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tions of the Department of Commerce, or which draws substantially on oficial data or ideas which have not become part of the body of public information. As used in this subparagraph, “the body of public information” shall mean information which has been disseminated widely among segments of the public which may be affected by or interested in the information concerned, or which is known by such segments of the public to be freely available on request to & Government agency.

(d) State or local government employment. An employee may not engage in outside employment under a State or local government except in accordance with Part 734 of the Civil Service regulations (5 CFR Part 734) and Department of Commerce Administrative Order 202– 734.

(e) Application of the limitations. This section does not preclude an employee from:

(1) [Reserved]

(2) Participation in the activities of National or State political parties not proscribed by law.

(3) Participation in the affairs of, or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization. $ 0.735–13 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, financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(b) No employee shall participate in any manner, on behalf of the United States, in the negotiation of contracts, the making of loans, and grants, the granting of subsidies, the fixing of rates, or the issuance of valuable permits or certificates, or in any investigation or prosecution, or in the transaction of any other official business, which affects chiefly a person (1) by whom he has been employed or with whom he has had any economic interest within the preceding 2 years, or (2) with whom he has any economic interest or any pending negotia

tions concerning a prospective economic interest, except with express prior authorization as provided for in Subpart G of this part.

(c) 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 law, Executive order, Civil Service regulations (5 CFR Part 735), or regulations in this part. $ 0.735–14 Use of Government time or

property. (a) An employee shall not directly or indirectly use, or allow the use of, Government time or property of any kind, including property leased to the Government, for other than officially approved activities.

(b) Each employee shall protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. $ 0.735–15 Misuse of employment or

information. (a) Use of Government employment. An employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties.

(b) Use of inside information. For the purpose of furthering a private interest, an employee shall not, except as provided in 0.735-12(c), directly or indirectly use, or allow the use of, information which has been or has the appearance of having been obtained through or in connection with his Government employment and which has not been made available to the general public.

(c) Coercion. An employee shall not use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

(d) Disclosure of restricted information. No employee shall divulge restricted commercial or economic Information,

restricted information concerning the personnel or operations of any Government agency, or release any such information in advance of the time prescribed for its authorized release.

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(e) Discrimination. No employee, acting in his official capacity, shall, directly or indirectly, authorize, permit, or participate in any act or course of conduct which, on the ground of race, color, creed, national origin, or sex, excludes from participation, denies any benefit to, or otherwise subjects to discrimination any person under any program or activity administered or conducted by the Department or one of its units, or such employee. (See Department Order 195.) $ 0.735–16 Indebtedness.

(a) An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For purposes of this section, "& just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and “in a proper and timely manner" means in a manner which, in the view of the Department, does not, under the circumstances, reflect adversely on the Government as his employer.

(b) In the event of dispute between an employee and an alleged creditor, this section does not require the Department to determine the validity or amount of the disputed debt. $ 0.735-17 Gambling, betting, and

lotteries, An employee shall not participate while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property or in selling or purchasing a numbers slip or ticket. However, this section does not preclude activities (a) necessitated by an employee's law enforcement duties, or (b) under section 3 of Executive Order 10927 (relating to solicitations conducted by organizations composed of civilian employees or members of the armed forces among their own members for organizational support or for benefit or welfare funds for their own members) and similar agency-approved activities. $ 0.735-18 General conduct prejudicial

to the Government. (a) General policy. Officers and employees of the Federal Government are servants of the people. Because of this, their conduct must, in many instances, be subject to more restrictions and to

higher standards than may be the case in certain private employments. They are expected to conduct themselves in a manner which will reflect favorably upon their employer. Although the Government is not particularly interested in the private lives of its employees, it does expect them to be honest, reliable, trustworthy, and of good character and reputation. They are expected to be loyal to the Government, and to the department or agency in which they are employed.

(b) Specific policy. An employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government.

(c) Regulations applicable to public buildings and grounds. Each employee is responsible for knowing and complying with regulations of the General Seryices Administration and of the Department of Commerce applicable to public buildings and grounds. $ 0.735-19 Reporting undue influence

to superiors. Each employee shall report to his superior any instance in which another person inside or outside the Federal Government uses or attempts to use undue influence to induce, by reason of his official Government position, former Government employment, family relationship, political position, or otherwise, the employee to do or omit to do any official act in derogation of his official duty. Subpart E-Statements of Employ

ment and Financial Interests 8 0.735-20

General provisions. (a) In order to carry out the purpose of this part, certain employees of the Department, specified in or pursuant to this part, will be required to submit statements of outside employment and finan. cial interests for review designed to disclose conflicts of interest, apparent conflicts of interest on the part of employees, and other matters within the 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.

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(c) In the event of a conflict or ap- sponsibilities of which are determined by parent conflict of interest on the part of the head of the operating unit concerned an employee or other question of com- to require the incumbent to make a Govpliance with the provisions of this part, ernment decision or to take a Governthe employee concerned shall be pro- ment action in regard to: vided an opportunity to explain the (1) Contracting or procurement; matter. After consideration of the con- (2) Administering or monitoring flict or apparent confiict of interest or grants or subsidies; other question of compliance, and the (3) Regulating or auditing private or employee's explanation thereof, appro- other non-Federal enterprise; or priate action shall be taken.

(4) Other activities where the decision $ 0.735–21 Form and content of state

or action has an economic impact on the

interests of any non-Federal enterprise. ments.

Each employee who occupies a position (a) Statements of employment and in one of the above-listed categories and financial interests shall be submitted as who is not excluded from the reporting far as practicable on one of the follow

requirement shall be notified that he is ing forms, as appropriate:

subject to the reporting requirement. (1) Form CD-220, “Confidential State

(c) The following employees classified ment of Employment and Financial In- at GS-13 or above under section 5332 of terests (For Use by Government Em- Title 5, United States Code, or at a comployees Other Than Special Govern

parable pay level under another aument Employees)”; or

thority, not otherwise subject to para(2) Form CD-219, “Confidential State- graph (b) of this section: ment of Employment and Financial In- (1) Employees in grade GS-16 or terests (For Use by Special Government above, or in comparable or higher poEmployees).

sitions. (b) Each of the foregoing forms shall (2) Employees in Schedule C positions. contain, as a minimum, the information (3) Employees in hearing examiner or required by the formats prescribed by the hearing officer positions. Civil Service Commission in the Federal (4) Persons employed as experts, conPersonnel Manual. Questions on a state- sultants, or advisers. ment of employment and financial in- (5) Employees in positions or cateterests that go beyond, or are in greater gories of positions, regardless of their detail than, those included on the Com- official title, identified in Appendix B of mission's formats may be included on a this part. statement only with the approval of the (d) Employees classified below GS-13 Assistant Secretary for Administration

under section 5332 of Title 5, United and the Commission.

States Code, or at a comparable pay level (c) [Reserved]

under another authority, who are in po(d) The employee will not be required sitions or categories of positions, regardto reveal precise amounts of financial less of their official title, identified in interest when such information is not Appendix C to this part. necessary for a proper determination as (e) Appendices B and C. to whether there is any apparent conflict (1) Appendix B to this part shall be of interest.

maintained and changes made therein in $ 0.735–22 Employees required to sub

accordance with the criteria in 5 CFR mit statements.

735.403(c) and in accordance with the

procedure in this paragraph. Appendix Except as provided in $ 0.735-23, a

C to this part shall be maintained and statement of employment and financial

changes made therein in accordance with interests shall be submitted by the fol

the criteria in 5 CFR 735.403(d) and in lowing employees other than special accordance with the procedure in this Government employees:

paragraph. (a) Employees paid at a level of the

(2) Heads of operating units and Executive Schedule in subchapter II of heads of offices in the Office of the Secrechapter 53 of Title 5, United States Code.

tary shall, in conformity with the above(b) Employees classified at GS-13 or cited criteria, recommend changes in Apabove under section 5332 of Title 5, pendix B and Appendix C to the AssistUnited States Code, or at a comparable ant Secretary for Administration for pay level under another authority, who approval. Changes in Appendix C shall are in positions the basic duties and re- be submitted, with specific justification,

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to the Civil Service Commission for further prior approval.

(3) Incumbents of positions added to Appendix B or to Appendix C shall become subject to the reporting requirements of this part upon receipt of notification that their position is subject to such requirements. Appendix B and Appendix C shall be republished annually to reflect changes in the lists. $ 0.735–22a Employee's complaint on

filing requirement. An employee shall have an opportunity for review through the Department of Commerce grievance procedure, as provided by Administrative Order 202–770, of a complaint by him that his position has been improperly included under the regulations of the Department as one requiring the submission of a statement of employment and financial interests. $ 0.735–23 Employees not required to

submit statements. (a) Employees in positions that meet the criteria in paragraph (b), (c), or (d) of $ 0.735-22 may be excluded from the reporting requirement when the head of the operating unit concerned determines that:

(1) The duties of a position are such that the likelihood of the incumbent's involvement in conflicts-of-interest situation is remote; or

(2) The duties of a position are at such a level of responsibility that the submission of a statement of employment and financial interests is not necessary because of the degree of supervision and review over the incumbent or the inconsequential effect on the integrity of the Government.

(b) A statement of employment and financial interests is not required by this part from the Secretary of Commerce, from the head of an independent agency for which the Department of Commerce performs administrative services, or from a full-time member of a committee, board, or commission appointed by the President. These employees are subject to separate reporting requirements under section 401 of Executive Order 11222. $ 0.735-24 Time and place for submis

sion of original statements. (a) An employee required to submit a statement of employment and financial interests under this part shall submit that statement not later than:

(1) Ninety days after the effective date of this part if the employee is employed by the Department on or before the effective date of this part; or

(2) Thirty days after the employee's entrance on duty date, but in no case earlier than 90 days after the effective date of this part.

(b) Statements shall be submitted to a personnel officer specified by the head of the operating unit or to such other person as the head of the operating unit, with the approval of the Secretary, may specify. Secretarial officers and heads of operating units shall submit their statements to the Secretary or to such person as the Secretary may designate. $ 0.735–25 Supplementary statements.

Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year, except when the Civil Service Commission authorizes a different date on a showing by the Department of necessity therefor. (The Commission has authorized filing of the supplementary statement for 1967 as of Sept. 30, 1967.) If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts-of-interest provisions of section 208 of Title 18, United States Code, or Subpart D of this part. $ 0.735-26 Interests of employees' rel

atives. The interest of spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, "member of an employee's immediate household” means those blood relations who are members of the employee's household. $ 0.735–27 Information not known by

employees. If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf.




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$ 0.735-28 Information not required. to participate in a matter in which his This part does not require an employee

or the other person's participation is proto submit on a statement of employment

hibited by law, order, or regulation, inand financial interests or supplementary

cluding this part. statement any information relating to $ 0.735-31 Special Government the employee's connection with, or in

ployees. terest in, a professional society or a

(a) Special Government employees charitable, religious, social, fraternal,

shall be required to report: recreational, public service, civic, or

(1) All other employment; and political organization or a similar orga

(2) Financial interests specified on nization not conducted as a business en

Form CD-219. terprise. For the purpose of this section, educational and other institutions doing

(b) A waiver may be granted to the research and development or related

requirements of this section in the case work involving grants of money from or

of a special Government employee who is contracts with the Government are

not a consultant or expert (as defined deemed "business enterprises” and are

in Chapter 304 of the Federal Personnel required to be included in an employee's

Manual) when a determination is made statement of employment and financial

that the duties of the position held by interests.

that special Government employee are

of such a nature and at such a level of $ 0.735–29 Confidentiality of

responsibility that the submission of the ployees' statements.

statement by the incumbent is not neces(a) No employee may have access to a sary to protect the integrity of the Govstatement of employment and financial

ernment. Any such waiver shall be apinterests, or a supplementary statement, proved by the head of the operating unit unless his oficial duties make access nec

concerned or his designee. A copy of the essary. Each employee who has access

waiver shall be filed with the deputy to such a statement is responsible for counselor for the organization unit maintaining it in confidence and shall concerned.

allow access to, or allow information (c) The original statement of employto be disclosed from, a statement except ment and financial interests required to to an employee of the Department of be submitted by a special Government Commerce or the Civil Service Commis- employee shall be submitted not later sion to carry out the purpose of this part than his entry on duty. Each special or to other persons as the Civil Service employee shall keep his statement curCommission or the Assistant Secretary rent throughout his employment with for Administration may determine for the Department by the submission of good cause shown. (The foregoing limita- supplementary statements. tions do not apply to release of informa

Subpart F-Supplementary tion by an employee with respect to a statement he has submitted under this

Regulations section.)

$ 0.735-32 Departmental. (b) The employees designated in paragraph (b) of $ 0.735-24 to receive state

The Assistant Secretary for Adminisments are authorized to review and

tration may prescribe supplementary inretain the statements and are responsi

structions consistent with this part. ble for maintaining the statements in $ 0.735–33 Operating units. confidence, as provided in this section.

Each operating unit is hereby author$ 0.735–30 Relation of this part to

ized and directed to prescribe, after apother requirements.

proval by the Assistant Secretary for Ad(a) The requirement that employees

ministration, such additional regulations submit statements of employment and

not inconsistent with this part as may financial interests and supplementary

be necessary to effectuate the general statements under this part is in addi

purpose of this part in the light of its tion to, and not in substitution for, or in

individual operating requirements, inderogation of, any similar requirement

cluding but not limited to pertinent statimposed by law, order, or regulation. utory provisions, such as:

(b) The submission of a statement or (a) 35 U.S.C. 4, 122 (Patent Office); supplementary statement by an employee (b) 46 U.S.C. 1111(b) (Maritime Addoes not permit him or any other person ministration);

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