AUTHORITY: The provisions of this Part 0 issued under 18 U.S.C. 201 through 209; 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 O appear at 36 F.R. 24402, Dec. 22, 1971, unless otherwise noted.

Subpart A-General Provisions § 0.735-101 Purpose.

The maintenance of unusually high 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 through informed judgment is indispensable to the maintenance of these standards. To accord with these concepts, this part sets forth the Department's regulations prescribing standards of conduct and responsibilities, and governing statements of employment and financial interests for employees and special Government employees. $ 0.735-102 Definitions.

(a) "Department" means the Department of Housing and Urban Development.

(b) "Employee" means an officer or employee of the Department, but does not include a special Government employee.

(c) "Special Government employee" means an officer or employee of the Department appointed to serve with or without compensation, for not more than 130 days during any period of 365 consecutive days, on a full-time, part-time, or intermittent basis, and who is retained, designated, appointed, or employed as a special Government employee under the provisions of section 202 of title 18 of the United States Code.

(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) "Outside employment" means all gainful employment other than the performance of official duties. It includes, but is not limited to, working for another employer, the management or operation of a private business for profit

(including personally owned businesses, partnerships, corporations, and other business entities), and other self-employment.

§ 0.735-103

Notification to employees and special Government employees. The provisions of this part and all revisions thereof shall be brought to the attention of and made available to:

(a) Each employee and special Government employee at the time of issuance and at least annually thereafter;

(b) Each new employee and special Government employee at the time of entrance on duty.

§ 0.735-104 Interpretation and advisory service.

(a) Department counselor. The General Counsel of the Department is designated Counselor for the Department and shall serve as the Department's designee to the Civil Service Commission on matters covered by this part. He shall be responsible for coordinating the Department's counseling services and for assuring that counseling and interpretations on questions of conflicts of interest and other matters covered by this part are available to designated deputy counselors. He may form ad hoc committees to evaluate the effectiveness of the standards, or to consider any new or unusual question arising from their application.

(b) Deputy counselors. Such deputy counselors as may be required shall be designated by the Secretary or his designee from among the staff of the Office of the General Counsel to give authoritative advice and guidance to current and prospective employees and special Government employees who seek advice and guidance on questions of conflicts of interest and on other matters covered by this part.

§ 0.735-105 Reviewing statements and reporting conflicts of interests.

(a) Subpart D of this part and the appendix to this part identify the categories of positions and, as necessary, the specific positions in which the incumbent is required to submit a statement of employment and financial interests to an appropriate Department official for review.

(b) When a statement submitted under Subpart D of this part and the appendix to this part or information from other sources indicates a conflict

between the interests of an employee or special Government employee and the performance of his services for the Government and when the conflict or appearance of conflict is not resolved by the Department Counselor, he shall report the information concerning the conflict or appearance of conflict to the Secretary.

(c) The employee or special Government employee concerned shall be provided an opportunity to explain the conflict or appearance of conflict.

(d) If the resolution of the conflict or appearance of conflict contemplates or includes any of the remedial action indicated in § 0.735-106 with the exception of paragraph (b) (2), appropriate personnel officers of the Department shall be notified and shall participate in the determination of the action proposed to be effected.

§ 0.735-106 Disciplinary and other remedial action.

(a) A violation of 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.

(b) When, after consideration of the explanation of the employee or special Government employee provided by § 0.735-105, the Secretary decides that remedial action is required, he shall take immediate action to end the conflicts or appearance of conflicts of interest. Remedial action may include, but is not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee or special Government employee of his conflicting interest; and unless otherwise provided divestiture is to be completed within 60 days after notice of a decision that a conflict exists.

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

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

(c) If any of the remedial action indicated in this section with the exception of paragraph (b) (2) of this section is contemplated, appropriate personnel officers of the Department shall be notified and shall participate in the determination of the action proposed to be effected.