Sec. 0.735-81 0.735-82

Reviewing statements of interest. Disciplinary and other remedial action.

0.735-83 Applicability to members of the uniformed services.

0.735-84 Effect of employees' statements on other requirements.

0.735-85 Statements of employment and financial interests for special Government employees.

AUTHORITY: The provisions of this Part 0 issued under E.O. 11222 of May 8, 1965, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104. SOURCE: The provisions of this Part 0 appear at 31 F.R. 5828, Apr. 15, 1966, unless otherwise noted.

Subpart A-General Provisions

(a) "Employee" means an officer or employee of the Veterans Administration, except a special Government employee.

(b) "Special Government employee” means an officer or employee of the Veterans Administration who is retained, designated, appointed, or otherwise employed to perform, with or without compensation, for 130 days or less during any period of 365 consecutive days, temporary duties either on a full-time, parttime, or intermittent basis.

(c) Where appropriate to the meaning and not explained in this part, the term "person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution.

§ 0.735-3 Informing employees.

(a) Each new employee and special Government employee will be furnished a copy of this part or a comprehensive summary at the time of his entrance on duty.

(b) Annually, and at such other times as circumstances warrant, this part will be brought to the attention of each employee and special Government employee.

(c) Each station shall have available for review by employees and special Government employees, as appropriate, copies of Executive Order 11222 of May 8, 1965, and copies of laws and pertinent Veterans Administration and Civil Service Commission regulations and instructions relating to ethical and other conduct.

§ 0.735-4 Interpretation and advisory service.

(a) An Assistant General Counsel of the Office of the General Counsel is designated by the Administrator to be Counselor for the Veterans Administration. In addition, an official of the same office is designated as Deputy to the Counselor to act for the Counselor in his absence. The Counselor will have responsibility for:

(1) Interpreting for the Veterans Administration the laws, Executive Order 11222, Civil Service Commission regulations and instructions, and the regulations in this part.

(2) Representing the Veterans Administration before the Civil Service Commission on conduct matters.

(3) Coordinating counseling services on conduct for employees and special Government employees.

(4) Resolving questions of conflict or apparent conflict of interest and other matters covered in this part.

(5) Assuring that counseling and interpretations of a precedential nature are made available to deputy counselors designated in paragraphs (b), (c), and (d) of this section.

(6) Reviewing statements of employment and financial interests in connection with unresolved questions of conIflict of interest referred for the Administrator's decision, and recommending decision and remedial action to be taken.

(b) The General Counsel may designate one or more officials in his office as Deputy Counselors (legal) to assist the Counselor in any of the responsibilities listed in paragraph (a) of this section and to perform in Central Office the functions detailed in paragraph (c) of this section.

(c) Chief Attorneys are designated as Deputy Counselors (legal). They will review and render counsel and interpre

tations on questions of conflict of interest and other matters covered by the conduct regulations in this part at the request of Deputy Counselors (Personnel Officers) or at the specific request of employees or special Government employees. The Deputy Counselors (legal) will be guided by the interpretations of the Counselor on the pertinent laws and regulations. In case of doubt regarding any question, or disagreement of interpretation between deputy counselors and employees or special Government employees, the Deputy Counselor (legal) may submit the matter to the Counselor for consideration, furnishing a copy to the appropriate Department Head.

(d) Personnel Officers are designated as Deputy Counselors. They will give advice and guidance to employees and special Government employees on conduct matters as requested. They may submit questions to the Deputy Counselors (legal) on their own initiative or at the specific request of an employee or special Government employee or may request interpretations by the Counselor through the Deputy Counselors (legal).

(e) An employee or special Government employee who has a question on any matter within the scope of this part may seek an answer through this counseling system.

§ 0.735-5 Violation of regulations.

Violation of the regulations in this part by an employee or special Government employee may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law. Subpart B-Standards of Ethical Conduct and Related Responsibilities of Employees

§ 0.735-10 General requirements.

(a) Each Veterans Administration employee shall be expected to serve diligently, loyally, and cooperatively; to exercise courtesy and dignity; and to conduct himself, both on and off duty, in a manner reflecting credit upon himself and the Veterans Administration.

(b) An employee shall avoid any action which might result in, or create the appearance of:

(1) Using public office for private gain;

(2) Giving preferential treatment to any person, group, or organization;

(3) Impeding Government efficiency or economy;

(4) Losing complete independence or impartiality;

(5) Making a Government decision outside official channels; or

(6) Affecting adversely the confidence of the public in the integrity of the Government.

(c) Employees shall not discriminate on the ground of race, color, sex, creed, or national origin in providing benefits under any law administered by the Veterans Administration. They shall not discriminate on those grounds or any other improper ground in any employment matter. Employees are responsible to cooperate in making equal opportunity for all a reality in the Veterans Administration.

(d) An employee shall not attempt to accomplish indirectly-through his immediate family or otherwise-any activity which he is prohibited from doing directly.

(e) Veterans Administration management and supervisors shall encourage the good conduct of employees by setting the example, by dealing with them considerately and impartially, and by showing sincere concern for them as individuals. § 0.735-11 Gifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section, an employee shall not solicit or accept directly or indirectly for himself or any member of his family, any gift, gratuity, favor, entertainment, loan, or anything of monetary value, from a person (individual, corporation, company, association, firm, partnership, society, joint stock company, or any other organization or institution) who:

(1) Has, or is seeking contractual or other business or financial relations with the Veterans Administration;

(2) Conducts operations or activities regulated by the Veterans Administration;

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty;

or

(4) Is attempting to influence the employee's official actions.

(b) The restrictions set forth in paragraph (a) of this section do not apply when:

(1) It is clear that the motivating factor is the family or personal relationship (such as that between the employee and his parents, children, or spouse)

rather than the business relationship of the persons concerned;

(2) Food and refreshments of nominal value are infrequently accepted when offered in the ordinary course of a coffee break, luncheon or dinner meeting, or other meeting, while on official business or on an inspection tour where an employee may properly be in attendance;

(3) Loans from banks or other financial institutions are sought on customary terms to finance proper and usual activities of employees, such as home mortgage loans;

(4) Advertising or promotional material is unsolicited and of nominal intrinsic value (such as pens, pencils, note pads, or calendars);

(5) Common courtesy gifts such as flowers are indicated on appropriate occasions.

(c) An employee shall not solicit contributions from another employee for a gift to an employee in a superior official position. An employee in a superior official position shall not accept a gift presented as a contribution from employees receiving less salary than himself. An employee shall not make a donation as a gift to an employee in a superior official position (5 U.S.C. 113).

(d) An employee is prohibited from accepting gifts or gratuities such as goods, money, services, purchases at discount, entertainment, or similar favors from claimants, patients, ex-patients, or other beneficiaries of the Veterans Administration, or their relatives, friends, or agents, since it could be interpreted that the favors are in return for official services rendered.

(e) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress, as provided by the Constitution and in 5 U.S.C. 114-115a.

§ 0.735-12 Outside employment, activity, or pay.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to those which:

(1) Involve the acceptance of a fee, compensation, gift, payment of expense or any other thing of monetary value in circumstances in which acceptance may