Standards of Conduct, Subpart A— General Provisions

Page 26

Title 16— COMMERCIAL PRACTICES Chapter I— Federal Trade Commission SUBCHAPTER A— PROCEDURES AND RULES OF PRACTICE PART 0— STANDARDS OF CONDUCT Effective September 20, 1967, Part 0 is revised and amended to read as follows:

\ Subpart A— General Provisions Sec.

0.735-1 Purpose.

0.735-2 Authority.

0.735-3 Presidential policy.

0.735-4 Definitions.

0.735-5 Interpretation and advisory serv­ ice.

0.735-6 Reporting conflicts of interest. 0.735-7 Disciplinary and other remedial action.

0.735-8 "Publication of regulations. Subpart B— Ethical and Other Conduct and Responsibilities of Employees Sec.

0.735-10 Proscribed actions. 0.735-11 Gifts, entertainment, and favors. 0.735-12 Outside employment and other activity.

0.735-13 Financial interests. 0.735-14 Use of Government property. 0.735—15 Misuse of information. 0.735-16 Indebtedness.

0,735-17 Gambling, betting, and lotteries. 0.735-18 General conduct prejudicial to the Government.

0.735-19 Miscellaneous statutory provisions. Subpart C— Ethical and Other Conduct and Re­ sponsibilities of Special Government Employees 0.735-21 Application of Subpart B of this part to special Government ] employees.

0.735-22 Use of Government employment. 1 0.735—23 Use of inside information. 0.735-24 Coercion.

0.735-25 Gifts, entertainment, and favors. 0.735-26 Miscellaneous statutory provisions. 1 Subpart D— Statements of Employment and Financial Interests 0.735-31 Form and content of statements, j 0.735-32 Employees ^ required to submit | statements.

0.735-33 Presidential appointees. 0.735-34 Time and place for submission of | statements.

0.735-35 Supplementary statements. 0.735-36 Interests of employees’ relatives. 0.735-37 Information not known by em- i ployees.

0.735-38 Information prohibited. 0.735-39 Confidentiality of employees’ statements.

0.735-40 Effect of employees’ statements on other requirements.

0.735-41 Specific provisions for special Gov­ ernment employees.

0.735-42 Reviewing statements. Subpart E— Statutory Disqualification and Provision for Exemptions Thereto 0.735-51 Disqualification. 0.735-52 Exemptions.

Au th o r ity: The provisions of this Part 0 issued under E.O. 11222 of May 8, 1965, 30 » F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104. Subpart A— General Provisions § 0.735-1 Purpose.

This part establishes standards of ethical conduct for employees and spe­ cial Government employees in the Fed­ eral Trade Commission. It sets form regulations pertaining to financial in­ terests; acceptance of gifts, entertain­ ment, and favors; outside employment, use of Government information; ana teaching, lecturing, and writing, ims part also contains instructions on me filing of statements of employment ana financial interests by certain employ and special Government employees. § 0.735-2 Authority.

This part is based on01Pui0URc„.LExecu- 849, effective January 21, 1963, Execu tive Order 11222 of May 8, 1965.and Part 735 of Civil Service regulations ( CFR Part 735). This part does notpu port to refer to or enumerate every striction or requirement ,,v statute, regulation, or other authority. The omission of a reference thereto m FEDERAL REGISTER, VOL. 32, NO. 182— WEDNESDAY, SEPTEMBER 20, 1967

Page 27

RULES AND REGULATIONS 13273 no way alters the legal effect of such re« striction or requirement. This part is not intended to limit whatever statutory authority or responsibility the Chairman may have with respect to employee con­ duct and discipline.

§ 0.735-3 Presidential policy.

The President’s policy, in section 101 of Executive Order No. 11222, is that “Where government is based on the con­ sent of the governed, every citizen is en­ titled to have confidence in the integrity of his government. Each individual offi­ cer, employee, or adviser of government must help to earn and must honor that trust by his own integrity and conduct in all official actions.” When signing the order, the President spoke even more specifically of what he conceives to be the duty that this policy imposes on em­ ployees of the executive branch: “Gov­ ernment personnel bear a special respon­ sibility to be fair and impartal in their dealings with those who have business' with the government. We cannot tolerate conflicts of interest or favoritism—and it is our intention to see that this does not take place in the Federal Govern­ ment.” This policy is based on a recogni­ tion that the maintenance of unusually high standards of honesty, integrity, im­ partiality, and conduct by Government employees, and special Government em­ ployees, through informed judgment is essential to assure the proper perform­ ance of the Government’s business and the maintenance of confidence and re­ spect of the citizens in their Government. § 0.735—4 Definitions.

In this part;

(a) “Commission” means the Federal Trade Commission.

(b) “Employee” means an officer or employee of the Commission, and, insofar as statutory and Executive order pro­ visions are concerned, a Commissioner, but does not include a special Govern­ ment employee.

(c) “Executive order” means Execu­ tive Order 11222.

(d) “Person” means an individual, a corporation, a company, an associa­ tion, a firm, a partnership, a society, a joint stock company, or any other or­ ganization or institution. (e) “Special Government employee” means a “special Government employee” as defined in section 202 of title 18 of the United States Code, who is employed in the Federal Trade Commission. In gen­ eral, this refers to employees .appointed petfonn temporary duties on either a full-time or intermittent basis for not to exceed 130 days during any period of 365 consecutive days. § 0.735-5 Interpretation and advisory service.

The Executive Director shall serve as unselor for the Commission on matters covered by the regulations in this part. Puty counselors shall be the Director, unice of Administration and the Attorm.Charge of each Field Office. The «£ and deputy counselors shall be vino e / or giving authoritative adand guidance to each employee and special Government employee who seeks such advice or guidance on questions of conflicts of interest or other matters per­ taining to the regulations in this part. § 0.735—6 Reporting conflicts o f inter­ est.

When a statement of employment and financial interests submitted under Sub­ part D of this part or information from other sources indicates a conflict be­ tween the interests of an employee, other than a Commissioner, or special Govern­ ment employee and the performance of .his services for the Government and when the conflict or appearance of con­ flict is not resolved at a lower level in the Commission, the information concerning the conflict or appearance of conflict shall be reported to the Chairman through the Executive Director. The in­ dividual concerned shall be provided an opportunity to explain the conflict or ap­ pearance of conflict.

§ 0.735—7 Disciplinary and other reme­ dial action.

(a) A violation of the regulations in this part by an employee, other than a Commissioner, or special Government employee may be cause for appropriate disciplinary action which may be in addi­ tion to any penalty prescribed by law. (b) When, after consideration of the explanation as provided by § 0.735-6, the Chairman decides that remedial action is required, he will initiate immediate action to end the conflicts or appearance of con­ flicts of interest. Remedial action may in­ clude, but is not limited to: (1) Changes in assigned duties; (2) Divestment by the employee or special Government employee of his con­ flicting interest ; ..

(3) Disciplinary action; or (4) Disqualification for a particular assignment.

(c) Remedial action, whether disci­ plinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations. § 0.735—8 Publication o f regulations. Each employee and special Govern­ ment employee shall be furnished a copy of the regulations in this part within 90 days after their approval by the Civil Service Commission. Each new employee and special Government employee shall be furnished a copy at the time of his entrance on duty. At least once each year, an appropriate notice shall be is­ sued by the Executive Director to bring the provisions of the regulations in this part to the attention of each employee and special Government employee. Subpart B—-Ethical and Other Con­ duct and Responsibilities of Em­ ployees § 0.735—10 Proscribed actions.

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

(a) Using public office for private gain; ' (b) Giving preferential treatment to any person;

Cc) 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.

§ 0.735—11 Gifts, entertainment, and favors.

(a) Except as provided in paragraphs (b) and (e) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, en­ tertainment, loan, or ariy other thing of monetary value, from a person who: (1) Has, or is seeking to obtain, contractural or other business or financial relations with the Commission. (2) Conducts operations or activities that are regulated by or are otherwise subject to the jurisdiction of the Com­ mission.

(3) Has interests that may be sub­ stantially affected by the performance or nonperformance of his official duty. (b) As exceptions to paragraph (a) of this section, an employee shall be per­ mitted to:

(1) Accept gifts, gratuities, favors, en­ tertainment, loans, or other things of monetary value from members of his immediate family (i.e., parents, children, or spouse) when the circumstances make it clear that it is the family relationship rather than the business of the persons concerned which is the motivating factor;

(2) Accept food and refreshments 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 the employee may properly be in attendance; (3) Accept loans from banks or other financial institutions on customary terms to finance proper and usual activities of an employee, such as home mortgage loans; and (4) Accept unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value. (c) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a do­ nation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. x7351). However, this paragraph does not pro­ hibit 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 au­ thorized by Congress as provided by the Constitution and in 5 U5.C. 7342. (e) Neither this section nor § 0.735-12 precludes an employee from receipt of bona fide reimbursement, unless pro­ hibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which FEDERAL REGISTER, VOL. 32, NO. 182— WEDNESDAY, SEPTEMBER 20, 1967

Page 28

13274 RULES AND REGULATIONS no Government payment or reimburse­ ment is made. However, this paragraph does not allow an employee to be reimbused, or payment to be made on his behalf, for excessive personal living ex­ penses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Commission orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

§ 0.735—12 Outside employment and other activity.

(a) An employee shall not engage in outside employment or other outside ac­ tivity not compatible with the full and proper discharge of the duties and re­ sponsibilities of his Government em­ ployment. Incompatible activities include but are not limited to:

(1) 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, conflicts of interest;

(2) Outside employment which tends to impair his mental or physical ca­ pacity to perform his Government duties and responsibilities in an acceptable manner; or (3) Outside employment or other out­ side activity which may tend to bring discredit upon the Government or the Commission.

(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 en­ gage in teaching, lecturing, and writing that is not prohibited by law, the Execu­ tive order, or this part. However, an em­ ployee shall not, either for or without compensation, engage in teaching, lec­ turing, or writing that is dependent on information obtained as a result of his Government employment, except when that information has been made avail­ able to the general public or will be made available on request, or when the Chair­ man gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. In addition, an officer or employee who is a Presidential appointee covered by sec­ tion 401(a) of the Executive order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appear­ ance the subject matter of which is de­ voted substantially to the responsibili­ ties, programs, or operations of the Commission, or which draws substan­ tially on official data or ideas which have not become part of the body of public information.

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

¡ (f) Before engaging in outside em­ ployment, an employee, other than a Commissioner, must obtain the written permission of the Executive Director. Re­ quest for approval shall be sent through normal supervisory channels and shall include the following information: (1) Name of the person, group, or or­ ganization for whom the work is to be performed.

(2) Nature of the services to be rend­ ered.

(3) Proposed hours of work (if regu­ larly scheduled) or approximate dates of employment.

(4) Employee’s certification as to whether the outside employment (includ­ ing teaching, writing, or lecturing) will depend in any way on information ob­ tained as a result of the employee’s official Government position. § 0.735—13 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 ob­ tained through his Government employ­ ment.

(b) This section does not preclude an employee from having a financial inter­ est or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, the Execu­ tive order, or the regulations in this part. § 0.735—14 Use o f Government prop­ erty.

An employee shall not directly or in­ directly use, or allow the use of, Govern­ ment property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to pro­ tect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. § 0.735—15 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 0.735-12(c) , directly or in­ directly use, or allow the use of, official information obtained through or in con­ nection with his Government employ­ ment which has not been made available to the general public.

§ 0.735—16 Indebtedness.

An employee shall pay each just finan­ cial 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 fi­ nancial obligation” means one acknowl­ edged by the employee or reduced to judgment by a court, and “in a proper and timely manner” means in a manner which does not, under the circumstances, reflect adversely on the Government as his employer; In the event of dispute be­ tween an employee and an alleged cred­ itor, this section does not require the Commission to determine the validity or amount of the disputed debt. § 0.735—17 Gambling, betting, and lotteries.

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 de­ vice, in conducting a lottery or pool, in a game for money or property, or in sell­ ing or purchasing a numbers slip or ticket. However, this section does not preclude activities:

(a) Necessitated by an employee’s law enforcement duties; or (b) Under section 3 of Executive Or­ der 10927, pertaining to fund-raising ac­ tivities conducted by employee organiza­ tions.

§ 0.735—18 General conduct prejudicial to the Government.

An employee shall not engage in crim­ inal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government. § 0.735—19 IV^iscellaneous statutory pro­ visions.

Each employee shall acquaint himself with each statute that relates to his ethical and other conduct as an em­ ployee of the Commission and of the Gov­ ernment. The attention of 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. >13).

(d) The prohibitions against disyalty and striking (5 U.S.C. 7311, 1 .S.C. 1918).

(e) The prohibition against the emloymerft of a member of a Commun rganization (50 U.S.C. 784). (f) The prohibitions against (1) the Lsclosure of classified information .S.C. 798, 50 U.S.C. 783) ; and (2) we Lsclosure of confidential informa L8 U.S.C. 1905)...

, .

the (g) The provision relating to abitual use of intoxicants to excess <■ S G. 7352).

’(h)’ The prohibition against the mis­ se of a Government vehicle (31 38a(c)).

FEDERAL REGISTER, VOL. 32, NO. 182— WEDNESDAY, SEPTEMBER 20, 1967

Page 29

RULES AND REGULATIONS 13275 (i) The prohibition against the mis­ use 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 employment (18 U.S.C. 1917). (k) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(l) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071). ' (m) The prohibition against counter­ feiting and forging transportation re­ quests (18 U.S.C. 508).

(n) The prohibitions against (1) em­ bezzlement of Government money or property (18 UjS.C. 641); (2) failing to account for public money (18 U.S.C. 643); and (3) embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654). (o) The prohibition against unau­ thorized use of documents relating- to claims from or by the Government (18 U.S.C. 285).

(p) The prohibition against political activities in subchapter m of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608. (q) The prohibition against an em­ ployee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219) . Subpart C— Ethical and Other Conduct and Responsibilities of Special Gov­ ernment Employees § 0.735—21 Application of Subpart B of this part to special Government em­ ployees.

All provisions of Subpart B of this part except § 0.735-12 (f) shall apply to special Government employees. In ad­ dition, the regulations in this Subpart C shall apply.

§ 0.735—22 Use of Government employ­ ment.

A special Government employee sha not use his Government employment fo a PJHPose that is, or gives the appearanc of being, motivated by the desire for pri vategain for himself or another persoi particularly one with whom he has fam Uy> business, or financial ties. § 0.735-23 Use of inside informatioi Except as provided in § 0.735-12 (c), special Government employee shall nc use mside information obtained as a re suit of his Government employment fo L va"®.ga*n for himself or another per son either by direct action on his pai „.„JW.. c°unsel, recommendation, o iJ£estlon .^° an°ther person, particu one with whom he has family, busi of tv.?r finar}cial ties. For the purpos mpnnel ®ection.> “inside information ern ^ 013*lation obtained under Gov Dart J ^ o r i t y which has not becom f the body of public information. § 0.735-24 Coercion.

not u?1 5 °vernment employee sha e his Government employment t coerce, or give the appearance of coerc­ ing, a person to provide financial bene­ fit to himself or another person, particu­ larly one with whom he has family, business, or financial ties. §0.735—25 G ifts , entertainment, and favors.

Except as provided in § 0.735-11 (b), BT special Government employee, while so employed or in connection with his em­ ployment, shall not receive or solicit from a person having business with his 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 finan­ cial ties.

§ 0.735—26 Miscellaneous statutory pro­ visions.

Each special Government employee shall acquaint himself with each statute that relates to his ethical and other con­ duct as a special Government employee of the Commission and of the Government. The attention of special Government em­ ployees is directed to those statutory pro­ visions listed in § 0.735-19. Subpart D— Statement of Employ­ ment and Financial Interests § 0.735—31 Form and content o f state­ ments'. .

The statements of employment and fi­ nancial interests required under this subpart for use by employees, other than Commissioners, and special Government employees shall contain the information required by the formats prescribed by the Civil Service Commission in the Federal Personnel Manual.

§0.735—32 Employees required to sub­ mit statements.

(a) The following employees shall sub­ mit statements of employment and fi­ nancial interests:

(1) The Executive Director and the Deputy Executive Director and Program Review Officer.

(2) The General Counsel and the As­ sistant General Counsels. (3) The Secretary of the Commission. (4) Hearing Examiners.

(5) Bureau Directors, Assistant Bu­ reau Directors, and Chiefs of Divisions within the Bureaus.

(6) Attorneys in Charge of the Field Offices.

(b) An employee who feels that his position has been improperly designated as one requiring the submission of a statement of employment and financial interests has recourse to the Commis­ sion’s grievance procedures set forth in Chapter 5-771 of the Commission’s Administrative Manual.

§ 0.735—33 Presidential appointees. A statement of employment and finan­ cial interests is not required by this part from the Chairman or other Commis­ sioners. These officials are subject to separate reporting requirements under section 401 of the Executive order. § 0.735—34 Time and place for submis­ sion of statements.

An employee required to submit a statement of employment and financial interests under the regulations in this part shall submit that statement to the Executive Director not later than: (a) Ninety days after the effective date of the regulations in this part if em­ ployed on or before that effective date; or (b) Thirty days after his entrance on jduty, but not earlier than 90 days after the effective date, if appointed after that effective date.

§ 0.735—35 Supplementary statements.

Changes in, or additions to, the infor­ mation contained in an employee’s state­ ment of employment and financialinterests shall be reported in a supple­ mentary statement as of June 30 each year. If no changes or additions occur, a negative report is required. Notwith­ standing the filing of the annual report required by this section, each employee shall at all times avoid acquiring a finan­ cial interest that could result, or taking an action that would result, in a violation of the conflicts of interest provisions of section 208 of title 18, United States Code, or Subpart B of this part. § 0.735—36 Interests o f employees’ rela­ tives.

The interest of a spouse, minor child, or other member of an employee’s im­ mediate household is considered to be an interest of the employee. For the pur­ pose of this section, “member of an em­ ployee’s immediate household’’ means those blood relations who are residents of the employee’s household. § 0.735—37 Information not known by employees.

If any information required to be in­ cluded on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf. § 0.735—38 Information prohibited.

$. This part does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee’s connection with, or in­ terest in, a professional society or a char­ itable, religious, social, fraternal, recrea­ tional, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educa­ tional and other institutions doing re­ search and development or related work involving grants of money from or con­ tracts with the Government are deemed “business enterprises” and are required to be included in an employee’s statement of employment and financial interests. § 0.735—39 Confidentiality of employ­ ees’ statements.

Each statement of employment and financial interests, and each supple­ mentary statement, shall be held in con- FEDERAL REGISTER. VOL. 32, NO. 182— WEDNESDAY, SEPTEMBER 20, 1967

Page 30

13276 RULES AND REGULATIONS fidence. Only the Chairman, the Execu­ tive Director, and the Deputy Executive Director are authorized to review and retain the statements. These officials are responsible for maintaining the state­ ments in confidence and shall not allow access to, or allow information to be dis­ closed from, a statement except to carry out the purpose of this part. Information from a statement shall not be disclosed except as the Civil Service Commission or the Chairman may determine for good cause shown.

§ 0 .735—40 Effect of employees’ state­ ments on other requirements. The statements of employment and financial interests and supplementary statements required of employees are in addition to and not in substitution for, or in derogation of, any similar require­ ment imposed by law, order,. or regu­ lation. 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 participa­ tion is prohibited by law, order, or regulation.

§ 0.735—41 Specific provisions for spe­ cial Government employees. (a) Except as provided in paragraph (b) of this section, each special Govern­ ment employee shall submit a statement of employment and financial interests which reports:

(1) All other employment; and (2) The financial interests of the spe­ cial Government employee which relate either directly or indirectly to the duties and responsibilities of the special Gov­ ernment employee.

(b) The Chairman may waive the re­ quirement in paragraph (a) of this sec­ tion for the submission of a statement of employment and financial interests in the case of a special Government em­ ployee who is not a consultant or an expert when he finds that the duties of the position held by that special Govern­ ment employee are * of a nature and at such a level of responsibility that the submission of the statement by the in­ cumbent is not necessary to protect the integrity of the Government. For the purpose of this paragraph, “consultant” and “expert” have the meanings given those terms by chapter 304 of the Federal Personnel Manual.

(c) A statement of employment and financial interests required to be sub­ mitted under this section shall be sub­ mitted to the Executive Director not later than the time of employment of the special Government employee. Each spe­ cial Government employee shall keep his statement current throughout his em­ ployment with the Commission by the submission of supplementary statements. § 0.735—42 Reviewing statements.

The Executive Director or the Deputy# Executive Director shall review each statement of employment and financial interests to ascertain whether a conflict of interest or an apparent conflict of interest exists. If there is a conflict or apparent conflict, the procedures spec­ ified in §§ 0.735-6 and 0.735-7 shall be followed.

Subpart E— Statutory Disqualification and Pro vision for Exemptions Thereto § 0.735—51 Disqualification.

Pursuant to Public Law 87-849 (18 U.S.C. 208), except as permitted by § 0.735-52, no employee or special Gov­ ernment employee shall participate “personally and substantially as a Gov­ ernment officer or employee, through decision, approval, disapproval, recom­ mendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, orga­ nization in which he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is negotiating or has any arrange­ ment concerning prospective employ­ ment, has a financial interest.” Convic­ tion under 18 U.S.C. 208 carries a fine of not more than $10,000, or imprisonment for not more than 2 years, or both. § 0.735—52 Exemptions.

Section 0.735-51 and 18 U.S.C. 208(a) shall not apply if the employee or spe­ cial Government employee sends prior written notification to the Chairman, through normal supervisory channels, “of the nature and circumstances of the * * * particular matter and makes full disclosure of the financial interest,” and receives in advance a written deter­ mination made by the Chairman “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 such officer or employee.”

^ This Part 0 was approved by the Civil Service Commission on September 11, 1967, and supersedes the Part 0 pre­ viously approved by the Civil Service Commission on April 12, 1966, and pub­ lished in the Federal R egister on April 22, 1966 (31 F.R. 6197). Effective date. This Part 0 shall become effective upon publication in the F ederal R egister.

By the Commission.

[seal] J oseph W. Shea, Secretary.

[F.R, Doc. 67-11022; Filed, Sept. 19, 1967; 8:47 a.m.]