terial, which are of nominal value and are available to the public on an impersonal basis.

(iv) 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 or nonprofit educational, recreational, public service or civic organization.

(v) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans.

(3) No employee may solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). This restriction, however, is not applicable to voluntary gifts of nominal value or donations in nominal amounts made on special occasions such as marriage, illness, or retirements, or to the exchange of social amenities between personal friends.

§ 1015.735-13 Misuse of relationship with OEO.

(a) Commercial exploitation generally. No employee shall permit his relationship with OEO to be exploited for commercial purposes.

(b) Publications and products. If an employee, other than a special Government employee, is associated outside the scope of his OEO employment with a publication or product which might be sold commercially for use in programs supported financially by OEO, his relationship with OEO may not be used in connection with the publication or product without the addition of a statement disclaiming any official OEO endorsement of it.

(c) Publications and products-special Government employees. A special Government employee (as defined in § 1015.735-2(a)) may not allow his relationship with OEO to be used in connection with any publication or product with which he is privately associated and which might be sold commercially for use in programs supported financially by OEO.

§ 1015.735-14 Disclosure and misuse of inside information.

(a) Disclosure and use for personal benefit. No employee shall, directly or

indirectly, disclose or use for his own benefit, or for the private benefit of another, inside information as described in paragraph (b) of this section. The use of such information by an employee is restricted to the proper performance of his official duties. The disclosure of such information is restricted to official OEO channels unless disclosure is authorized by the Director, the Deputy Director, an Assistant Director, or a Regional Director of OEO. In particular, no employee shall:

(1) Engage in, directly or indirectly, a financial transaction as a result of or primarily relying on such information; or (2) Publish any book or article, or deliver any speech or lecture, based on or using such information.

(b) Definition. The term "inside information" as used in this section means, generally, information obtained under Government authority which is not known by the general public and which could affect the rights or interests of the Government or of a non-Government organization or person. Such information includes information about OEO operations or administration, and personal information about OEO personnel which could influence someone's dealings with CEO.

(c) This section is not intended to discourage the disclosure through proper channels of information which has been or should be made public, or which is by law to be made available to the public. Also, employees are encouraged to teach, lecture, and write, provided they do so in accordance with the provisions of this section and § 1015.735-15.

§ 1015.735-15 Speeches; participation in conferences; publications.

(a) Fees and expenses. (1) No employee may accept a fee for his own use or benefit for making a speech, delivering a lecture, participating in a discussion, or writing an article or book, etc., if the subject is OEO or OEO programs, or if such services are part of the employee's official OEO duties.

(2) Fees offered to an employee for such speeches, articles, etc., shall be refused. The employee may suggest that the amount otherwise payable as a fee or honorarium be contributed to the Office of Economic Opportunity or one of its grantees, or to some other charity, but the employee may not suggest the particular grantee or charity to which a donation might be made.

(3) When a meeting, discussion, etc., takes place at a substantial distance from the employee's home he may accept payment for transportation and necessary subsistence but for no other expense or as a personal benefit. He may not accept such payments, however, if he is traveling on official business under agency orders.

(4) An employee may accept fees for speeches, articles, etc., dealing with subjects other than OEO or OEO programs unless such activities interfere with the efficient performance of his OEO duties.

(b) Racial segregation. No employee may participate for OEO in conferences or speak for OEO before audiences where any racial group has been segregated or excluded from the meeting, from any of the facilities or conferences, or from membership in the organization sponsoring the conference or meeting.

(1) When a request for OEO speakers or participation is received under circumstances where segregation may be practiced, the Director of the Speakers Bureau shall make specific inquiry as to the practices of the organization before the request is filled.

(2) If the inviting organization shows a willingness to modify its practices for the occasion, OEO will cooperate in such efforts.

(3) Exceptions to this paragraph may be made only by the Director.

(c) Political groups. No employee, except a Presidential appointee, may address a meeting of a partisan political organization about OEO or OEO programs.

(d) Other restrictions. See also § 1015.735-14 (a) (2), relating to the use of inside information; § 1015.735-12(a), relating to outside compensation for OEO duties, and § 1015.735-12(c), relating to acceptance of entertainment. § 1015.735-16 ity.

Partisan political activ

(a) Prohibited activities. No employee may:

(1) Use his official authority or influence for the purpose of interfering with an election or affecting the result thereof; or

(2) Take any active part in partisan political management or in political campaigns, except as may be provided by or pursuant to statute (5 U.S.C. 7324). (b) Intermittent employees. Persons employed on an irregular or occasional basis are subject to paragraph (a) of this

section only while in active duty status and for the 24 hours of any day of actual employment.

(c) Excepted activities. Paragraph (a) of this section does not apply to:

(1) Nonpartisan campaigns and elections in which none of the candidates is to be nominated by or elected as representing a national or State political party, such as most school board elections; or

(2) Political activities connected with questions of public interest which are not specifically identified with national or State political parties, such as constitutional amendments, referenda, and the like (5 U.S.C. 7326).

(d) Excepted communities. Paragraph (a) of this section does not apply to employees who are residents of certain communities. These communities, which have been designated by the Civil Service Commission (5 CFR 733.301), consist of a number of communities in suburban Washington, D.C., and a few communities elsewhere in which a majority of the voters are Government employees. Employees who are residents of the designated communities may be candidates for, or campaign for others who are candidates for, local office if they or the candidates for whom they are campaigning are running as independent candidates. An employee may hold local office only in accordance with § 1015.735-17, relating to outside employment. § 1015.735-17 Outside employment.

(a) Reporting. All employees not required by § 1015.735-31(j) to report their outside employment and financial interests shall inform their supervisors of all outside employment they hold or accept.

(b) Restrictions. An employee should not accept outside employment which would (1) interfere with the proper and efficient performance of his OEO duties, (2) create a conflict of interests with his OEO employment or violate any other law or regulation, or (3) involve rendering services which the employee should render to OEO. If the circumstances indicate that the outside job may produce one of these situations, the employee should consult his supervisor, the Director of Personnel, or the General Counsel before accepting it. The following paragraphs set out specific provisions relating to particular kinds of outside employment.

(c) Employment with OEO grantee and contractor organizations. (1) No

OEO employee may be employed as an executive officer of any grantee or delegate agency (other than a religious organization) assisted under sections 204 or 205 of the Economic Opportunity Act, as amended (P.L. 88-452, as amended, § 205(j), 42 U.S.C. 2785 (j)). "Executive officer" means a member of the supervisory staff who reports directly to the agency's governing board or to the staff director. Employment in a less senior position, and employment as a teacher or consultant, is not prohibited if consistent with the other provisions of this part. "Religious organization” means churches and nonprofit organizations which are formed to propagate religion, support religious services, or hold and administer property for religious use or for educational or community services which include religious instruction or propagation as an essential element.

(2) A special Government employee (as defined in § 1015.735-2(a)) may serve as executive officer of a grantee or delegate agency if he has not served OEO for more than 60 days during the immediately preceding period of 365 days. However, he may not in any event perform any service as an executive officer of a grantee or delegate agency during any part of any day on which he serves as an OEO employee.

(d) Compensation from other Federal or District of Columbia agencies. (1) A full-time employee may not accept compensation from any other agency of the Federal or District of Columbia governments unless (1) it is overtime compensation, (ii) he is on leave without pay from OEO, or (iii) it consists of fees paid on other than a time basis (5 U.S.C. 5533). A "full-time employee" is one who is appointed, on either a permanent or temporary basis, to work a regular tour of duty of 40 hours per week.

(2) All other employees may receive compensation from other part-time jobs with the Federal or District of Columbia governments for up to a combined total of 40 hours per week, exclusive of overtime.

(3) Subparagraphs (1) and (2) of this paragraph do not apply to experts or consultants compensated by OEO on a when-actually-employed basis who hold other expert or consultant positions in the Federal or District of Columbia government compensated on the same basis.

(4) No employee may receive compensation from two Federal or District of Columbia agencies for the same hours of

the same day. See also § 1015.735-12(a), prohibiting compensation from non-Government sources for Government work. (e) Dual Federal and State office holding. (1) A full-time employee may hold a position in a State or local government on other than a full-time basis, and a part-time or intermittent employee may hold a position in a State or local government whether that position is fulltime or not: Provided, That the employee's supervisor determines in advance that the holding of the State or local office will not interfere with the regular, proper, and efficient discharge of his OEO duties.

(2) An employee may hold a full-time position in a State or local government while on leave without pay. OEO shall be the sole judge of whether it is in its interest to grant leave without pay for this purpose.

(3) An employee of State or local government who is on leave without pay may be appointed to a full-time position in OEO on a temporary basis.

(4) This paragraph does not apply to Presidential appointees. Such persons may not hold an office in a State or local government during their appointment to OEO.

(f) Activities and compensation in matters involving the Government. (1) No employee, otherwise than in proper discharge of his official duties, may act as agent or attorney for anyone in a claim against the Government or in connection with a particular matter pending before any agency, court, or officer of the Government in which the Government is a party or has a direct and substantial interest (18 U.S.C. 205). Therefore, an employee may not participate in negotiations or informal discussions with any Government agency on behalf of private persons or organizations; nor may he write letters to Government officials on their behalf.

(2) No employee may, otherwise than as provided by law for the proper discharge of his official duties, directly or indirectly receive, agree to receive, or solicit any compensation for services rendered or to be rendered either by himself or another in relation to any claim against the Government, or to a proceeding or other particular matter before any agency, court, or office of the Government in which the United States is a party or has a direct and substantial interest (18 U.S.C. 203). Therefore, an employee may help private persons or

organizations prepare grant applications, program reports, and other material which is designed to become the subject of dealings between the non-Government organization and a Government agency only if he receives no compensation for such services and if he does not violate subparagraph (1) of this paragraph.

(3) In the case of a special Government employee (as defined in § 1015.7352(a)), the restrictions of this paragraph apply only to activities in connection with matters pending before OEO and other matters in which the employee has participated personally as an employee through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise. Furthermore, special Government employees who are not employed on a full-time basis are not subject to the restriction against working on matters pending before OEO until they have worked 60 working days for OEO within the past year. However, full-time special Government employees are required by OEO policy to observe this restriction from the first day of their appointment.

(4) This section does not prohibit an employee:

(i) From acting without compensation as agency or attorney for any person who is the subject of disciplinary, loyalty, or other personnel administration proceedings in connection with those proceedings, as long as so acting is not inconsistent with the performance of his duties; or

(ii) From acting, with or without compensation, as agent or attorney for his parents, spouse, child, or for any person or estate he is serving in a fiduciary capacity, except in those matters in which he has participated personally for the Government or which are the subject of his official responsibility; or (iii) From giving testimony under oath or from making statements required to be made under penalty for perjury or contempt (18 U.S.C. 205).

§ 1015.735-18 Disqualifications arising from private financial interests and from holding office in outside organizations.

(a) Financial interests of employee, family members, and partners. No employee may participate personally as an OEO employee in any matter in which, to his knowledge, he, his spouse, minor child, or partner has a financial interest,

whether directly or indirectly (such as through ownership of securities).

(b) Financial interest of employers, prospective employers, and organizations which the employee serves. No employee may participate personally as an OEO employee in any matter in which, to his knowledge, (1) an organization which he is serving as an officer, director, trustee, or employee, whether for compensation or not, or (2) an organization with which he is negotiating for, or has any arrangement concerning, future employment, has a financial interest. An employee may negotiate for prospective employment with a non-Government organization only when he has no duties as an OEO employee which could affect that organization's interest, or after he has disqualified himself, on the written permission of his supervisor, from such duties.

(c) General exemptions-(1) Small stock holdings. Ownership by an employee, or his spouse, minor child, or partner of stock or other securities of an organization having a financial interest in a matter before OEO is exempt from paragraph (a) of this section if (i) the interest in that organization amounts to less than $5,000 in market value and less than 1 percent of that organization's outstanding stock or other securities, and (ii) the employee, his spouse and minor children are not active in the management and have no other connection with or interest in that organization. Such an interest is hereby determined pursuant to 18 U.S.C. 208(b) (2) to be too inconsequential to affect the integrity of the employee's services.

(2) Indirect stock holdings. Ownership by an employee, or his spouse, or minor children of certain indirect financial interests in matters before OEO are exempt from paragraph (a) of this section. These interests are shares in publicly held mutual funds, banks, investment and insurance companies, and similar organizations, which in turn own an interest in an organization involved in a matter before OEO. Such an interest is hereby determined pursuant to 18 U.S.C. 208(b) (2) to be too remote to affect the integrity of the employee's services.

(3) Remote employment. Employment of an OEO employee with an agency of a State or local government is exempt from paragraph (b) of this section with respect to other agencies of that State

or local government which are clearly distinguishable and remote from the agency which he is serving. His interest in matters involving such other agencies is hereby determined pursuant to 18 U.S.C. 208(b) (2) to be too remote to affect the integrity of the employee's services. For instance, employment as a teacher at a State university will not constitute employment with that State with respect to dealings with the State welfare department. However, for the purpose of this exemption, the effect of employment with a particular State agency must be determined by the Office of General Counsel on the facts of each particular case.

(d) Application for specific exemptions. (1) Specific exemptions may be obtained to permit an employee to participate in a particular matter in which his financial interest is insubstantial, and to permit an employee to participate in any matters which may arise concerning particular private organizations in which his interest is insubstantial.

(2) An employee may obtain specific exemptions by written application through his supervisor to the General Counsel. The application should describe the employee's OEO duties, his relevant financial interest or outside association, why it is insubstantial, and the particular matter involved.

(3) Exemptions granted shall be communicated in writing, a copy of which shall be included in the employee's official personnel folder.

(e) Interest prior to OEO employment. No employee may advise, recommend, or otherwise participate in the decision with which OEO concludes its consideration of a grant or contract application which the employee, prior to his OEO appointment, helped to develop. It is not improper, however, for the employee to contribute his special knowledge to the OEO officers making that decision.

(f) Indirect personal interest. No employee may participate in any decision by OEO which might affect or appear to affect favorably his career or professional reputation through the use by OEO of publications, systems, programs, etc., prepared by him outside the course of, or prior to, his OEO employment.

§ 1015.735-19 Service on boards of OEO grantees.

No employee may serve as a member of the board of directors of any grantee or delegate agency (other than a religious

organization) under section 204 or 205 of the Economic Opportunity Act, as amended. Service on the board of a religious organization as defined in § 1015.735-17(c) (1) is not prohibited. A special Government employee (as defined in § 1015.735-2(a)) may serve as a board member if he has not served OEO for more than 60 days during the immediately preceding period of 365 days, but he may not in any event perform any service as such a board member during any part of any day on which he serves as an OEO employee. See also § 1015.735-17(c) in relation to employment with grantee and delegate agencies.

§ 1015.735-20 Employee indebtedness.

OEO considers the indebtedness of its employees to be a matter of their own concern. OEO will not be placed in the position of acting as a collection agency or of determining the validity or amount of debts. Nevertheless, employees 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 section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court. "In a proper and timely manner" means in a manner which the agency determines does not, under the circumstances, reflect upon the Government as his employer.

§ 1015.735-21 Misuse of Government property.

No employee may use or allow the use of Federal property for other than official activities. Each employee is responsible for protecting and conserving Federal property, including equipment and supplies.

§ 1015.735-22 Gambling, betting, and lotteries.

No employee shall participate, on premises owned or leased by the Government, or anywhere else while on duty, in the operating of gambling devices, in conducting an organized lottery or pool, in games for money or property, or in selling or purchasing numbers tickets. § 1015.735-23 False statements.

No employee shall knowingly falsify or conceal a material fact, or make any false statement or representation, or use a document he knows to be false, in connection with any official Government matter (18 U.S.C. 1001).