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cal and other conduct of Federal employees are adopted and will be enforced as administrative regulations, violations of which may in appropriate cases be the basis for disciplinary action, including removal. The fact that a statute which may relate to employee conduct is not identified in this part does not mean that it may not be the basis for disciplinary action against an employee. $ 0.735–10a Proscribed actions.

An employee shall avoid any action, whether or not specifically prohibited by this subpart, which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Government eficiency or economy;

(d) Losing complete independence or impartiality;

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

(f) Affecting adversely the confidence of the public in the integrity of the Government. $ 0.735-11 Gifts, entertainment, and

favors. (a) General limitations. Except as provided in paragraphs (b) and (f) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, payment of expenses, fee, compensation, or any other thing of monetary value, for himself or another person, from a person who:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with the Department of Commerce;

(2) Conducts operations or activities that are regulated by the Department of Commerce; or

(3) Has interests that may be substantially affected by the performance or nonperformance of the employee's official duty or by actions of the Department.

(b) Exceptions. The following exceptions are authorized to the limitation in paragraph (a) of this section:

(1) Acceptance of a gift, gratuity, favor, entertainment, loan, payment of expenses, fee, compensation, or other thing of monetary value incident to obvious family or personal relationships (such as those between the employee

and the parents, children, or spouse of the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors.

(2) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour where an employee may properly be in attendance. For the purpose of this section, “nominal value” means that the value of the food or refreshments shall not be unreasonably high under the circumstances.

(3) Acceptance of loans from banks or other financial institutions on customary terms and on security not inconsistent with paragraph (a) of this section, to finance proper and usual activities of employees, such as home mortgage loans.

(4) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(5) Acceptance of a gift, gratuity, favor, entertainment, loan, payment of expenses, fee, compensation, or other thing of monetary value when such acceptance is determined by the head of the operating unit concerned to be necessary and appropriate in view of the work of the Department and the duties and responsibilities of the employee. A copy of each such determination shall be sent to the counselor of the Department.

(6) Special Government employees are covered by this section only while employed by the Department or in connection with such employment.

(c) [Reserved]

(d) Gifts to superiors. An employee shall not solicit a contribution from another employee for a gift to an oficial superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). 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. An employee who violates these requirements shall be removed from the service.

(e) Gifts from a foreign government. An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless acceptance is (1) authorized by Congress as provided

by the Constitution and in Public Law any salary or anything of monetary 89-673, 80 Stat. 952, and (2) authorized value from a private source as compenby the Department of Commerce as pro- sation for his services to the Government. vided in Administrative Order 202–739. (18 U.S.C. 209) (f) Reimbursement for travel eit

(b) Improper benefit from oficial penses and subsistence. Neither this sec- activity. (1) No employee of the Departtion nor $ 0.735–12 precludes an employee ment shall receive compensation (e.g., from receipt of bona fide reimbursement, an honorarium) or anything of monetary unless prohibited by law, for expenses of value, other than that to which he is travel and such other necessary sub- duly entitled from the Government, for sistence as is compatible with this part the performance of any activity during for which no Government payment or his service as such employee of the Dereimbursement is made. However, this partment and within the scope of his paragraph does not allow an employee official responsibilities. to be reimbursed, or payment to be made (2) As used in this paragraph, "within on his behalf, for excessive personal the scope of his official responsibilities” living expenses, gifts, entertainment, or means in the course of or in connection other personal benefits, nor does it allow with his official responsibilities. (See 29 an employee to be reimbursed by a person Comp. Gen. 163; 30 id. 246; 32 id. 454; for travel on official business under 35 id. 354; B-131371, July 17, 1957.) agency orders when reimbursement is (3) An activity shall ordinarily be proscribed by Decision B-128527 of the considered to be in the course of or in Comptroller General dated March 7, connection with an employee's official 1967. (Requirements applicable to De- responsibilities if it is performed as a partment of Commerce employees are set result of an invitation or request which forth in Department of Commerce Ad- is addressed to the Department or a comministrative Order 203-9.)

ponent thereof, or which is addressed to

an employee at his office at the Depart$ 0.735–12 Outside employment or

ment, or which there is reason to believe other activity.

is extended partly because of the official (a) Incompatible outside employment position of the employee concerned. or other outside activity. An employee (When in doubt, it may be asked whether shall not engage in outside employment it is likely that the invitation would have or other outside activity not compatible been received if the recipient were not (1) with the full and proper discharge of associated with the Department.) the duties and responsibilities of his Whether an employee is on leave while Government employment, (ii) with the performing an activity shall be conpolicies or interests of the Department, sidered irrelevant in determining or (iii) with the maintenance of the whether an activity is performed in the highest standards of ethical and moral course of or in connection with the emconduct. Incompatible activities include ployee's official responsibilities. but are not limited to:

(4) Acceptance of a gift or bequest (1) Acceptance of a fee, compensation, on behalf of the Department shall be gift, payment of expense, or any other made in accordance with Department thing of monetary value in circum- Order 3 and Administrative Order 203-9. stances in which acceptance may result (c) Teaching, lecturing, and writing. in, or create the appearance of, a conflict Employees are encouraged to engage in of interest;

teaching, lecturing, and writing that is (2) Outside employment which tends not prohibited by law, Executive Order to impair the employee's mental or 11222, 5 CFR Part 735, or the regulations physical capacity to perform his Gov- in this part and Administrative Order ernment duties and responsibilities in 201-4, "Writing for Outside Publication,” an acceptable manner;

subject to the following conditions: (3) Employment with any foreign (1) An employee shall not, either for government, corporation, partnership, or without compensation, engage in Instrumentality, or individual unless au- teaching, lecturing, or writing, including thorized by the Department;

teaching, lecturing, or writing for the (4) Employment by, or service ren- purpose of the special preparation of a dered under contract with, any of the person or class of persons for an exampersons listed in $ 0.735–11(a);

ination of the Civil Service Commission (5) Receipt by an employee, other or the Board of Examiners for the than a special Government employee, of Foreign Service, that depends on information obtained as a result of his granting of subsidies, the fixing of rates, Government employment, except when or the issuance of valuable permits or that information has been made avail- certificates, or in any investigation or able to the general public or will be made prosecution, or in the transaction of any available on request, or when the Assist- other official business, which affects ant Secretary for Administration or his chiefly a person (1) by whom he has been designee gives written authorization for employed or with whom he has had any the use of nonpublic information on the economic interest within the preceding 2 basis that the use is in the public interest. years, or (2) with whom he has any eco

(2) No employee shall receive com- nomic interest or any pending negotiapensation or anything of monetary value tions concerning a prospective economic for any consultation, lecture, discussion, interest, except with express prior auwriting, or appearance, the subject mat- thorization as provided for in Subpart G ter of which is devoted substantially to of this part. the responsibilities, programs, or opera

(c) This section does not preclude an tions of the Department of Commerce, employee from having a financial interor which draws substantially on official est or engaging in financial transactions data or ideas which have not become to the same extent as a private citizen not part of the body of public information. employed by the Government so long as As used in this subparagraph, “the body it is not prohibited by law, Executive of public information” shall mean infor- order, Civil Service regulations (5 CFR mation which has been disseminated Part 735), or regulations in this part. widely among segments of the public

$ 0.735-14 Use of Government time or which may be affected by or interested

property. in the information concerned, or which is known by such segments of the public

(a) An employee shall not directly or to be freely available on request to a

indirectly use, or allow the use of, GovGovernment agency.

ernment time or property of any kind, (d) [Reserved]

including property leased to the Govern(e) Application of the limitations.

ment, for other than officially approved This section does not preclude an em

activities. ployee from:

(b) Each employee shall protect and (1) [Reserved)

conserve Government property, includ(2) Participation in the activities of

ing equipment, supplies, and other propNational or State political parties not

erty entrusted or issued to him. proscribed by law.

$ 0.735–15 Misuse of employment or (3) Participation in the affairs of, or

information. acceptance of an award for a meritorious

(a) Use of Government employment. public contribution or achievement given

An employee shall not use his Governby a charitable, religious, professional,

ment employment for a purpose that is, social, fraternal, nonprofit educational and recreational, public service, or civic

or gives the appearance of being, moti

vated by the desire for private gain for organization.

himself or another person, particularly (32 F.R. 15222, Nov. 2, 1967, as amended at

one with whom he has family, business, 33 F.R. 9735, July 6, 1968)

or financial ties. $ 0.735-13 Financial interests.

(b) Use of inside information. For (a) An employee shall not:

the purpose of furthering a private in(1) Have a direct or indirect financial

terest, an employee shall not, except as interest that conflicts substantially, or

provided in $ 0.735–12(c), directly or inappears to conflict substantially, with his

directly use, or allow the use of, inforGovernment duties and responsibilities;

mation which has been or has the ap

pearance of having or

been obtained (2) Engage in, directly or indirectly, a

through or in connection writh his Govfinancial transaction as a result of, or

ernment employment and which has not primarily relying on, information ob

been made available to the general tained through his Government employ

public. ment.

(c) Coercion. An employee shall not (b) No employee shall participate in

use his Government employment to any manner, on behalf of the United coerce, or give the appearance of coercStates, in the negotiation of contracts, ing, a person to provide financial benefit the making of loans, and grants, the to himself or another person, particu

larly one with whom he has family, busi- ganizational support or for benefit or ness, or financial ties.

welfare funds for their own members) (d) Disclosure of restricted informa- and similar agency-approved activities, tion. No employee shall divulge re

$ 0.735-18 General conduct prejudicial stricted commercial or economic Infor

to the Government. mation, or restricted information concerning the personnel or operations

(a) General policy. Officers and emof any Government agency, or release

ployees of the Federal Government are any such information in advance of the servants of the people. Because of this, time prescribed for its authorized release.

their conduct must, in many instances, (e) Discrimination. No employee,

be subject to more restrictions and to acting in his official capacity, shall, di

higher standards than may be the case rectly or indirectly, authorize, permit,

in certain private employments. They or participate in any act or course of

are expected to conduct themselves in a conduct which, on the ground of race,

manner which will reflect favorably upon color, creed, national origin, or sex, ex

their employer. Although the Governcludes from participation, denies any

ment is not particularly interested in the benefit to, or otherwise subjects to dis

private lives of its employees, it does excrimination any person under any pro

pect them to be honest, reliable, trustgram or activity administered or con

worthy, and of good character and repuducted by the Department or one of its

tation. They are expected to be loyal to units, or such employee. (See Depart

the Government, and to the department ment Order 195.)

or agency in which they are employed.

(b) Specific policy. An employee shall $ 0.735–16 Indebtedness.

not engage in criminal, infamous, dis(a) An employee shall pay each just honest, immoral, or notoriously disgracefinancial obligation in a proper and

ful conduct, or other conduct prejudicial timely manner, especially one imposed

to the Government. by law such as Federal, State, or local (c) Regulations applicable to public taxes. For purposes of this section, "a buildings and grounds. Each employee just financial obligation" means one ac

is responsible for knowing and complyknowledged by the employee or reduced

ing with regulations of the General Seryto judgment by a court, and “in a proper

ices Administration and of the Departand timely manner" means in a manner

ment of Commerce applicable to public which, in the view of the Department, buildings and grounds. does not, under the circumstances, reflect

$ 0.735–19 Reporting undue influence adversely on the Government as his

to superiors. employer. (b) In the event of dispute between

Each employee shall report to his an employee and an alleged creditor, this

superior any instance in which another section does not require the Department

person inside or outside the Federal Govto determine the validity or amount of

ernment uses or attempts to use undue the disputed debt.

influence to induce, by reason of his off

cial Government position, former Gov$ 0.735–17 Gambling, betting, and ernment employment, family relationlotteries.

ship, political position, or otherwise, the An employee shall not participate employee to do or omit to do any official while on Government-owned or leased act in derogation of his official duty. property or while on duty for the Gov

Subpart E-Statements of Employernment, in any gambling activity including the operation of a gambling

ment and Financial Interests device, in conducting a lottery or pool, $ 0.735–20 General provisions. in a game for money or property or in

(a) In order to carry out the purpose selling or purchasing a numbers slip or

of this part, certain employees of the Deticket. However, this section does not

partment, specified in or pursuant to this preclude activities (a) necessitated by

part, will be required to submit statean employee's law enforcement duties,

ments of outside employment and finanor (b) under section 3 of Executive Order

cial interests for review designed to 10927 (relating to solicitations conducted

disclose conflicts of interest, apparent by organizations composed of civilian conflicts of interest on the part of ememployees or members of the armed ployees, and other matters within the forces among their own members for or- purview of this part.


(b) When a conflict or apparent conflict of interest on the part of an employee or other question of compliance with the provisions of this part arises and is not resolved at a lower level within the Department, e.g., by appropriate remedial action, the information concerning the matter shall be reported to the Secretary through the counselor for the Department designated in $ 0.735–38.

(c) In the event of a conflict or apparent conflict of interest on the part of an employee or other question of compliance with the provisions of this part, the employee concerned shall be provided an opportunity to explain the matter. After consideration of the conflict or apparent conflict of interest or other question of compliance, and the employee's explanation thereof, appropriate action shall be taken. $ 0.735-21 Form and content of state


(a) Statements of employment and financial interests shall be submitted as far as practicable on one of the following forms, as appropriate:

(1) Form CD-220, “Confidential Statement of Employment and Financial Interests (For Use by Government Employees Other Than Special Government Employees)”; or

(2) Form CD-219, "Confidential Statement of Employment and Financial Interests (For Use by Special Government Employees)."

(b) Each of the foregoing forms shall contain, as a minimum, the information required by the formats prescribed by the Civil Service Commission in the Federal Personnel Manual. Questions on a statement of employment and financial interests that go beyond, or are in greater detail than, those included on the Commission's formats may be included on a statement only with the approval of the Assistant Secretary for Administration and the Commission.

(c) [Reserved]

(d) The employee will not be required to reveal precise amounts of financial interest when such information is not necessary for a proper determination as to whether there is any apparent conflict of interest. $ 0.735-22 Employees required to sub

mit statements. Except as provided in $ 0.735-23, a statement of employment and financial interests shall be submitted by the fol

lowing employees other than special Government employees:

(a) Employees paid at a level of the Executive Schedule in subchapter II of chapter 53 of Title 5, United States Code.

(b) Employees classified at GS-13 or above under section 5332 of Title 5, United States Code, or at a comparable pay level under another authority, who are in positions the basic duties and responsibilities of which are determined by the head of the operating unit concerned to require the incumbent to make a Government decision or to take a Government action in regard to:

(1) Contracting or procurement;

(2) Administering or monitoring grants or subsidies;

(3) Regulating or auditing private or other non-Federal enterprise; or

(4) Other activities where the decision or action has an economic impact on the interests of any non-Federal enterprise.

Each employee who occupies a position in one of the above-listed categories and who is not excluded from the reporting requirement shall be notified that he is subject to the reporting requirement.

(c) The following employees classified at GS-13 or above under section 5332 of Title 5, United States Code, or at a comparable pay level under another authority, not otherwise subject to paragraph (b) of this section:

(1) Employees in grade GS-16 or above, or in comparable or higher positions.

(2) Employees in Schedule C positions.

(3) Employees in hearing examiner or hearing officer positions.

(4) Persons employed as experts, consultants, or advisers.

(5) Employees in positions or categories of positions, regardless of their official title, identified in Appendix B of this part.

(d) Employees classified below GS-13 under section 5332 of Title 5, United States Code, or at a comparable pay level under another authority, who are in positions or categories of positions, regardless of their oficial title, identified in Appendix C to this part.

(e) Appendices B and C.

(1) Appendix B to this part shall be maintained and changes made therein in accordance with the criteria in 5 CFR 735.403(c) and in accordance with the procedure in this paragraph. Appendix C to this part shall be maintained and changes made therein in accordance with the criteria in 5 CFR 735.403(d) and in

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