cial interest relating to that particular matter.

§ 1207.403 Waiver of statutory prohibition.

(a) Specific waiver available. The prohibition of 18 U.S.C. 208(a) may be waived in connection with a specific matter of the type which comes under the statute if the employee makes a full disclosure in writing of the nature of the matter involved and of the financial interest relating thereto and receives, in advance of participation in such matter, a written determination that such financial interest is not so substantial as to affect the integrity of the employee's services and, therefore, that the employee may participate personally and substantially in that matter. The procedures set forth in paragraph (c) of this section will be followed in connection with granting a waiver as described in this section.

(b) General waivers. The prohibition of 18 U.S.C. 208(a) also may be waived by general regulation applicable to all NASA employees so as to permit an employee (including civilian and military personnel of other Government agencies regularly detailed to NASA) to participate personally and substantially in a specific matter, notwithstanding the existence of a financial interest relating to that matter, where it has been determined that such a financial interest is too remote or inconsequential to affect the integrity of the employee's governmental capacity. Such a determination has been made by the Administrator and published in the FEDERAL REGISTER With respect to the following categories of financial interest:

(1) The following exemptions apply to financial interests which are held directly by a NASA employee, or by the employee's spouse or minor child, whether jointly or individually, or by a NASA employee and the employee's partner or partners as joint assets of the partnership:

(i) Ownership of shares of common or preferred stocks, including warrants to purchase such shares, and of corporate bonds or other corporate securities, if the current aggregate market value of the stocks and other securities so owned in any single corporation does not exceed $5,000, and provided

such stocks and securities are listed for public trading on a major stock exchange. This exemption extends also to any financial interests that the corporation whose stocks or other securities are so owned may have in other business entities. This exemption shall not apply to membership on boards or committees constituted as part of the NASA Source Evaluation Board (SEB) process unless specific written approval for such membership is obtained from the Designated Agency Ethics Official.

(ii) Ownership of bonds other than corporate bonds, regardless of the value of such interest. This exemption extends also to any financial interests that the organization whose bonds are so owned may have in other business entities.

(iii) Ownership of shares in a widely diversified mutual fund or regulated investment company regardless of the value of such interests. This exemption extends also to any financial interests that the mutual fund or investment company may have in other business entities.

(2) If a NASA employee or the employee's spouse or minor child has a present beneficial interest or a vested remainder interest under a trust, the ownership of stocks, bonds, or other corporate securities under the trust will be exempt to the same extent as provided in paragraph (b)(1)(i) of this section for the direct ownership of such securities. The ownership of bonds other than corporate bonds, or of shares in a mutual fund or regulated investment company, under the trust will be exempt to the same extent as provided under paragraphs (b)(1)(ii) and (b)(1)(iii) of this section, for the direct ownership of such bonds or shares.

(3) If a NASA employee is an officer, director, trustee, or employee of an educational institution, or if the employee is negotiating for, or has an arrangement concerning prospective employment with such an institution, a direct financial interest which the institution has in any matter will not itself be exempt, but any financial interest that the institution may have in the matter through its holdings of securities issued by business entities will

be exempt, provided the NASA employee is not serving as a member of the investment committee of the institution or is not otherwise advising it on its investment portfolio.

(4) If a NASA employee has continued to participate in a bona fide pension, retirement, group life, health or accident insurance plan, or other employee welfare or benefit plan that is maintained by a business or nonprofit organization of which the employee is a former employee, the employee's financial interest in that organization will be exempt, except to the extent that the welfare or benefit plan is a profit sharing or stock bonus plan. This exemption extends also to any financial interests that the organization may have in other business activities.

(c) Procedures for specific waiver. (1) The written request for a waiver will describe the specific matter involved, the nature and extent of the employee's participation therein, and the exact nature and amount of financial interest relating to the specific matter.

(2) Employees who are key officials, or who are appointed under authority of section 203(c)(2)(A) ("NASA Excepted Positions”) or section 203(c)(10) ("Alien Scientists") of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473(c)(2)(A) and 2473(c)(10)), or under 5 U.S.C. 3131 et seq. (Senior Executive Service), will forward the request to the Administrator. It shall be submitted through the appropriate Chief Counsel or General Counsel and the appropriate Director of a Field or Component Installation or Official-inCharge of a Headquarters Office, who will transmit the request to the Administrator with comments and recommendations on the proposed waiver. The determination required by the statute will be made only by the Administrator or Deputy Administrator in the case of these employees.

(3) All other employees will forward their requests for a waiver through the appropriate Chief Counsel or General Counsel to the appropriate Director of a Field or Component Installation or Official-in-Charge of a Headquarters Office. For Headquarters employees, the Associate Administrator for Management is authorized to make

the determination required by the statute. For employees at an installation, the Directors of Field and Component Installations, and their Deputies are authorized to make the determination required by the statute. This authority may not be redelegated.

(4) A copy of waiver granted by the Director of a Field or Component Installation shall be forwarded to the Associate Administrator for Management, NASA Headquarters.

[52 FR 22755, June 16, 1987, as amended at 53 FR 4606, Feb. 17, 1988]

§ 1207.404 Executive personnel financial disclosure report.

(a) Background. The Ethics in Government Act of 1978 (Pub. L. 95-521) prescribes a public financial disclosure reporting requirement for certain officers and employees. The requirements and procedures are set forth in detail in the Act as well as in the implementing regulations of the Office of Government Ethics (5 CFR Part 734). This section will not reiterate these detailed requirements nor the instructions for filing that are contained in the Executive Personnel Financial Disclosure Report (SF 278).

(b) Employees required to file. The NASA employees required to file the Executive Personnel Financial Disclosure Report (SF 278) are:

(1) Presidential nominees to positions requiring the advice and consent of the Senate.

(2) Officers and employees who have served in their position for 61 days or more during the preceding calendar year whose positions are classified or paid at GS-16 or above of the General Schedule, or whose basic rate of pay under other pay schedules is equal to or greater than the rate for GS-16. This category includes members of the Senior Executive Service.

(3) Officers or employees in any other position determined by the Director of the Office of Government Ethics to be of equal classification to the GS-16.

(4) Administrative law judges.

(5) Employees in the excepted service in positions which are of a confidential or policymaking character unless their positions have been ex

cluded by the Director of the Office of Government Ethics.

(6) The designated agency ethics official.

(c) Time of filing—(1) Initial appointment. Within 5 days after transmitted by the President to the Senate of the nomination to a position described in paragraph (b)(1) of this section or within 30 days after assuming a position described in paragraphs (b) (2), (3), (4), (5), and (6) of this section, an Executive Personnel Financial Disclosure Report (SF 278) must be filed.

(2) Incumbents. An Executive Personnel Financial Disclosure Report must be filed no later than May 15 annually by incumbents of any of the positions listed in paragraph (b) of this section. In certain cases an extension of up to 45 days for filing may be permitted by the Designated Agency Official. The Director of the Office of Government Ethics may grant an additional 45-day extension, for good cause shown.

(3) Terminations. No later than 30 days after an incumbent of a position listed in paragraph (b) of this section terminates that position, the inidividual shall file an Executive Personnel Financial Disclosure Report.

(d) Place of filing. All reports required to be filed by this subpart by Headquarters employees, Directors, Deputy Directors and Chief Counsels of Field Installations shall be submitted on or before the due date to the Executive Personnel Management and Development Office, Code NPD, NASA Headquarters. Other field installation personnel required to file reports by this subpart shall submit such reports on or before the due date to the Field Installation Director of Personnel.

(e) Review and retention of reports. All reports required to be filed with the Executive Personnel Management and Development Office, Code NPD, NASA Headquarters, will be reviewed by the Designated or Alternate Agency Ethics Counselor, Office of the General Counsel. Reports required to be filed by field installation personnel with the Field Installation Director of Personnel, will be reviewed by the Field Installation Chief Counsel. All reports required to be filed by this

subpart will be sent, after review, to the Executive Personnel Management and Development Office, Code NPD, NASA Headquarters, for retention. The reports will be available to the public.

(f) Where to seek help. To seek assistance in completing the Executive Personnel Financial Disclosure Report, contact the Chief Counsel at a Field Installation, or the Associate General Counsel (General) at Headquarters.

(g) Failure to submit report. Falsification of, or knowing or willful failure to file or report information required to be reported by section 202 of the Act may subject the individual to a civil penalty and to disciplinary action. Also, knowing or willful falsification of information under that section may subject the individual to criminal prosecution under 18 U.S.C. 1001, leading to a fine of not more than $10,000, or imprisonment for not more than 5 years, or both.

§ 1207.405 Confidential statements of employment and financial interests.

(a) The following criteria define the categories of types of employees, unless otherwise exempted pursuant to paragraph (b) of this section, who will file a Confidential Statement of Employment and Financial Interests, containing the kind of information described in detailed instructions on

NASA Form 1270:

(1) Employees classified at the GM13 or GS-13 level and above under 5 U.S.C. 5332, or at comparable pay levels under other authority, whose duties and responsibilities require the exercise of judgment in making a government decision or making government action in regard to:

(i) Contracting or procurement, including the evaluation or selection of contractors; the negotiation, approval, or award of contracts; the oversight of activities performed by contractors, including the administration, monitoring, audit, and inspection of contractors and contract activities; and the initiation or approval of requests to procure supplies, equipment, or services, other than those common items available from NASA or GSA inventories;

(3) Employees classified at the GM13 or GS-13 level and above under 5 U.S.C. 5332, or at comparable pay levels under other authority, and who are identified at Headquarters by the Director, Headquarters Human Resources Management, or by the Director of Personnel at a Field or Component Installation as holding positions requiring the incumbent thereof to exercise judgment in making Government decisions or taking actions where such decisions or actions may have an economic impact on the interest of any non-Federal enterprise.

(4) Employees classified below the GM-13 or GS-13 level under 5 U.S.C. 5332 who are appointed as Contracting Officers.

(5) Employees classified below the GM-13 or GS-13 level under 5 U.S.C. 5332, or at a comparable pay level under other authority, and who are in positions which otherwise meet the criteria of § 1207.405(a)(1)

or

§ 1207.405(a)(3), when designated in writing by the Designated Ethics Official, after such designation has been justified in accordance with 5 CFR 735.403(d).

(b)(1) An employee required to file an Executive Personnel Financial Disclosure Report may elect to file a current copy of his/her Standard Form

278 in lieu of the report required under this section.

(2) An employee described in paragraph (a)(1) of this section may be exempted from the requirement for filing a statement of employment and financial interests when, at Headquarters, the Director, Headquarters Human Resources Management, or the Director of Personnel at the Field or Component Installation involved determines that the employee's duties are of such a nature, or are at such a level of responsibility and are subject to such a degree of supervision and review, that the possibility of the employee's becoming involved in a conflict of interest is remote.

(c) Procedures for filing statements— (1) Time and place. Each employee required to file a statement under this section will submit a completed NASA Form 1270 to the local Personnel Officer or other designated official as follows:

(i) Thirty days after entrance on duty;

(ii) Ten days after the employee's position is specifically identified as one requiring the incumbent thereof to file a financial statement;

(iii) After selection and before service on the boards or committees listed in § 1207.405(a)(2).

(2) Annual statements. A statement shall be submitted by incumbents each year reflecting reportable interests held as of June 30. The statement must be filed during the month of July each year. No supplementary statement will be accepted for this annual filing.

(3) For purposes of this reporting requirement, the financial interest, including employment, of a spouse, minor child, or other members of an employee's immediate household is considered to be an interest of the employee and must be reported. "Members of an employee's immediate household" means those relations who are residents of the employee's household.

(4) If any information required to be included on a statement of employment and financial interests, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall re

quest that the other person submit the information on his/her behalf. If the employee concerned should gain knowledge about such interests, he/ she should report the information in order to prevent the possibility of invoking 18 U.S.C. 208.

(d) The following procedures will be followed with regard to the maintenance of Confidential Statements of Employment and Financial Interests. Each Field or Component Installation Personnel Director and, at Headquarters, the Director, Headquarters Human Resources Management, will maintain, on a current basis, a master list of employees required to file statements under this section. It will be these officials' responsibility to determine that the list includes all those employees falling within the criteria for reporting set forth in this section and that the requirement for filing statements is fully carried out on a timely basis. In the event of any question regarding the interpretation of these criteria, the official will consult the Deputy Ethics Counselor or the Designated Agency Ethics Official directly.

(e) An employee who fails or refuses to file a statement as required by this section, or who knowingly falsifies information in the statement, will be subject to appropriate disciplinary

action.

(f) Employee statements filed under this section comprise a NASA System of Records under the Privacy Act of 1974, and will be protected accordingly. The file is NASA 10SCCF, “Standards of Conduct Counseling Case Files-NASA.”

(g) This section does not require an employee to include in a statement of employment and financial interests any information relating to the employee's connection with, or interests in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political 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 in

cluded in an employee's financial interest statement.

set

forth

(h) Information concerning financial interests which have been exempted from the prohibition of 18 U.S.C. 208(a), as set forth in § 1207.403(b), may be omitted from the statement of employment and financial interests, except that, notwithstanding the exemption in § 1207.403(b)(1)(ii), the ownership of securities in any amount in a company doing business with NASA will be disclosed if the employee's duties and responsibilities require the exercise of judgment in making a Government decision, taking Government action in relation to that company, or serving on boards or committees constituted as part of the NASA SEB process. In such case, the employee should note if his or her interest is under or over $5,000.

[52 FR 22755, June 16, 1987, as amended at 53 FR 4606, Feb. 17, 1988; 53 FR 5765, Feb. 26, 1988]

Subpart E-[Reserved]

Subpart F-Standards of Conduct for Special Government Employees [Reserved]

Subpart G-Administrative Enforcement Procedures for Alleged Violations of 18 U.S.C. 207

SOURCE: 54 FR 4003, Jan. 27, 1989, unless otherwise noted.

§ 1207.700 Scope of subpart.

The subpart establishes NASA's administrative enforcement procedures for handling allegations of violations of 18 U.S.C. 207, the Federal criminal prohibition against post-employment conflicts of interest by former Government employees. It implements 18 U.S.C. 207(j) which requires each agency to establish such procedures and the guidelines of the Office of Government Ethics (OGE) which appear at 5 CFR 737.27.

§ 1207.701 Policy.

Any allegation that a former NASA employee has violated 18 U.S.C. 207