(1) The maintenance of high standards of honesty, integrity, impartiality, and conduct by employees is essential to assure the proper performance of Government business and the maintenance of confidence by citizens in their Government; and

(2) The avoidance of misconduct and conflicts of interest on the part of employees through informed judgment is indispensable to the maintenance of these standards.

(b) The regulations in this part implement the findings in paragraph (a) of this section by

(1) Establishing standards of conduct to which each employee must adhere; and

(2) Describing actions the Secretary may take if an employee violates a particular standard.

(Authority: E.O. No. 11222, May 8, 1965, as amended; 5 CFR 735.101, 5 CFR 735.104)

§ 73.2 Definitions.

The following definitions apply to this part:

Act means the Ethics in Government Act, as amended.

Counselor means

(a) The person designated by the Secretary to provide interpretation of the standards of conduct and advisory services to Department employees

under § 73.4; or

(b) Any deputy counselor designated by the Secretary.

Day means calendar day.
Department

means the United States Department of Education. Designated Agency Ethics Official or DAEO means

(a) The person appointed by the Secretary and charged with

(1) Ensuring departmental compliance with the requirements of the Ethics in Government Act of 1978, as amended;

(2) Coordinating and managing the Department's ethics program, as described in 5 CFR 738.203; and

(3) Serving as liaison to the Office of Government Ethics with regard to all aspects of the Department's ethics program.

(b) An alternate DAEO designated by the Secretary.

"Employee."

(a) This term means—

(1) Any officer or employee of the Department or of an advisory committee to the Department; or

(2) A special Government employee, unless specifically provided otherwise. (b) The term does not mean an independent contractor under a personal services contract.

Foreign government means

(a) Any unit of foreign governmental authority, including any foreign national, State, local, or municipal government;

(b) Any international or multinational organization whose membership is composed of any unit of foreign government described in paragraph (a) of this definition; or

(c) A person acting as agent or representative of any unit or organization described in paragraph (a) or (b) of this definition.

(Authority: 5 U.S.C. 7342)

Member of the employee's immediate household means a resident of the employee's household who is related to the employee by blood or law.

Nominal means $25.00 or less, unless the Counselor, in a given case, approves a higher amount.

Person means an individual, corporation, company, association, firm, partnership, society, joint stock company, or any other organization or institution.

Principal officer means an individual who heads a principal operating component or an official of the principal operating component acting for the principal officer under a delegation of authority.

Principal operating component means an office in the Department headed by an Assistant Secretary, a Deputy Under Secretary, or an equivalent departmental officer who reports directly to the Secretary.

Secretary means the Secretary of Education or an official or employee of the Department acting for the Secretary under a delegation of authority. Senior employee means—

(a) An employee compensated at a rate of pay specified for Executive Schedule positions under 5 U.S.C., chapter 53, subchapter II or at a comparable or greater rate of pay under other authority; or

(b) An employee in a position designated by the Director of the Office of Government Ethics as involving significant decision-making or supervisory responsibility, in accordance with 18 U.S.C. 207(d)(1)(C).

"Special Government employee."

(a) This term means an employee who is retained, designated, appointed, or employed by the Department to perform temporary duties

(1) On a full-time or intermittent basis;

(2) With or without compensation; and

(3) For not more than 130 days during any period of 365 consecutive days.

(b) The term includes a consultant, expert, or member of a Department advisory committee who meets the conditions of paragraph (a) of this definition.

Tax-exempt organization means an organization exempt from taxes under section 501(c)(3) of the Internal Revenue Code, relating to non-profit educational, religious, charitable, and other specified organizations that may not engage in propaganda or legislative lobbying as a substantial part of their activities or participate in political campaigns.

(Authority: 5 CFR 735.104; 18 U.S.C. 202; 26 U.S.C. 501(c)(3))

§ 73.3 Employee notification.

(a) The Secretary provides a copy of this part to each employee.

(b) The Secretary makes available for inspection by Department employees copies of Executive orders, regulations, and statutes referred to in this part, together with related explanatory materials.

(Authority: 5 CFR 735.104)

§ 73.4 Interpretation, advisory services, and counseling.

(a) An employee shall become familiar with the provisions of this part.

(b) In any case of doubt as to the proper application or interpretation of a provision of this part, the employee may consult with the Counselor.

(c) On an annual basis or, in the case of a new employee, at the time of entrance on duty, the Secretary notifies

employees of the availability of counseling services.

(d) The Secretary, as appropriate, issues notices

(1) Containing more specific guidance on practices and procedures to carry out this part; and

(2) Serving to remind employees of their responsibilities and of particular prohibitions under this part.

(Authority: 5 CFR 735.105)

§ 73.5 Disciplinary and other remedial action.

(a) A violation of any provision of this part by an employee may be cause for appropriate disciplinary action, which may be in addition to any penalties prescribed by law.

(b) If, after considering the employee's explanation for any conflict or apparent conflict of interest, or any other violation of this part, the Secretary decides that remedial action is required, the Counselor ensures that the employee and his or her principal officer take immediate action to end the conflict or apparent conflict of interest or other violation.

(c)(1) Whether disciplinary or otherwise, the remedial action must be in accordance with any applicable laws, Executive orders, and regulations.

(2) Remedial action may include, but is not limited to

(i) Changes in assigned duties; (ii) Divestment by the employee of his or her conflicting interest;

(iii) Disciplinary action, including possible removal from the Federal service; or

(iv) Disqualification of the employee for a particular assignment.

(Authority: 5 CFR 735.107)

or other conduct prejudicial to the Government.

(c) The employee shall avoid any action, whether or not specifically prohibited by this part, that might result in, or create the appearance of—

(1) Using public office for private gain;

(2) Giving preferential treatment to any person;

(3) Impeding Government efficiency or economy;

(4) Losing complete independence or impartiality;

(5) Making a decision on behalf of the Government outside official channels; or

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

(d) The employee shall comply with the "Code of Ethics for Government Service" (House Concurrent Resolution 175, 85th Congress, 2nd Sess. 312), which is attached as an Appendix to this part.

(Authority: 5 CFR 735.201(a))

873.11 Financial interests.

(a) An employee may not

(1) Have a direct or indirect financial interest that conflicts, or appears to conflict, substantially with the employee's official duties and responsibilities; or

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained as a Federal employee.

(b) This section does not preclude the employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Federal Government so long as the interest or transaction is not prohibited by law, Executive order, or regulations.

(c) Financial interests of a spouse, minor child, or member of the employee's immediate household are regarded, for purposes of this section, as financial interests of the employee.

(Authority: 5 CFR 735.204, 735.407)

Subpart C-Gifts, Travel, and Outside Activity

§ 73.20 Gifts, entertainment, and favors.

(a) General Prohibitions. (1) Except as provided in paragraph (b) of this section and in § 73.21, an employee may not solicit or accept from a prohibited source-directly or indirectly on his or her own behalf or on behalf of the Department-any gift, gratuity, favor, entertainment, loan, or other thing of monetary value.

(2) For purposes of this section, a prohibited source means a person who

(i) Has, or is seeking to obtain, contractual, grant, or other business or financial relations with the Department;

(ii) Conducts business or financial operations or activities that are regulated by the Department; or

(iii) Has business or financial interests that may be substantially affected by the performance or nonperformance of the employee's official duties.

(b) Exceptions. Notwithstanding paragraph (a) of this section, the employee may

(1) Accept a gift, gratuity, favor, entertainment, loan, or other thing of monetary value from a friend, parent, spouse, child, or other close relative if it is clear that the family or personal relationship involved is the motivating factor;

(2)(i) Accept food or refreshments of nominal value on infrequent occasions

(A) In the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour at which the employee may properly be in attendance; or

(B) At a widely attended gathering of mutual interest to the Government and industry-such as a reception, seminar, conference, or training session-if attendance at the gathering is approved in advance by the employee's supervisor on the basis that

(1) It is in the Department's interest that the employee attend; and

(2) The timing or reasons for the event do not create an appearance of impropriety;

(ii) A meeting under paragraph (b)(2)(i)(A) of this section may include a large group meeting at which the employee is the guest speaker or a working meeting at which food is brought in to facilitate continuance of the work and is not itself the focus of the meeting but does not include a meeting between a small number of individuals at a restaurant or private club at which business may be discussed;

(3) Accept a loan from a bank or other financial institution on customary terms to finance a proper or usual activity of the employee, such as a home mortgage loan; and

(4) Accept unsolicited advertising or promotional material of nominal value, such as a pen, pencil, note pad, or calendar.

(c) Gifts between employees. (1)(i) An employee may not solicit contributions from another employee for a gift to a supervisory employee.

(ii) An employee may not accept a gift from an employee who receives less pay than he or she receives.

(iii) An employee may not make a donation as a gift to a supervisory employee.

(2) As used in paragraph (c) of this section, "supervisory employee" means an employee who directly or indirectly supervises or has authority over the soliciting or contributing employee.

(3) Nothing in paragraph (c) of this section prohibits a voluntary gift of nominal value or donation in a nominal amount on a special occasion such as marriage, illness, or retirement.

(d) Foreign governments. (1) Except as provided in paragraph (d)(2) of this section, an employee

(i) May not accept from a foreign government any emolument, office, or title; and

(ii) Shall submit to the DAEO for transmittal to the General Services Administration, for use and disposal as property of the United States, any present, decoration, or other gift that the employee is unable to refuse from a foreign government.

(2) An employee may accept from a foreign government

(i) Certain gifts of minimal value, as established by regulation (41 CFR part 101-49);

(ii) Specified military decorations; or (iii) Payment for travel expenses, to the extent permitted in § 73.21 of this part.

(Authority: U.S. Constitution, Art. 1, sec. 9, para. 8; 5 U.S.C. 7342, 7351; 5 CFR 735.202) § 73.21 Acceptance of travel expenses and awards.

(a) Official travel. (1) Except as provided in paragraph (a)(2) of this section, an employee may not accept from any source other than the Government payment for travel or expenses incident to travel on official business.

(2) The employee may accept the type of payment referred to in paragraph (a)(1) of this section if

(i) Acceptance is approved in advance in accordance with Department procedures; and

(ii) The payment is from—

(A) A tax-exempt organization for expenses incident to training or attendance at meetings, subject to the provisions of 5 U.S.C. 4111 and 5 CFR 410.702;

(B) A donor whose donation is accepted under section 421 of the Department of Education Organization Act, which contains the Secretary's gift acceptance authority; or

(C) A foreign government for travel taking place entirely outside the United States, subject to the restrictions of 5 U.S.C. 7342.

(3) The employee may accept payment in cash only if it is the type of payment referred to in paragraph (a)(2)(ii)(A) or (a)(2)(ii)(C) of this section.

(b) Non-official travel. (1) An employee may accept payment in cash or kind for travel or expenses incident to travel of a non-official nature if acceptance is compatible with the other standards contained in this part, including, for example, the provisions on accepting gifts in § 73.20(a).

(2)(i) The employee should refer to his or her supervisor any question as to whether the employee's travel is of an official or non-official nature.

(ii) In determining whether the employee's travel is of an official or nonofficial nature, the supervisor considers such factors as the relationship of

the trip's purpose to the employee's official duties, the Department's interest in the employee's participation in the activity for which travel is taken, and the employee's independent interest in the activity or relationship to the sponsor of the trip.

(3)(i) Unless it raises a question under paragraph (b) (1) or (2) of this section, the employee's acceptance of payment for non-official travel is not subject to approval procedures referenced in paragraph (a) of this section.

(ii) However, the non-official travel may be subject to prior approval as an outside activity under § 73.22.

(c) Awards. An employee may accept an award for a meritorious public contribution or achievement from a charitable, religious, professional, social, fraternal, non-profit educational, recreational, public service, or civic organization if acceptance of the award is compatible with the other standards in this part.

(Authority: 5 U.S.C. 4111; 5 CFR 735.203)

§ 73.22 Outside employment and other activities.

(a) General. (1) An employee may not engage in outside employment or other outside activity incompatible with the full and proper discharge of the duties and responsibilities of his or her Government employment.

(2) Incompatible activities include, but are not limited to

(i) Acceptance of a fee, compensation, gift, payment of expenses, or any other thing of monetary value in circumstances in which acceptance would

(A) Result in, or create the appearance of, a conflict of interest; or

(B) Otherwise violate the standards in this part;

(ii) Outside employment or other outside activity that tends to impair the employee's mental or physical capacity to perform assigned Government duties in an acceptable manner;

or

(iii) Outside activity that—

(A) Conflicts with the interests of the Government; or

(B) Could reasonably be construed by the public to be official acts of the Government.

(b) Prior approval. (1) Except as provided in paragraph (b)(2) of this section, an employee who intends to engage in outside employment or in other outside activity shall obtain prior approval from his or her principal officer in accordance with procedures of the Department.

(2) Prior approval is not required if the outside activity will not

(i) Be performed during the employee's regular work hours;

(ii) Aggregate 10 or more hours a week;

(iii) Involve public writing or speaking;

(iv) Involve services for a prohibited source, as defined in § 73.20(a)(2), or services that relate to any matters funded by or regulated by another Federal agency; and

(v) Reasonably raise questions under the standards in this part.

(3) The principal officer files in his or her immediate office a record of each approval under this paragraph.

(4) The Secretary issues guidelines giving specific examples of outside activities that are incompatible with Government duties.

(5) The requirement of paragraph (b)(1) of this section does not apply to a special Government employee.

(c) Disclaimer-(1) General. (i) In engaging in an outside activity-including speaking, teaching, or writing-an employee may not use his or her official title or affiliation with the Department except as provided in paragraph (c)(1)(ii) of this section.

(ii) An employee may mention his or her official title or affiliation with the Department to identify the employee's background or experience in a manner that does not suggest or convey official endorsement of the activity.

(2) Outside activity related to official duties. If the employee engages in any outside activity related to his or her official duties or to programs of the Department and if the employee's title and affiliation are used or known by the audience, the employee shall include a disclaimer stating that

(i) The activity was undertaken by the employee in his or her private capacity; and