10.735-206 10.735-207 10.735-208 10.735-209 tions. Outside employment. 10.735-210 Gambling, betting and lotteries. Review of statements and determination as to conflicts of interest. 10.735-407 Confidentiality 10.735-408 statements. of employees' Effect of employees' statements on other requirements. AUTHORITY: The provisions of this Part 10 issued under E.O. 11222 of May 8, 1965, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104. SOURCE: The provisions of this Part 10 contained in Dept. Reg. 108.530, 31 F.R. 6300, Apr. 26, 1966, unless otherwise noted. Subpart A-General Provisions § 10.735-101 Purpose. The maintenance of the highest standards of honesty, integrity, impartiality, and conduct by Government employees and special Government employees is essential to assure the proper performance of the Government business and the maintenance of confidence by citizens in their Government. The avoidance of misconduct and conflicts of interest on the part of Government employees and special Government employees is indispensable to the maintenance of the standards in this part. To accord with these concepts the regulations in this part prescribe standards of conduct and responsibilities for employees and special Government employees and require statements reporting employment and financial interests. § 10.735-102 Definitions. (a) "Agency" means the Department of State (State), the U.S. Information Agency (USIA) and the Agency for International Development (AID). (b) "Employee" means an officer or employee at home or abroad, of an agency named in paragraph (a) of this section, but does not include a special Government employee or a member of the Army, Navy, Air Force, Marine Corps, Coast Guard, Environmental Sciences Services Administration, or Public Health Service. (c) "Executive Order" means Executive Order 11222 of May 8, 1965. (d) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution. (e) "Special Government employee" means an officer or employee of an agency who is retained, designated, appointed, or employed to perform, with or without compensation, for not to exceed 130 days during any period of 365 consecutive days, temporary duties either on a full-time or intermittent basis. (f) "Member of an employee's family” means a spouse, minor child, or other member of an employee's immediate household. For the purpose of these regulations "member of an employee's immediate household" means those blood relations who are residents of the employee's household. (g) "Agency Counselor" means the agency's Counselor on Ethical Conduct and Conflicts of Interest. § 10.735-103 Interpretation and advisory service. (a) Counseling services on employee responsibilities and conduct are available in each agency. These services are to be coordinated by a Counselor appointed by the agency head. The Counselors are for State-the Legal Adviser; for USIA—the General Counsel; and for AID-the Deputy General Counsel. The Counselor serves as the agency's designee to the Civil Service Commission on matters covered by the regulations in this part and is responsible for coordination of the agency's counseling services under paragraph (b) of this section and for assuring that counseling and interpretations on questions of conflicts of interest and other matters covered by these sections are available to deputy counselors designated under paragraph (b) of this section. (b) Each agency head may designate deputy counselors for the agency's employees and special Government employees. Deputy Counselors designated under this section must be qualified and in a position to give authoritative advice and guidance to each employee and special Government employee who seeks advice and guidance on questions of conflicts of interest and on other matters covered by the regulations in this part. A Washington employee or special Government employee should address any inquiries concerning the regulations in this part to the Agency Counselor. At missions abroad the chief of each agency's establishment designates an officer, preferably the legal officer where one is available, to provide counseling services under the guidance of the Counselor; a single officer may serve all agencies. An employee or special Government employee serving abroad should submit his inquiries to the officer designated. (c) Each agency shall periodically notify its employees and special Government employees of the availability of counseling services and how and when these services are available. A new employee or special Government employee shall be notified at the time of his entrance on duty. § 10.735-104 Applicability to detailed employees. All the regulations of Subparts A, B, and D of this part are applicable to an employee of another U.S. Government agency who may be serving on detail or assignment, formally or informally, on a reimbursable or nonreimbursable basis, through a Participating Agency Service Agreement or otherwise, with an agency named in section 102(a). However, disciplinary action shall be taken against such an employee only by his employing agency. § 10.735-105 Disciplinary action. A violation of the regulations in this part by an employee or special Government employee may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law. Subpart B-Ethical and Other Conduct and Responsibilities of Employees § 10.735-201 Applicability to members of families of employees. A U.S. citizen employee shall take care that certain responsibilities placed on him are also observed by members of his family. These are the restrictions in regard to: Acceptance of gifts (§§ 10.735202 and 203); economic and financial activities abroad (§ 10.735-206); expression of thoughts and views (§ 10.735211) except for restrictions in paragraphs (e) and (f) of (§ 10.735-211); participation in activities of private organizations (§ 10.735-213(c)); and political activities abroad (§ 1.735-213 (g)). § 10.735-202 Gifts, entertainment, and favors. (a) General prohibition. An employee shall avoid any action, whether or not specifically prohibited by the regulations in this part, which might result in, or create the appearance of: (1) Using public office for private gain; (2) Giving preferential treatment to any person; (3) Impeding Government efficiency or economy; (4) Losing independence or impartiality; (5) Making a Government decision outside official channels; or (6) Affecting adversely the confidence of the public in the integrity of the Government. (b) Acceptance prohibited. Except as provided in paragraph (c) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who: (1) Has, or is seeking to obtain, contractual or other business or financial relations with his agency; (2) Conducts operations or activities that are regulated by his agency; (3) Has interests that may be substantially affected by the performance or non-performance of his official duty; or (4) Appears to be offering the gift with the hope or expectation of obtaining advantage or preferment in dealing with the U.S. Government for any purpose. (c) Acceptance permitted. The provisions of paragraph (b) of this section do not apply to: (1) Gifts, gratuities, favors, entertainments, loans, or any other thing of monetary value received on account of close family relationships when the circumstances make it clear that it is that relationship rather than the business of the persons concerned which are the motivating factors; (2) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans; (3) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value; (4) Acceptance of rates and discounts offered to employees as a class. (d) Acceptance permitted for State and USIA employees. For State and USIA employees the provisions of paragraph (b) of this section do not apply to: Acceptance of 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 an employee may properly be in attendance. (e) Acceptance permitted for AID employees. For AID employees the provisions of paragraph (b) of this section do not apply in the following situations: (1) In some circumstances the interests of the Government may be served by participation of employees in widely attended lunches, dinners, and similar gatherings sponsored by industrial, technical, and professional associations for the discussion of matters of mutual interest to Government and industry. Participation of employees is appropriate where the host is the association and not the individual contractor. However, acceptance of entertainment or hospitality from private companies in connection with such association activities is prohibited. (2) In the unusual situation where employees would by virtue of the location of the person, firm, corporation, or other entity, or the regulations governing its dining facilities, find it inconvenient or impractical not to accept meals and refreshment at the host's expense at said location or facility, personnel may accept such meals or refreshments. (3) There will be situations where in the judgment of the individual concerned, the Government's interest would be served by participation of an employee in activities comparable to those enumerated in subparagraphs (1) and (2) of this paragraph, particularly where officers are dealing with a foreign government; in any such case in which an employee accepts any favor, gratuity or entertainment directly or indirectly from any foreign government, person, firm, corporation or any entity which is engaged or is endeavoring to engage in business transactions of any sort with AID, a report of the circumstances, together with the employee's statement as to how the Government's interests were served, will be made within 48 hours to the employee's supervisor or, if the employee is serving abroad, to the Mission Director. (f) Gifts to superiors. An employee shall not solicit contributions from another employee for a gift to an employee in a superior official position. An employee in a superior official position shall not accept a gift presented as a contribution from employees receiving less salary than himself. An employee shall not make a donation as a gift to an employee in a superior official position (5 U.S.C. 113). § 10.735-203 Gifts from foreign governments and international organizations. (a) Prohibitions. An employee shall not seek, or without the consent of Congress, accept (except as provided in paragraph (d) of this section) for himself, for any member of his family, or for any other person, any gift, pecuniary favor, decoration, order, medal, emolument, office or title from any foreign sovereign, foreign government, or state, province or municipality of any foreign government or semi-governmental agency; or from any international organization of states, notwithstanding the fact that the United States may be a participant in such international organization; or from any official of any of the foregoing entities. No such employee shall wear any foreign decoration at any time while employed or assigned in any agency. (b) Petition to Congress. No employee, nor any person on behalf of such employee, may petition the Congress of the United States for legislative permission to accept any foreign decoration, gift, emolument, office or title. The Secretary of State, pursuant to 5 U.S.C. 115a, may request the consent of Congress for retired employees to accept decorations, orders, medals or presents tendered them by foreign governments, which have been held for them by the Department of State. (c) Refusal of gifts. When it is necessary, under the provisions of paragraph (a) of this section to refuse any decoration, gift, emolument, office or title, the refusal is made as soon, and in as gracious terms as possible, attention being invited to the fact that acceptance is prohibited by law or regulations. Employees should take such precautionary measures as seem advisable to avoid being placed in a position where it becomes necessary to refuse such a decoration, gift, emolument, office or title. Where delivery of a gift or decoration was made under circumstances rendering refusal impossible, it should be returned promptly to the donor. (d) Gifts of minor value. The prohibitions of paragraph (a) of this section are to be interpreted with due regard for the principle that the law does concern itself with. things which would universally be regarded as too unimportant to come within its scope. Accordingly, where there is no indication of improper interest on the part of the giver, the article has only minor intrinsic value, such as a photograph or other memento or souvenir, is not a decoration, emolument, office or title, and refusal or return would be offensive and might injure good international relations, such gift may be received. If there is any question or doubt, a ruling should be obtained from the Office of Protocol, Department of State, through official channels. § 10.735-204 Outside employment. (a) Incompatible activities: An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to: (1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or (2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner. (3) Work done in a private capacity which may be construed by the public to be an official act. (b) Compensation from private source: 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) State or local government employment: An employee shall not engage in outside employment under a State or local government, except in accordance with Part 734 of the Civil Service Commission regulations (5 CFR Part 734). (d) An employee shall not render any services, whether or not compensated, to any foreign government, state, province or municipality of any foreign government or semigovernmental agency, or to any international organization of states. However, this does not prevent the rendering of such assistance by employees when acting on behalf of the United States. (e) Preparing candidates for examinations: An employee shall not engage in any teaching or related activities directed toward the special preparation of individuals for examinations of the U.S. Civil Service Commission or the Foreign Service. (Executive Order 9367). (f) Permitted activities: This section does not preclude an employee from: (1) Receipt of bona fide reimbursement, not prohibited by the regulations in this part, for actual expenses for travel and such other necessary subsistence as is compatible with the regulations in this part and for which no Government payment or reimbursement is made. However, an employee may not be reimbursed, and payment may not be made on his behalf, for excessive personal living expenses, gifts, entertainment or other personal benefits. (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 meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization. (4) Use of names and titles as bylines on articles prepared for publication, provided that the articles have been prepared and approved in accordance with § 10.735-211(g) (2). § 10.735-205 Financial interests. (a) An employee shall not: (1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially with his Government duties and responsibilities; or (2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment. (b) This section does not preclude an employee from having a financial interest 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 or these regulations in this part. § 10.735-206 Economic and financial activities of employees abroad. (a) Prohibitions in any foreign country. A U.S. citizen employee abroad is specifically prohibited from engaging in the activities listed below in any foreign country. (1) Speculation in currency exchange. (2) Transactions at exchange rates differing from local legally available rates, unless such transactions are duly authorized in advance by the agency. (3) Sales to unauthorized persons (whether at cost or for profit) of currency acquired at preferential rates through diplomatic or other restricted arrangements. (4) Transactions which entail the use, without official sanction, of the diplomatic pouch. (5) Transfers of funds on behalf of blocked nationals, or otherwise in violation of U.S. foreign funds and assets control. (6) Independent and unsanctioned private transactions which involve an employee as an individual in violation of applicable control regulations of foreign governments. (7) Acting as an intermediary in the transfer of private funds from persons in one country to persons in another country, including the United States. (8) Permitting use of one's official title in any private business transactions or in advertisements for business purposes. (b) Prohibitions in Country of Assignment. (1) A U.S. citizen employee shall not transact or be interested in any business or engage for profit in any profession or undertake other gainful employment in any country or countries to which he is assigned or detailed in his own name or through the agency of any other person; exceptions may be made with respect to chiefs of mission only in writing by the Deputy Under Secretary for Administration, and for all other State employees by the appropriate chief |