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Subpart C-Public Financial Disclosure

Requirements for Employees

$ 1506.301 Employees subject to public fi

nancial disclosure requirements. (a) Every employee whose position is classified as GS-16 or above or who is paid at an equivalent rate in the Senior Executive Service shall annually file an “Executive Personnel Financial Disclosure Report” (referred to as a “278 form”) for public financial disclosure.

(b) Every schedule C employee who is paid at a rate below GS-16 shall file a 278 form annually, unless specifically excepted from the requirement, in accordance with OGE procedure, as having no role in advising or making policy determinations concerning agency programs or policies.

(c) The OFI ethics officer shall file a 278 form annually.

and conflicts of interest, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).

(e) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information (18 U.S.C. 1905).

(f) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

(g) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a(c)).

(h) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).

(i) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

(j) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(k) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

(1) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(m) The prohibition against (1) embezzlement of Government money or property (18 U.S.C. 641); (2) failure to account for public money (18 U.S.C. 643); and (3) embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654).

(n) The prohibition against unauthorized use of documents to claims from or by the Government (18 U.S.C. 285).

(0) The prohibitions against certain political activities in the “Hatch Act” (5 U.S.C. 7324-7327 and 18 U.S.C. 602, 603, 607, and 608).

(p) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

$ 1506.302 When to file 278 form.

(a) Except as described in paragraph (b) of this section, all employees who are required by virtue of their position to file a 278 form shall file the form within thirty days of their entrance into that position.

(b) A new entrant to a 278 position does not need to file a 278 form within 30 days of entrance upon duty:

(1) If the entrant has just left a position for which he was required to file a 278 form; or

(2) If the entrant has already filed a 278 form as a nominee or candidate for the position.

(c) Thereafter, every employee who performs the duties of a 278 position for more than 60 days of any calendar year shall file a 278 form for that year by May 15 of the succeeding year.

(d) Within thirty days after the termination of employment in a 278 position, a terminated employee shall file a 278 form for the year of termination. However, if an employee terminates one 278 position but assumes another 278 position (either at OFI or in other Federal employment) within 30 days of termination, no report is required by this subsection.

(e) The ethics officer may, for good cause shown, grant to any employee or class of employees an extension of up to 45 days. The OGE may, for good cause shown, grant an additional extension of up to 45 days. The employee shall set forth specific reasons for the additional extension request and shall submit these reasons to the ethics officer. The ethics officer will forward the request and comments on it to the OGE. 8 1506.303 Where to file 278 form.

(a) Employees who are required to file 278 forms shall file them with the ethics officer.

(b) The ethics officer shall transmit the 278 form of the Federal Inspector and the ethics officer's 278 form to the Director of the OGE. Prior to transmitting these forms, the ethics officer shall review the 278 form of the Federal Inspector and shall ensure that ethics officer's 278 form is reviewed by the Federal Inspector.

$ 1506.304 Procedure for completing 278

form. Each 278 form shall be filled out entirely and in accordance with its instructions. If questions arise while filling out his or her form, an employee should consult the ethics officer. The ethics officer shall in turn make available the OGE regulations implementing Title II of the Ethics in Government Act.

apply when an employee is the beneficiary of:

(1) A "qualified blind trust," (2) A "qualified diversified trust," or (3) An “excepted trust."

(c) The trusts provided in paragraph (b) of this section are approved in the following manner:

(1) A “qualified blind trust” is a trust certified as approved by the Director of the Office of Government Ethics as meeting the requirements of section 202(f)(3) of the Ethics in Government Act and implementing regulations.

(2) A “qualified diversified trust” is a trust certified as approved by the Director of the Office of Government Ethics, in concurrence with the Attorney General, as meeting the requirements of section 202(f)(4)(B) of the Ethics in Government Act and implementing regulations.

(3) An “excepted trust” is one which was not created directly by the employee, his spouse, or his dependent child, and the holdings or sources of income of which are not known to the employee, his spouse, or his dependent child. An excepted trust requires no certification or approval.

(d) An employee who wishes to create a qualified blind trust or (in the case of the Federal Inspector) a qualified diversified trust should consult with the ethics officer, who shall refer the employee to the OGE.

(e) Employees who create, maintain, or dissolve either a qualified blind trust or a qualified diversified trust shall familiarize themselves with the special filing requirements for those actions. Employees may obtain copies and interpretations of those requirements (5 CFR 734.407) from the ethics officer.

(f) Assets in all types of trusts, except a qualified diversified trust of the Federal Inspector, shall be considered financial interests until the employee is notified by the trustee that the assets have been disposed of or have a value of less than $1,000. As such, all trust assets, except those in qualified diversified trusts, shall be subject to the financial interest restrictions of $ 1506.207 of section 208 of Title 18 of the United States Code,

$ 1506.305 Special rules for completing

278 form. Employees who are required to submit 278 forms should acquaint themselves with the special rules set forth in the regulations of the Office of Government Ethics at 5 CFR 734.303. Copies and interpretations of these provisions may be obtained from the ethics officer. Employees should note that they may request a waiver of the reporting requirement for certain personal gifts.

$ 1506.306 Special rules for reporting trust

interests and assets. (a) Subject to the exceptions of paragraph (b) of this section, employees required to submit 278 forms shall report trust interests and assets which have a value in excess of $1,000.

(b) The reporting requirement of paragraph (a) of this section does not

and of any other Federal conflict of (b) Upon determining that the eminterest statutes or regulations.

ployee is in compliance with all appli

cable law, the reviewing official shall 8 1506.307 Custody of completed 278 sign and date the completed form. forms.

(c) If the reviewing official believes (a) Any completed 278 form filed that additional information is neceswith the ethics officer or transmitted sary, such information shall be reto the Director, Office of Government quested. The employee of whom this Ethics, pursuant to this subpart, shall request is made shall be afforded a be retained by the OFI or the Office reasonable opportunity to respond. of Government Ethics, or both, as the case may be. Such completed forms $ 1506.310 Procedure after review of addi. shall be made available to the public tional information. for a period of six years after receipt of the report. After this six-year information, the reviewing official

(a) If, after reviewing the additional period, the form shall be destroyed,

concludes that the employee is in comunless needed in an ongoing investiga- pliance with applicable law, the retion. In the case of an individual who

viewing official shall sign and date the filed a 278 form as a nominee to a posi

completed form and so notify the emtion requiring Senate confirmation

ployee. and who was not subsequently con

(b) If, after reviewing the additional firmed by the Senate, his or her form

information, the reviewing official shall be destroyed one year after he or

concludes that the employee is not in she is no longer under consideration

compliance with applicable law, the reby the Senate, unless it is needed in an

viewing official shall: ongoing investigation. (b) Copies of all qualified trust

(1) Notify the employee of that opin

ion, agreements, the list of assets initially

(2) Afford the employee an opportuplaced in such trusts, and all other

nity for personal consulation, if practipublicly available documents relating

cable, to such trusts shall be retained until the periods for retention of all other

(3) Determine what remedial action

should be taken to bring the employee forms have lapsed.

into compliance, and $ 1506.308 Public access to completed 278 (4) Notify the employee in writing of forms.

the remedial action required, indicatWithin fifteen days after any com

ing a date by which such action should

be taken. pleted form is actually received by the ethics officer, the ethics officer shall

(c) Remedial steps may include: permit inspection of such report by, or

(1) Divestiture of a conflicting interfurnish a copy to, any person who makes a written application which:

(2) Restitution, (a) States the applicant's name, oC

(3) Establishment of a qualified cupation, and address,

blind trust, or (b) States the name and address of (4) Request for an exemption under any other person or organization on

18 U.S.C. 208(b). whose behalf the request is made, and (d) If the employee complies with

(c) States that the applicant is aware the suggested remedial steps, the reof the restrictions on the obtaining viewing official shall so indicate in the and the use of the report.

"comments" section of the form, and

shall sign and date it. $ 1506.309 Review of completed 278 forms and remedial action.

8 1506.311 Procedure upon employee's re(a) The reviewing official (the ethics

fusal to comply. officer, except for the ethics officer's (a) If the employee does not comply form, which the Federal Inspector with the remedial steps suggested purshall review) shall review each 278 suant to § 1506.310, the reviewing offiform to determine that it complies cial shall notify the OGE and refer with all applicable law.

the matter for approporiate action to:

est,

action includes adverse action under 5 CFR Part 752.

8 1506.314 Penalties for non-compliance

with the special filing requirements for

qualified trust. (a) The Attorney General may bring a civil action in any appropriate United States District Court against any individual who knowingly and willfully violates the provisions of 5 CFR 734.407 (a) or (b). The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $5,000.

(b) The Attorney General may bring a civil action in any appropriate United States District Court against any individual who negligently violates those provisions. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $1,000.

(1) The President, if the non-complying employee is the Federal Inspector, or

(2) The Federal Inspector, concerning all other employees.

(b) Appropriate action may include:

(1) Any of the remedial steps listed in paragraph (c) of $ 1506.310,

(2) Removal,
(3) Suspension,
(4) Reduction in grade, or

(5) Reduction in pay. $ 1506.312 Advisory opinions and situa

tion lists. Employees may consult the ethics officer to inquire:

(a) About advisory opinions rendered by the Director of the OGE, and

(b) About lists of circumstances and situations which have resulted in noncompliance with ethics laws. These lists, as they are published, will be furnished to all employees who are required to file 278 forms. $ 1506.313 Penalities for failure to file or

falsifying 278 forms. (a) Referral of cases. The Federal Inspector or the Director, Office of Government Ethics, as the case may be, shall refer to the Attorney General the name of any individual who, the appropriate officer has reasonable cause to believe, has willfully failed to file a report, or has willfully falsified or willfully, failed to file information required to be reported.

(b) Civil action. The Attorney General may bring a civil action in any appropriate United States District Court against any individual who knowingly and willfully falsifies or who knowingly or willfully fails to file or report any information which such individual is required to report pursuant to this subpart. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $5,000.

(c) Administrative remedies. The President, the Director, Office of Government Ethics, or the Federal Inspector, may take any appropriate personnel or other action in accordance with applicable law or regulation against any individual failing to file a report or falsifying or failing to file information required to be reported. Such

Subpart D-Confidential Disclosure

Requirements for Employees

$ 1506.401 Employees required to submit

confidential statements of employment

and financial interests. (a) Unless subject to the public financial disclosure requirements of Subpart C of this part or unless exempted under paragraph (b) of this section, those employees required to file confidential statements are:

(1) Employees classified as GS-13 or above, or at an equivalent pay level, who the ethics officer or the FI determines are in positions which require them to make a Government decision or take a Government action in regard to

(i) Contracting or procurement,

(ii) Regulating or aduiting private or other non-Federal enterprise, or

(iii) Other activities where the decision or action has an economic impact on the interests of any non-Federal enterprise;

(2) Employees classified as GS-13 or above, or at an equivalent level of pay, who are in positions which entail duties and responsibilities which require them to report employment and financial interests in order to avoid in$ 1506.404 Interests of employee's rela

tives. The interest of a

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 residents of the employee's household.

volvement in a possible conflicts-of-interest situation; and

(3) Employees classified below GS13, or at an equivalent rate of pay, who are in positions which otherwise meet the criteria in paragraph (a) (1) or (2) of this section, when the requirement that they file has been specifically justified and for which approval has been given by the OGE.

(b) An employee in a position that meets the criteria in paragraph (a) of this section may be excluded from the reporting requirement when the ethics officer determines that:

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

(2) The duties of his or her 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 him or her; or

(3) The use of an existing or alternative procedure is adequate to prevent possible conflicts-of-interest.

(c) The ethics officer shall maintain a list of positions for which a confidential statement is required and shall notify the employees in those positions of the reporting requirement

$ 1506.405 Information not known by em

ployees. If any information required to be included in a statement of employment and financial interest 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.

8 1506.406 Information not required.

This subpart does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed “business enterprises” and are required to be included in an employee's statement of employment and financial interests.

8 1506.402 Time and place for submission

of confidential statements. An employee required to submit a confidential statement shall submit it to the ethics officer:

(a) Within ninety days of the date on which these regulations become effective, or

(b) Within thirty days after his or her entrance on duty, but not earlier than ninety days after these regulations become effective.

8 1506.403 Supplementary statements.

Changes in, or additions to, the information contained in an employee's confidential statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year, except when the OGE authorizes a different date. If no changes or additions occur, a negative report is required.

$ 1506.407 Confidential custody of reports.

The ethics officer shall hold each statement of employment and financial interests, and each supplementary statement, in confidence. To insure this confidentiality, he shall designate which employees are authorized to review and retain the statements. Employees so designated are responsible for maintaining the siatements in confidence and shall not allow access to, or allow information to be disclosed

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