(2) Outside employment which tends to impair an employee's mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(d) No employee shall engage in outside employment under a State or local government except in accordance with Part 734 of the CSC Regulations (5 CFR Part 734) and with the express approval of the Ad Hoc Committee (established by § 105.735-10).

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

(1) Participation in the activities of national or State political parties not proscribed by law.

(2) 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.

[Rev. 1, 31 F.R. 4670, Mar. 19, 1966, as amended by Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

§ 105.735-4-7 Employees required to submit statements of employment and financial interests.

(a) Statements of employment and financial interests shall be submitted by: (1) All employees paid at Executive Levels IV and V of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code.

(2) The General Counsel, the Deputy General Counsel, the Assistant Administrator for Planning, Research and Analysis, the Deputy Assistant Administrator for Planning, Research and Analysis, the Assistant Administrator for Congressional and Public Affairs, the Deputy Assistant Administrator for Congressional and Public Affairs, the Assistant Administrator for Administration, the Deputy Associate Administrator for Financial Assistance, the Deputy Associate Administrator for Procurement and Management Assistance, Hearing Examiners and Area Administrators.

(3) All branch managers Grade GS12 or above, and all employees classified at GS-13 or above who make decisions or take final action in regard to: (1) Contracting;

(ii) Regulating or licensing small business investment companies;

(iii) Granting financial assistance; (iv) Issuing certificates of competency; and

(v) Making size determinations.

Area Administrators will inform the incumbents of the affected field positions that they are required to file such statements while Associate and Assistant Administrators and the General Counsel will so inform the incumbents of the affected Washington Office positions under their jurisdiction.

(b) (1) Statements of employment and financial interests required to be filed by Washington Office employees shall be submitted to the SBA Standards of Conduct Counselor while such statements required to be filed by field employees shall be submitted to the Area Standards of Conduct Counselor. The Area Counsel are hereby designated Area Standards of Conduct Counselors for their respective Areas. Each such statement shall be held in confidence and no information therefrom may be disclosed except as the Civil Service Commission or the Administrator may determine for good cause shown. Employees designated to review statements are responsible for maintaining them in confidence and shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purpose of this part.

(2) Statements of employment and financial interests shall be submitted by employees within 30 days after becoming incumbents of positions subject to this section. Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year. If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of 18 U.S.C. 208 or of this part.

(c) Any employee who complains that his position has been improperly included under the requirements of this section as one requiring the submission of a statement of employment and financial interests may, if he so desires, have opportunity for review of his complaint under the Agency grievance procedure as set forth in ND 370-3.

(d) [Reserved]

(e) The interests of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, "member of an employee's immediate household" means

those blood relations who are residents of the employee's household.

(f) If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf.

(g) The statements of employment and financial interests required under this section for use by employees shall contain the information required by the format prescribed by the Civil Service Commission on page 735-D-3 in Appendix D to Part 735 of the Federal Personnel Manual. Agency forms may be obtained from field administrative officers and the Office of Personnel in Washington.

(h) This section does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included in an employee's statement of employment and financial interests.

(i) The statements of employment and financial interests and supplementary statements required of employees are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, order, or regulation. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, order, or regulation.

[Rev. 1, 31 F.R. 4670, Mar. 19, 1966, as amended by Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

§ 105.735-4-8 Special Government employees required to submit statements of employment and financial inter

ests.

(a) Each special Government employee shall submit a statement of em

ployment and financial interests containing the following information:

(1) All other employment, and

(2) Those financial interests which relate either directly or indirectly to the duties and responsibilities of the special Government employee.

(b) Such statement shall be submitted to the Standards of Conduct Counselor not later than the time of employment of the special Government employee. Each special Government employee shall keep his statement current throughout his employment by the submission of supplementary statements as provided in § 105.735-4-7 (d).

§ 105.735-4-9

Conduct of special Government employees.

(a) In addition to other rules of conduct provided for special Government employees in this part, no special Government employee shall use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business or financial ties.

(b) No special Government employee shall use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business or financial ties. For the purpose of this section, "inside information” means information obtained under Government authority which has not become part of the body of public information. A special Government employee may teach, lecture or write in a manner not inconsistent with § 105.735-4-6(b).

(c) No special Government employee shall use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business or financial ties.

(d) No special Government employee, while so employed or in connection with his employment, shall receive or solicit from anyone having business with the Administration anything of value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business or financial ties.

(e) The exemptions cited in § 105.7353-3(g) relating to employees are also applicable as exemptions for special Government employees to the prohibitions of paragraph (d) of this section.

§ 105.735-4-10 Review of statements of employment and financial interests. Statements of employment and financial interests and supplementary statements thereto shall be reviewed only by the Area Standards of Conduct Counselor or the SBA Standards of Conduct Counselor, as appropriate. The appropriate Standards of Conduct Counselor shall determine when and how any employee or special Government employee shall be provided an opportunity to explain any real or apparent conflict of interest disclosed by statements of employment and financial interests or revealed by information from other sources. The opportunity to explain shall in all cases be provided an employee or special Government employee concerned. In the event the conflict, real or apparent, is not resolved at the Standards of Conduct Counselor level, the matter shall be forwarded to the SBA Standards of Conduct Counselor who shall present the entire matter to the Ad Hoc Committee (established by § 105.735-10). The Ad Hoc Committee shall report the matter, together with its recommendations, to the Administrator.

[Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

§ 105.735-5 Conflicts between personal opinions of employees and Government policy.

In the conduct of all official business, personal opinions of every Government employee must necessarily be completely subordinated to established Government policy relating to Administration programs. Every act of an employee in the discharge of official duties and responsibilities may become an act of the U.S. Government.

3333

elector, U.S. Senator or Congressman. 18 U.S.C. 595 makes such activity a criminal offense.

[Rev. 1, 31 F.R. 4670, Mar. 19, 1966, as amended by Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

§ 105.735-5-2 Subversiveness and communism.

53

(a) No employee shall advocate the overthrow of our constitutional form of government by force or violence or knowingly be a member of an organization which so advocates nor shall any person convicted of such conduct be employed by the Administration for at least 5 years after such conviction. 5 U.S.C. 7311; 18 U.S.C. 1918, 2385 provide penalties for such actions.

(b) No employee shall conceal or fail to disclose that he is a member of a registered Communist organization, Communist action organization, Communist infiltrated organization, nor shall any employee with knowledge that such organization is registered as such contribute funds or services to such organization. 50 U.S.C. 784 makes such concealment or contribution unlawful.

[Rev. 1, 31 F.R. 4670, Mar. 19, 1966, as amended by Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

§ 105.735-5-3 Striking against the Gov

ernment.

No employee shall assert the right to strike against the Government or knowingly be a member of an organization of Government employees asserting such right. 18 U.S.C. 1918 also make such employee subject to fine and imprisonment.

[Rev. 1, 31 F.R. 4670, Mar. 19, 1966, as amended by Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

§ 105.735-5-4 Discrimination.

(a) No employee shall discriminate against or in favor of any employee or any applicant for employment in the Government because of race, color, religion, sex, national origin, political opinions, marital status, or physical handicaps, nor shall any employee make any inquiries concerning the race, political affiliation or religious beliefs of any employee or any applicant for employment.

(b) No employee shall discriminate, in the conduct of the business of the Administration, against any person, firm, enterprise or other entity because of race, color, sex, religion, national origin or political opinions.

§ 105.735-6

Information and data.

(a) No employee shall communicate to any other person whom the employee knows or has reason to believe to be an agent or representative of any foreign government or an official or member of any Communist organization any information classified by the President or the Administrator as affecting the security of the U.S. Government. 50 U.S.C. 783 makes such act a criminal offense and provides heavy penalties therefor.

(b) No employee shall divulge or disclose any official information not authorized by law relating to trade secrets, processes, operations, style of work or apparatus or identity, confidential statistical data, amount or source of income, profits, losses of any person or firm. 18 U.S.C. 1905 makes such activity a criminal offense.

(c) No employee or special Government employee shall give any unauthorized information concerning any future action or plan of the Administration which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Administration. Section 16(b) of the Small Business Act makes such activity a criminal offense and provides for heavy penalties.

(d) No employee shall, for the purpose of furthering a private interest, except as provided in § 105.735-4-6(b), directly or indirectly, use or allow the use of official information obtained through or in connection with the employee's Government employment which has not been made available to the general public.

(e) Additional regulations concerning disclosure of information are to be found in Part 102 of this chapter.

shall conduct himself in such manner that the work of the Administration is effectively accomplished and must also observe the requirements of courtesy, consideration, and promptness in dealing with or serving the public or the clientele of the Administration.

(b) No employee or special Government employee shall 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 paragraph does not preclude activities:

(1) Conducted by employee organizations among their own members for organizational support or for benefit or welfare funds for their members under policies and procedures approved by the Administrator.

(c) Each employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State or local taxes. For the purpose of this paragraph, 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 Director of Personnel determines does not, under the circumstances, reflect adversely on the Administration as employer. In the event of dispute between an employee and an alleged creditor, this section does not require the Administration to determine the validity or amount of the disputed debt.

(a) Any employee guilty of violating any of the above provisions may be subject to disciplinary action, including suspension or dismissal from employment with the Administration, in addition to other penalties provided by law.

(b) When, after consideration of the explanation of the employee or special Government employee provided by § 105.735-4-10, the Administrator decides remedial action is required, such remedial action 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) Disciplinary action; or

(4) Disqualification for a particular assignment.

§ 105.735-10 Ad Hoc Committee.

An Ad Hoc Committee composed of the General Counsel, serving as Chairman thereof, the Assistant Administrator for Administration and the Director, Office of Public Information, shall advise and aid the Administrator in the promulgation and administration of pertinent conflict of interest agency regulations, and in the determination of specific instances of possible conflicts of interests, including the requirements of §§ 105.735-4-2, 105.735-4-3 and 105.735-4-10. The Director, Office of Audits, shall be an alternate member of the Ad Hoc Committee to serve in the absence or disability of a member of the Committee, or in the event a member of the Committee is otherwise disqualified to act. All requests for determinations, whenever necessary, under these standards of conduct shall be addressed through proper channels to this Committee.

§ 105.735-11 Statutory provisions.

The attention of all employees and special Government employees is directed to the following statutory provisions:

(a) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. 312, the "Code of Ethics for Government Service."

(b) Chapter 11 of Title 18, United States Code, relating to bribery, graft, and conflicts of interest, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913). (d) The prohibition against disloyalty and striking (5 U.S.C. 7311; 18 U.S.C. 1918).

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

(f) 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).

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

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

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

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

(n) 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).

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

(p) The prohibition

against pro

scribed political activities, The Hatch Act (5 U.S.C. 7324), and 18 U.S.C. 602, 603, 607, and 608.

(q) The prohibitions against (1) embezzling or misapplying funds and securities, (2) making false reports with intent to defraud, (3) receiving money or profit fraudulently through any act of the Administration and (4) making profit out of information about value of securities of companies receiving assistance (15 U.S.C. 635).

[Rev. 1, 31 F.R. 4670, Mar. 19, 1966, as amended by Amdt. 4, 32 F.R. 14384, Oct. 18, 1967]

(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).