matters affecting the Government (based on 18 U.S.C. 203). 0.735-26 Disqualification of former officers and employees in matters connected with former duties or official responsibilities (based on 18 U.S.C. 207).

0.735-27 Appearances by former employees before NRC.

0.785-28

0.735-29

Confidential statements of employment and financial interests. Restrictions against owning certain security interests upon Commissioners staff and other related personnel.

Subpart C-Other Restrictions Imposed by Statute on Conduct of Employees

0.735-30 Description of statutory provisions. Subpart D-Restrictions Imposed by NRC Administrative Decision on Conduct of Employees 0.735-40

0.735-41 0.735-42

0.735-43

0.735-44

0.735-45

0.735-46

0.735--47

0.735-48 0.735-49

Outside employment and other outside activity.

Misuse of information.

Gifts, entertainment, and favors.
Use of Government property.
Scandalous conduct.

Employee Indebtedness.

Gambling. betting, and lotteries. Handling of funds entrusted by fellow employees. Ex parte contacts. Employment of persons on extended leave of absence from a previous employer with reemployment rights or other benefits with the previous employer. 0.735-49a Other proscribed actions. Subpart E-Ethical and Other Conduct and Responsibilities of Special Government Employees 0.735-50 Use of Government employment. 0.735-51 Use of Inside information.

0.735-52

Coercion.

0.735-53 Gifts, entertainment, and favors.

0.735-54 Miscellaneous statutory provisions. 0.735-55 Applicable standards of conduct. Annex A-Concurrent Resolution.

Annex B-Position Categories Requiring Statements of Employment and Financial Interests By Incumbents.

Annex

-Criteria for Determining Positions or Categories of Positions Listed in Annex B.

AUTHORITY: The provisions of this Part 0 issued under E.O. 11222; 3 CFR, 1964-1965 Comp., 5 CFR 735.104.

SOURCE: The provisions of this Part 0 appear at 31 F.R. 4502, Mar. 17, 1966, unless otherwise noted.

NOMENCLATURE Mar. 3, 1975.

$ 0.735-1

CHANGES: 40 FR. 8774

Subpart A-General

Policy.

(a) The personnel policy of the U.S. Nuclear Regulatory Commission states, in part, that:

The Atomic Energy Act requires the Commission to assure itself that the character, associations, and loyalty of workers in atomic energy are of a high order. Conduct and self discipline, both on and off the job, must measure up to unusual standards

(b) Section 735.101 of the Civil ServIce Commission regulations (5 CFR 735.101), issued pursuant to Executive Order 11222, May 8, 1965, states that:

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

§ 0.735-2 Program objective.

(a) The program objective is to protect the interests of the public and employees by setting forth principles, practices, and standards governing conduct of employees in such a manner that they may be readily understood by the individuals involved and practicably administered by the NRC.

(b) It is expected that the provisions of this part will be observed and administered in a manner which is consistent with both their spirit and their letter.

(c) of necessity, because of the nature of the criminal statutes and the subject matter involved, this part cannot deal with all of the problems which may arise with regard to the conduct, including conflicts of interest, of employees and former employees.

§ 0.735-3 Responsibilities and authorities.

(a) Employees shall:

(1) Comply with the statutes and the rules, standards of conduct, and other regulations set forth in this part.

(2) Consult the full text of applicable statutes as to whether an action in question may in any way violate the statutes.

(3) Be guided in all their actions by the Code of Ethics for Government Service, adopted by concurrent Resolution of the Congress (Annex A).

(4) Conduct themselves in such a manner as to create and maintain respect for the NRC and the U.S. Government and avoid situations which require or appear to require a balancing of private interests or obligations against official duties.

(5) Be mindful of the high standards of integrity expected of them in all their activities, personal and official.

(6) Not give or appear to give favored treatment or competitive advantage to any member of the public, including former employees of the NRC, appearing before them on their own behalf or on behalf of any nongovernmental interest.

(7) Recognize that violation of any of the instructions or statutes referred to in this part may subject them to disciplinary action by NRC in addition to the penalty prescribed by law for such violation.

(8) Discuss with their immediate supervisor, or counselor, as appropriate. any problem arising out of this part.

(b) Supervisors:

(1) Inform themselves of any problems of their employees arising out of this part, consult with the cognizant NRC counselor as appropriate, and take prompt action to see that the problems, if they cannot be resolved, are referred to higher authority.

(2) Relieve employees from assignments in accordance with § 0.735-22(ə).

(c) The Executive Director for Operations assumes responsibilities assigned in §§ 0.735-21(b), 0.735–22(b), 0.735-23 (d) and (e), 0.735-26 (c) and (d), and 0.73528.

(d) The Directors of Offices and Divisions. (1) Bring to the attention of appropriate contractors under their jurisdiction those provisions of this part (such as "Future Employment"; "Ex Parte Contacts"; "Assisting Former Employees"; "Gifts, Entertainment, and Favors"; "Cancellation of Contracts"; and others) which may affect the actions of a contractor and his employees in dealing with NRC employees.

(2) Report to the Office of Administration. All complaints concerning fraud, graft, corruption, diversion of NRC assets, and misconduct of NRC employees; take action as a result of investigations; and report on action taken, as provided in NRC Manual Chapter 0702, "Notification and Investigation of Misconduct".

(3) Assume responsibilities assigned in §§ 0.735-21(b), 0.735–22(b), 0.735–23(d), 0.735-27, 0.735-28, and 0.735-40(b).

(e) The Director, Office of Administration. (1) Provides a copy of this part to each employee and special Government employee, and to each such new employee at the time of his entrance on duty.

(2) Provides a copy of all revisions to each employee and special Government employee.

(3) Brings the provisions of this part to the attention of each employee and special Government employee annually, and at such other times as circumstances warrant.

(4) Assures the availability of counseling services under paragraph (h) of this section to each employee and special Government employee.

(5) Has available for review by employees and special Government employees, as appropriate, copies of laws, Executive Order 11222, NRC regulations, and pertinent Civil Service Commission regulations and instructions relating to ethical and other conduct.

(6) Notifies employees and special Government employees at time of entrance on duty and periodically thereafter of the availability of counseling services under paragraph (h) of this section and how and where these services are available.

(f) The Director, Office of Administration, assumes the responsibilities assigned in §§ 0.735-40 (b) and 0.735-49.

(g) The Office of the Agency Inspector and Auditor investigates all questions of employees' conduct, fraud, etc., in NRC

in accordance with NRC Manual Chapter 0702.

(h) The Solicitor.

(1) Is the counselor for NRC.

(2) Serves as NRC's designee to the Civil Service Commission on matters covered by this part.

(3) Designates deputy counselors.

(4) Coordinates counseling services, and assures that counseling and interpretations on questions of conflicts of interest and other matters covered by the part are available to deputy counselors.

(5) Carries out the specific responsibilities assigned in §§ 0.735-27, 0.735-28, and 0.735-49 (b).

[31 FR 4502, Mar. 17, 1966, as amended at 40 FR 8775, Mar. 3, 1975; 40 FR 20268, May 9, 1975]

§ 0.735-4 Definitions.

(a) "Commission” means the Commission of five members or a quorum thereof sitting as a body, as provided by section 201 of the Energy Reorganization Act of 1974, 88 Stat. 1233.

(b) "NRC" means the agency established by Title II of the Energy Reorganization Act of 1974 comprising the members of the Commission and all offices, employees, and representatives authorized to act in any case or matter, whether clothed with final authority or not.

(c) "Employee" means an NRC officer or employee and, insofar as statutory and Executive order restrictions are concerned, a member of the Commission, but does not include (unless otherwise indicated) a special Government employee, or an employee of another Government agency assigned or detailed to the NRC.

(d) "Former employee" means a former NRC officer or employee as defined in paragraph (c) of this section, a former special Government employee, as defined in paragraph (e) of this section, a former member of the Nuclear Regulatory Commission, a former member of the Atomic Energy Commission, and a former officer or employee of the Atomic Energy Commission.

(e) "Special Government employee" means an officer or employee of the NRC who is retained, designated, appointed, or employed to perform, with or without compensation, for not to exceed 130 days during any period of 365 consecutive days, temporary duties either on a fulltime or intermittent basis. The term includes NRC consultants, experts, and members of advisory boards, but does not

include a member of the Uniformed Services.

(f) "Official responsibility" means 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.

(g) "Organization," as used in this part in connection with 18 U.S.C. 208, means universities, foundations, nonprofit research entities and similar nonprofit organizations, States, counties and municipalities and subdivisions thereof as well as business organizations.

(h) "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

[31 FR 4502, Mar. 17, 1966, as amended at 40 FR 8775, Mar. 3, 1975]

§ 0.735-5 Basic requirements.

(a) Applicability. The provisions of this part apply to all current and former NRC employees and special Government employees. Except for $ 0.735-28, the provisions of this part are not applicable to employees of other Government agencies assigned or detailed to the NRC. Employees of other Government agencies assigned or detailed to the NRC are required by 8 0.735-28 to furnish a statement of employment and financial interests if they are performing duties of a position specified in § 0.735-28(a). However, an employee of another Government agency assigned or detailed to the NRC is not relieved of his responsibilities under regulations or code of conduct prescribed by his parent agency.

(b) Cancellation of contracts. The Commission reserves the right to declare void, in accordance with law, any contract negotiated or administered in vio lation of the provisions of NRC regulations, or statute.

(c) Scope of part. This part incorporates the statutes, the instructions and specific procedures, pertaining to an employee's conduct.

(d) Construction of criminal or civil statutes. The paraphrased version of any criminal or civil statute in this part shall not constitute a binding interpretation thereof upon the NRC or the Federal Government

0.735-26 (c) and (d) shall be submitted for publication in the FEDERAL REGISTER.

(f) Disciplinary and other remedial action. (1) A violation of the regulations in this part by an employee or special Government employee may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law

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

(g) Presidential appointees. Presidential appointees covered by section 401(a) of Executive Order 11222 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 NRC, or which draws substantially on official data or ideas which have not become part of the body of public information.

[31 FR 4502, Mar. 17, 1966, as amended at 40 FR 8775, Mar. 3, 1975]

(a) Part I, "Policy," of Executive Order 11222 states:

Where government is based on the consent of the governed, every citizen is entitled to have complete confidence in the integrity of his government. Each individual officer, employee, or adviser of government must help to earn and must honor that trust by his own integrity and conduct in all official actions.

(b) The elimination of conflicts of interest in the Federal service is one of the most important objectives in establishing general standards of conduct. A conflict of interest situation may exist where a Federal employee's private interests, usually of an economic form, conflict, or raise a reasonable question of conflict with his public duties and responsibilities. The potential conflict is of concern whether it is real or only apparent.

(c) An employee, including special Government employee, shall not: (1) Have a direct or indirect financial interest that conflicts substantially, or ap

90-048 0-77- 2

pears to conflict substantially, with his Government duties and responsibilities; or (2) engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(d) An employee, including special Government employee, is not precluded 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, Executive Order 11222, Civil Service Commission regulations, or the regulations in this part.

(e) Certain provisions in 18 U.S.C. 201-209, dealing with conflicts of interest in Federal employment are referred to in §§ 0.735-21 through 0.735-27. § 0.735-21 Acts affecting a personal financial interest (based on 18 U.S.C. 208).

(a) General. Except as permitted by paragraphs (b), (c), and (d) of this section, no employee shall participate 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 concerning prospective employment, has a financial interest.

(b) Granting of ad hoc exemptions. (1) If an employee desires to request an exemption from the prohibition of paragraph (a) of this section, he shall fully inform the head of his division or office, as appropriate, in writing of the nature and circumstances of the particular matter and of the financial interests involved and shall request a written determination in advance as to the propriety of his participation in such matter.

(2) The head of his division or office, as appropriate, after examining the information submitted, may relieve the employee from participation in the particular matter and so advise him in writing; or, he may approve the employee's