ment official responsible for appointment to his position approves.

(c)(1) Under 18 U.S.C. 209 an employee is prohibited from receiving any salary, or any contribution to or supplementation of salary, as compensation for his services as an officer or employee of the Government, from any source other than the Government of the United States except as may be contributed out of the treasury of any State, county or muncipality, or except as may be paid under the terms of 5 U.S.C. 4101-4118 (formerly the Government Employees Training Act).

(2) Exceptions to the prohibitions of 18 U.S.C. 209 are also made for those employees continuing to participate in a bona fide pension, retirement, group life, health or accident insurance, profit-sharing, stock bonus, or other employee welfare or benefit plan maintained by a former employer. However, such financial interests may still violate 18 U.S.C. 208 unless waived. (See Subpart D, Appendix B, paragraph 4.)

(d) Pub. L. 94-283, section 328 provides:

No person while an elected or appointed officer or employee of any branch of the Federal Government shall accept

(1) Any honorarium of more than $2,000 (excluding amounts accepted for actual travel and subsistence expenses for such person and his spouse or an aide to such person, and excluding amounts paid or incurred for any agents' fees or commissions) for any appearance, speech, or article; or

(2) Honorariums (not prohibited by paragraph (d)(1) of this section) aggregating more than $25,000 in any calendar year.

Violation of this section can result in a substantial civil penalty amounting to $5,000, $10,000, or higher, depending on the circumstances.

[32 FR 14648, Oct. 21, 1967, as amended at 41 FR 31526, July 29, 1976]

APPENDIX A-PROCEDURES FOR PERMISSION TO ENGAGE IN OUTSIDE EMPLOYMENT OR OTHER OUTSIDE ACTIVITY (see § 1207.735-308)

1. Form and content of request. A request for administrative approval of outside employment or other outside activity shall be in writing and show:

a. Employee's name and occupational title.

b. Nature of the activity: full description of specific duties or services to be performed.

c. Name and business of person or organization for which the 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 type of services to be rendered and estimate of the total number of clients anticipated during the next 6 months will be indicated.) d. 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.)

e. Whether service can be performed entirely outside of usual duty hours; if not, estimated number of hours of absence from work that will be required.

2. Routing. The request for approval will be submitted (in duplicate) to the appropriate Official-in-Charge of the Headquarters Office or to the head of the field or component installation or to the persons designated to act for them. Employees will be notified in writing of the actions taken on their requests. All approved requests (or copies of such requests) and two copies of the notification of the approval action will be maintained in the local Personnel Office as follows:

a. A special file on outside employment, separated by title of types of employment. b. A copy in the personnel folder of the employee concerned.

3. Keeping record up to date. If there is a change in the nature or scope of the duties or services performed or the nature of his 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), he will notify the officer who approved the request.

4. Enforcement. Failure to request administrative approval for outside employment or other outside activity for which approval is required is ground for disciplinary action.

5. Confidentiality of requests. All requests for approval will be treated as confidential and made available only to specifically authorized persons.

[32 FR 14648, Oct. 21, 1967, as amended at 41 FR 31526, July 29, 1976]

Subpart D-Financial Interests and Investments

§ 1207.735-400 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 the discharge of his official responsibilities, and sets out the requirements for reporting financial interests and outside employment.

§ 1207.735-401 General.

(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 he has a conflicting personal financial interest. The other is a requirement under Executive Order 11222 and Civil Service Commission regulations that employees occupying certain Government positions must report all personal financial interests and outside employment by filing a statement of employment and financial interests. The statute and the statement of employment and financial interests have the common objective of deterring the occurrence of conflicting financial interest situations, one by sanctions and the other by disclosure, but where the statute prohibits and punishes, the statement of employment and financial interests is intended to serve as an aid to the employee and those who review his statement in the avoidance of the conflicting situation through advice and counseling.

(b) The statement of employment and financial interests (NASA Form 1270) required under this subpart is 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, unless he obtains a waiver under procedures set out in this subpart.

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 his 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 his knowledge, the following persons or organizations have a financial interest:

(1) The employee, or his 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.

(b) The prohibitions in paragraph (a) of this section may be waived under certain circumstances which are set out in § 1207.735-403.

(c) Illustrative of the types 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 § 1207.735-404(a)(3); or

(5) Project monitoring.

(d) Unless a waiver is granted pursuant to § 1207.735-403, no NASA employee or civilian or military personnel of other Government agencies regularly detailed to NASA will participate personally and substantially in the course of his Government duties in any specific 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 his knowledge, any of the persons or organizations identified in paragraph (a) of this section have a financial interest relating to that specific matter.

§ 1207.735-403 Waiver of statutory prohibition.

(a) 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 his participation in such matter, a written determination that such financial interest is not so substantial as to affect the integrity of his services and, therefore, that the employee may participate personally and substantially in that matter. The procedures set forth in Appendix A to this subpart will be followed in connection with granting a waiver as described in this section.

(b) 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 to inconsequential to affect the integrity of the employee's services in any matter in which he may act in his governmental capacity. Such a determination has been made by the Administrator with respect to the categories of financial interests set forth in Appendix B to this subpart.

§ 1207.735-404 Statement of employment and financial interests.

(a) The following criteria define the categories and types of employees who will file a statement of employment and financial interests, containing the kind of information required by the Civil Service Commission, on NASA Form 1270:

(1) Employees paid at a level of the Executive Schedule in Subchapter II of Chapter 53 of Title 5, United States Code, except the Administrator, who is subject to separate reporting requirements under section 401 of Executive Order 11222.

(2) Employees classified at the GS13 level and above, under 5 U.S.C. 5332 or at comparable pay levels under other authority, unless otherwise exempted pursuant to paragraph (b) of this section, whose duties and responsibilities require the exercise of judgment in making a Government decision or in taking Government action in regard to:

(i) Contracting or procurement, including the evaluation or selection of contractors; the negotiation, approval, or award of contracts; the supervision 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:

(ii) Administering or monitoring grants or subsidies, including grants to educational institutions and other non-Federal organizations;

(iii) Auditing financial transactions; (iv) Using or disposing of excess or surplus property;

(v) Establishing or enforcing safety standards and procedures.

(3) All employees, regardless of grade, serving as members of the following Boards or Committees:

(i) Source Evaluation Boards or Committees;

(ii) Inventions and Contribution Boards;

(iii) Contract Adjustment Board; (iv) Board of Contract Appeals;

(4) Employees classified at the GS13 level and above under 5 U.S.C. 5332, or at comparable pay levels under other authority, and who are identified by the head of a field or component installation or, at Headquarters, by the Assistant Administrator for Personnel Programs, 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.

(5) Employees classified below the 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 § 1207.735-404(a)(2) or § 1207.735404(a)(4), providing the Civil Service Commission has approved the determination that the incumbents of such positions should be required to file statements of employment and financial interests in order to protect the integrity of the Government and to avoid the employee's involvement in a possible conflict of interests situation.

(b) An employee described in paragraph (a)(2) of this section may be exempted from the requirement for filing a statement of employment and financial interests when the head of the field or component installation involved or, at Headquarters, the Assistant Administrator for Personnel Programs, 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 his becoming involved in a conflict of interests is remote.

(c) Procedures for filing statements of employment and financial interests are contained in Appendix C to this subpart.

(d) The following procedures will be followed with regard to the maintenance of statements of employment and financial interests. Each head of a field or component installation, and, at Headquarters, the Assistant Administrator for Personnel Programs, will maintain, on a current basis, a master

list of employees required to file statements under this subpart. It will be this official's responsibility to determine that the list includes all those employees following within the criteria for reporting set forth in this subpart 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 Agency Counselor of NASA directly.

(e) Any employee who considers that his position does not come within the criteria for reporting set forth in this subpart, and therefore that he should not be required to file a statement, may request a review, through the NASA grievance procedure, of the determination that his position does come within such criteria. The NASA grievance procedure is set forth in the Federal Personnel Manual, Chapter 771, and the NASA Supplement thereto.

(f) An employee who refuses to file a statement for reasons other than that his position does not come within the criteria for reporting set forth in this subpart, or who refuses to file after the determination that his position does come within such criteria has been reviewed, as provided in § 1207.353-404(e), and has been approved, will be subject to appropriate disciplinary action.

(g) Employee statements comprise a System of Records of the Civil Service Commission (CSC) under the Privacy Act of 1974. The General Counsel of NASA has been designated as the System Manager in the CSC System Notice. Statements forwarded to the appropriate personnel office in accordance with this part will be in sealed envelopes. Statements will be retained in a special locked cabinet or safe to which only the designated employees will have access. The head of the local personnel office will designate within his office one or more key employees who are authorized to open and examine statements for completeness. When a form is complete, it shall be promptly forwarded to a Deputy Counselor (Legal) for review pursuant to Subpart E. Statements will be retained in a special locked cabinet or

safe to which only the designated employees will have access. Transmission of statements for legal review will be in a sealed envelope bearing the inscriptions "To Be Opened Only By (bearing the name of the individual authorized to review such statements)" and "Subject to the Privacy Act." Within each NASA legal office, procedures for limiting access to statements and for their safekeeping, as rigorous as those set forth for personnel offices, will be maintained. There will be no discussion or disclosure of the details of statements of employment and financial interests except as necessary to carry out the provisions of Subpart E. In accordance with the Privacy Act, information from a statement shall not be disclosed outside of NASA except as the Administrator or the Civil Service Commission shall determine for good cause shown. Within NASA, except for the examination and review process set forth in this paragraph, access to the employee statements will be permitted only upon the express approval of the General Counsel.

(h) This subpart does not require an employee to include in 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 subpart, 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 financial interest statement.

(i) Information concerning financial interests which have been exempted from the prohibition of 18 U.S.C. 208(a), as set forth in Appendix B to this subpart, may be omitted from the statement of employment and financial interests, except that, notwithstanding the exemption set forth in paragraph la of Appendix B, 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 or in taking Government action in relation to that company.

[32 FR 14648, Oct. 21, 1967, as amended at 41 FR 31526, July 29, 1976]

APPENDIX A-WAIVER PROCEDURES (see

§ 1207.735-403(a))

1. Employees appointed under authority of section 203(c)(2)(A) ("NASA Excepted Positions") or section 203(b)(10) (“Alien Scientists") of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473(C)(2)(A) and 2473(b)(10)); or under 5 U.S.C. 3164.

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

b. The employee, if stationed at NASA Headquarters, will forward his request to the Administrator via the Official-in-Charge of the Headquarters Office in which the employee is located. The official will transmit the request with his comments and recommendations on the proposed waiver to the Administrator.

c. The employee, if stationed at a NASA field or component installation, will forward his request to the Administrator via the Head of the installation, who will transmit the request, with his comments and recommendations on the proposed waiver, to the Administrator.

d. The determination required by the statute will be made only by the Administrator or Deputy Administrator in the case of employees holding appointments under the statutes cited in paragraph 1 of this appendix.

2. All other employees-a. Headquarters. (1) All other NASA employees (including civilian and military personnel of other Government agencies regularly detailed to NASA) who are stationed at NASA Headquarters will forward their requests for a waiver to the Official-in-Charge of the Headquarters Office in which the employee is located. The waiver request will contain the same information as required in paragraph la of this appendix. The official will transmit the request with his comments and recommendations on the proposed waiver to the Associate Administrator for Center Operations.

(2) The Associate Administrator for Center Operations is authorized to make