and of any other Federal conflict of interest statutes or regulations.

§ 1506.307 Custody of completed 278 forms.

(a) Any completed 278 form filed with the ethics officer or transmitted to the Director, Office of Government Ethics, pursuant to this subpart, shall be retained by the OFI or the Office of Government Ethics, or both, as the case may be. Such completed forms shall be made available to the public for a period of six years after receipt of the report. After this six-year period, the form shall be destroyed, unless needed in an ongoing investigation. In the case of an individual who filed a 278 form as a nominee to a position requiring Senate confirmation and who was not subsequently confirmed by the Senate, his or her form shall be destroyed one year after he or she is no longer under consideration by the Senate, unless it is needed in an ongoing investigation.

(b) Copies of all qualified trust agreements, the list of assets initially placed in such trusts, and all other publicly available documents relating to such trusts shall be retained until the periods for retention of all other forms have lapsed.

§ 1506.308 Public access to completed 278 forms.

Within fifteen days after any completed form is actually received by the ethics officer, the ethics officer shall permit inspection of such report by, or furnish a copy to, any person who makes a written application which:

(a) States the applicant's name, occupation, and address,

(b) States the name and address of any other person or organization on whose behalf the request is made, and

(c) States that the applicant is aware of the restrictions on the obtaining and the use of the report.

§ 1506.309 Review of completed 278 forms and remedial action.

(a) The reviewing official (the ethics officer, except for the ethics officer's form, which the Federal Inspector shall review) shall review each 278 form to determine that it complies with all applicable law.

(b) Upon determining that the employee is in compliance with all applicable law, the reviewing official shall sign and date the completed form.

(c) If the reviewing official believes that additional information is necessary, such information shall be requested. The employee of whom this request is made shall be afforded a reasonable opportunity to respond.

§ 1506.310 Procedure after review of additional information.

(a) If, after reviewing the additional information, the reviewing official concludes that the employee is in compliance with applicable law, the reviewing official shall sign and date the completed form and so notify the employee.

(b) If, after reviewing the additional information, the reviewing official concludes that the employee is not in compliance with applicable law, the reviewing official shall:

(1) Notify the employee of that opinion,

(2) Afford the employee an opportunity for personal consulation, if practicable,

(3) Determine what remedial action should be taken to bring the employee into compliance, and

(4) Notify the employee in writing of the remedial action required, indicating a date by which such action should be taken.

(c) Remedial steps may include: (1) Divestiture of a conflicting inter

(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 situation 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

action includes adverse action under 5 CFR Part 752.

§ 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.

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

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

§ 1506.402 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.

§ 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.

§ 1506.404 Interests of employee's relatives.

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.

§ 1506.405 Information not known by employees.

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.

§ 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.

§ 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 statements in confidence and shall not allow access to, or allow information to be disclosed

§ 1506.410 Procedure after review of additional information.

(a) If, after reviewing the additional information, the ethics officer concludes that the employee is in compliance with applicable law, the ethics officer shall sign and date the report and so notify the employee.

(b) If, after reviewing the additional information, the ethics officer concludes that the employee is not in compliance with applicable law, the ethics officer shall:

(1) Notify the employee of that opinion,

(2) Afford the employee an opportunity for personal consultation, if practicable,

(3) Determine what remedial action should be taken to bring the employee into compliance, and

(4) Notify the employee in writing of the remedial action required, indicat

ing a date by which such action should be taken.

(c) Remedial steps may include:

(1) Divestiture of a conflicting interest,

(2) Restitution,

(3) Establishment of a qualified blind trust, or

(4) Request for an exemption under 18 U.S.C. 208(b).

(d) If the employee complies with the suggested remedial steps, the ethics officer shall sign and date the report.

§ 1506.411 Procedure upon employee's refusal to comply.

(a) If the employee does not comply with the suggested remedial steps, the ethics officer shall refer the matter for appropriate action to the Federal Inspector.

(b) Appropriate action may include: (1) Any of the remedial steps listed in paragraph (c) of § 1506.410, (2) Removal,

(3) Suspension,

(4) Reduction in grade, or (5) Reduction in pay.

(c) Remedial action, whether disciplinary or otherwise, shall be effected in accordance with applicable law.

Subpart E-Rules of Conduct for
Special Government Employees

§ 1506.501 Applicability.

The provisions of this subpart apply to all special Government employees, as defined in § 1506.103 of these regulations.

§ 1506.502 Use of Government employment.

No special Government employee shall use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for him or herself or another person, particularly one with whom he or she has family, business, or financial ties.

§ 1506.503 Use of inside information.

(a) No special Government employee shall, either by direct action on his or her part or by counsel, recommendation, or suggestion to another person,

use inside information, obtained as a result of his or her Government employment, for private gain for him or herself or another person, particularly one with whom he or she has family, business, or financial ties. For the purpose of this section, "inside information" means information, obtained under Government authority, which has not become part of the body of public information.

(b) No special Government employee shall, either for or without compensation, engage in teaching, lecturing, or writing that depends on information obtained as a result of his or her OFI 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.

(a) Apart from the exceptions listed in paragraph (b) of this section, no special Government employee shall solicit or accept for him or herself or anyone else 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 business or financial relations with OFI,

(2) Is regulated by OFI, or

(3) Has interests that may be substantially affected by the special Government employee's performance of his Government duty.

(b) Exceptions to the prohibitions of paragraph (a) of this section are:

(1) A special Government employee may accept food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon

or dinner meeting when, and only when, it is impracticable to pay for the food or refreshments (that is, when the special Government employee is unable to ascertain either the price of the food or refreshments or an appropriate person to pay for the food or refreshments), and

(2) A special Government employee may accept unsolicited promotional materials, such as pens, pencils, note pads, and calendars which are of nominal value.

§ 1506.506

Prohibited financial interests.

(a) No special Government employee shall have a financial interest that conflicts substantially with his or her Government duties and responsibilities.

(b) As applied, paragraph (a) of this section requires that no special Government employee shall own securities of any company (or its parent or affiliate):

(1) Which initially owns and produces gas to be transported through the Alaska Natural Gas Transportation System (the system);

(2) Which first purchases gas to be transported through the system;

(3) Which is involved in the ownership of the system; or

(4) Which is very substantially involved by contract in the construction or the design of the system.

on

(c) A list of the companies whose securities are prohibited under the criteria of paragraph (b) of this section shall be issued to each special Government employee upon entrance duty. A list of these companies shall be distributed to all special Government employees annually and whenever change in circumstances requires modification of the list.

(d) In addition to the specific companies (meeting the criteria in paragraph (b) of this section and listed according to paragraph (c) of this section), there are other categories of companies to which the prohibition in paragraph (a) of this section may or may not apply. Special Government employees should consider the following factors:

(1) Ownership of the securities of other oil and gas companies is not at present prohibited. Special Govern