(a) The Under Secretary of the Navy is assigned overall responsibility for action relating to standards of conduct of naval personnel. Pursuant to §§ 40.735-12 (c) (2) (ii) and (iii) and 40.735-14 (c) and (f) of this title, the Under Secretary of the Navy shall act as the designee of the Secretary, with the power to redelegate, for the purposes of (1) resolution of conflicts or apparent conflicts in statements of employment and financial interests not already resolved, (2) exclusion from the requirement to file statements of employment and financial interests, and (3) extension of time in excess of 30 days for the submission of such statements.

(b) The Judge Advocate General and the General Counsel of the Navy are designated as the counselors for the Department of the Navy, pursuant to § 40.735-12 (c) (1) of this title. They shall provide legal advice, within their respective areas of jurisdiction, with regard to any questions which may arise under this part and Part 40 of this title. The General Counsel shall be consulted concerning statements submitted by officers and employees whose duties include, to a significant extent,

(1) Those described in § 40.735-14(a) (4) of this title.

(2) Property disposition, or

(3) Other matters under the assigned Jurisdiction of the General Counsel (SecNav Instruction 5430.25 series; also outlined in the pertinent paragraph of the U.S. Government Organization Manual; e.g., page 179 of the 1967-68 edition). The Judge Advocate General shall be consulted with regard to statements submitted by all other officers and employees.

(c) The following are designated as deputy counselors pursuant to § 40.73512(b) of this title and shall be responsible for providing advice and assistance on matters relating to conduct and conflicts of interest and for providing legal review of statements of employment and financial interests which are referred to them:

(1) Within the cognizance of the General Counsel, and in their respective commands or organizations:

Deputy General Counsel (Property). Assistant to the General Counsel (Litigation and Legislation).

Counsel for the Commandant of the Marine Corps.

Counsel for the Systems and Facilities Engineering Commands.

Counsel for the Comptroller of the Navy. Counsel for the Bureau of Naval Personnel. Counsel for the Military Sea Transportation Service.

Counsel for the Office of Naval Research. Counsel in charge of OGC (Office of the General Counsel) Field or Branch Offices.

(2) Within the cognizance of the Judge Advocate General, and in their respective commands or organizations:

Deputy and Assistant Judge Advocate General.

Officer and civilian attorneys under the supervision of the Judge Advocate General and assigned to the commands, bureaus, and offices of the Navy Department located at the seat of the Government, other than the Office of the Judge Advocate General.

District Legal Officers.

Staff or Force Legal Officers of area commands of the Navy and Marine Corps.

Staff or Force Legal Officers on the staffs of all other commands having general courtmartial convening authority.

Other deputy counselors may be designated by the General Counsel or by the Judge Advocate General as required.

(d) Each officer or civilian employee of the Navy or Marine Corps required by 40.735-14 of this title to submit a statement of employment and financial interests shall forward his statement in the prescribed form to the superior officer having responsibility for signing his Fitness Report or to the superior official having responsibility for reviewing his Performance Rating. (The term "appropriate supervisor" is used in this section to refer to such superior officer or official, as appropriate.) In each such case, the appropriate supervisor shall evaluate the statement, in accordance with the standards provided by Part 40 of this title, to determine whether a conflict or apparent conflict of interests is disclosed. He shall append his written evaluation to the statement of the officer or employee and shall forward the statement and his evaluation thereof to the cognizant legal officer or civilian attorney designated as a deputy counselor under paragraph (c) of this section for legal review in accordance with § 40.735-12(b) of this title. Whenever practicable, deputy counselors should provide advice and assistance in their respective areas of responsibility as defined in paragraph (b) of this section. Where this is impracticable, however, due to such factors as physical inaccessibility or uncertainty

of jurisdiction, they should render all possible assistance whenever consulted, and then seek to direct the matter into the proper area of responsibility. I both the appropriate supervisor and the deputy counselor agree that the statement discloses no conflict or apparent conflict of interests, the statement shall be filled in the office of the appropriate supervisor. When either the appropriate supervisor or the deputy counselor believes that a statement of employment and financial interests discloses a conflict or apparent conflict of interests, the officer or employee concerned shall be afforded an opportunity to explain the conflict or apparent conflict in writing. If both the appropriate supervisor and the deputy counselor are satisfied that there is no conflict or apparent conflict, the matter shall be filed as provided in this paragraph. Otherwise a copy of the record shall be retained in the office of the appropriate supervisor and the entire original record shall be forwarded via the commanding officer or head of the unit, who shall place his comments and recommendation thereon and forward directly:

(1) To the Chief of Naval Personnel, in the case of a naval officer;

(2) To the Commandant of the Marine Corps, in the case of an officer of the Marine Corps; or

(3) To the Director, Civilian Manpower Management, in the case of a civilian employee.

The departmental official thus receiving the record shall refer it to a cognizant deputy counselor for legal review and advice. Cases which cannot be resolved by the Chief of Naval Personnel, the Commandant of the Marine Corps, or the Director, Civilian Manpower Management, as appropriate, shall be forwarded to the Under Secretary of the Navy, via the cognizant departmental counselor, for final resolution. Cases referred to the Department for review shall, when finally resolved, be filled in the Bureau of Naval Personnel, Marine Corps Headquarters, or the Office of the Director, Civilian Manpower Management, as appropriate, with information to the originating activity concerning the ultimate disposition of the case.

(e) Care shall be exercised, in the handling of statements of employment and financial interests, that they will be seen only by personnel on a need-toknow basis.

20-106-74- -29

(f) In connection with each Fitness Report or Performance Rating with respect to officers or civilian employees described in § 40.735-14(a) (3) and (4) of this title, the appropriate supervisor shall review the billet or position as required by § 40.735-14(b) of this title, and shall determine whether the duties and responsibilities of the position are such as to require the individual to file a statement of employment and financial interests. He shall cause his determination to be recorded in the individual's billet or position description and in the individual's local personnel record. Such determinations will be reviewed at least annually. An officer or employee who is transferred from one position to another within the Department of the Navy shall be responsible for furnishing a current statement to his new appropriate supervisor if he is required to file such a statement in that position. Any individual who believes that his position has been improperly included in category (3) or (4) may request a review of the decision requiring him to file a statement through the established grievance or complaint procedure of the Department.

(g) For the purpose of § 40.735-14(a) (4) (i) of this title entitled "Contracting or Procurement," reports will be required only from persons who sign contracts or those, at higher levels, who have overall responsibility for the entire transaction. This includes but is not limited to heads of procuring activities, directors of contracting divisions, personnel engaged in business clearance of contracts, and others performing comparable functions.

(h) Each officer and employee who previously filed a statement of employment and financial interest and who, pursuant to Parts 40 and 721 of this title, is still required so to do, shall file an annual supplementary statement prior to January 31, 1968, reporting, as of September 30, 1967, the information referred to in § 40.735-14 (i) of this title. Similarly, personnel required for the first time to file statements of employment and financial interest shall do so prior to January 31, 1968, as of September 30, 1967. Thereafter, changes or additions will be reported in a supplementary statement to be filed on June 30 of each year.

(i) In clarification of the instructions on the reverse side of the Confidential Statement of Employment and Financial Interests (DD Forms 1555 and

1555-1) concerning the reporting of financial interests, each reporting officer or employee must include information with respect to employment of his spouse, minor children, or blood relations who are full-time residents of his household. He is not required to report ownership of personal savings or checking accounts in financial institutions or life or property insurance policies even though they provide for dividends or cash value.

(j) With respect to the disqualification procedure set forth in § 40.73515(a) (4) of this title, the official in the Department of the Navy authorized to make a determination pursuant to title 18, United States Code, section 208(b), shall be the head of the command, bureau, office, or activity to which the officer or employee concerned is assigned for duty. The same official is designated as the official to whom reports concerning acceptance of gratuities shall be made pursuant to § 40.735-5(b) (4) of this title. (k) The Comptroller of the Navy shall advise all Regular Navy retired officer personnel of the continuing requirement for submitting a Statement of Employment and provide DD Form 1357 for that purpose. The Commandant of the Marine Corps shall provide similar assistance to Regular Marine Corps retired officer personnel.

(1) The Chief of Naval Personnel or the Commandant of the Marine Corps, as appropriate, shall provide all Regular officer personnel retiring hereafter with instructions for filing DD Form 1357 within 30 days after retiring and as their employment status changes.

(m) The Comptroller of the Navy or the Commandant of the Marine Corps, as appropriate, is responsible for review of all Statements of Employment filed by retired officers of the Regular Navy and Marine Corps to insure compliance with applicable laws and regulations.

(n) The Director, Civilian Manpower Management, shall incorporate the provisons of Part 40 of this title concerning civilian employees in appropriate Navy Civilian Personnel Instructions.

(0) All chiefs and heads of commands, bureaus, and offices, and all commanding officers, shall disseminate this part within their organizations or commands, shall insure that naval personnel within their organizations or commands are familiar with its provisions, and shall arrange for informing new personnel of its provi

sions. Periodically, they shall utilize the opportunity afforded by staff meetings to direct attention to the policies set forth in this part, and they shall bring these policies to the attention of all personnel at least semiannually.

(p) The Chief of Naval Material is responsible for bringing the contents of this part to the attention of the principal officer of each contractor doing significant business with the Navy. Chiefs and heads of commands, bureaus, and offices, commanding officers, and other senior officials shall periodically utilize the opportunity afforded by conferences with representatives of industry to direct attention to the policies set forth in this part.

(q) Corrective measures, including disciplinary action when appropriate, shall be taken whenever it is determined that there has been a violation of this part.

[31 F.R. 9271, July 7, 1966, as amended at 32 F.R. 20719, Dec. 22, 1967; 35 FR. 10006, June 18, 1970]

§ 722.2 Reports of DoD and Defense Related Employment (DD Form 1787); submission of.

Individuals required by Public Law 91121, section 410 (November 19, 1969) and § 166.4(e) of this title, to submit reports of DoD and Defense Related Employment (DD Form 1787) to the Secretary of the Navy shall submit such reports in duplicate, not later than October 15 following the close of each fiscal year, to:

(a) If former or retired Navy officers: The Chief of Naval Personnel (Pers-Of), Navy Department, Washington, D.C. 20370.

(b) If former or retired Marine Corps officers: The Commandant of the Marine Corps (Code DNC), Navy Department, Washington, D.C. 20380.

(c) If present civilian employees: The Director of Civilian Manpower Management (Administrative Office (01B)), Navy Department, Washington, D.C. 20390, via the commanding officer or head of the activity in which they are employed.

(d) If former civilian employees: The Director of Civilian Manpower Management (Administrative Office (01B)), Navy Department, Washington, D.C. 20390.

(a) The Chief of Naval Personnel or the Commandant of the Marine Corps, as appropriate, shall include notification, as prescribed in § 166.5 (c) (1) of this title, in separation or retirement counseling procedures, and in appropriate publications directed at individuals in the category described in § 166.4 (a) of this title.

(b) All chiefs and heads of commands, bureaus, and offices, and all commanding officers, shall direct attention within their organizations or commands to the requirement of Public Law 91-121 and insure that all civilian personnel within their organizations or commands, who are subject to this requirement, are familiar with the provisions of this part. Further, they shall (1) include notification, as prescribed in § 166.5(c) (1) of this title, in entrance orientation and exit interview or separation counseling procedures; and (2) notify, as prescribed in § 166.5 (c) (1) of this title, all civilian personnel who become subject to the requirement of Public Law 91-121 by virtue of a promotion or step increase after initial employment.

(c) The Chief of Naval Material shall bring the contents of this part to the attention of the principal officer of each contractor identified, pursuant to § 166.5 (a) of this title, doing business with the Department of the Navy and request that such officer inform all former or retired Naval Establishment personnel within his organization of the requirement of Public Law 91-121 and the provisions of this part.

(d) The Chief of Naval Personnel, the Commandant of the Marine Corps, and the Director of Civilian Manpower Management, as provided in § 722.2, shall receive for the Secretary of the Navy all reports required by Public Law 91-121 and § 166.4 (e) of this title, and review all such reports in the manner prescribed by § 166.7(a) of this title. Not later than November 15 of each year they shall each forward to the Administrative Officer of the Navy Department the forms received by them and reports based upon them prepared in the manner specified in § 166.7 (b) of this title.

(e) Not later than November 21 of each year the Administrative Officer of the Navy Department shall forward to the Assistant Secretary of the Navy (Manpower and Reserve Affairs) the forms and report specified in § 166.7(b) of this title.

(f) Not later than November 30 of each year the Assistant Secretary of the Navy (Manpower and Reserve Affairs) shall forward to the Assistant Secretary of Defense (Manpower and Reserve Affairs) the forms and report specified in § 166.7(b) of this title.

(g) The Judge Advocate General of the Navy and the General Counsel of the Navy shall provide, within their respective areas of jurisdiction, legal advice regarding questions which may arise under this part. Additionally, the deputy counselors designated in § 721.5(c) of this chapter shall provide advice in local areas.

§ 722.4 Availability of forms.

Supplies of DD Form 1787 (Report of DoD and Defense Related Employment) are available in Forms and Publication Segment of the Navy Supply System under Stock No. 0102-025-5090. Individuals required to submit reports should obtain forms from local commands or organiza

AUTHORITY: The provisions of this Part 723 issued under secs. 1552, 5031, 70A Stat. 116, 278, as amended, sec. 301, 80 Stat. 379; 5 U.S.C. 301, 10 U.S.C. 1552, 5031.

§ 723.1 General provisions.

(a) Purpose. This part establishes procedures for making application, and the consideration of applications, for the correction of Navy and Marine Corps records (referred to in this part as naval records) by the Secretary of the Navy acting through the Board for Correction of Naval Records (hereinafter referred to in this part as the Board).

(b) Authority. Section 131 of the Legislative Reorganization Act of 1946 (2 U.S.C. 190g) provides that no private bill or resolution, and no amendment to any bill or resolution, authorizing or directing the correction of military or naval records, shall be received or considered in either the Senate or the House of Representatives. Section 207 of the same Act, as amended, and as re-enacted and codified in 10 U.S.C. 1552, provides:

(a) The Secretary of a military department, under procedures established by him and approved by the Secretary of Defense, and acting through boards of civilians of the executive part of that military department, may correct any military record of that department when he considers it necessary to correct an error or remove an injustice. Under procedures prescribed by him, the Secretary of the Treasury may in the same manner correct any military record of the Coast Guard. Except when procured by fraud, a correction under this section is final and conclusive on all officers of the United States.

(b) No correction may be made under subsection (a) unless the claimant or his heir or legal representative files a request therefor before October 26, 1961, or within three years after he discovers the error or injustice, whichever is later. However, a board established under subsection (a) may excuse a failure to file within three years after discovery if it finds it to be in the interest of justice.

(c) The department concerned may pay, from applicable current appropriations, & claim for the loss of pay, allowances, compensation, emoluments, or other pecuniary benefits, or for the repayment of a fine or forfeiture, if, as a result of correcting a record under this section, the amount is found to be due the claimant on account of his or another's service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as the case may be. If the claimant is dead, the money shall be paid, upon demand, to his legal representative. However, if no demand for payment is made by a legal representative, the money shall be paid

(1) To the surviving spouse, heir, or beneficiaries, in the order prescribed by the law applicable to that kind of payment;

(2) If there is no such law covering order of payment, in the order set forth in section 2771 of this title; or

(3) As otherwise prescribed by the law applicable to that kind of payment. A claimant's acceptance of a settlement under this section fully satisfies the claim concerned. This section does not authorize the payment of any claim compensated by private law before October 25, 1951.

(d) Applicable current appropriations are available to continue the pay, allowances, compensation, emoluments, and other pecuniary benefits of any person who was pald under subsection (c), and who, because of the correction of his military record, is entitled to those benefits, but for not longer than one year after the date when his record is corrected under this section if he is not reenlisted in, or appointed or reappointed to, the grade to which those payments relate. Without regard to qualifications for reenlistment, or appointment or reappointment, the Secretary concerned may reenlist a person in, or appoint or reappoint him to, the grade to which payments under this section relate.

(e) No payment may be made under this section for a benefit to which the claimant might later become entitled under the laws and regulations administered by the Administrator of Veterans' Affairs.

[17 FR 10243, Nov. 11, 1952, as amended at 26 FR 12121, Dec. 19, 1961]

§ 723.2 Establishment, function, and jurisdiction of the Board.

(a) Establishment and composition. Pursuant to the foregoing statutory au