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81105.735-4 Statutory provisions.

Each employee is responsible for acquainting himself not only with the provisions of this part, but also with applicable portions of each Federal statute relating to his conduct as an employee of the National Endowment for the Arts or the National Endowment for the Humanities and of the U.S. Government. This part will be called to the attention of all employees by the Administrative Officer of the Foundation at least once a year and he will provide a copy of the part to each new employee who joins either the National Endowment for the Arts or the National Endowment for the Humanities or becomes a member of the shared staff. (A list of pertinent statutes is provided in the Appendix to this part.)

for the Arts or the National Endowment for the Humanities or a member of the shared staff of both Endowments. The term "employee" includes both a "regular employee" (as defined in this section) and a “special Government employee" unless expressly qualified.

(b) "Regular employee" means a person holding an appointment in the competitive or excepted service, occupying a position on the staff of either Endowment or the shared staff of both Endowments, without regard to assigned working schedule (that is, including full-time, part-time and intermittent schedules), but excluding all "special Government employees” who have not been designated as “regular employees” by the Chairman of either Endowment for purposes of these regulations.

(c) "Full-time employee" means a "regular employee" with an assigned full-time working schedule.

(d) “Part-time employee" means a "regular employee" with an assigned part-time (less than 40 hours a week) work schedule.

(e) “Intermittent employee" means a "regular employee" with an assigned intermittent working schedule.

(f) “Shared staff” and “joint employees” mean employees performing services for both Endowments on a shared basis.

(g) "Special Government employee" means a “special Government employee" as defined in section 202 of title 18 of the United States Code who is employed by the National Endowment for the Arts or the National Endowment for the Humanities, or by both Endowments jointly.

(h) “Endowment” means either the National Endowment for the Arts or the National Endowment for the Humanities.

(i) “Foundation" means the National Foundation on the Arts and the Humanities.

(j) “Chairman” means the Chairman of the National Endowment for the Arts, or the Chairman of the National Endowment for the Humanities. (Sec. 10, 79 Stat. 852 as amended 82 Stat. 186, 84 Stat. 443 (20 U.S.C. 959)) (38 FR 3511, Feb. 7, 1973)

8 1105.735–5 Conflicts-of-Interest Counsel

or. (a) Conflicts-of-Interest Counselor. The General Counsel of the Foundation is designated the Conflicts-of-Interest Counselor, with responsibility for providing, on request from any employee, counsel regarding conflicts-ofinterest regulations and requirements, as well as their applicability in particular situations. Each employee is responsible for seeking the advice of the Conflicts-of-Interest Counselor whenever it appears that he may be, or may become, involved in a possible conflicts-of-interest situation. Any supervisor may refer to the Conflicts-of-Interest Counselor any possible conflicts-of-interest situation involving a subordinate of his whenever he deems such action appropriate. In such cases, the subordinate concerned shall be informed that the matter has been referred for consideration and shall be afforded the opportunity to state his case. The General Counsel of the Foundation is responsible for reviewing conflicts-of-interest matters brought to his attention and for attempting to work with the employees concerned in resolving such situations, and for offering employees an opportunity to explain any conflict or appearance of conflict. Matters which cannot be satisfactorily resolved in this manner will be referred to the Chairman of the Endowment conerned, or, in the case of a share staff nember, to the Chairmen of both Enlowments, for decision and approprite action. Remedial action, whether lisciplinary or otherwise, shall be efected in accordance with any applicale laws, Executive orders, and regulaions.

(b) Disciplinary and other remedial ctions. When there is a final decision hat a conflicts-of-interest situation equires disciplinary or other remedial .ction, such action shall be taken romptly to end the conflict or apearance of conflict of interest and to arry out any appropriate disciplinary neasure. Any action taken, whether lisciplinary or otherwise, shall be efected in accordance with applicable aws, Executive orders, Civil Service Commission regulations and the reguations in this part. The action taken nay involve, among other things:

(1) Divestment by the employee of is conflicting interest; (2) Changes in existing duties; (3) Disqualification for a particular ssignment;

(4) Appropriate disciplinary action, up to and including removal. 32 FR 17663, Dec. 12, 1967, as amended at 13 FR 494, Jan. 13, 1968)

require the incumbent to report in order to avoid involvement in a possible conflicts-of-interest situation and carry out the purpose of law.

(2) Requirements of the National Endowment for the Arts and the National Endowment for the Humanities. In order to fulfill the Endowments' obligations under the general Government requirement described in paragraph (a)(1) of this section, it has been determined that a Statement of Employment and Financial Interests must be completed and submitted in accordance with the procedures set forth in this section by employees occupying the following positions:

(i) National Endowment for the Arts:

(a) Deputy chairman.

(6) All special assistants to the chairman and deputy chairman.

(c) All program, division and office directors.

(ii) National Endowment for the Humanities:

(a) Deputy chairman.

(6) All assistants (including special assistants) to the chairman and deputy chairman.

(c) All program and office directors (but not including the Public Information Director).

(d) All program officers classified at GS-13 and above.

(iii) Shared staff: (a) All attorneys.

(6) Director and Assistant Director of Administration.

(c) All auditors classified at GS-13 and above.

(d) Financial manager.
(e) Administrative services officer.

All grants officers. (3) Inclusion and exclusion of positions. (i) Whenever appropriate, the Chairman of an Endowment may amend paragraph (a)(2) of this section to include additional positions in his Endowment that entail submission of such statements or may exclude any positions in his Endowment listed in paragraph (a)(2) of this section the inclusion of which is not required by the general requirement in paragraph (a)(1) of this section. Inclusion or elimination of shared positions will be accomplished by agreement of both Chairmen. Each supervisor is responsi

11105.735–6 Statements of employment

and financial interests. (a) Employees other than special Government employees—(1) General requirement. Statements of employnent and financial interests are required of all Federal employees occupying positions at or above Grade 16 or the equivalent, as well as all employees occupying positions which ither require the exercise of judgnent in making a Government decision, or in taking Government action with regard to:

(i) Contracting or procurement; (ii) Administering or monitoring grants or subsidies;

(iii) Regulating or auditing private or other non-Federal enterprises;

(iv) Other activities where the deci. sion or action has an economic impact on the interest of a particular nonFederal enterprise; or

ble for bringing to the attention of the subparagraph, each employee shall at appropriate Chairman (through the all times avoid acquiring a financial inDeputy Chairman) any position which terest that could result, or taking an the supervisor believes should be cov- action that would result, in a violation ered or excluded by this requirement. of the conflicts of interest provisions

(ii) If an employee believes that his of section 208 of title 18, U.S.C., or position has been improperly included $ 1105.735-7 of this part. The Adminisamong those for which a Statement of trative Office of the Foundation is reEmployment and Financial Interests is sponsible for informing each new, afrequired, he may bring this matter, via fected employee of the requirement the Foundation's grievance proce- for him to submit the statement dures, to the attention of the appro- within 30 days after his entrance on priate Deputy Chairman or, in the duty. case of shared staff, to the attention (5) Interests of employees' relatives. of both Deputy Chairmen. In the For purposes of the statement, the in. event that the recommendation is terests of a spouse, minor child, or any made that the position be included, other member of an employee's immethe employee may appeal to the diate household who is a blood relaChairman of the Endowment con- tion of the employee, are considered to cerned, or, in the case of shared staff, be interests of the employee. to both Chairmen, whose ruling shall (6) Information not known by embe final.

ployees. If information required to be (iii) Although an employee's position included on the statement of employ. may generally be included within the ment and financial interests (suppleterms of paragraph (a)(1) of this sec- mentary or otherwise, including holdtion, such position may be excluded ings placed in trust) is not known by from the reporting requirement when the employee but is known to another it is determined that:

person, the employee shall request (a) The duties of a position are such such other person to submit the inforthat the likelihood of the incumbent's mation on his behalf. involvement in a conflicts-of-interest (7) Information not required. Em. situation is remote; or

ployees are not required to submit in(6) The duties of a position are at formation relating to their financial such a level of responsibility that the interests in any professional society submission of a statement of employ- not conducted as a business enterprise ment and financial interests is not nec- as described in the next sentence, essary because of the degree of super- charitable, religious, social, fraternal, vision and review over the incumbent recreational, public service, civic, politor the inconsequential effect on the ical, or similar organization not conintegrity of the Government.

ducted as a business enterprise. Pro(4) Submission of original and sup- fessional societies, educational instituplementary statements. Each employee tions, and other nonprofit organizacovered by this requirement shall com- tions engaged in research, developplete the statement and submit it ment, or related activities involving within 90 days after the effective date grants of money from, or contracts of this part. Each new employee shall with, the Government are deemed complete and submit the statement “business enterprises” and are rewithin 30 days after his entrance on quired to be included in employees' duty or within 90 days after the effec- statements of employment and finan. tive date of this part, whichever date cial interests. is later. All changes in, or additions to, (8) Effect of employees' statements the information contained in each em- on other requirements. The statements ployee's original statement must be re- of employment and financial interests ported in a supplementary statement and supplementary statements resubmitted by the employee as of June quired of employees are in addition to, 30 each year. If no changes or addi- and are not in substitution for, or in tions occur a negative report is re- derogation of, any similar requirement quired. Not withstanding the filing of imposed by law, regulation, or Executhe annual report required by this tive order. The submission of the

statement or supplementary state- ment. It is necessary that the special ment by an employee does not permit Government employee report all Fedhim or any other person to participate eral and non-Federal employment, in any matter in which his or the and, when a statement of financial inother person's participation is prohib- terests is required, those financial inited by law, regulation, or Executive terests which relate, either directly, or order.

indirectly, to his Foundation responsi(9) Confidentiality of employees' bilities or duties. statements. Each statement of employ. (2) Each special Government emment and financial interest and each ployee must file a supplementary supplementary statement will be held statement of employment and finanin strictest confidence. The officials cial interests whenever a significant designated below to receive such state- change occurs, either in his employments will not allow access to, or infor- ment or financial interests, in order mation to be disclosed from, a state- that his statement may be kept curment except to carry out a purpose of rent. this part. Information will not be dis- (3) The provisions of paragraphs (a) closed from the statement except as (5) through (9) of this section apply to the Civil Service Commission or the special Government employees in the appropriate Chairman (or Chairmen, same manner as to other employees. in the case of shared staff members) may authorize for good cause shown.

(Sec. 10, 79 Stat. 852, as amended at 82 Stat.

186, 84 Stat. 443 (20 U.S.C. 959)) (10) Review of statements. (i) Each Deputy Chairman will submit his

(32 FR 17663, Dec. 12, 1967, as amended at

38 FR 3512, Feb. 7, 1973) statement to the appropriate Endowment Chairman.

8 1105.735–7 Employee conduct. (ii) Employees of either Endowment shall submit their statements to the

(a) General. (1) Each Endowment asDeputy Chairman of that Endowment.

sumes that an employee will conduct (iii) Joint employees shall submit

himself in a manner that will not distheir statements to both Deputy

credit or embarrass himself or the EnChairmen.

dowment. However, it is pointed out (iv) When a statement submitted

that the violation of the regulations in under paragraph (b)(2) or (3) of this

this part, or any criminal, infamous, section indicates a conflict between

dishonest, immoral, or notoriously disthe interests of an employee and the

graceful conduct on the part of an emperformance of his services for the

ployee (whether in official duty status Government and when the conflict or

or not), is cause for immediate discipliappearance of conflict cannot be re- nary action, up to and including resolved by the Deputy Chairman (or by

moval. both Deputy Chairmen in the case of (2) Employees shall avoid

any joint employees), he shall report the

action, whether or not specifically proinformation concerning the conflict or

hibited, which might result in or appearance of conflict to the Chair. create the appearance of: man through the General Counsel. In (i) Using public office for private the case of joint employees, informa

gain; tion concerning the conflict or appear

(ii) Giving preferential treatment to ance of conflict shall be reported to any person; both Chairmen. The employee con- (iii) Impeding Government efficiencerned shall be given an opportunity cy or economy; to explain the conflict or appearance (iv) Losing complete independence of conflict before remedial action is or impartiality; initiated.

(v) Making a Government decision (b) Special Government employees. outside official channels; or (1) Each special Government employ- (vi) Affecting adversely the confiee shall submit a statement of employ- dence of the public in the integrity of ment, and, unless otherwise directed, a the Government. statement of financial interests not (b) Indebtedness. Employees are exlater than the time of his employ- pected to meet their just financial ob


ligations and not to take advantage of direct or indirect financial interest. No the fact that their wages are not sub- employee shall engage directly or indi. ject to garnishment for private debts. rectly in any financial transaction reFailure to meet just financial obliga- sulting from, or primarily relying on, tions in a proper and timely manner information obtained through his emmay result in disciplinary action, up ployment, or use his employment to to, and including, removal. For the coerce, or give the appearance of copurpose of this section, a “just finan. ercing, a person, to provide financial cial obligation" means one acknowl. benefit to himself or another. edged by the employee or reduced to judgment by a court, and “in a proper grants by former Endowment employand timely manner" means in ees. In cases not directly coming under manner which the agency determines the prohibitions of 18 U.S.C. 207 (redoes not, under the circumstances, re- lating to activities of former Govern. flect adversely on the Government as ment officials), the following rules his employer. In the event of dispute shall apply: between an employee and an alleged (1) In addition to the statutory bars creditor, this section does not require against ever dealing with the U.S. the Endowment concerned to deter- Government in connection with a parmine the validity or amount of the dis- ticular matter in which he participatputed debt.

ed personally and substantially while (c) Payment of taxes. Employees are an employee, and against dealing with expected to meet their obligations for the Government for 1 year after leavpayment of taxes to Federal, State, ing in connection with a matter under and local authorities. Delinquency in his official responsibility while in the payment of Federal, State, and local Government, a former regular employtaxes is cause for disciplinary action, ee of an Endowment may not negotiup to, and including, removal. Federal ate with either Endowment, with a agencies are required to furnish State view to obtaining support for himself taxing authorities (including the Dis- or his organization within 1 year after trict of Columbia) with a copy of Form having left the Endowment, except W-2 indicating annual earnings and with the written permission of the Federal income tax withheld. Employ- Chairman of the Endowment in which ees are authorized to pay delinquent he had been employed. Federal taxes by payroll deduction: (2) A former regular employee of an Provided, That they make satisfactory Endowment may not be compensated arrangements with the Internal Reve- from an Endowment grant directly or nue Service to liquidate their tax li- indirectly within 1 year of his leaving abilities in this manner. When such ar- the Endowment, except with the writrangements are not made, District Di- ten permission of the Chairman of the rectors of Internal Revenue have the Endowment in which he had been emauthority to levy upon the salaries of ployed. Federal employees for the full amount (3) In the case of joint employees, of delinquent Federal income tax. the written permission referred to in

(d) Financial interests. Any employ- paragraphs (e)(1) and (2) of this secee may hold financial interests and tion must be given by both Chairmen. engage in financial transactions in the (f) Gifts, entertainment, and favors. same way as any private citizen, pro- Employees may not solicit, or accept vided that such interests or activities directly or indirectly from any person, are not prohibited by law, Executive institution, corporation, or group, any. order, or the regulations in this part. thing of economic value as a gift, graIn particular, no employee may have tuity, favor, entertainment, or loan, any direct or indirect financial interest which might be reasonably interpreted that conflicts substantially or appears by others as being of such a nature to conflict substantially with his that it would affect his impartiality. duties and responsibilities as an En. This is especially applicable in those dowment employee. No employee shall instances where the employee has carry out Endowment duties involving reason to believe that the person, inany organization in which he has a stitution, corporation, or group:

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