(b) The Executive Director shall from time to time in his discretion appoint Deputy Counselors to assist the Counselor, designated in paragraph (a) of this section, in the performance of his duties. Deputy Counselors appointed under this section shall be qualified and in a position to give authoritative advice and guidance to each employee and special Government employee who seeks advice and guidance on questions of conflicts of interest and on other matters covered by the regulations in this part. (c) Each employee of the Agency shall be notified of the availability of counseling services and of how and where these services are available.

$2200.735-104 Review of statements of employment and financial inter

ests.

Each statement of employment and financial interests submitted under this part, except statements of the Executive Director, shall be reviewed by the appropriate Division Heads of the Agency. When this review indicates a conflict between the interests of an employee or special Government employee of the Agency and the performance of his services for the Government, the Division Head shall have the indicated conflict brought to the attention of the employee or special Government employee, grant the employee or special Government employee an opportunity to explain the indicated conflict, and attempt to resolve the indicated conflict. If the indicated conflict cannot be resolved, the Division Head shall forward a written report on the indicated conflict to the Head of the Agency through the Counselor for the Agency designated under § 2200.735-103. Statements of the Executive Director shall be submitted to the Head of the Agency for review within ninety (90) days from the date of approval of the regulations in this part as to the present Executive Director, and within thirty (30) days from the date a new Executive Director is appointed. § 2200.735-105 Disciplinary and other remedial action.

An employee or special Government employee of the Agency who violates any of the regulations in this part or adopted under § 2200.735-101 may be disciplined. The disciplinary action may be in addition to any penalty prescribed by law for the violation. In addition to or in lieu of disciplinary action, remedial action to

end conflicts or appearance of conflicts of interest may include but is not limited to:

(a) Changes in assigned duties; (b) Disqualification for a particular assignment; or

(c) Divestment by the employee or special Government employee of his conflicting interest.

Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations.

Subpart B-Agency Regulations Governing Ethical and Other Conduct and Responsibilities of Employees § 2200.735-201 Proscribed actions.

An employee shall avoid any action, whether or not specifically prohibited by the regulations in this part, which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Government efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making a Government decision outside official channels; or

(f) Affecting adversely the confidence of the public in the integrity of the Government.

[32 FR. 17573, Dec. 8, 1967]

§ 2200.735-201a

and favors.

Gifts, entertainment,

(a) Except as provided in paragraph (b) of this section, an employee or a member of the employee's immediate family 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 Agency;

(2) Conducts operations or activities that are regulated by the Agency; or (3) Has interests that may be substantially affected by the performance or nonperformance of the employee's official duty.

(b) The prohibitions of paragraph (a) of this section do not apply to:

(1) Obvious family or personal relationships (such as those between the employee and his parents, children, or spouse) when the circumstances make

it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors;

(2) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans;

(3) Participation of Agency employees in widely attended lunches, dinners, and similar gatherings sponsored by industrial, technical, and professional associations for the discussion of matters of mutual interest to Government and the public. Participation by Agency employees is appropriate where the host is the association and not an individual. However, acceptance of entertainment or hospitality from private parties in connection with such association activities is prohibited.

(4) Participation of Agency employees in activities at the expense of individual contractors when the invitation is addressed to and approved by the Head of the Agency and the activities are limited to (i) public ceremonies of mutual interest to local communities and the Agency (such as ground breakings or openings), or (ii) activities sponsored or encouraged by the Government as a matter of policy (such as meetings, luncheons, or dinners on an infrequent basis when the conduct of official business will be facilitated or when no provision for individual payment is readily available); or

(5) Participation in a limited number of additional situations where, in the judgment of the employee concerned, the Government's interest would be served by participation by Agency employees in activities comparable to those enumerated above. In such cases, when the employee is in doubt as to the propriety of his actions, the employee should discuss the situation with a Counselor or Deputy Counselor.

(c) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(d) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in Public Law 89-673, 80 Stat. 952.

(e) Neither this section nor § 2200.735-202 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under agency orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General, dated March 7, 1967.

[31 F.R. 13787, Oct. 27, 1966, as amended at 32 F.R. 17573, Dec. 8, 1967. Redesignated, 32 F.R. 17573, Dec. 8, 1967]

§ 2200.735-202 Outside

and other activity.

employment

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. An employee who engages in outside employment shall report that fact in writing to his Division Head. Incompatible activities include, but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, a conflict of interest; or

(2) Any outside employment or other activities related to the urban renewal program in the District of Columbia; or

(3) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(b) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government. (18 U.S.C. 209.)

(c) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Execu

tive Order, or the regulations in this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing that is dependent on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the Head of the Agency gives written authorization for the use of nonpublic information on the basis that the use is in the public interest.

(d) An employee shall not engage in outside employment under a State or local government, except in accordance with Part 734 of the Civil Service Regulations (5 CFR Part 734).

(e) This section does not preclude an employee from:

(1) Participation in the activities of national or State political parties not proscribed by law.

(2) Participation in the affairs of or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

[31 F.R. 13787, Oct. 27, 1966, as amended at 32 FR. 17573, Dec. 8, 1967]

§ 2200.735-203 Financial interests.

(a) An employee shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities; or

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(b) In the event that any employee: (1) Has investments in companies or property affected by Agency urban renewal projects within the District of Columbia or prospective projects which the employee knows to be under consideration; or

(2) Engages in other activities or has investments which might conflict or appear to conflict with any of the Agency's functions, whether or not such functions are influenced by the particular employee,

there shall be an immediate disclosure of such investment in such activity to the Counselor or Head of the Agency, as the

An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him.

§ 2200.735-205 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 2200.735-202 (c), directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public.

§ 2200.735-206 Indebtedness.

An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which the Agency determines does not, under the circumstances, reflect adversely on the Government as his employer. In the event of a dispute between an employee and an alleged creditor, this section does not require this Agency to determine the validity or amount of the disputed debt.

a game for money or property, or in selling or purchasing a numbers slip or ticket. However, this section does not preclude activities under section 3 of Executive Order 10927 (Staff Fund) and similar Agency-approved activities.

§ 2200.735-208 General conduct prejudicial to the Government.

An employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government. § 2200.735-209 Miscellaneous statutory provisions.

Each employee and special Government employee shall acquaint himself with each statute that relates to his ethical and other conduct as an employee of the Agency and of the Government. The attention of all employees is directed to the following statutory provisions:

(a) House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. B12, the "Code of Ethics for Government Service".

(b) Chapter 11 of Title 18, United States Code, relating to bribery, graft, 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 prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(f) 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).

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

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

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

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

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

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

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

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

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

(p) The prohibitions against political activities in Subchapter III of Chapter 73 of Title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608.

(q) 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). [31 F.R. 13787, Oct. 27, 1966, as amended at 32 F.R. 17573, Dec. 8, 1967]

Subpart C-Agency Regulations Governing Ethical and Other Conduct and Responsibilities of Special Government Employees

A special Government employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business or financial ties.

§ 2200.735-302 Use of inside information.

(a) A special Government employee shall not use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he 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) A special Government employee may teach, lecture, or write in a manner not inconsistent with § 2200.735-202(c).

(a) Except as provided in paragraph (b) of this section, a special Government employee, while so employed or in connection with his employment, shall not receive or solicit from a person having business with the Agency anything of value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business, or financial ties.

(b) Exceptions for special Government employees shall be the same as for employees (see § 2200.735-201a (b)). [31 F.R. 13787, Oct. 27, 1966, as amended at 32 F.R. 17573, Dec. 8, 1967] § 2200.735-305

provisions.

Miscellaneous statutory

Except as provided in § 2200.735-402 (b), statements of employment and financial interests shall be required from:

(a) Employees GS-13 and above who are Division Heads, or the superiors of Division Heads.

(b) Employees classified at GS-13 or above under section 5332 of Title 5, United States Code, or at a comparable pay level under any other authority, who hold positions which vest them with responsibility for making a Government decision or taking a Government action in regard to:

(1) Contracting or procurement, including the appraisal or selection of contractors; the negotiation or approval of contracts; the supervision of activities performed by contractors; the inspection of materials for acceptability; the procurement of materials, services, supplies, or equipment;

(2) Administering or monitoring grants (or subsidies) or relocation payments;

(3) Audit of financial transactions; (4) Regulating or auditing private or other non-Federal enterprises;

(5) Land acquisition and disposition; (6) Establishment and enforcement of safety standards and procedures systems; and

(7) Other activities where the decision or action has an economic impact on the interests of а non-Federal enterprise.

[32 F.R. 17573, Dec. 8, 1967]

§ 2200.735-402a Employee's complaint on filing requirement.

An employee who complains that his position has been improperly included under this part as one requiring submission of a statement of employment and financial interests shall have opportunity to have his complaint reviewed through the Agency's grievance procedure as set forth in the Employee Manual. [32 F.R. 17573, Dec. 8, 1967]