to inform friends, neighbors, etc., so they may use it for speculative or investment purposes. § 73.735-502 Employees in regulatory, procurement and contracting activi ties. (a) Employees in regulatory, procurement and contracting activities are prohibited from having certain types of financial interests, as stated below. The term "employee" as used here, includes line supervisory officials in the upward chain of authority and staff officials who advise supervisory officials. (1) Regulatory activities. For the purpose of this paragraph all activities in the following organizations or functions within organizations are designated as regulatory activities: Food and Drug Administration; Division of Biologics Standards, NIH, PHS; Division of Foreign Quarantine, BMS, PHS; inspection and enforcement activities of the Division of Environmental Engineering and Food Protection, BSS, PHS; control activities of the Division of Air Pollution, EH, BSS, PHS; control activities of the Federal Water Pollution Control Administration; and the divisions of the Office of the General Counsel serving the above regulatory activities. An employee who is engaged in a regulatory activity shall not have financial interests in any company whose business activities are subject to such regulations, unless the regulated activities of the company are an insignificant part of its total business operations. Such an employee may not hold shares in a mutual fund or other regulated investment company which specializes in holdings in industries that are regulated by the organization in which he is employed. to (2) Procurement or contracting activities. An employee who serves as a procurement or contracting officer or whose duties include authority recommend or prepare specifications, negotiate noncompetitive contracts, or evaluate bids, shall not have financial interests in companies with which his office has any significant procurement or contracting relationship. An insignificant relationship exists only when all the following conditions are met: (i) the company is one with which the employee would rarely or never do official business; (ii) such business as he would do with the company is with respect to items of a standard type on the basis of competitive bids or regulated prices, as for utility services; (b) An employee who has a direct indirect financial interest that would prohibited except that he believes it t be relatively "insignificant" in terms of the discussions in paragraph (a) (1) and (2) of this section should request approval for retention by discussing the matter with his supervisor. If the supervisor approves the retention, the fact concerning such financial interest should be recorded. An employee who retains such an approved financial interest must disqualify himself from participating in his Government capacity if a matter arises involving the organization in which he has such interest. If in a special situation an exception to this rule appears desirable, administrative approval must be obtained in accordance with Subpart I of this part. Such approval extends only to the specific situation and may not be interpreted as extending to other situations, even though involving the same outside organization or similar official activities. § 73.735-503 interest. Disposition of financial If any situation arises in which it would appear to be contrary to the best interests of the Government, or cause extreme and undue hardship to an individual to apply strictly the policies set forth in this subpart, a request for exception should be forwarded through supervisory channels to the counselor or deputy counselor for his part of the Department, for review and recommendation to the Secretary. Subpart F-Conduct on the Job § 73.735-601 General provisions. An employee's conduct on the job is, in all respects, of concern to the Federal Government. Courtesy, consideration and promptness in dealing with other must be shown in carrying out official Sesponsibilities. In addition, specific rules and regulations have been set which must be observed as discussed in this subpart. § 73.735-602 Role of career official in support of Federal programs. (a) The following statement issued by the Civil Service Commission shall be observed by career officials of this Department in supporting Administration programs: The extent to which Federal career officials should publicly support current and discuss proposed programs of their departments and agencies requires thoughtful judgment by all concerned. The role of the career official is still evolving within our system of government with the consequence that the precedent of longstanding tradition is not available. It is understandable, therefore, that uncertainty exists regarding the role the career official should play in program advocacy. This uncertainty has prompted requests from career officials, particularly in the field service, and from department and agency heads for guidance. No definitive standard can be enunciated to define this role. Discretion and judgment must be applied by both Presidential appointees and career officials within the context of each problem as it arises. With this in mind it may be helpful, nevertheless, to consider the following guidelines: 1. Programs already authorized by law or Executive Order. When a Federal program 18 based on law or Executive Order, every career official has a positive obligation to make it function as efficiently and economically as possible and to support it as long as it is a part of recognized public policy. This means that a career official may properly make speeches explaining and interpreting a current program, identifying its public purposes, citing its achievements, defending it against uninformed or unjust criticisms, pointing out need for possible corrective action or soliciting views for improving it. The fact that the program was the subject of partisan controversy during the stages of enactment or development would in no sense lessen this obligation although the career official should exercise care in divorcing his remarks from a strictly political context. 2. Pending legislation. A more difficult decision is faced when new or unchanged programs are pending before Congress in the form of proposed legislation. Definitive statutory language prohibits the use of appropriated funds for "publicity or propaganda designed to support or defeat legislation pending before Congress." Such language clearly limits the career official's position of possible support or of opposition to new or amendatory legislation. Frequently career officials are requested to testify on pending legislative proposals before Congressional committees. Presidential appointees should recognize potential political involvement in assigning responsibility for legislative testimony to career officials. In most instances, the career officials should be used to present factual or technical testimony with policy advocacy reserved for presentation by the Presidential appointee. A special circumstance arises when Congressional committees request the technical services of career officials to assist in drafting bills or reports. Even in politically controversial areas such an assignment is appropriate if it is understod that the career official is serving as a technical expert to assist in committee work under the direction of committe leadership. § 73.735-603 Use of Government funds. (a) Several laws, referred to in Items 18-22, Appendix A to this part, carry penalties for misuse of Government funds. These apply to: (1) Improper use of official travel; (2) Improper use of payroll and other vouchers and documents on which Government payments are based; (3) Taking or failing to account for funds with which an employee is entrusted in his official position; (4) Taking other Government funds for personal use. § 73.735-604 Use of Government prop erty. (a) An employee shall not directly or indirectly use, or allow the use of Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. For example: (1) Only official documents and materials may be processed on Government reproduction facilities. Both supervisors and employees must assure that this rule is strictly followed. (Exception for employee welfare and recreation associations is stated in Chapter 25-10, General Administration Manual. Exception for employee organizations is stated in Personnel Instruction 711-1.) (2) Employees may drive or use Government automobiles only on official business. (a) An employee shall not participate while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket. However, this section does not preclude activities: (1) Necessitated by an employee's law enforcement duties; or (2) Involving fund-raising within the Federal service under section 3 of Executive Order 10927 and similar agencyapproved activities. (b) General Services Administration regulations on "Conduct on Federal Property" are applicable to all property under the control of the General Services Administration and are applied to all buildings and space under the control of this Department. These regulations prohibit, among other things, gambling and consumption of intoxicating beverages on the premises. The GSA regulations are found in Subpart 101-19.3 of the GSA Regulations, 41 CFR 101-19.3. § 73.735-606 Use of official information. The public interest requires that certain information in the possession of the Government be kept confidential, and released only with general or specific authority under Department or operating agency regulations. This is necessary because it may involve the national security or because it is private personal or business information which has been furnished to the Government in confidence (Item 19-21, Appendix A). In addition, information in the possession of the Government and not generally available may not be used for private gain. The following paragraphs set forth the rules to be followed by Department employees in handling information in official files or documents: received from Government agencies or other sources for official use only within the Department or developed under a pledge of confidence is not to be divulged to unauthorized persons or agencies. (c) Information obtained in confidence. Certain Department units (e.g., Food and Drug Administration, Social Security Administration) obtain in the course of their program activities certain information from businesses or individuals which they are forbidden by law from disclosing. These statutory prohibitions are cited in Appendix A to this part. Each employee is responsible for observing these laws. (d) Use of information for private gain. Government employees are sometimes able to obtain information about some action the Government is about to take or some other matter which is not generally known. Information of this kind shall not be used by the employee to further his or someone else's private financial or other interests. Such a use of official information is clearly a violation of a public trust. Employees shall not, directly or indirectly, make use of, or permit others to make use of, for the purpose of furthering a private interest, official information not made available to the general public. An employee shall not be discriminated against because of race, color, religion, national origin, sex, or age. This prohibition applies to both employment and utilization of Federal employees. Discrimination on the basis of politics also is prohibited. § 73.735-608 Participation in management of employee organizations. Any employee has the right to be a member of an employee organization. He shall not, however, participate in the management of an employee organization as an officer of the organization or represent it in dealings with management when such activity might result in a conflict of interest or otherwise be incompatible with law or the official duties of the employee. The duties of managerial executives who determine management policies and put them into effect and of personnel employees, other than those in a purely clerical capacity, are inconsistent with participation in the management or representation of an employee organization. Determination whether such conflict exists in other cases shall be made on a case-by-case basis by management after discussion with the employee organization concerned. Guidelines for such determinations are: (a) Conflict of interest will be deemed to exist when an employee is an officer of an employee organization or actively represents it on specific matters of direct official concern, and also has continuing responsibility as a management official for (1) Making administrative decisions or formal recommendations on cases or policies advocated by the same or a similar employee organization, or (2) Dealing with officers and representatives of the same or a similar employee organization. (b) The conflict must be immediate and real, not remote and theoretical. (c) When the conflict is temporary and may be expected to occur only rarely, the employee shall be disqualified from acting as the representative of the employee organization in the particular case. Subpart G-Financial Responsibility § 73.735-701 General provisions. (a) An employee shall not by failure to meet his just financial obligations reflect adversely on the Government as his employer. He shall pay each just financial obligation in a proper and timely manner. A "just financial obligation" is one acknowledged by the employee or reduced to judgment by a court. "In a proper and timely manner" is a manner which the Department determines does not, under the circumstances, reflect adversely on the Government as his employer. The Department cannot condone laxness on the part of an employee in discharging his financial obligations, particularly those to Federal, State or local governments or to tax-supported institutions such as a city or State hospital or educational institution or in meeting his obligations for support of his family. If for some reason an employee is unable to pay these obligations promptly, he is expected to make satisfactory arrangements for payment and abide by these arrangements. It is the responsibility of the Department to help an employee who asks for advice in meeting such obligations. (b) When an employee has handled his financial affairs in such a way that (1) Action on complaints received from his creditors requires the use of a considerable amount of official time, or (2) It appears that financial difficulties are impairing his efficiency on the job, or (3) By reason of his financial irresponsibility the attitude of the general public toward the Department is adversely affected, and the employee after counseling does not make arrangements to meet his financial obligations, disciplinary action should be considered in accordance with Subpart K of this part. (c) The Department is not obligated to help creditors who have an opportunity to make an investigation before extending credit such as mercantile creditors. The Department should not act as collection agent nor arbitrator when the validity of a debt is questioned. § 73.735-702 Processing indebtedness complaints. (a) Tax indebtedness. (1) When an employee cannot pay his Federal income taxes promptly he should get in touch with the local office of the Internal Revenue Service and make arrangements to pay. If he fails to make such arrangements or fails to keep the agreement, the Internal Revenue Service may place a levy against his salary. This will require the pay roll office to deduct at least part of the employee's take-home pay to meet the tax obligations. (2) When a complaint on tax indebtedness is received by a member of the personnel or administrative office or a comparable official, he will discuss it with the employee. The employee will be told that he is expected to make arrangements to pay the indebtedness and to abide by the arrangements. If a supervisor receives such a complaint, he should send it to his personnel or administrative office. (b) Indebtedness for family support. A complaint that an employee has failed to meet his obligations for support of his family will be handled in the same manner as in paragraph (a) of this section. (c) Indebtedness in mercantile cases. When an indebtedness complaint of this type is received, the personnel or administrative office or the employee's supervisor, according to local practice, will discuss it with the employee. If more than one letter is received from the same creditor within 30 days, the additional letter or letters will not be discussed with the employee. If the supervisor holds the discussion, he will send the debt letter with a notation of the results of the discussion with the employee or the employee's statement of intention to the personnel or administrative office for filing. § 73.735-703 Telephone inquiries. (a) Telephone inquiries to verify employment with the Department, the amount of an employee's salary, and similar information should be referred to the personnel or administrative office, or in the case of a Social Security District Office employee, to the District Manager. No other person or office should give out this information. Where there is question as to whether such information should be provided by telephone the caller should be asked to present his request in writing. (b) No action will be taken on debt complaints received by telephone. When a creditor calls to make a complaint, he will be told that Department policy does not permit handling debt complaints by telephone and will be told the office to which he should direct his complaint in writing. An employee shall not be called to the telephone to discuss a debt complaint with a creditor. Subpart H-Political Activity (a) All employees in the Executive Branch of the Federal Government are subject to basic political activity restrictions of the Hatch Act (Hatch Political Activities Act of August 2, 1939, as amended) and Civil Service Rule IV. Employees are individually responsible for refraining from prohibited political activity. Ignorance of a prohibition does not excuse a violation. This subpart summarizes provisions of law and regulation concerning political activity of employees. The Federal Personnel Manual, Civil Service Pamphlet 20, and Federal Employees Facts Leaflet No. 2 contain more detailed information on this subject. These may be reviewed in the personnel office, or will be made available by the counselor or deputy counselor for the part of the Department. (b) Intermittent employees are subject to the restrictions when in active duty status only and for the entire 24 hours of any day of actual employment. (c) Employees on leave, on leave without pay, or on furlough or terminal leave, even though the employees' resignations have been accepted, are subject to the restrictions. A separated employee who has received a lump-sum payment for annual leave, however, is not subject to the restriction during the period covered by the lump-sum payment or thereafter, provided he does not return to Federal employment during that period. An employee is not permitted to take leave of absence to work with a political candidate, committee, or organization or become a candidate for office with the understanding that he will resign his position if nominated or elected. (d) An employee is accountable for political activity by another person acting as his agent or under the employee's direction or control if he is thus accomplishing indirectly what he may not lawfully do directly and openly. § 73.735-802 Restrictions. (a) The Hatch Act provides that employees have the right to vote as they please and the right to express their opinions on political subjects and candidates. Generally, however, they are prohibited from taking an active part in political management or political campaigns or using official authority or influence to interfere with an election or affect its results. There are some exemptions from the restrictions of the Hatch Act: (1) Employees may engage in political activity in connection with any question not specifically identified with any National or State political party. They also may engage in political activity in connection with an election if none of the candidates represents a party any of whose candidates for presidential elector received votes at the last preceding election at which presidential electors were selected. (2) An exception relates to political campaigns in communities adjacent to the District of Columbia or in communities the majority of whose voters are employees of the Federal Government. Communities in which the exception applies are specifically designated by the Civil Service Commission. Information regarding the localities and the conditions under which the exceptions are granted may be obtained from the personnel office or the Department counselor or deputy counselor. (3) Intermittent employees are exempt during such time as they are not in active duty status. |