portunity e SECNAVINE SECNAVIN Chapter VI-Department of the Navy appropriate supervisor, who shall resolve the matter in accordance with this part. If it is determined that the individual should be disqualified from suspected participation in any official activities who have that are related to the conflicting inhem to be terest, a formal disqualification notice nnel hare must be sent to the concerned individard of tual's appropriate supervisor and immert should diate subordinates. If the individual ntion of cannot adequately perform his official author duties after such disqualification, he must divest himself of such involvement or be removed from that position. should be resolution 5 that s ely to re versely the mat ons. The nduct vi romptly as dir disqua assig ties, te actic iminist (2) Naval personnel need not disqualify themselves under this section, however, for holding shares of a widely held, diversified mutual fund or regulated investment company. Such holdings are exempted as being too remote or inconsequential to affect the integrity of the services of Government personnel. (b) Using inside information. Naval personnel shall not use, directly or indirectly, inside informaion to further a private gain for themselves or others if that information is not generally available to the public and was obtained by reason of their DoD positions. (c) Using naval position. Naval personnel are prohibited from using their official positions to induce, coerce, or in any manner unlawfully influence any person, including subordinates, to provide any benefit, financial or otherwise, to themselves or others. (d) Dealing with present and former military and civilian personnel. Naval personnel shall not knowingly deal on behalf of the Government with present or former Government personnel, military of civilian, whose participation in the transaction would be in violation of a statute, regulation, or policy set forth in this part. While all applicable prohibitions are within the prohibition established by this paragraph, attention is directed to the prohibition on retired Regular officers selling to the Government through the department in which they hold a retired status, 18 U.S.C. 281; the prohibition on former personnel acting as an agent or attorney for anyone other than the United States in connection with "claims" against the Govern § 721.6 ment, 18 U.S.C. 207; and the prohibition on paying appropriated funds to retired Regular officers who are "selling" to certain Government agencies, 37 U.S.C. 801(c). (e) Commercial soliciting by naval personnel. To eliminate the appearance of coercion, intimidation, or pressure from rank, grade, or position, full-time naval personnel, except special Government employees and Reserve enlisted personnel on active duty for training, are prohibited from making personal commercial solicitations or sales to DoD personnel who are junior in rank or grade, at any time, on or off duty. (1) This limitation includes, but is not limited to, the solicitation and sale of insurance, stocks, mutual funds, real estate, and any other commodities, goods, or services. (2) This prohibition is not applicable to the one-time sale by an individual of his own personal property or privately owned dwelling, or to the offduty employment of naval personnel as employees in retail stores or other situations not including solicited sales. (3) With regard to solicitation by and of civilian personnel, the limitation applies only to solicitation of personnel under the supervision, at any level, of the solicitor. (f) Assignment of Reserve personnel for training. Naval personnel who are responsible for assigning Reserves for training shall not assign them to duties in which they will obtain information that could be used by them or their private sector employers to gain unfair advantage over civilian competitors. (g) Gratuities. (1) Except as provided in paragraph (g)(2) of this section, naval personnel and their spouses, minor children, and members of their households shall not solicit, accept, or agree to accept any gratuity for themselves, members of their families, or others, either directly or indirectly from, or on behalf of, a defense contractor. A defense contractor is a person or other entity which: (i) Is engaged in or seeks business or financial relations of any sort with any DoD component; (ii) Conducts operations or activities that are either regulated by a DoD 90-111 0-82--13 nature, naval personnel will refrain (e) Preferential treatment. Special (f) Acquiring conflicting financial interests. Notwithstanding the fact that they may have filed confidential statements of affiliations and financial interests (DD Form 1555), naval personnel must at all times avoid acquiring or retaining financial interests which would disqualify them from performing their assigned duties or responsibilities. Some of the more likely situations in which conflicts of interests might arise are where naval personnel have Government duties or responsibilities related to business enti ties: (1) With which they, spouses, minor children, or household or their members are associated as employees, officers, owners, directors, members, trustees, partners, advisers, or consultants; which they, (2) With spouses, minor children, or household or their members are negotiating or have arrangements for prosective employment; or (3) In which they, or their spouses, minor children, or household members have interests through ownership of stock options, bonds, securities other financial arrangements, such as trusts, or through participation in pension or retirement plans. or associations. (g) Membership in Naval personnel who are members or officers of non-Governmental associations or organizations must avoid activities on behalf of the association or organization that with their official Government posiare incompatible tions. Secretary of the Navy Instruction (SECNAVINST) 5760.4 (series) sets forth the Department of the Navy policy regarding participation by naval activities and naval personnel in the activities of private associations. (h) Equal opportunity. Naval personnel shall scrupulously adhere to the DoD program of equal opportunity regardless of race, color, religion, sex, age, or national origin, in accordance Title 32-National Defense with equal opportunity directives. See, for example, SECNAVINST 5350.6 (series) and SECNAVINST 5350.10 (series). (i) Reporting suspected violations. Naval personnel who have information which causes them to believe that other DoD personnel have violated a statute or standard of conduct imposed by this part should bring the matter to the attention of the appropriate command authority. The matter thereafter should be brought to the attention of the person concerned, for possible resolution without further command action, unless the command determines that such communication is not likely to remedy the problem or will adversely affect a proper investigation of the matter. (j) Resolving violations. The resolu tion of standards of conduct violations shall be accomplished promptly by one or more measures, such as divestiture of conflicting interests, disqualification for particular assignments, changes in assigned duties, termination, or other appropriate action, as provided by statute or administrative procedures. Disciplinary actions shall be in accordance with established personnel procedures. See § 721.6(a). § 721.6 Regulations governing the conduct of naval personnel. (a) Affiliations and financial in tersts. Naval personnel shall not engage in any personal, business, or professional activity, or receive or retain any direct or indirect financial interest, which places them in a posi tion of conflict between their private interests and the public interests of the United States related to the duties or responsibilities of their official positions. For the purpose of this prohibition, the private interests of a spouse, minor child, and any household member are treated as private interests of the naval personnel. (1) Unless otherwise expressly authorized by action taken under 18 U.S.C. 208(b), all naval personnel who have or acquire an affiliation or a financial interest which creates a conflict or appearance of a conflict with their official duties shall report the possibly disqualifying interest to the portunity SECNAVINE SECNAVIN hem to onnel have Chapter VI-Department of the Navy appropriate supervisor, who shall resolve the matter in accordance with this part. If it is determined that the individual should be disqualified from suspected participation in any official activities who have that are related to the conflicting interest, a formal disqualification notice must be sent to the concerned individual's appropriate supervisor and immediate subordinates. If the individual cannot adequately perform his official duties after such disqualification, he must divest himself of such involvement or be removed from that position. lard of rt should ention of author should be of the per resolution action, s that s ely to re versely f the mat ons. The promptly 1 as diver 5. disqu assign ties, te ite acti dminist (2) Naval personnel need not disqualify themselves under this section, however, for holding shares of a widely held, diversified mutual fund or regulated investment company. Such holdings are exempted as being too remote or inconsequential to affect the integrity of the services of Government personnel. (b) Using inside information. Naval personnel shall not use, directly or indirectly, inside informaion to further a private gain for themselves or others if that information is not generally available to the public and was obtained by reason of their DoD positions. (c) Using naval position. Naval personnel are prohibited from using their official positions to induce, coerce, or in any manner unlawfully influence any person, including subordinates, to provide any benefit, financial or otherwise, to themselves or others. (d) Dealing with present and former military and civilian personnel. Naval personnel shall not knowingly deal on behalf of the Government with present or former Government personnel, military of civilian, whose participation in the transaction would be in violation of a statute, regulation, or policy set forth in this part. While all applicable prohibitions are within the prohibition established by this paragraph, attention is directed to the prohibition on retired Regular officers selling to the Government through the department in which they hold a retired status, 18 U.S.C. 281; the prohibition on former personnel acting as an agent or attorney for anyone other than the United States in connection with "claims" against the Govern § 721.6 ment, 18 U.S.C. 207; and the prohibition on paying appropriated funds to retired Regular officers who are "selling" to certain Government agencies, 37 U.S.C. 801(c). (e) Commercial soliciting by naval personnel. To eliminate the appearance of coercion, intimidation, or pressure from rank, grade, or position, full-time naval personnel, except special Government employees and Reserve enlisted personnel on active duty for training, are prohibited from making personal commercial solicitations or sales to DoD personnel who are junior in rank or grade, at any time, on or off duty. (1) This limitation includes, but is not limited to, the solicitation and sale of insurance, stocks, mutual funds, real estate, and any other commodities, goods, or services. (2) This prohibition is not applicable to the one-time sale by an individual of his own personal property or privately owned dwelling, or to the offduty employment of naval personnel as employees in retail stores or other situations not including solicited sales. (3) With regard to solicitation by and of civilian personnel, the limitation applies only to solicitation of personnel under the supervision, at any level, of the solicitor. (f) Assignment of Reserve personnel for training. Naval personnel who are responsible for assigning Reserves for training shall not assign them to duties in which they will obtain information that could be used by them or their private sector employers to gain unfair advantage over civilian competitors. (g) Gratuities. (1) Except as provided in paragraph (g)(2) of this section, naval personnel and their spouses, minor children, and members of their households shall not solicit, accept, or agree to accept any gratuity for themselves, members of their families, or others, either directly or indirectly from, or on behalf of, a defense contractor. A defense contractor is a person or other entity which: (i) Is engaged in or seeks business or financial relations of any sort with any DoD component; (ii) Conducts operations or activities that are either regulated by a DoD 90-111 0-82--13 nature, naval personnel will refrain (e) Preferential treatment. Special (f) Acquiring conflicting financial interests. Notwithstanding the fact that they may have filed confidential statements of affiliations and financial interests (DD Form 1555), naval personnel must at all times avoid acquiring or retaining financial interests which would disqualify them from performing their assigned duties or responsibilities. Some of the more likely situations in which conflicts of interests might arise are where naval personnel have Government duties or responsibilities related to business enti ties: which they, (1) With spouses, minor children, or household or their members are associated as employees, officers, owners, directors, members, trustees, partners, advisers, or consultants; (2) With which they, spouses, minor children, or household or their members are negotiating or have arrangements for prosective employment; or or (3) In which they, or their spouses, minor children, or household members have interests through ownership of stock options, bonds, securities other financial arrangements, such as trusts, or through participation in pension or retirement plans. (g) Membership Naval personnel who are members or in associations. officers of non-Governmental associations or organizations must avoid activities on behalf of the association or organization that with their official Government posiare incompatible tions. Secretary of the Navy Instruction (SECNAVINST) 5760.4 (series) sets forth the Department of the Navy policy regarding participation by naval activities and naval personnel in the activities of private associations. (h) Equal opportunity. Naval personnel shall scrupulously adhere to the DoD program of equal opportunity regardless of race, color, religion, sex, age, or national origin, in accordance 184 Title 32-National Defense with equal opportunity directives. See, for example, SECNAVINST 5350.6 (series) and SECNAVINST 5350.10 (series). (i) Reporting suspected violations. Naval personnel who have information which causes them to believe that other DoD personnel have violated a statute or standard of conduct imposed by this part should bring the matter to the attention of the appro priate command authority. The matter thereafter should be brought to the attention of the person concerned, for possible resolution without further command action, unless the command determines that such com munication is not likely to remedy the problem or will adversely affect a proper investigation of the matter. (j) Resolving violations. The resolu tion of standards of conduct violations shall be accomplished promptly by one or more measures, such as divestiture of conflicting interests, disqualification for particular assignments, changes in assigned duties, termination, or other appropriate action, as provided by statute or administrative procedures. Disciplinary actions shall be in accordance with established personnel procedures. See § 721.6(a). § 721.6 Regulations governing the conduct of naval personnel. (a) Affiliations and financial in tersts. Naval personnel shall not engage in any personal, business, or professional activity, or receive or retain any direct or indirect financial interest, which places them in a posi tion of conflict between their private interests and the public interests of the United States related to the duties or responsibilities of their official posi tions. For the purpose of this prohibition, the private interests of a spouse, minor child, and any member are treated as private interhousehold ests of the naval personnel. (1) Unless otherwise expressly authorized by action taken under 18 U.S.C. 208(b), all naval personnel who have or acquire an affiliation or a financial interest which creates a conflict or appearance of a conflict with their official duties shall report the possibly disqualifying interest to the Opportunity e. SECNATE SECNATI them to Chapter VI-Department of the Navy appropriate supervisor, who shall resolve the matter in accordance with this part. If it is determined that the individual should be disqualified from ng suspect participation in any official activities el who has that are related to the conflicting interest, a formal disqualification notice must be sent to the concerned individual's appropriate supervisor and immeDart shout: diate subordinates. If the individual tention d cannot adequately perform his official d author duties after such disqualification, he should must divest himself of such involveof the pment or be removed from that posie resolutim tion. sonnel hare dard of (2) Naval personnel need not disqualify themselves under this section, however, for holding shares of a widely held, diversified mutual fund or regulated investment company. Such holdings are exempted as being too remote or inconsequential to affect the integrity of the services of Government personnel. (b) Using inside information. Naval personnel shall not use, directly or indirectly, inside informaion to further a private gain for themselves or others if that information is not generally available to the public and was obtained by reason of their DoD positions. (c) Using naval position. Naval personnel are prohibited from using their official positions to induce, coerce, or in any manner unlawfully influence any person, including subordinates, to provide any benefit, financial or otherwise, to themselves or others. (d) Dealing with present and former military and civilian personnel. Naval personnel shall not knowingly deal on behalf of the Government with present or former Government personnel, military of civilian, whose participation in the transaction would be in violation of a statute, regulation, or policy set forth in this part. While all applicable prohibitions are within the prohibition established by this paragraph, attention is directed to the prohibition on retired Regular officers selling to the Government through the department in which they hold a retired status, 18 U.S.C. 281; the prohibition on former personnel acting as an agent or attorney for anyone other than the United States in connection with "claims" against the Govern § 721.6 ment, 18 U.S.C. 207; and the prohibition on paying appropriated funds to retired Regular officers who are "selling" to certain Government agencies, 37 U.S.C. 801(c). (e) Commercial soliciting by naval personnel. To eliminate the appearance of coercion, intimidation, or pressure from rank, grade, or position, full-time naval personnel, except special Government employees and Reserve enlisted personnel on active duty for training, are prohibited from making personal commercial solicitations or sales to DoD personnel who are junior in rank or grade, at any time, on or off duty. (1) This limitation includes, but is not limited to, the solicitation and sale of insurance, stocks, mutual funds, real estate, and any other commodities, goods, or services. (2) This prohibition is not applicable to the one-time sale by an individual of his own personal property or privately owned dwelling, or to the offduty employment of naval personnel as employees in retail stores or other situations not including solicited sales. (3) With regard to solicitation by and of civilian personnel, the limitation applies only to solicitation of personnel under the supervision, at any level, of the solicitor. (f) Assignment of Reserve personnel for training. Naval personnel who are responsible for assigning Reserves for training shall not assign them to duties in which they will obtain information that could be used by them or their private sector employers to gain unfair advantage over civilian competitors. (g) Gratuities. (1) Except as provided in paragraph (g)(2) of this section, naval personnel and their spouses, minor children, and members of their households shall not solicit, accept, or agree to accept any gratuity for themselves, members of their families, or others, either directly or indirectly from, or on behalf of, a defense contractor. A defense contractor is a person or other entity which: (i) Is engaged in or seeks business or financial relations of any sort with any DoD component; (ii) Conducts operations or activities that are either regulated by a DoD |