TITLE 15 COMMERCE AND FOREIGN TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000501260015-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 27, 2016
• Document Release Date: January 23, 2013
• Sequence Number: 15
• Content Type: MISC

? 0.735-1
" S
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11110 15-Commerce and Foreign Trade -vrrece or fh? ecty. of Commerce
PART 0-EMPLOYEE
RESPONSIBIUTIES AND CONDUCT
Bee.
0.735-1
0.735-3
0.735-3
0.735-4
Subpart A-Gonorol Provisions
Purpose. ?
Relation to basic provisions.
Applicability.
Definitions.
Subpart 11--Oonoral Policy
0.735-5 General principles.
0.735-8 Standards required in the Federal
service.
0.735-7 Special requirements of the De-
partment.
0.735-8 Limitations on private activities
and interests.
Subpart C-Statutory limitations Upon
Employes Conduct
?
0.735-9 Employee responsibilities.
Subpart 0-Regulatory Limitations Upon
Employ*. Conduct
0.735-10 Administrative extension of statu-
tory limitations.
0.735-10a Proscribed actions.
0.735-11 Gifts, entertainment, and favors.
0.735-12 Outside employment or other ac-
tivity.
0.735-13 Financial interests.
735-14 Use of Goverrunent time or prop-
?. erty.
0.735-15 Misuse of employment or infor-
mation.
0.735-18 Indebtedness.
0.735-17 Gambling, betting, and lotteries.
0.735-18 General conduct prejudicial to
the Government.
0.735-19 Reporting undue influence to su-
periors.
Subpart E-Statotnonts of Employment and
Financial Interests
0.735-20 General provisions.
0.735-21 Form and content of statements.
0.735-22 Employees required to submit
statements.
0.735-22a Employee's complaint on filing
requirement.
0.735-23 Employees not required to submit
statements.
0.735-24 Time and place for submission of
original statements.
0.735-25 Supplementary statements.
0.735-26 Interests of employees' relatives.
0.735-27 Information not known by em-
ployees.
0.735-28 Information not required.
Sec.
0.735-29 Confidentiality of employees'
statements.
0.735-30 Relation of this part to other re-
quirements.
0.735-31 Special Government employees.
Subpart F-Supplomentory Rogulations
0.735-32 Departmental.
0.735-33 Operating units-
0.735-34 Effective date of supplementary
regulations.
Subpart G-AdminInstrotion
0.735-35 Responsibilities of employees.
0.735-36 Responsibilities of operating
units.
0.735-37 Procedure.
0.735-38 Availability for counseling.
0.735-39 Authorizations.
0.735-40 Disciplinary and other remedial
action.
0.735-41 Inquiries and exceptions.-?
Appendix A-Statutes Governing C-onct:t
of Federal Employees
Appendix B-Position Categories, Grade
08-13 and Above. Requiring Statements
of Employment and Financial Interests
By Incumbents
Appendix C-Position Categories Below 013-
13 Requiring Statements of Employment
and Financial Interests By Incumbents
Autiwarry: E.O. 11222 of May 8, 1965, 30
FR 6460, 3 CFR, 1965 SUPP.: 5 CFR 735.104.
SOURCE: 32 FR. 15222, Nov. 2. 1967, unless
otherwise noted.
Subpart A-General Provisloal
? 0.735-1 Purpose.
The purpose of this part is to set
forth Department of Commerce policy
and procedure relating to employee re-
sponsibilities and conduct.
? 0.735-2 Relation to basic provisions.
(a) This part implements the follow-
ing:
(1) The provisions of law cited in
this part:
(2) Executive Order 11222 of May 8,
1965 (3 CFR, 1965 Supp. p. 130):
(3) Part 735 of the Civil Service reg-
ulations (5 CFR 735.101-735.412, inclu-
sive).
(b) This part prescribe additional
standards of ethical and other conduct
and reporting requirements deemed
appropriate in the light of the particu-
lu functions and activities of this De-
partment.
*0.735-3 Applicability.
This part applies to all persons in-
cluded within the term "employee" as
defined in 0.735-4, except as other-
wise provided in this part.
I 0.735-1 Definitions.
For purposes of this part, except as
otherwise, indicated in this part:
(a) "Employee":
(1) Shall include:
(I) Every officer and employee of the
Department of Commerce (regardless
of location), including commissioned
officers of the Environmental Science
Services Administration; and
(ii) Every other person who is re-
tained, designated, appointed, or em-
ployed by .a Federal officer or employ-
ee, who is engaged in the performance
of a function of the Department under
authority of law or an Executive act,
and who is subject to the supervision
of a Federal officer or employee while
engaged in the performance of the
duties of his position not only as to
what he does but also as to how he
performs his duties, regardless of
whether the relationship to the De-
partment is created by assignment,
detail, contract, agreement or other-
wise.
(2) Shall not include:
(i) Members of the Executive Re-
serve except when they are serving as
employees of the Department under
the circumstances described in para-
graph (a)(1) of this section;
(ii) Members of crews of vessels
owned or chartered to the Govern-
ment and operated by or for the Mari-
time Administration under a General
Agency Agreement: or
(iii) Any other person who is deter-
mined legally not to be an officer or
employee of the United States.
(b) "Special Government employee"
shall mean an employee as defined in
paragraph (a) of this section who is re-
tained, designated, appointed, or em-
ployed to perform with or without
compensation, for not to exceed 130
days during any period of 365 consecu-
tive days, temporary duties on either a
full-time or intermittent basis.
? 0.73S-7
(c) "Personnel officer" means a per-
sonnel official to whom the power of
appointment is redelegated under Ad-
ministrative Order 202-250.
(d) "Operating unit" means, for pur-
poses of this part, primary and con-
stituent operating units designated u
such in the Department Order Series
of the Department of Commerce and.
in addition, the Office of the Secre-
tary.
(e) "Head of an operating unit," for
the purposes of this part, includes the
Assistant Secretary for Administration
with respect to the performance of
functions under this part for the
Office of the Secretary.
Subpart 8-General Policy
? 0.735-5 General principles.
Apart from statute, there are certain
principles of fair dealing which have
the force of law and which are applies-
ble to all officers of the Government.
A public office is a public trust. No
public officer can lawfully engage in
business activities which are incom-
patible with the duties of his office.
He cannot, in his private or official
character, enter into engagements in
which he has, or can have, a conflict-
ing personal interest. He cannot allow
his public duties to be neglected by
reason of attention to his private af-
fairs. Such conflicts of interest are not
tolerated in the case of any private fi-
duciary, and they are doubly pro-
scribed for a public trustee. (40 Ops.
Atty. Gen. 187, 190.)
0.735-6 Standards required in the Feder-
al service.
5 CFR 735.101 states: "The mainte-
nance of unusually high standards of
honesty, integrity, impartiality, and
conduct by Government employees
and special Government employees is
essential to assure the proper perform-
ance of the Government business and
the maintenance of confidence by citi-
zens in their Government."
? 0.735-7 Special requirements of the De-
partment.
The close and sensitive relationship
between the Department of Commerce
and the Nation's business community
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or nonberformance of the employee's
official duty or by actions of the De-
partment.
(b) Exceptions. The following excep-
tions are authorized to the limitation
In paragraph (a) of this section:
(1) Acceptance of a gilt, gratuity.
favor, entertainment, loan, payment of
expenses, fee, compensation, or other
thing of monetary value incident to
obvious family or personal relation-
ships (such as those between the em-
ployee and the parents, children, or
spouse of the employee) when the cir-
cumstances make it clear that it is
those relationships rather than the
business of the persons concerned
which are the motivating factors.
(2) Acceptance of food and refresh-
ments of nominal value on infrequent
occasions in the ordinary course of a
luncheon or dinner meeting or other
meeting or on an inspection tour
where an employee may properly be in
attendance. For the purpose of this
section, "nominal value" means that
the value of the food or refreshments
shall not be unreasonably high under
the circumstances.
(3) Acceptance of loans from banks
or other financial institutions on cus-
tomary terms and on security not in-
consistent with paragraph (a) of this
section, to finance proper and usual
activities of employees, such as home
mortgage loans.
(4) Acceptance of unsolicited adver-
tising or promotional material, such as
pens, pencils, note pads, calendars, and
other items of nominal intrinsic value.
(5) Acceptance of a gift, gratuity,
favor, entertainment, loan, payment of
expenses, fee, compensation, or other
thing of monetary value when such ac-
ceptance is determined by the head of
the operating unit concerned to be
necessary and appropriate in view of
the work of the Department and the
duties and responsibilities of the em-
ployee. A copy of each such determi-
nation shall be sent to the counselor
of the Department.
(6) Special Government employees
are covered by this section only while
employed by the Department or in
connection with such employment.
(c) [Reserved]
(d) Gifts to superiors. An employee
shall not solicit a contribution from
calls for special vigilance on the part
of all officers and employees to avoid
even any appearance of impropriety.
The regulations set forth in this part
have been adopted in order to promote
the efficiency of the service in the
light of the particular ethical and ad-
ministrative problems arising out of
the work of the Department.
*0.735-8 Limitations on private activities
and interests.
It is the policy of the Department to
place as few limitations as possible on
private activities or interests consist-
ent with the public trust and the ef-
fective performance of the official
business of the Department. There is
no general statutory or regulatory lim-
itation on the conduct of private activ-
ities for compensation by officers or
employees of the Department, when
the private activity is not connected
with any interest of the Government.
When the private activity does not
touch upon some interest, it may be
conducted if it falls outside applicable
statutory limitations and regulatory
limitations.
Subpart C?Statutory Limitations
Upon Employee Conduct
0.735-9 Employee responsibilities.
Each employee and special Govern-
ment employee has a positive duty to
acquaint himself with the ntun.erous
statutes relating to the ethical and
other conduct of employees and spe-
cial employees of the Department and
of the Government Appendix A of this
part contains a listing of the more im-
portant statutory provisions of general
applicability. In case of doubt on any
question of statutory application to
fact situations that may arise, the em-
ployee should consult the text of the
statutes, which will be made available
to him by his organization unit, and
he should also avail himself of the
legal counseling provided by this part.
Subpart D?Regulatory Limitations
Upon Employee Conduct
? 0.735-10 Administrative extension of
statutory limitations.
The provisions of the statutes identi-
fied in this part which relate to the
ethical and other conduct of Federal
employees are adopted and will be en-
forced as administrative regulations,
violations of which may in appropriate
cases be the basis for disciplinary
action, including removal. The fact
that a statute which may relate to em-
ployee conduct is not identified in this
part does not mean that it may not be
the basis for disciplinary action
against an employee.
10.735-10a Proscribed actions.
An employee shall avoid any action,
whether or not specifically prohibited
by this subpart, 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 confi-
dence of the public in the integrity of
the Government.
6
? 0.735-11 Gifts, entertainment, and
favors.
(a) General limitations. Except as
provided in paragraphs (b) and (f ) of
this section, an employee shall not so-
licit or accept, directly or indirectly,
any gift, gratuity, favor, entertain-
ment, loan, payment of expenses, fee,
compensation, or any other thing of
monetary value, for himself or an-
other person, from a person who:
(1) Has, or is seeking to obtain, con-
tractual or other business or financial
relations with the Department of
Commerce;
(2) Conducts operations or activities
that are regulated by the Department
of Commerce; or
(3) Has interests that may be sub-
stantially affected by the performance
7
? 0.735-12
another employee for a gift to an offi-
cial 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 vol-
untary gift of nominal value or dona-
tion in a nominal amount made on a
special occasion such as marriage, ill-
ness, or retirement. An employee who
violates these requirements shall be
removed from the service.
(e) Gifts from a foreign government.
An employee shall not accept a gift,
present, decoration, or other thing
from a foreign government unless ac-
ceptance is (1) authorized by Congress
as provided by the Constitution and in
Public Law 89-673, 80 Stat. 952. and
(2) authorized by the Department of
Commerce as provided in Administra-
tive Order 202-739.
(f) Reimbursement for travel ex-
penses and subsistence. Neither this
section nor ? 0.735-12 precludes an em-
ployee from receipt of bona fide reim-
bursement, unless prohibited by law,
for expenses of travel and such other
necessary subsistence as is compatible
with this part for which no Govern-
ment payment or reimbursement is
made. However, this paragraph does
not allow an employee to be reim-
bursed, 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 reimburse-
ment is proscribed by Decision B-
128527 of the Comptroller General
dated March 7, 1967. (Requirements
applicable to Department of Com-
merce employees are set forth in De-
partment of Commerce Administrative
Order 203-9.)
? 0.735-12 Outside employment or other
activity.
(a) Incompatible outside employ-
ment or other outside activity. An em-
ployee shall not engage in outside em-
ployment or other outside activity not
compatible (1) with the full and
proper discharge of the duties and re-
sponsibilities of his Government em-
ployment, (2) with the policies or in-
terests of the Department, or (3) with
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?0J35-12
the maintenance of the highest stand-
ards of ethical and moral conduct. In-
compatible activities include but are
not limited to:
(I) Acceptance of a fee, compensa-
tion, gift, payment of expense, or any
other thing of monetary value in cir-
cumstances in which acceptance may
result In, or create the appearance of,
a conflict of interest;
(ii) Outside employment which tends
to impair the employee's mental or
physical capacity to perform his Gov-
ernment duties and responsibilities in
an acceptable manner;
(iii) Employment with any foreign
government, corporation, partnership.
Instrumentality, or individual unless
authorized by the Department;
(iv) Employment by, or service ren-
dered under contract with, any of the
persons listed in ? 0.735-11(a);
(v) Receipt by an employee, other
than a special Government employee,
of any salary or anything of monetary
value from a private source as compen-
sation for his services to the Govern-
ment. (18 U.S.C. 209).
(b) Improper benefit from official ac-
tivity. (1) No employee of the Depart-
ment shall receive compensation (e.g.,
an honorarium) or anything of mone-
tary value, other than that to which
he is duly entitled from the Govern-
ment, for the performance of any ac-
tivity during his service as such em-
ployee of the Department and within
the scope of his official responsibil-
ities.
(2) As used in this paragraph,
"within the scope of his official re-
sponsibilities" means in the course of
or in connection with his official re-
sponsibilities. (See 29 Comp. Gen. 163;
30 id. 246; 32 id. 454; 35 id. 354; B-
131371, July 17, 1957.)
(3) An activity shall ordinarily be
considered to be in the course of or in
connection with an employee's official
responsibilities if it is performed as a
result of an invitation or request
which is addressed to the Department
or a component thereof, or which is
addressed to an employee at his office
at the Department, or which there is
reason to believe is extended partly be-
cause of the official position of the
employee concerned. (When in doubt,
it may be asked whether it is likely
This 15?Commerce and Foreign Trade
that the invitation would have been
received if the recipient were not asso-
ciated with the Department.) Whether
an employee is on leave while perform-
ing an activity shall be considered ir-
relevant in determining whether an
activity is performed in the course of
or in connection with the employee's
official responsibilities.
(4) Acceptance of a gift or bequest
on behalf of the Department shall be
made in accordance with Department
Order 3 and Administrative Order 203-
9.
(c) Teaching, lecturing, and writing.
Employees are encouraged to. engage
in teaching, lecturing, and writing that
is not prohibited by law. Executive
Order 11222, 5 CFR Part 735, or the
regulations in this part and Adminis-
trative Order 201-4, "Writing for Out-
side Publication." subject to the fol-
lowing conditions:
(1) An employee shall not, either for
or without compensation, engage in
teaching, lecturing, or writing, includ-
ing teaching, lecturing, or writing for
the purpose of the special preparation
of a person or class of persons for an
examination of the Civil Service Com-
mission or the Board of Examiners for
the Foreign Service, that depends 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 Assistant Secretary for Adminis-
tration or his designee gives written
authorization for the use of nonpublic
Information on the basis that the use
Is in the public interest.
(2) No employee shall receive com-
pensation or anything of monetary
value for any consultation, lecture, dis-
cussion, writing, or appearance, the
subject matter of which is devoted
substantially to the responsibilities,
programs, or operations of the Depart-
ment of Commerce, or which draws
substantially on official data or ideas
which have not become part of the
body of public information. As used in
this subparagraph, "the body of public
Information" shall mean information
which has been disseminated widely
among segments of the public which
may be affected by or interested in the
information concerned, or which is
Subtitle A?Office of the Sedy. of Commerce
known by such segments of the public
to be freely available on request to a
Government agency.
(d) (Reserved]
(e) Application of the limitations.
This section does not preclude an em-
ployee from:
(1) (Reserved]
(2) Participation in the activities of
National or State political parties not
proscribed by law.
(3) Participation in the affairs of, or
acceptance of an award for a mer1ts:74"i-
ous public contribution or achieve-
ment given by a charitable, religious,
professional, social, fraternal, nonprof-
it educational and recreational, public
service, or civic organization.
(32 FR 15222, Nov. 2, 1967, as amended at 33
FR 9765, July 6. 19681
? 0.735-13 Financial interests.
(a) An employee shall not:
(I) Have a direct or indirect financial
interest that conflicts substantially, or
appears to conflict substantially, with
his Government duties and responsi-
bilities; or
(2) Engage in, directly or indirectly,
a financial transaction as a result of,
or primarily relying on, information
obtained through his Government em-
ployment.
(b) No employee shall participate in
any manner, on behalf of the United
States, in the negotiation of contracts,
the making of loans, and grants, the
granting of subsidies, the fixing of
rates, or the issuance of valuable per-
mits or certificates, or in any investi-
gation or prosecution, or in the trans-
action of any other official business,
which affects chiefly a person (1) by
whom he has been employed or with
whom he has had any economic inter-
est within the preceding 2 years, or (2)
with whom he has any economic inter-
est or any pending negotiations con-
cerning a prospective economic inter-
est, except with express prior authori-
zation as provided for in Subpart G of
this part.
(c) This section does not preclude an
employee from having a financial in-
terest or engaging in financial transac-
tions to the same extent as a private
citizen not employed by the Govern-
ment so long as it is not prohibited by
law, Executive order, Civil Service reg-
?0.735-15
ulations (5 CFR Part 735), or regula-
tions in this part.
(d) The financial (or economic) in-
terests described below are too remote
or too inconsequential to affect the in-
tegrity of an employee's services in
any matter involving them, and are
thereby exempted from the prohibi-
tions of 18 U.S.C. 208(a). and do not
exclude such employee's participation
in the transaction of any official busi-
ness involving such financial or eco-
nomic interests:
Deposits in a bank, savings and loan asso-
ciation, building association, credit union or
similar financial institution; policies held
with an insurance company; constructive in-
terests in companies and other entities
owned or held by a mutual fund or other di-
versified investment company in which the
employee has an interest.
These exempted financial (or econom-
ic) interests need not be reported by
employees in their statements of em-
ployment and financial interests re-
ferred to in ? 0.735-21.
(18 U.S.C. 298(b); 5 CFR 735.404a)
(32 FR 15222, Nov. 2, 1967, as amended at 41
FR 34939, Aug. 18, 19761
? 0.735-14 Use of Government time or
property.
(a) An employee shall not directly or
indirectly use, or allow the use of.
Government time or property of any
kind, including property leased to the
Government, for other than officially
approved activities.
(b) Each employee shall protect and
conserve Government property, in-
cluding equipment, supplies, and other
property entrusted or issued to him.
? 0.735-15 Misuse of employment or infor-
mation.
(a) Use of Government employment.
An employee shall not use his Govern-
ment employment for a purpose that
is, or gives the appearance of being,
motivEted by the desire for private
gain for himself or another person,
particularly one with whom he has
family, business, or financial ties.
(b) Use of inside information. For
the purpose of furthering a private in-
terest, an employee shall not, except
as provided in ? 0.735-12(c), directly or
Indirectly use, or allow the use of, in-
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? 0.735-16
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Title 15?Commerce and Foreign Trade Subtftlis A?Office of
formation which has been or has the
appearance of having been obtained
through or in connection with his
Government employment and which
has not been made available to the
general public. ?
(c) Coercion. An employee shall not
use his Government employment to
coerce, or give the appearance of co-
ercing, a person to provide financial
benefit to himself or another person,
particularly one with whom he has
family, business, or financial ties.
(d) Disclosure of restricted informa-
tion. No employee shall divulge re-
stricted commercial or economic infor-
mation, or restricted Information con-
cerning the personnel or operations of
any Government agency, or release
any such information in advance of
the time prescribed for its authorized
release.
(e) Discrimination. No employee,
acting in his official capacity, shall, di-
rectly or indirectly, authorize, permit.
or participate in any act or course of
conduct which, on the ground of race,
color, creed, national origin, or sex, ex-
cludes from participation, denies any
benefit to, or otherwise subjects to dis-
crimination any person under any pro-
gram or activity administered or con-
ducted by the Department or one of
Its units, or such employee. (See De-
partment Order 195.)
? 0.735-16 Indebtedness.
(a) 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 purposes of this section, "a
just financial obligation" means one
acknowledged by the employee or re-
duced to judgment by a court, and "In
a proper and timely manner" means in
a manner which, in the view of the De-
partment, does not, under the circum-
stances, reflect adversely on the Gov-
ernment as his employer.
(b) In the event of dispute between
an employee and an alleged creditor.
this section does not require the De-
partment to determine the validity or
amount of the disputed debt.
? 0.735-17 Gambling, betting, and lotter-
ies.
An employee shall not participate
while on Government-owned or leased
property or while on duty for the Gov-
ernment. in any gambling activity in-
cluding the operation of a gambling
device, in conducting a lottery or pool.
in a game for money or property or in
selling or purchasing a numbers slip or
ticket. However, this section does not
preclude activities (a) necessitated by
an employee's law enforcement duties.
or (h) under section 3 of Executive
Order 10927 (relating to solicitations
conducted by organizations composed
of civilian employees or members of
the armed forces among their own
members for organizational support or
for benefit or welfare funds for their
own members) and similar agency-ap-
proved activities.
? 0.735-18 General conduct prejudicial to
the Government.
(a) General policy. Officers and em-
ployees of the Federal Government
are servants of the people. Because of
this, their conduct must, in many in-
stances, be subject to more restrictions
and to higher standards than may be
the case in certain private employ-
ments. They are expected to conduct
themselves in a manner which will re-
flect favorably upon their employer.
Although the Government is not par-
ticularly interested in the private lives
of its employees, it does expect them
to be honest, reliable, trustworthy,
and of good character and reputation.
They are expected to be loyal to the
Government, and to the department
or agency in which they are employed.
(b) Specific policy. An employee
shall not engage in criminal, infamous,
dishonest, immoral, or notoriously dis-
graceful conduct, or other conduct
prejudicial to the Government.
(c) Regulations applicable to public
buildings and grounds. Each employee
is responsible for knowing and comply-
ing with regulations of the General
Services Administration and of the De-
partment of Commerce applicable to
public buildings and grounds.
the Sedy. of Commerce ? 0.735-22
10.735-19 Reporting undue influence to
superiors.
Each employee shall report to his
superior any instance in which an-
other person inside or outside the Fed-
eral Government uses or attempts to
use undue influence to induce, by
reason of his official Government posi-
tion, former Government employment,
family relationship, political position,
or otherwise, the employee to do or
omit to do any official act in deroga-
tion of his official duty.
- Subpart E?Statements of
Employment and Financial Interests
0.735-20 General provisions.
(a) In order to carry out the purpose
of this part, certain employees of the
Department, specified in or pursuant
to this part, will be required to submit
statements of outside employment and
financial interests for review designed
to disclose conflicts of interest, appar-
ent conflicts of interest on the part of
employees, and other matters within
the purview of this part.
(b) When a conflict or apparent con-
flict of interest on the part of an em-
ployee or other question of compliance
with the provisions of this part arises
and is not resolved at a lower level
within the Department, e.g., by appro-
priate remedial action, the informa-
tion concerning the matter shall be re-
ported to the Secretary through the
counselor for the Department desig-
nated in ? 0.735-38.
(c) In the event of a conflict or ap-
parent conflict of interest on the part
of an employee or other question of
compliance with the provisions of this
part, the employee concerned shall be
provided an opportunity to explain
the matter. After consideration of the
conflict or apparent conflict of inter-
est or other question of compliance,
and the employee's explanation there-
of, appropriate action shall be taken.
*0.735-21 Form and content of state-
ments.
(a) Statements of employment and
financial interests shall be submitted
as far as practicable on one of the fol-
lowing forms, as appropriate:
(1) Form CD-220, "Confidential
Statement of Employment and Finan-
cial Interests (For Use by Government
Employees Other Than Special Gov-
ernment Employees)"; or
(2) Form CD-219, "Confidential
Statement of Employment and Finan-
cial Interests (For Use by Special Gov-
ernment Employees)."
(b) Each of the foregoing forms
shall contain, as a minimum, the infor-
mation required by the formats pre-
scribed by the Civil Service Commis-
sion in the Federal Personnel Manual.
Questions on a statement of employ-
ment and financial interests that go
beyond, or are in greater detail than, -
those included on the Commission's
formats may be included on a state-
ment only with the approval of the As-
sistant Secretary for Administration
and the Commission.
(c) [Reserved]
(d) The employee will not be re-
quired to reveal precise amounts of fi-
nancial interest when such informa-
tion is not necessary for a proper de-
termination as to whether there Is any
apparent conflict of interest.
? 0.735-22 Employees required to submit
statements.
Except as provided in ? 0.735-23, a
statement of employment and finan-
cial interests shall be submitted by the
following employees other than spe-
cial Government employees:
(a) Employees paid at a level of the
Executive Schedule in subchapter II
of chapter 53 of Title 5, United States
Code.
(b) Employees classified at GS-13 or
above under section 5332 of Title 5,
United States Code, or at a compara-
ble pay level under another authority,
who are in positions the basic duties
and responsibilities of which are deter-
mined by the head of the operating
unit concerned to require the incum-
bent to make a Government decision
or to take a Government action in
regard to:
(1) Contracting or procurement;
(2) Administering or monitoring
grants or subsidies;
(3) Regulating or auditing private or
other non-Federal enterprise; or
(4) Other activities where the deci-
sion or action has an economic impact
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OT me Sociy. of Commerce
on the interests of any non-Federal
enterprise.
Each employee who occupies a posi-
tion in one of the above-listed catego-
ries and who is not excluded from the
reporting requirement shall be noti-
fied that he is subject to the reporting
requirement.
(c) The following employees classi-
fied at GS-13 or above under section
5332 of Title 5. United States Code, or
at a comparable pay level under an-
other authority, not otherwise subject
to paragraph (b) of this section:
(1) Employees in grade GS-16 or
above, or in comparable or higher po-
sitions.
(2) Employees in Schedule C posi-
tions.
(3) Employees in hearing examiner
or hearing officer positions.
(4) Persons employed as experts,
consultants, or advisers.
(5) Employees in positions or catego-
ries of positions, regardless of their of-
ficial title, identified in Appendix B of
this part.
(d) Employees classified below CIS-
13 under section 5332 of Title 5,
United States Code, or at a compara-
ble pay level under another authority,
who are in positions or categories of
*.lositions, regardless of their official
title, identified in Appendix C to this
Part.
(e) Appendices B and C.
(1) Appendix B to this part shall be
maintained and changes made therein
In accordance with the criteria in 5
CFR 735.403(c) and in accordance with
the procedure in this paragraph. Ap-
pendix C to this part shall be main-
tained and changes made therein in
accordance with the criteria in 5 CFR
735.403(d) and in accordance with the
procedure in this paragraph.
(2) Heads of operating units and
heads of offices in the Office of the
Secretary shall, in conformity with
the above-cited criteria, recommend
changes in Appendix B and Appendix
C to the Assistant Secretary for Ad-
ministration for approval. Changes in
Appendix C shall be submitted, with
specific justification, to the Civil Serv-
ice Commission for further prior ap-
proval.
(3) Incumbents of positions added to
Appendix B or to Appendix C ,shall
become subject to the reporting re-
quirements of this part upon receipt
of notification that their position is
subject to such requirements. Appen-
dix B and Appendix C shall be repub-
lished annually to reflect changes in
the lists.
? 0.735-22a Employee's complaint on
filing requirement.
An employee shall have an opportu-
nity for review through the Depart-
ment of Commerce grievance proce-
dure, as provided by Administrative
Order 202-770, of a complaint by him
that his position has been improperly
included under the regulations of the
Department as one requiring the sub-
mission of a statement of employment
and financial interests.
? 0.735-23 Employees not required to
submit statements
(a). Employees in positions that meet
the criteria in paragraph (b), (c), or (d)
of *0.735-22 may be excluded from the
reporting requirement when the head
of the operating unit concerned deter-
mines that:
(1) The duties of a position are such
that the likelihood of the incumbent's
involvement in a conflicts-of-interest
situation is remote; or
(2) The duties of a position are at
such a level of responsibility that the
submission of a statement of employ-
ment and financial interests is not nec-
essary because of the degree of super-
vision and review over the incumbent
or the inconsequential effect on the
integrity of the Government.
(b) A statement of employment and
financial interests is not required by
this part from the Secretary of Com-
merce, from the head of an independ-
ent agency for which the Department
of Commerce performs administrative
services, or from a full-time member of
a committee, board, or commission ap-
pointed by the President. These em-
ployees are subject to separate report-
ing requirements under section 401 of
Executive Order 11222.
? 0.735-24 Time and place for submission
of original statements.
(a) An employee required to submit
a statement of employment and finan-
cial interests under this part shall
submit that statement not later than:
(1) Ninety days after the effective
date of this part if the employee is em-
ployed by the Department on or
before the effective date of this part;
or
(2) Thirty days after the employee's
entrance on duty date, but in no case
earlier than 90 days after the effective
date of this part.
(b) Statements shall be submitted to
a personnel officer specified by the
head of the operating unit or to such
other person as the head of the oper-
ating unit, with the approval of the
Secretary, may specify. Secretarial of-
ficers and heads of operating units
shall submit their statements to the
Secretary or to such person as the Sec-
retary may designate.
0.735-25 Supplementary statements.
Changes in, or additions to, the in-
formation contained in an employee's
statement of employment and finan-
cial interests shall be reported in a
supplementary statement as of June
30 each year, except when the Civil
Service Commission authorizes a dif-
ferent date on a showing by the De-
partment of necessity therefor. (The
Commission has authorized filing of
the supplementary statement for 1967
as of Sept. 30, 1967.) If no changes or
additions occur, a negative report is re-
quired. Notwithstanding the filing of
the annual report required by this sec-
tion, each employee shall at all times
avoid acquiring a financial interest
that could result, or taking an action
that would result, in a violation pf the
conflicts-of-interest provisions bf sec-
tion 208 of Title 18. United States
Code, or Subpart D of this part.
110.735-26 Interests of employees' rela-
tives.
The interest of a spouse, minor
child, or other member of an employ-
ee's inunediate household is consid-
ered to be an interest of the employee.
For the purpose of this section,
"member of an employee's inunediate
household" means these blood rela-
tions who are members of the employ-
ee's household.
? 0.735-29
? 0.735-27 Information not known by em-
ployees.
If any information required to be in-
cluded on a statement of employment
and financial interests or supplemen-
tary 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 informa-
tion in his behalf.
*0.735-28 Information not required.
This part does not require an em-
ployee to submit on a statement of
employment and financial interests or
supplementary statement any infor-
mation relating to the employee's con-
nection with, or interest in, a profes-
sional society or a charitable, religious,
social, fraternal, recreational, public
service, civic, or political organization
or a similar organization not conduct-
ed as a business enterprise. For the
purpose of this section, educational
and other institutions doing research
and development or related work in-
volving grants of money from or con-
tracts with the Government are
deemed "business enterprises" and are
required to be included in an employ-
ee's statement of employment and fi-
nancial interests.
? 0.735-29 Confidentiality of employees'
statements.
(a) No employee may have access to
a statement of employment and finan-
cial interests, or a supplementary
statement, unless his official duties
make access necessary. Each employee
who has access to such a statement is
responsible for maintaining it In confi-
dence and shall not allow access to, or
allow information to be disclosed
from, a statement .except to an em-
ployee of the Department of Com-
merce or the Civil Service Commission
to carry out the purpose of this part
or to other persons as the Civil Service
Commission or the Assistant Secretary
for Administration may determine for
good cause shown. (The foregoing
limitations do not apply to release of
Information by an employee with re-
spect to a statement he has submitted
under this section.)
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iitlo 15?Common* and Foreign Trade Subtitle A?Offic? of the Sedy. of Commerce ? 0.735-36
(b) The employees designated in
paragraph (b) of ? 0.735-24 to receive
statements are authorized to review
and retain the statements and are re-
sponsible for maintaining the state-
ments in confidence, as provided in
this section.
I 0.735-30 Relation of this part to other
requirements.
(a) The requirement that employees
submit statements of employment and
financial interests and supplementary
statements under this part is in addi-
tion to, and not in substitution for, or
In derogation of, any similar require-
ment imposed by law, order, or regula-
tion.
(b) The submission of a statement or
supplementary statement by an em-
ployee does not permit him or any
other person to participate in a matter
in which his or the other person's par-
ticipation is prohibited by law, order,
or regulation, including this part.
0.735-31 Special Government employees.
(a) Special Government employees
shall be required to report:
(1) All other employment; and
(2) Financial interests specified on
Fnrm CD-219.
(b) A waiver may be granted to the
requirements of this section in the
case of a special Government employ-
ee who is not a consultant or expert
(as defined in. Chapter 304 of the Fed-
eral Personnel Manual) when a deter-
mination is made that the duties of
the position held by that special Gov-
ernment employee are of such a
nature and at such a level of responsi-
bility that the submission of the state-
ment by the incumbent is not neces-
sary to protect the integrity of the
Government. Any such waiver shall be
approved by the head of the operating
unit concerned or his designee. A copy
of the waiver shall be filed with the
deputy counselor for the organization
unit concerned.
(c) The original statement of em-
ployment and financial interests re-
quired to be submitted by a special
Government employee shall be sub-
mitted not later than his entry on
duty. Each special employee shall
keep his statement current through-
out his employment with the Depart-
ment by the submission of supplemen-
tary statements.
Subpart F?Supplementary
Regulations
? 0.735-32 Departmental.
The Assistant Secretary for Admin-
istration may prescribe supplementary
Instructions consistent with this part.
*0.735-33 Operating units. ?
Each operating unit is hereby au-
thorized and directed to prescribe,
after approval by the Assistant Secre-
tary for Administration, such addition-
al regulations not inconsistent with
this part as may be necessary to effec-
tuate the general purpose of this part
in the light of its individual operating
requirements, including but not limit-
ed U. pertinent statutory provisions
such as:
(a) 35 U.S.C. 4, 122 (Patent Office);
(b) 46 U.S.C. 1111(b) (Maritime Ad-
ministration);
(c) Certain provisions of the Defense
Production Act of 1950, e.g., 50 U.S.C.
App. 2160(b)(2) (avoidance of conflicts
of interest), 50 U.S.C. App. 2160(b)(6)
(financial statements), and 50 U.S.C.
App. 2160(1) (prohibition of use of con-
fidential information for purposes of
speculation) (Business and Defense
Services Administration and any other
primary operating unit affected); and
(d) Certain provisions of Public Law
89-136, the Public Works and Econom-
ic Development Act of 1965, e.g.. sec-
tion 711 (restriction on employing cer-
tain EDA employees by applicants for
financial assistance), and section
710(b)( (embezzlement). false book en-
tries, sharing in loans, etc., and giving
out unauthorized information for
speculation).
? 0.735-34 Effective date of supplementary
regulations.
Supplementary regulations Pre-
scribed pursuant to ? 0.735-33, shall
become effective upon approval by the
issuing officer unless a different date
is required by law or a later date is
specified therein.
Subpart G?Administration
0.735-35 Responsibilities of employees.
It is the responsibility of each em-
ployee:
(a) To assure, at the outset of his
employment, that each of his interests
and activities is consistent with the re-
quirements established by or pursuant
to this part;
(b) To submit a statement of em-
ployment and financial interests at
such times and in such form as may be
specified in or pursuant to this part:
(c) To certify, upon entering on duty
in the Department, that he has read
this part and applicable regulations
supplementary thereto;
(d) To obtain prior written authori-
zation of any interest or activity about
the propriety of which any doubt
exists in the employee's mind, as pro-
vided in ? 0.735-39;
(e) To confine each of his interests
and activities at all times within the
requirements established by or pursu-
ant to this part, including any authori-
zations granted pursuant to this part;
and
(f) To obtain a further written au-
thorization whenever circumstances
change, or the nature or extent of the
interest or activity changes, in such a
manner as to involve the possibility of
a violation or appearance of a viola-
tion of a limitation or requirement
prescribed in or pursuant to this part.
? 0.735-36 Responsibilities of operating
units.
The head of each operating unit, or
his designee, shall:
(a) Furnish or make available to
each employee a copy of this part (or
a comprehensive summary thereof)
within 90 days after approval of this
part by the Civil Service Commission,
and, upon their issuance, a copy of any
regulations supplementary thereto (or
a comprehensive summary thereof):
(b) Furnish or make available to
each new employee at the time of his
entrance on duty a copy of this part as
it may be amended and any supple-
mentary regulations (or a comprehen-
sive summary thereof):
(c) Bring this part (or as it may be
amended and any supplementary regu-
lations thereto) to the attention of
each employee annually, and at such
other times as circumstances may war-
rant as may be determined by the As-
sistant Secretary for Administration;
(d) Have available for review by em-
ployees, as appropriate, copies of laws.
Executive orders, this part, supple-
mentary regulations, and pertinent
Civil Service Commission regulations
and instructions relating to ethical
and other conduct of Government em-
ployees; _
(e) Advise each employee who Is a
special Government employee of his
status for purposes of 18 U.S.C. 203
and 205:
(f) Require each employee specified
in g 0.735-22 to submit a statement of
employment and financial interests, as
provided by or pursuant to this part;
(g) Develop an appropriate forms
with the approval of the counselor of
the Department, on which the em-
ployee may certify that he has read
this part and applicable regulations
supplementary thereto, in accordance
with ? 0.735-35(c), and on which he
may, if he so desires, indicate that he
has a private activity or interest about
which he requests advice and guidance
as provided by ? 0.735-38.
(h) Require each employee upon en-
tering on duty and at such other times
as may be specified, to execute the cer-
tification required by ? 0.735-35(c);
(i) Report to the program Secretari-
al Officer concerned and to the Assist-
ant Secretary for Administration
promptly any instance in which an
employee, after notice, fails to submit
the certification required under
? 0.735-35(c) or a statement of employ-
ment or financial interests required
under this part within 14 calendar
days following the prescribed time
limit for doing so; and
(I) Take action to impress upon, each
employee required to submit a state-
ment of employment and financial in-
terest:, upon his supervisor, and upon
employees with whom the employee
works, their responsibility as follows:
(1) The employee's supervisor is re-
sponsible (I) for excluding from the
range of duties of the employee any
contracts or other transactions be-
tween the Government and his outside
employer, clients, or entities in which
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I inis 10.-.A.OMMOTC? one roreIgn Trade Subtitle A?Office of the Sedy. of Commerce
he has an interest within the purview
of this part, and (ii) for overseeing the
employee's activities in order to insure
that the public interest is protected
from improper conduct on his part
and that he will not, through igno-
rance or inadvertence, embarrass the
Government or himself.
(2) The employee's supervisor and
employees with whom he works are re-
sponsible for avoiding the use of the
employee's services in any situation in
which a violation of law, regulation, or
ethical standards is likely to occur or
to appear to occur.
(3) The supervisor of an employee is
'responsible for initiating prompt and
proper disciplinary or remedial action
when a violation, intentional or inno-
cent, is detected.
(4) Employees shall avoid divulging
to a special Government employee
privileged Government information
which is not necessary to the perform-
ance of his governmental responsibili-
ty or information which directly in-
volves the financial interests of his
non-Government employer.
(5) An employee shall make every
effort in his private work to avoid any
personal contact with respect to nego-
tiations with the Department for con-
tracts, grants, or loans, if the subject
matter is related to the subject matter
of his Government employment.
When this is not possible, he may par-
ticipate if not otherwise prohibited by
law (e.g., 18 U.S.C. 203 and 205) in the
negotiations for his private employer
only with the prior approval of the
head of the operating unit concerned.
? 0.735-37 Procedure.
The review of statements of employ-
ment and financial interests shall in-
clude the following basic measures,
among others:
(a) Statements shall be submitted to
the designated officer, who will review
each employee's statement of employ-
ment and financial interests to ascer-
tain whether they are consistent with
the requirements established by or
pursuant to this part. (See ?0.735-
24(b).)
(b) Where the statement raises any
question of compliance with the re-
quirements of this part, it shall be sub-
mitted to a deputy counselor for the
organization unit concerned. The
deputy counselor may, in his discre-
tion, utilize the advice and services of
others (including departmental facili-
ties) to obtain further information
needed to resolve the questions.
(c) The designated officer shall
maintain the statements of employ-
ment and financial interests in a file
apart from the official personnel files
and shall take every measure practica-
ble to insure their confidentiality.
Statements of employment and finan-
cial interests shall be preserved for 5
years following the separation of an
employee from the Department or fol-
lowing termination of any other rela-
tionship under which the individual
rendered service to the Department,
except as may be otherwise authorized
by the Assistant Secretary for Admin-
istration or as required by law.
? 0.735-38 Availability for counseling.
(a) The General Counsel of the De-
partment shall:
(1) Serve as the counselor for the
Department of Commerce with respect
to matters covered by the basic provi-
sions cited in ? 0.735-2(a) and other-
wise by or pursuant to this part;
(2) Serve as the Department of Com-
merce designee to the Civil Service
Commission on matters covered by
this part; and
(3) Coordinate the counseling ser-
vices provided under this part and
assure that counseling and interpreta-
tions on questions of conflicts of inter-
est and other matters covered by this
part are available to deputy counselors
designated under paragraph (b) of this
section.
(b) The counselor shall designate
employees who shall serve as deputy
counselors for employees of the De-
partment of Commerce with respect to
matters covered by or pursuant to this
part and shall give authoritative
advice and guidance to each employee
who seeks advice and guidance on
questions of conflict of interests and
other matters covered by or pursuant
to this part.
(c) Each operating unit shall notify
its employees of the availability of
counseling services and of how and
where these services are available.
This notification shall be given within
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90 days after approval of this part by
the Civil Service Commission and peri-
odically thereafter. In the case of a
new employee appointed after the
foregoing notification, notification
shall be made at the time of his en-
trance on duty.
(d) In each operating unit a deputy
counselor shall advise and counsel
each employee concerning any adjust-
ments necessary in his financial inter-
ests or activities, or in any contemplat-
ed interests or activities, in order to
meet the requirements established by
or pursuant to this part.
?0.735-39 Authorizations.
All requests for authorizations re-
quired under this part shall be ad-
dressed to the head of the operating
unit concerned. In the Office of the
Secretary such requests shall be ad-
dressed to the Secretary or such
person as he may designate. When
granted, authorizations will be in writ-
ing, and a copy of each authorization
will be filed in the employees' official
personnel file.
(a) In case of doubt, or upon the re-
quest of the employee concerned,
cases or questions will be forwarded to
the counselor or a deputy counselor.
(See ? 0.735-38.)
(b) Where an activity requested to
be authorized can be conducted as of-
ficial business, it shall not be author-
ized as a private activity, but shall be
conducted as official business.
(c) Where authorizations involve
speaking, writing, or teaching, use of
the official title of the employee for
identification purposes may be author-
ized, provided the employee makes it
clear that his statements and actions
are not of an official nature.
(d) If an authorization has been
granted for a specific activity or inter-
est. and the activity or interest is sub-
sequently deemed to constitute a viola-
tion of the limitations or requirements
prescribed in or pursuant to this part,
the employee concerned shall be noti-
fied in writing of the cancellation of
the authorization and shall modify or
stop the activity or interest involved,
as requested.
? 0.735-41
? 0.735-40 Disciplinary and other remedial
action.
(a) Violation of a requirement estab-
lished in or pursuant to this part shall
be cause for appropriate disciplinary
action, which may be in addition to
any penalty prescribed by law.
(b) When, after consideration of the
explanation of the employee provided
by ? 0.735-20(c), the reviewing officer,
in cooperation with the responsible su-
pervisory official, decides that remedi-
al action is required, he will take or
cause to be taken immediate action to
end the conflict or appearance of con-
flict of interest. Remedial action may
Include, but is not limited to:
(1) Changes in assigned duties;
(2) Divestment by the employee of
his conflicting interest;
(3) Disciplinary action (including re-
moval from the service); or
(4) Disqualification for a particular
assignment.
Remedial action, whether disciplinary
or otherwise, shall be effected in ac-
cordance with applicable laws, Execu-
tive orders, and regulations.
(c) No disciplinary or remedial
action may be taken under this section
against an employee of another Feder-
al department or agency on detail to
the Department of Commerce other
than through and with the concur-
rence of the detailed employee's em-
ploying agency.
? 0.735-41 Inquiries and exceptions.
(a) Inquiries relating to legal aspects
of the limitations set forth in or cited
"in or pursuant to this part should be
submitted to the appropriate deputy
counselor. Inquiries relating to other
aspects of this part or regulations sup-
plementary thereto should be referred
to the appropriate personnel office.
(b) Within the limits of administra-
tive discretion permitted to the De-
partment. exceptions to the require-
ments of this part may be granted
from time to time in unusual cases by
the head of the operating unit, when-
ever the facts indicate that such an
exception would promote the efficien-
cy of the service. Each request for
such an exception should be submitted
in writing to the head of the operating
unit concerned, and shall contain a
II?
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_ %AT arta rorelipt Trade Subtitle A?Office of the Secty. of Commerce
full statement of the Justification for
the request. Reports concerning such
requests, If approved, shall be forward-
ed to the program Secretarial Officer
concerned and to the Assistant Secre-
tary for Administration by the head of
the operating unit concerned.
APPENDIX A?STATUTES GOVERNING CONDUCT
or FEDERAL Earnortzs
There are numerous statutes pertaining to
the ethical and other conduct of Federal
employees, far too many to attempt to list
them all. Consequently, only the more im-
portant ones of general applicability are re-
ferred to in this Appendix.
A. BRIBERY AND GRANT
.01 Title 18, U.S.C., section 201, prohibits
anyone from bribing or attempting to bribe
a public official by corruptly giving, offer-
ing, or promising him or any person selected
by him, anything of value with intent (a) to
influence any official act by him, (b) to in-
fluence him to commit or allow any fraud
on the United States, or (c) to induce him to
do or omit to do any act in violation of his
lawful duty. As used in section 201, "Public
officials" is broadly defined to include offi-
cers, employees, and other persons carrying
on activities for or on behalf of the Govern-
ment.
.02 Section 201 also prohibits a public of-
ficial's solicitation or acceptance of, or
agreement to take, a bribe. In addition, it
forbids offers or payments to, and solicita-
tions or receipt by, a public official of any-
thing of value "for or because of" any offi-
cial act performed or to be performed by
him.
.03 Section 201 further prohibits the of-
fering to or the acceptance by a witness of
anything of value involving intent to influ-
ence his testimony at a trial. Congressional
hearing, or agency proceeding. A similar
provision applies to witnesses "for or be-
cause of" testimony given or to be given.
The provisions sununarized in this section
do not preclude lawful witness fees, travel
and subsistence expenses, or reasonable
compensation for expert testimony.
B. COMPENSATION TO omegas AND EMPLOYEES
IN MATTERS AFFECTING THE GOVERNMENT
.01 Title 18. U.S.C.. section 203, prohibits
an officer or employee from receiving com-
pensation for services rendered for others
before a Federal department or agency in
matters in which the Government is a party
or is interested.
.02 Section 203 applies to a special Gov-
ernment employee as follows:
a. If the special Government employee
has served in the Department of Commerce
more than 80 days during the preceding
period of 385 days, section 203 applies to
him only in relation to a particular matter
Involving a specific party or parties (1) in
which he has at any time participated per-
sonaUy and substantially in his govertunen-
tal capacity, or (2) which is pending in the
Department of Commerce; or
b. If the special Government employee
has served in the Department no more than
60 days during the preceding period of 385
days, section 203 applies to him only in rela-
tion to a particular matter involving a spe-
cific party or parties in which he has at any
time participated personally and substan-
tially in his governmental capacity.
.03 Section 203 does not apply to a re-
tired officer of the uniformed services while
not on active duty and not otherwise an of-
ficer or employee of the United States.
C. ACTIVITIES OF OFFICERS AND EMPLOYERS IN
CLAIMS AGAINST AND OTHER MATTERS AITECT-
ING THE GOVERNMENT
.01 Title 18, U.S.C.. section 205, Prohibits
an officer or employee, otherwise than in
the performance of his official duties, from:
a. Acting as agent or attorney for pros-
ecuting any claim against the United States,
or receiving any gratuity, or any share of or
interest in any such claim in consideration
of assistance in the prosecution of such
claims; or
b. Acting as agent or attorney for anyone
before any Government agency, court, or of-
ficer in connection with any matter in
which the United States is a party or has a
direct and substantial interest.
.02 Section 205 applies to a special Gov-
ernment employee as follows:
a. If the special Government employee
has served in the Department more than 80
days during the preceding Period of 385
days, section 205 applies to him only in rela-
tion to a particular matter involving a spe-
cific party or parties (1) in which he has at
any time participated personally and sub-
stantially in his governmental capacity, or
(2) which is pending in the Department of
Commerce; or
b. If the special Government employee
has served in the Department no more than
60 days during the preceding period of 385
days, section 205 applies to him only in rela-
floret.? a particular matter involving a spe-
cific party or parties in which he has at any
time participated personally and substan-
tially in his governmental rapacity.
.03 Section 205 does not preclude: ?
a. An employee, if not inconsistent with
faithful performance of his duties, from
acting without compensation as agent or at-
torney for any person who is the subject of
disciplinary, loyalty, or other personnel ad-
ministration proceedings, in connection
with those proceedings; or
b, An employee from giving testimony
under oath or from making statements re-
mitred to be made under penalty for perjury
er contempt.
04 Sections 203 and 205 do not preclude:
a. An employee from acting as agent or at-
torney for his parents, spouse, child, or any
person for whom, or for any estate for
which, he is serving as guardian, executor,
administrator, trustee, or other personal fi-
duciary, except in those matters in which he
hits participated personally and substantial-
ly as a Government employee or which are
the subject of his official responsibility, pro-
vided the head of the operating unit con-
cerned approves; or
b. A special Government employee from
acting as agent or attorney for another
person in the performance of work under a
grant by. or a contract with, or for the bene-
fit of. the United States, provided the head
of the operating unit concerned, with the
approval of the appropriate program Secre-
lariat Officer, shall certify in writing that
the national interest so requires, and such
certification shall be published in the Fro-
LitaL REGISTER.
.05 Section 205 does not apply to a re-
tired officer of the uniformed services while
not on active duty and not otherwise an of-
ficer or employee of the United States.
D. DISQUALIFICATION OF FORMER OFFICERS AND
EMPLOYEES IN MATTERS CONNECTED WITH
FORMER DUTIES OR Oman. RESPONSIBIL-
ITIES: DISQUALIFICATION OF PARTNERS
.01 Title 18 U.S.C., section 207:
a. Provides that a former Government of-
ficer or employee, including a former special
Government employee, shall be permanent-
ly barred from acting as agent or attorney
for anyone other than the United States in
any matter in which the United States is a
party or is interested and in which he par-
ticipated personally and substantially in a
governmental capacity:
b. Bars a former Government officer or
employee, including a special Government
employee, of an agency, for a period of 1
Year after his employment with it has
ceased, from appearing personally as agent
or attorney for another person before any
court or agency in connection with a matter
in which the Government has an interest
and which was under his official responsibil-
ity at the employing agency (e.g.. Depart-
ment of Commerce) at any time within 1
Year prior to the end of such responsibility;
and
C. Prohibits a partner of a person em-
ployed by the Government. including a spe-
cial Government employee, from acting as
agent or attorney for anyone other than the
United States in matters in which the em-
ployee participates or has participated per-
sonally and substantially for the Govern.
App. A
meat or which are the subject of his official
responsibility.
.02 Subparagraphs .01a. and .01b. of this
section do not prevent a former officer or
employee or special Government employee
who has outstanding scientific or technical
qualifications from acting RS attorney OE
agent or appearing personally before the
Department of Commerce in connection
With a particular matter in a scientific or
technological field if the Assistant Secre-
tary of Commerce for Science and Technol-
ogy shall make a certification in writing,
published in the FEDERAL REGISTER, that the
national interest would be served by such
action or appearance by the former officer
or employee.
E. ACTS AFFECTING A PERSONAL FINANCIAL
INTEREST
?
.01 Title 18, U.S.C., section 208 prohibits
an officer or employee. Including a special
Government employee, from participating
personally and substantially in a govern-
mental capacity in any matter in which, to
his knowledge, he, his spouse, minor child,
partner, organization In which he is serving
as officer, director, trustee, partner, or em-
ployee, or any person or organization with
whom he is negotiating or has any arrange-
ment concerning prospective employment,
has a financial interest.
.02 Section 208 does not apply:
a. If the officer or employee first advise('
the head of the operating unit concerned of
the nature and circumstances of the matter
involved, makes full disclosure of the finan-
cial interest, and receives in advance a writ-
ten determination made by such official,
with the approval of the appropriate pro-
gram Secretarial Officer, that the interest is
not so substantial as to be deemed likely to
affect the integrity of the services which
the Government may expect from the offi-
cer or employee; or
b. If, by general rule or regulation pub-
lished in the FEDERAL REcissza, the finan-
cial interest has been exempted from the re-
quirernents of section 208 as being too
remote or too inconsequential to affect the
integrity of Government officers' or em-
ployees' services.
F. SALARY OF GOVERNMENT orirtcuts AND
EMPLOYEES
.01 Title 18, U.S.C., section 200, prohibits:
a. An officer or employee from receiving
any salary, or any contribution to or supple-
mentation of salary, as compensation for his
services as an officer or employee of the
United States from any source other than
the Government of the United States,
except as may be contributed out of the
treasury of a State, county, or municipality:
and
IR
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Declassified and Approved For Release 2013/01/2_:_C...I.A_-_RDP..9.0..-.00.5,3m0eR30.000y5.00112c 06 0m0m1 5erc-7.
_ _ App. A
b. Any person or organization from
paying, contributing to. or supplementing
the salary of an officer or employee under
circumstances which would make its receipt
a violation of subparagraph .01a. of this sec-
tion.
.02 Section 209:
a. Does not prevent a Government em-
ployee from continuing to participate in a
bona fide pension or other welfare plan
maintained by a former employer
b. Exempts special Government employ-
ees and employees serving the Government
without compensation, and grants a corre-
sponding exemption to any outside person
paying compensation to such individuals;
and
c. Does not prohibit the payment or ac-
ceptance of sums under the terms of the
Government Employees Training Act.
G. CODE OF ETHICS FOR GOVERNMENT SERVICE
"Code of Ethics for Government Service,"
House Concurrent Resolution 175, 85th
Congress, 2d Session, 72 Stat. B12 of July
11, 1958, which reads as follows:
"Any Person in Government Service
Should:
"Put loyalty to the highest moral princi-
ples and to country above loyalty to per-
sons, party, or Government department.
"UPHOLD the Constitution, laws, and
legal regulations of the United States and
all governments therein and never be a
party to their evasion.
"GIVE a full day's labor for a full day's
pay; giving to the performance of his duties
his earnest effort and best thought.
"SEEK to find and employ more efficient
and economical ways of getting tasks accom-
plished.
"NEVER discriminate unfairly by the dis-
pensing of special favors or privileges to
anyone, whether for remuneration or not:
and never accept for himself or his family,
favors or benefits under circumstances
which might be construed by reasonable
persons as influencing the performance of
his governmental duties.
"MAKE no private promises of any kind
binding upon the duties of office, since a
Government employee has no private word
which can be binding on public duty-
' "ENGAGE in no business with the Gov-
ernment, either directly or indirectly, which
is inconsistent with the conscientious per-
formance of his governmental duties.
"NEVER use any information coming to
him confidentially in the performance of
governmental duties as a means for making
private profit.
"EXPOSE corruption wherever discov-
ered.
"UPHOLD these principles, ever conscious
that public office is a public trust."
R. PROHIBITIONS
.01 The prohibition against lobbying fl
with appropriated funds (18 U.S.C. 1913)
reads as follows:
"No part of the money appropriated by
any enactment of Congress shall, in the ab-
sence of express authorization by Congress.
be used directly or indirectly to pay for any
personal service, advertisement, telegram,
telephone, letter, printed or written matter,
or other device, intended or designed to in-
fluence in any manner a Member of Con-
gress, to favor or oppose, by vote or other-
wise, any legislation or appropriation by
Congress, whether before or after the Intro-
duction of any bill or resolution proposing
such legislation or appropriation, but this
shall not prevent officers or employees of
the United States or of Its departments or
agencies from communicating to Members
of Congress on the request of any Member
or to Congress, through the proper official
channels, requests for legislation or appro-
priations which they deem necessary for the
efficient conduct of the public business.
"Whoever, being an officer or employee of
the United States or of any department or
agency thereof, violates or attempts to vio-
late this section, shall be fined not more
than $500 or imprisoned not more than 1
year, or both; and after notice and hearing
by the superior officer vested with the
power of removing him, shall be removed
from office or employment."
.02 The prohibitions against disloyalty
and striking (5 U.S.C. 7311, 18 U.S.C. 1918).
An individual may not accept or hold a posi-
tion in the Government of the United
States If he:
a. Advocates the overthrow of our consti-
tutional form of government;
b. Is a member of an organization that he
knows advocates the overthrow of our con-
stitutional form of government;
c. Participates in a strike, or asserts the
right to strike, against the Government of
the United States or the government of the
District of Columbia; or
d. Is a member of an organization of em-
ployees of the Goverrunent of the United
States or of individuals employed by the
government of the District of Columbia
that he knows asserts the right to strike
against the Government of the United
States or the government of the District of
Columbia.
.03 The prohibition against employment
of a member of a Communist organization
(50 U.S.C. 784).
.04 The prohibitions against (a) the dis-
closure of classified information (18 U.S.C.
798, 50 U.S.C. 788): and (b) the disclosure of
confidential information (18 U.S.C. 1905).
Each employee who has access to classified
information, e.g., confidential, secret, or top
secret, or to a restricted area is responsible
for knowing and for complying strictly with
the security regulations of the Department
of Commerce. (See Administrative Order
207-2.)
.05 The prohibition against employment
in the competitive civil service of any person
who habitually uses intoxicating beverages
to excess (5 U.S.C. 7352).
.08 The prohibition against the misuse of
a Government vehicle (31 U.S.C. 638a(c)).
No employee may willfully use or authorize
the use of a Government-owned or Govern-
ment-leased passenger motor vehicle or air-
craft for other than official purposes.
.07 The prohibition against the use of
the franking privilege to avoid payment of
postage on private mail (18 U.S.C. 1719).
.08 The prohibition against the use of
deceit in an examination or personnel
action in connection with Government em-
ployment (18 U.S.C. 1917).
.09 The prohibition against fraud or false
statements in a Government matter (18
U.S.C. 1001). An employee in connection
with an official matter shall not knowingly
and willfully conceal or cover up a material
fact or falsify official papers or documents.
.10 The prohibition against mutilating or
destroying a public record (18 U.S.C. 2071).
No employee may conceal, remove, mutilate,
or destroy Government documents or rec-
ords except for the disposition of records in
accordance with law or regulation.
.11 The prohibition against counterfeit-
ing and forging transportation requests (18
U.S.C. 508). Falsely making, altering or forg-
ing. In whole or in part, any form of trans-
portation request is prohibited.
.12 The prohibitions against:
a. Embezzlement of Government money
? or property (18 U.S.C. 641). No employee
may convert any Government money or
Government property to his own use or the
use of another person.
b. Failure to account for public money (18
U.S.C. 643). Any employee, who, having re-
ceived public money which he is not author-
ized to retain, falls to render his accounts
for same as provided by law, is guilty of em-
bezzlement.
c. Embezzlement of the money or proper-
ty of another person in the possession of
the employee by reason of his employment
(18 U.S.C. 654). An employee is prohibited
from embezzling or wrongfully converting
for his own use the money or Property of
another which comes under his control as
the result of his employment.
.13 The prohibition against unauthorized
removal or use of documents relating to
claims from or by the Government (18
, U.S.C. 285). No employee, without authori-
ty, may remove from the place where It was
kept by authority of the United States any
document., record, file, or paper intended to
be used to procure the payment of money
from or by the United States or the
allowance or payment of any claim against
the United States, regardless of whether the
document or paper has already been used or
the claim has already been allowed or paid;
and no employee may use or attempt to use
any such document, record, file, or paper to
procure the payment of any money from or
by the United States or the allowance or
payment of any claim against the United
States.
.14 The prohibition against proscribed
political activities, including the following,
among others:
a. Using official authority or influence for
the purpose of interfering with or influenc-
ing the result of an election, except as au-
thorized by law (5 U.S.C. 7324);
b. Taking an active part in political man-
agement or in political campaigns, except as
authorized by law (5 U.S.C. 7324);
c. Offering or promising to pay anything
of value in consideration of the use of, or
Promise to use, any influence to procure any
appointive office or place under the United
States for any person (18 U.S.C. 210);
d. Soliciting or receiving, either as a politi-
cal contribution or for personal emolument,
anything of value in consideration of a
promise of support or use of influence In ob-
taining for any person any appointive office
or place under the United States (18 U.S.C.
211);
e. Using official authority to Interfere
with a Federal election (18 U.S.C. 898);
f. Promising any employment compensa-
tion, or other benefit made possible by Act
of Congress in consideration of political ac-
tivity or support (18 U.S.C. 600);
g. Action by a Federal officer or employee
to solicit or receive, or to be in any manner
concerned with soliciting or receiving. any
contribution for any political purpose what-
ever from any other Federal officer or em-
ployee or from any person receiving com-
pensation for services from money derived
from the Treasury of the United States (18
U.S.C. 802);
h. Soliciting or receiving (by any Person)
anything of value for any political purpose
whatever on any Government premises (18
U.S.C. 603);
I. Soliciting or receiving contributions for
political purposes from anyone on Federal
relief or work relief (18 U.S.C. 004):
J. Payment of a contribution for political
purposes by any Federal officer or employee
to another Federal officer or employee (18
U.S.C. 607); and
k. Payment of a political contribution in
excess of statutory limitations and purchase
of goods, commodities, advertising, or arti-
cles the proceeds of which inure to the
benefit of certain political candidates or or-
ganizations (18 U.S.C. 608).
.15 The prohibition against an employee
acting as the agent of a foreign principal
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App. B Title 15?Commerce and Foreign Trade
registered under the Foreign Agents Regis-
tration Act (18 U.S.C. 219).
APPENDIX B?Posirrow CATEGORIES. GRADE
OS-13. AND Move, REQUIRING STATEMENTS
OF EMPLOYMENT AND FINANCIAL INTERESTS
BY INCUMBENTS
(1) Auditors.
(2) Attorneys other than attorneys en-
gaged in patent examining or trademark ex-
amining operations.
? (3) Heads of divisions or comparable orga-
nization units. 08-15 or above.
OD Heads of field offices or installations,
05-15 or above.
(5) Employees in positions involving as-
signed duties and responsibilities which re-
quire the incumbent to make fact-finding
determinations or to exercise judgment in
recommending a decision or an action in
regard to:
a. Evaluation, appraisal, or selection of
contractors or sub-contractors, prospective
contractors or prospective subcontractors,
proposals of such contractors or subcontrac-
tors, the activities performed by such con-
tractors or subcontractors, or determination
of the extent of compliance of such contrac-
tors or subcontractors with contract provi-
sions.
b. Negotiation, modification, or approval
of contracts or subcontracts.
c. Evaluation, appraisal, or selection of
prospective project sites, or locations of
work or activities, including real property
proposed for acquisition by purchase or oth-
erwise.
d. Inspection and quality assurance of ma-
terial, products, or components for accept-
ability.
e. Review or approval for access permits.
f. Technical planning or design which in-
volves the preparation of specifications or
technical requirements.
g. Negotiation of agreements for coopera-
tion or implementing arrangements with
foreign countries, international organiza-
tions, or non-Federal enterprises.
Ii. Analysis, evaluation, or review of li-
cense applications.
L Analysis, evaluation, or review of licens-
ees' compliance with Department of Com-
merce regulations and requirements.
J. Utilization or disposal of excess or sur-
plus property.
k. Procurement of materials, services, sup-
plies, or equipment.
I. Authorization or monitoring of grants
or subsidies to educational institutions or
Other non-Federal enterprises.
m. Audit of financial transactions.
n. Promulgation of safety standards, pro-
cedures, and hazards evaluation systems.
o. Other activities where the decision or
action has a substantial economic impact on
the interests of ? non-Federal enterprise.
APPENDIX C?Position Csrecoates BeLow
08-13 REQUIRING STATEMENTS OF Eis-
PLOYMENT AND FINANCIAL INTERESTS BY IN-
CUMBENTS
(1) Employees in the Maritime Adminis-
tration who are in the following categories
of positions:
(a) Shipbuilding inspector. 05-9 to 12.
(b) Marine surveyor. GS-11 and 12.
(c) Ship repair and maintenance specialist,
marine survey specialist, and ship repair
cost estimator, GS-10 to 12.
(d) Supervisory ship inventory surveyor,
GS-12.
(e) Chief. Freight and Passenger Traffic
Section.
(f) Chief, Foreign Transfer Branch.
(g) Assistant Chief, Insurance Claims
Branch.
(h) Supervisory procurement, supply, ship
sales, and disposal personnel, OS-11 and 12.
(1) Head, Department of Public Works,
U.S. Merchant Marine Academy.
(j) Professional engineers, naval archi-
tects, and engineer and naval architect tech-
nicians. 08-12.
03 FR 9785, July 1, 19681
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