duties (18 U.S.C. 209); and receiving excessive honorariums (2 U.S.C. 441i). (b) As used in this part, the term outside employment or other outside activity refers to any work, service, or other activity performed by an employee with or without compensation, other than in the performance of his/ her official duties. It includes such activities as writing and editing, publishing, teaching, lecturing, consulting services, self-employment, and other work or services.

§ 1207.301 Policy.

(a) NASA employees may not engage in outside employment or other outside activity that is not compatible with the full and proper discharge of the duties and responsibilities of their Government employment. Guidelines for determining compatibility are set forth in § 1207.302.

(b) NASA employees are encouraged to participate as private citizens in the affairs of their communities provided that the limitations prescribed in this paragraph and by these regulations are observed. Among these activities may be the following:

(1) Speaking, writing, editing, and teaching.

(2) Participation in the affairs of charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organizations, and the acceptance of an award for a meritorious public contribution or achievement from any such organization.

(3) Participation in the activities of national, state, and local political parties not proscribed by law. In this connection employees should be particularly aware of the restrictions imposed on their activities by the "Hatch Act" (5 U.S.C. 7321-7327).

§ 1207.302 Guidelines and limitations.

Outside employment or other outside activity is incompatible with the full and proper discharge of an employee's duties and responsibilities, and hence is prohibited if it would:

(a) Involve the violation of a federal or state statute, a local ordinance, Executive order, or regulation to which the employee is subject.

(b) Give rise to a real or apparent conflict of interest situation even though no violation of a specific statutory provision was involved.

(c) Involve acceptance of a fee, compensation, benefit, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance might result in, or create the appearance of, a conflict of interest.

(d) Constitute or create the appearance of using public office for private gain.

(e) Bring discredit upon, or could reasonably cause unfavorable criticism of, the Federal Government or NASA, or lead to relationships which might impair public confidence in the integrity of the Federal Government or NASA.

(f) Involve work with any contractor, subcontractor, or grantee which is connected with any work being performed by that entity for NASA, or, would otherwise involve work for any person or organization which may be in a position to gain advantage in its dealings with the Government through the employee's exercise of official duties.

(g) Identify NASA or its employees officially with any organization manufacturing, distributing, or advertising a product relating to work conducted by NASA, or could create the false impression that it is an official action of NASA, or represents an official point of view. In any permissible outside employment, care must be taken to ensure that names and/or titles are not used to give the impression that the activity or product is officially endorsed or approved by NASA or is part of NASA activities.

(h) Involve use of the employee's time during official working hours, although this does not preclude the use of approved leave for outside activities.

(i) Involve use by the employee of official facilities, (e.g., office space, office machines, telephones, supplies) or the services of other employees during duty hours.

(j) Be of such extent or nature as to interfere with the efficient performance of the employee's Government duties, or impair the employee's mental or physical capacity to perform them in an acceptable manner.

(k) Involve use of information obtained as a result of Government employment which is not freely available to the general public in that it either has not been made available to the general public or would not be made available on request. However, written authorization for the use of nonpublic information may be given when the Director of the Field or Component Installation or, at NASA Headquarters, the Associate Administrator for Management, determines that such use would be in the public interest.

§ 1207.303 Distinction between official and nonofficial activities.

(a) In applying the provisions of this subpart, particularly with regard to writing, speaking, or editing activities, NASA employees must distinguish between official and nonofficial activities. Official activities are conducted as part of an employee's NASA duties, whereas nonofficial activities constitute outside employment that must be in compliance with this subpart. In connection with writing, speaking, or editing, an activity will normally be considered official if:

(1) It is the result of a request addressed to NASA to furnish a speaker, author, or editor or of an invitation addressed to an employee of NASA to perform activities which are, in fact, within the employee's official duties, rather than as a private individual;

(2) The activity is performed in conjunction with attendance at a meeting approved under the authority of 5 U.S.C. 4110 (formerly the Government Employees Training Act); or

(3) It involves a single article, speech, or lecture, or participation in a single seminar, symposium, forum, or similar activity, the content of which is devoted substantially to the individual's official duties or personal involvement in NASA's plans or programs, or United States aeronautical or space activities. Conversely, a series of lectures as part of a regularly scheduled course or lecturer program at an educational institution, regardless of the subject matter, is regarded as nonofficial and therefore is an outside activity. The fact that an activity is prepared for or is performed outside of duty hours is not determinative of

(a) An employee may accept compensation or an honorarium for permissible outside employment or other outside activity which is nonofficial in character unless otherwise prohibited by this part. Under no circumstances may an honorarium be accepted for official activities. If an honorarium is offered for official activities of the employee, the employee should advise the donor that he/she cannnot legally accept it. If the donor insists, it should be explained that the honorarium will be accepted on behalf of NASA as an unconditional and voluntary gift in accordance with NMI 1210.1.

(b)(1) Except as provided in § 1207.202(d)(11), and in paragraph (b)(2) of this section, travel expenses will generally be borne by the Government when official activities of NASA employees are involved, including attendance at meetings of nongovernmental organizations although appropriate reimbursable agreements are permitted. Conversely, when nonofficial outside employment activities are involved, appropriated funds will not be utilized for travel or subsistence.

(2) In the course of official activities, contributions and awards incident to training in nongovernment facilities, and travel, subsistence, and other expenses incident to attendance at meetings may be accepted by NASA employees, provided that such contributions, awards, and payments are made by nonprofit organizations in connection with training under 5 U.S.C. 4111 (formerly the Government Employees Training Act) and that the employee has obtained specific written authorization from the Associate Administrator for Management or the Director of the Field or Component Installation to accept the contribution or award.

(3) No employee shall accept any honorarium of more than $2,000 (excluding amounts accepted for actual travel and subsistence expenses for such person and spouse or aide, and

excluding amounts paid or incurred for agents' fees or commissions) for any appearance, speech, or article. The provisions of this paragraph apply whether the appearance, speech, or article is outside employment approved under this subpart, or pertains to the private interests of the employee.

81207.305 Special conditions applicable to writing and editing.

(a) Subject to the limitations set forth in § 1207.302, NASA employees may serve as editors, as editorial consultants, or on editorial boards, and may contribute articles to publications issued by nonprofit organizations or by profit organizations involved in trade or news press publishing. Editing activities for profit organizations should be carefully appraised. Under no circumstances should the activity involve approval or disapproval of advertising.

(b) Writing and editing, with or without pay, which pertain to the private interests of employees regarding hobbies, sports, or cultural activities are permitted unless there are actual or apparent conflicts with their officially assigned duties.

§ 1207.306 Administrative approval.

(a) Aside from avoiding prohibited outside employment or other outside activity, each employee must also obtain administrative approval in accordance with paragraph (b) of this section before engaging in outside employment or other outside activity, with or without compensation, of the following types:

(1) Writing or editing except those activities set out in § 1207.305(b).

(2) Teaching and lecturing except as it relates to the private interests of employees regarding hobbies, sports, or cultural activities.

(3) Regular self-employment. (4) Consulting services.

(5) Holding state or local public office.

(6) Outside employment or other outside activity involving a NASA contractor, subcontractor, or grantee.

(7) Membership on a committee, board, or other such body of a profit making organization.

(8) Engaging in outside activity which involves the practice of a NASA-owned invention, provided that necessary licenses are obtained from the Government, and provided that the employee is not responsible in his/ her official capacity for further development, test, or study of that invention or similar NASA-owned inventions or any promotion of that invention or similar NASA-owned inventions on behalf of the Government.

(9) Any other outside work concerning the property of which an employee is uncertain.

Prior adminstrative approval may be required, on a case-by-case basis, by the supervisor or the Designated Agency Ethics Official for additional types of outside employment where, because of special considerations, such a requirement is considered desirable for the protection of employees or NASA.

(b) Procedures for permission to engage in outside employment or other outside activity.

(1) Form and content of request. A request for administrative approval of outside employment or other outside activity shall be in writing and show: (i) Employee's name and occupational title.

(ii) Nature of the activity: Full description of specific duties or services to be performed and time period involved.

(iii) Name and address of person and/or organization for which work will be done. In the case of self-employment in a professional capacity serving a large number of individuals, instead of listing each client, the employee will indicate the type of services to be rendered and an estimate of the total number of clients anticipated during the next 6 months. Specific notification of the identity of any client known to have business with NASA should be given prior to the performance of the service.

(iv) Estimated total time that will be devoted to the activity. If on a continuing basis, the estimated time per year; if not, the anticipated ending date.

(v) Whether service can be performed entirely outside of usual duty

hours; and if not, the estimated number of hours of absence from work that will be required.

(vi) The amount of remuneration and/or expenses, if any, to be received. (vii) A statement that the employee has no official involvement with the outside employer and will disqualify himself/herself in any matters that could directly affect the outside employer in performance of the employee's NASA duties.

(2) Routing. The request for approval will be submitted in duplicate through the supervisor to the appropriate Official-in-Charge of a Headquarters Office or to the Director of the Field or Component Installation or to the person designated to act for them, as appropriate. While the exact approval procedure to be used is left to the discretion of the installation, prior to action on a request for approval, the request shall be reviewed by a Deputy Ethics Counselor. In the case of key officials as defined in § 1207.102(a), requests for approval shall be submitted to the appropriate Official-in-Charge of the Headquarters Office or the Director of the Field or Component Installation, who will add a recommendation and will forward the request through the General Counsel to the Associate Administrator for Management for a determination. Employees will be notified in writing of the actions taken on their requests. All approved requests will be maintained Office.

in the local Personnel

(3) Keeping record up to date. If there is a significant change in the nature or scope of the duties or services performed either in the employee's NASA position or the outside position, or in the nature of the outside employer's business, the employee will submit a revised request for approval promptly. If the outside work is discontinued sooner than anticipated (not merely suspended temporarily), the employee will so notify the officer who approved the request.

(4) Enforcement. Failure to obtain written administrative approval for outside employment or other outside activity for which approval is required, may be ground for disciplinary action.

Subpart D-Financial Interests and Investments

§ 1207.400 Scope of subpart.

This subpart prescribes policies and procedures for the avoidance of conflicting financial interests in connection with an employee's Government position or in discharge of his or her official responsibilities and sets out the requirements for reporting financial interests and outside employment. It implements the requirement of Title II of the Ethics in Government Act of 1978 that certain employees file public financial disclosure reports, as well as implementing regulations of the Office of Government Ethics (5 CFR Parts 734 and 735) and sets forth the requirement for confidential financial and employment reports pursuant to Executive Orders 11222 and 12565.

(a) Employees are subject to two types of controls in connection with apparent or actual conflicting financial interests. One is a criminal statute, 18 U.S.C. 208, which by its terms prohibits an employee's participation in certain official activities where the employee has a conflicting personal financial interest. The Office of Government Ethics regulation (5 CFR 735.204) prohibits the holding by an employee of a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with official duties. This regulation also prohibits direct or indirect participation by an employee in a financial transaction as a result of, or primarily relying on information obtained through Government employment. The other type of control is a financial disclosure requirement. The Ethics in Government Act of 1978 requires certain officers and employees to file public financial disclosure reports (the Executive Personnel Report). This requirement is explained in detail in § 1207.404. In addition, under Executive Order 11222 and Office of Government Ethics regulations, another group of employees occupying certain Government positions must report all personal financial interests and out

side employment by filing a confidential statement of employment and financial interest. An employee will not be required to file both of these forms. The confidential disclosure requirement is explained in detail in § 1207.405. These requirements have the common objective of deterring the occurrence of conflicting financial interest situations, one by sanctions and the other by disclosure. While the statute prohibits and prescribes punishment, the statement of employment and financial interests is intended to help the employee and those who review the employee's statement to avoid conflicts through advice and counseling.

(b) The public disclosure report (Standard Form 278) and the confidential statement of employment and financial interests (NASA Form 1270) required under this subpart 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 by an employee does not permit the employee or any other person to participate in a matter in which the employee's or the other person's participation is prohibited by law, order, or regulation, unless the employee obtains a waiver under procedures set out in this subpart.

(c) Notwithstanding the requirement under this subpart for filing a statement of employment and financial interests, an employee shall avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of 18 U.S.C. 208(a) or of this part. See discussion in subpart (a) of 5 CFR 735.204.

§ 1207.402 Statutory prohibitions against acts affecting a personal financial interest.

(a) The provisions of 18 U.S.C. 208(a) prohibit any employee from participating personally and substantially in the course of the employee's Government duties in any judicial or other proceeding, application, request for a ruling, or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in relation to which matter, to the employee's knowledge, the follow

ing persons or organizations have a financial interest:

(1) The employee, or the employee's spouse, minor child, or partners;

(2) A business or nonprofit organization in which the employee is serving as an officer, director, trustee, partner, or employee; or

(3) A person or business or nonprofit organization with whom or with which the employee is negotiating, or has any arrangement with, concerning prospective employment. An employee is deemed to be negotiating when he/ she has taken any step beyond that of sending a resume. The employee must disqualify himself/herself from any work involving the entity with which he/she is negotiating. The employee shall immediately send a letter to his/ her supervisor and to his/her Chief Counsel (or to the Associate General Counsel (General) at Headquarters) stating the circumstances of the employee's disqualification.

(b) The prohibitions in paragraph (a) of this section may be waived under certain circumstances which are set out in § 1207.403.

(c) Illustrative of the type of matters in which NASA employees commonly participate and which may fall within the prohibitions described in paragraph (a) of this section are the following:

(1) The negotiation, administration, or auditing of contracts or agreements; (2) The selection or approval of contractors or known subcontractors

under a NASA prime contract; (3) The technical monitoring or direction of work under a contract; (4) Participation on boards or committees of the type listed in

§ 1207.405(a)(2); or

(5) Project monitoring.

(d) Unless a waiver is granted pursuant to § 1207.403, no employee will participate personally and substantially in the course of the employee's Government duties in any particular matter of a type listed in paragraph (c) of this section, or in any other matter of a type referred to in paragraph (a) of this section if, to the employee's knowledge, any of the persons or organizations identified in paragraph (a) of this section have a finan