Sec.

1001.735-406 Interests of employees' relatives.

1001.735-407 Information not known by employees.

1001.735-408 Information not required. 1001.735-409 Review of statements. 1001.735-410 Confidentiality of statements. 1001.735-411 Effect of statements on other requirements.

1001.735-412 Submission of statements by special Governinent employees.

AUTHORITY: E.O. 11222, 30 FR 6469, 3 CFR 1964-65 Comp. p. 306; 5 CFR 735.101 et seq.

SOURCE: 36 FR 6874, Apr. 9, 1971, unless otherwise noted.

Subpart A-General

§ 1001.735-101 Purpose.

The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by employees and special Government employees is essential to assure the proper performance of OPM's business and the maintenance of confidence by citizens in their Government. The avoidance of misconduct and conflicts of interest on the part of employees and special Government employees through informed judgment is indispensable to the maintenance of these standards. To accord with these concepts, this part sets forth OPM's regulations prescribing standards of conduct and responsibilities and governing statements of employment and financial interests for employees and special Government employees.

§ 1001.735-102 Definitions.

In this part:

(a) "Employee" means an officer and an employee of the Office of Personnel Management, but does not include a special Government employee.

(b) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society. a joint stock company, or any other organization or institution.

(c) "Special Government employee" means a special Government employee as defined in section 202 of title 18 of the United States Code who is employed by OPM.

§ 1001.735-103 Remedial action.

(a) A violation of this part by an employee or special Government employee may be cause for remedial action. Remedial action may include, but is not limited to:

(1) Changes in assigned duties:

(2) Divestment by the employee or special Government employee of his conflicting interest;

(3) Disciplinary action which may be in addition to any penalty prescribed by law; or

(4) Disqualification for a particular assignment.

(b) Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations.

Subpart B-Conduct and Responsibilities of Employees

§ 1001.735-201 Proscribed actions.

An employee shall avoid any action 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 efficiency 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.

§ 1001.735-202 Gifts, entertainment, and favors.

(a) Except as provided in paragraphs (b) and (c) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with OPM;

(2) Conducts operations or activities that are regulated by OPM; or

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty. (b) The restrictions set forth in paragraph (a) of this section do not apply to:

(1) Obvious family or personal relationships, such as those between the employee and his parents, children, or spouse, when the circumstances make it clear that those relationships rather than the business of the persons concerned are the motivating factors;

(2) The acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or an inspection tour where an employee may be properly in attendance;

(3) The acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans; and

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

(c) An employee shall not solicit a contribution from another employee for a gift to an official 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.

(d) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342.

(e) Neither this section nor § 1001.735-203 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government

payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under OPM orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

(f) A gift or gratuity, the receipt of which is prohibited by this section shall be returned to the donor with a written explanation why the return is necessary. A copy of the written explanation shall be submitted to OPM's counselor on employee ethics and conduct or a deputy counselor (see OPM PM Chapter 735, section 1-2b) for filing in the employee's Official Personnel Folder. When the return of the gift is not possible, the gift or gratuity shall be submitted to one of the above mentioned officials with a written explanation why the return is not feasible. The counselor or deputy counselor shall turn the gift or gratuity over to a public or private charity or charitable organization.

[36 FR 6874, Apr. 9, 1971; 36 FR 7735, Apr. 24, 1971]

§ 1001.735-203 Outside employment and activity.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include, but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances wherein acceptance may result in, or create the appearance of, a conflict of interest;

(2) Outside employment or activity which tends to impair his mental or physical capacity to perform the duties and responsibilities of his position in an acceptable manner;

(3) Outside employment or activity which may bring criticism of, or cause embarrassment to, OPM; or

(4) Outside employment or activity which is in violation of a statute, Ex

ecutive order, or regulation, including applicable State and local statutes and ordinances.

(b) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, this part, or the agency regulations. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of OPM or Board of Examiners for the Foreign Service, that depends on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the agency head gives written authorization for use of nonpublic information on the basis that the use is in the public interest. In addition, an employee who is a Presidential appointee covered by section 401(a) of the order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of his agency, or which draws substantially on official data or ideas which have not become part of the body of public information.

(c) Employees are encouraged to serve as members of committees or boards which plan or advise on training courses or programs offered by non-Government organizations, especially when the courses or programs are designed for, or are of particular interest to, Federal employees. However, before an employee may accept membership on such a committee or board, he shall request in writing and secure the approval of OPM official authorized to grant the request. Associate directors, regional directors, and heads of staff offices are authorized to grant requests made by their employees. The Director and the Deputy Director are the approving authorities for employees who report directly to them. The authorizing official shall transmit a copy of each approved re

quest for inclusion in the employee's Official Personnel Folder.

(d) Employees are encouraged to accept appointments as faculty members for after-hours teaching. However, before an employee may accept such an appointment, he shall request and secure approval, and the approved request shall be included in his Official Personnel Folder, as provided in paragraph (c) of this section.

(e) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government.

(f) An employee who engages in any kind of outside paid employment on a substantially regular basis shall submit to his immediate supervisor a memorandum describing the employment and stating approximately how many hours per week he is so employed. The immediate supervisor shall forward the memorandum through his bureau director, regional director, or staff office head for inclusion in the employee's Official Personnel Folder.

(g) This section does not preclude an employee from:

(1) Participation in the activities of national or State political parties not proscribed by law;

(2) Participation in the local selfgovernment activities in the community in which he resides to the extent permitted by law. However, an employee may not hold elective office in his local community government without the approval of the Deputy Director; or

(3) Participation in the affairs of, or acceptance of an award for meritorious public contribution or achievement given by, a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

(Pub. L. 95-454; Reorganization Plan No. 2 of 1978)

[36 FR 6874, Apr. 9. 1971, as amended at 44 FR 76747, Dec. 28, 1979]

§ 1001.735-204 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, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(b) 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 11222, Part 735 of this chapter, or this part.

§ 1001.735-205 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 1001.735203(b), directly or indirectly use, or allow the use of, official information obtained through or in connection Iwith this Government employment which has not been made available to the general public.

§ 1001.735-205a Employment referrals.

Unless requested by an agency, or specifically part of his or her official duties, no officer or employee of the Office of Personnel Management shall make or transmit to a Federal agency any written or oral referral or recommendation in behalf of, or against, an applicant for Federal employment. Further, unless requested by an agency, or specifically part of his or her official duties, no officer or employee of OPM shall make or transmit to a Federal agency any written or oral recommendation bearing on agency action in the promotion, assignment, transfer, or retention of an agency employee. This standard of conduct does not preclude inquiry by an OPM officer or employee into any aspect of a personnel action proposed or taken in behalf of, or against, an agency employee as part of his or her officially assigned duties or when the OPM officer or employee has reason to believe that the action was or may be in violation of the laws, rules or regulations administered by OPM.

[40 FR 5347, Feb. 5, 1975]

§ 1001.735-206 Safeguarding the examination process.

(a) An employee shall notify his supervisor when he intends to file for a competitive examination or an internal, noncompetitive examination. He must give similar notice if he knows that a close relative, a member of his household, or a roommate intends to take a competitive examination.

(b) If the employee takes part in the construction of written tests, has access to test material or is involved in the examination rating process, his supervisor or other appropriate authority will arrange his duty assignments to prevent his contact with materials related to the examination or examinations applied for. If the test material involved in the forthcoming examination has already been exposed to the employee, arrangement will be made for the person concerned to be given an alternate test.

(c) The supervisor is responsible to see that notifications given by employees are transmitted promptly. In the central office, supervisors will forward this information to the Test Security Officer in the Staffing Services Group. In the regions, supervisors will give the information to Regional Directors. § 1001.735-207 Support of OPM programs.

(a) When an OPM program is based on law or Executive order, every employee has a positive obligation to make it function as efficiently and economically as possible and to support it as long as it is a part of recognized public policy. An employee may, therefore, properly make an address explaining and interpreting such a program, citing its achievements, defending it against uninformed or unjust criticism, pointing out the need for possible improvements, or soliciting views for improving it.

(b) An employee shall not, either directly or indirectly, use appropriated funds to influence a Member of Congress to favor or oppose legislation in violation of 18 U.S.C. 1913. However, an employee is not prohibited from:

(1) Testifying as a representative of OPM on pending legislation proposals before congressional committees on request; or

§ 1001.735-210 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 the purpose of this section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court.

(b) When an employee has a levy placed against his salary for failure to pay an indebtedness for Federal income taxes, he shall be issued a written reprimand stating that failure to make satisfactory arrangements regarding future tax liabilities will be grounds for removal.

(c) When an employee is the subject of a letter of complaint stating that he has not paid his State or local taxes and has failed to make satisfactory arrangements regarding the debt, he shall be interviewed by the Director of Personnel in the central office or by the regional director in a regional office. In this interview he shall be instructed to make satisfactory arrangements for the payment of his debt im