(a) At the time of appointment, each consultant shall complete and submit to the Personnel Office, National Science Foundation, the form entitled "Statement of Employment and Financial Interests." Present consultants must submit such statement not later than June 30, 1966. It is necessary that the consultant report all Federal and non-Federal employment, as well as those financial interests which relate either directly or indirectly to his Foundation duties or responsibilities. Inquiries as to whether financial interests relate directly or indirectly to his duties or responsibilities should be directed to the Conflicts-of-Interest Counselor, National Science Foundation.

(b) Consultants are not required to submit information relating to their financial interests in any professional society not conducted as a business enterprise as described in the next sentence, charitable, religious, social, fraternal, recreational, public service, civic, political, or similar organization not conducted as a business enterprise. Professional societies, educational institutions and other nonprofit organizations engaged in research, development, or related activities involving grants of money from, or contracts with, the Government are deemed "business enterprises" and are quired to be included in consultants' statements of employment and financial interests.

re

(c) Each consultant must file a supplementary statement of employment and financial interests whenever a significant change occurs in either employment or financial interests to keep his record current.

(d) All original and supplementary statements of employment and financial interests 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.

(e) It should be noted that the statements of employment and financial interests and supplementary statements

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 a consultant 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. It is the responsibility of each consultant to acquaint himself with the relevant statutes. A listing of such statutes is provided in the Appendix to this part. Upon request, the Personnel Office, National Science Foundation will provide excerpts of pertinent portions of these statutes.

[NSF Circ. 54, 31 FR 4595, Mar. 18, 1966, as amended at 33 FR 747, Jan. 20, 1968]

§ 600.735-24 Resolution of possible conflicts-of-interest situations.

(a) The Conflicts-of-Interest Counselor of the Foundation is available to provide advice and guidance to each consultant requiring counsel regarding possible conflicts-of-interest situations and will offer the consultant an opportunity to explain any conflict or appearance of conflict. Whenever a consultant has reason to believe that a present or proposed activity or financial interest of his might conflict or might appear to conflict with Government statutes or regulations, he should bring the matter to the attention of the Conflicts-of-Interest Counselor. The Conflicts-of-Interest Counselor will discuss such matters with the consultant, as well as any other possible conflicts-of-interest situations revealed by the statement of employment and financial interests.

(b) Conflicts-of-interests situations that cannot be resolved through their discussions will be presented to the General Counsel, who, if necessary, will refer the matter to the Director of the Foundation for resolution. In rare cases when it is not possible to resolve the conflict-of-interest situation by changing the consultant's duties or by his divesting himself of his conflicting interest, it may be necessary to request he resign his appointment.

601.4

601.5

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

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

6. The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information (18 U.S.C. 1905).

7. The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352). 8. The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a(c)). 9. The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).

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

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

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

13. The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

14. 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).

15. The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

16. The prohibition against political activities in subchapter III of Chapter 73 or Title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608.

17. The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

18. The prohibition against the holding of a position in the Government of the United States or of the District of Columbia by anyone convicted of a felony related to the inciting, promoting, encouraging or partici

Classification Review Committee.

Derivative classification.

601.6 Downgrading and declassification. 601.7 Mandatory declassification review. 601.8 Access to classified materials. 601.9 Access by historical researchers and former Presidential appointees.

AUTHORITY: E.O. 12065, 43 FR 28949, June 28, 1978.

SOURCE: 45 FR 1422, Jan. 7, 1980, unless otherwise noted.

§ 601.1 Purpose.

Pursuant to Executive Order 12065 and Information Security Oversight Office Directive No. 1, the National Science Foundation [Foundation] issues the following regulations. The regulations identify the information to be protected, prescribe classification, declassification, downgrading, and safeguarding procedures to be followed, and establish a monitoring system to ensure the regulations' effectiveness.

§ 601.2 Classification authority.

Executive Order 12065 removed the Foundation's prior authority for original classification of national security information as "SECRET" and "CONFIDENTIAL". In any instance where a Foundation employee develops information that appears to warrant classification because of its national security character, the material will be afforded protection and sent to the Administrative Services Branch (ASB). Upon determination that classification is warranted, ASB will submit such material to the agency that has appropriate subject matter interest and classification authority.

§ 601.3 Security program.

The Chief, Administrative Services Branch, is responsible for conducting a security program that ensures effective implementation of Executive Order 12065, to include:

(a) Maintaining active training and orientation programs for employees concerned with classified information or material.

(b) Encouraging Foundation personnel to challenge those classification decisions they believe to be improper.

(c) Issuing directives that ensure classified information is used, processed, stored, reproduced and transmitted only under conditions that will provide adequate protection and prevent access by unauthorized persons.

(d) Recommending to the Director appropriate administrative action to correct abuse or violation of any provision of these regulations, including notification by warning letters, formal reprimand, and to the extent permitted by law, suspension without pay and removal.

§ 601.4 Classification Review Committee.

The Security Officer (Information) chairs the Foundations's Classification Review Committee which has authority to act on all suggestions and complaints with respect to the Foundation's administration of the regulations. The Assistant Directors and the Heads of other offices reporting to the Director serve as members of the Committee. All suggestions and complaints including those regarding overclassification, failure to classify, or delay in declassifying not otherwise resolved, shall be referred to the Committee for resolution. The Committee shall establish procedures to review and act within 30 days upon all appeals regarding requests for declassification. The Committee is authorized to overrule previous determinations in whole or in part when in its judgement, continued protection is no longer required. If the Committee determines that continued classification is required under the criteria of the Executive Order, it shall promptly so notify the requester and advise him that he may file an application for review with the Foundation. In addition, the Committee shall review all appeals of re

quests for records under section 552 of Title 5 U.S.C. (Freedom of Information Act) when the proposed denial is based on their continued classification under Executive Order 12065.

§ 601.5 Derivative classification.

Distinct from "original" classification is the determination that a document must be classified because it contains paraphrases, restatements, or summaries of, or incorporates in new form, information previously classified by proper authority. Authority to apply derivative classification is granted the Director and Assistant Directors, who may delegate this responsibility to the Division level. Original classification decisions must be respected, and to the extent practicable, the current level of classification should be verified through the original classification authority. The newly created document must be marked with the current level of classification and the declassification or review markings and any additional authorized markings in accordance with the following paragraphs.

(a) New material that derives its classification from information classified on or after December 1, 1978, shall be marked with the declassification date or event, or the date for review, assigned to the source information.

(b) New material that derives its classification from information classified under prior Orders shall be treated as follows:

(1) If the source material bears a declassification date or event twenty years or less from the date of origin, that date or event shall be carried forward on the new material.

(2) If the source material bears no declassification date or event or is marked for declassification beyond twenty years, the new material shall be marked with a date for review for declassification at twenty years from the date of original classification of the source material

(3) If the source material is foreign government information bearing no date or event for declassification or is marked for declassification beyond thirty years, the new material shall be

marked for review for declassification at thirty years from the date of original classification of the source material.

§ 601.6 Downgrading and declassification.

(a) Executive Order 12065 is intended to improve protection against unauthorized disclosure of national security information or material while increasing openness in Government by limiting classification and accelerating declassification. Declassification shall be given emphasis comparable to that accorded classification, with declassification action taken as early as national security considerations permit. The loss of the information's sensitivity with the passage of time or on the occurrence of a declassification event shall form the basis for the decision to declassify. Foundation documents given original classification prior to December 1, 1978 may be declassified by the authorizing official, a successor, or by a supervisory official of either.

(b) Information given original classification by the [see 3-4] Foundation prior to December 1, 1978, and not in the possession and control of the General Services Administration, must receive a systematic review for declassification as it becomes twenty years old. Any records considered to require extension of classification must be submitted to an official designated under E.O. 12065 as having original classification authority. Absent such extension, or a prior automatic declassification date, the information is declassified automatically as the end of twenty years from the date of original classification. Exempt from such automatic declassification and the twenty year systematic review is foreign government information. Such information, unless declassified earlier, will be given a declassification review thirty years from its date of origin. As used herein, "foreign government information" is information provided to the United States by a foreign government or international organization of governments in the expectation, express or implied, that the information is to be kept in confidence; or information produced by the United States pursuant to a written joint agreement with

a foreign government or international organization of governments requiring that either the information or the arrangements, or both be kept in confidence.

§ 601.7 Mandatory declassification review.

(a) The Administrative Services Branch is hereby designated as the office to which members of the public or Departments may direct requests for mandatory review for declassification under this provision. In the case of documents originally classified by the Foundation, this office shall, in turn, assign the request to the appropriate office for action within 60 days. In each instance, receipt of the request will be acknowledged in writing immediately by the office that has been assigned action. A request for classification review must reasonably describe the document.

(b) Whenever a request is deficient in its description of the record sought, the requester should be asked to provide additional identifying information to the extent possible. Whenever a request does not reasonably describe the information sought, the requester shall be notified that unless additional information is provided or the scope of the request is narrowed, no further action will be undertaken. Upon a determination that the requested material no longer warrants classification, it shall be declassified and made promptly available to the requester, if not otherwise exempt from disclosure under 5 U.S.C. 552(b) (Freedom of Information Act) or other provision of law. If the information may not be released in whole or in part, the requester shall be given a brief statement as to the reasons for denial, a notice of the right to appeal the determination of the Classification Review Committee, and a notice that such an appeal must be filed with the Foundation within 60 days in order to be considered.

(c) When the request relates to a document given derivative classification by the Foundation, the request and the document will be forwarded to the originator of the source document, and the requestor notified of such referral.

(d) Employees presently cleared for access to classified information are encouraged to challenge classification in cases where there is reasonable cause to believe that information is classified unnecessarily, improperly, or for an inappropriate period of time. Such challenges should be brought to the attention of the Security Officer (Information)

who will act thereon within 30 days, informing the challenger of actions taken. Requests for confidentiality will be honored.

§ 601.8 Access to classified materials.

No person may be given access to classified information unless that person has been determined to be trustworthy and unless access is necessary for the performance of official duties.

§ 601.9 Access by historical researchers and former Presidential appointees. The requirement in § 601.8 that access to classified information may be granted only as is necessary for the performance of official duties may be waived for persons who are engaged in historical research projects, or previously have occupied policymaking positions to which they were appointed by the President, provided they execute written agreements to safeguard the information and written consent to the Foundation's review of their notes and manuscripts solely for the purpose of determining that no classified information is disclosed. A precondition to any such access is the favorable completion of an appropriate investigative inquiry.

lowing financial interests of a National Science Foundation employee in an organization which applies for a grant, contract, or other arrangement (the "applicant organization") from the Foundation are hereby determined to be too remote or inconsequential to affect the integrity of such employee when such financial interest consists of employment by or service as officer, director, trustee, or partner (or negotiation for prospective employment, office or partnership) in an organization (the "owning organization") which owns stocks, bonds, notes, or other evidences of financial interest in the applicant organization, the amount of which is:

(a) Less than 5 percent of the total portfolio of investments of the owning organization, and

(b) Less than 5 percent of the total outstanding amounts of the same class or classes of securities or other evidences of financial interest issued by the applicant organization, provided that such holding does not constitute de facto control of the applicant organization.

[39 FR 4664, May 6, 1974]

§ 602.2 Applicability.

The rule set forth in § 602.1 shall apply to those financial interests of which the employee has or by virtue of his position in an owning organization should have actual knowledge.

[39 FR 4664, May 6, 1974]

§ 602.3 Support services for performance of National Science Board tasks and responsibilities.

With the approval of the Director and the Chairman of the National Science Board and in accordance with other laws and regulations, the Foundation may contract with the home institution of a Member of the National Science Board to provide professional, clerical, and administrative services in support of the Member's personal efforts to carry out National Science Board tasks and responsibilities. The institution may receive reimbursement of all allowable costs, but no profit or fee. In such circumstances the Foundation finds that any financial inter