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ployee's immediate household” means indicates a conflict between the interthose blood relations who are residents ests of an employee and the performance of the employee's household.

of his services for the Government, and

when the conflict or appearance of con$ 1001.735–407 Information not known

flict cannot be resolved by the reviewing by employees.

official, he shall report the information If any information required to be in

concerning the conflict or appearance of cluded on a statement of employment conflict to the Chairman through the and financial interests or on a supple

counselor for the Commission. The emmentary statement, including holdings

ployee concerned shall be given an opplaced in trust, is not known to the em

portunity to explain the conflict or apployee but is known to another person, pearance of conflict before remedial acthe employee shall request that other tion is initiated. person to submit the information in his

$ 1001.735–410 Confidentiality of statebehalf.

ments. $ 1001.735–408 Information prohibited.

Each statement of employment and An employee is not required to submit financial interests, and each supplemenon a statement of employment and fi tary statement, shall be held in confinancial interests, or on a supplementary dence and retained in limited access files statement, any information relating to of the reviewing official. The use of inthe employee's connection with, or inter formation on the statements shall be est in, a professional society or a chari limited to that necessary to carry out the table, religious, social, fraternal, recrea purposes of this part. Information from tional, public service, civic, or political a statement or a supplementary stateorganization or a similar organization ment shall not be disclosed except by not conducted as a business enterprise. decision of the Chairman of the For the purpose of this section, educa Commission. tional and other institutions doing re

$ 1001.735–411 Effect of statements on search and development or related work

other requirements. involving grants of money from or contracts with the Government are deemed The statements of employment and fi"business enterprises” and are required nancial interests and supplementary to be included in an employee's state statements required of employees are in ment of employment and financial addition to, and not in substitution for interests.

or in derogation of any similar require

ment imposed by law, order, or regula$ 1001.735–409 Review of statements.

tion. The submission of a statement or (a) The Executive Director, the Dep supplementary statement by an employee uty Executive Director, the Assistant to

does not permit him or any other person the Chairman, the General Counsel, the

to participate in a matter in which he Deputy General Counsel, and the Chair

or the other person's participation is proman of the Board of Appeals and Review shall submit their statements of employ

hibited by law, order, or regulation. ment and financial interests, and their $ 1001.735–412 Submission of statesupplementary statements, directly to

ments by special Government emthe Commission for review.

ployees. (b) Bureau directors, regional direc (a) Each special Government emtors, and the heads of staff offices who

ployee shall submit a statement of emreport to the Executive Director shall

ployment and financial interests not submit their statements of employment

later than the time of his employment. and financial interests, and their supple

Each special Government employee shall mentary statements, directly to the Executive Director for review.

keep his statement current throughout (c) All other employees covered under

his period of employment by the submis$ 1001.735–401 shall submit their state

sion of supplementary statements. ments of employment and financial in

(b) A special Government employee terests, and their supplementary state shall submit his statement of employments, directly to the Director, Bureau ment and financial interests in the forof Management Services, for review. mat prescribed by the Personnel Divi

(d) When a statement submitted un- sion. The statement is filed with the Dider paragraph (b) or (c) of this section rector, Bureau of Management Services,

and is accorded the confidentiality prescribed in $ 1001.735–410.

(c) The provisions of $$ 1001.735-406 through 1001.735–411 apply to special Government employees in the same manner as to employees.

(d) The Chairman of the Commission may waive the requirement in paragraph (a) of this section for the submission of a statement of employment and financial interests in the case of a special Gov. ernment employee who is not a consult

ant or an expert when he finds that the duties of the position held by that special Government employee are of a nature and at such a level of responsibility that the submission of the statement by the incumbent is not necessary to protect the integrity of the Government. For the purposes of this paragraph, "consultant” and “expert” have the meanings given those terms by Chapter 304 of the Federal Personnel Manual.



Part 1300 Standards of conduct.


CONDUCT Sec. 1300.735-1 Purpose. 1300.735-2 Definitions. 1300.735-3 Special Government employees. 1300.735-4 General standards of conduct. 1300.735-5 Responsibilities of employees. 1300.735-6 Interpretation and advisory

service; counseling. 1300.735–7 Disciplinary action. 1300.735-8 Conflicts of interest. 1300.735–9 Disqualification because of pri

vate financial interests. 1300.735–10 Additional prohibitions-regu

lar Government employees. 1300.735–11 Additional prohibitions—spe

cial Government employees. 1300.735-12 Exemptions and exceptions

from prohibitions of conflict

of interest statutes. 1300.735–13 Salary of employees payable

only by United States. 1300.735–14 Gifts, entertainment, and fa

vors. 1300.735–15 Outside employment and other

activities. 1300.735–16 Financial interests. 1300.735-17 Use of Government property. 1300.735–18 Misuse of information. 1300.735-19 Indebtedness. 1300.735–20 Gambling, betting, and lotter

les. 1300.735-21 General conduct prejudicial to

the Government. 1300.735–22 Miscellaneous statutory pro

visions. 1300.735-23 Conduct and responsibilities of

special Government em

ployees. 1300.735–24 Reporting of employment and

financial interests regular Government employees.

Sec. 1300.735–25 Reporting of employment and

financial interests special

Government employees. 1300.735–26 Reviewing statements of finan

cial interests. Appendix A.

AUTHORITY: The provisions of this part 1300 Issued under E.O. 11222; 3 CFR, 1964 1965 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 Seryice Commission issued thereunder (Part 735 of this title), and the statutes cited elsewhere in this part.

135 F.R. 19232, Dec. 19, 1970.

§ 1300.735–2 Definitions.

(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, a society, a joint stock company, or any other organization or institution. $ 1300.735–3 Special Government em

ployees. 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 Ofice 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 eficiency or economy;

(4) Losing complete independence or impartiality;

(5) Making a Government decision outside oficial channels; or ou

(6) Affecting adversely the confidence of the public in the integrity of the Government. § 1300.735–5 Responsibilities of em.

ployees. (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 advis

ory 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 confict or apparent coniict 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 oficial 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 ofice 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

(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, 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. I 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


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