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(4) The Secretary, Under Secretary, interest is not so substantial as to be and Assistant Secretaries of the Depart deemed likely to affect the integrity of ment, as well as other oficials appointed
the services which the Government by the President by and with the advice might expect, as specified in Subpart E and consent of the Senate, who deter of this part; mine policies to be pursued by the United (g) Certain office-holding activities in States in its relations with foreign professional Societies as specified in powers or in the nation-wide administra § 73.735-406. tion of Federal laws are exempt from the
$ 73.735-902 Requesting approval. prohibitions concerning active participation in political management and
Employees shall make requests for adpolitical campaigns.
ministrative approval in writing through (b) There are restrictions other than
administrative channels to the operating those imposed by the Hatch Act and Rule
agency head (Assistant Secretary for AdIV which relate to:
ministration for Office of Secretary em(1) Political contributions and assess
ployees) or to such person or persons as
he designates. Unless the operating ments. (2) Circulars of solicitation.
agency requires extra copies of the re
quest, it shall be made in one copy only. (3) Solicitation in Federal buildings.
(a) Outside work. The request shall (4) Solicitation by letter.
include: (5) Payment by one employee to an (1) Employee's name, occupational other.
title, grade or rank and Federal salary; (6) Discrimination because of political (2) Nature of the activity: full decontributions.
scription of specific duties or services for (7) Purchase and sale of public ofice. which approval is being requested. In
(8) Political recommendations and the case of self-employment in a prodiscrimination.
fessional capacity, however, it is sufficient (9) Other criminal offenses discussed to indicate the type of service to be renin 18 U.S. Code, Chapte 29.
dered, as medical, legal, etc.
(3) Name and business of person or Subpart 1-Administrative Approval organization for which work will be for Certain Activities
done, or statement that work is to be $ 73.735–901 Applicability,
done as self-employment. If self-em
ployment, show whether alone or with Administrative approval is the author
partners, giving their names, and, if such ization by an operating agency head or
self-employment consists of professional such person or persons as he designates services to a large number of clients or for an employee to engage in certain out
patients, estimate the total number side activities or to participate in his rather than listing them individually. Government capacity in a matter in (4) Place where work will be conwhich he has a direct or indirect finan ducted; cial interest. It is required in advance (5) Estimated total time that will be for:
devoted to the activity. (If on a continu(a) Any outside work which creates
ing basis, show estimated time per year; a conflict or apparent conflict of inter if not, show total time and anticipated est or about the propriety of which an ending date.) employee is uncertain;
(6) Whether services can be per(b) Certain writing or editing activ formed entirely outside of usual duty ities as specified in $ 73.735-403;
hours; if not, estimated number of hours (c) Certain types of teaching or lec of absence from work that will be returing as specified in § 73.735–405; quired;
(d) All professional and consultative (7) Method or basis of compensation services as specified in $ 73.735-402; (e.g., whether fee basis, per diem, per
(e) Any other outside activity or fi annum, or other); nancial interest for which the head of an (8) Total cash compensation anticioperating agency imposes an internal pated during next year. In the case of requirement for administrative approval; self-employment in a professional ca
(f) Participation of an employee in pacity, the total earnings anticipated his Government capacity in any matter from fees. If net earnings are less than in which he has a direct or indirect fi gross earnings because of expenses, show nancial interest, on grounds that the both gross and net earnings.
(9) Compensation anticipated in each person for whom outside work has forms other than cash during next year, been approved during the past year. such as stock, options to purchase stock, The report shall show: participation in life insurance plan, or (a) For the 12 months just past other benefits; and estimated value. (ending August 31). (1) Whether the At any time when the income from an
anticipated work was actually performed employee's approved outside work
for the person or organization named in changes or there is a change in the na
the request for approval; ture or scope of the duties or services
(2) Actual amount of time spent on performed, or the nature of his employ
the activity; er's business, the employee shall submit
(3) Actual compensation received in a revised request. The employee not
cash, and statement of any other beneonly has a duty to keep the Department
fits received, such as stock, options to informed of a change of approved out
purchase stock, or participation in life side actions, but to inform the Depart
insurance plans. ment promptly. If the outside work is
(b) For the forthcoming 12 months discontinued sooner than anticipated
(ending Aug. 31). (1) Whether it is an(not merely suspended temporarily), he
ticipated that the outside work will shall notify the officer who approved the
(2) Whether any change is anticipated (b) Participation in a matter in which
with respect to information supplied in
accordance with the original request on an employee has a financial interest. The request shall include the informa
which approval was based. tion listed below. New approval must be $ 73.735–904 Maintenance of records. sought for each dealing by an employee
All requests for approval of outside in his official capacity with any organi
work or of participation in a matter in zation or matter in which he, his spouse,
which an employee has a financial interminor child, partner, organization in
est (or copies of such requests), a copy which serving as officer, etc., has a finan
of th notification of approval or discial interest.
approval, and the annual report shall (1) Employee's name, occupational
be filed at a level where they are readily title, grade or rank and Federal salary;
available to the operating agency head. (2) Full description of financial inter This level shall be that of the approving est: including whether ownership, serv official or higher. These records will be ice as officer, partner, etc.;
treated as Personnel-Confidential and (3) Business or activity in which fi made available only to persons specifinancial interest exists;
cally authorized by the head of the oper(4) Description of official matter in ating agency. which employee is requesting approval to participate;
Subpart 1-Statements of Employ(5) Basis for requesting determina
ment and Financial Interest tion that the interest is “not so substan $ 73.735–1001 General. tial as to be deemed likely to affect the
(a) The requirements of this subpart integrity of the services which the Goy
are in addition to and not in substitution ernment may expect.” (If based on
for, the requirements of Subpart I of this small total value of investment, supply
part concerning administrative approval appropriate information on total value,
for certain activities. Also, the requiresuch as total shares held and latest
ments of this subpart are in addition to quoted market price. If other basis, ex
and not in substitution for, or in derplain fully.)
ogation of, any similar requirement (c) Office-holding in professional so
otherwise imposed by law, order, or regucieties. The request should be sub
lation. The submission of a statement mitted in memorandum form and should or supplementary statement by an emshow all information pertinent to the ac ployee does not permit him or any other tivity and the reasons why the employee
person to participate in a matter in which considers that such activity would not
his or the other person's participation is constitute a conflict of interest.
prohibited by law, order, or regulation. & 73.735–903 Annual reporting.
& 73.735-1002 Applicability, On September 5 each year, the approv (a) The following employees shall subing officer shall require a report from mit statements of employment and fi
nancial interest in accordance with the over the incumbent and the remote and provisions of this subpart:
inconsequential effect on the integrity (1) Employees paid at a level of the of the Government. Exclusions under Federal Executive Salary Schedule estab this provision must be documented in lished by the Federal Executive Salary writing and retained at the level of the Act of 1964, as amended;
determining official. (2) Employees in grade GS-16 or
§ 73.735-1003 Content of statements. above of the General Schedule established by the Classification Act of 1949,
(a) The statements of employment as amended, or in comparable or higher
and financial interests shall follow the positions not subject to that Act;
format prescribed in Appendix D to this (3) The Surgeon General, Deputy part. Surgeon General, and Assistant Sur
(b) The interest of a spouse, minor geons General of the Public Health Sery child, or other blood relative who is a ice Commissioned Corps;
resident of the employee's household is (4) Employees in hearing examiner considered to be an interest of the empositions as defined by Civil Service Reg ployee, and shall be reported on the ulation 930.202(c) (5 CFR 930.202(c));
statement. (5) Employees in positions specifically
(c) If any information required to be identified in Appendix C to this part
included on the statement of employwhich have basic duties and responsibili
ment and financial interests or suppleties which require the incumbent to ex
mentary statement, including holdings ercise judgment in making or recom
placed in trust, is not known to the emmending a Government decision or in ployee but is known to another person, taking or recommending Government ac
the employee shall request that other tion in regard to contracting or procure
person to submit information in his ment, administering or monitoring
behalf. grants or subsidies, regulating or audit
(d) An employee is not required to ing private or other non-Federal enter
submit on the statement any information prise, or other activities where the de
relative to his connection with, or incision or action has an economic impact
terest in, a professional society or a on the interest of any non-Federal enter
charitable, religious, social, fraternal, prise;
recreational, public service, civic, or po(6) Any other positions specifically
litical organization or a similar organiidentified in Appendix C to this part as
zation not conducted as a business enpositions determined by the operating
terprise. Educational and other insti.
tutions doing research and development agency head as requiring the incumbent thereof to report employment and finan
or related work involving grants of cial interests in order to carry out the
money from or contracts with the Gov. requirements and intent of standards of
ernment are deemed “business enterethical conduct.
prises” and are required to be included. (b) As new positions are established § 73.735–1004 Submission and review or duties of other positions change to
of statements. bring them within the criteria stated in
(a) Officials responsible for reviewing paragraph (a) (5) of this section and
employment and financial interests shall such positions do not fall within the list
be the same as by those who are desigings already appearing in Appendix C to
nated to consider requests for administhis part, they shall be identified and
trative approval as discussed in Subpart reported to the Division of Personnel
I of this part. Management, Office of Administration,
(b) Reviewing officials shall request Office of the Secretary, for inclusion as
that statements of employment and a part of the regulations in this part
financial interests be submitted by emthrough publication in the FEDERAL REG
ployees covered by $ 73.735–1002, in acISTER. Exclusion of such positions from
cordance with the following schedule: this requirement may be made when the operating agency head or his designee
(1) Ninety days after the effective determines that the duties of a position
date of the regulations in this part if are at such a level of responsibility that
employed on or before the effective date; the submission of a statement of em
or ployment and financial interests by the
(2) Thirty days after entrance on duty incumbent is not necessary because of in the position requiring the filing of such the degree of supervision and review statements, but not earlier than ninety
days after the effective date, if such ac- Subpart K-Disciplinary and tion occurs after the effective date.
Remedial Action (3) Changes in, or additions to, the information contained in the statement
§ 73.735–1101 Disciplinary action. shall be reported in a supplementary
(a) Violation of the regulations constatement by the 10th day of the month
tained in this part may be cause for following the end of the quarter in which
disciplinary action which may be in adthe changes occur. Quarters end
dition to any penalty prescribed by law. March 31, June 30, September 30, and
(b) The type of disciplinary action to December 31. If there are no changes
be taken shall be determined in relation in a quarter, a negative report is not re
to the specific violation. No standard quired, except as provided in subpara
table of penalties has been established graph (4) of this paragraph.
for application in the Department. (4) A supplementary statement, nega
Those responsible for recommending and tive or otherwise, is required as of June
for taking disciplinary action must apply 30 each year. This statement shall be
judgment to each case, taking into acfiled not later than July 10.
count the general objectives of meeting (c) Statements shall be submitted in
any requirements of law, deterring simi
lar offenses by the employee and other one copy only.
employees and maintaining high stand(d) The reviewing officer shall review
ards of employee conduct and public statements to determine whether con
confidence. Some types of disciplinary flicts of interest or apparent conflicts
actions to be considered are: might arise from the activities reported
(1) Oral admonishment. thereon.
(2) Written reprimand. (e) When no conflict of interest or
(3) Reassignment. apparent conflict is disclosed by the re
(4) Demotion. view of the statements, no further action
(5) Suspension. is necessary by the reviewing officer and
(6) Separation. the statements shall be filed in accord
(c) Demotion, suspension, and sepaance with $ 73.735-1005.
ration are adverse actions and when (f) When a question on conflict of taken must follow law, Civil Service Reginterest or apparent conflict arises, the ulations and Department procedures. reviewing officer shall work with the em- $ 73.735–1102 Remedial action. ployee to resolve the matter. He shall
(a) Where the statements of employoffer the employee or special Government
ment and financial interest of employees employee an opportunity to explain the
or special Government employees, filed conflict or apparent conflict. If the
under the provisions of Subparts J and question cannot be resolved the matter L of this part, show a conflict of interest shall be reported to the operating agency with their official responsibilities, conhead through the appropriate counselor sideration should be given by the agency or deputy counselor for further con- head or his designee and the employee's sideration and action.
supervisor to reconciling the conflict
through remedial actions. The following $ 73.735–1005 Maintenance of records. are examples of such actions which may
Statements on which questions of con- be appropriate: flict of interest or apparent conflict have
(1) Divestment by the employee or arisen shall be annotated to show the special Government employee of his conaction taken. All statements and sup
flicting interest. plementary statements of employment
(2) Disqualification for a particular
assignment. and financial interests shall be filed at a
(3) Changes in assigned duties. level where they are readily available to the operating agency head. This level
Subpart - Special Provisions Relatshall be that of the approving official or ing to Special Government Emhigher. These records shall be treated ployees as Personnel-Confidential and made $ 73.735-1201 Applicability, available only as specifically authorized
The requirements of this subpart apply by the head of the operating agency or
to the group of employees designated by the Civil Service Commission for good
law (18 U.S.C. 202) as “special Governcause shown.
ment employees." The term includes (2) His principal occupation or em- requires approval by the Secretary and ployment is not his Government employ- publication in the FEDERAL REGISTER. ment and is of such nature that being (2) A limited waiver is permitted of made subject to $ 73.735–1203 is desir- restrictions in 18 U.S.C. 205 for the beneable to protect him and the Department fit of an employee who represents his from possible conflict-of-interest situa- own parents, spouse or child, or a person tions: Viz, those whose principal non- or estate he serves as a fiduciary. The Government occupation is: On or waiver is available whether acting for concerned with work for the Govern- such person with or without compensament, or supported in whole or in part tion, but only if approved by the agency by the Government under grant or con- in which the employee works. In no tract; on or concerned with work for event does the waiver extend to his reprewhich Government support is being sentation of any such person in matters sought; in any catgeory of work which in which he has participated personally the head of the operating agency, or and substantially or which, even in the official he designates, determines should absence of such participation, are the be subject to $ 73.735-1203.
subject of his official responsibility.
(The term “official responsibility” is de$ 73.735–1207 Restrictions conflict-of
fined by 18 U.S.C. 202(b) to mean "the interest statutes.
direct administrative or operating au(a) Each consultant and special Gov- thority, whether intermediate or final, ernment employee covered by this sub- and either exercisable alone or with part shall acquaint himself in particular others, and either personally or through with sections of Title 18 numbered 203, subordinates, to approve, disapprove, or 205, 207, 208, and 209, all referenced in otherwise direct Government action.") Appendix A to this part. Sections 203 (3) Be allowed to represent his reguand 205 contain prohibitions affecting lar employer or other outside organizathe activities of Government employees tion in the performance of work under in their private capacities. The prohibi- a Government grant or contract upon tions applicable to special Government certification by the Secretary that the employees are less stringent than those national interest requires it. Publicawhich affect employees appointed to tion in the FEDERAL REGISTER of such serve more than 130 days a year. Sec- certifications is required. tion 207 contains prohibitions affecting (b) A file of all waivers or exemptions the activities of persons who leave the granted shall be maintained in such service of the Government. It applies manner that information can be given with the same force to former special promptly on individual cases or statisGovernment employees as to former reg- tics provided upon request. Unless the ular employees. Section 208 sets forth a head of the agency specifically provides restriction on the activities of a Gov- for maintenance elsewhere, these recernment employee in performing his ords, together with written advice given functions as such. This section also in connection with less formal requests applies with the same force to special concerning questions of ethical standGovernment employees as to regular em- ards, are kept with the employee's stateployees. Section 209, which prohibits ment of employment and financial ina regular employee's receipt of compen- terests, required to be filed in the persation from private sources in certain sonnel office in accordance with $ 73.735circumstances, specifically excludes spe- 1203(d). cial Government employees from its
& 73.735–1209 Negotiations for concoverage.
tracts or grants. 8 73.735-1208 Requesting waivers or
(a) A consultant or special Governexemptions.
ment employee, even though not com(a) A consultant or special Govern- pelled to do so by 18 U.S.C. 203 and 205, ment employee may request the follow- should make every effort in his private ing waivers or exemptions:
work to avoid any personal contact with (1) An ad hoc exemption under 18 respect to negotiations for contracts or U.S.C. 208(b) if the outside financial grants with the department or agency interest is deemed not substantial enough which he is serving if the subject matter to have an effect on the integrity of his is related to the subject matter of his services. A waiver of insignificant in- consultancy or other service. Any emterests by a general rule or regulation ployee who believes that his case justi