(2) Provost marshal or base police reports of traffic accidents. Local commanders are authorized to release copies of tra fic accident investigative reports where service personnel are not involved and where no Government vehicle is involved, provided the interests of the United States will not be prejudiced thereby. Release may be made to any properly interested party or to his authorized representative. If it appears that the interests of the United States may be involved, the request shall be referred to the appropriate district judge advocate, or the area coordinator, or the Judge Advocate General. (Charges will be made in accordance with the schedule of fees published in the Navy Comptroller Manual, paragraph 035887 (minimum fee $3). Fees collected will be credited as set forth in the Navy Comptroller Manual, paragraph 043145.)

(b) OGC matters. The General Counsel, Deputy General Counsel, and Assistant to the General Counsel for litigation matters have been designated to act for the Secretary of the Navy in releasing or producing, and authorizing the release or production of official records or copies thereof in matters within the assigned responsibilities of the Office of the General Counsel. Such responsibilities are outlined in § 720.25(c).

(c) Security matters. For information on the production of records involving classified matter, whether or not litigation is involved, see OPNA VINST 5510.1 series, Department of the Navy Security Manual for Classified Information, article 0922.3.

(d) Confidential nature of military personnel records. Officer and enlisted personnel records are deemed confidential. Such records may be released only to persons properly and directly concerned, including the serviceman himself, and personal representatives of the serviceman (e.g., executors, guardians, etc.) who present proper proof thereof, or in accordance with § 720.30(a) and (b).

(e) How to address requests for military medical and other personnel records. The serviceman or personal representatives may obtain access to the health and medical records of both Navy and Marine Corps personnel by

applying to the Chief of the Bureau of Medicine and Surgery, Navy Department, Washington, D.C. 20360. Applications for Navy and Marine Corps personnel records should be addressed to the Chief of Naval Personnel, Navy Department, Washington, D.C. 20370, or to the Commandant of the Marine Corps, Washington, D.C. 20380. AppliIcations may be made in person or in writing.

§ 720.32 Certificates of full faith and credit.

The Judge Advocate General, the Deputy Judge Advocate General, or any Assistant Judge Advocate General is authorized to execute certificates of full faith and credit certifying the signatures and authority of officers of the Department of the Navy.

Subpart D-Liaison With the Department of Justice

§ 720.40 Litigation reports.

In all lawsuits involving the Department of the Navy, other than those purely contractual in nature, the litigation report to the Department of Justice will be prepared in the Office of the Judge Advocate General unless authority to prepare the report is specifically delegated to a field activity.

§ 720.41 Liaison with U.S. Attorney.

In matters other than those which are purely contractual in nature, liaison with local U.S. Attorneys will be maintained through the Judge Advocate General, except for the initial report required by § 720.14 in habeas corpus cases, unless specific authority has been delegated to a field activity.

Sec.

721.10 Statements of employment-retired Regular officers.

721.11 Privacy Act considerations.

AUTHORITY: 5 U.S.C. 301; 10 U.S.C. 133, 5031; E.O. No. 11222, May 8, 1965; 5 CFR Part 735; 32 CFR Part 40.

SOURCE: 41 FR 29809, July 20, 1976, unless otherwise noted.

§ 721.1 Purpose.

Part 721 implements and supplements Part 40 of this title in prescribing: (a) Required standards of ethical conduct governing all personnel of the Department of the Navy, (b) related requirements applicable to all personnel of certain categories in the Department of the Navy, (c) amplifying policies for the guidance of personnel in interpreting and executing the standards of conduct and related requirements, and (d) responsibilities and procedures for monitoring and enforcing compliance with the standards of conduct and related requirements within the Department of the Navy. § 721.3 Scope and effect.

defined.

(a) "Naval Personnel" Unless the context indicates otherwise, the term "naval personnel" is used in this part to mean all civilian officers and employees, including special government employees, and all active-duty military personnel of the Department of the Navy, including personnel of nonappropriated fund activities.

(b) Former and retired personnel. Where specified in this part and Part 40 the provisions are also applicable to former and retired personnel of the Department of the Navy.

(c) Violations. The regulations prescribed in §721.5 and the provisions of Part 40, which are incorporated by reference therein, are intended to constitute legal bases for disciplinary or punitive proceedings in appropriate cases. Noncompliance with other provisions of this part and Part 40 are expected to be corrected by timely and appropriate administrative measures. § 721.4 General policies governing the conduct of naval personnel.

(a) Conduct prejudicial to the Government. Naval personnel will not engage in criminal, infamous, dishon

est, immoral, or disgraceful conduct, or other conduct prejudicial to the Government. Moreover, naval personnel will avoid any action-whether or not specifically prohibited by this part or Part 40-which might result in, or create the appearance of:

(1) Using a government position for private gain,

(2) Giving preferential treatment to any person,

(3) Impeding government efficiency or economy,

(4) Losing complete independence or impartiality,

(5) Making a government decision outside official channels, or

(6) Adversely affecting the confidence of the public in the integrity of the Government.

(b) Standards of personal judgment. All naval personnel will adhere strictly to the standards of conduct and related requirements prescribed in this part, including Part 40. In some instances, standards are imposed which require the exercise of personal judgment. Naval personnel must consider each such instance carefully and be prepared to account for the manner in which the judgment is exercised. This is particularly true in situations which involve acceptance of hospitality or favors from persons or entities who do, or seek to do, business with the Department of the Navy.

(c) Dealings with business and industry representatives. Persons who represent the Government in business dealings with representatives of industry have positions of trust and grave responsibility which require them to observe the highest ethical standards. Practices which may be accepted in the private business world are not necessarily acceptable for naval personnel. Acceptance of favors, gratuities, or entertainment (no matter how innocently tendered or received) from those who have or seek business dealings with the Department of the Navy may be a source of embarassment to the department and to the naval personnel involved, may affect the objective judgment of the recipient, and may impair public confidence in the integrity of business relations between the department and industry.

(d) Acceptance of gratuities. No person will allow himself to be placed in a position in which a conflict of interests might arise or might justifiably be suspected. Such a conflict of interests may arise or appear to arise by reason of the acceptance of favors, gratuities, or entertainment of any kind, or by any other action which could influence or be reasonably interpreted as influencing the strict impartiality that must prevail in all business relationships involving the Government. Favors, gratuities, or entertainment bestowed upon members of the immediate households or naval personnel must be considered in the same light as those bestowed upon naval personnel. It is emphasized that prohibited conflicts and apparent conflicts of interests can sometimes arise even from relationships and transactions which the personnel concerned perceive as inconsequential. Where there is a doubt as to the propriety of accepting favors, gratuities, or entertainment, or of attending functions or accepting other invitations of a hospitable nature, naval personnel will refrain therefrom.

(e) Preferential treatment. Special treatment must not be accorded to particular individuals or firms unless equivalent treatment is also accorded to other individuals or firms justifiably entitled thereto.

(f) Acquiring conflicting financial interests. Notwithstanding the fact that they may have filed confidential statements of employment and financial interests (DD Form 1555 or 1555-1) pursuant to this part and Part 40, 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, or members of their immediate households, are associated as employees, officers, owners, directors, members, trustees, partners, advisers, or consultants;

(2) With which they, or members of their immediate households, are nego

tiating or have arrangements for prospective employment; or

(3) In which they, or members of their immediate households, have interests through ownership of stock, stock options, bonds, securities or other financial arrangements, such as trusts, or through participation in pension or retirement plans.

(g) Reporting suspected violations. Attention is directed to § 40.13 concerning the duty of naval personnel to make prompt reports of violations of statutes, regulations, or policies set forth in Part 40 and supplemented in this part.

(h) Financial responsibility of personnel. Attention is directed to § 40.11 concerning the duty of naval personnel to pay their just financial obligations.

§ 721.5 Regulations governing the conduct of naval personnel.

(a) Conflicts of interests. Naval personnel are prohibited from engaging in any private business or professional activity, or from having any direct or indirect financial interest, which would place them in a position where there is a conflict between their private interests and the public interests of the United States related to their naval duties and responsibilities.

(b) Inside information. Naval personnel are prohibited from engaging in any private business or professional activity, of from entering into any financial transaction, which involves the direct or indirect use of inside information gained through a naval position to further a private interest or obtain a private gain for themselves or other persons or entities. For the purpose of this prohibition, “inside information" means information obtained as a result of government employment which has not become a part of the body of public information.

(c) Improperly influencing decisions. Naval personnel are prohibited from using their naval positions to induce or coerce any person or entity (including a subordinate) to provide any financial benefit to themselves or another person or entity with which they have family, business, or financial ties. This does not, however, prohibit personnel from seeking rights or

privileges to which they may be entitled by law or regulation.

(d) Dealing with present and former personnel. Naval personnel are prohibited from knowingly transacting government business with military or civilian personnel or former military or civilian personnel of the Government whose participation in the transaction is in violation of a statute or the regulations or policies set forth in this part or Part 40.

(e) Commercial soliciting by activeduty military personnel. Attention is directed to paragraph (d) of § 40.3 which prohibits active-duty military personnel from engaging in certain commercial solicitation and sales practices.

(f) Gratuities. (1) Except as authorized in paragraph (b) of § 40.5, naval personnel are prohibited from accepting any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value either directly or indirectly from any person who or entity which:

(i) Is engaged or is endeavoring to engage in procurement activities or business or financial transactions of any sort with an agency of the Department of Defense,

(ii) Conducts operations or activities that are regulated by any agency of the Department of Defense, or

(iii) Has interests that may be substantially affected by the performance or nonperformance of the official duty of the naval personnel concerned.

(2) For the purpose of this paragraph, gifts, gratuities, favors, entertainment, loans, or other things of monetary value bestowed upon members of the immediate families of naval personnel shall be considered to have been bestowed upon the naval personnel themselves.

(g) Speaking, lecturing, writing, and appearance as expert witness.

(1) Naval personnel are prohibited from accepting fees, reimbursements, or honoraria for speaking, lecturing, or writing, or for appearing as expert witnesses before state agencies, except in instances where all the following conditions exist:

(i) Acceptance of the payment from the person or entity tendering or fund

ing it would not be prohibited under the preceding paragraph;

(ii) The individual presents himself as a private citizen and not in an official capacity;

(iii) Such private activities do not interfere with the individual's official duties; and

(iv) The subject of the individual's appearance or writing is not connected with his official duties, does not involve materials which his official duties require him to prepare or provide, and does not depend on information obtained as a result of government employment, except when that information has been published or is available upon request, or when prior specific authorization is given by the Under Secretary of the Navy.

(2) This paragraph does not, however, prohibit acceptance of fees, reimbursements, or honoraria where authorized for endorsement to the Treasurer of the United States as reimbursement for the federal compensation of personnel performing services while in a duty status.

(3) Unless there is a definite Executive Branch, Department of Defense, or Department of the Navy position on a matter addressed in the appearance or writing and the individual has been authorized by appropriate superior authorities to present that position officially, he shall expressly present his views on that matter as his own and not as those of the Department of the Navy or Department of Defense.

(h) Contributions or presents to superiors. Attention is directed to § 40.6, which prohibits all naval personnel from participating in gift transactions from subordinates to superiors, except in certain circumstances.

(1) Use of government facilities, property and manpower.

(i) Except as authorized by competent authority for official government business, naval personnel are prohibited from using, directly or indirectly, or from approving the use of:

(A) Government property of any kind, including property leased to the government;

(B) Government facilities of any kind; and

(C) Government manpower, such as stenographic and typing assistance,

and mimeograph and chauffeur services.

(2) This paragraph is not intended to preclude the use of government facilities for activities which would further military-community relations, provided the activities do not interfere with military missions.

(j) Use of civilian and military titles in connection with commercial enterprises. Attention is directed to § 40.8, which prohibits all naval personnel from using their civilian and military titles or positions in connection with commercial enterprises or products.

(k) Outside employment. Attention is directed to § 40.9, which prohibits naval personnel from engaging in certain outside employment and activities.

(1) Gambling, betting, and lotteries. Attention is directed to § 40.10 which prohibits naval personnel from engaging in gambling, betting, and lottery activities while on duty or on government property.

(m) Statements of employment and financial interests. Naval personnel who are required under § 40.14 and 8721.9 to file confidential statements of employment and financial interests (DD Form 1555 or 1555-1) shall file them at the times and in the manner prescribed in § 721.9.

(n) Retired officers' statement of employment. All retired Regular Navy and Marine Corps officers shall file statements of employment (DD Form 1357) within 30 days after retirement. Each such officer shall immediately file a new statement whenever the information in the previous statement is no longer accurate. Statements of employment (DD Form 1357) shall be filed with the appropriate official specified in § 721.10.

§ 721.7 Related directives.

In addition to the provisions of Part 721 and Part 40, attention is directed to the following related matters governed by other directives:

(a) Membership in private associations and organizations. 32 CFR Part 91 prescribes policies governing participation of naval personnel in activities of private associations and organizations. It is emphasized that naval personnel who are members or officers

of nongovernmental associations or organizations must avoid activities on behalf of the associations or organizations that are incompatible with their official government positions.

(b) Reports of defense related employment. 32 CFR 722 implements requirements for submission of Reports of DoD and Defense Related Employment (DD Form 1787) by certain categories of present naval personnel formerly employed by defense contractors, and by certain categories of former or retired naval personnel presently employed by defense contractors. The reports prescribed in 32 CFR Part 722 are distinct from the reports or statements prescribed in this part, and failure to file them when required may subject individuals to criminal penalties.

(c) Acceptance of gifts from foreign governments. Chapter 7 of Secretary of the Navy Instruction 1659.1 series (see 32 CFR Part 733) prescribes restrictions applicable to the acceptance by naval personnel of gifts from foreign states.

(d) Political activities. Other regulations prescribe restrictions on political activities of naval personnel.

(e) General responsibilities of naval personnel. Subpart J of 32 CFR Part 700 prescribes general regulations governing the rights and responsibilities of naval personnel. If any provision of naval personnel. If any provision of this part or Part 40 is found to conflict with a provision of Subpart J of Part 700, the latter shall be controlling.

§ 721.8 Responsibilities for action.

(a) Under Secretary of the Navy. The Under Secretary of the Navy is assigned overall responsibility for action relating to standards of conduct of naval personnel. Pursuant to § 40.12(c)(2) (ii) and (iii), § 40.14(c), and § 40.14(f), he shall act as the designee of the Secretary, with power to redelegate, for the purposes of: (1) Resolution of conflicts or apparent conflicts in statements of employment and financial interests not resolved at lower echelons, (2) exclusion from the requirement to file statements of employment and financial interests, and (3) extensions of time in excess of 30