500.735-13

500.735-14

500.735-15

500.735-16

500.735-17

500.735-18

Financial interests.

Use of Government property.
Misuse of information.
Indebtedness.

Gambling, betting, and lotteries.
General conduct prejudicial to
the Government.

500.735-19 Miscellaneous statutory provisions.

Subpart C-Special Government Employees Standards of Conduct

500.735.21 Special Government employeesUse of Government employment.

500.735.22 Special Government employeesUse of inside information. 500.735.23 Special Government employees— Coercion.

Subpart D-Statements of Employment and Financial Interests

500.735-31 Statements of employment and financial interests.

500.735-32 Employees required to submit statements.

500.735-33 Employees not required to submit statements.

500.735-34 Time and place for submission of employees' statements. 500.735-35 Supplementary statements. 500.735-36 Interests of employees' relatives. 500.735-37 Information not known by em

ployees.

500.735-38 Information prohibited. 500.735-39 Confidentiality of employees' statements.

500.735-40 Effect of employees' statements on other requirements. 500.735-41 Special Government employees. 500.735-42 Employee's complaint on filing requirements.

AUTHORITY: The provisions of this Part 500 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 500 contained in Commission Order 53 (Amended), 33 F.R. 11767, Aug. 20, 1968, unless otherwise noted.

Subpart A-General Provisions § 500.735-1 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 through informed judgment is indispensable to the maintenance of these standards. Reorganization Plan No. 7 of 1961, which established the Federal Maritime Commission, provided that officials or employees of the Commission are prohibited from employment with, or to have any pecuniary interest in, or hold any official relationship with, carriers by water, shipbuilder contractors, or other persons, firms, associations or corporations with whom the Commission may have business relations. The following sections of this part are in accordance with the requirements of the Civil Service Commission's regulations (5 CFR Part 735) under Executive Order 11222, dated May 8, 1965.

§ 500.735-2 Definitions.

(a) "Commission" means the Federal Maritime Commission unless otherwise designated.

(b) "Employee" means officer or employee of the Commission including a special Government employee as defined in 18 U.S.C. 202.1

(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.

§ 500.735-3 Interpretation and advisory service.

(a) The Chairman of the Commission shall designate an employee with the appropriate legal experience and in

118 U.S.C. 202 defines a "special Government employee" as including an officer or employee of any independent agency of the United States 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.

whom he has complete personal confidence to be the Counselor for the Commission on matters in connection with the regulations in this part. The Counselor shall also serve as the Commission's designee to the Civil Service Commission on matters covered by the regulations in this part. He shall exercise responsibility for effectuation and coordination of the Commission's regulations and provide counseling and interpretations on questions of conflicts of interest and other matters covered by the regulations in this part.

(b) Employees shall be notified of the availability of counseling services and of how and where these services are available. This notification shall be made within 90 days after approval of the regulations in this part by the Civil Service Commission and periodically thereafter. In the case of a new employee appointed after this notification, notification shall be made at the time of his entrance on duty.

§ 500.735-4 Reviewing statements and reporting conflicts of interest.

(a) There is hereby established a system for the review of statements of employment and financial interest submitted under § 500.735-31. This system of review is designed to disclose conflicts of interest or apparent conflicts of interest on the part of employees.

(b) The Counselor or Deputy Counselor shall review each such statement. Whenever it appears to the Counselor that a statement contains evidence of a conflict of interest he shall notify the person signing that statement and shall discuss with him the information which gives rise to the apparent or real conflict and offer him an opportunity to explain the conflict or appearance of conflict. If the conflict or appearance of conflict is not resolved after this discussion the information concerning the conflict or appearance of conflict shall be reported to the Chairman of the Commission by the Counselor.

§ 500.735-5 Disciplinary and other remedial action.

(a) A violation of the regulations in this part by an employee may be cause for an appropriate disciplinary action.

(b) After consideration of the explanation of the employee as provided in § 500.735-4 and the Chairman decides that remedial action is required, he shall take immediate action to end the con

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 confidence of the public in the integrity of the Government.

§ 500.735-11 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, entertainment, loan, or any other thing of monetary value, from a person who:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with the Commission;

(2) Conducts operations or activities that are regulated by the Commission; or

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty.

(b) Exceptions to paragraph (a) of this section are as follows:

(1) This section shall not be construed to proscribe conduct involving obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships rather

than the business of the persons concerned which are the motivating factors;

(2) Under this section, Commission employees are permitted to 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 an employee may properly be in attendance;

(3) Under this section employees are permitted to accept loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans;

(4) Under this section employees shall be permitted to accept unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars and other items of nominal intrinsic value; and

(5) Under this section, Commission employees may participate in keel layings, christenings, and ship launchings and accept meals, accommodations, and entertainment related thereto when the invitation to such an event is addressed to the Commission and the Chairman of the Commission approves the acceptance of the invitation.

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

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

(e) Neither this section nor § 500.73512 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel

on official business under agency orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

§ 500.735-12 Outside employment and other activity.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. 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.

(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). This paragraph does not apply to special Government employees.

(c) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, or the regulations in this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, and writing including 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 Commission or Board of Examiners for the Foreign Service, that is dependent on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the Chairman gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. In addition, an employee who is a Presidential appointee covered by section 401(a) of the Executive order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of the Commission, or which