Page images
PDF
EPUB

(4) The Secretary, Under Secretary, and Assistant Secretaries of the Department, as well as other officials appointed by the President by and with the advice and consent of the Senate, who determine policies to be pursued by the United States in its relations with foreign powers or in the nation-wide administration of Federal laws are exempt from the prohibitions concerning active participation in political management and political campaigns.

(b) There are restrictions other than those imposed by the Hatch Act and Rule IV which relate to:

(1) Political contributions and assessments.

(2) Circulars of solicitation.

(3) Solicitation in Federal buildings. (4) Solicitation by letter.

(5) Payment by one employee to another.

(6) Discrimination because of political contributions.

(7) Purchase and sale of public office. (8) Political recommendations and

[blocks in formation]

Administrative approval is the authorization by an operating agency head or such person or persons as he designates for an employee to engage in certain outside activities or to participate in his Government capacity in a matter in which he has a direct or indirect financial interest. It is required in advance for:

(a) Any outside work which creates a conflict or apparent conflict of interest or about the propriety of which an employee is uncertain;

(b) Certain writing or editing activities as specified in § 73.735-403;

(c) Certain types of teaching or lecturing as specified in § 73.735-405;

(d) All professional and consultative services as specified in § 73.735-402;

(e) Any other outside activity or financial interest for which the head of an operating agency imposes an internal requirement for administrative approval;

(f) Participation of an employee in his Government capacity in any matter in which he has a direct or indirect financial interest, on grounds that the

interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government might expect, as specified in Subpart E of this part;

(g) Certain office-holding activities in professional societies as specified in $73.735-406.

§ 73.735-902 Requesting approval.

Employees shall make requests for administrative approval in writing through administrative channels to the operating agency head (Assistant Secretary for Administration for Office of Secretary employees) or to such person or persons as he designates. Unless the operating agency requires extra copies of the request, it shall be made in one copy only.

(a) Outside work. The request shall include:

(1) Employee's name, occupational title, grade or rank and Federal salary;

(2) Nature of the activity: full description of specific duties or services for which approval is being requested. In the case of self-employment in a professional capacity, however, it is sufficient to indicate the type of service to be rendered, as medical, legal, etc.

(3) Name and business of person or organization for which work will be done, or statement that work is to be done as self-employment. If self-employment, show whether alone or with partners, giving their names, and, if such self-employment consists of professional services to a large number of clients or patients, estimate the total number rather than listing them individually.

(4) Place where work will be conducted;

(5) Estimated total time that will be devoted to the activity. (If on a continuing basis, show estimated time per year; if not, show total time and anticipated ending date.)

(6) Whether services can be performed entirely outside of usual duty hours; if not, estimated number of hours of absence from work that will be required;

(7) Method or basis of compensation (e.g., whether fee basis, per diem, per annum, or other);

(8) Total cash compensation anticipated during next year. In the case of self-employment in a professional capacity, the total earnings anticipated from fees. If net earnings are less than gross earnings because of expenses, show both gross and net earnings.

(9) Compensation anticipated in forms other than cash during next year, such as stock, options to purchase stock, participation in life insurance plan, or other benefits; and estimated value.

At any time when the income from an employee's approved outside work changes or 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 shall submit a revised request. The employee not only has a duty to keep the Department informed of a change of approved outside actions, but to inform the Department promptly. If the outside work is discontinued sooner than anticipated (not merely suspended temporarily), he shall notify the officer who approved the request.

(b) Participation in a matter in which an employee has a financial interest. The request shall include the information listed below. New approval must be sought for each dealing by an employee in his official capacity with any organization or matter in which he, his spouse, minor child, partner, organization in which serving as officer, etc., has a financial interest.

(1) Employee's name, occupational title, grade or rank and Federal salary;

(2) Full description of financial interest: including whether ownership, service as officer, partner, etc.;

(3) Business or activity in which financial interest exists;

(4) Description of official matter in which employee is requesting approval to participate;

(5) Basis for requesting determination that the interest is "not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect." (If based on small total value of investment, supply appropriate information on total value, such as total shares held and latest quoted market price. If other basis, explain fully.)

(c) Office-holding in professional societies. The request should be submitted in memorandum form and should show all information pertinent to the activity and the reasons why the employee considers that such activity would not constitute a conflict of interest.

§ 73.735-903 Annual reporting.

On September 5 each year, the approving officer shall require a report from

each person for whom outside work has been approved during the past year. The report shall show:

(a) For the 12 months just past (ending August 31). (1) Whether the anticipated work was actually performed for the person or organization named in the request for approval;

(2) Actual amount of time spent on the activity;

(3) Actual compensation received in cash, and statement of any other benefits received, such as stock, options to purchase stock, or participation in life insurance plans.

(b) For the forthcoming 12 months (ending Aug. 31). (1) Whether it is anticipated that the outside work will continue;

(2) Whether any change is anticipated with respect to information supplied in accordance with the original request on which approval was based.

§ 73.735-904 Maintenance of records.

All requests for approval of outside work or of participation in a matter in which an employee has a financial interest (or copies of such requests), a copy of the notification of approval or disapproval, and the annual report shall be filed at a level where they are readily available to the operating agency head. This level shall be that of the approving official or higher. These records will be treated as Personnel-Confidential and made available only to persons specifically authorized by the head of the operating agency.

Subpart J-Statements of Employment and Financial Interest

§ 73.735-1001 General.

(a) The requirements of this subpart are in addition to and not in substitution for, the requirements of Subpart I of this part concerning administrative approval for certain activities. Also, the requirements of this subpart are in addition to and not in substitution for, or in derogation of, any similar requirement otherwise 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. § 73.735-1002 Applicability.

(a) The following employees shall submit statements of employment and fi

nancial interest in accordance with the provisions of this subpart:

(1) Employees paid at a level of the Federal Executive Salary Schedule established by the Federal Executive Salary Act of 1964, as amended;

(2) Employees in grade GS-16 or above of the General Schedule established by the Classification Act of 1949, as amended, or in comparable or higher positions not subject to that Act;

(3) The Surgeon General, Deputy Surgeon General, and Assistant Surgeons General of the Public Health Service Commissioned Corps;

(4) Employees in hearing examiner positions as defined by Civil Service Regulation 930.202(c) (5 CFR 930.202(c));

(5) Employees in positions specifically identified in Appendix C to this part which have basic duties and responsibilities which require the incumbent to exercise judgment in making or recommending a Government decision or in taking or recommending Government action in regard to contracting or procurement, administering or monitoring grants or subsidies, regulating or auditing private or other non-Federal enterprise, or other activities where the decision or action has an economic impact on the interest of any non-Federal enterprise;

(6) Any other positions specifically identified in Appendix C to this part as positions determined by the operating agency head as requiring the incumbent thereof to report employment and financial interests in order to carry out the requirements and intent of standards of ethical conduct.

(b) As new positions are established or duties of other positions change to bring them within the criteria stated in paragraph (a) (5) of this section and such positions do not fall within the listings already appearing in Appendix C to this part, they shall be identified and reported to the Division of Personnel Management, Office of Administration, Office of the Secretary, for inclusion as a part of the regulations in this part through publication in the FEDERAL REGISTER. Exclusion of such positions from this requirement may be made when the operating agency head or his designee determines that the duties of a position are at such a level of responsibility that the submission of a statement of employment and financial interests by the incumbent is not necessary because of the degree of supervision and review

over the incumbent and the remote and inconsequential effect on the integrity of the Government. Exclusions under this provision must be documented in writing and retained at the level of the determining official.

§ 73.735-1003 Content of statements.

(a) The statements of employment and financial interests shall follow the format prescribed in Appendix D to this part.

(b) The interest of a spouse, minor child, or other blood relative who is a resident of the employee's household is considered to be an interest of the employee, and shall be reported on the statement.

(c) If any information required to be included on the statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf.

(d) An employee is not required to submit on the statement any information relative to his 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. 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. § 73.735-1004 Submission and review of statements.

(a) Officials responsible for reviewing employment and financial interests shall be the same as by those who are designated to consider requests for administrative approval as discussed in Subpart I of this part.

(b) Reviewing officials shall request that statements of employment and financial interests be submitted by employees covered by § 73.735-1002, in accordance with the following schedule:

(1) Ninety days after the effective date of the regulations in this part if employed on or before the effective date;

or

(2) Thirty days after entrance on duty in the position requiring the filing of such statements, but not earlier than ninety

days after the effective date, if such action occurs after the effective date.

(3) Changes in, or additions to, the information contained in the statement shall be reported in a supplementary statement by the 10th day of the month following the end of the quarter in which the changes occur. Quarters end March 31, June 30, September 30, and December 31. If there are no changes in a quarter, a negative report is not required, except as provided in subparagraph (4) of this paragraph.

(4) A supplementary statement, negative or otherwise, is required as of June 30 each year. This statement shall be filed not later than July 10.

(c) Statements shall be submitted in one copy only.

(d) The reviewing officer shall review statements to determine whether conflicts of interest or apparent conflicts might arise from the activities reported thereon.

(e) When no conflict of interest or apparent conflict is disclosed by the review of the statements, no further action is necessary by the reviewing officer and the statements shall be filed in accordance with § 73.735-1005.

(f) When a question on conflict of interest or apparent conflict arises, the reviewing officer shall work with the employee to resolve the matter. He shall offer the employee or special Government employee an opportunity to explain the conflict or apparent conflict. If the question cannot be resolved the matter shall be reported to the operating agency head through the appropriate counselor or deputy counselor for further consideration and action. § 73.735-1005

Maintenance of records. Statements on which questions of conflict of interest or apparent conflict have arisen shall be annotated to show the action taken. All statements and supplementary statements of employment and financial interests shall be filed at a level where they are readily available to the operating agency head. This level shall be that of the approving official or higher. These records shall be treated as Personnel-Confidential and made available only as specifically authorized by the head of the operating agency or the Civil Service Commission for good cause shown.

Subpart K-Disciplinary and
Remedial Action

§ 73.735-1101 Disciplinary action.

(a) Violation of the regulations contained in this part may be cause for disciplinary action which may be in addition to any penalty prescribed by law.

(b) The type of disciplinary action to be taken shall be determined in relation to the specific violation. No standard table of penalties has been established for application in the Department. Those responsible for recommending and for taking disciplinary action must apply judgment to each case, taking into account the general objectives of meeting any requirements of law, deterring similar offenses by the employee and other employees and maintaining high standards of employee conduct and public confidence. Some types of disciplinary actions to be considered are:

(1) Oral admonishment.
(2) Written reprimand.
(3) Reassignment.
(4) Demotion.

(5) Suspension.
(6) Separation.

(c) Demotion, suspension, and separation are adverse actions and when taken must follow law, Civil Service Regulations and Department procedures. § 73.735-1102 Remedial action.

(a) Where the statements of employment and financial interest of employees or special Government employees, filed under the provisions of Subparts J and L of this part, show a conflict of interest with their official responsibilities, consideration should be given by the agency head or his designee and the employee's supervisor to reconciling the conflict through remedial actions. The following are examples of such actions which may be appropriate:

(1) Divestment by the employee or special Government employee of his conflicting interest.

(2) Disqualification for a particular assignment.

(3) Changes in assigned duties. Subpart L-Special Provisions Relating to Special Government Employees

[blocks in formation]

or

(2) His principal occupation or employment is not his Government employment and is of such nature that being made subject to § 73.735-1203 is desirable to protect him and the Department from possible conflict-of-interest situations: Viz, those whose principal nonGovernment occupation is: On concerned with work for the Government, or supported in whole or in part by the Government under grant or contract; on or concerned with work for which Government support is being sought; in any catgeory of work which the head of the operating agency, or official he designates, determines should be subject to § 73.735-1203.

§ 73.735-1207 Restrictions conflict-ofinterest statutes.

Sec

(a) Each consultant and special Government employee covered by this subpart shall acquaint himself in particular with sections of Title 18 numbered 203, 205, 207, 208, and 209, all referenced in Appendix A to this part. Sections 203 and 205 contain prohibitions affecting the activities of Government employees in their private capacities. The prohibitions applicable to special Government employees are less stringent than those which affect employees appointed to serve more than 130 days a year. tion 207 contains prohibitions affecting the activities of persons who leave the service of the Government. It applies with the same force to former special Government employees as to former regular employees. Section 208 sets forth a restriction on the activities of a Government employee in performing his functions as such. This section also applies with the same force to special Government employees as to regular employees. Section 209, which prohibits a regular employee's receipt of compensation from private sources in certain circumstances, specifically excludes special Government employees from its coverage.

§ 73.735-1208 Requesting waivers or exemptions.

(a) A consultant or special Government employee may request the following waivers or exemptions:

(1) An ad hoc exemption under 18 U.S.C. 208(b) if the outside financial interest is deemed not substantial enough to have an effect on the integrity of his services. A waiver of insignificant interests by a general rule or regulation

requires approval by the Secretary and publication in the FEDERAL REGISTER.

(2) A limited waiver is permitted of restrictions in 18 U.S.C. 205 for the benefit of an employee who represents his own parents, spouse or child, or a person or estate he serves as a fiduciary. The waiver is available whether acting for such person with or without compensation, but only if approved by the agency in which the employee works. In no event does the waiver extend to his representation of any such person in matters in which he has participated personally and substantially or which, even in the absence of such participation, are the subject of his official responsibility. (The term "official responsibility" is defined by 18 U.S.C. 202(b) to mean “the direct administrative or operating authority, whether intermediate or final, and either exercisable alone or with others, and either personally or through subordinates, to approve, disapprove, or otherwise direct Government action.")

(3) Be allowed to represent his regular employer or other outside organization in the performance of work under a Government grant or contract upon certification by the Secretary that the national interest requires it. Publication in the FEDERAL REGISTER of such certifications is required.

(b) A file of all waivers or exemptions granted shall be maintained in such manner that information can be given promptly on individual cases or statistics provided upon request. Unless the head of the agency specifically provides for maintenance elsewhere, these records, together with written advice given in connection with less formal requests concerning questions of ethical standards, are kept with the employee's statement of employment and financial interests, required to be filed in the personnel office in accordance with § 73.7351203(d).

§ 73.735-1209 Negotiations for contracts or grants.

(a) A consultant or special Government employee, even though not compelled to do so by 18 U.S.C. 203 and 205, should make every effort in his private work to avoid any personal contact with respect to negotiations for contracts or grants with the department or agency which he is serving if the subject matter is related to the subject matter of his consultancy or other service. Any employee who believes that his case justi

« PreviousContinue »