Special Government employees.
General standards of conduct.
Responsibilities of employees.
Interpretation and advisory
service; counseling.
Disciplinary action.
Conflicts of interest.

Disqualification because of private financial interests. 1300.735-10 Additional prohibitions-regular Government employees. Additional prohibitions-special Government employees. 1300.735-12 Exemptions and exceptions

1300.735-11

Sec.

1300.735-25 Reporting of employment and

1300.735-26

financial interests-special Government employees. Reviewing statements of financial interests.

Appendix A.

AUTHORITY: The provisions of this Part 1300 issued under E.O. 11222; 3 CFR, 19641965 Comp.; 5 CFR 735.104.

SOURCE: The provisions of this Part 1300 appear at 33 F.R. 2484, Feb. 1, 1968; 33 F.R. 10785, July 30, 1968; 35 F.R. 19232, Dec. 19, 1970, unless otherwise noted. § 1300.735-1

Purpose.

(a) The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by regular employees and special Government employees is essential to assure the proper performance of Government business and the maintenance of confidence by citizens in their Government. The avoidance of misconduct and conflicts of interest on the part of regular employees and special Government employees through informed judgment is indispensable to the maintenance of these standards.

(b) This part is intended to foster the foregoing concepts. It is issued in compliance with the requirements of Executive Order No. 11222 of May 8, 1965, and is based upon the provisions of that order, the regulations of the Civil Service Commission issued thereunder (Part 735 of this title), and the statutes cited elsewhere in this part.

(a) For the purposes of this part, the terms "employee," "regular employee," and "regular Government employee" mean any officer or employee of the Office of Management and Budget except a special Government employee.

(b) The term "special Government employee" means an officer or employee who is retained, designated, appointed, or employed by the Office of Management and Budget to perform, with or without compensation, for not more than 130 days during any period of 365 consecutive days temporary duties either on a full-time or intermittent basis.

(c) The term "person" means an individual, a corporation, a company, an association, a firm, a partnership, society, a joint stock company, or any other organization or institution. § 1300.735-3

ployees.

Special Government em

Except where specifically provided otherwise, or where limited in terms or by the context to regular employees or regular Government employees, all provisions of this part relating to employees are applicable also to special Government employees.

§ 1300.735-4 General standards of conduct.

(a) All employees shall conduct themselves on the job in such a manner that the work of the Office is efficiently accomplished and courtesy, consideration, and promptness are observed in dealings with the Congress, the public, and other governmental agencies.

(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. 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;

(a) The Director of Administration shall distribute copies of this part to each regular employee and special Government employee within 30 days after the effective date thereof. 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 his 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. B12, the "Code of Ethics for Government Service", which is attached to this part as appendix A.

§ 1300.735-6 Interpretation and advisory service; counseling.

(a) The Director shall appoint a Counselor for the Office who shall serve also as the Office's designee to the Civil Service Commission on matters covered by this part. The Director may, in his discretion, appoint one or more deputy counselors to serve under the direction of the Counselor.

(b) The Director of Administration shall notify all employees and special Government employees of the availability of counseling services, and of how and where such services are available. Such notification shall be made within 90 days after the effective date of this part, and periodically thereafter. 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 his 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 shall be effected in accordance with any applicable laws, Executive orders, or regulations.

§ 1300.735-8 Conflicts of interest.

(a) A conflict of interest may exist whenever an employee has a substantial personal or private interest in a matter which involves his 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 his official position to advance his 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 his official position might be used to his private advantage.

(b) Neither the pertinent statutes nor the standards of conduct prescribed in this part are to be regarded as entirely comprehensive. Each employee must, in each instance involving a personal or private interest in a matter which also involves his duties and responsibilities as an employee, make certain that his actions do not have the effect or the appearance of the use of his official position for the furtherance of his own interests or those of his family or his 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 variously fine, imprisonment, dismissal from office, and disqualification from holding any office of honor, trust, or profit under the United States.

§ 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, to his knowledge, he has a financial interest. (18 U.S.C. 208).

(1) For the purposes of this section(1) 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, claim, controversy, charge, accusation, arrest, or other particular matter; and

(iii) A financial interest is the interest of the employee himself or his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner or employee, or any person or organization with whom he 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 official duties shall make a full disclosure of that interest to the Director of Administration in writing. He shall not participate in such matter unless and until he 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 him. If the Director does not make such a determination, he shall direct such remedial action as may be appropriate under the provisions of § 1300.735-26.

(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 as being too remote or inconsequential to affect the integrity of an employee's services in a matter:

(1) Stocks, bonds, or policies in a mutual fund, investment company, bank, or insurance company, provided that in the case of a mutual fund, investment company, or bank, 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, investment company, or bank. In the case of a

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.

(2) Interest in an investment club, provided, that the fair value of the interest involved does not exceed $5,000, and that the interest does not exceed one-fourth of the total assets of the investment club.

§ 1300.735-10 Additional prohibitions-regular Government employees.

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

(1) He may not, except in the discharge of his official duties, represent anyone 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) He may not, after his 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 participated personally and substantially for the Government (18 U.S.C. 207(a)).

(3) He may not, for 1 year after his 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 official responsibility during the last year of his Government service (18 U.S.C. 207(b)). (This temporary restraint is permanent if the matter is one in which he participated personally and substantially. See subparagraph (2) of this paragraph.)

(4) He may not receive any salary, or supplementation of his Government salary, from a private source as compensation for his services to the Government (18 U.S.C. 209). (See § 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.

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

(1) He may not, except in the discharge of his 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 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 served there no more than 60 days during the previous 365 (18 U.S.C. 203 and 205). He is bound by this restraint despite the fact that the matter is not one in which he has ever participated personally and substantially.

(2) He may not, after his 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 participated personally and substantially for the Government (18 U.S.C. 207(a)).

(3) He may not, for 1 year after his 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 official responsibility during the last year of his Government service (18 U.S.C. 207(b)). (This temporary restraint is permanent if the matter is one in which he participated personally and substantially. See subparagraph (2) of this paragraph.)

(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 § 1300.735-12(d).

§ 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 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 parents, spouse, child, or any person for whom, or for any estate for which, he is serving as guardlan, executor, administrator, trustee, or other personal fiduciary, except in those matters in which he has participated personally and substantially as a Government employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, or which are the subject of his official responsibility, as defined in section 202(b) of Title 18 of the United States Code, provided, that the Personnel Officer approves.

(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 or certification of his activities as provided for by section 205 of Title 18, U.S. Code, shall make application therefor in writing to the Director of Administration.

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

(3) The Director of Administration shall report promptly to the Director, through the Deputy Director, all matters reported to him 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 para

graph (b) of this section may be granted by the Director of 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 services as an 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)

(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, profit-sharing, 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;

(2) Conducts operations or activities which are regulated by the Office; or

(3) Has interests which may be substantially affected by the performance or nonperformance of his 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