials of nominal value such as pens, note pads, or calendars, or the acceptance of food or refreshments of nominal value characteristic of luncheon or dinner meetings.)

(e) A consultant shall adhere to the same standards of conduct made applicable to employees of the National Science Foundation by § 600.735-9 (a) through (d), (f), and (k) through (n).