3. If an employee, including a special Government employee, has continued to participate in a bona fide pension, retirement, group life, health, or accident insurance plan, or other employee welfare or benefit plan that is maintained by a business or nonprofit organization of which he is a former employee, his financial interest in that organization will be exempt, except to the extent that the welfare or benefit plan is a profit-sharing or stock-bonus plan. This exemption extends also to any financial interests that the organization may have in other business activities. Subpart D-Acceptance of Gifts, Gratuities, or Entertainment This subpart establishes EPA policy with respect to the acceptance of gifts, gratuities, entertainment (including meals), favors, loans, or any other thing of monetary value by EPA employees. § 3.401 Policy. (a) It is EPA policy not to interfere in the private lives of employees and their families. However, certain conduct involving acceptance of gifts, gratuities, entertainment (including meals), favors, loans, or any other thing of monetary value which does not fall within any specific statutory prohibition must be regulated in view of the nature of the official duties of the employee and the special responsibilities that are assumed by a person who accepts Federal employment. (b) Except as provided in paragraph (d) of this section, and in § 3.104 (e) the direct or indirect solicitation or acceptance by an employee, his spouse, or minor child of any gift, gratuity, entertainment (including meals), favors, loan, or any other thing of monetary value from any person, corporation, or group is forbidden if the employee has reason to believe that the person, corporation, or group: (1) Has or is seeking to obtain contractual or other business or financial relationships with EPA; or (2) Has interests which may be substantially affected by such employee's performance or nonperformance of his official duty; or (3) Is in any way attempting to affect the employee's official action; or (4) Conducts operations or activities that are regulated by EPA. (c) There are certain exceptions to the foregoing general rule which are set forth in paragraph (d) of this section. The application of these exceptions requires the exercise of good judgment and commonsense by employees. In determining whether one or more of the exceptions apply, employees shall be guided by the principle that situations have an appearance which might, whether justifiably or not, bring discredit to the Government or to EPA shall be avoided. If an employee finds that his acceptance of a meal, or of refreshments or entertainment pursuant to one of the exceptions under paragraph (d) of this section occurs other than infrequently, he should carefully reexamine the provisions of this subpart and consult with the appropriate Agency Counselor or Deputy Counselor in accordance with subpart B of this part. Each employee shall govern his conduct in light of this subpart, so that he shall have no difficulty in justifying his actions if required to do so. (d) The following are exceptions to the general rule set forth in paragraph (b) of this section: (1) Acceptance of food and 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 the arrangements are consistent with the transaction of official business. (2) Acceptance of modest entertainment, such as a meal or refreshment, in connection with attendance at widely attended gatherings sponsored by industrial, technical, or professional organizations; or in connection with attendance at public ceremonies or similar activities financed by nongovernmental sources where the employee's participation on behalf of EPA is the result of an invitation addressed to him in his official capacity and is approved as a part of his official duties, and the entertainment accepted is related to, and in keeping with, his official participation. (3) Acceptance of gifts, favors, or entertainment, where there is an obvious family or personal relationship between the employee, or between his spouse, children or parents, and the donor, and where the circumstances make it clear that it is that relationship, rather than the business of the persons concerned, which is the motivating factor for the gift, favor, or entertainment. (4) Purchase of articles at advantageous rates where such rates are offered to Government employees as a class. (5) Acceptance of loans from banks or other financial institutions of customary terms to finance proper and usual activities of employees, such as home mortgage loans. (6) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, or other items of nominal value. (7) Acceptance of incidental transportation in kind from a private organization, provided it is furnished in connection with the performance of the employee's official duties and is of a type customarily provided by the private organization. (For further guidance concerning the acceptance of travel and related expenses, see § 3.505.) (e) A gift or gratuity the receipt of which is prohibited under this subpart shall be returned to the donor. If return is not possible, the gift or gratuity shall be turned over to a public or charitable institution and a report of such action, and the reasons why return was not feasible shall be made to the employee's supervisor. When possible, the donor also shall be informed of this action. § 3.402 Statutory prohibitions. The prohibitions set forth in this subpart are to be construed as being in addition to and not in limitation of: (a) The prohibitions of section 201 of Title 18, United States Code, as amended, relating to the corrupt solicitation or receipt of, or arrangement to receive, anything of value in connection with an employee's performance of his official duty; and (b) The prohibitions of section 203 of Title 18, United States Code, as amended, relating to the unlawful solicitation or recipt of, or agreement to receive, compensation for services rendered by an employee in connection with matters affecting the Government. Subpart E-Outside Employment other work or services, with or without compensation. § 3.502 Policy. (a) Employees are permitted to engage in outside employment or other outside activity that is compatible with the full and proper discharge of the duties and responsibilities of their Government employment. Guidelines for determining compatibility are set forth in § 3.503. (b) Employees are encouraged to participate as private citizens in the affairs of their communities: Provided, That the limitations prescribed below, and otherwise by these regulations, are observed. Among these activities may be the following: (1) Speaking, writing, editing, and teaching. (2) Participation in the affairs of charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organizations, and the acceptance of an award for a meritorious public contribution or achievement from any such organization. (3) Participation in the activities of national, State, and local political parties not prescribed by law. In this connection employees should be particularly aware of the restrictions imposed on their activities by the "Hatch Act" (5 U.S.C. 7324-7327) and should consult whenever necessary with the appropriate Counselor or Deputy Counselor, as described in subpart B of this part, regarding the particularities of that act. § 3.503 Guidelines and limitations. Outside employment or other outside activity is incompatible with the full and proper discharge of an employee's duties and responsibilities, and hence is prohibited, if: (a) It would involve the violation of a Federal or State statute, a local ordinance, Executive order, or regulation to which the employee is subject. (b) It would give rise to a real or apparent conflict of interest situation even though no violation of a specific statutory provision was involved. (c) It would involve acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance might result in, or create the appearance of, a conflict of interest. (d) It might bring discredit upon, or reasonably cause unfavorable criticism of, the Government or EPA or lead to relationships which might impair public confidence in the integrity of the Government or EPA. (e) It would involve work with any contractor or subcontractor which is connected with any work being performed by that entity for EPA or would otherwise involve work for any person or organization which may be in a position to gain advantage in its dealings with the Government through the employee's exercise of his official duties. (f) It would identify EPA or the employee officially with any organization manufacturing, distributing, or advertising a product relating to work conducted by EPA, or would create the false impression that it is an official action of EPA, or represents an official point of view. In any permissible outside employment, care shall be taken to ensure that names and titles of employees are not used to give the impression that the activity or product is officially endorsed or approved by EPA or is part of EPA activities. (g) It would involve use of the employee's time during his official working hours. (h) It would involve use by the employee of official facilities, e.g., office space, office machines or supplies, or the services of other employees during duty hours. (i) It would be of such extent or nature as to interfere with the efficient performance of the employee's Government duties, or impair his mental or physical capacity to perform them in an acceptable manner. (j) It would involve use of information obtained as a result of Government employment which is not freely available to the general public in that it either has not been made available to the general public or would not be made available on request. However, written authorization for the use of any such information may be given when the Administrator determines that such use would be in the public interest. §3.504 Distinction between official and nonofficial activities. In applying the provisions of this subpart, particularly with regard to writing, speaking, or editing activities, employees shall distinguish between official and nonofficial activities. In connection with (a) An employee may accept compensation or an honorarium for permissible outside employment or other outside activity which is nonofficial in character unless otherwise prohibited by this subpart. (b) (1) Except as provided in paragraph (b) (2) of this section, travel expenses shall be borne by the Government when official employment activities of employees are involved, including attendance at meetings of nongovernmental organizations. Conversely, when nonofficial outside employment activities are involved, appropriated funds shall not be utilized for travel or subsistence. (2) Contributions and awards incident to training in non-Government facilities and travel, subsistence, and other expenses incident to attendance at meetings may be accepted by employees, provided these contributions, awards, and payments are made by nonprofit organizations under section 4111 of Title 5, United States Code, and that the employee has obtained specific written authorization to accept the contribution or award. § 3.506 Special conditions applicable to teaching, lecturing and speechmaking. (a) Subject to the limitations set forth in § 3.503, employees are encouraged to engage in teaching, lecturing, and speechmaking activities which are no part of their official duties provided that: (1) Such activity is conducted on the employees' own time without the use of Government supplies and without specific information otherwise unavailable to the public. (2) Government travel or per diem funds are not used for these purposes. (3) Teaching and lecturing is not for the purpose of special preparation for a civil service examination that depends on information obtained as a result of Government employment except when that information is available to the general public. (4) Such activities do not involve knowingly instructing persons on dealing with specific matters pending before Government organizations with which the employee is associated in an official capacity. $ 3.507 Special conditions applicable to writing and editing. (a) Subject to the limitations of § 3.503 and of this section, employees may serve as editors, editorial consultants, or on editorial boards, and may contribute articles to publications. (b) Writing and editing activities which involve approval or disapproval of advertising are prohibited. (c) Writing and editing, whether related or unrelated to the employee's official duties, shall not express or imply official support in the material itself or in advertising or promotional material, including book jackets and covers, relating to the employee and his contribution to the publication. (d) writing or editing activities unrelated to the employee's official duties or other responsibilities and programs of the Federal Government shall omit mention of the employee's official title or affiliation with the Agency, or alternatively, use his official title and affiliation with the Agency in a way that shall not suggest or convey official endorsement of the work. (e) Writing or editing activities related to the employee's official duties or other responsibilities and programs of the Federal Government shall omit mention of his official title or affiliation with the Agency or shall include a disclaimer. Disclaimers shall read as follows (unless a different wording is approved by the Office of Public Affairs): "This (article, book, etc.) was (written, edited) by (employee's name) in his private capacity. No official support or endorsement by the Environmental Protection Agency or any other agency of the Federal Government is intended or should be inferred." § 3.508 Special conditions applicable to publishing. Employees may engage in publishing activities when the following conditions are met: (a) No financial profit is derived from publishing materials which are made available to the general public by this Agency or which are available to the employee because of his official duties, but are not available to the general public. (b) No financial profit is sought or derived from publishing proceedings or similar compilations of conferences, symposia, or similar gatherings: (1) Which are sponsored by the Government, or (2) Which involve the performance of official duties, or are directly related to official duties, or (3) Where perticipation or attendance has been authorized on Government time. (c) The official title of the individual engaged in such publishing business is not used. If the individual is the author as well as the publisher, the provisions referred to under § 3.507 apply. § 3.509 Administrative approval. The provisions of this subpart shall be observed with respect to all outside employment or other outside activity. Each employee shall be alerted to identify and to avoid any situation that would involve prohibited activity. Aside from avoiding prohibited outside employment, each employee shall obtain administrative approval in accordance with appendix A to this part before engaging in outside employment of the following types: (a) Regular self-employment. (c) Holding State or local public office. (d) Outside employment or other outside activity involving an EPA contractor or subcontractor. (e) Any other outside work concerning the propriety of which an employee is uncertain. Prior administrative approval may be required for additional types of outside employment where, because of special considerations, such a requirement is considered desirable for the protection of employees or EPA. § 3.510 Related statutory provisions. Several criminal statutory provisions restrict certain types of outside activities on the part of employees as follows: (a) Section 203 of Title 18, United States Code, imposes criminal penalties upon an employee who, other than in the proper discharge of official duties, directly or indirectly receives or agrees to receive, or asks, demands, solicits, or seeks, any compensation for any service rendered or to be rendered either by himself or another in relation to any proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which the United States is a party or has a direct and substantial interest before any department, agency, court-martial, officer, or any civil, military, or naval commission. (b) Section 205 of Title 18, United States Code, imposes criminal penalties upon any employee who, other than in the proper discharge of his official duties, acts as agent or attorney for prosecuting any claim against the United States or receives any gratuity, or any share of or interest in any such claim in consideration of assistance in the prosecution of such claim, through his decision, approval, disapproval, recommendation, rendering of advice, investigation, or otherwise, in a matter which is the subject of his official responsibility. (c) (1) Under section 209 of Title 18, United States Code, an employee is prohibited from receiving any salary, or any contribution to or supplementation of salary, as compensation for his services as an officer or employee of the Government, 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, or except as may be paid under the terms of Chapter 41 or Title 5, United States Code. (2) Exceptions to the prohibitions of section 209 of Title 18, United States Code, are made for those employees continuing to participate in a bona fide pension, retirement, group life, health or accident insurance, profit-sharing, stock bonus, or other employee welfare or bene fit plan maintained by a former em- APPENDIX A.-PROCEDURES FOR PERMISSION TO 1. Form and content of request.—A request (in duplicate) for administrative approval of the categories of outside employment or other outside activity listed in § 3.509 of subpart E shall be in writing and addressed to the appropriate Counselor or Deputy Counselor. The request shall show: a. Employee's name, occupational title, and Federal salary. b. Nature of outside activity: Full description of specific duties or services to be performed and amount of compensation to be received. If without compensation so state. c. Name and business of person or organization for which the work will be done. (In case of self-employment in a professional capacity serving a large number of individuals, instead of listing each client, the type of services to be rendered and estimate of the total number of clients anticipated during the next 6 months shall be indicated.) d. Estimated total time that shall be devoted to the activity. (If on a continuing basis, the estimated time per year; if not, the anticipated ending date.) e. Whether service can be performed entirely outside of usual duty hours; if not, estimated number of hours of absence from work that shall be required. f. The grants or contracts involved, if contemplated outside employment includes consultative or professional services to institutions or Government units which have negotiated or may seek a Federal grant or contract. Full details must be provided on any aspect of the professional and consultative services which involves, directly or indirectly, the preparation of grant application, contract proposals, program reports, and other materials which are designed to become the subject of dealings between the institutions and Government units and the Federal Government. Indicate method or basis of compensation (e.g., whether fee basis, per diem, per annum, or other). 2. Acting on employee requests.-a. Requests shall be thoroughly reviewed by the appropriate Agency Counselor or Deputy Counselor to insure that the outside activity for which approval is sought is permissible under applicable statutes and regulations. The review shall appraise the request in terms of (1) conflicts or apparent conflicts of interest, and (2) potential problems arising from the employee's participation in the outside activity which could result in |