ployees are applicable also to special Government employees.

§ 1300.735-4 General standards of conduct.

conduct

a

(a) All employees shall themselves on the job in such manner that the work of the Office is efficiently accomplished and courtesy, consideration, and promptness are observed in dealing with others.

(b) All employees shall conduct themselves off the job in such a manner as not to reflect adversely upon the Office or the Federal service.

(c) In all circumstances employees shall conduct themselves so as to exemplify the highest standards of integrity. Executive Order 11222 and Civil Service regulations provide that an employee shall avoid any action, whether or not specifically prohibited by this part, which might result in, or create the appearance of:

(1) Using public office 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) Affecting adversely the confidence of the public in the integrity of the Government.

§ 1300.735-5 Required employee notification.

(a) The Assistant to the Director for Administration shall distribute copies of this part to each regular employee and special Government employee within 30 days of its publication. In the case of a new regular employee or special Government employee entering on duty after the date of such distribution, a copy shall be furnished at the time of entrance on duty. All regular and special Government employees shall familiarize themselves with the contents of this part.

(b) Copies of the Executive order, regulations, and statutes referred to in § 1300.735-1, together with various explanatory materials, are available for inspection in the Personnel Office at any time during regular business

hours. Employees are encouraged to consult these basic materials in any case of doubt as to the proper application or interpretation of the provisions of this part.

(c) Attention of all employees is directed to House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. 312, the "Code of Ethics for Government Service," which is attached to this part as Appendix A. (See also § 1300.735-21.)

§ 1300.735-6 Interpretation, advisory services, and counseling.

(a) The General Counsel is appointed as the Office's designee to the Civil Service Commission to interpret matters concerning this part. The General Counsel may, in this capacity, appoint one or more assistants, to serve as counselors.

(b) The Assistant to the Director for Administration shall notify all employees and special Government employees annually of the availability of counseling services. In the case of a new employee or special Government employee appointed after the date of such notification, notification shall be given at the time of entrance on duty.

§ 1300.735-7 Disciplinary action.

(a) A violation of any provision of this part by an employee may be cause for appropriate disciplinary action which may be in addition to any penalties prescribed by law. (As to remedial action in cases where an employee's financial interests result in a conflict or apparent conflict of interest, see § 1300.735-26.)

(b) Any disciplinary or remedial action taken pursuant to this part Ishall be effected in accordance with any applicable laws, Executive orders, or regulations.

§ 1300.735-8 Conflicts of interest, actual and apparent.

(a) A conflict of interest may exist whenever an employee has a substantial personal or private interest in a matter which involves his or her duties and responsibilities as an employee. The maintenance of public confidence in Government clearly demands that an employee take no action which would constitute the use

of an official position to advance personal or private interests. It is equally important that each employee avoid becoming involved in situations which present the possibility, or even the appearance, that official position might be used to private advantage to the employee or others through association with the employee.

(b) Neither the pertinent statutes nor the standards of conduct prescribed in this part are to be regarded as exhaustive. Each employee must, in each instance involving a personal or private interest in a matter which also involves his or her duties and responsibilities as an employee, make certain that his or her actions do not have the effect or the appearance of the use of official position for the furtherance of personal or family interests or those of personal or business associates.

(c) The principal statutory provisions relating to bribery, graft, and conflicts of interest are contained in Chapter 11 of the Criminal Code, 18 U.S.C. 201-224. Severe penalties are provided for violations, including fine, imprisonment, dismissal from office, and disqualification from holding any office of honor, trust, or profit with the United States Government.

§ 1300.735-9 Disqualification because of private financial interests.

(a) Unless authorized to do so as provided hereafter in this section, no employee shall participate personally and substantially as a Government employee in a particular matter in which he or she has a financial interest. (18 U.S.C. 208.)

(1) For the purposes of this section

(i) An employee participates personally and substantially in a particular matter through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise;

(ii) A particular matter is a judicial or other proceeding, application, request for ruling or other determination, contract, grant, claim, controversy, charge, accusation, arrest, or other particular activity; and

(iii) A financial interest is the material interest or entitlement of the employee or his or her spouse, minor child, partner, or an organization in

which he or she is serving as officer, director, trustee, partner or employee, or any person or organization with whom he or she is negotiating or has any arrangement concerning prospective employment.

(b) An employee who has a financial interest (other than a financial interest exempted under paragraph (c) of this section) in a particular matter which is within the scope of his or her official duties shall make a full disclosure of that interest in writing to the Assistant to the Director for Administration. The employee shall not participate in any such matter unless he or she receives a written determination by the Director pursuant to section 208 of title 18, United States Code, that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect of such employee.

(c) The financial interests described in this paragraph are hereby exempted, pursuant to the provisions of section 208 of title 18, United States Code, from the restrictions of paragraph (a) of this section and of section 208 of title 18 (but not the other requirements of this part) as being too remote or inconsequential to affect the integrity of an employee's services in a matter:

(1) Stocks or bonds in a mutual fund or investment company, provided that the fair value of such stock or bond holding does not exceed 1 percent of the value of the reported assets of the mutual fund or investment company. This exemption applies only where the assets of the fund or company are diversified; it does not apply where the fund or company advertises that it specializes in a particular industry or commodity.

§ 1300.735-10 Additional prohibitionsregular Government employees.

(a) In addition to the disqualifications described in § 1300.735-9, a regular Government employee may not:

(1) Except in the discharge of official duties, represent any one else before a court or Government agency in a matter in which the United States is a party or has an interest. This prohibition applies both to paid and

unpaid representation of another (18 U.S.C. 203 and 205).

(2) After Government employment has ended, ever represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and in which the employee participated personally and substantially for the Government (18 U.S.C. 207(a)).

(3) For 1 year after his or her Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and which was within the boundaries of the employee's official responsibility during the last year of Government service (18 U.S.C. 207(b)). (This temporary restraint is permanent if the matter is one in which he or she participated personally and substantially. See paragraph (a)(2) of this section.)

(4) Receive any salary, or supplementation of Government salary, from a private source as compensation for services to the Government (18 U.S.C. 209, see also § 1300.735-13).

(b) Exemptions or exceptions from the prohibitions described in paragraph (a) of this section are permitted under certain circumstances. For the method of obtaining such exemptions or exceptions, see paragraph (d) of § 1300.735-12.

§ 1300.735-11 Additional prohibitionsspecial Government employees.

(a) In addition to the disqualification described in § 1300.735-9, a special Government employee is subject to the following major prohibitions:

(1) He or she may not, except in the discharge of official duties

(i) Represent anyone else before a court or Government agency in a matter in which the United States is a party or has an interest and in which he or she has at any time participated personally and substantially for the Government (18 U.S.C. 203 and 205),

or

(ii) Represent anyone else in a matter pending before the Office unless he or she served there no more than 60 days during the previous 365 days (18 U.S.C. 203 and 205). He or she is bound by this restraint despite the

fact that the matter is not one in which he or she has ever participated personally and substantially.

(2) He or she may not, after his or her Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and in which he or she participated personally and substantially for the Government (18 U.S.C. 207(a)).

(3) He or she may not, for 1 year after his or her Government employment has ended, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and which was within the boundaries of his or her official responsibility during the last year of his or her Government service (18 U.S.C. 207(b)). (This temporary restraint is permanent if the matter is one in which he or she participated personally and substantially. See paragraph (a)(2) of this section.)

(b) Exemptions or exceptions from the prohibitions described in paragraph (a) of this section are permitted under certain circumstances; for the method of obtaining such exemptions or exceptions, see paragraph (d) of § 1300.735-12.

§ 1300.735-12 Exemptions and exceptions from prohibitions of conflict of interest statutes.

(a) Nothing in this part shall be deemed to prohibit an employee, if it is not otherwise inconsistent with the faithful performance of his or her duties, from acting without compensation, as agent or attorney for any person in a disciplinary, loyalty, or other Federal personnel administration proceeding involving such person.

(b) Nothing in this part shall be deemed to prohibit an employee from acting, with or without compensation, as agent or attorney for his or her parents, spouse, child, or any person for whom, or for any estate for which, he or she is serving as guardian, executor, administrator, trustee, or other personal fiduciary, except in those matters in which he or she has participated personally and substantially as a Government employee, through deci

sion, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, or which are the subject of his or her official responsibility, as defined in section 202(b) of title 18 of the United States Code.

(c) Nothing in this part shall be deemed to prohibit an employee from giving testimony under oath or from making statements required to be made under penalty for perjury or contempt.

(d) In addition to the exemptions and exceptions described in this section and in § 1300.735-9, the conflict of interest statutes permit certain exemptions and exceptions in specific circumstances. The procedure for effecting such exemptions or exceptions is as follows:

(1) Any regular employee or special Government employee who desires approval of certification of his or her activities as provided for by section 205 of title 18, U.S. Code, shall make application therefor in writing to the Assistant to the Director for Administration.

(2) A former employee, including a former special Government employee, who desires certification with regard to his or her activities under section 207 of title 18, U.S. Code, shall make application therefor in writing to the Assistant to the Director for Administration.

(3) The Assistant to the Director for Administration shall report promptly to the Director, through the Deputy Director, all matters reported to him or her under this part which require consideration of approvals, certifications, or determinations provided for in sections 205, 207, or 208 of title 18, U.S. Code, except that approvals requested under the provisions of paragraph (b) of this section may be granted by the Assistant to the Director for Administration without reference to anyone else.

§ 1300.735-13 Salary of employees payable only by United States.

(a) No employee, other than a special Government employee or an employee serving without compensation, shall receive any salary, or any contribution to or supplementation

of

salary, as compensation for his or her services as a Government employee, from any source other than the Government of the United States, except as may be contributed out of the treasury of any State, county, or municipality. (18 U.S.C. 209, see also § 1300.73510(4) and 11(2).)

(b) Nothing in this part shall be deemed to prohibit an employee from continuing to participate in a bona fide pension, retirement, group life, health, or accident insurance, profitsharing, stock bonus, or other employee welfare or benefit plan maintained by a former employer, nor from accepting contributions, awards, or other expenses under the terms of the Government Employees Training Act, 5 U.S.C. 2301-2319.

§ 1300.735-14 Gifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section and in § 1300.735–15, 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 the Office or any other agency with which the employee has occasion to work in the conduct of his or her official duties.

(2) Has interests which may be substantially affected by the performance or nonperformance of the employee's official duty.

(b) Notwithstanding paragraph (a) of this section, an employee may:

(1) Accept a gift, gratuity, favor, entertainment, loan, or other thing of monetary value from a friend, parent, spouse, child, or other close relative when the circumstances make it clear that the family or personal relationships involved are the motivating factors;

(2) Accept food or 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;

(3) Accept loans from banks or other financial institutions on customary terms to finance proper or usual activ

ities of employees, such as home mortgage loans; and

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

(c) An employee shall not solicit contributions from another employee for a gift to an employee in a superior official position. An employee in a superior official position shall not accept a gift presented as a contribution from employees receiving less salary than himself. An employee shall not make a donation as a gift to an employee in a superior official position. (5 U.S.C. 7351.) However, this paragraph does not prohibit a voluntary donation or acceptance of a gift of nominal value on a special occasion such as marriage, illness, or retirement.

(d) The Constitution (Art. 1, sec. 9, par. 8) prohibits acceptance from foreign governments, except with the consent of Congress, of any emolument, office, or title. The Congress has provided that, except in the case of certain gifts of minimal value and specified military decorations, all such presents, decorations, and other things shall be tendered to the State Department for use and disposal as property of the United States (5 U.S.C. 7342). Any such gift or thing which cannot appropriately be refused shall be submitted to the Assistant to the Director for Administration for transmittal to the State Department.

§ 1300.735-15 Outside employment and other activities.

(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 expenses, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, a conflict of interest; or

(2) Outside employment which tends to impair the employee's mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(b) An employee who intends to engage in outside employment shall obtain the approval, through the head of his or her office or division, of the Assistant to the Director for Administration. A record of each approval under this paragraph shall be filed in the employee's official personnel folder.

(c) Within the limitations imposed by this section, employees are encouraged to engage in teaching, lecturing, and writing. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, making speeches, or writing (including lecturing or writing for the purpose of special preparation of a person or class of persons for an examination of the Civil Service Commission or the Board of Examiners for the Foreign Service) that is dependent on information obtained as a result of his or her Government employment, except when that information has been made available to the general public or will be made available on request, or when the Deputy Director gives written authorization for the 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 Executive Order No. 11222 of May 8, 1965, 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 or her agency, or which draws substantially on official data or ideas which have not become part of the body of public information.

(d) An employee shall rot engage in outside employment under a State or local government, except in accordance with applicable regulations of the Civil Service Commission (Title 5, Chapter I, Part 734 of the Code of Federal Regulations).

(e) Neither this section nor § 1300.735-14 precludes an employee from:

(1) Acceptance of payments from tax exempt organizations pursuant to the provisions of 5 U.S.C. 4111, or receipt of reimbursement for bona fide ex