Subpart E-Employees Required To Submit Statements of Employment and Financial Interests

Sec.

1201.735-501 Submission of statements.

AUTHORITY: The provisions of this Part 1201 issued under E.O. 11222 of May 8, 1965, 30 F.R. 6469, 3 CFR, 1964-1965 Supp., p. 306; 5 CFR 735.104.

SOURCE: The provisions of this Part 1201 appear at 37 F.R. 11060, June 2, 1972, unless otherwise noted.

Subpart A-General

Executive Order No. 11222 directs the Civil Service Commission to require each agency head to review and reissue his agency's regulations regarding the ethical conduct and other responsibilities of all its employees. One of the main purposes of the regulations in this part is to encourage individuals faced with questions involving subjective judgment to seek counsel and guidance. The General Counsel is designated to be the counselor for ACTION with respect to these matters. Regional Attorneys are designated to be Deputy Counselors. They will provide authoritative advice and guidance in this area to any ACTION employee who seeks it.

(a) Any violation of the regulations in this part may be cause for disciplinary action. Violation of those provisions of the regulations in this part which reflect legal prohibitions may also entail penalties provided by law.

(b) This part applies to all employees of ACTION. "Employee" as used in this

part, includes regular employees, Presidential appointees, "special Government employees," experts, and consultants, whether employed on a full-time or intermittent basis. As used in this part, the term "special Government employee" means a person appointed or employed to perform temporary duties for ACTION with or without compensation, on a full-time or intermittent basis, for not to exceed 130 days during any period of 365 days. The term "regular Govern. ment employee" means any officer or employee other than a special Government employee.

Subpart B-Conduct and
Responsibilities of Employees

§ 1201.735-201 Proscribed actions.

As provided by the President in Executive Order No. 11222, whether specifically prohibited by law or in the regulations in this part, no U.S. regular or special Government employees shall take any action which might result in, or create the appearance of:

(a) Using public office or employment for private gain, whether for themselves or for another person, particularly one with whom they have family, business, or financial ties.

(b) Giving preferential treatment to any person.

(c) Impeding Government efficiency or economy.

(d) Losing complete independence or impartiality.

(e) Making a Government decision outside official channels.

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

(g) Using Government office or employment to coerce a person to provide financial benefit to themselves or to other persons, particularly anyone with whom they have family, business or financial ties.

§ 1201.735-202 General conduct prejudicial to the Government.

An employee may not engage in criminal, infamous, dishonest, immoral or notoriously disgraceful conduct prejudicial to the Government.

§ 1201.735-203 Conflict of interest.

(a) Regular Government employees. A regular employee of the Government is subject to the following major criminal prohibitions:

(1) He may not, except in the discharge of his official duties, represent anyone else before a court or Government agency in a matter in which the United States is a party or has an interest. This prohibition applies to both paid and unpaid representation of another (18 U.S.C. 205).

(2) He may not participate in his governmental capacity in any matter in which he, his spouse, minor child, outside business associate, or person with whom he is negotiating for employment has a financial interest (18 U.S.C. 208).

(3) He may not, after his Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and in which he participated personally and substantially for the Government (18 U.S.C.207).

(4) He may not for 1 year after his Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and which was within the boundaries of his official responsibility during the last year of his Government service. This temporary restraint gives way to the permanent restraint described in subparagraph (3) of this paragraph if the matter is one in which he participated personally and substantially (18 U.S.C. 207).

(5) He may not receive any salary, or supplementation of his Government salary, from a private source as compensation for his services to the Government (18 U.S.C. 209).

Subpart C-Conduct and Responsibilities of Special Government Employees

§ 1201.735-301 Special Government employees.

(a) A special Government employee is subject to the following major criminal prohibitions:

(1) He may not, except in the discharge of his official duties, represent anyone else before a court or Government agency in a matter in which the United States is a party or has an interest and in which he has at any time participated personally and substantially for the Government (18 U.S.C. 205).

(2) He may not, except in the discharge of his official duties, represent

anyone else in a matter pending before the agency he serves unless he has served there no more than 60 days during the past 365. He is bound by this restraint despite the fact that the matter is not one in which he has ever participated personally and substantially (18 U.S.C. 205).

The restrictions described in subparagraphs (1) and (2) of this paragraph apply to both paid and unpaid representation of another.

(3) He may not participate in his governmental capacity in any matter in which he, his spouse, minor child, outside business associate, or person with whom he is negotiating for employment has a financial interest (18 U.S.C. 208). (4) He may not, after his Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and in which he participated personally and substantially for the Government (18 U.S.C. 207).

(5) He may not, for 1 year after his Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and which was within the boundaries of his official responsibility during the last year of his Government service. This temporary restraint gives way to the permanent restriction described in subparagraph (4) of this paragraph if the matter is one in which he participated personally and substantially (18 U.S.C. 207).

Subpart D-Outside Employment and Activities

§ 1201.735-401 Outside employment. (a) Application. Only paragraph (d) of this section is applicable to special Government employees.

(b) General. (1) There is no general prohibition against ACTION employees holding outside employment, including teaching, lecturing, or writing. But no employee may engage in employment if it might result in a conflict or an appearance of conflict between the private interests of the employee and his official responsibility.

(2) Thus, an employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of his official

responsibility. Incompatible activities include, but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of a conflict of interest.

(ii) Outside employment which tends to impair the employee's mental or physical capacity to perform his official responsibility in an acceptable manner.

(3) All employees not required by § 1201.735-501 to report their outside employment and financial interests shall inform their supervisors of all outside employment they hold or accept.

(c) Employment with ACTION grantee and contractor organizations. (1) No ACTION employee may be employed as an executive officer of any ACTION grantee or delegate agency. "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.

(2) A special Government employee may serve as executive officer of an ACTION grantee or delegate agency if he has not served ACTION for more than 60 days during the immediately preceding period of 365 days. However, he shall 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 ACTION employee.

(d) Teaching, lecturing, and writing (1) Use of information. Employees are encouraged to engage in teaching, lecturing, and writing. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing that is dependent on information obtained as a result of his Government employment, except when that information has been or on request will be made available to the general public or when the agency head gives advance written authorization for the use of nonpublic information on the basis that the proposed use is in the public interest.

(2) Compensation. No employee may accept compensation or anything of value for any consideration, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to

the ACTION programs or which draws substantially on official data or ideas which have not become part of the body of public information.

(3) Clearance of publications. No employee may submit for publication any writing other than recruiting information any contents of which are devoted to the ACTION programs or to any other matter which might be of official concern to the U.S. Government without in advance clearing the writing with the Office of Public Affairs or Regional Public Affairs Officers, as appropriate. Before clearing any such writing, the Office of Public Affairs will consult with the appropriate ACTION office.

(e) State and local government employment. Regular employees may not hold office or engage in outside employment under a State or local government except with prior approval of the General Counsel, ACTION.

(f) Participation in charitable or other activities. This section does not preclude an employee from participating in the affairs of a charitable, religious, professional, social, fraternal, nonprofit educational or recreational, public service, or civic organization. § 1201.735-402

and favors.

Gifts,

cntertainment,

(a) From donors dealing with ACTION. (1) No regular or special employee may solicit or accept, directly or indirectly, for himself, for any member of his family, or for any person with whom he has business or financial ties, any gift, gratuity, favor, entertainment, or loan or any other thing of value, from any individual or organization which:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with ACTION;

(ii) Has interests that may be substantially affected by the performance or nonperformance of the employee's official responsibility;

(iii) Is in any way attempting to affect the employee's exercise of his official responsibility; or

(iv) Conducts operations or activities that are regulated by ACTION.

(2) Subparagraph (1) of this paragraph does not prohibit, even if the donor has dealings with ACTION:

(i) Acceptance of things of value from parents, children, or spouse if those relationships rather than the business of the donor is the motivating factor for the gift;

(li) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of breakfast, luncheon, or dinner meeting or other meetings;

(iii) Solicitation and acceptance of loans from banks or other financial institutions to finance proper and usual activities of employees, such as home mortgage loans, solicited and accepted on customary terms;

(iv) Acceptance on behalf of minor dependents of fellowships, scholarships, or educational loans awarded on the basis of merit and/or need;

(v) Acceptance of awards for meri torious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

(3) Regular or special employees need not return unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other things of nominal intrinsic value.

(b) From other ACTION employees. No employee in a superior official position may accept any gift presented as a contribution from employees receiving less salary than himself. No employee shall solicit contributions from another employee for a gift to an employee in a superior official position, nor shall any employee make a donation as a gift to an employee in a superior official position. However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(c) From foreign governments. No regular employee may solicit or, without the consent of the Congress, receive any present, decoration, emolument, pecuniary favor, office, title, or any other gift from any foreign government. See 5 U.S.C. 7342; Executive Order 11320; and 22 CFR Part 3 (as added, 32 F.R. 6469). (d) Gifts to ACTION. Gifts to the United States or to ACTION may be accepted in accordance with ACTION regulations.

ment is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits. Nor does it allow an employee to receive non-Government reimbursement of travel expenses for travel on official business under ACTION orders; but rather, such reimbursement, if any, should be made to ACTION and amounts received should be credited to its appropriation. If an employee receives accommodations, goods or services in kind from a non-Government source, this item or items will be treated as a donation to ACTION and an appropriate reduction will be made in per diem or other travel expenses payable. § 1201.735-403 Financial interests.

(a) An employee shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially with his Government duties and responsibilities;

or.

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(b) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by the law, the Executive order, this section, or ACTION regulations.

§ 1201.735-404 Economic and financial activities of employees abroad.

(a) Prohibitions in any foreign country. A U.S. citizen employee abroad is specifically prohibited from engaging in the activities listed below in any foreign country:

(1) Speculation in currency exchange; (2) Transactions at exchange rates differing from local legally available rates, unless such transactions are duly authorized in advance by the agency; (3) Sales to unauthorized persons (whether at cost or for a profit) of currency acquired at preferential rates through diplomatic or other restricted arrangements;

(4) Transactions which entail the use, without official sanction, of the diplomatic pouch;

(5) Transfers of funds on behalf of blocked nationals, or otherwise in violation of U.S. foreign funds and assets control;

(6) Independent and unsanctioned private transactions which involve an employee as an individual in violation of applicable control regulations of foreign governments;

(7) Acting as an intermediary in the transfer of private funds from persons in one country to persons in another country, including the United States;

(8) Permitting use of one's official title in any private business transactions or in advertisements for business purposes.

(b) Prohibitions in country of assignment. (1) A U.S. citizen employee shall not transact or be interested in any business or engage for profit in any profession or undertake other gainful employment in any country or countries to which he is assigned or detailed in his own name or through the agency of any other person.

(2) A U.S. citizen employee shall not invest in real estate or mortgages on properties located in his country of assignment. The purchase of a house and land for personal occupancy is not considered a violation of this subparagraph.

(3) A U.S. citizen employee shall not invest money in bonds, shares or stocks of commercial concerns headquartered in his country of assignment or conducting a substantial portion of their business in such country. Such investments, if made prior to knowledge of assignment or detail to such country or countries, may be retained during such assignment or detail.

(4) A U.S. citizen employee shall not sell or dispose of personal property, including automobiles, at prices producing profits to him which result primarily from import privileges derived from his official status as an employee of the U.S. Government.

§ 1201.735-405 Disqualifications

aris

ing from private financial interest and from holding office in outside organizations.

(a) Financial interests of employee, family members, and partners. No employee may participate personally as an ACTION 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).